Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 28, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Title of 12(b) Security | Common Stock, $.001 par value | |
Trading Symbol | ATRC | |
Security Exchange Name | NASDAQ | |
Entity Registrant Name | AtriCure, Inc. | |
Entity Central Index Key | 0001323885 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 000-51470 | |
Entity Address, Address Line One | 7555 Innovation Way | |
Entity Address, City or Town | Mason | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 45040 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 34-1940305 | |
City Area Code | 513 | |
Local Phone Number | 755-4100 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Filer Category | Large Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding | 39,550,453 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 33,182 | $ 32,231 |
Short-term investments | 46,557 | 92,171 |
Accounts receivable, less allowance for doubtful accounts of $1,122 and $547 | 26,798 | 25,195 |
Inventories | 27,789 | 22,484 |
Prepaid and other current assets | 3,527 | 2,592 |
Total current assets | 137,853 | 174,673 |
Property and equipment, net | 30,788 | 27,080 |
Operating lease right-of-use assets | 4,313 | |
Long-term investments | 20,354 | |
Intangible assets, net | 130,370 | 49,254 |
Goodwill | 236,316 | 105,257 |
Other noncurrent assets | 762 | 495 |
Total Assets | 560,756 | 356,759 |
Current liabilities: | ||
Accounts payable | 13,966 | 9,659 |
Accrued liabilities | 28,158 | 25,840 |
Other current liabilities and current maturities of leases and long-term debt | 2,158 | 4,717 |
Total current liabilities | 44,282 | 40,216 |
Finance lease liabilities | 11,662 | 12,172 |
Long-term debt | 59,517 | 35,571 |
Operating lease liabilities | 3,076 | |
Other noncurrent liabilities | 183,998 | 19,419 |
Total Liabilities | 302,535 | 107,378 |
Commitments and contingencies (Note 9) | ||
Stockholders' Equity: | ||
Common stock, $0.001 par value, 90,000 shares authorized and 39,547 and 38,604 issued and outstanding | 40 | 39 |
Additional paid-in capital | 524,658 | 496,544 |
Accumulated other comprehensive loss | (376) | (199) |
Accumulated deficit | (266,101) | (247,003) |
Total Stockholders' Equity | 258,221 | 249,381 |
Total Liabilities and Stockholders' Equity | $ 560,756 | $ 356,759 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Condensed Consolidated Balance Sheets [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 1,122 | $ 547 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 90,000,000 | 90,000,000 |
Common stock, shares issued | 39,547,000 | 38,604,000 |
Common stock, shares outstanding | 39,547,000 | 38,604,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Condensed Consolidated Statements of Operations and Comprehensive Loss [Abstract] | ||||
Revenue | $ 56,614 | $ 49,941 | $ 169,486 | $ 148,737 |
Cost of revenue | 14,817 | 13,993 | 43,925 | 40,207 |
Gross profit | 41,797 | 35,948 | 125,561 | 108,530 |
Operating expenses: | ||||
Research and development expenses | 10,154 | 8,556 | 28,134 | 26,268 |
Selling, general and administrative expenses | 40,280 | 33,440 | 115,223 | 96,782 |
Total operating expenses | 50,434 | 41,996 | 143,357 | 123,050 |
Loss from operations | (8,637) | (6,048) | (17,796) | (14,520) |
Other income (expense): | ||||
Interest expense | (1,113) | (1,246) | (2,854) | (3,287) |
Interest income | 577 | 151 | 1,933 | 350 |
Other | (114) | (41) | (230) | (103) |
Loss before income tax expense | (9,287) | (7,184) | (18,947) | (17,560) |
Income tax expense | 75 | 51 | 151 | 147 |
Net loss | $ (9,362) | $ (7,235) | $ (19,098) | $ (17,707) |
Basic and diluted net loss per share | $ (0.25) | $ (0.22) | $ (0.51) | $ (0.53) |
Weighted average shares outstanding — basic and diluted | 37,842 | 33,601 | 37,387 | 33,280 |
Comprehensive loss: | ||||
Unrealized gain (loss) on investments | $ 33 | $ 8 | $ 116 | $ 1 |
Foreign currency translation adjustment | (255) | (46) | (293) | (171) |
Other comprehensive loss | (222) | (38) | (177) | (170) |
Net loss | (9,362) | (7,235) | (19,098) | (17,707) |
Comprehensive loss, net of tax | $ (9,584) | $ (7,273) | $ (19,275) | $ (17,877) |
Condensed Consolidated Statem_2
Condensed 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, 2017 | $ 35 | $ 386,963 | $ (225,866) | $ 34 | $ 161,166 |
Beginning Balance, Shares at Dec. 31, 2017 | 34,586 | ||||
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 | 1,138 | 1,139 | ||
Issuance of common stock under equity incentive plans, Shares | 746 | ||||
Share-based employee compensation expense | 11,666 | 11,666 | |||
Other comprehensive income (loss) | (170) | (170) | |||
Net loss | (17,707) | (17,707) | |||
Ending Balance at Sep. 30, 2018 | $ 36 | 407,442 | (243,573) | (136) | 163,769 |
Ending Balance, Shares at Sep. 30, 2018 | 35,653 | ||||
Beginning Balance at Jun. 30, 2018 | $ 35 | 396,088 | (236,338) | (98) | 159,687 |
Beginning Balance, Shares at Jun. 30, 2018 | 35,313 | ||||
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 | 833 | 834 | ||
Issuance of common stock under equity incentive plans, Shares | 108 | ||||
Share-based employee compensation expense | 4,242 | 4,242 | |||
Other comprehensive income (loss) | (38) | (38) | |||
Net loss | (7,235) | (7,235) | |||
Ending Balance at Sep. 30, 2018 | $ 36 | 407,442 | (243,573) | (136) | 163,769 |
Ending Balance, Shares at Sep. 30, 2018 | 35,653 | ||||
Beginning Balance at Dec. 31, 2018 | $ 39 | 496,544 | (247,003) | (199) | 249,381 |
Beginning Balance, Shares at Dec. 31, 2018 | 38,604 | ||||
Issuance of common stock for SentreHEART acquisition | $ 1 | 21,991 | 21,992 | ||
Issuance of common stock for SentreHEART acquisition, Shares | 699 | ||||
Issuance of common stock under equity incentive plans | (8,242) | (8,242) | |||
Issuance of common stock under equity incentive plans, Shares | 183 | ||||
Share-based employee compensation expense | 12,816 | 12,816 | |||
Other comprehensive income (loss) | (177) | (177) | |||
Net loss | (19,098) | (19,098) | |||
Ending Balance at Sep. 30, 2019 | $ 40 | 524,658 | (266,101) | (376) | 258,221 |
Ending Balance, Shares at Sep. 30, 2019 | 39,547 | ||||
Beginning Balance at Jun. 30, 2019 | $ 39 | 498,402 | (256,739) | (154) | 241,548 |
Beginning Balance, Shares at Jun. 30, 2019 | 38,766 | ||||
Issuance of common stock for SentreHEART acquisition | $ 1 | 21,991 | 21,992 | ||
Issuance of common stock for SentreHEART acquisition, Shares | 699 | ||||
Issuance of common stock under equity incentive plans | (22) | (22) | |||
Issuance of common stock under equity incentive plans, Shares | 82 | ||||
Share-based employee compensation expense | 4,287 | 4,287 | |||
Other comprehensive income (loss) | (222) | (222) | |||
Net loss | (9,362) | (9,362) | |||
Ending Balance at Sep. 30, 2019 | $ 40 | $ 524,658 | $ (266,101) | $ (376) | $ 258,221 |
Ending Balance, Shares at Sep. 30, 2019 | 39,547 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (19,098) | $ (17,707) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Share-based compensation expense | 12,816 | 11,666 |
Depreciation | 5,529 | 5,505 |
Amortization of intangible assets | 1,454 | 1,026 |
Amortization of deferred financing costs | 233 | 341 |
Non-cash lease expense | 466 | |
Loss on disposal of property and equipment | 433 | 106 |
Realized loss from foreign exchange on intercompany transactions | 227 | 94 |
Accretion of investments | (882) | (121) |
Provision for doubtful accounts | 580 | 419 |
Change in value of contingent consideration | (6,934) | (6,696) |
Payment of nContact contingent consideration in excess of purchase accounting amount | (96) | |
Changes in operating assets and liabilities, net of amounts acquired: | ||
Accounts receivable | (2,045) | (727) |
Inventories | (3,643) | 110 |
Other current assets | (934) | (425) |
Accounts payable | 702 | (1,492) |
Accrued liabilities | (500) | 2,754 |
Other noncurrent assets and liabilities | (686) | 87 |
Net cash used in operating activities | (12,282) | (5,156) |
Cash flows from investing activities: | ||
Purchases of available-for-sale securities | (66,726) | (29,995) |
Sales and maturities of available-for-sale securities | 92,985 | 20,539 |
Purchases of property and equipment | (7,825) | (5,128) |
Proceeds from sale of property and equipment | 28 | 6 |
Cash paid for SentreHEART business combination, net of cash acquired | (18,008) | |
Net cash provided by (used in) investing activities | 454 | (14,578) |
Cash flows from financing activities: | ||
Proceeds from debt borrowings | 20,000 | 17,381 |
Payments on debt and finance leases | (459) | (1,608) |
Payments of debt fees | (329) | (1,136) |
Proceeds from stock option exercises and employee stock purchase plan | 2,283 | 6,957 |
Shares repurchased for payment of taxes on stock awards | (8,976) | (4,422) |
Payments of nContact contingent consideration amounts established in purchase accounting | (1,125) | |
Proceeds from economic incentive loan | 500 | |
Net cash provided by financing activities | 13,019 | 16,047 |
Effect of exchange rate changes on cash and cash equivalents | (240) | (123) |
Net increase (decrease) in cash and cash equivalents | 951 | (3,810) |
Cash and cash equivalents-beginning of period | 32,231 | 21,809 |
Cash and cash equivalents-end of period | 33,182 | 17,999 |
Supplemental cash flow information: | ||
Cash paid for interest | 2,639 | 2,743 |
Cash paid for income taxes | 227 | 45 |
Non-cash investing and financing activities: | ||
Accrued purchases of property and equipment | 2,190 | 335 |
Assets obtained in exchange for finance lease obligations | 24 | |
Share-settled portion of contingent consideration | 6,279 | |
Finance lease early termination | $ (6) | |
Stock issuance in business combinations | 21,992 | |
Contingent consideration in business combinations | 171,300 | |
Working capital adjustment receivable from business combination | $ 754 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Description of Business and Summary of Significant Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | 1. DESC RIPTION 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. All intercompany accounts and transactions have been eliminated in consolidation. 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. Basis of Presentation —The accompanying interim financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (SEC). The accompanying interim financial statements are unaudited, but in the opinion of the Company’s management, contain all normal, recurring adjustments considered necessary to present fairly the financial position, results of operations and cash flows for the periods presented in conformity with accounting principles generally accepted in the United States of America (GAAP) applicable to interim periods. Certain information and footnote disclosures included in annual financial statements prepared in accordance with GAAP have been omitted or condensed. The Company believes the disclosures herein are adequate to make the information presented not misleading. Results of operations are not necessarily indicative of the results expected for the full year or for any future period. The accompanying Condensed Consolidated Financial Statements should be read in conjunction with the audited financial statements of the Company included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 filed with the SEC. Cash and Cash Equivalents —The Company considers highly liquid investments with maturities of three months or less at the date of purchase as cash equivalents. Cash equivalents include demand deposits, money market funds and repurchase agreements on deposit with certain financial institutions. Investments —The Company invests 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. Gains and losses are recognized using the specific identification method when securities are sold and are included in interest income. 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 10 for further discussion on revenue. Sales Returns and Allowances —The Company maintains a provision for potential returns of defective or damaged products, products shipped in error and invoice adjustments. The Company adjusts the provision using the expected value method based on historical experience. Increases to the provision reduce revenue, and the provision is included in accrued liabilities. Allowance for Doubtful Accounts —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 expenses. 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 product approvals, variability in product launch strategies and variation in product use all impact inventory reserves for excess, obsolete and expired products. 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. Inventories consist of the following: September 30, December 31, 2019 2018 Raw materials $ 10,643 $ 9,100 Work in process 2,223 1,232 Finished goods 14,923 12,152 Inventories $ 27,789 $ 22,484 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. The estimated useful life by major asset category is the following: Estimated Useful Life Generators and related equipment 1 - 3 years Building under finance lease 15 years Computers, software and office equipment 3 years Machinery and equipment 3 - 7 years Furniture and fixtures 3 - 7 years Leasehold improvements 5 - 15 years Equipment under finance leases 3 - 5 years The Company assesses the useful lives of property and equipment at least annually and retires assets once they are no longer in service. Maintenance and repair costs are expensed as incurred. The Company reviews property and equipment for impairment at least annually using its best estimates based on reasonable and supportable assumptions and expected future cash flows. Property and equipment impairments recorded by the Company have not been significant. The Company’s radiofrequency (RF) and cryo generators are generally placed with customers that purchase the Company’s disposable products. The estimated useful lives of generators are based on anticipated usage by customers and may change in future periods with changes in usage or introduction of new technologies. Depreciation related to generators and related equipment, which is recorded in cost of revenue, is $ 744 and $ 783 in the three months ended September 30, 2019 and 2018 and $ 2,228 and $ 2,424 in the nine months ended September 30, 2019 and 2018. As of September 30, 2019 and December 31, 2018, the net carrying value of generators and related equipment included in net property and equipment was $ 4,561 and $ 4,545 . Leases —As of January 1, 2019, the Company determines if an arrangement is a lease at inception. The Company applies the short-term lease recognition exemption and recognizes lease payments in profit or loss for facility leases that have a lease term of 12 months or less at commencement and do not include a purchase option whose exercise is reasonably certain. Operating leases are included in operating lease right-of-use (ROU) assets, operating lease liabilities and other current liabilities and current maturities of leases and long-term debt. Finance leases are included in property and equipment, other current liabilities and current maturities of leases and long-term debt, and finance lease liabilities. ROU assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are measured and recorded at the later of the application date and commencement date based on the present value of lease payments over the lease term. The Company uses the implicit rate when readily determinable; however, most of the leases do not provide an implicit rate and therefore, the Company uses its incremental borrowing rate based on information available at measurement. The operating ROU asset also includes any lease payments made and excludes lease incentives. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. For real estate and equipment leases, the Company accounts for the lease and non-lease components as a single lease component. Additionally, the portfolio approach is applied to effectively account for the operating lease ROU assets and liabilities based on the term of the underlying lease. Lease expense for lease payments is recognized on a straight-line basis over the lease term. See Note 8 for further discussion of leases. Intangible Assets —Intangible assets with determinable useful lives are amortized on a straight-line basis over the estimated periods benefited. Intangible assets include In Process Research and Development (IPR&D), which represents the value of technology acquired in business combinations that has not yet reached technological feasibility. The primary basis for determining 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 projects. Upon completion of the development projects, IPR&D will be amortized over the estimated useful lives. If an IPR&D project is abandoned, the related IPR&D intangible asset would be written off. IPR&D represents estimates of the fair value of the pre-market approval (PMA) that could result from the CONVERGE IDE and aMAZE TM IDE clinical trials. The Company reviews intangible assets at least annually for impairment using its best estimates based on reasonable and supportable assumptions and projections. The Company performs impairment testing annually on October 1. 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 performs impairment testing annually on October 1. Other Noncurrent Liabilities— Other noncurrent liabilities primarily consist of acquisition-related contingent consideration. The balance is included in noncurrent liabilities as such settlement is both required and expected to be made in shares of the Company’s common stock pursuant to the nContact Surgical, Inc. (nContact) merger agreement and SentreHEART, Inc. (SentreHEART) merger agreement. Other Income (Expense) — Other income (expense) consists primarily of foreign currency transaction gains and losses generated by settlements of intercompany balances denominated in Euros and customer invoices transacted 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 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 significant estimates and judgments about 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 the deferred income tax asset will not be realized. Significant weight is given to evidence that can be objectively verified. The Company evaluates deferred income tax assets on an annual basis to determine if valuation allowances are required. 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, and tax planning strategies that are both prudent and feasible. In evaluating the need for a valuation allowance, 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. The Tax Cut and Jobs Act (Tax Reform Act) allows companies an election to reclassify the income tax effects of the Tax Reform Act on items within accumulated other comprehensive income (loss) to retained earnings. The Company has not made this election due to its full valuation allowance. Net Loss Per Share —Basic and diluted net loss per share is computed 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 anti-dilutive effect of 3,613 and 3,945 stock options, restricted stock shares, restricted stock units and performance award shares as of September 30, 2019 and 2018. Therefore, the number of shares calculated for basic net loss per share is also used for the diluted net loss per share calculation. Comprehensive Loss and Accumulated Other Comprehensive Income (Loss) —In addition to net losses, the comprehensive loss includes foreign currency translation adjustments and unrealized gains or losses on investments. Accumulated other comprehensive loss consisted of the following (net of tax): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Total accumulated other comprehensive (loss) income at beginning of period $ ( 154 ) $ ( 98 ) $ ( 199 ) $ 34 Unrealized Gains (Losses) on Investments Balance at beginning of period $ 46 $ ( 13 ) $ ( 37 ) $ ( 6 ) Other comprehensive income before reclassifications 33 8 116 1 Amounts reclassified from accumulated other comprehensive (loss) income to other income (expense) — — — — Balance at end of period $ 79 $ ( 5 ) $ 79 $ ( 5 ) Foreign Currency Translation Adjustment Balance at beginning of period $ ( 200 ) $ ( 85 ) $ ( 162 ) $ 40 Other comprehensive (loss) income before reclassifications ( 380 ) ( 84 ) ( 520 ) ( 265 ) Amounts reclassified from accumulated other comprehensive (loss) income to other income (expense) 125 38 227 94 Balance at end of period $ ( 455 ) $ ( 131 ) $ ( 455 ) $ ( 131 ) Total accumulated other comprehensive loss at end of period $ ( 376 ) $ ( 136 ) $ ( 376 ) $ ( 136 ) 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 and regulatory affairs. Advertising Costs — The Company expenses advertising costs as incurred. Advertising costs were not significant during the three and nine months ended September 30, 2019 and 2018. Share-Based Compensation —The Company records share-based compensation based on estimated fair values for all employee share-based payment awards, including stock options, restricted stock awards, restricted stock units, performance shares and stock purchases related to an employee stock purchase plan. The value of the portion of an award that is ultimately expected to vest, net of estimated forfeitures, is recognized as expense over the service period. The Company estimates forfeitures at the time of grant and adjusts them in subsequent periods as actual forfeitures differ from those estimates. The Company recognized share-based compensation expense of $ 4,287 and $ 4,242 for the three months ended September 30, 2019 and 2018 and $ 12,816 and $ 11,666 for the nine months ended September 30, 2019 and 2018. 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). Fair value is affected by the Company’s stock price, as well as 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 Company estimates the fair value of restricted stock awards and restricted stock units based upon the grant date closing market price of the Company’s common stock. The Company estimates the fair value of the performance share awards based on the grant date closing market price of the Company’s common stock and will adjust compensation expense over the performance period based on its estimate of performance target achievement. 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. At the beginning of each purchase period, the Company estimates the number of shares to be purchased under the ESPP based upon the fair value of the stock at the beginning of the purchase period using the Black-Scholes model. Estimated compensation expense is recorded during the purchase period and is adjusted to actual at the time of share purchase. Use of Estimates —The preparation of the financial statements in conformity with 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. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2019 | |
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 legacy lease guidance of ASC 840 “Leases”. The Company adopted the new guidance on January 1, 2019 using the transition method provided by ASU 2018-11, “Leases (Topic 842): Targeted Improvements”. Under this method, the Company applied the new requirements to those leases that existed as of January 1, 2019, rather than at the earliest comparative period presented in the financial statements. Prior periods are presented under legacy ASC 840 lease guidance. Upon transition, the Company applied the package of practical expedients permitted under ASC 842 transition guidance. As a result, the Company was 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 applied the short-term lease recognition exemption and recognizes lease payments in profit or loss for leases that have a lease term of 12 months or less at commencement and do not include a renewal option whose exercise is reasonably certain. There was no cumulative effect on beginning accumulated deficit as a result of adoption. See Note 8 for further details. 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 interim and annual reporting periods beginning in 2020, 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 in 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 provisions of 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 operations as that in which the fee associated with the hosting arrangement is presented. The provisions are effective for all entities for interim and annual reporting periods beginning in 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. |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value [Abstract] | |
Fair Value | 3. FAIR VALUE Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value 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. 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. 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. The Company classifies cash and investments in U.S. government agencies and securities, accounts receivable, short-term other assets, accounts payable and accrued liabilities as Level 1 within the fair value hierarchy. 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, repurchase agreements, 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. 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 September 30, 2019: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Total Assets: Money market funds $ — $ 3,300 $ — $ 3,300 Repurchase agreements — 10,000 — 10,000 Commercial paper — 16,677 — 16,677 U.S. government agencies and securities 9,029 — — 9,029 Corporate bonds — 24,874 — 24,874 Asset-backed securities — 16,331 — 16,331 Total assets $ 9,029 $ 71,182 $ — $ 80,211 Liabilities: Acquisition-related contingent consideration — — 183,139 183,139 Total liabilities $ — $ — $ 183,139 $ 183,139 There were no changes in the levels or methodology of measurement of financial assets and liabilities during the three and nine months ended September 30, 2019. 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 Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (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 Acquisition-Related Contingent Consideration. 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 of achievement of the agreed milestones, projected revenues from acquisitions 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. Subsequent revisions to key assumptions, which impact the estimated fair value of contingent consideration liabilities, are reflected in selling, general and administrative expenses. Acquisition-related contingent consideration is recorded in other noncurrent liabilities. The Company has contingent consideration arrangements arising from the nContact and SentreHEART acquisitions. Contingent consideration arrangements under the nContact merger agreement obligate the Company to pay certain defined amounts to former shareholders of nContact if specified milestones are met related to the CONVERGE IDE trial enrollment, regulatory approval and revenue targets. Contingent consideration arrangements under the SentreHEART merger agreement obligate the Company to pay certain defined amounts to former shareholders of SentreHEART if specified milestones are met related to the aMAZE IDE clinical trial, including PMA approval, and reimbursement for the therapy involving SentreHEART’s devices. In connection with the acquisition of SentreHEART on August 13, 2019, preliminary fair value of $ 171,300 was recorded for the SentreHEART contingent consideration. See Note 4 for more details regarding the SentreHEART acquisition-related contingent consideration. In September 2018 as a result of the achievement of the trial enrollment milestone in the CONVERGE IDE clinical trial, the Company made cash payments totaling approximately $ 1,221 and issued and delivered 232 shares of common stock to the former shareholders of nContact. The remaining contingent consideration liability is periodically remeasured. The Company recorded decreases in fair value of the nContact contingent consideration of $ 3,062 and $ 6,934 during the three and nine months ended September 30, 2019, and $ 780 and $ 6,696 for the three and nine months ended September 30, 2018. These decreases are primarily due to reductions in forecasted revenue for the 2019 and 2018 commercial milestones and updates to the forecasted timing of regulatory approval. The following table represents the Company’s Level 3 fair value measurements using significant other unobservable inputs for acquisition-related contingent consideration: Nine Months Ended Twelve Months Ended September 30, 2019 December 31, 2018 Beginning Balance $ 18,773 $ 37,098 Amounts acquired 171,300 — Settlement of trial enrollment milestone — ( 7,500 ) Changes in fair value included in earnings ( 6,934 ) ( 10,825 ) Ending Balance $ 183,139 $ 18,773 |
Business Combinations
Business Combinations | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Business Combinations | 4. BUSINESS COMBINATIONS On August 13, 2019, the Company acquired 100 % of the outstanding equity interests of SentreHEART. Founded in 2005 and based in Redwood City, California, SentreHEART developed innovative technology for remote delivery of suture for closure of anatomic structures including the left atrial appendage (LAA). This technology is currently being studied in the aMAZE IDE clinical trial, an FDA-approved, prospective, multicenter, randomized controlled trial. The objective of the aMAZE Trial is to demonstrate that the LARIAT ® device for LAA closure, plus a Pulmonary Vein Isolation (PVI) ablation, will lead to a reduced incidence of recurrent Afib compared to PVI alone. AtriCure’s management believes the acquisition of SentreHEART will expand the Company’s addressable markets with a product designed for electrophysiologists. The acquisition of SentreHEART deepens the Company’s commitment to provide the broadest possible offering of ablation and LAA management solutions to patients and customers. The total consideration paid to SentreHEART’s former shareholders at the acquisition date was $ 18,008 in cash and 699 shares of AtriCure common stock valued at approximately $ 21,992 . The cash paid at acquisition was subject to adjustment for net working capital balances outside of a specified range, resulting in an adjustment of $754 due to the Company. The merger agreement also provides for the Company to pay contingent consideration, as follows: PMA Milestone – up to $ 140,000 upon receiving PMA from FDA for the LARIAT system with an approved indication allowing commercial distribution in the United States for the closure of the LAA for treatment of atrial fibrillation. The full contingent consideration amount is only received if PMA approval is received on or before December 31, 2022 . The potential contingent consideration is reduced by 4.17 % (or one-twenty-fourth) each month following December 2022 and is reduced to zero if the milestone is achieved after December 31, 2023 . Payment of $ 25,000 of the PMA milestone may be accelerated upon achievement of an Interim Success Milestone as defined by the merger agreement. CPT Reimbursement Milestone – up to $ 120,000 upon approval of a Medicare Category 1 Current Procedural Terminology (CPT) Code by the American Medical Association. The full contingent consideration amount is only received if approval of the CPT Code is received on or before December 31, 2025 . The potential contingent consideration is reduced by 4.17 % (or one-twenty-fourth) each month following December 2025 and is reduced to zero if the milestone is achieved after December 31, 2026 . Subject to the terms and conditions of the merger agreement, all contingent consideration would be paid in cash and stock at the discretion of the Company, with the maximum number of shares that may be issued after closing limited to 7,021 . The maximum contingent consideration payable by AtriCure will not exceed $ 260 million. The Company accounted for the acquisition in accordance with ASC 805, “Accounting for Business Combinations”. The assets acquired, liabilities assumed and the estimated future contingent consideration obligation are recorded at their respective fair values as of the date of acquisition. The process of estimating fair values of identifiable assets, certain intangible assets and assumed liabilities requires significant assumptions and estimates. The judgments used to determine the estimated fair value assigned to each class of assets acquired and liabilities assumed, as well as asset lives, can materially impact the amounts recorded and the Company’s results of operations. The components of the aggregate purchase price for the SentreHEART acquisition, including working capital adjustments of $754, are as follows: Fair value of AtriCure common stock issued at closing $ 21,992 Cash 17,254 Preliminary fair value of contingent consideration liabilities 171,300 Total purchase price $ 210,546 The fair value of the contingent consideration liabilities was determined by applying an income valuation approach, including the probability-weighted scenario method. Key assumptions in the valuation of the contingent consideration liabilities are based on management’s judgment and estimates and include the probability of achievement of each of the milestones, timing of achievement and discount rates, reflecting the inherent risks of achieving the respective milestones. Some assumptions are not observable in the market, and thus represent a Level 3 measurement within the fair value hierarchy. As of September 30, 2019, the purchase price allocation has not yet been finalized as the Company evaluates certain tax attributes of SentreHEART and finalizes purchase valuations. The following table summarizes the preliminary estimated fair values of the assets acquired and the liabilities assumed on the acquisition date: August 13, 2019 Inventories $ 1,848 Current assets 328 Operating lease right-of-use asset 2,929 Property and equipment 94 Intangible assets 82,570 Other assets 202 Total identifiable assets $ 87,971 Current liabilities $ 5,555 Operating lease liability 2,929 Total liabilities assumed $ 8,484 Net identifiable assets acquired $ 79,487 Goodwill 131,059 Total consideration $ 210,546 The above preliminary estimated fair values of assets acquired and liabilities assumed are based on the information that was available as of the acquisition date. The valuation of the intangible assets acquired and related amortization periods are as follows: Amortization Term Valuation (in years) Developed technology $ 270 15 IPR&D 82,300 Total $ 82,570 The fair value of the LARIAT developed technology was estimated using the relief-from-royalty method, an income approach. The LARIAT developed technology asset is amortized on a straight-line basis over its estimated useful life. The IPR&D asset was estimated using the excess earnings method, also an income approach. The IPR&D asset represents an estimate of the fair value of the PMA approval from the in-process aMAZE IDE clinical trial and is accounted for as an indefinite-lived intangible asset until completion or abandonment of the project. The Company recorded the excess of the aggregate purchase price over the estimated fair values of the identifiable net assets acquired as goodwill. Goodwill is primarily attributable to the benefits the Company expects to realize by enhancing its product offering and addressable markets, thereby contributing to an expanded revenue base. As discussed in Note 1, the Company accounts for goodwill in a single reporting unit representing the Company as a whole. The operating results of SentreHEART, including $ 362 of appendage management revenue and $ 2,733 of net loss, are included in the Condensed Consolidated Statements of Operations and Comprehensive Loss beginning August 14, 2019. The Condensed Consolidated Balance Sheet as of September 30, 2019 reflects the acquisition of SentreHEART. The Company recognized approximately $ 2,819 and $ 3,645 of acquisition-related costs in the three and nine months ended September 30, 2019. The costs consisted of legal, audit, tax and other costs and are included in selling, general and administrative expenses. The following supplemental pro forma information presents the financial results of the Company for the nine months ended September 30, 2019 and 2018 as if the acquisition of SentreHEART had occurred on January 1, 2018. Nine Months Ended Nine Months Ended September 30, 2019 September 30, 2018 Revenue $ 171,447 $ 151,925 Net loss ( 27,107 ) ( 32,241 ) Basic and diluted net loss per share $ ( 0.72 ) $ ( 0.95 ) Certain pro forma adjustments have been made when calculating the amounts above to reflect the impact of the purchase transaction, primarily consisting of the exclusion of SentreHEART’s interest expense incurred on debt paid off or converted to equity in the acquisition, exclusion of fair value adjustments for SentreHEART’s derivative liabilities and preferred warrants settled as part of the acquisition and adjustments for amortization of intangible assets with determinable lives. The Company also eliminated transaction expenses incurred by both AtriCure and SentreHEART. The supplemental pro forma information has been prepared for comparative purposes and does not purport to be indicative of what would have occurred had the acquisition been made on January 1, 2018, nor are they indicative of any future results. The pro forma information does not include any adjustments for potential revenue enhancements, cost synergies or other operating efficiencies that could result from the acquisition. |
Intangible Assets And Goodwill
Intangible Assets And Goodwill | 9 Months Ended |
Sep. 30, 2019 | |
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: September 30, 2019 December 31, 2018 Estimated Useful Life Cost Accumulated Amortization Cost Accumulated Amortization Technology 3 - 15 years $ 11,691 $ 7,642 $ 12,250 $ 7,017 IPR&D 126,321 — 44,021 — Total $ 138,012 $ 7,642 $ 56,271 $ 7,017 Amortization expense of intangible assets with definite lives, which excludes IPR&D, is $ 486 and $ 342 for the three months ended September 30, 2019 and 2018 and $ 1,454 and $ 1,026 for the nine months ended September 30, 2019 and 2018. Future amortization expense is projected as follows: 2019 (excluding the nine months ended September 30, 2019) $ 489 2020 1,822 2021 1,511 2022 18 2023 18 2024 and thereafter 191 Total $ 4,049 The following table provides a summary of the Company’s goodwill, which is not amortized, but rather tested annually for impairment: Nine Months Ended Twelve Months Ended September 30, 2019 December 31, 2018 Beginning Balance $ 105,257 $ 105,257 Amounts acquired 131,059 — Ending Balance $ 236,316 $ 105,257 |
Accrued Liabilities
Accrued Liabilities | 9 Months Ended |
Sep. 30, 2019 | |
Accrued Liabilities [Abstract] | |
Accrued Liabilities | 6. ACCRUED LIABILITIES Accrued liabilities consist of the following: September 30, December 31, 2019 2018 Accrued payroll and employee-related expenses $ 6,149 $ 4,512 Accrued commissions 7,531 8,065 Accrued bonus 7,956 9,100 Sales returns and allowances 3,710 1,410 Accrued royalties 676 662 Accrued taxes and value-added taxes payable 1,117 886 Other accrued liabilities 1,019 1,205 Total $ 28,158 $ 25,840 |
Indebtedness
Indebtedness | 9 Months Ended |
Sep. 30, 2019 | |
Indebtedness [Abstract] | |
Indebtedness | 7. INDEBTEDNESS Credit Facility. The Company has a Loan and Security Agreement (Loan Agreement) with Silicon Valley Bank (SVB). The Loan Agreement (effective February 23, 2018 and modified December 28, 2018) was further amended on August 12, 2019 and September 27, 2019 and includes a $ 60,000 term loan and a $ 20,000 revolving line of credit. The total debt outstanding under the Loan Agreement cannot exceed $ 70,000 at any time prior to SVB’s consent. The term loan and revolving credit facility both mature or expire, as applicable, on August 1, 2024 . Principal payments of the term loan are to be made ratably commencing March 1, 2021 through the loan’s maturity date. If the Company meets certain conditions, as specified in the Loan Agreement, the commencement of the term loan principal payments may be deferred by an additional six months . The term loan accrues interest at the greater of the Prime Rate or 5.00 %, plus 0.75 % and is subject to an additional 3.00 % fee on the $ 60,000 term loan principal payable at maturity or upon acceleration or prepayment of the term loan. The Company is accruing the 3.00 % fee over the term of the Loan Agreement. As of September 30, 2019, the Company accrued $ 45 of this fee and included it in the outstanding loan balance. The refinancing is treated as a debt modification. Financing costs related to the term loan of $ 528 are netted against the outstanding loan balance and amortized ratably over the term of the Loan Agreement. The revolving line of credit is subject to an annual facility fee of 0.15 % of the revolving line of credit, and any borrowings thereunder bear interest at the greater of the Prime Rate or 5.00 %. 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. The borrowing availability is also limited to allow total debt outstanding under the Loan Agreement to not exceed $ 70,000 at any time prior to SVB’s consent. As of September 30, 2019, the Company had no borrowings under the revolving credit facility and had borrowing availability of $ 10,000 . Financing costs related to the revolving line of credit are included in other assets and amortized ratably over the twelve-month period of the annual fee. The Loan Agreement also provides for certain prepayment and early termination fees, 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. Future principal payments of long-term debt are projected as follows: 2019 (excluding the nine months ended September 30, 2019) $ — 2020 — 2021 15,714 2022 17,143 2023 17,143 2024 10,000 Total long-term debt, of which $ 0 is current and $ 60,000 is noncurrent $ 60,000 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | 8. LEASES The Company adopted the new lease guidance on January 1, 2019 using the transition method provided by ASU 2018-11, “Leases (Topic 842): Targeted Improvements”. Under this method, the Company has applied the new requirements to leases that existed as of January 1, 2019, rather than at the earliest comparative period presented in the financial statements. Prior periods are presented under legacy ASC 840 lease guidance. As a result of the adoption, the Company recorded operating right-of-use assets and operating lease liabilities of approximately $ 1,884 and $ 2,189 as of January 1, 2019. The difference between the initial operating right-of-use asset and operating lease liability of $ 305 is accrued rent previously recognized under ASC 840. The Company has operating and finance leases for corporate offices, warehouse facilities and computer equipment. The Company’s leases have remaining lease terms of one year to eleven years . Except for the operating lease acquired as part of the SentreHEART acquisition, options to renew or extend leases beyond their initial term have been excluded from measurement of the ROU assets and lease liabilities as exercise is not reasonably certain. The weighted average remaining lease term for operating leases and finance leases is 3.6 years and 11.0 years as of September 30, 2019. The weighted average discount rate used to measure the outstanding operating lease liabilities and finance lease liabilities is 5.9 % and 7.1 % as of September 30, 2019. 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 building lessor in October 2015. The letter of credit is renewed annually and remains outstanding as of September 30, 2019. The components of lease expense are as follows: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 Operating lease cost $ 285 $ 600 Finance lease cost: Amortization of right-of-use assets 247 747 Interest on lease liabilities 216 656 Total finance lease cost $ 463 $ 1,403 Short term lease expense is not significant during the three and nine months ended September 30, 2019. Supplemental cash flow information related to leases is as follows: Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 654 Operating cash flows from finance leases 656 Financing cash flows from finance leases 459 Right-of-use assets obtained in exchange for lease obligations: Operating Leases 1,884 Finance Leases — Operating lease right-of-use asset obtained in business combination 2,929 Supplemental balance sheet information related to leases is as follows: September 30, 2019 Operating Leases Operating lease right-of-use assets $ 4,313 Other current liabilities and current maturities of leases and long-term debt ( 1,483 ) Operating lease liabilities ( 3,076 ) Total operating lease liabilities $ ( 4,559 ) Finance Leases Property and equipment, at cost $ 14,462 Accumulated depreciation ( 3,945 ) Property and equipment, net $ 10,517 Other current liabilities and current maturities of leases and long-term debt $ ( 675 ) Finance lease liabilities ( 11,662 ) Total finance lease liabilities $ ( 12,337 ) Maturities of lease liabilities as of September 30, 2019 are as follows: Operating Leases Finance Leases 2019 (excluding the nine months ended September 30, 2019) $ 366 $ 379 2020 1,460 1,514 2021 1,337 1,519 2022 1,178 1,540 2023 708 1,562 2024 — 1,594 2025 and thereafter — 9,799 Total payments $ 5,049 $ 17,907 Less imputed interest ( 490 ) ( 5,570 ) Total $ 4,559 $ 12,337 Future minimum lease payments under noncancelable operating leases, including short-term operating leases, as of December 31, 2018 were projected as follows: 2019 $ 1,064 2020 893 2021 648 2022 405 Total $ 3,010 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 9. COMMITMENTS AND CONTINGENCIES 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 royalty agreements have effective dates as early as 2003 and terms ranging from eighteen years to at least twenty years , unless terminated earlier. Royalty expense of $ 693 and $ 661 is included in cost of revenue for the three months ended September 30, 2019 and 2018. Royalty expense of $ 2,142 and $ 2,028 is included in cost of revenue for the nine months ended September 30, 2019 and 2018. Purchase Agreements. The Company enters into standard purchase agreements with various suppliers in the ordinary course of business. Outstanding commitments at September 30, 2019 are not significant. The Company has committed to fund approximately $ 5,000 for the existing corporate headquarters expansion that is outside the ordinary course of business. The Company estimates the remaining costs of the construction project to be approximately $ 2,000 over the next twelve months. In connection with the headquarters expansion, the Company purchased land during the three months ended September 30, 2019 and entered into an economic incentive loan of $ 500 with the Mason Port Authority to reimburse the Company for a portion of the costs incurred for the expansion and provide other incentives. The loan may be forgiven pursuant to meeting various terms of the agreement. 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. 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. The Company acquired nContact Surgical, Inc. pursuant to a merger agreement dated October 4, 2015. The merger agreement provides for contingent consideration or “earnout” to be paid upon attaining specified regulatory approvals and clinical and revenue milestones. The merger agreement’s earnout provisions require the Company to deliver periodic earnout reports to a designated representative of former nContact stockholders. In response to the reports delivered in February 2018 and February 2019, the Company received letters from the representative on March 16, 2018 and March 11, 2019. The letters purport to serve as “earnout objection statements” (as that term is defined in the merger agreement) and claim that for purposes of determining the commercial milestone payment, the Company should be including revenues of certain products that the Company has not included in its earnout statements. The Company has corresponded with the representative regarding the earnout objection statement and disputes the basis of the representative’s claims. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2019 | |
Revenue [Abstract] | |
Revenue | 10. 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 or timing of revenue recognized in the condensed consolidated financial statements. Revenue is generated primarily from the sale of disposable 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 disposable medical 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 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. Products are sold primarily through a direct sales force and through distributors in select 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 for the 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 provisions for returns based on the expected value method considering 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 13 for disaggregated revenue by geographic area and by product category. |
Income Tax Provision
Income Tax Provision | 9 Months Ended |
Sep. 30, 2019 | |
Income Taxes [Abstract] | |
Income Tax Provision | 11. INCOME TAX PROVISION The Company files federal, state and foreign income tax returns in jurisdictions with varying statutes of limitations. The Company uses the asset and liability method to determine its provision for income taxes. The Company’s provision for income taxes in interim periods is computed by applying its estimated annual effective rate against its pre-tax results for the period. Non-recurring items are recorded during the period in which they occur. The effective tax rate for the three months ended September 30, 2019 and 2018 is ( 0.81 %) and ( 0.71 %). The effective tax rate for the nine months ended September 30, 2019 and 2018 is ( 0.80 %) and ( 0.84 %). The Company’s worldwide effective tax rate differs from the US statutory rate of 21 % primarily due to the Company’s valuation allowance in the United States and Netherlands. Federal, state and local returns of the Company are routinely subject to review by various taxing authorities. The Company has not accrued any interest and penalties related to unrecognized income tax benefits as a result of offsetting net operating losses. However, if the situation occurs, the Company will recognize interest and penalties within income tax expense and within the related tax liability. |
Equity Compensation Plans
Equity Compensation Plans | 9 Months Ended |
Sep. 30, 2019 | |
Equity Compensation Plans [Abstract] | |
Equity Compensation Plans | 12. 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 employees and may grant restricted stock and restricted stock units (collectively RSAs), nonstatutory stock options, performance share awards (PSAs) or stock appreciation rights to employees, directors and consultants. The administrator (currently 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 September 30, 2019, 11,999 shares of common stock had been reserved for issuance under the 2014 Plan, and 1,621 shares were available for future grants. During 2019 and 2018, the Compensation Committee approved the grant of performance share awards to the Company’s named executive officers and certain other employees pursuant to the 2014 Plan. The form of award agreement for the PSAs (PSA Grant Form) provides, among other things, that (i) each PSA that vests represents the right to receive one share of the Company’s common stock; (ii) the PSAs vest based on the Company achieving specified performance measurements over a performance period of three years ; (iii) the performance measurements include revenue CAGR as defined in the PSA Grant Form; (iv) threshold, target and maximum payout opportunities established for the 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 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 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 PSA Grant Form). With respect to the 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. The Company estimates the fair value of the 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 and RSAs granted generally vest at a rate of 33.3 % on the first, second and third anniversaries of the grant date. 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 year and four years from the date of grant. 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 ( 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 a value of 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 September 30, 2019, there were 534 shares available for future issuance under the ESPP. Expense Information Under FASB ASC 718 The following table summarizes the allocation of share-based compensation expense: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Cost of revenue $ 239 $ 765 $ 656 $ 1,240 Research and development expenses 601 426 1,692 1,378 Selling, general and administrative expenses 3,447 3,051 10,468 9,048 Total $ 4,287 $ 4,242 $ 12,816 $ 11,666 |
Segment and Geographic Informat
Segment and Geographic Information | 9 Months Ended |
Sep. 30, 2019 | |
Segment and Geographic Information [Abstract] | |
Segment and Geographic Information | 13. SEGMENT AND GEOGRAPHIC INFORMATION 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, based on the location of customers, is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 United States $ 46,123 $ 39,764 $ 136,292 $ 119,034 Europe 6,325 6,382 20,097 18,947 Asia 3,927 3,601 12,311 10,089 Other international 239 194 786 667 Total international 10,491 10,177 33,194 29,703 Total revenue $ 56,614 $ 49,941 $ 169,486 $ 148,737 United States revenue by product type is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Open ablation $ 19,754 $ 17,948 $ 59,311 $ 53,600 Minimally invasive ablation 9,006 7,877 25,860 25,604 Appendage management 16,907 13,487 49,075 38,385 Total ablation and appendage management 45,667 39,312 134,246 117,589 Valve tools 456 452 2,046 1,445 Total United States $ 46,123 $ 39,764 $ 136,292 $ 119,034 International revenue by product type is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Open ablation $ 5,850 $ 5,437 $ 18,942 $ 16,182 Minimally invasive ablation 2,058 2,355 6,122 6,807 Appendage management 2,532 2,318 7,963 6,540 Total ablation and appendage management 10,440 10,110 33,027 29,529 Valve tools 51 67 167 174 Total international $ 10,491 $ 10,177 $ 33,194 $ 29,703 The Company’s long-lived assets are located primarily in the United States, except for $ 1,347 as of September 30, 2019 and $ 1,296 as of December 31, 2018, which are located primarily in Europe. |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
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. All intercompany accounts and transactions have been eliminated in consolidation. 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. |
Basis of Presentation | Basis of Presentation —The accompanying interim financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (SEC). The accompanying interim financial statements are unaudited, but in the opinion of the Company’s management, contain all normal, recurring adjustments considered necessary to present fairly the financial position, results of operations and cash flows for the periods presented in conformity with accounting principles generally accepted in the United States of America (GAAP) applicable to interim periods. Certain information and footnote disclosures included in annual financial statements prepared in accordance with GAAP have been omitted or condensed. The Company believes the disclosures herein are adequate to make the information presented not misleading. Results of operations are not necessarily indicative of the results expected for the full year or for any future period. The accompanying Condensed Consolidated Financial Statements should be read in conjunction with the audited financial statements of the Company included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 filed with the SEC. |
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 purchase as cash equivalents. Cash equivalents include demand deposits, money market funds and repurchase agreements on deposit with certain financial institutions. |
Investments | Investments —The Company invests 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. Gains and losses are recognized using the specific identification method when securities are sold and are included in interest income. |
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 10 for further discussion on revenue. |
Sales Returns And Allowances | Sales Returns and Allowances —The Company maintains a provision for potential returns of defective or damaged products, products shipped in error and invoice adjustments. The Company adjusts the provision using the expected value method based on historical experience. Increases to the provision reduce revenue, and the provision is included in accrued liabilities. |
Allowance for Doubtful Accounts Receivable | Allowance for Doubtful Accounts —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 expenses. 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 product approvals, variability in product launch strategies and variation in product use all impact inventory reserves for excess, obsolete and expired products. 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. Inventories consist of the following: September 30, December 31, 2019 2018 Raw materials $ 10,643 $ 9,100 Work in process 2,223 1,232 Finished goods 14,923 12,152 Inventories $ 27,789 $ 22,484 |
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. The estimated useful life by major asset category is the following: Estimated Useful Life Generators and related equipment 1 - 3 years Building under finance lease 15 years Computers, software and office equipment 3 years Machinery and equipment 3 - 7 years Furniture and fixtures 3 - 7 years Leasehold improvements 5 - 15 years Equipment under finance leases 3 - 5 years The Company assesses the useful lives of property and equipment at least annually and retires assets once they are no longer in service. Maintenance and repair costs are expensed as incurred. The Company reviews property and equipment for impairment at least annually using its best estimates based on reasonable and supportable assumptions and expected future cash flows. Property and equipment impairments recorded by the Company have not been significant. The Company’s radiofrequency (RF) and cryo generators are generally placed with customers that purchase the Company’s disposable products. The estimated useful lives of generators are based on anticipated usage by customers and may change in future periods with changes in usage or introduction of new technologies. Depreciation related to generators and related equipment, which is recorded in cost of revenue, is $ 744 and $ 783 in the three months ended September 30, 2019 and 2018 and $ 2,228 and $ 2,424 in the nine months ended September 30, 2019 and 2018. As of September 30, 2019 and December 31, 2018, the net carrying value of generators and related equipment included in net property and equipment was $ 4,561 and $ 4,545 . |
Leases | Leases —As of January 1, 2019, the Company determines if an arrangement is a lease at inception. The Company applies the short-term lease recognition exemption and recognizes lease payments in profit or loss for facility leases that have a lease term of 12 months or less at commencement and do not include a purchase option whose exercise is reasonably certain. Operating leases are included in operating lease right-of-use (ROU) assets, operating lease liabilities and other current liabilities and current maturities of leases and long-term debt. Finance leases are included in property and equipment, other current liabilities and current maturities of leases and long-term debt, and finance lease liabilities. ROU assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are measured and recorded at the later of the application date and commencement date based on the present value of lease payments over the lease term. The Company uses the implicit rate when readily determinable; however, most of the leases do not provide an implicit rate and therefore, the Company uses its incremental borrowing rate based on information available at measurement. The operating ROU asset also includes any lease payments made and excludes lease incentives. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. For real estate and equipment leases, the Company accounts for the lease and non-lease components as a single lease component. Additionally, the portfolio approach is applied to effectively account for the operating lease ROU assets and liabilities based on the term of the underlying lease. Lease expense for lease payments is recognized on a straight-line basis over the lease term. See Note 8 for further discussion of leases. |
Intangible Assets | Intangible Assets —Intangible assets with determinable useful lives are amortized on a straight-line basis over the estimated periods benefited. Intangible assets include In Process Research and Development (IPR&D), which represents the value of technology acquired in business combinations that has not yet reached technological feasibility. The primary basis for determining 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 projects. Upon completion of the development projects, IPR&D will be amortized over the estimated useful lives. If an IPR&D project is abandoned, the related IPR&D intangible asset would be written off. IPR&D represents estimates of the fair value of the pre-market approval (PMA) that could result from the CONVERGE IDE and aMAZE TM IDE clinical trials. The Company reviews intangible assets at least annually for impairment using its best estimates based on reasonable and supportable assumptions and projections. The Company performs impairment testing annually on October 1. |
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 performs impairment testing annually on October 1. |
Other Noncurrent Liabilities | Other Noncurrent Liabilities— Other noncurrent liabilities primarily consist of acquisition-related contingent consideration. The balance is included in noncurrent liabilities as such settlement is both required and expected to be made in shares of the Company’s common stock pursuant to the nContact Surgical, Inc. (nContact) merger agreement and SentreHEART, Inc. (SentreHEART) merger agreement. |
Other Income (Expense) | Other Income (Expense) — Other income (expense) consists primarily of foreign currency transaction gains and losses generated by settlements of intercompany balances denominated in Euros and customer invoices transacted 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 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 significant estimates and judgments about 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 the deferred income tax asset will not be realized. Significant weight is given to evidence that can be objectively verified. The Company evaluates deferred income tax assets on an annual basis to determine if valuation allowances are required. 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, and tax planning strategies that are both prudent and feasible. In evaluating the need for a valuation allowance, 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. The Tax Cut and Jobs Act (Tax Reform Act) allows companies an election to reclassify the income tax effects of the Tax Reform Act on items within accumulated other comprehensive income (loss) to retained earnings. The Company has not made this election due to its full valuation allowance. |
Net Loss Per Share | Net Loss Per Share —Basic and diluted net loss per share is computed 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 anti-dilutive effect of 3,613 and 3,945 stock options, restricted stock shares, restricted stock units and performance award shares as of September 30, 2019 and 2018. Therefore, the number of shares calculated for basic net loss per share is also used for the diluted net loss per share calculation. |
Comprehensive Loss And Accumulated Other Comprehensive Income (Loss) | Comprehensive Loss and Accumulated Other Comprehensive Income (Loss) —In addition to net losses, the comprehensive loss includes foreign currency translation adjustments and unrealized gains or losses on investments. Accumulated other comprehensive loss consisted of the following (net of tax): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Total accumulated other comprehensive (loss) income at beginning of period $ ( 154 ) $ ( 98 ) $ ( 199 ) $ 34 Unrealized Gains (Losses) on Investments Balance at beginning of period $ 46 $ ( 13 ) $ ( 37 ) $ ( 6 ) Other comprehensive income before reclassifications 33 8 116 1 Amounts reclassified from accumulated other comprehensive (loss) income to other income (expense) — — — — Balance at end of period $ 79 $ ( 5 ) $ 79 $ ( 5 ) Foreign Currency Translation Adjustment Balance at beginning of period $ ( 200 ) $ ( 85 ) $ ( 162 ) $ 40 Other comprehensive (loss) income before reclassifications ( 380 ) ( 84 ) ( 520 ) ( 265 ) Amounts reclassified from accumulated other comprehensive (loss) income to other income (expense) 125 38 227 94 Balance at end of period $ ( 455 ) $ ( 131 ) $ ( 455 ) $ ( 131 ) Total accumulated other comprehensive loss at end of period $ ( 376 ) $ ( 136 ) $ ( 376 ) $ ( 136 ) |
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 and regulatory affairs. |
Advertising Costs | Advertising Costs — The Company expenses advertising costs as incurred. Advertising costs were not significant during the three and nine months ended September 30, 2019 and 2018. |
Share-Based Compensation | Share-Based Compensation —The Company records share-based compensation based on estimated fair values for all employee share-based payment awards, including stock options, restricted stock awards, restricted stock units, performance shares and stock purchases related to an employee stock purchase plan. The value of the portion of an award that is ultimately expected to vest, net of estimated forfeitures, is recognized as expense over the service period. The Company estimates forfeitures at the time of grant and adjusts them in subsequent periods as actual forfeitures differ from those estimates. The Company recognized share-based compensation expense of $ 4,287 and $ 4,242 for the three months ended September 30, 2019 and 2018 and $ 12,816 and $ 11,666 for the nine months ended September 30, 2019 and 2018. 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). Fair value is affected by the Company’s stock price, as well as 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 Company estimates the fair value of restricted stock awards and restricted stock units based upon the grant date closing market price of the Company’s common stock. The Company estimates the fair value of the performance share awards based on the grant date closing market price of the Company’s common stock and will adjust compensation expense over the performance period based on its estimate of performance target achievement. 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. At the beginning of each purchase period, the Company estimates the number of shares to be purchased under the ESPP based upon the fair value of the stock at the beginning of the purchase period using the Black-Scholes model. Estimated compensation expense is recorded during the purchase period and is adjusted to actual at the time of share purchase. |
Use of Estimates | Use of Estimates —The preparation of the financial statements in conformity with 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. |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Description of Business and Summary of Significant Accounting Policies [Abstract] | |
Summary Of Inventories | September 30, December 31, 2019 2018 Raw materials $ 10,643 $ 9,100 Work in process 2,223 1,232 Finished goods 14,923 12,152 Inventories $ 27,789 $ 22,484 |
Summary of Property and Equipment | Estimated Useful Life Generators and related equipment 1 - 3 years Building under finance lease 15 years Computers, software and office equipment 3 years Machinery and equipment 3 - 7 years Furniture and fixtures 3 - 7 years Leasehold improvements 5 - 15 years Equipment under finance leases 3 - 5 years |
Accumulated Other Comprehensive Income (Loss) | Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Total accumulated other comprehensive (loss) income at beginning of period $ ( 154 ) $ ( 98 ) $ ( 199 ) $ 34 Unrealized Gains (Losses) on Investments Balance at beginning of period $ 46 $ ( 13 ) $ ( 37 ) $ ( 6 ) Other comprehensive income before reclassifications 33 8 116 1 Amounts reclassified from accumulated other comprehensive (loss) income to other income (expense) — — — — Balance at end of period $ 79 $ ( 5 ) $ 79 $ ( 5 ) Foreign Currency Translation Adjustment Balance at beginning of period $ ( 200 ) $ ( 85 ) $ ( 162 ) $ 40 Other comprehensive (loss) income before reclassifications ( 380 ) ( 84 ) ( 520 ) ( 265 ) Amounts reclassified from accumulated other comprehensive (loss) income to other income (expense) 125 38 227 94 Balance at end of period $ ( 455 ) $ ( 131 ) $ ( 455 ) $ ( 131 ) Total accumulated other comprehensive loss at end of period $ ( 376 ) $ ( 136 ) $ ( 376 ) $ ( 136 ) |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Total Assets: Money market funds $ — $ 3,300 $ — $ 3,300 Repurchase agreements — 10,000 — 10,000 Commercial paper — 16,677 — 16,677 U.S. government agencies and securities 9,029 — — 9,029 Corporate bonds — 24,874 — 24,874 Asset-backed securities — 16,331 — 16,331 Total assets $ 9,029 $ 71,182 $ — $ 80,211 Liabilities: Acquisition-related contingent consideration — — 183,139 183,139 Total liabilities $ — $ — $ 183,139 $ 183,139 There were no changes in the levels or methodology of measurement of financial assets and liabilities during the three and nine months ended September 30, 2019. 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 Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (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 |
Level 3 Fair Value Measurements Using Significant Other Unobservable Inputs for Acquisition-Related Contingent Consideration | Nine Months Ended Twelve Months Ended September 30, 2019 December 31, 2018 Beginning Balance $ 18,773 $ 37,098 Amounts acquired 171,300 — Settlement of trial enrollment milestone — ( 7,500 ) Changes in fair value included in earnings ( 6,934 ) ( 10,825 ) Ending Balance $ 183,139 $ 18,773 |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Schedule of Components of Aggregate Purchase Price | Fair value of AtriCure common stock issued at closing $ 21,992 Cash 17,254 Preliminary fair value of contingent consideration liabilities 171,300 Total purchase price $ 210,546 |
Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed | August 13, 2019 Inventories $ 1,848 Current assets 328 Operating lease right-of-use asset 2,929 Property and equipment 94 Intangible assets 82,570 Other assets 202 Total identifiable assets $ 87,971 Current liabilities $ 5,555 Operating lease liability 2,929 Total liabilities assumed $ 8,484 Net identifiable assets acquired $ 79,487 Goodwill 131,059 Total consideration $ 210,546 |
Valuation of Intangible Assets Acquired and Related Amortization Periods | Amortization Term Valuation (in years) Developed technology $ 270 15 IPR&D 82,300 Total $ 82,570 |
Pro-forma Acquisition Information | Nine Months Ended Nine Months Ended September 30, 2019 September 30, 2018 Revenue $ 171,447 $ 151,925 Net loss ( 27,107 ) ( 32,241 ) Basic and diluted net loss per share $ ( 0.72 ) $ ( 0.95 ) |
Intangible Assets And Goodwill
Intangible Assets And Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Intangible Assets And Goodwill [Abstract] | |
Company's Intangible Assets | The following table provides a summary of the Company’s intangible assets: September 30, 2019 December 31, 2018 Estimated Useful Life Cost Accumulated Amortization Cost Accumulated Amortization Technology 3 - 15 years $ 11,691 $ 7,642 $ 12,250 $ 7,017 IPR&D 126,321 — 44,021 — Total $ 138,012 $ 7,642 $ 56,271 $ 7,017 |
Future Amortization Expense Related to Intangible Assets with Definite Lives | 2019 (excluding the nine months ended September 30, 2019) $ 489 2020 1,822 2021 1,511 2022 18 2023 18 2024 and thereafter 191 Total $ 4,049 |
Summary of Company's Goodwill | Nine Months Ended Twelve Months Ended September 30, 2019 December 31, 2018 Beginning Balance $ 105,257 $ 105,257 Amounts acquired 131,059 — Ending Balance $ 236,316 $ 105,257 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accrued Liabilities [Abstract] | |
Accrued Liabilities | Accrued liabilities consist of the following: September 30, December 31, 2019 2018 Accrued payroll and employee-related expenses $ 6,149 $ 4,512 Accrued commissions 7,531 8,065 Accrued bonus 7,956 9,100 Sales returns and allowances 3,710 1,410 Accrued royalties 676 662 Accrued taxes and value-added taxes payable 1,117 886 Other accrued liabilities 1,019 1,205 Total $ 28,158 $ 25,840 |
Indebtedness (Tables)
Indebtedness (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Indebtedness [Abstract] | |
Future Maturities On Debt | 2019 (excluding the nine months ended September 30, 2019) $ — 2020 — 2021 15,714 2022 17,143 2023 17,143 2024 10,000 Total long-term debt, of which $ 0 is current and $ 60,000 is noncurrent $ 60,000 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Summary Of Components Of Lease Expense | Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 Operating lease cost $ 285 $ 600 Finance lease cost: Amortization of right-of-use assets 247 747 Interest on lease liabilities 216 656 Total finance lease cost $ 463 $ 1,403 |
Summary Of Supplemental Cash Flow Information Related To Leases | Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 654 Operating cash flows from finance leases 656 Financing cash flows from finance leases 459 Right-of-use assets obtained in exchange for lease obligations: Operating Leases 1,884 Finance Leases — Operating lease right-of-use asset obtained in business combination 2,929 |
Summary Of Supplemental Balance Sheet Information Related To Leases | September 30, 2019 Operating Leases Operating lease right-of-use assets $ 4,313 Other current liabilities and current maturities of leases and long-term debt ( 1,483 ) Operating lease liabilities ( 3,076 ) Total operating lease liabilities $ ( 4,559 ) Finance Leases Property and equipment, at cost $ 14,462 Accumulated depreciation ( 3,945 ) Property and equipment, net $ 10,517 Other current liabilities and current maturities of leases and long-term debt $ ( 675 ) Finance lease liabilities ( 11,662 ) Total finance lease liabilities $ ( 12,337 ) |
Schedule Of Maturities Of Lease Liabilities | Operating Leases Finance Leases 2019 (excluding the nine months ended September 30, 2019) $ 366 $ 379 2020 1,460 1,514 2021 1,337 1,519 2022 1,178 1,540 2023 708 1,562 2024 — 1,594 2025 and thereafter — 9,799 Total payments $ 5,049 $ 17,907 Less imputed interest ( 490 ) ( 5,570 ) Total $ 4,559 $ 12,337 |
Schedule Of Future Minimum Lease Payments Under Non-cancelable Operating Leases | 2019 $ 1,064 2020 893 2021 648 2022 405 Total $ 3,010 |
Equity Compensation Plans (Tabl
Equity Compensation Plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity Compensation Plans [Abstract] | |
Share-Based Compensation Expense Related to Employee Share-Based Compensation | Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Cost of revenue $ 239 $ 765 $ 656 $ 1,240 Research and development expenses 601 426 1,692 1,378 Selling, general and administrative expenses 3,447 3,051 10,468 9,048 Total $ 4,287 $ 4,242 $ 12,816 $ 11,666 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment and Geographic Information [Abstract] | |
Revenue by Geographic Area | Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 United States $ 46,123 $ 39,764 $ 136,292 $ 119,034 Europe 6,325 6,382 20,097 18,947 Asia 3,927 3,601 12,311 10,089 Other international 239 194 786 667 Total international 10,491 10,177 33,194 29,703 Total revenue $ 56,614 $ 49,941 $ 169,486 $ 148,737 |
Revenue by Product Type | United States revenue by product type is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Open ablation $ 19,754 $ 17,948 $ 59,311 $ 53,600 Minimally invasive ablation 9,006 7,877 25,860 25,604 Appendage management 16,907 13,487 49,075 38,385 Total ablation and appendage management 45,667 39,312 134,246 117,589 Valve tools 456 452 2,046 1,445 Total United States $ 46,123 $ 39,764 $ 136,292 $ 119,034 International revenue by product type is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Open ablation $ 5,850 $ 5,437 $ 18,942 $ 16,182 Minimally invasive ablation 2,058 2,355 6,122 6,807 Appendage management 2,532 2,318 7,963 6,540 Total ablation and appendage management 10,440 10,110 33,027 29,529 Valve tools 51 67 167 174 Total international $ 10,491 $ 10,177 $ 33,194 $ 29,703 |
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 | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Description Of Business And Significant Accounting Policies [Line Items] | |||||
Depreciation | $ 5,529 | $ 5,505 | |||
Net carrying amount of loaned equipment | $ 30,788 | 30,788 | $ 27,080 | ||
Revenue recognized from contracts with customers | 56,614 | $ 49,941 | $ 169,486 | $ 148,737 | |
Options, restricted stock and performance based shares excluded from calculation of net loss per share | 3,613 | 3,945 | |||
Share-based compensation expense recognized | 4,287 | 4,242 | $ 12,816 | $ 11,666 | |
Generators And Related Equipment [Member] | |||||
Description Of Business And Significant Accounting Policies [Line Items] | |||||
Depreciation | 744 | $ 783 | 2,228 | $ 2,424 | |
Carrying Amount of Loaned Equipment [Member] | |||||
Description Of Business And Significant Accounting Policies [Line Items] | |||||
Net carrying amount of loaned equipment | $ 4,561 | $ 4,561 | $ 4,545 | ||
Short-term Debt [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 (Summary Of Inventories) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Description of Business and Summary of Significant Accounting Policies [Abstract] | ||
Raw materials | $ 10,643 | $ 9,100 |
Work in process | 2,223 | 1,232 |
Finished goods | 14,923 | 12,152 |
Inventories | $ 27,789 | $ 22,484 |
Description of Business and S_6
Description of Business and Summary of Significant Accounting Policies (Summary Of Property And Equipment) (Details) | 9 Months Ended |
Sep. 30, 2019 | |
Building under Finance Lease [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 15 years |
Computers, Software and Office Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Minimum [Member] | Generator 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 Finance Leases [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Maximum [Member] | Generator and Related Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Maximum [Member] | Machinery And Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 7 years |
Maximum [Member] | Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 7 years |
Maximum [Member] | Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 15 years |
Maximum [Member] | Equipment under Finance Leases [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 5 years |
Description of Business and S_7
Description of Business and Summary of Significant Accounting Policies (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total accumulated other comprehensive income (loss) at beginning of period | $ (154) | $ (98) | $ (199) | $ 34 |
Total accumulated other comprehensive income (loss) at end of period | (376) | (136) | (376) | (136) |
Unrealized Gains (Losses) On Investments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total accumulated other comprehensive income (loss) at beginning of period | 46 | (13) | (37) | (6) |
Other comprehensive income (loss) before reclassifications | 33 | 8 | 116 | 1 |
Amounts reclassified from accumulated other comprehensive (loss) income to other income (expense) | ||||
Total accumulated other comprehensive income (loss) at end of period | 79 | (5) | 79 | (5) |
Foreign Currency Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total accumulated other comprehensive income (loss) at beginning of period | (200) | (85) | (162) | 40 |
Other comprehensive income (loss) before reclassifications | (380) | (84) | (520) | (265) |
Amounts reclassified from accumulated other comprehensive (loss) income to other income (expense) | 125 | 38 | 227 | 94 |
Total accumulated other comprehensive income (loss) at end of period | $ (455) | $ (131) | $ (455) | $ (131) |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) - USD ($) $ in Thousands | Aug. 13, 2019 | Sep. 20, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Change in value of contingent consideration | $ (6,934) | $ (6,696) | |||||
Settlement of trial enrollment milestone | $ (7,500) | ||||||
Cash payments to former shareholders | 18,008 | ||||||
Changes in fair value included in earnings | 6,934 | $ 10,825 | |||||
nContact Surgical [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Changes in fair value included in earnings | $ 3,062 | $ 780 | $ 6,934 | $ 6,696 | |||
SentreHEART [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fair value of AtriCure common stock issued at closing | $ 21,992 | ||||||
Shares issued and delivered | 699,000 | ||||||
Cash payments to former shareholders | $ 18,008 | ||||||
Preliminary fair value of contingent consideration | $ 171,300 | ||||||
Completion Of CONVERGE IDE Trial And Receiving A PMA From FDA [Member] | nContact Surgical [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Shares issued and delivered | 232 | ||||||
Payments of contingent consideration | $ 1,221 |
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 | Sep. 30, 2019 | Dec. 31, 2018 |
Assets: | ||
Total assets | $ 80,211 | $ 108,364 |
Liabilities: | ||
Acquisition-related contingent consideration | 183,139 | 18,773 |
Total liabilities | 183,139 | 18,773 |
Money Market Funds [Member] | ||
Assets: | ||
Total assets | 3,300 | 16,193 |
Repurchase Agreements [Member] | ||
Assets: | ||
Total assets | 10,000 | |
Commercial Paper [Member] | ||
Assets: | ||
Total assets | 16,677 | 40,731 |
U.S. Government Agencies And Securities [Member] | ||
Assets: | ||
Total assets | 9,029 | 6,734 |
Corporate Bonds [Member] | ||
Assets: | ||
Total assets | 24,874 | 30,195 |
Asset-backed Securities [Member] | ||
Assets: | ||
Total assets | 16,331 | 14,511 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets: | ||
Total assets | 9,029 | 6,734 |
Liabilities: | ||
Acquisition-related contingent consideration | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Government Agencies And Securities [Member] | ||
Assets: | ||
Total assets | 9,029 | 6,734 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets: | ||
Total assets | 71,182 | 101,630 |
Liabilities: | ||
Acquisition-related contingent consideration | ||
Significant Other Observable Inputs (Level 2) [Member] | Money Market Funds [Member] | ||
Assets: | ||
Total assets | 3,300 | 16,193 |
Significant Other Observable Inputs (Level 2) [Member] | Repurchase Agreements [Member] | ||
Assets: | ||
Total assets | 10,000 | |
Significant Other Observable Inputs (Level 2) [Member] | Commercial Paper [Member] | ||
Assets: | ||
Total assets | 16,677 | 40,731 |
Significant Other Observable Inputs (Level 2) [Member] | Corporate Bonds [Member] | ||
Assets: | ||
Total assets | 24,874 | 30,195 |
Significant Other Observable Inputs (Level 2) [Member] | Asset-backed Securities [Member] | ||
Assets: | ||
Total assets | 16,331 | 14,511 |
Significant Other Unobservable Inputs (Level 3) [Member] | ||
Liabilities: | ||
Acquisition-related contingent consideration | 183,139 | 18,773 |
Total liabilities | $ 183,139 | $ 18,773 |
Fair Value (Level 3 Fair Value
Fair Value (Level 3 Fair Value Measurements Using Significant Other Unobservable Inputs for Acquisition-Related Contingent Consideration) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Fair Value [Abstract] | ||
Beginning Balance | $ 18,773 | $ 37,098 |
Amounts acquired | 171,300 | |
Settlement of trial enrollment milestone | (7,500) | |
Changes in fair value included in earnings | (6,934) | (10,825) |
Ending Balance | $ 183,139 | $ 18,773 |
Business Combinations (Narrativ
Business Combinations (Narrative) (Details) - USD ($) shares in Thousands, $ in Thousands | Aug. 13, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Business Combination Transactions [Line Items] | |||||
Cash payments to former shareholders | $ 18,008 | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 56,614 | $ 49,941 | 169,486 | 148,737 | |
Net loss | (9,362) | $ (7,235) | (19,098) | (17,707) | |
Change in value of contingent consideration | $ (6,934) | $ (6,696) | |||
SentreHEART [Member] | |||||
Business Combination Transactions [Line Items] | |||||
Acquisition of shares and voting interest | 100.00% | ||||
Consideration payment, value | $ 21,992 | ||||
Cash payments to former shareholders | $ 18,008 | ||||
Consideration payment, shares | 699 | ||||
Maximum number of shares that may be issued | 7,021 | ||||
Maximum contingent consideration payable | 260,000 | $ 260,000 | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 362 | ||||
Net loss | 2,733 | ||||
Acquisition related costs | 2,819 | 3,645 | |||
SentreHEART [Member] | PMA Milestone [Member] | |||||
Business Combination Transactions [Line Items] | |||||
Consideration related to earnout calculation | 140,000 | ||||
Milestone payment | 25,000 | $ 25,000 | |||
Milestone consideration due date | Dec. 31, 2022 | ||||
Potential contingent consideration reduction percentage, monthly | 4.17% | ||||
Date of contingent consideration is reduced to zero | Dec. 31, 2023 | ||||
SentreHEART [Member] | CPT Reimbursement Milestone [Member] | |||||
Business Combination Transactions [Line Items] | |||||
Milestone payment | $ 120,000 | $ 120,000 | |||
Milestone consideration due date | Dec. 31, 2025 | ||||
Potential contingent consideration reduction percentage, monthly | 4.17% | ||||
Date of contingent consideration is reduced to zero | Dec. 31, 2026 |
Business Combinations (Schedule
Business Combinations (Schedule of Components of Aggregate Purchase Price) (Details) - SentreHEART [Member] $ in Thousands | Aug. 13, 2019USD ($) |
Business Acquisition [Line Items] | |
Fair value of AtriCure common stock issued at closing | $ 21,992 |
Cash | 17,254 |
Preliminary fair value of contingent consideration liabilities | 171,300 |
Total purchase price | $ 210,546 |
Business Combinations (Summary
Business Combinations (Summary Of Estimated Fair Values Of Assets Acquired And Liabilities Assumed) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Aug. 13, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Operating lease right-of-use asset | $ 2,929 | |||
Goodwill | 236,316 | $ 105,257 | $ 105,257 | |
SentreHEART [Member] | ||||
Business Acquisition [Line Items] | ||||
Inventories | $ 1,848 | |||
Current assets | 328 | |||
Operating lease right-of-use asset | 2,929 | |||
Property and equipment | 94 | |||
Intangible assets | $ 82,570 | 82,570 | ||
Other assets | 202 | |||
Total identifiable assets | 87,971 | |||
Current liabilities | 5,555 | |||
Operating lease liability | 2,929 | |||
Total liabilities assumed | 8,484 | |||
Net identifiable assets acquired | 79,487 | |||
Goodwill | 131,059 | |||
Total consideration | $ 210,546 |
Business Combinations (Summar_2
Business Combinations (Summary Of Valuation Of Intangible Assets Acquired And Related Amortization Periods) (Details) - SentreHEART [Member] - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Aug. 13, 2019 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | $ 82,570 | $ 82,570 |
Developed Technology [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | $ 270 | |
Intangible assets amortization period | 15 years | |
IPR&D [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | $ 82,300 |
Business Combination (Summary O
Business Combination (Summary Of Pro Forma Acquisition Information) (Details) - SentreHEART [Member] - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Business Acquisition Pro Forma Information [Line Items] | ||
Revenue | $ 171,447 | $ 151,925 |
Net loss | $ (27,107) | $ (32,241) |
Basic and diluted net loss per share | $ (0.72) | $ (0.95) |
Intangible Assets And Goodwil_2
Intangible Assets And Goodwill (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 486 | $ 342 | $ 1,454 | $ 1,026 |
Minimum [Member] | Technology [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Estimated Useful Life | 3 years | |||
Maximum [Member] | Technology [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Estimated Useful Life | 15 years |
Intangible Assets And Goodwil_3
Intangible Assets And Goodwill (Company's Intangible Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 138,012 | $ 56,271 |
Accumulated Amortization | 7,642 | 7,017 |
Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 11,691 | 12,250 |
Accumulated Amortization | 7,642 | 7,017 |
IPR&D [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 126,321 | $ 44,021 |
Intangible Assets And Goodwil_4
Intangible Assets And Goodwill (Future Amortization Expense Related to Intangible Assets with Definite Lives) (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Intangible Assets And Goodwill [Abstract] | |
2019 (excluding the nine months ended September 30, 2019) | $ 489 |
2020 | 1,822 |
2021 | 1,511 |
2022 | 18 |
2023 | 18 |
2024 and thereafter | 191 |
Total | $ 4,049 |
Intangible Assets and Goodwil_5
Intangible Assets and Goodwill (Summary Of Company's Goodwill) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Intangible Assets And Goodwill [Abstract] | ||
Goodwill, Beginning Balance | $ 105,257 | $ 105,257 |
Amounts acquired | 131,059 | |
Goodwill, Ending Balance | $ 236,316 | $ 105,257 |
Accrued Liabilities (Accrued Li
Accrued Liabilities (Accrued Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Accrued Liabilities [Abstract] | ||
Accrued payroll and employee-related expenses | $ 6,149 | $ 4,512 |
Accrued commissions | 7,531 | 8,065 |
Accrued bonus | 7,956 | 9,100 |
Sales returns and allowances | 3,710 | 1,410 |
Accrued royalties | 676 | 662 |
Accrued taxes and value-added taxes payable | 1,117 | 886 |
Other accrued liabilities | 1,019 | 1,205 |
Total | $ 28,158 | $ 25,840 |
Indebtedness (Narrative) (Detai
Indebtedness (Narrative) (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2019 | Aug. 12, 2019 | Oct. 31, 2015 | |
Maximum [Member] | |||
Line of Credit Facility [Line Items] | |||
Letter of credit required to landlord | $ 1,250,000 | ||
Silicon Valley Bank, Loan Agreement, Amended August 12, 2019 [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of credit, maximum borrowing capacity | $ 70,000,000 | ||
Upon certain conditions met, deferred loan payment period | 6 months | ||
Silicon Valley Bank, Loan Agreement, Amended August 12, 2019 [Member] | Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of credit, maximum borrowing capacity | 70,000,000 | ||
Line of credit, borrowings | $ 0 | ||
Maturity date | Aug. 1, 2024 | ||
Line of credit, revolving line of credit | 20,000,000 | ||
Line of credit, availability | $ 10,000,000 | ||
Applicable interest rate | 5.00% | ||
Additional fee on total term loan | 0.15% | ||
Term Loan [Member] | Silicon Valley Bank, Loan Agreement, Amended August 12, 2019 [Member] | |||
Line of Credit Facility [Line Items] | |||
Loan amount | $ 60,000,000 | ||
Interest rate | 5.00% | ||
Additional fee on total term loan | 3.00% | ||
Accrued fee amount | $ 45,000 | ||
Financing costs | $ 528,000 | ||
Term Loan [Member] | Silicon Valley Bank, Loan Agreement, Amended August 12, 2019 [Member] | Prime Rate [Member] | |||
Line of Credit Facility [Line Items] | |||
Basis rate | 0.75% | ||
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) (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Indebtedness [Abstract] | |
2021 | $ 15,714 |
2022 | 17,143 |
2023 | 17,143 |
2024 | 10,000 |
Total long-term debt, of which $0 is current and $60,000 is noncurrent | 60,000 |
Current | 0 |
Noncurrent | $ 60,000 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Oct. 31, 2015 |
Lessee, Lease, Description [Line Items] | ||||
Operating lease right-of-use assets | $ 4,313 | |||
Operating lease liabilities | $ 3,076 | |||
Operating Lease, Weighted Average Remaining Lease Term | 3 years 7 months 6 days | |||
Finance Lease, Weighted Average Remaining Lease Term | 11 years | |||
Operating Lease, Weighted Average Discount Rate, Percent | 5.90% | |||
Finance Lease, Weighted Average Discount Rate, Percent | 7.10% | |||
Accounting Standards Update 2018-11 Leases (Topic 842): Targeted Improvements [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease right-of-use assets | $ 1,884 | |||
Operating lease liabilities | $ 2,189 | |||
Accounting Standards Update 2016-02 [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Accrued rent | $ 305 | |||
Minimum [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Lessee, Operating Lease, Term of Contract | 1 year | |||
Lessee, Finance Lease, Term of Contract | 1 year | |||
Maximum [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Lessee, Operating Lease, Term of Contract | 11 years | |||
Lessee, Finance Lease, Term of Contract | 11 years | |||
Letter of Credit [Member] | Mason Lease [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Letter of credit outstanding | $ 1,250 |
Leases (Summary Of Components O
Leases (Summary Of Components Of Lease Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 285 | $ 600 |
Amortization of right-of-use assets | 247 | 747 |
Interest on lease liabilities | 216 | 656 |
Total finance lease cost | $ 463 | $ 1,403 |
Leases (Summary Of Supplemental
Leases (Summary Of Supplemental Cash Flow Information Related To Leases) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 654 |
Operating cash flows from finance leases | 656 |
Financing cash flows from finance leases | 459 |
Operating Leases | 1,884 |
Operating lease right-of-use asset obtained in business combination | $ 2,929 |
Leases (Summary Of Supplement_2
Leases (Summary Of Supplemental Balance Sheet Information Related To Leases) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Lessee, Lease, Description [Line Items] | ||
Operating lease right-of-use assets | $ 4,313 | |
Other current liabilities and current maturities of leases and long-term debt | (1,483) | |
Operating lease liabilities | (3,076) | |
Total operating lease liabilities | (4,559) | |
Property and equipment, net | 30,788 | $ 27,080 |
Other current liabilities and current maturities of leases and long-term debt | (675) | |
Finance lease liabilities | (11,662) | $ (12,172) |
Total finance lease liabilities | (12,337) | |
Equipment under Finance Leases [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Finance Leases, Property and equipment, at cost | 14,462 | |
Finance Leases, Accumulated depreciation | (3,945) | |
Finance Leases, Property and equipment, net | $ 10,517 |
Leases (Schedule Of Maturities
Leases (Schedule Of Maturities Of Lease Liabilities) (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
2019 (excluding the nine months ended September 30, 2019) | $ 366 |
2020 | 1,460 |
2021 | 1,337 |
2022 | 1,178 |
2023 | 708 |
Total payments | 5,049 |
Less imputed interest | (490) |
Total | 4,559 |
2019 | 379 |
2020 | 1,514 |
2021 | 1,519 |
2022 | 1,540 |
2023 | 1,562 |
2024 | 1,594 |
2025 and thereafter | 9,799 |
Total payments | 17,907 |
Less imputed interest | (5,570) |
Total | $ 12,337 |
Leases (Schedule Of Future Mini
Leases (Schedule Of Future Minimum Lease Payments Under Non-cancelable Operating Leases) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 1,064 |
2020 | 893 |
2021 | 648 |
2022 | 405 |
Total | $ 3,010 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Commitments and Contingencies [Line Items] | ||||
Royalty expense | $ 693 | $ 661 | $ 2,142 | $ 2,028 |
Fund commitment | 5,000 | |||
Purchase commitment | 2,000 | 2,000 | ||
Economic incentive loan | $ 500 | $ 500 | ||
Minimum [Member] | ||||
Commitments and Contingencies [Line Items] | ||||
Royalty rates | 3.00% | |||
Royalty agreement term | 18 years | |||
Maximum [Member] | ||||
Commitments and Contingencies [Line Items] | ||||
Royalty rates | 5.00% | |||
Royalty agreement term | 20 years |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 56,614 | $ 49,941 | $ 169,486 | $ 148,737 |
Income Tax Provision (Narrative
Income Tax Provision (Narrative) (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Taxes [Abstract] | ||||
Effective tax rate | (0.81%) | (0.71%) | (0.80%) | (0.84%) |
Federal tax at statutory rate | 21.00% |
Equity Compensation Plans (Narr
Equity Compensation Plans (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($)shares | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)itemshares | Sep. 30, 2018USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of share-based incentive plans | item | 2 | |||
Shares available for future grants | 11,999,000 | 11,999,000 | ||
Share-based compensation expense recognized | $ | $ 4,287 | $ 4,242 | $ 12,816 | $ 11,666 |
Participants purchase limit shares | 3,000 | |||
Offering period | 6 months | |||
Minimum [Member] | Restricted Stock Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 1 year | |||
Maximum [Member] | Restricted Stock Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
2014 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expiry of options from the date of grant | 10 years | |||
Shares available for future grants | 1,621,000 | 1,621,000 | ||
2014 Plan [Member] | Time-Based Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
2008 Employee Stock Purchase Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock reserved for issuance | 534,000 | 534,000 | ||
Company's common stock may be purchased at a discount | 15.00% | |||
Participants purchase limit value | $ | $ 25 | $ 25 | ||
2018 PSAs [Member] | Performance Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting right of shares of common stock | 1 | |||
Vesting period | 3 years | |||
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] | Restricted Stock Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Annual vesting percentage | 33.30% |
Equity Compensation Plans (Shar
Equity Compensation Plans (Share-Based Compensation Expense Related to Employee Share-Based Compensation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total | $ 4,287 | $ 4,242 | $ 12,816 | $ 11,666 |
Cost of Revenue [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total | 239 | 765 | 656 | 1,240 |
Research and Development Expenses [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total | 601 | 426 | 1,692 | 1,378 |
Selling, General and Administrative Expenses [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total | $ 3,447 | $ 3,051 | $ 10,468 | $ 9,048 |
Segment and Geographic Inform_3
Segment and Geographic Information (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Netherlands [Member] | ||
Long-lived assets | $ 1,347 | $ 1,296 |
Segment and Geographic Inform_4
Segment and Geographic Information (Revenue by Geographic Area) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue recognized from contracts with customers | $ 56,614 | $ 49,941 | $ 169,486 | $ 148,737 |
Revenue | 56,614 | 49,941 | 169,486 | 148,737 |
United States [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue recognized from contracts with customers | 46,123 | 39,764 | 136,292 | 119,034 |
Revenue | 46,123 | 39,764 | 136,292 | 119,034 |
Europe [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue recognized from contracts with customers | 6,325 | 6,382 | 20,097 | 18,947 |
Revenue | 6,325 | 6,382 | 20,097 | 18,947 |
Asia [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue recognized from contracts with customers | 3,927 | 3,601 | 12,311 | 10,089 |
Revenue | 3,927 | 3,601 | 12,311 | 10,089 |
Other International [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue recognized from contracts with customers | 239 | 194 | 786 | 667 |
Revenue | 239 | 194 | 786 | 667 |
International [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue recognized from contracts with customers | 10,491 | 10,177 | 33,194 | 29,703 |
Revenue | $ 10,491 | $ 10,177 | $ 33,194 | $ 29,703 |
Segment and Geographic Inform_5
Segment and Geographic Information (Revenue by Product Type) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue from External Customer [Line Items] | ||||
Revenue recognized from contracts with customers | $ 56,614 | $ 49,941 | $ 169,486 | $ 148,737 |
Revenue | 56,614 | 49,941 | 169,486 | 148,737 |
United States [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue recognized from contracts with customers | 46,123 | 39,764 | 136,292 | 119,034 |
Revenue | 46,123 | 39,764 | 136,292 | 119,034 |
United States [Member] | Open Ablation [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue recognized from contracts with customers | 19,754 | 17,948 | 59,311 | 53,600 |
Revenue | 19,754 | 17,948 | 59,311 | 53,600 |
United States [Member] | Minimally Invasive Ablation [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue recognized from contracts with customers | 9,006 | 7,877 | 25,860 | 25,604 |
Revenue | 9,006 | 7,877 | 25,860 | 25,604 |
United States [Member] | Appendage Management [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue recognized from contracts with customers | 16,907 | 13,487 | 49,075 | 38,385 |
Revenue | 16,907 | 13,487 | 49,075 | 38,385 |
United States [Member] | Ablation And Appendage Management [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue recognized from contracts with customers | 45,667 | 39,312 | 134,246 | 117,589 |
Revenue | 45,667 | 39,312 | 134,246 | 117,589 |
United States [Member] | Valve Tools [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue recognized from contracts with customers | 456 | 452 | 2,046 | 1,445 |
Revenue | 456 | 452 | 2,046 | 1,445 |
International [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue recognized from contracts with customers | 10,491 | 10,177 | 33,194 | 29,703 |
Revenue | 10,491 | 10,177 | 33,194 | 29,703 |
International [Member] | Open Ablation [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue recognized from contracts with customers | 5,850 | 5,437 | 18,942 | 16,182 |
Revenue | 5,850 | 5,437 | 18,942 | 16,182 |
International [Member] | Minimally Invasive Ablation [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue recognized from contracts with customers | 2,058 | 2,355 | 6,122 | 6,807 |
Revenue | 2,058 | 2,355 | 6,122 | 6,807 |
International [Member] | Appendage Management [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue recognized from contracts with customers | 2,532 | 2,318 | 7,963 | 6,540 |
Revenue | 2,532 | 2,318 | 7,963 | 6,540 |
International [Member] | Ablation And Appendage Management [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue recognized from contracts with customers | 10,440 | 10,110 | 33,027 | 29,529 |
Revenue | 10,440 | 10,110 | 33,027 | 29,529 |
International [Member] | Valve Tools [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue recognized from contracts with customers | 51 | 67 | 167 | 174 |
Revenue | $ 51 | $ 67 | $ 167 | $ 174 |