Emergent BioSolutions (EBS) 10-Q 3 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Jul. 27, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	Emergent BioSolutions Inc.
Entity Central Index Key	1,367,644
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		50,019,935
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2018

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 190,237	$ 178,292
Restricted cash	1,043	1,043
Accounts receivable	189,489	143,653
Inventories	139,373	142,812
Income tax receivable, net	0	2,432
Prepaid expenses and other current assets	21,166	17,157
Total current assets	541,308	485,389
Property, plant and equipment, net	419,157	407,210
Intangible assets, net	111,773	119,597
Goodwill	49,130	49,130
Deferred tax assets, net	12,654	2,834
Other assets	4,869	6,046
Total assets	1,138,891	1,070,206
Current liabilities:
Accounts payable	41,629	41,751
Accrued expenses and other current liabilities	10,552	4,831
Accrued compensation	29,259	37,882
Contingent consideration, current portion	2,852	2,372
Income taxes payable	2,771	0
Deferred revenue, current portion	9,750	13,232
Total current liabilities	96,813	100,068
Contingent consideration, net of current portion	9,839	9,902
Long-term indebtedness	13,482	13,457
Income taxes payable	12,500	12,500
Deferred revenue, net of current portion	63,255	17,259
Other liabilities	4,656	4,675
Total liabilities	200,545	157,861
Stockholders' equity:
Preferred stock, $0.001 par value; 15,000,000 shares authorized, 0 shares issued and outstanding at both June 30, 2018 and December 31, 2017	0	0
Common stock, $0.001 par value; 200,000,000 shares authorized, 51,231,814 shares issued and 50,014,528 shares outstanding at June 30, 2018; 50,619,808 shares issued and 49,405,365 shares outstanding at December 31, 2017	51	50
Treasury stock, at cost, 1,217,286 and 1,214,443 common shares at June 30, 2018 and December 31, 2017, respectively	(39,642)	(39,497)
Additional paid-in capital	632,569	618,416
Accumulated other comprehensive loss	(4,415)	(3,698)
Retained earnings	349,783	337,074
Total stockholders' equity	938,346	912,345
Total liabilities and stockholders' equity	$ 1,138,891	$ 1,070,206

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Stockholders' equity:
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	15,000,000	15,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	51,231,814	50,619,808
Common stock, shares outstanding (in shares)	50,014,528	49,405,365
Treasury stock ( in shares)	1,217,286	1,214,443

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenues:
Total revenues		$ 220,200	$ 100,772	$ 338,014	$ 217,630
Operating expenses:
Cost of product sales and contract manufacturing		89,173	34,624	147,217	80,946
Research and development		24,745	25,751	53,796	46,227
Selling, general and administrative		39,506	31,868	79,710	67,018
Income from operations		66,776	8,529	57,291	23,439
Other income (expense):
Interest income		306	583	528	956
Interest expense		(1,008)	(1,805)	(1,242)	(3,743)
Other expense, net		(253)	(586)	(179)	(286)
Total other expense, net		(955)	(1,808)	(893)	(3,073)
Income before provision for income taxes		65,821	6,721	56,398	20,366
Provision for income taxes		15,677	2,105	11,162	5,265
Net income		$ 50,144	$ 4,616	$ 45,236	$ 15,101
Net income per share - basic (in dollars per share)		$ 1	$ 0.11	$ 0.91	$ 0.37
Net income per share - diluted (in dollars per share)	[1]	$ 0.98	$ 0.11	$ 0.89	$ 0.35
Weighted-average number of shares - basic (in shares)		49,896,124	41,013,764	49,738,980	40,871,540
Weighted-average number of shares - diluted (in shares)		51,162,909	50,078,594	51,039,195	49,899,291
Product Sales [Member]
Revenues:
Total revenues		$ 180,075	$ 63,610	$ 255,846	$ 145,579
Contract Manufacturing [Member]
Revenues:
Total revenues		23,613	16,160	49,791	33,788
Contracts and Grants [Member]
Revenues:
Total revenues		$ 16,512	$ 21,002	$ 32,377	$ 38,263
[1]	See "Earnings per share" footnote for details on calculation.

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Condensed Consolidated Statements of Comprehensive Income [Abstract]
Net income	$ 50,144	$ 4,616	$ 45,236	$ 15,101
Foreign currency translation, net of tax	1,165	228	(717)	812
Comprehensive income	$ 51,309	$ 4,844	$ 44,519	$ 15,913

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018		Jun. 30, 2017
Cash flows from operating activities:
Net income	$ 45,236		$ 15,101
Adjustments to reconcile to net cash provided by (used in) operating activities:
Stock-based compensation expense	11,709		8,018
Depreciation and amortization	24,713		20,097
Income taxes	8,475		4,951
Change in fair value of contingent obligations	1,674		433
Impairment of long-lived assets	263		0
Other	966		464
Changes in operating assets and liabilities:
Accounts receivable	(46,251)		36,160
Inventories	3,439		3,473
Income taxes	(3,239)		0
Prepaid expenses and other assets	(6,120)		276
Accounts payable	(4,394)		4,245
Accrued expenses and other liabilities	5,607		(4,386)
Accrued compensation	(8,621)		(10,194)
Deferred revenue	134		17,035
Net cash provided by operating activities	33,591		95,673
Cash flows from investing activities:
Purchases of property, plant and equipment and other	(25,217)		(29,605)
Proceeds from sale of assets	2,624		0
Net cash used in investing activities	(22,593)		(29,605)
Cash flows from financing activities:
Issuance of common stock upon exercise of stock options	8,465		4,605
Taxes paid on behalf of employees for equity activity	(6,020)		(4,059)
Payments of notes payable to Aptevo	0		(20,000)
Contingent consideration payments	(1,257)		(2,405)
Purchase of treasury stock	(145)		(83)
Net cash provided by (used in) financing activities	1,043		(21,942)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(96)		(12)
Net increase in cash, cash equivalents and restricted cash	11,945		44,114
Cash, cash equivalents and restricted cash at beginning of period	179,335	[1]	271,513
Cash, cash equivalents and restricted cash at end of period	$ 191,280	[1]	$ 315,627
[1]	As of December 31, 2017 and June 30, 2018, the balance includes $1,043 of restricted cash.

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Condensed Consolidated Statements of Cash Flows (Unaudited) [Abstract]
Restricted cash	$ 1,043	$ 1,043

Condensed Consolidated Stateme8

Condensed Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	$0.001 Par Value Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Loss [Member]	Retained Earnings [Member]	Total
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Adoption of new accounting standard (ASC 606), net of tax | ASC 606 [Member]					$ (32,527)	$ (32,527)
Balance at Dec. 31, 2017	$ 50	$ 618,416	$ (39,497)	$ (3,698)	337,074	912,345
Balance (ASC 606 [Member]) at Dec. 31, 2017	$ 50	618,416	$ (39,497)	(3,698)	304,547	$ 879,818
Balance (in shares) at Dec. 31, 2017	50,619,808		(1,214,443)			49,405,365
Balance (in shares) (ASC 606 [Member]) at Dec. 31, 2017	50,619,808		(1,214,443)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Employee equity plans activity	$ 1	14,153				$ 14,154
Employee equity plans activity (in shares)	612,006
Treasury stock			$ (145)			(145)
Treasury stock (in shares)			(2,843)
Net income					45,236	45,236
Foreign currency translation, net of tax				(717)		(717)
Balance at Jun. 30, 2018	$ 51	$ 632,569	$ (39,642)	$ (4,415)	$ 349,783	$ 938,346
Balance (in shares) at Jun. 30, 2018	51,231,814		(1,217,286)			50,014,528

Condensed Consolidated Stateme9

Condensed Consolidated Statement of Changes in Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Condensed Consolidated Statement of Changes in Stockholders' Equity [Abstract]
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001

Summary of significant accounti

Summary of significant accounting policies	6 Months Ended
	Jun. 30, 2018
Summary of significant accounting policies [Abstract]
Summary of significant accounting policies	1. Summary of significant accounting policies Basis of presentation and consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of Emergent BioSolutions Inc. ("Emergent" or the "Company") and its wholly owned and majority owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The unaudited consolidated financial statements included herein have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X issued by the Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the SEC. In the opinion of the Company's management, any adjustments contained in the accompanying unaudited condensed consolidated financial statements are of a normal recurring nature and are necessary to present fairly the financial position of the Company as of June 30, 2018. Interim results are not necessarily indicative of results that may be expected for any other interim period or for an entire year. Significant accounting policies During the six months ended June 30, 2018, there have been no significant changes to the Company's summary of significant accounting policies contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the SEC, except for the new revenue recognition standard the Company adopted effective January 1, 2018. See Note 2. "Revenue recognition" for further details. Recently issued accounting standards ASU No. 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-based Payment Accounting In June 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") No. 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-based Payment Accounting ASU No. 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting In May 2017, the FASB issued ASU No. 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting ASU 2016-18, Restricted Cash (Topic 230): Statement of Cash Flows In November 2016, the FASB issued ASU No. 2016-18, Restricted Cash (Topic 230): Statement of Cash Flows " ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments " ASU 2016-02, Leases (Topic 842) In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) " There are no other recently issued accounting pronouncements that are expected to have a material impact on the Company's financial position, results of operations or cash flows.

Revenue Recognition

Revenue Recognition	6 Months Ended
	Jun. 30, 2018
Revenue Recognition [Abstract]
Revenue Recognition	2. Revenue recognition In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) " Topic 605, Revenue Recognition A performance obligation is a promise in a contract to transfer a distinct product or service to a customer and is the unit of account under ASC 606. For contracts with multiple performance obligations, the Company allocates the contract's transaction price to each performance obligation on a relative standalone selling price basis using the Company's best estimate of the standalone selling price of each distinct product or service in the contract. The primary method used to estimate standalone selling price is the price observed in standalone sales to customers, however when prices in standalone sales are not available the Company may use third-party pricing for similar products or services or estimate the standalone selling price. Allocation of the transaction price is determined at the contracts' inception. Once the performance obligations in the contract have been identified, the Company estimates the transaction price of the contract. The estimate includes amounts that are fixed as well as those that can vary based on expected outcomes of the activities or contractual terms. The Company's variable consideration primarily includes consideration transferred under its development contracts with the U.S. government as consideration received can vary based on developmental progression of the product candidate(s). When a contract's transaction price includes variable consideration, the Company evaluates the estimate of the variable consideration to determine whether the estimate needs to be constrained; therefore, the Company includes the variable consideration in the transaction price only to the extent that it is probable that a significant reversal of the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Variable consideration estimates are updated at each reporting date. There were no constraints or material changes to the Company's variable consideration estimates as of or during the six months ended June 30, 2018. To indicate the transfer of control for the Company's product sales and contract manufacturing services, it must have a present right to payment, legal title must have passed to the customer, and the customer must have the significant risks and rewards of ownership. Revenue for long-term development contracts is generally recognized based upon the cost-to-cost measure of progress, provided that the Company meets the criteria associated with transferring control of the good or service over time. The Company derives revenues primarily from the sale of its marketed medical countermeasures ("MCMs") products and contract revenues associated with development of its MCMs. The primary customer for the Company's MCM products and the development of the Company's MCM product candidate portfolio is the U.S. government. The Company's contracts for the sale of its MCM products generally have single performance obligation. Certain product sales contracts with the U.S. government include multiple performance obligations, which generally include the marketed product, stability testing associated with that product, expiry extensions and plasma collection. The Company's development contracts for its MCM product candidates generally are cost plus fixed fee arrangements, which the Company treats a single performance obligation with variable consideration. The U.S. government contracts for the sale and development of the Company's MCM products and product candidates are normally multi-year contracts. In addition, the Company performs contract manufacturing services for third parties, which includes pharmaceutical product process development, manufacturing and filling services for injectable and other sterile products, inclusive of process design, technical transfer, manufacturing validations, laboratory analytical development support, aseptic filling, lyophilization, final packaging and accelerated and ongoing stability studies. These contracts generally include a single performance obligation with a duration that is less than one-year. The Company finalized the review of its portfolio of revenue contracts that were not complete as of the adoption date and made its determination of its revenue streams as well as completed extensive contract specific reviews to determine the impact of the new standard on its historical and prospective revenue recognition. Because many of the Company's contracts with customers have unique contract terms, the Company reviewed all of its non-standard agreements in order to determine the effect of adoption. The Company determined its Centers for Innovation in Advanced Development and Manufacturing ("CIADM") contract with the ​​Biomedical Advanced Research and Development Authority ("BARDA") will have a material change in revenue recognition under the new guidance. Under ASC 606, the Company determined that there is one performance obligation to provide ongoing manufacturing capability to the U.S. government and will recognize the consideration received in the base period on a straight-line basis over a 24-year period as the capability being created during the base period of the contract is being provided to the customer over both the base period contract term as well as 17 additional option periods. In addition, the Company determined the CIADM contract includes a significant financing component which is included in the transaction price. The Company calculated the financing component using an interest rate the Company had on its other debt obligations at inception of the contract. Prior to the adoption of ASC 606, the Company recognized revenue under the CIADM contract on a straight-line basis, based upon its estimate of the total payments to be received under the contract. The Company analyzed the estimated payments to be received on a quarterly basis to determine if an adjustment to revenue was required. As a result of the adoption of ASC 606, as of January 1, 2018, there was an increase in the deferred revenue liability of $42.4 million and an increase in deferred tax assets of $9.9 million The Company considers accounts receivables and deferred costs associated with revenue generating contracts, that are not included in inventory or property, plant and equipment, as contract assets. As of June 30, 2018 and December 31, 2017, the Company had $189.5 million and $143.7 million, respectively, in contract assets associated with accounts receivable When performance obligations are not transferred to a customer at the end of a reporting period, the amount allocated to those performance obligations are deferred until control of these performance obligations is transferred to the customer. The following table presents the rollforward of the contract liabilities, (in thousands) Balance at December 31, 2017 $ 30,491 Adoption of new accounting standard (ASC 606) 42,379 Balance at January 1, 2018 72,870 Deferral of revenue 15,478 Recognition of revenue included in beginning of year contract liability (15,343 ) Balance at June 30, 2018 $ 73,005 We operate in one business segment. Therefore, results of our operations are reported on a consolidated basis for purposes of segment reporting, consistent with internal management reporting. (in thousands) Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 U.S Non-U.S. U.S Non-U.S. Government Government Total Government Government Total Product sales $ 169,897 $ 10,178 $ 180,075 $ 235,922 $ 19,924 $ 255,846 Contract manufacturing - 23,613 23,613 - 49,791 49,791 Contracts and grants 15,250 1,262 16,512 30,055 2,322 32,377 Total revenues $ 185,147 $ 35,053 $ 220,200 $ 265,977 $ 72,037 $ 338,014

Acquisitions

Acquisitions	6 Months Ended
	Jun. 30, 2018
Acquisitions [Abstract]
Acquisitions	3. Acquisitions Acquisition of ACAM2000 business On October 6, 2017, the Company completed the acquisition of the ACAM2000® (Smallpox (Vaccinia) Vaccine, Live) business of Sanofi Pasteur Biologics, LLC ("Sanofi"). This acquisition included ACAM2000, the only smallpox vaccine licensed by the FDA, a current good manufacturing practices ("cGMP") live viral manufacturing facility and office and warehouse space, both in Canton, Massachusetts, and a cGMP viral fill/finish facility in Rockville, Maryland. With this acquisition, the Company also acquired an existing 10-year contract with the Centers for Disease Control and Prevention ("CDC"), which under the terms expired in March 2018. This contract had a stated value of up to $425 million, with a remaining contract value of up to approximately $160 million as of the acquisition date, for the delivery of ACAM2000 to the U.S. Strategic National Stockpile ("SNS") This acquisition added to the Company's product portfolio and expanded the Company's manufacturing capabilities. At the closing, the Company paid $97.5 million in an upfront payment and $20 million in milestone payments earned as of the closing date tied to the achievement of certain regulatory and manufacturing-related milestones, for a total payment in cash of $117.5 million. The agreement included an additional milestone payment of up to $7.5 million upon achievement of a regulatory milestone, which was achieved in November 2017. The $7.5 million milestone payment was made during the fourth quarter of 2017. This transaction was accounted for by the Company under the acquisition method of accounting, with the Company as the acquirer. Under the acquisition method of accounting, the assets and liabilities of the ACAM2000 business were preliminarily recorded as of October 6, 2017, the acquisition date, at their respective fair values, and combined with those of the Company. The contingent purchase consideration obligation is based on a regulatory milestone. At October 6, 2017, the contingent purchase consideration obligation related to the regulatory milestone was recorded at a fair value of $2.2 million. The fair value of this obligation is based on a present value model of management's assessment of the probability of achievement of the regulatory milestone as of the acquisition date. This assessment is based on inputs that have no observable market (Level 3). The total purchase price is summarized below: (in thousands) Amount of cash paid to Sanofi $ 117,500 Fair value of contingent purchase consideration 2,200 Total purchase price $ 119,700 The table below summarizes the preliminary allocation of the purchase price based upon estimated fair values of assets acquired at October 6, 2017. The Company did not assume any liabilities in the acquisition. This preliminary allocation is based upon the finalization of valuation reports and as management gathers additional information on the acquired assets. (in thousands) Fair value of tangible assets acquired: Inventory $ 74,876 Property, plant and equipment 19,995 Total fair value of tangible assets acquired 94,871 Acquired intangible asset 16,700 Goodwill 8,129 Total purchase price $ 119,700 The Company determined the fair value of the intangible asset using the income approach, which is based on the present value of future cash flows. The fair value measurements are based on significant unobservable inputs that are developed by the Company using estimates and assumptions of the respective market and market penetration of the Company's products. The Company determined the fair value of the ACAM2000 intangible asset using the income approach with a present value discount rate of 15.5%; this discount rate is derived from the estimated weighted-average cost of capital for substantially similar companies and assets. This is comparable to the estimated internal rate of return for the acquisition and represents the rate that market participants would use to value these intangible assets. The projected cash flows from the ACAM2000 intangible asset were based on key assumptions, including: estimates of revenues and operating profits, the life of the potential commercialized product and associated risks, and risks related to the viability of and potential alternative treatments in any future target markets. The Company has determined the ACAM2000 intangible asset will be amortized over 10 years. The Company determined the fair value of the inventory using the probability adjusted comparative sales method, which estimates the expected sales price reduced for all costs expected to be incurred to complete and dispose of the inventory with a profit on those costs. The Company determined the fair value of the property, plant and equipment utilizing either the cost approach or the sales comparison approach. The cost approach is derived by determining replacement cost of the asset and then subtracting any value that has been lost due to economic obsolescence, functional obsolescence, or physical deterioration. The sales comparison approach is derived by the determination that an asset is equal to the market price of an asset of comparable features such as design, location, size, construction, materials, use, capacity, specification, operational characteristics and other features or descriptions. The Company recorded approximately $8.1 million in goodwill related to the ACAM2000 acquisition, representing the purchase price paid in the acquisition that was in excess of the fair value of the tangible and intangible assets acquired. There is no goodwill for tax purposes.

Fair value measurements

Fair value measurements	6 Months Ended
	Jun. 30, 2018
Fair value measurements [Abstract]
Fair value measurements	4. Fair value measurements Contingent consideration consists of liabilities measured at fair value on a recurring basis. For the three and six months ended June 30, 2018, the contingent purchase consideration obligations associated with RSDL increased by $0.7 million and $1.6 million, respectively. During the three and six months ended June 30, 2017, the contingent purchase consideration obligations associated with RSDL increased by $0.2 million and $0.5 million, respectively. The changes in the fair value of the RSDL contingent consideration obligations are primarily due to the expected amount and timing of future net sales, which are inputs that have no observable market (Level 3). These changes are classified in the Company's statement of operations as cost of product sales and contract manufacturing. The following table is a reconciliation of the beginning and ending balance of the liabilities, consisting only of contingent consideration, measured at fair value, using significant unobservable inputs (Level 3) during the six months ended June 30, 2018. (in thousands) Balance at December 31, 2017 $ 12,274 Expense included in earnings 1,674 Settlements (1,257 ) Balance at June 30, 2018 $ 12,691 Separate disclosure is required for assets and liabilities measured at fair value on a recurring basis from those measured at fair value on a non-recurring basis. As of June 30, 2018 and 2017 and for the quarters then ended, the Company had no significant assets or liabilities that were measured at fair value on a non-recurring basis.

Inventories

Inventories	6 Months Ended
	Jun. 30, 2018
Inventories [Abstract]
Inventories	5. Inventories Inventories consisted of the following: June 30, December 31, (in thousands) 2018 2017 Raw materials and supplies $ 34,426 $ 36,069 Work-in-process 79,546 76,610 Finished goods 25,401 30,133 Total inventories $ 139,373 $ 142,812

Property, plant and equipment

Property, plant and equipment	6 Months Ended
	Jun. 30, 2018
Property, plant and equipment [Abstract]
Property, plant and equipment	6. Property, plant and equipment Property, plant and equipment consisted of the following: June 30, December 31, (in thousands) 2018 2017 Land and improvements $ 21,848 $ 21,843 Buildings, building improvements and leasehold improvements 159,264 160,005 Furniture and equipment 213,445 206,819 Software 52,343 50,829 Construction-in-progress 124,832 100,088 Property, plant and equipment, gross 571,732 539,584 Less: Accumulated depreciation and amortization (152,575 ) (132,374 ) Total property, plant and equipment, net $ 419,157 $ 407,210 In the table presented above, as of June 30, 2018 and December 31, 2017, construction-in-progress primarily includes costs related to construction of the Company's CIADM facility.

Intangible assets

Intangible assets	6 Months Ended
	Jun. 30, 2018
Intangible assets [Abstract]
Intangible assets	7. Intangible assets During the three months ended June 30, 2018 and 2017, the Company recorded amortization expense for intangible assets of $3.9 million and $1.6 million, respectively. During the six months ended June 30, 2018 and 2017, the Company recorded amortization expense for intangible assets of $7.8 million and $3.1 million, respectively. Amortization expense has been recorded in operating expenses, specifically selling, general and administrative and cost of product sales and contract manufacturing. As of June 30, 2018, the weighted average amortization period remaining for intangible assets was 8.3 years.

Equity

Equity	6 Months Ended
	Jun. 30, 2018
Equity [Abstract]
Equity	8. Equity During the six months ended June 30, 2018, the Company granted 0.4 million shares of stock options and 0.4 million shares of restricted stock units under the Fourth Amended and Restated Emergent BioSolutions Inc. 2006 Stock Incentive Plan (the "Plan"). The grants vest over three equal annual installments beginning on the day prior to the anniversary of the grant date. On May 24, 2018, the Company's stockholders approved an increase in the number of shares issuable under the Plan by 3.0 million shares, to a total of 21.9 million shares, and extended the plan term to May 23, 2028.

Income taxes

Income taxes	6 Months Ended
	Jun. 30, 2018
Income taxes [Abstract]
Income taxes	9. Income taxes The estimated effective annual tax rate for the Company, which excludes discrete adjustments, was 25% and 31% for the six months ended June 30, 2018 and 2017, respectively. The decrease in the estimated effective annual tax rate is primarily due to the impact of the Tax Reform Act enacted on December 22, 2017 which reduced the U.S. federal corporate income tax rate from 35% to 21% For the six months ended June 30, 2018 and 2017, the Company recorded a discrete tax benefit primarily associated with equity awards activity of $3.2 million and $1.1 million, respectively. On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Reform Act. For the six months ended June 30, 2018, the Company did not change the provisional estimates recognized in 2017. Additional work is necessary for a more detailed analysis of the Company's deferred tax assets and liabilities and its historical foreign earnings as well as potential correlative adjustments. Any adjustment to these amounts will be recorded to current tax expense in the quarter of 2018 when the analysis is complete.

Purchase commitments

Purchase commitments	6 Months Ended
	Jun. 30, 2018
Purchase commitments [Abstract]
Purchase commitments	10. Purchase commitments During the first quarter of 2018, the Company entered into a three year contract with Norwood Laboratories Inc. ("Norwood") to purchase approximately $12.0 million of raw materials related to the Company's RSDL product. As of June 30, 2018, the Company had not purchased any materials under this commitment.

Earnings per share

Earnings per share	6 Months Ended
	Jun. 30, 2018
Earnings per share [Abstract]
Earnings per share	11. Earnings per share The following table presents the calculation of basic and diluted net income per share: Three Months Ended June 30, Six Months Ended June 30, (in thousands, except share and per share data) 2018 2017 2018 2017 Numerator: Net income $ 50,144 $ 4,616 $ 45,236 $ 15,101 Interest expense on convertible debt, net of tax - 835 - 1,742 Amortization of convertible debt issuance costs, net of tax - 195 - 391 Net income, adjusted $ 50,144 $ 5,646 $ 45,236 $ 17,234 Denominator: Weighted-average number of shares—basic 49,896,124 41,013,764 49,738,980 40,871,540 Dilutive securities—equity awards 1,266,785 968,354 1,300,215 931,263 Dilutive securities—convertible debt - 8,096,476 - 8,096,488 Weighted-average number of shares—diluted 51,162,909 50,078,594 51,039,195 49,899,291 Net income per share - basic $ 1.00 $ 0.11 $ 0.91 $ 0.37 Net income per share - diluted $ 0.98 $ 0.11 $ 0.89 $ 0.35 For the three and six months ended June 30, 2018 and 2017, basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. For the three and six months ended June 30, 2018, diluted earnings per share was computed using the "treasury method" by dividing the net income by the weighted average number of shares of common stock outstanding during the period. The weighted average number of shares is adjusted for the potential dilutive effect of the exercise of stock options, and the vesting of restricted stock units and performance stock units. For the three and six months ended June 30, 2017, diluted earnings per share is computed using the "if-converted" method by dividing the net income adjusted for interest expense and amortization of debt issuance cost, both net of tax, associated with the 2.875% Convertible Senior Notes due 2021 (the "Notes") by the weighted average number of shares of common stock outstanding during the period. The weighted average number of shares is adjusted for the potential dilutive effect of the exercise of stock options; and the vesting of restricted stock units and performance stock units along with the assumption of the conversion of the Notes, at the beginning of the period. For the three and six months ended June 30, 2018, there were no stock options excluded from the calculation of diluted earnings per share. For the three and six months ended June 30, 2017, approximately 0.4 million stock options were excluded from the calculation of diluted earnings per share due to the fact that the exercise prices were in excess of the average per share closing price during the period.

Litigation

Litigation	6 Months Ended
	Jun. 30, 2018
Litigation [Abstract]
Litigation	12. Litigation On July 19, 2016, Plaintiff William Sponn ("Sponn"), filed a putative class action complaint in the United States District Court for the District of Maryland on behalf of purchasers of the Company's common stock between January 11, 2016 and June 21, 2016, inclusive (the "Class Period"), seeking to pursue remedies under the Securities Exchange Act of 1934 against the Company and certain of its senior officers and directors, collectively, the Defendants. The complaint alleges, among other things, that the Company made materially false and misleading statements about the government's demand for BioThrax and expectations that the Company's five-year exclusive procurement contract with HHS would be renewed and omitted certain material facts. Sponn is seeking unspecified damages, including legal costs. On October 25, 2016, the Court added City of Cape Coral Municipal Firefighters' Retirement Plan and City of Sunrise Police Officers' Retirement Plan as plaintiffs and appointed them Lead Plaintiffs and Robins Geller Rudman & Dowd LLP as Lead Counsel. On December 27, 2016, the Plaintiffs filed an amended complaint that cites the same class period, names the same defendants and makes similar allegations to the original complaint. The Company filed a Motion to Dismiss on February 27, 2017. The Plaintiffs filed an opposition brief on April 28, 2017. The Company's Motion to Dismiss was heard and denied on July 6, 2017. The Company filed its answer on July 28, 2017. The parties are currently in the process of exchanging discovery. The Plaintiffs filed an amended motion for class certification and appointment of Sponn and Geoffrey L. Flagstad as lead plaintiffs on December 20, 2017. A hearing on that motion was heard on May 2, 2018. The Defendants believe that the allegations in the complaint are without merit and intend to defend themselves vigorously against those claims. As of the date of this filing, the range of potential loss cannot be determined or estimated.

Summary of significant accoun22

Summary of significant accounting policies (Policies)	6 Months Ended
	Jun. 30, 2018
Summary of significant accounting policies [Abstract]
Basis of presentation and consolidation	Basis of presentation and consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of Emergent BioSolutions Inc. ("Emergent" or the "Company") and its wholly owned and majority owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The unaudited consolidated financial statements included herein have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X issued by the Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the SEC. In the opinion of the Company's management, any adjustments contained in the accompanying unaudited condensed consolidated financial statements are of a normal recurring nature and are necessary to present fairly the financial position of the Company as of June 30, 2018. Interim results are not necessarily indicative of results that may be expected for any other interim period or for an entire year. Significant accounting policies During the six months ended June 30, 2018, there have been no significant changes to the Company's summary of significant accounting policies contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the SEC, except for the new revenue recognition standard the Company adopted effective January 1, 2018. See Note 2. "Revenue recognition" for further details.
Recently issued accounting standards	Recently issued accounting standards ASU No. 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-based Payment Accounting In June 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") No. 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-based Payment Accounting ASU No. 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting In May 2017, the FASB issued ASU No. 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting ASU 2016-18, Restricted Cash (Topic 230): Statement of Cash Flows In November 2016, the FASB issued ASU No. 2016-18, Restricted Cash (Topic 230): Statement of Cash Flows " ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments " ASU 2016-02, Leases (Topic 842) In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) " There are no other recently issued accounting pronouncements that are expected to have a material impact on the Company's financial position, results of operations or cash flows.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	6 Months Ended
	Jun. 30, 2018
Revenue Recognition [Abstract]
Rollforward of Contract Liabilities	When performance obligations are not transferred to a customer at the end of a reporting period, the amount allocated to those performance obligations are deferred until control of these performance obligations is transferred to the customer. The following table presents the rollforward of the contract liabilities, (in thousands) Balance at December 31, 2017 $ 30,491 Adoption of new accounting standard (ASC 606) 42,379 Balance at January 1, 2018 72,870 Deferral of revenue 15,478 Recognition of revenue included in beginning of year contract liability (15,343 ) Balance at June 30, 2018 $ 73,005
Disaggregation of Revenue	We operate in one business segment. Therefore, results of our operations are reported on a consolidated basis for purposes of segment reporting, consistent with internal management reporting. (in thousands) Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 U.S Non-U.S. U.S Non-U.S. Government Government Total Government Government Total Product sales $ 169,897 $ 10,178 $ 180,075 $ 235,922 $ 19,924 $ 255,846 Contract manufacturing - 23,613 23,613 - 49,791 49,791 Contracts and grants 15,250 1,262 16,512 30,055 2,322 32,377 Total revenues $ 185,147 $ 35,053 $ 220,200 $ 265,977 $ 72,037 $ 338,014

Acquisitions (Tables)

Acquisitions (Tables)	6 Months Ended
	Jun. 30, 2018
Acquisitions [Abstract]
Total Purchase Price	The total purchase price is summarized below: (in thousands) Amount of cash paid to Sanofi $ 117,500 Fair value of contingent purchase consideration 2,200 Total purchase price $ 119,700
Allocation of Purchase Price Based Upon Estimated Fair Values of Assets Acquired and Liabilities Assumed	The table below summarizes the preliminary allocation of the purchase price based upon estimated fair values of assets acquired at October 6, 2017. The Company did not assume any liabilities in the acquisition. This preliminary allocation is based upon the finalization of valuation reports and as management gathers additional information on the acquired assets. (in thousands) Fair value of tangible assets acquired: Inventory $ 74,876 Property, plant and equipment 19,995 Total fair value of tangible assets acquired 94,871 Acquired intangible asset 16,700 Goodwill 8,129 Total purchase price $ 119,700

Fair value measurements (Tables

Fair value measurements (Tables)	6 Months Ended
	Jun. 30, 2018
Fair value measurements [Abstract]
Reconciliation of Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3)	The following table is a reconciliation of the beginning and ending balance of the liabilities, consisting only of contingent consideration, measured at fair value, using significant unobservable inputs (Level 3) during the six months ended June 30, 2018. (in thousands) Balance at December 31, 2017 $ 12,274 Expense included in earnings 1,674 Settlements (1,257 ) Balance at June 30, 2018 $ 12,691

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2018
Inventories [Abstract]
Inventories	Inventories consisted of the following: June 30, December 31, (in thousands) 2018 2017 Raw materials and supplies $ 34,426 $ 36,069 Work-in-process 79,546 76,610 Finished goods 25,401 30,133 Total inventories $ 139,373 $ 142,812

Property, plant and equipment (

Property, plant and equipment (Tables)	6 Months Ended
	Jun. 30, 2018
Property, plant and equipment [Abstract]
Property, Plant and Equipment	Property, plant and equipment consisted of the following: June 30, December 31, (in thousands) 2018 2017 Land and improvements $ 21,848 $ 21,843 Buildings, building improvements and leasehold improvements 159,264 160,005 Furniture and equipment 213,445 206,819 Software 52,343 50,829 Construction-in-progress 124,832 100,088 Property, plant and equipment, gross 571,732 539,584 Less: Accumulated depreciation and amortization (152,575 ) (132,374 ) Total property, plant and equipment, net $ 419,157 $ 407,210

Earnings per share (Tables)

Earnings per share (Tables)	6 Months Ended
	Jun. 30, 2018
Earnings per share [Abstract]
Basic and Diluted Net Income per Share	The following table presents the calculation of basic and diluted net income per share: Three Months Ended June 30, Six Months Ended June 30, (in thousands, except share and per share data) 2018 2017 2018 2017 Numerator: Net income $ 50,144 $ 4,616 $ 45,236 $ 15,101 Interest expense on convertible debt, net of tax - 835 - 1,742 Amortization of convertible debt issuance costs, net of tax - 195 - 391 Net income, adjusted $ 50,144 $ 5,646 $ 45,236 $ 17,234 Denominator: Weighted-average number of shares—basic 49,896,124 41,013,764 49,738,980 40,871,540 Dilutive securities—equity awards 1,266,785 968,354 1,300,215 931,263 Dilutive securities—convertible debt - 8,096,476 - 8,096,488 Weighted-average number of shares—diluted 51,162,909 50,078,594 51,039,195 49,899,291 Net income per share - basic $ 1.00 $ 0.11 $ 0.91 $ 0.37 Net income per share - diluted $ 0.98 $ 0.11 $ 0.89 $ 0.35

Revenue Recognition (Details)

Revenue Recognition (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)PeriodSegment	Jun. 30, 2017USD ($)	Dec. 31, 2017USD ($)
Revenue [Abstract]
Transaction price	$ 630,000		$ 630,000
Number of additional option periods | Period			17
Contract revenue	220,200	$ 100,772	$ 338,014	$ 217,630
Number of operating segments | Segment			1
Contract with Customer, Asset and Liability [Abstract]
Accounts receivable	189,489		$ 189,489		$ 143,653
Deferred costs	3,400		3,400		2,900
Contract with Customer, Liability [Abstract]
Contract liability	73,005		73,005
Deferral of revenue			15,478
Recognition of revenue included in beginning of year contract liability			(15,343)
Contract liability	$ 73,005		$ 73,005
Accounting Standards Update 2014-09 [Member]
Contract with Customer, Liability [Abstract]
Contract liability					72,870
Contract liability					72,870
CIADM [Member]
Revenue [Abstract]
Term of contract			24 years
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member]
Contract with Customer, Liability [Abstract]
Contract liability					42,379
Contract liability					42,379
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | CIADM [Member] | Accounting Standards Update 2014-09 [Member]
Revenue [Abstract]
Retained earnings					32,500
Deferred tax assets					9,900
Contract with Customer, Liability [Abstract]
Contract liability					42,400
Contract liability					42,400
Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Contract with Customer, Liability [Abstract]
Contract liability					30,491
Contract liability					$ 30,491

Revenue Recognition, Disaggrega

Revenue Recognition, Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Disaggregation of revenue [Abstract]
Total revenues	$ 220,200	$ 100,772	$ 338,014	$ 217,630
U.S. Government [Member]
Disaggregation of revenue [Abstract]
Total revenues	185,147		265,977
Non-U.S. Government [Member]
Disaggregation of revenue [Abstract]
Total revenues	35,053		72,037
Product Sales [Member]
Disaggregation of revenue [Abstract]
Total revenues	180,075	63,610	255,846	145,579
Product Sales [Member] | U.S. Government [Member]
Disaggregation of revenue [Abstract]
Total revenues	169,897		235,922
Product Sales [Member] | Non-U.S. Government [Member]
Disaggregation of revenue [Abstract]
Total revenues	10,178		19,924
Contract Manufacturing [Member]
Disaggregation of revenue [Abstract]
Total revenues	23,613	16,160	49,791	33,788
Contract Manufacturing [Member] | U.S. Government [Member]
Disaggregation of revenue [Abstract]
Total revenues	0		0
Contract Manufacturing [Member] | Non-U.S. Government [Member]
Disaggregation of revenue [Abstract]
Total revenues	23,613		49,791
Contracts and Grants [Member]
Disaggregation of revenue [Abstract]
Total revenues	16,512	$ 21,002	32,377	$ 38,263
Contracts and Grants [Member] | U.S. Government [Member]
Disaggregation of revenue [Abstract]
Total revenues	15,250		30,055
Contracts and Grants [Member] | Non-U.S. Government [Member]
Disaggregation of revenue [Abstract]
Total revenues	$ 1,262		$ 2,322

Revenue Recognition, Performanc

Revenue Recognition, Performance Obligations (Details) $ in Millions	Jun. 30, 2018USD ($)
Performance Obligations [Abstract]
Performance obligations expected to be satisfied	$ 630
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-04-01
Performance Obligations [Abstract]
Revenue, remaining performance obligation, expected timing of satisfaction, period	24 months

Acquisitions (Details)

Acquisitions (Details) - USD ($) $ in Thousands	Oct. 06, 2017	Jun. 30, 2018	Dec. 31, 2017
Fair value of tangible assets acquired and liabilities assumed [Abstract]
Goodwill		$ 49,130	$ 49,130
Sanofi [Member]
Summary of total purchase price [Abstract]
Amount of cash paid to Sanofi	$ 117,500
Fair value of contingent purchase consideration	2,200
Total purchase price	119,700
Fair value of tangible assets acquired and liabilities assumed [Abstract]
Inventory	74,876
Property, plant and equipment	19,995
Total fair value of tangible assets acquired and liabilities assumed	94,871
Acquired intangible asset	16,700
Goodwill	8,129
Total purchase price	$ 119,700
ACAM2000 [Member]
Acquisitions [Abstract]
Term of contract under acquisition	10 years
Value of contract	$ 425,000
Amount for deliveries of product to the SNS	160,000
Upfront cash payment	97,500
Amount of payment for manufacturing related milestones	20,000
Amount of payment for regulatory related milestones	$ 7,500		$ 7,500
Fair value of tangible assets acquired and liabilities assumed [Abstract]
Amortization period of intangible asset	10 years
ACAM2000 [Member] | Discount Rate [Member]
Fair value of tangible assets acquired and liabilities assumed [Abstract]
Present value discount rate	15.50%

Fair value measurements (Detail

Fair value measurements (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Unobservable Input Reconciliation [Roll Forward]
Balance, beginning of period			$ 12,274
Expense included in earnings			1,674
Settlements			(1,257)
Balance, end of period	$ 12,691		12,691
RSDL [Member]
Unobservable Input Reconciliation [Roll Forward]
Change in fair value of contingent obligations	$ 700	$ 200	$ 1,600	$ 500

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Inventories [Abstract]
Raw materials and supplies	$ 34,426	$ 36,069
Work-in-process	79,546	76,610
Finished goods	25,401	30,133
Total inventories	$ 139,373	$ 142,812

Property, plant and equipment35

Property, plant and equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Property, plant and equipment [Abstract]
Property, plant and equipment, gross	$ 571,732	$ 539,584
Less: Accumulated depreciation and amortization	(152,575)	(132,374)
Total Property, plant and equipment, net	419,157	407,210
Land and Improvements [Member]
Property, plant and equipment [Abstract]
Property, plant and equipment, gross	21,848	21,843
Buildings, Building Improvements and Leasehold Improvements [Member]
Property, plant and equipment [Abstract]
Property, plant and equipment, gross	159,264	160,005
Furniture and Equipment [Member]
Property, plant and equipment [Abstract]
Property, plant and equipment, gross	213,445	206,819
Software [Member]
Property, plant and equipment [Abstract]
Property, plant and equipment, gross	52,343	50,829
Construction-In-Progress [Member]
Property, plant and equipment [Abstract]
Property, plant and equipment, gross	$ 124,832	$ 100,088

Intangible assets (Details)

Intangible assets (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Intangible assets [Abstract]
Amortization	$ 3.9	$ 1.6	$ 7.8	$ 3.1
Weighted average amortization period			8 years 3 months 18 days

Equity (Details)

Equity (Details) - 2006 Plan [Member] shares in Millions	May 24, 2018shares	Jun. 30, 2018Installmentshares
Stock issued or granted during period [Abstract]
Number of installments | Installment		3
Increase in number of shares issuable under the plan (in shares)	3
Total number of shares issuable under the plan (in shares)	21.9
Extended plan term date	May 23, 2028
Stock Options [Member]
Stock issued or granted during period [Abstract]
Stock options granted (in shares)		0.4
Restricted Stock Units [Member]
Stock issued or granted during period [Abstract]
Restricted stock units granted (in shares)		0.4

Income taxes (Details)

Income taxes (Details) - USD ($) $ in Millions	6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Income taxes [Abstract]
Effective annual tax rate	25.00%	31.00%
Federal corporate tax rate	21.00%		35.00%
Discrete tax benefit associated with equity activity	$ 3.2	$ 1.1

Purchase commitments (Details)

Purchase commitments (Details) $ in Millions	Jun. 30, 2018USD ($)
Purchase commitments [Abstract]
Total purchase commitment to Norwood Laboratories Inc.	$ 12

Earnings per share (Details)

Earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Numerator [Abstract]
Net Income		$ 50,144	$ 4,616	$ 45,236	$ 15,101
Interest expense, net of tax		0	835	0	1,742
Amortization of debt issuance costs, net of tax		0	195	0	391
Net income, adjusted		$ 50,144	$ 5,646	$ 45,236	$ 17,234
Denominator [Abstract]
Weighted-average number of shares-basic (in shares)		49,896,124	41,013,764	49,738,980	40,871,540
Dilutive securities-equity awards (in shares)		1,266,785	968,354	1,300,215	931,263
Dilutive securities-convertible debt (in shares)		0	8,096,476	0	8,096,488
Weighted-average number of shares-diluted (in shares)		51,162,909	50,078,594	51,039,195	49,899,291
Net income per share-basic (in dollars per share)		$ 1	$ 0.11	$ 0.91	$ 0.37
Net income per share-diluted (in dollars per share)	[1]	$ 0.98	$ 0.11	$ 0.89	$ 0.35
Stock Options [Member]
Antidilutive shares excluded from computation of earnings per share [Abstract]
Antidilutive shares excluded from calculation (in shares)			400,000		400,000
Convertible debt [Member]
Antidilutive shares excluded from computation of earnings per share [Abstract]
Interest rate percentage			2.875%		2.875%
[1]	See "Earnings per share" footnote for details on calculation.