Heartware International (HTWR) Inactive 10-Q1 May 152015 Q1 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
Document and Entity Information	Mar. 31, 2015	Apr. 30, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	FALSE
Document Period End Date	31-Mar-15
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Trading Symbol	htwr
Entity Registrant Name	HeartWare International, Inc.
Entity Central Index Key	1389072
Current Fiscal Year End Date	-19
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		17,246,146

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$102,525	$102,946
Short-term investments	70,354	75,535
Accounts receivable, net	36,566	38,041
Inventories	52,356	54,046
Prepaid expenses and other current assets	7,259	5,975
Total current assets	269,060	276,543
Property, plant and equipment, net	17,020	19,036
Goodwill	61,223	61,390
In-process research and development	32,850	32,850
Other intangible assets, net	17,785	17,807
Deferred financing costs, net	1,441	1,552
Long-term investments and other assets	14,341	14,635
Total assets	413,720	423,813
Current liabilities:
Accounts payable	10,674	13,322
Other accrued liabilities	33,671	36,589
Total current liabilities	44,345	49,911
Convertible senior notes, net	116,871	114,803
Contingent liabilities - See Note 4	45,840	43,740
Other long-term liabilities	6,698	6,825
Commitments and contingencies - See Note 12
Stockholders' equity:
Preferred stock - $.001 par value; 5,000 shares authorized; no shares issued and outstanding at March 31, 2015 and December 31, 2014
Common stock - $.001 par value; 25,000 shares authorized; 17,245 and 17,156 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively	17	17
Additional paid-in capital	571,616	565,609
Accumulated deficit	-363,254	-348,719
Accumulated other comprehensive loss:
Cumulative translation adjustments	-8,272	-8,112
Unrealized loss on investments	-141	-261
Total accumulated other comprehensive loss	-8,413	-8,373
Total stockholders' equity	199,966	208,534
Total liabilities and stockholders' equity	$413,720	$423,813

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Preferred stock, par value	$0.00	$0.00
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$0.00	$0.00
Common stock, shares authorized	25,000,000	25,000,000
Common stock, shares issued	17,245,000	17,156,000
Common stock, shares outstanding	17,245,000	17,156,000

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Income Statement [Abstract]
Revenue, net	$70,021	$66,472
Cost of revenue	22,040	22,915
Gross profit	47,981	43,557
Operating expenses:
Selling, general and administrative	21,929	24,232
Research and development	31,267	32,590
Change in fair value of contingent consideration	2,100	3,140
Total operating expenses	55,296	59,962
Loss from operations	-7,315	-16,405
Other income (expense):
Foreign exchange (loss) gain	-3,697	173
Interest expense	-3,437	-3,196
Investment income, net	146	207
Other, net	0	0
Loss before income taxes	-14,303	-19,221
Provision for income taxes	232	223
Net loss	($14,535)	($19,444)
Net loss per common share - basic and diluted	($0.85)	($1.15)
Weighted average shares outstanding - basic and diluted	17,193	16,934

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Statement of Comprehensive Income [Abstract]
Net loss	($14,535)	($19,444)
Other comprehensive income (loss)
Foreign currency translation adjustments	-254	-240
Unrealized (loss) gain on investments	-245	33
Comprehensive loss	($15,034)	($19,651)

Condensed_Consolidated_Stateme2

Condensed Consolidated Statement of Stockholders' Equity (Unaudited) (USD $)	Total	Common Shares [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Loss [Member]
In Thousands	Total	Common Shares [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Loss [Member]
Beginning balance at Dec. 31, 2014	$208,534	$17	$565,609	($348,719)	($8,373)
Beginning balance, Shares at Dec. 31, 2014		17,156
Issuance of common stock pursuant to share-based awards	31		31
Issuance of common stock pursuant to share-based awards, Shares		89
Share-based compensation	5,976		5,976
Net loss	-14,535			-14,535
Other comprehensive loss	-40				-40
Ending balance at Mar. 31, 2015	$199,966	$17	$571,616	($363,254)	($8,413)
Ending balance, Shares at Mar. 31, 2015		17,245

Condensed_Consolidated_Stateme3

Condensed Consolidated Statement of Stockholders' Equity (Unaudited) (Parenthetical) (USD $)	Mar. 31, 2015
Common Shares, par value	$0.00
Common Shares [Member]
Common Shares, par value	$0.00

Condensed_Consolidated_Stateme4

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	($14,535)	($19,444)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation of property, plant and equipment	1,710	1,580
Amortization of intangible assets	508	400
Impairment of fixed assets	1,118	607
Share-based compensation expense	5,976	4,357
Amortization of premium on investments	300	196
Amortization of discount on convertible senior notes	2,068	1,834
Amortization of deferred financing costs	111	99
Change in fair value of contingent consideration	2,100	3,140
Other	-6	32
Change in operating assets and liabilities:
Accounts receivable	-105	-13,273
Inventories	-436	-3,411
Prepaid expenses and other current assets	-1,445	954
Accounts payable	-2,625	-2,806
Accrued interest on convertible senior notes	1,258	1,258
Other accrued liabilities	-3,662	7,246
Other long-term liabilities	-124	-81
Net cash used in operating activities	-7,789	-17,312
CASH FLOWS FROM INVESTING ACTIVITIES
Maturities of investments	5,000	3,245
Additions to property, plant and equipment, net	-720	-3,039
Additions to patents	-486	-279
Cash received from security deposits	294
Net cash provided by (used in) investing activities	4,088	-73
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from exercise of stock options	31	370
Net cash provided by financing activities	31	370
Effect of exchange rate changes on cash and cash equivalents	3,249	-277
DECREASE IN CASH AND CASH EQUIVALENTS	-421	-17,292
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD	102,946	162,880
CASH AND CASH EQUIVALENTS - END OF PERIOD	$102,525	$145,588

Basis_of_Presentation

Basis of Presentation	3 Months Ended
Basis of Presentation	Mar. 31, 2015
Accounting Policies [Abstract]
Basis of Presentation	Note 1. Basis of Presentation
	The accompanying unaudited interim condensed consolidated financial statements for HeartWare International, Inc. (“we,” “our,” “us,” “HeartWare,” the “HeartWare Group” or the “Company”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for reporting of interim financial information. Pursuant to these rules and regulations, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted. Accordingly, these statements do not include all the disclosures normally required by U.S. GAAP for annual financial statements and should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in this report and the audited financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014. The accompanying condensed consolidated balance sheet as of December 31, 2014 has been derived from our audited financial statements. The unaudited condensed consolidated statements of operations and cash flows for the three months ended March 31, 2015 are not necessarily indicative of the results to be expected for any future period or for the year ending December 31, 2015.
	The preparation of our unaudited interim condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates.
	In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements contain all adjustments (consisting of only normally recurring adjustments) necessary to present fairly the financial position and results of operations as of the dates and for the periods presented.
	New Accounting Standards
	In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). The updated standard is a new comprehensive revenue recognition model that requires revenue to be recognized in a manner that depicts the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and early adoption is not permitted. The updated standard becomes effective for us in the first quarter of our fiscal year ending December 31, 2017. We have not yet selected a transition method, and we are currently evaluating the effect that the ASU 2014-09 will have on our consolidated financial statements and related disclosures. In April 2015, the FASB issued for public comment a proposed update that would defer the effective date of ASU 2014-09 by one year. If the one-year deferral is adopted, ASU 2014-09 would become effective for us in the first quarter of our fiscal year ending December 31, 2018.
	In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis, which is intended to improve targeted areas of consolidation guidance for legal entities such as limited partnerships, limited liability corporations, and securitization structures (collateralized debt obligations, collateralized loan obligations, and mortgage-backed security transactions). This ASU focuses on the consolidation evaluation for reporting organizations (public and private companies and not-for-profit organizations) that are required to evaluate whether they should consolidate certain legal entities. In addition to reducing the number of consolidation models from four to two, the new standard simplifies the FASB Accounting Standards Codification by: i) placing more emphasis on risk of loss when determining a controlling financial interest; ii) reducing the frequency of the application of related-party guidance when determining a controlling financial interest in a variable interest entity (“VIE”); and iii) changing consolidation conclusions for public and private companies in several industries that typically make use of limited partnerships or VIEs. ASU No. 2015-02 will be effective for us in periods beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. The adoption of ASU No. 2015-02 is not expected to have a material effect on our consolidated financial position, results of operations or cash flows.
	In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The updated standard requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU 2015-03 will be effective for us in periods beginning after December 15, 2015. Early adoption is permitted
	for financial statements that have not been previously issued. ASU 2015-03 should be applied on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. The adoption of ASU No. 2015-03 will result in the reclassification of debt issuance costs currently classified in long-term assets to be offset against the carrying value of our convertible notes. Based on the amount of debt issuance costs included in long-term assets as of March 31, 2015, the adoption of ASU 2015-03 is not expected to have a material effect on our consolidated financial position, results of operations or cash flows.

Liquidity

Liquidity	3 Months Ended
Liquidity	Mar. 31, 2015
Text Block [Abstract]
Liquidity	Note 2. Liquidity
	We have funded our operations primarily through product revenue, the issuance of shares of our common stock and the issuance of convertible notes. At March 31, 2015, we had approximately $174.1 million of cash, cash equivalents and available-for-sale investments. Our cash, cash equivalents and available-for-sale investments are expected to be used primarily to fund our ongoing operations including expanding our sales and marketing capabilities on a global basis, research and development (including clinical trials) of new and existing products, components and accessories, regulatory and other compliance functions, acquisition of and investment in third-party technologies as well as for general working capital. We believe our cash, cash equivalents and available-for-sale investment balances are sufficient to support our planned operations for at least the next twelve months.
	The accompanying unaudited interim condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States, which contemplate continuation of the Company as a going concern. We have incurred substantial losses from operations since our inception, and losses have continued through March 31, 2015. At March 31, 2015, we had an accumulated deficit of approximately $363.3 million.

Balance_Sheet_Information

Balance Sheet Information	3 Months Ended
Balance Sheet Information	Mar. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Balance Sheet Information	Note 3. Balance Sheet Information
	Accounts Receivable
	Accounts receivable consists of amounts due from the sale of our HeartWare® Ventricular Assist System (the “HVAD System”) to our customers, which include hospitals, health research institutions and medical device distributors. We grant credit to customers in the normal course of business, but generally do not require collateral or any other security to support credit sales. Our receivables are geographically dispersed, with a significant portion from customers located in Europe and other foreign countries. No customer had an accounts receivable balance greater than 10% of total accounts receivable at March 31, 2015 or December 31, 2014.
	We maintain allowances for doubtful accounts for estimated losses that may result from an inability to collect payments owed to us for product sales. We regularly review the allowance by considering factors such as historical experience, the age of the accounts receivable balances and local economic conditions that may affect a customer’s ability to pay. Account balances are charged off against the allowance after appropriate collection efforts have been exhausted and we feel it is probable that the receivable will not be recovered.
	The following table summarizes the change in our allowance for doubtful accounts for the three months ended March 31, 2015 and 2014:


			2015				2014
			(in thousands)
	Beginning balance		$	671			$	495
	Reversal of expense			(26	)			—
	Charge-offs			—				—

	Ending balance		$	645			$	495

	As of March 31, 2015 and December 31, 2014, we did not have an allowance for returns.

	Inventories
	Components of inventories are as follows:


			March 31,				December 31,
			2015				2014
			(in thousands)
	Raw material		$	28,773			$	28,688
	Work-in-process			10,032				10,240
	Finished goods			13,551				15,118

			$	52,356			$	54,046

	Finished goods inventories includes inventory held on consignment at customer sites of approximately $5.7 million at March 31, 2015 and $5.8 million at December 31, 2014.
	Property, Plant and Equipment, Net
	Property, plant and equipment, net consists of the following:


			Estimated		March 31,				December 31,
			Useful Lives		2015				2014
					(in thousands)
	Machinery and equipment		1.5 to 7 years		$	20,504			$	21,279
	Leasehold improvements		3 to 10 years			8,917				9,070
	Office equipment, furniture and fixtures		5 to 7 years			2,014				2,206
	Purchased software		1 to 7 years			6,694				6,474

						38,129				39,029
	Less: accumulated depreciation					(21,109	)			(19,993	)

					$	17,020			$	19,036

	In the first quarter of 2015, we ceased activities at our facility in Aachen, Germany. We recorded an impairment charge of $1.1 million related to leasehold improvements and equipment at the facility upon their discontinued use. This amount is included in research and development expenses on our condensed consolidated statements of operations.
	In the first quarter of 2014, we ceased activities at our facility in Teaneck, New Jersey and vacated the facility. We recorded an impairment charge of $0.6 million related to office equipment and software at the facility upon their discontinued use. This amount is included in selling, general and administrative expenses on our condensed consolidated statements of operations.
	Long-Term Investment
	In October 2013, we invested $10 million in an early-stage, privately-held company focused on the development of novel, minimally invasive heart therapies in the form of a convertible promissory note with an interest rate of 6% per annum (the “Note”). Pursuant to the terms of the Note, on October 7, 2014 (the maturity date), the privately held company elected to convert all unpaid principal and interest on the Note (less applicable taxes) into shares of its preferred stock. This investment is carried at cost and is included in long-term investments and other assets on our condensed consolidated balance sheets. The carrying value of this investment was $10.5 million at March 31, 2015 and December 31, 2014.
	The fair value of this investment has not been estimated as of March 31, 2015 and December 31, 2014. As of March 31, 2015, the investee company had limited liquidity and is in the process of raising additional capital to continue its operations. However, there can be no assurance this effort will be successful or that the investee company will be able to raise a sufficient amount of capital to conduct their operations at a level that would allow for commercial development of their products. We considered determination of the fair value of this investment to be impracticable as it represents an equity interest in an early-stage, privately-held company. We believe there have been no significant events or changes in circumstances that may have a significant adverse effect on the fair value of the investment. Events may occur or information may become available, including the inability of the investee company to raise sufficient additional capital, that could require us to write-off all or a portion of this asset, which could have a material adverse effect on our consolidated results of operations.

	Other Accrued Liabilities
	Other accrued liabilities consist of the following:


			March 31,				December 31,
			2015				2014
			(in thousands)
	Accrued payroll and other employee costs		$	9,578			$	13,404
	Accrued material purchases			4,251				4,284
	Accrued warranty			4,815				4,685
Accrued research and development costs			2,772				2,663
Other accrued expenses			12,255				11,553

		$	33,671			$	36,589

Accrued payroll and other employee costs
Accrued payroll and other employee costs included estimated year-end employee bonuses of approximately $2.4 million and $7.9 million at March 31, 2015 and December 31, 2014, respectively.
Accrued Warranty
Certain patient accessories sold with the HVAD System are covered by a limited warranty ranging from one to two years. Estimated contractual warranty obligations are recorded as an expense when the related revenue is recognized and are included in cost of revenue on our condensed consolidated statements of operations. Factors that affect the estimated warranty liability include the number of units sold, historical and anticipated rates of warranty claims, cost per claim, and vendor-supported warranty programs. We periodically assess the adequacy of our recorded warranty liabilities and adjust the amounts as necessary. The amount of the liability recorded is equal to the estimated costs to repair or otherwise satisfy claims made by customers.
The following table summarizes the change in our warranty liability for the three months ended March 31, 2015 and 2014:


		2015				2014
		(in thousands)
Beginning balance		$	4,685			$	2,498
Accrual for warranty expense			785				2,105
Warranty costs incurred during the period			(655	)			(341	)

Ending balance		$	4,815			$	4,262

The accrual for warranty expense in the three months ended March 31, 2014 reflected an anticipated increase in battery returns as a result of a field safety corrective action in April 2014, following an observed increase in complaints related to earlier-than-expected battery depletion and routine battery handling. The Company provided information to assist patients and clinicians to monitor battery performance, recognize abnormal behaviors and reinforce proper power management of the HVAD System. We increased our warranty liability as of March 31, 2014 to account for an anticipated higher level of battery returns likely to be associated with increased battery performance awareness.

Accrued Product Recall Costs
The costs to repair or replace products associated with product recalls and voluntary service campaigns are recorded when they are determined to be probable and reasonably estimable as a cost of revenue and are not included in our warranty liability. No such costs were incurred in the three months ended March 31, 2014. The following table summarizes the change in product recall liability for the three months ended March 31, 2015:


		2015
		(in thousands)
Beginning balance		$	1,888
Accrual for recall costs			505
Recall costs incurred during the period			(1,305	)

Ending balance		$	1,088

As noted above, in April 2014, we implemented a field action following an observed increase in complaints related to earlier-than-expected battery depletion and routine battery handling. On July 30, 2014, we extended the field action to include a voluntary recall of certain older batteries. The recall instructs sites to replace certain older batteries in the field upon patients’ routine visits in order to further mitigate the potential risks associated with premature battery depletion. This recall was ongoing as of March 31, 2015.
In February 2015, we expanded a 2013 voluntary field safety corrective action, by initiating a voluntary medical device recall of certain older controllers distributed in the U.S. during the ADVANCE and ENDURANCE clinical trial periods. The action had been initiated in certain foreign markets around the end of 2014. The affected controllers exhibit a higher susceptibility to electrostatic discharge than newer, commercial controllers. This recall was ongoing as of March 31, 2015.
Accrued Restructuring Costs
The following table summarizes changes in our accrued restructuring costs for the three months ended March 31, 2015:


		Facility Leases				Severance and				Contract		Total
		Facility Leases				Related				Termination		Total
		(in thousands)
Beginning balance		$	1,266			$	—			$	—	$	1,266
Restructuring charges			139				598				310		1,047
Payments			(191	)			(217	)			—		(408	)
Adjustments to estimated obligations			456				—				—		456
Change in fair value			11				—				—		11

Ending balance		$	1,681			$	381			$	310	$	2,372

The restructuring obligations reflected above resulted from the following actions:
Facility Closures
In the three months ended March 31, 2015, we ceased activities at our facility in Aachen, Germany, which is subject to an operating lease that runs through October 2017. In connection with this action, we recorded a $0.1 million liability equal to the lease termination payment that has been negotiated with the landlord. This amount is included in research and development expenses on our condensed consolidated statements of operations.
In the three months ended March 31, 2014, we ceased the use of CircuLite’s former headquarters in Teaneck, New Jersey, which is subject to an operating lease that runs through the end of 2020. In connection with this action, we recorded a $1.7 million liability equal to the estimated fair value of the remaining lease obligation as of the cease-use date. In the three months ended March 31, 2015, this liability was increased by $0.5 million as a result of a change in our estimated sublease start date (see Note 6). These amounts are included in selling, general and administrative expenses on our condensed consolidated statements of operations.
In the three months ended March 31, 2014, we also relocated our corporate headquarters and ceased activities at our former headquarters in Framingham, Massachusetts. In connection with this action, we recorded a $0.5 million liability equal to the aggregate of the remaining payments on the lease for our former headquarters as of the cease-use date. This amount is included in selling, general and administrative expenses on our condensed consolidated statements of operations.

Severance Agreements
In the three months ended March 31, 2015, we incurred severance costs aggregating $0.6 million in connection with our decision to cease activities at our facility in Aachen, Germany. This amount is included in research and development expenses on our condensed consolidated statements of operations.
In the three months ended March 31, 2014, we incurred various costs related to the integration of CircuLite’s operations, including severance costs aggregating $0.6 million. We recorded $0.4 million in research and development expenses and the remaining $0.2 million in selling, general and administrative expenses on our condensed consolidated statements of operations.
Contract Termination
As a result of our decision to cease activities at our facility in Aachen, Germany, we terminated supply agreements with vendors for the purchase of supplies. In connection with the termination of these supply agreements, we recorded a charge of $0.3 million in the three months ended March 31, 2015, which is included in research and development expenses on our condensed consolidated statements of operations.
As a result of design modifications to the SYNERGY System and our decision to move manufacturing of the SYNERGY System to our Miami Lakes facility, we terminated a supply agreement with a vendor in Germany for the purchase of components necessary to produce the prior version of the SYNERGY System. In connection with the termination of this supply agreement, we recorded a charge of $0.7 million in the three months ended March 31, 2014, which is included in research and development expenses on our consolidated statements of operations.

Fair_Value_Measurements

Fair Value Measurements	3 Months Ended
Fair Value Measurements	Mar. 31, 2015
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 4. Fair Value Measurements
	FASB ASC 820 – Fair Value Measurements and Disclosures, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. FASB ASC 820 requires disclosures about the fair value of all financial instruments, whether or not recognized, for financial statement purposes. Disclosures about the fair value of financial instruments are based on pertinent information available to us as of the reporting dates. Accordingly, the estimates presented in the accompanying condensed consolidated financial statements are not necessarily indicative of the amounts that could be realized on disposition of the financial instruments.
	FASB ASC 820 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement).
	The three levels of the fair value hierarchy are as follows:
	Level 1 – Quoted prices for identical instruments in active markets.
	Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.
	Level 3 – Instruments with primarily unobservable value drivers.
	We review the fair value hierarchy classification on a quarterly basis. Changes in the ability to observe valuation inputs may result in a reclassification of levels of certain securities within the fair value hierarchy. There were no transfers between Level 1, Level 2, and Level 3 during the three months ended March 31, 2015 or 2014.

	The carrying amounts reported on our condensed consolidated balance sheets for cash and cash equivalents, accounts receivable, accounts payable and other accrued liabilities approximate their fair value based on the short-term maturity of these instruments. Investments are considered available-for-sale as of March 31, 2015 and December 31, 2014 and are carried at fair value.
	The following tables represent the fair value of our financial assets and financial liabilities measured at fair value on a recurring basis and which level was used in the fair value hierarchy at the respective dates.


										Fair Value Measurements at the Reporting Date Using
			Carrying				Fair
			Value				Value			Level 1		Level 2		Level 3
			(in thousands)
	As of March 31, 2015
	Assets
	Short-term investments		$	70,354			$	70,354		$	—	$	70,354	$	—
	Long-term investments			1,225				1,225			—		1,225		—

	Liabilities
	Convertible senior notes			116,871	(1)			164,079			—		164,079		—
	Contingent consideration			45,840				45,840			—		—		45,840
	Royalties			971				971			—		—		971
	Lease exit costs			1,500				1,500			—		—		1,500


										Fair Value Measurements at the Reporting Date Using
			Carrying				Fair
			Value				Value			Level 1		Level 2		Level 3
			(in thousands)
	As of December 31, 2014
	Assets
	Short-term investments		$	75,535			$	75,535		$	—	$	75,535	$	—
	Long-term investments			1,225				1,225			—		1,225		—

	Liabilities
	Convertible senior notes			114,803	(1)			153,978			—		153,978		—
	Contingent consideration			43,740				43,740			—		—		43,740
	Royalties			962				962			—		—		962
	Lease exit costs			1,207				1,207			—		—		1,207

	-1	The carrying amount of our convertible senior notes is net of unamortized discount. See Note 7 (Debt) for more information.
	Our Level 2 financial assets and liabilities include available-for-sale investments and our convertible senior notes. The fair value of our available-for-sale investments and out convertible senior notes was determined using quoted prices (including trade data) for the instruments in markets that are not active. The fair value of our convertible senior notes is presented for disclosure purposes only.
	Financial assets and liabilities are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies, or similar techniques, and at least one significant model assumption or input is unobservable. Our Level 3 financial liabilities include the following:

		•		Contingent consideration – Determining the fair value of the contingent consideration related to our acquisition of CircuLite in December 2013 requires significant management judgment or estimation. The estimated fair value is calculated using the income approach, with significant inputs that include various revenue assumptions, discount rates and applying a probability to each outcome. Material changes in any of these inputs could result in a significantly higher or lower fair value measurement. The fair value of the contingent consideration is remeasured at the estimated fair value at each reporting period. Actual amounts paid may differ from the obligations recorded.

		•		Royalties – Royalties represent future royalty payments to be made over the next 14 years pursuant to agreements related to intellectual property licensed or acquired by World Heart Corporation, which we acquired in August 2012. Determination of fair value requires significant management judgment or estimation. The royalty payment obligations were valued using a discounted cash flow model, the future minimum royalty payment amounts and discount rates commensurate with our market risk and the terms of the obligations.

		•		Lease exit costs – In the first quarter of 2014 we ceased the use of CircuLite’s former headquarters in Teaneck, New Jersey, which was subject to an operating lease that runs through the end of 2020, and we recorded a liability equal to the estimated fair value of the remaining lease payments as of the cease-use date. The fair value was estimated based upon the discounted present value of the remaining lease payments, considering future estimated sublease income, estimated broker fees and required tenant improvements. This estimated fair value requires management judgment. The fair value of this liability will be remeasured at estimated fair value at each reporting period. Actual amounts paid may differ from the obligation recorded.
	The following table summarizes the change in fair value, as determined by Level 3 inputs, of the contingent consideration for the three months ended March 31, 2015:


			Contingent
			Consideration
			(in thousands)

	Beginning balance		$	43,740
	Payments			—
	Change in fair value			2,100

Ending balance		$	45,840

The change in the fair value of the contingent consideration in the three months ended March 31, 2015 was due to accretion of the liability due to the effect of the passage of time on the fair value measurement. Adjustments associated with the change in fair value of contingent consideration are presented on a separate line item on our condensed consolidated statements of operations. Potential valuation adjustments will be made in future accounting periods as additional information becomes available, including, among other items, progress toward developing the SYNERGY System, as well as revenue and milestone targets as compared to our current projections, with the impact of these adjustments being recorded in our condensed consolidated statements of operations.
The following table summarizes the change in fair value, as determined by Level 3 inputs, of the royalties for the three months ended March 31, 2015:


		Royalties
		(in thousands)

Beginning balance		$	962
Payments			(10	)
Change in fair value			19

Ending balance		$	971

The expense associated with the change in fair value of the royalty payment obligations is included in research and development expenses on our condensed consolidated statements of operations.

The following table summarizes the change in fair value, as determined by Level 3 inputs, of the lease exit costs for the three months ended March 31, 2015:


		Lease Exit
		Costs
		(in thousands)

Beginning balance		$	1,207
Adjustments			454
Payments			(172	)
Change in fair value			11

Ending balance		$	1,500

The expense associated with changes in the fair value of the lease exit costs is included in selling, general and administrative expenses on our consolidated statements of operations. The change in the fair value of the lease exit costs in the three months ended March 31, 2015 was primarily due to a change in our estimated sublease start date, which was deferred by eight months. Potential valuation adjustments will be made in future accounting periods as additional information becomes available, including, our ability to sublease the facility in a timely manner and obtain a rate equivalent to our estimated sublease rate, with the impact of these adjustments being recorded in our condensed consolidated statements of operations.
The following table presents quantitative information about the inputs and valuation methodologies used for our fair value measurements classified in Level 3 of the fair value hierarchy as of March 31, 2015:


		Valuation Methodology				Significant			Weighted Average
		Valuation Methodology				Unobservable Input			(range, if applicable)

Contingent consideration			Probability weighted income approach				Milestone dates		2019 to 2022
							Discount rate		17.0% to 24.0%
							Probability of occurrence		0% to 100%

Royalties			Discounted cash flow				Discount rate		4.8% to 7.8%

Lease exit costs			Discounted cash flow				Sublease start date		1-Jul-16
							Sublease rate		$26.50/square foot
							Discount rate		3.50%
Assets That Are Measured at Fair Value on a Nonrecurring Basis
Non-marketable equity investments and non-financial assets such as intangible assets, goodwill and property, plant, and equipment are evaluated for impairment annually or when indicators of impairment exist and are measured at fair value only if an impairment charge is recorded. In the three months ended March 31, 2015 and 2014, we recorded impairment charges of $1.1 million and $0.6 million related to certain property, plant, and equipment. See Note 3 for more information. Non-financial assets such as identified intangible assets acquired in connection with our acquisitions are measured at fair value using Level 3 inputs, which include discounted cash flow methodologies, or similar techniques, when there is limited market activity and the determination of fair value requires significant judgment or estimation.

Investments

Investments	3 Months Ended
Investments	Mar. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Investments	Note 5. Investments

	We have cash investment policies that limit investments to investment grade rated securities. At March 31, 2015 and December 31, 2014, all of our investments were classified as available-for-sale and carried at fair value. At March 31, 2015 and December 31, 2014, our short-term and long-term investments had maturity dates of less than twenty-four months.

	The amortized cost and fair value of our investments, with gross unrealized gains and losses, were as follows:



		Amortized		Gross		Gross			Aggregate
		Cost Basis		Unrealized		Unrealized			Fair Value
				Gains		Losses
		(in thousands)
	At March 31, 2015
	Short-term investments:
	Corporate debt	$	45,940	$	1	$	(136	)	$	45,805
	U.S. government agency debt		15,000		1		(7	)		14,994
	Certificates of deposit		9,555		—		—			9,555

	Total short-term investments	$	70,495	$	2	$	(143	)	$	70,354


	Long-term investments:
	Certificates of deposit	$	1,225	$	—	$	—		$	1,225

	Total long-term investments	$	1,225	$	—	$	—		$	1,225




		Amortized		Gross		Gross			Aggregate
		Cost Basis		Unrealized		Unrealized			Fair Value
				Gains		Losses
		(in thousands)
	At December 31, 2014
	Short-term investments:
	Corporate debt	$	51,241	$	8	$	(244	)	$	51,005
	U.S. government agency debt		15,000		—		(25	)		14,975
	Certificates of deposit		9,555		—		—			9,555

	Total short-term investments	$	75,796	$	8	$	(269	)	$	75,535


	Long-term investments:
	Certificates of deposit	$	1,225	$	—	$	—		$	1,225

	Total long-term investments	$	1,225	$	—	$	—		$	1,225


	For the three months ended March 31, 2015 and 2014, we did not have any realized gains or losses on our investments. At March 31, 2015 and December 31, 2014, none of our available-for-sale investments had been in a continuous loss position for more than twelve months. As of March 31, 2015, a total of 16 individual securities had been in an unrealized loss position for twelve months or less and the losses were determined to be temporary. We regularly review our investment portfolio to determine if any security is other-than-temporarily impaired, which would require us to record an impairment charge in the period any such determination is made. In making this judgment, we evaluate, among other things, the duration and extent to which the fair value of a security has been less than its amortized cost, the financial condition of the issuer, the time to maturity of the investment and our intent to sell the security prior to maturity where we would not be able to recover its amortized cost basis.

Goodwill_InProcess_Research_an

Goodwill, In-Process Research and Development and Other Intangible Assets, Net	3 Months Ended
	Mar. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill, In-Process Research and Development and Other Intangible Assets, Net	Note 6. Goodwill, In-Process Research and Development and Other Intangible Assets, Net
	Goodwill
	The carrying amount of goodwill and the change in the balance for the three months ended March 31, 2015 and 2014 is as follows:


		2015			2014
		(in thousands)
	Beginning balance	$	61,390		$	61,596
	Additions		—			—
	Impairment		—			—
	Foreign currency translation impact		(167	)		(2	)

	Ending balance	$	61,223		$	61,594

	In-Process Research and Development
	The carrying value of our in-process research and development assets, which relate to the development and potential commercialization of certain acquired technologies, consisted of the following at March 31, 2015 and December 31, 2014:


		March 31,			December 31,
		2015			2014
		(in thousands)
	SYNERGY System technology	$	32,850		$	32,850

	In-process research and development has an indefinite life. At the time the economic life becomes determinable (upon project completion or abandonment) the amount will be amortized over its expected remaining life.

	Other Intangible Assets
	Other intangible assets, net consisted of the following:


		March 31,			December 31,
		2015			2014
		(in thousands)
	Patents	$	5,796		$	5,310
	Purchased intangible assets
	Tradenames		3,700			3,700
	Customer relationships		1,800			1,800
	Acquired technology rights		9,925			9,925

			21,221			20,735
	Less: Accumulated amortization – Patents		(1,215	)		(1,118	)
	Less: Accumulated amortization – Purchased intangible assets		(2,221	)		(1,810	)

		$	17,785		$	17,807

	Our other intangible assets are amortized using the straight-line method over their estimated useful lives as follows:


	Patents		15 years
	Purchased intangible assets
	Tradenames		15 years
	Customer relationships		20 years
	Acquired technology rights		6 to 16 years
	Amortization expense for the three months ended March 31, 2015 and 2014 was $0.5 million and $0.4 million, respectively.

Debt

Debt	3 Months Ended
Debt	Mar. 31, 2015
Debt Disclosure [Abstract]
Debt	Note 7. Debt
	On December 15, 2010, we completed the sale of 3.5% convertible senior notes due 2017 (the “Convertible Notes”) for an aggregate principal amount of $143.75 million pursuant to the terms of an Indenture dated December 15, 2010 (the “Indenture”). The Convertible Notes are the senior unsecured obligations of the Company. The Convertible Notes bear interest at a rate of 3.5% per annum, payable semi-annually in arrears on June 15 and December 15 of each year. The Convertible Notes will mature on December 15, 2017, unless earlier repurchased by us or converted.
	The Convertible Notes offering was completed pursuant to a prospectus supplement, dated December 9, 2010, to a shelf registration statement on Form S-3 that was previously filed with the SEC and which was declared effective on December 9, 2010.
	The Convertible Notes will be convertible at an initial conversion rate of 10 shares of our common stock per $1,000 principal amount of Convertible Notes, which corresponds to an initial conversion price of $100.00 per share of our common stock. The conversion rate is subject to adjustment from time to time upon the occurrence of certain events.
	Prior to June 15, 2017, holders may convert their Convertible Notes at their option only upon satisfaction of one or more of the conditions specified in the Indenture relating to the (i) sale price of our common stock, (ii) the trading price per $1,000 principal amount of Convertible Notes or (iii) specified corporate events. As of the date of this report on Form 10-Q, none of the events that would allow holders to convert their Convertible Notes have occurred. On or after June 15, 2017, until the close of business of the business day immediately preceding the date the Convertible Notes mature, holders may convert their Convertible Notes at any time, regardless of whether any of the foregoing conditions have been met. Upon conversion, we will pay or deliver, as the case may be, cash, shares of our common stock or a combination thereof, at our election.

	We may not redeem the Convertible Notes prior to maturity. Holders of the Convertible Notes may require us to purchase for cash all or a part of their Convertible Notes at a repurchase price equal to 100% of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest, upon the occurrence of certain fundamental changes (as defined in the Indenture) involving the Company. The Indenture does not contain any financial or operating covenants or restrictions on the payment of dividends, the incurrence of indebtedness or the issuance or repurchase of securities by us or any of our subsidiaries.
	The Indenture contains customary terms and nonfinancial covenants and defines events of default. If an event of default (other than certain events of bankruptcy, insolvency or reorganization) involving the Company occurs and is continuing, the Trustee (by notice to the Company) or the holders of at least 25% in principal amount of the outstanding Convertible Notes (by notice to the Company and the Trustee) may declare 100% of the principal of and accrued and unpaid interest, if any, on all the Convertible Notes to be due and payable. In case of certain events of bankruptcy, insolvency or reorganization, involving the Company, 100% of the principal of and accrued and unpaid interest on the Convertible Notes will automatically become due and payable. Notwithstanding the foregoing, the Indenture provides that, to the extent we elect, the sole remedy for an event of default relating to certain failures by us to comply with certain reporting covenants in the Indenture consists exclusively of the right to receive additional interest on the Convertible Notes.
	In accordance with FASB ASC 470-20, Debt with Conversion and Other Options, which applies to certain convertible debt instruments that may be settled in cash or other assets, or partially in cash, upon conversion, we recorded the long-term debt and equity components on our Convertible Notes separately on the issuance date. The amount recorded for long-term debt was determined by measuring the fair value of a similar liability that does not have an associated equity component. The measurement of fair value required the Company to make estimates and assumptions to determine the present value of the cash flows of the Convertible Notes, absent the conversion feature. This treatment increased interest expense associated with our Convertible Notes by adding a non-cash component to interest expense in the form of amortization of a debt discount calculated based on the difference between the 3.5% cash coupon rate and the effective interest rate on debt borrowing of approximately 12.5%. The discount is being amortized to interest expense through the December 15, 2017 maturity date of the Convertible Notes using the effective interest method and is included in interest expense on our condensed consolidated statements of operations. Additionally, we allocated the costs related to issuance of the Convertible Notes on the same percentage as the long-term debt and equity components, such that a portion of the costs is allocated to the long-term debt component and the equity component included in additional paid-in capital. The portion of the costs allocated to the long-term debt component is presented as deferred financing costs, net on our condensed consolidated balance sheets. These deferred financing costs are also being amortized to interest expense through the December 15, 2017 maturity date of the Convertible Notes using the effective interest method and the amortization is included in interest expense on our condensed consolidated statements of operations.
	The Convertible Notes and the equity component, which is recorded in additional paid-in-capital, consisted of the following:


		March 31,			December 31,
		2015			2014
		(in thousands)
	Principal amount	$	143,750		$	143,750
	Unamortized discount		(26,879	)		(28,947	)

	Net carrying amount	$	116,871		$	114,803

	Equity component	$	55,038		$	55,038

	Based on the initial conversion rate of 10 shares of our common stock per $1,000 principal amount of Convertible Notes, which corresponds to an initial conversion price of $100.00 per share of our common stock, the number of shares issuable upon conversion of the Convertible Notes is 1,437,500. The value of these shares, based on the closing price of our common stock on March 31, 2015 of $87.77 per share, was approximately $126.2 million. The fair value of our Convertible Notes as presented in Note 4 was $164.1 million at March 31, 2015.

	Interest expense related to the Convertible Notes consisted of interest due on the principal amount, amortization of the discount and amortization of the portion of the deferred financing costs allocated to the long-term debt component. For the three months ended March 31, 2015 and 2014, interest expense related to the Convertible Notes was as follows:


		Three Months Ended
		March 31
		2015			2014
		(in thousands)
	Stated amount at 3.5% coupon rate	$	1,258		$	1,258
	Amortization of discount		2,068			1,834
	Amortization of deferred financing costs		111			99

		$	3,437		$	3,191

Stockholders_Equity

Stockholders' Equity	3 Months Ended
Stockholders' Equity	Mar. 31, 2015
Equity [Abstract]
Stockholders' Equity	Note 8. Stockholders’ Equity
	On January 30, 2014, we filed a shelf registration statement with the SEC on Form S-3. This shelf registration statement allows us to offer and sell from time to time, in one or more series or issuances and on terms that we will determine at the time of the offering any combination and amount of the securities described in the prospectus contained in the registration statement or in the prospectus supplement filed with respect to a particular offering. An aggregate of 530,816 shares of our common stock were registered for issuance pursuant to various prospectus filings on January 30, 2014 in connection with our acquisition of CircuLite. As of March 31, 2015, there remained 248,872 shares of our common stock reserved for potential issuance in connection with future contingent milestone payments under the terms of the merger agreement.
	Following satisfaction of a pre-specified milestone in December 2013, we were obligated to pay $5.0 million in cash or stock under the terms of a patent assignment agreement and exclusive license to certain patent applications. We issued an aggregate of 50,330 registered shares of our common stock in January 2014 to settle this liability.
	In the three months ended March 31, 2015, we issued an aggregate of 1,429 shares of our common stock upon the exercise of stock options and an aggregate of 88,184 shares of our common stock upon the vesting of restricted stock units.
	In the three months ended March 31, 2014, we issued an aggregate of 16,964 shares of our common stock upon the exercise of stock options and an aggregate of 29,999 shares of our common stock upon the vesting of restricted stock units.

ShareBased_Compensation

Share-Based Compensation

3 Months Ended

Mar. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Compensation

Note 9. Share-Based Compensation

We allocate share-based compensation expense to cost of revenue, selling, general and administrative expense and research and development expense based on the award holder’s employment function. For the three months ended March 31, 2015 and 2014, we recorded share-based compensation expense as follows:

Three Months Ended

March 31,

2015

2014

(in thousands)

Cost of revenue

438

447

Selling, general and administrative

3,449

2,732

Research and development

2,089

1,178

5,976

4,357

Deferred tax benefits attributed to our share-based compensation expense are not recognized in the accompanying condensed consolidated financial statements because we are in a net operating loss position and a full valuation allowance is maintained for all net deferred tax assets. We receive a tax deduction for certain stock option exercises during the period the options are exercised, and for the vesting of restricted stock units during the period the restricted stock units vest. For stock options, the amount of the tax deduction is generally for the excess of the fair market value of our shares of common stock over the exercise price of the stock options at the date of exercise. For restricted stock units, the amount of the tax deduction is generally for the fair market value of our shares of common stock at the vesting date. Excess tax benefits are not included in the accompanying condensed consolidated financial statements because we are in a net operating loss position and a full valuation allowance is maintained for all net deferred tax assets.

Equity Plans

We have issued share-based awards to employees, non-executive directors and outside consultants through various approved plans and outside of any formal plan. New shares are issued upon the exercise of share-based awards.

Upon receipt of stockholder approval on May 31, 2012, we adopted the HeartWare International, Inc. 2012 Incentive Award Plan (“2012 Plan”). The 2012 Plan provides for the grant of incentive stock options, non-qualified stock options, restricted stock, restricted stock units, performance awards, dividend equivalent rights, deferred stock, deferred stock units, stock payments and stock appreciation rights (collectively referred to as “Awards”), to our directors, employees and consultants. Under the terms of the 2012 Plan, the total number of shares of our common stock initially reserved for issuance under Awards is 1,375,000, provided that the total number of shares of our common stock that may be issued pursuant to “Full Value Awards” (Awards other than options, SARs or other Awards for which the holder pays the intrinsic value existing as of the date of grant whether directly or by forgoing a right to receive a payment from the Company) is 1,275,000. As of March 31, 2015, 207,020 shares have been issued upon vesting of Awards issued under the 2012 Plan and Awards with respect to 720,026 shares were issued and outstanding under the 2012 Plan. Subsequent to adoption of the 2012 Plan, no new Awards will be granted under our prior plans. Any outstanding Awards under the prior plans will continue to be subject to the terms and conditions of the plan under which they were granted.

Stock Options

Each option allows the holder to subscribe for and be issued one share of our common stock at a specified price, which is generally the quoted market price of our common stock on the date the option is issued. Options generally vest on a pro-rata basis on each anniversary of the issuance date within four years of the date the option is issued. Options may be exercised after they have vested and prior to the specified expiry date provided applicable exercise conditions are met, if any. The expiry date can be for periods of up to ten years from the date the option is issued.

The fair value of each option is estimated on the date of grant using the Black-Scholes option pricing model based on the assumptions established at that time. No options were issued in the three months ended March 31, 2015 and 2014.

Information related to options granted under all of our plans at March 31, 2015 and activity in the three months then ended is as follows (certain amounts in U.S.$ were converted from AU$ at the then period-end spot rate):

Number of

Weighted

Aggregate

Options

Average

Intrinsic

(in thousands)

Exercise

Remaining

Value

Price

Contractual Life

(in thousands)

(Years)

Outstanding at December 31, 2014

107

48.32

Granted

—

Exercised

)

21.42

Forfeited

—

Expired

—

Outstanding at March 31, 2015

106

47.87

4.16

4,284

Exercisable at March 31, 2015

39.19

3.29

4,203

The aggregate intrinsic values at March 31, 2015 noted in the table above represent the number of in-the-money options outstanding or exercisable multiplied by the closing price of our common stock traded on NASDAQ less the weighted average exercise price at period end.

The total intrinsic value of options exercised in the three months ended March 31, 2015 and 2014 was approximately $0.1 million and $1.2 million, respectively. Cash received from options exercised in the three months ended March 31, 2015 and 2014 was approximately $0.03 million and $0.4 million, respectively.

At March 31, 2015, there was approximately $0.1 million of unrecognized compensation expense, net of estimated forfeitures, related to non-vested options. This expense is expected to be recognized over a weighted average period of 0.5 years.

Restricted Stock Units

Each restricted stock unit (“RSU”) represents a contingent right to receive one share of our common stock. RSUs generally vest on a pro-rata basis on each anniversary of the issuance date over three or four years or vest in accordance with performance-based criteria. The RSUs with performance-based vesting criteria vest in one or more tranches contingent upon the achievement of pre-determined milestones related to the development of our products, the achievement of certain prescribed clinical and regulatory objectives, the achievement of specific financial performance measures or similar metrics. There is no consideration payable on the vesting of RSUs issued under the plans. Upon vesting, the RSUs are exercised automatically and settled in shares of our common stock.

Information related to RSUs at March 31, 2015 and activity in the three months then ended is as follows:

Number of

Weighted

Aggregate

Units

Average

Intrinsic Value

(in thousands)

Remaining

(in thousands)

Contractual

Life

(Years)

Outstanding at December 31, 2014

589

Granted

286

Vested/Exercised

(88

)

Forfeited

(14

)

Expired

—

Outstanding at March 31, 2015

773

1.82

67,860

The aggregate intrinsic value at March 31, 2015 noted in the table above represents the closing price of our common stock traded on NASDAQ multiplied by the number of RSUs outstanding.

At March 31, 2015, 72,705 of the RSUs outstanding are subject to performance-based vesting criteria as described above.

The total intrinsic value of RSUs vested in the three months ended March 31, 2015 and 2014 was approximately $7.9 million and $2.9 million, respectively.

The fair value of each RSU award equals the closing price of our common stock on the date of grant. The weighted average grant date fair value per share of RSUs granted in the three months ended March 31, 2015 and 2014 was $89.53 and $100.95, respectively.

At March 31, 2015, we had approximately $42.0 million of unrecognized compensation expense related to non-vested RSU awards, net of estimated forfeitures. This expense is expected to be recognized over a weighted average period of 1.8 years.

Net_Loss_Per_Share

Net Loss Per Share	3 Months Ended
	Mar. 31, 2015
Earnings Per Share [Abstract]
Net Loss Per Share	Note 10. Net Loss Per Share
	Basic net loss per common share is computed by dividing net loss for the period by the weighted-average number of common shares outstanding for each respective period. Diluted net loss per common share adjusts basic net loss per common share for the dilutive effects of share-based awards as determined under the treasury stock method, our convertible senior notes as determined under the if-converted method, and other potentially dilutive instruments only in the periods in which the effect is dilutive. Due to our net loss for all periods presented, all potentially dilutive instruments were excluded because their inclusion would have been anti-dilutive. The following instruments have been excluded from the calculation of diluted net loss per share, as their effect would be anti-dilutive.


		Three Months Ended
		March 31,
	Common shares issuable upon:	2015		2014
		(in thousands)

	Conversion of convertible senior notes		1,438		1,438
	Exercise or vesting of share-based awards		879		851

Business_Segment_Geographic_Ar

Business Segment, Geographic Areas and Major Customers	3 Months Ended
Business Segment, Geographic Areas and Major Customers	Mar. 31, 2015
Segment Reporting [Abstract]
Business Segment, Geographic Areas and Major Customers	Note 11. Business Segment, Geographic Areas and Major Customers
	For financial reporting purposes, we have one reportable segment which designs, manufactures and markets medical devices for the treatment of advanced heart failure. Products are distributed to customers located in the United States through our clinical trials and as commercial products, as commercial products to customers in Europe and under special access in other countries. Product sales attributed to a country or region are based on the location of the customer to whom the products are sold. Long-lived assets are primarily held in the United States.
	Product sales by geographic location were as follows:


		Three Months Ended
		March 31,
		2015		2014
		(in thousands)
	United States	$	42,189	$	33,788
	Germany		12,741		14,678
	International, excluding Germany		15,091		18,006

		$	70,021	$	66,472

	As a significant portion of our revenue is generated outside of the United States, we are dependent on favorable economic and regulatory environments for our products in Europe and other countries outside of the United States. For the three months ended March 31, 2015 and 2014, no customer exceeded 10% of product sales individually.

Commitments_and_Contingencies

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 12. Commitments and Contingencies

	We received a warning letter from the FDA, dated June 2, 2014, following an inspection of our Miami Lakes, Florida facility conducted in January 2014. The FDA letter cited four categories for us to address: (1) procedures for validating device design, including device labeling; (2) procedures for implementing corrective and preventive action (“CAPA”); (3) maintaining records related to investigations; and (4) validation of computer software used as part of production or quality systems. The warning letter did not require any action by physicians or patients and did not restrict use of our devices.

	We sent the FDA our initial response to the warning letter within the required fifteen business days of receipt, and committed to undertaking certain quality system improvements and providing the FDA with periodic updates. During 2014 and 2015, we commenced implementing systemic changes and organizational enhancements to address the four warning letter items and related quality systems. We established teams to review and address the items cited by the FDA and engaged external subject matter experts to assist in assessment and remediation efforts. We have developed an overall corporate quality plan and individual quality plans which govern our quality improvement efforts.

	At March 31, 2015, we had purchase order commitments of approximately $33.6 million related to product costs, supplies, services and property, plant and equipment purchases. Many of our materials and supplies require long lead times. Our purchase order commitments reflect materials that may be received up to one year from the date of order.

	In addition, we have entered into employment agreements with all of our executive officers. These contracts do not have a fixed term and are constructed on an at-will basis. Some of these contracts provide executives with the right to receive certain additional payments and benefits if their employment is terminated including after a change of control, as defined in these agreements.

	From time to time we invest in certain development-stage entities in connection with research activities. Certain contingent milestone payments in connection with these arrangements have not been accrued in the accompanying condensed consolidated financial statements as the amounts are indeterminate at this time.

	The taxation and customs requirements, together with other applicable laws and regulations of certain foreign jurisdictions, can be inherently complex and subject to differing interpretation by local authorities. We are subject to the risk that either we have misinterpreted applicable laws and regulations, or that foreign authorities may take inconsistent, unclear or changing positions on local law, customs practices or rules. In the event that we have misinterpreted any of the above, or that foreign authorities take positions contrary to ours, we may incur liabilities that may differ materially from the amounts accrued in the accompanying condensed consolidated financial statements.

	Contingent Consideration and Milestone Payments

	In December 2013, we acquired CircuLite using a combination of cash, stock and post-acquisition milestone and royalty payments. The post-acquisition payments are payable based upon the achievement of five specified performance milestones and revenue over periods ranging from 8-10 years subsequent to the acquisition date. The maximum amount of the aggregate post-acquisition payments could be $320 million. As of March 31, 2015, the fair value of the contingent consideration was estimated to be $45.8 million (see Note 4).

	License and Development Agreements

	From time to time, we license rights to technology or intellectual property from third parties. These licenses may require us to pay upfront payments as well as development or other payments upon successful completion of preclinical, clinical, regulatory or revenue milestones. In addition, these agreements may require us to pay royalties on sales of products arising from the licensed technology or intellectual property. Because the achievement of these milestones is not reasonably estimable, we have not recorded a liability in the accompanying consolidated financial statements for any of these contingencies.

	Litigation

	From time to time we may be involved in litigation or other contingencies arising in the ordinary course of business. Based on the information presently available, management believes there are no contingencies, claims or actions, pending or threatened, the ultimate resolution of which will have a material adverse effect on our financial position, liquidity or results of operations.



	In accordance with FASB ASC 450, Contingencies, we accrue loss contingencies including costs of settlement, damages and defense related to litigation to the extent they are probable and reasonably estimable. Otherwise, we expense these costs as incurred. If the estimate of a probable loss is a range and no amount within the range is more likely, we accrue the minimum amount of the range.

Subsequent_Events

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2015
Subsequent Events [Abstract]
Subsequent Events	Note 13. Subsequent Events

	We have evaluated events and transactions that occurred subsequent to March 31, 2015 through the date the financial statements were issued, for potential recognition or disclosure in the accompanying condensed consolidated financial statements. Except as disclosed below, we did not identify any events or transactions that should be recognized or disclosed in the accompanying condensed consolidated financial statements.

	On April 30, 2015, we announced our intention to initiate additional field safety corrective actions in May 2015. These actions are intended to reinforce information contained in our Instructions for Use and Patient Manuals, to provide awareness to clinicians and patients regarding forthcoming product improvements and to inform patients and clinicians about various HVAD system safety and performance concerns we have identified as part of our warning letter remediation activities. These field actions are not expected to have a material effect on our financial position, liquidity or results of operations.

Basis_of_Presentation_Policies

Basis of Presentation (Policies)	3 Months Ended
Basis of Presentation (Policies)	Mar. 31, 2015
Accounting Policies [Abstract]
Basis of Presentation	The accompanying unaudited interim condensed consolidated financial statements for HeartWare International, Inc. (“we,” “our,” “us,” “HeartWare,” the “HeartWare Group” or the “Company”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for reporting of interim financial information. Pursuant to these rules and regulations, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted. Accordingly, these statements do not include all the disclosures normally required by U.S. GAAP for annual financial statements and should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in this report and the audited financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014. The accompanying condensed consolidated balance sheet as of December 31, 2014 has been derived from our audited financial statements. The unaudited condensed consolidated statements of operations and cash flows for the three months ended March 31, 2015 are not necessarily indicative of the results to be expected for any future period or for the year ending December 31, 2015.
Accounting Estimates	The preparation of our unaudited interim condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates.
New Accounting Standards	New Accounting Standards
	In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). The updated standard is a new comprehensive revenue recognition model that requires revenue to be recognized in a manner that depicts the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and early adoption is not permitted. The updated standard becomes effective for us in the first quarter of our fiscal year ending December 31, 2017. We have not yet selected a transition method, and we are currently evaluating the effect that the ASU 2014-09 will have on our consolidated financial statements and related disclosures. In April 2015, the FASB issued for public comment a proposed update that would defer the effective date of ASU 2014-09 by one year. If the one-year deferral is adopted, ASU 2014-09 would become effective for us in the first quarter of our fiscal year ending December 31, 2018.
	In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis, which is intended to improve targeted areas of consolidation guidance for legal entities such as limited partnerships, limited liability corporations, and securitization structures (collateralized debt obligations, collateralized loan obligations, and mortgage-backed security transactions). This ASU focuses on the consolidation evaluation for reporting organizations (public and private companies and not-for-profit organizations) that are required to evaluate whether they should consolidate certain legal entities. In addition to reducing the number of consolidation models from four to two, the new standard simplifies the FASB Accounting Standards Codification by: i) placing more emphasis on risk of loss when determining a controlling financial interest; ii) reducing the frequency of the application of related-party guidance when determining a controlling financial interest in a variable interest entity (“VIE”); and iii) changing consolidation conclusions for public and private companies in several industries that typically make use of limited partnerships or VIEs. ASU No. 2015-02 will be effective for us in periods beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. The adoption of ASU No. 2015-02 is not expected to have a material effect on our consolidated financial position, results of operations or cash flows.
	In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The updated standard requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU 2015-03 will be effective for us in periods beginning after December 15, 2015. Early adoption is permitted
	for financial statements that have not been previously issued. ASU 2015-03 should be applied on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. The adoption of ASU No. 2015-03 will result in the reclassification of debt issuance costs currently classified in long-term assets to be offset against the carrying value of our convertible notes. Based on the amount of debt issuance costs included in long-term assets as of March 31, 2015, the adoption of ASU 2015-03 is not expected to have a material effect on our consolidated financial position, results of operations or cash flows.
Accounts Receivable	Accounts Receivable
	Accounts receivable consists of amounts due from the sale of our HeartWare® Ventricular Assist System (the “HVAD System”) to our customers, which include hospitals, health research institutions and medical device distributors. We grant credit to customers in the normal course of business, but generally do not require collateral or any other security to support credit sales. Our receivables are geographically dispersed, with a significant portion from customers located in Europe and other foreign countries. No customer had an accounts receivable balance greater than 10% of total accounts receivable at March 31, 2015 or December 31, 2014.
	We maintain allowances for doubtful accounts for estimated losses that may result from an inability to collect payments owed to us for product sales. We regularly review the allowance by considering factors such as historical experience, the age of the accounts receivable balances and local economic conditions that may affect a customer’s ability to pay. Account balances are charged off against the allowance after appropriate collection efforts have been exhausted and we feel it is probable that the receivable will not be recovered.
Inventories	Inventories
	Components of inventories are as follows:


		March 31,				December 31,
		2015				2014
		(in thousands)
	Raw material	$	28,773			$	28,688
	Work-in-process		10,032				10,240
	Finished goods		13,551				15,118

		$	52,356			$	54,046

	Finished goods inventories includes inventory held on consignment at customer sites of approximately $5.7 million at March 31, 2015 and $5.8 million at December 31, 2014.
Property, Plant and Equipment, Net	Property, Plant and Equipment, Net
	Property, plant and equipment, net consists of the following:


		Estimated		March 31,				December 31,
		Useful Lives		2015				2014
				(in thousands)
	Machinery and equipment	1.5 to 7 years		$	20,504			$	21,279
	Leasehold improvements	3 to 10 years			8,917				9,070
	Office equipment, furniture and fixtures	5 to 7 years			2,014				2,206
	Purchased software	1 to 7 years			6,694				6,474

					38,129				39,029
	Less: accumulated depreciation				(21,109	)			(19,993	)

				$	17,020			$	19,036

	In the first quarter of 2015, we ceased activities at our facility in Aachen, Germany. We recorded an impairment charge of $1.1 million related to leasehold improvements and equipment at the facility upon their discontinued use. This amount is included in research and development expenses on our condensed consolidated statements of operations.
	In the first quarter of 2014, we ceased activities at our facility in Teaneck, New Jersey and vacated the facility. We recorded an impairment charge of $0.6 million related to office equipment and software at the facility upon their discontinued use. This amount is included in selling, general and administrative expenses on our condensed consolidated statements of operations.
Long-Term Investment	Long-Term Investment
	In October 2013, we invested $10 million in an early-stage, privately-held company focused on the development of novel, minimally invasive heart therapies in the form of a convertible promissory note with an interest rate of 6% per annum (the “Note”). Pursuant to the terms of the Note, on October 7, 2014 (the maturity date), the privately held company elected to convert all unpaid principal and interest on the Note (less applicable taxes) into shares of its preferred stock. This investment is carried at cost and is included in long-term investments and other assets on our condensed consolidated balance sheets. The carrying value of this investment was $10.5 million at March 31, 2015 and December 31, 2014.
	The fair value of this investment has not been estimated as of March 31, 2015 and December 31, 2014. As of March 31, 2015, the investee company had limited liquidity and is in the process of raising additional capital to continue its operations. However, there can be no assurance this effort will be successful or that the investee company will be able to raise a sufficient amount of capital to conduct their operations at a level that would allow for commercial development of their products. We considered determination of the fair value of this investment to be impracticable as it represents an equity interest in an early-stage, privately-held company. We believe there have been no significant events or changes in circumstances that may have a significant adverse effect on the fair value of the investment. Events may occur or information may become available, including the inability of the investee company to raise sufficient additional capital, that could require us to write-off all or a portion of this asset, which could have a material adverse effect on our consolidated results of operations.
Accrued Warranty	Accrued Warranty
Accrued Warranty	Certain patient accessories sold with the HVAD System are covered by a limited warranty ranging from one to two years. Estimated contractual warranty obligations are recorded as an expense when the related revenue is recognized and are included in cost of revenue on our condensed consolidated statements of operations. Factors that affect the estimated warranty liability include the number of units sold, historical and anticipated rates of warranty claims, cost per claim, and vendor supported warranty programs. We periodically assess the adequacy of our recorded warranty liabilities and adjust the amounts as necessary. The amount of the liability recorded is equal to the estimated costs to repair or otherwise satisfy claims made by customers.
Fair Value Measurements	FASB ASC 820 – Fair Value Measurements and Disclosures, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. FASB ASC 820 requires disclosures about the fair value of all financial instruments, whether or not recognized, for financial statement purposes. Disclosures about the fair value of financial instruments are based on pertinent information available to us as of the reporting dates. Accordingly, the estimates presented in the accompanying condensed consolidated financial statements are not necessarily indicative of the amounts that could be realized on disposition of the financial instruments.
	FASB ASC 820 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement).
	The three levels of the fair value hierarchy are as follows:
	Level 1 – Quoted prices for identical instruments in active markets.
	Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.
	Level 3 – Instruments with primarily unobservable value drivers.
	We review the fair value hierarchy classification on a quarterly basis. Changes in the ability to observe valuation inputs may result in a reclassification of levels of certain securities within the fair value hierarchy. There were no transfers between Level 1, Level 2, and Level 3 during the three months ended March 31, 2015 or 2014.
Contingencies	In accordance with FASB ASC 450, Contingencies, we accrue loss contingencies including costs of settlement, damages and defense related to litigation to the extent they are probable and reasonably estimable. Otherwise, we expense these costs as incurred. If the estimate of a probable loss is a range and no amount within the range is more likely, we accrue the minimum amount of the range.

Balance_Sheet_Information_Tabl

Balance Sheet Information (Tables)	3 Months Ended
Balance Sheet Information (Tables)	Mar. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Summary of Change in Allowance for Doubtful Accounts	The following table summarizes the change in our allowance for doubtful accounts for the three months ended March 31, 2015 and 2014:


		2015				2014
		(in thousands)
	Beginning balance	$	671			$	495
	Reversal of expense		(26	)			—
	Charge-offs		—				—

	Ending balance	$	645			$	495

Components of Inventories	Components of inventories are as follows:


		March 31,				December 31,
		2015				2014
		(in thousands)
	Raw material	$	28,773			$	28,688
	Work-in-process		10,032				10,240
	Finished goods		13,551				15,118

		$	52,356			$	54,046

Summary of Property, Plant and Equipment, Net	Property, plant and equipment, net consists of the following:


		Estimated		March 31,				December 31,
		Useful Lives		2015				2014
				(in thousands)
	Machinery and equipment	1.5 to 7 years		$	20,504			$	21,279
	Leasehold improvements	3 to 10 years			8,917				9,070
	Office equipment, furniture and fixtures	5 to 7 years			2,014				2,206
	Purchased software	1 to 7 years			6,694				6,474

					38,129				39,029
	Less: accumulated depreciation				(21,109	)			(19,993	)

				$	17,020			$	19,036

Summary of Other Accrued Liabilities	Other accrued liabilities consist of the following:


		March 31,				December 31,
		2015				2014
		(in thousands)
	Accrued payroll and other employee costs	$	9,578			$	13,404
	Accrued material purchases		4,251				4,284
	Accrued warranty		4,815				4,685
	Accrued research and development costs		2,772				2,663
	Other accrued expenses		12,255				11,553

		$	33,671			$	36,589

Summary of Changes in Warranty Liability	The following table summarizes the change in our warranty liability for the three months ended March 31, 2015 and 2014:


		2015				2014
		(in thousands)
	Beginning balance	$	4,685			$	2,498
	Accrual for warranty expense		785				2,105
	Warranty costs incurred during the period		(655	)			(341	)

	Ending balance	$	4,815			$	4,262

Summary of Changes in Product Recall Liability	The following table summarizes the change in product recall liability for the three months ended March 31, 2015:



		2015
		(in thousands)
	Beginning balance	$	1,888
	Accrual for recall costs		505
	Recall costs incurred during the period		(1,305	)

	Ending balance	$	1,088

Summary of Changes in Accrued Restructuring Costs	The following table summarizes changes in our accrued restructuring costs for the three months ended March 31, 2015:


		Facility Leases				Severance and				Contract		Total
		Facility Leases				Related				Termination		Total
		(in thousands)
	Beginning balance	$	1,266			$	—			$	—	$	1,266
	Restructuring charges		139				598				310		1,047
	Payments		(191	)			(217	)			—		(408	)
	Adjustments to estimated obligations		456				—				—		456
	Change in fair value		11				—				—		11

	Ending balance	$	1,681			$	381			$	310	$	2,372

Fair_Value_Measurements_Tables

Fair Value Measurements (Tables)	3 Months Ended
Fair Value Measurements (Tables)	Mar. 31, 2015
Fair Value Disclosures [Abstract]
Fair Value of Financial Assets and Financial Liabilities Measured at Fair Value on a Recurring Basis	The following tables represent the fair value of our financial assets and financial liabilities measured at fair value on a recurring basis and which level was used in the fair value hierarchy at the respective dates.


								Fair Value Measurements at the Reporting Date Using
			Carrying			Fair
			Value			Value		Level 1		Level 2		Level 3
			(in thousands)
	As of March 31, 2015
	Assets
	Short-term investments		$	70,354		$	70,354	$	—	$	70,354	$	—
	Long-term investments			1,225			1,225		—		1,225		—

	Liabilities
	Convertible senior notes			116,871	(1)		164,079		—		164,079		—
	Contingent consideration			45,840			45,840		—		—		45,840
	Royalties			971			971		—		—		971
	Lease exit costs			1,500			1,500		—		—		1,500


								Fair Value Measurements at the Reporting Date Using
			Carrying			Fair
			Value			Value		Level 1		Level 2		Level 3
			(in thousands)
	As of December 31, 2014
	Assets
	Short-term investments		$	75,535		$	75,535	$	—	$	75,535	$	—
	Long-term investments			1,225			1,225		—		1,225		—

	Liabilities
	Convertible senior notes			114,803	(1)		153,978		—		153,978		—
	Contingent consideration			43,740			43,740		—		—		43,740
	Royalties			962			962		—		—		962
	Lease exit costs			1,207			1,207		—		—		1,207

	-1	The carrying amount of our convertible senior notes is net of unamortized discount. See Note 7 (Debt) for more information.
Summary of Change in Fair Value of Contingent Consideration as Determined by Level 3 Inputs	The following table summarizes the change in fair value, as determined by Level 3 inputs, of the contingent consideration for the three months ended March 31, 2015:


			Contingent
			Consideration
			(in thousands)

	Beginning balance		$	43,740
	Payments			—
	Change in fair value			2,100

	Ending balance		$	45,840

Summary of Change in Fair Value of Royalties as Determined by Level 3 Inputs	The following table summarizes the change in fair value, as determined by Level 3 inputs, of the royalties for the three months ended March 31, 2015:


			Royalties
			(in thousands)

	Beginning balance		$	962
	Payments			(10	)
	Change in fair value			19

	Ending balance		$	971

Summary of Change in Fair Value of Lease Exit Costs as Determined by Level 3 Inputs	The following table summarizes the change in fair value, as determined by Level 3 inputs, of the lease exit costs for the three months ended March 31, 2015:


			Lease Exit
			Costs
			(in thousands)

	Beginning balance		$	1,207
	Adjustments			454
	Payments			(172	)
	Change in fair value			11

	Ending balance		$	1,500

Schedule of Quantitative Information for Level 3 Fair Value Measurements	The following table presents quantitative information about the inputs and valuation methodologies used for our fair value measurements classified in Level 3 of the fair value hierarchy as of March 31, 2015:


			Valuation Methodology			Significant		Weighted Average
			Valuation Methodology			Unobservable Input		(range, if applicable)

	Contingent consideration			Probability weighted income approach			Milestone dates	2019 to 2022
							Discount rate	17.0% to 24.0%
							Probability of occurrence	0% to 100%

	Royalties			Discounted cash flow			Discount rate	4.8% to 7.8%

	Lease exit costs			Discounted cash flow			Sublease start date	1-Jul-16
							Sublease rate	$26.50/square foot
							Discount rate	3.50%

Investments_Tables

Investments (Tables)	3 Months Ended
Investments (Tables)	Mar. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Summary of Amortized Cost and Fair Value of Investments	The amortized cost and fair value of our investments, with gross unrealized gains and losses, were as follows:


		Amortized		Gross		Gross			Aggregate
		Cost Basis		Unrealized		Unrealized			Fair Value
				Gains		Losses
		(in thousands)
	At March 31, 2015
	Short-term investments:
	Corporate debt	$	45,940	$	1	$	(136	)	$	45,805
	U.S. government agency debt		15,000		1		(7	)		14,994
	Certificates of deposit		9,555		—		—			9,555

	Total short-term investments	$	70,495	$	2	$	(143	)	$	70,354


	Long-term investments:
	Certificates of deposit	$	1,225	$	—	$	—		$	1,225

	Total long-term investments	$	1,225	$	—	$	—		$	1,225



		Amortized		Gross		Gross			Aggregate
		Cost Basis		Unrealized		Unrealized			Fair Value
				Gains		Losses
		(in thousands)
	At December 31, 2014
	Short-term investments:
	Corporate debt	$	51,241	$	8	$	(244	)	$	51,005
	U.S. government agency debt		15,000		—		(25	)		14,975
	Certificates of deposit		9,555		—		—			9,555

	Total short-term investments	$	75,796	$	8	$	(269	)	$	75,535


	Long-term investments:
	Certificates of deposit	$	1,225	$	—	$	—		$	1,225

	Total long-term investments	$	1,225	$	—	$	—		$	1,225

Goodwill_InProcess_Research_an1

Goodwill, In-Process Research and Development and Other Intangible Assets, Net (Tables)	3 Months Ended
	Mar. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of Carrying Amount of Goodwill and Change in Balance	The carrying amount of goodwill and the change in the balance for the three months ended March 31, 2015 and 2014 is as follows:


		2015			2014
		(in thousands)
	Beginning balance	$	61,390		$	61,596
	Additions		—			—
	Impairment		—			—
	Foreign currency translation impact		(167	)		(2	)

	Ending balance	$	61,223		$	61,594

Summary of Carrying Value of In-Process Research and Development Assets	The carrying value of our in-process research and development assets, which relate to the development and potential commercialization of certain acquired technologies, consisted of the following at March 31, 2015 and December 31, 2014:


		March 31,			December 31,
		2015			2014
		(in thousands)
	SYNERGY System technology	$	32,850		$	32,850

Summary of Other Intangible Assets	Other intangible assets, net consisted of the following:


		March 31,			December 31,
		2015			2014
		(in thousands)
	Patents	$	5,796		$	5,310
	Purchased intangible assets
	Tradenames		3,700			3,700
	Customer relationships		1,800			1,800
	Acquired technology rights		9,925			9,925

			21,221			20,735
	Less: Accumulated amortization – Patents		(1,215	)		(1,118	)
	Less: Accumulated amortization – Purchased intangible assets		(2,221	)		(1,810	)

		$	17,785		$	17,807

Estimated Useful Lives of Intangible Assets	Our other intangible assets are amortized using the straight-line method over their estimated useful lives as follows:


	Patents		15 years
	Purchased intangible assets
	Tradenames		15 years
	Customer relationships		20 years
	Acquired technology rights		6 to 16 years

Debt_Tables

Debt (Tables)	3 Months Ended
Debt (Tables)	Mar. 31, 2015
Debt Disclosure [Abstract]
Summary of Convertible Notes and Equity Component	The Convertible Notes and the equity component, which is recorded in additional paid-in-capital, consisted of the following:


		March 31,			December 31,
		2015			2014
		(in thousands)
	Principal amount	$	143,750		$	143,750
	Unamortized discount		(26,879	)		(28,947	)

	Net carrying amount	$	116,871		$	114,803

	Equity component	$	55,038		$	55,038

Summary of Interest Expense Related to Convertible Notes	For the three months ended March 31, 2015 and 2014, interest expense related to the Convertible Notes was as follows:


		Three Months Ended
		March 31
		2015			2014
		(in thousands)
	Stated amount at 3.5% coupon rate	$	1,258		$	1,258
	Amortization of discount		2,068			1,834
	Amortization of deferred financing costs		111			99

		$	3,437		$	3,191

ShareBased_Compensation_Tables

Share-Based Compensation (Tables)	3 Months Ended
Share-Based Compensation (Tables)	Mar. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Allocation of Share-Based Compensation Expense	For the three months ended March 31, 2015 and 2014, we recorded share-based compensation expense as follows:


		Three Months Ended
		March 31,
		2015			2014
		(in thousands)
	Cost of revenue	$	438		$	447
	Selling, general and administrative		3,449			2,732
	Research and development		2,089			1,178

		$	5,976		$	4,357

Summary of Options Granted under All Plans	Information related to options granted under all of our plans at March 31, 2015 and activity in the three months then ended is as follows (certain amounts in U.S.$ were converted from AU$ at the then period-end spot rate):


		Number of			Weighted		Weighted		Aggregate
		Options			Average		Average		Intrinsic
		(in thousands)			Exercise		Remaining		Value
					Price		Contractual Life		(in thousands)
							(Years)
	Outstanding at December 31, 2014		107		$	48.32
	Granted		—			—
	Exercised		(1	)		21.42
	Forfeited		—			—
	Expired		—			—

	Outstanding at March 31, 2015		106		$	47.87		4.16	$	4,284

	Exercisable at March 31, 2015		86		$	39.19		3.29	$	4,203

Summary of RSU's	Information related to RSUs at March 31, 2015 and activity in the three months then ended is as follows:


		Number of			Weighted		Aggregate
		Units			Average		Intrinsic Value
		(in thousands)			Remaining		(in thousands)
					Contractual
					Life
					(Years)
	Outstanding at December 31, 2014		589
	Granted		286
	Vested/Exercised		(88	)
	Forfeited		(14	)
	Expired		—

	Outstanding at March 31, 2015		773			1.82	$	67,860

Net_Loss_Per_Share_Tables

Net Loss Per Share (Tables)	3 Months Ended
	Mar. 31, 2015
Earnings Per Share [Abstract]
Anti-Dilutive Securities Excluded from Computation of Earnings Per Share	The following instruments have been excluded from the calculation of diluted net loss per share, as their effect would be anti-dilutive.


		Three Months Ended
		March 31,
	Common shares issuable upon:	2015		2014
		(in thousands)

	Conversion of convertible senior notes		1,438		1,438
	Exercise or vesting of share-based awards		879		851

Business_Segment_Geographic_Ar1

Business Segment, Geographic Areas and Major Customers (Tables)	3 Months Ended
	Mar. 31, 2015
Segment Reporting [Abstract]
Product Sales by Geographic Location	Product sales by geographic location were as follows:


		Three Months Ended
		March 31,
		2015		2014
		(in thousands)
	United States	$	42,189	$	33,788
	Germany		12,741		14,678
	International, excluding Germany		15,091		18,006

		$	70,021	$	66,472

Liquidity_Additional_Informati

Liquidity - Additional Information (Detail) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Liquidity [Abstract]
Cash, cash equivalents and investments	$174,100,000
Accumulated deficit	($363,254,000)	($348,719,000)

Balance_Sheet_Information_Addi

Balance Sheet Information - Additional Information (Detail) (USD $)	3 Months Ended		1 Months Ended	12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Oct. 31, 2013	Dec. 31, 2014
	Mar. 31, 2015	Mar. 31, 2014	Oct. 31, 2013	Customer
Condensed Balance Sheet Statements, Captions [Line Items]
Percentage of account receivables by customers	10.00%			10.00%
Inventory held on consignment	$5,700,000			5,800,000
Impairment charge	1,118,000	607,000
Long-term investment, amount	14,341,000			14,635,000
Accrued payroll and other employee costs	2,400,000			7,900,000
Accrual for recall costs	505,000	0
Aggregate severance costs	600,000
Contract termination fee	300,000	700,000
CircuLite [Member]
Condensed Balance Sheet Statements, Captions [Line Items]
Aggregate severance costs		600,000
Minimum [Member]
Condensed Balance Sheet Statements, Captions [Line Items]
Maturity of limited warranty	1 year
Maximum [Member]
Condensed Balance Sheet Statements, Captions [Line Items]
Maturity of limited warranty	2 years
Research and Development [Member] \| CircuLite [Member]
Condensed Balance Sheet Statements, Captions [Line Items]
Aggregate severance costs		400,000
Selling, General and Administrative [Member] \| CircuLite [Member]
Condensed Balance Sheet Statements, Captions [Line Items]
Aggregate severance costs		200,000
Facility Closing [Member]
Condensed Balance Sheet Statements, Captions [Line Items]
Lease liability	100,000
Lease expiration period	2017-10
Remaining lease payments	500,000	500,000
Lease expiration year		2020
Leasehold Improvements [Member]
Condensed Balance Sheet Statements, Captions [Line Items]
Impairment charge	1,100,000
Office Equipment And Software [Member]
Condensed Balance Sheet Statements, Captions [Line Items]
Impairment charge		600,000
Convertible Promissory Notes [Member]
Condensed Balance Sheet Statements, Captions [Line Items]
Long-term investment, amount			10,000,000
Long-term investment, interest rate			6.00%
Long-term investment, maturity date			7-Oct-14
Preferred Stock Investment [Member]
Condensed Balance Sheet Statements, Captions [Line Items]
Long-term investment, amount	10,500,000			10,500,000
Allowance for Sales Returns [Member]
Condensed Balance Sheet Statements, Captions [Line Items]
Allowance for returns	$0			0
Accounts Receivable [Member]
Condensed Balance Sheet Statements, Captions [Line Items]
Number of customers having account receivable balance	0			0

Balance_Sheet_Information_Summ

Balance Sheet Information - Summary of Change in Allowance for Doubtful Accounts (Detail) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Accounting Policies [Abstract]
Beginning balance	$671	$495
Reversal of expense	-26
Charge-offs	0	0
Ending balance	$645	$495

Balance_Sheet_Information_Comp

Balance Sheet Information - Components of Inventories (Detail) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Inventory Disclosure [Abstract]
Raw material	$28,773	$28,688
Work-in-process	10,032	10,240
Finished goods	13,551	15,118
Inventory, total	$52,356	$54,046

Balance_Sheet_Information_Summ1

Balance Sheet Information - Summary of Property, Plant and Equipment, Net (Detail) (USD $)	3 Months Ended	12 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	38,129	39,029
Less: accumulated depreciation	-21,109	-19,993
Property, plant and equipment, net	17,020	19,036
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	20,504	21,279
Machinery and Equipment [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, estimated useful lives	1 year 6 months
Machinery and Equipment [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, estimated useful lives		7 years
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	8,917	9,070
Leasehold Improvements [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, estimated useful lives	3 years
Leasehold Improvements [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, estimated useful lives		10 years
Office Equipment, Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	2,014	2,206
Office Equipment, Furniture and Fixtures [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, estimated useful lives	5 years
Office Equipment, Furniture and Fixtures [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, estimated useful lives		7 years
Software and Software Development Costs [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	6,694	6,474
Software and Software Development Costs [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, estimated useful lives	1 year
Software and Software Development Costs [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, estimated useful lives		7 years

Balance_Sheet_Information_Summ2

Balance Sheet Information - Summary of Other Accrued Liabilities (Detail) (USD $)	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014	Dec. 31, 2013
Payables and Accruals [Abstract]
Accrued payroll and other employee costs	$9,578	$13,404
Accrued material purchases	4,251	4,284
Accrued warranty	4,815	4,685	4,262	2,498
Accrued research and development costs	2,772	2,663
Other accrued expenses	12,255	11,553
Total other accrued liabilities	$33,671	$36,589

Balance_Sheet_Information_Summ3

Balance Sheet Information - Summary of Changes in Warranty Liability (Detail) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Accounting Policies [Abstract]
Beginning balance	$4,685	$2,498
Accrual for warranty expense	785	2,105
Warranty costs incurred during the period	-655	-341
Ending balance	$4,815	$4,262

Balance_Sheet_Information_Summ4

Balance Sheet Information - Summary of Changes in Product Recall Liability (Detail) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Regulatory Assets [Abstract]
Beginning balance	$1,888
Accrual for recall costs	505	0
Recall costs incurred during the period	-1,305
Ending balance	$1,088

Balance_Sheet_Information_Summ5

Balance Sheet Information - Summary of Changes in Accrued Restructuring Costs (Detail) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015
Restructuring Cost and Reserve [Line Items]
Beginning balance	$1,266
Restructuring charges	1,047
Payments	-408
Adjustments to estimated obligations	456
Change in fair value	11
Ending balance	2,372
Facility Leases [Member]
Restructuring Cost and Reserve [Line Items]
Beginning balance	1,266
Restructuring charges	139
Payments	-191
Adjustments to estimated obligations	456
Change in fair value	11
Ending balance	1,681
Severance and Related [Member]
Restructuring Cost and Reserve [Line Items]
Beginning balance	0
Restructuring charges	598
Payments	-217
Adjustments to estimated obligations	0
Change in fair value	0
Ending balance	381
Contract [Member]
Restructuring Cost and Reserve [Line Items]
Beginning balance	0
Restructuring charges	310
Payments	0
Adjustments to estimated obligations	0
Change in fair value	0
Ending balance	$310

Fair_Value_Measurements_Additi

Fair Value Measurements - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Transfer between level 1, Level 2, Level3	$0	$0
Impairment charges	$1,118,000	$607,000
World Heart Corporation [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Period for royalty payment obligations	14 years

Fair_Value_Measurements_Fair_V

Fair Value Measurements - Fair Value of Financial Assets and Financial Liabilities Measured at Fair Value on a Recurring Basis (Detail) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	$70,354	$75,535
Convertible senior notes	116,871	114,803
Contingent consideration	45,840	43,740
Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	70,354	75,535
Long-term investments	1,225	1,225
Convertible senior notes	164,079	153,978
Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Contingent consideration	45,840	43,740
Royalties	971	962
Lease exit costs	1,500	1,207
Carrying Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	70,354	75,535
Long-term investments	1,225	1,225
Convertible senior notes	116,871	114,803
Contingent consideration	45,840	43,740
Royalties	971	962
Lease exit costs	1,500	1,207
Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term investments	70,354	75,535
Long-term investments	1,225	1,225
Convertible senior notes	164,079	153,978
Contingent consideration	45,840	43,740
Royalties	971	962
Lease exit costs	$1,500	$1,207

Fair_Value_Measurements_Summar

Fair Value Measurements - Summary of Change in Fair Value of Contingent Consideration as Determined by Level 3 Inputs (Detail) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	$43,740
Change in fair value	2,100	3,140
Ending balance	45,840
Level 3 [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	43,740
Payments	0
Change in fair value	2,100
Ending balance	$45,840

Fair_Value_Measurements_Summar1

Fair Value Measurements - Summary of Change in Fair Value of Royalties as Determined by Level 3 Inputs (Detail) (Level 3 [Member], USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015
Level 3 [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	$962
Payments	-10
Change in fair value	19
Ending balance	$971

Fair_Value_Measurements_Summar2

Fair Value Measurements - Summary of Change in Fair Value of Lease Exit Costs as Determined by Level 3 Inputs (Detail) (Level 3 [Member], USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015
Level 3 [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	$1,207
Adjustments	454
Payments	-172
Change in fair value	11
Ending balance	$1,500

Fair_Value_Measurements_Schedu

Fair Value Measurements - Schedule of Quantitative Information for Level 3 Fair Value Measurements (Detail) (Level 3 [Member])	3 Months Ended
	Mar. 31, 2015
Contingent Consideration [Member] \| Minimum [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Discount rate	17.00%
Probability of occurrence	0.00%
Contingent Consideration [Member] \| Minimum [Member] \| Probability Weighted Income Approach [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Milestone dates	2019
Contingent Consideration [Member] \| Maximum [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Discount rate	24.00%
Probability of occurrence	100.00%
Contingent Consideration [Member] \| Maximum [Member] \| Probability Weighted Income Approach [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Milestone dates	2022
Royalties [Member] \| Minimum [Member] \| Discounted Cash Flow [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Discount rate	4.80%
Royalties [Member] \| Maximum [Member] \| Discounted Cash Flow [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Discount rate	7.80%
Lease Exit Costs [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Sublease rate	26.5
Discount rate	3.50%
Lease Exit Costs [Member] \| Discounted Cash Flow [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Sublease start date	July 1,2016

Investments_Additional_Informa

Investments - Additional Information (Detail) (USD $)	3 Months Ended		0 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Dec. 31, 2014
	Securities	Mar. 31, 2014	Mar. 31, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Realized gains (losses) on investments	$0	$0
Available-for-sale investments in a continuous loss position for more than twelve months	$0	$0
Number of individual investment securities in unrealized loss position	16		16
Short-term Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Investment maturity date description			Less than twenty-four months	Less than twenty-four months
Long-term Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Investment maturity date description			Less than twenty-four months	Less than twenty-four months

Investments_Summary_of_Amortiz

Investments - Summary of Amortized Cost and Fair Value of Investments (Detail) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Short-term Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost Basis	$70,495	$75,796
Gross Unrealized Gains	2	8
Gross Unrealized Losses	-143	-269
Aggregate Fair Value	70,354	75,535
Short-term Investments [Member] \| Corporate Debt [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost Basis	45,940	51,241
Gross Unrealized Gains	1	8
Gross Unrealized Losses	-136	-244
Aggregate Fair Value	45,805	51,005
Short-term Investments [Member] \| U.S. Government Agency Debt [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost Basis	15,000	15,000
Gross Unrealized Gains	1
Gross Unrealized Losses	-7	-25
Aggregate Fair Value	14,994	14,975
Short-term Investments [Member] \| Certificates of Deposit [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost Basis	9,555	9,555
Aggregate Fair Value	9,555	9,555
Long-term Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost Basis	1,225	1,225
Aggregate Fair Value	1,225	1,225
Long-term Investments [Member] \| Certificates of Deposit [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost Basis	1,225	1,225
Aggregate Fair Value	$1,225	$1,225

Goodwill_InProcess_Research_an2

Goodwill, In-Process Research and Development and Other Intangible Assets, Net - Summary of Carrying Amount of Goodwill and Change in Balance (Detail) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Intangible Liability Disclosure [Abstract]
Beginning balance	$61,390	$61,596
Additions	0	0
Impairment	0	0
Foreign currency translation impact	-167	-2
Ending balance	$61,223	$61,594

Goodwill_InProcess_Research_an3

Goodwill, In-Process Research and Development and Other Intangible Assets, Net - Summary of Carrying Value of In-Process Research and Development Assets (Detail) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Intangible Liability Disclosure [Abstract]
Carrying value of in-process research and development assets	$32,850	$32,850

Goodwill_InProcess_Research_an4

Goodwill, In-Process Research and Development and Other Intangible Assets, Net - Summary of Other Intangible Assets (Detail) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Other intangible assets	$21,221	$20,735
Purchased intangible assets
Other intangible assets	21,221	20,735
Other intangible assets, net	17,785	17,807
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Other intangible assets	5,796	5,310
Purchased intangible assets
Other intangible assets	5,796	5,310
Less: Accumulated amortization	-1,215	-1,118
Trade names [Member]
Finite-Lived Intangible Assets [Line Items]
Other intangible assets	3,700	3,700
Purchased intangible assets
Other intangible assets	3,700	3,700
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Other intangible assets	1,800	1,800
Purchased intangible assets
Other intangible assets	1,800	1,800
Acquired Technology Rights [Member]
Finite-Lived Intangible Assets [Line Items]
Other intangible assets	9,925	9,925
Purchased intangible assets
Other intangible assets	9,925	9,925
Purchased Intangible Assets [Member]
Purchased intangible assets
Less: Accumulated amortization	($2,221)	($1,810)

Goodwill_InProcess_Research_an5

Goodwill, In-Process Research and Development and Other Intangible Assets, Net - Estimated Useful Lives of Intangible Assets (Detail)	3 Months Ended
	Mar. 31, 2015
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives	15 years
Trade names [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives	15 years
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives	20 years
Minimum [Member] \| Acquired Technology Rights [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives	6 years
Maximum [Member] \| Acquired Technology Rights [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives	16 years

Goodwill_InProcess_Research_an6

Goodwill, In-Process Research and Development and Other Intangible Assets, Net - Additional Information (Detail) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$508	$400

Debt_Additional_Information_De

Debt - Additional Information (Detail) (USD $)	3 Months Ended
Debt - Additional Information (Detail) (USD $)	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014	Dec. 15, 2010
Debt Instrument [Line Items]
Maturity of convertible and promissory notes	15-Dec-17
Coupon rate	3.50%		3.50%
Aggregate principal amount of convertible senior notes	$143,750,000	$143,750,000		$143,750,000
Payable semi-annually in arrear	June 15 and December 15
Conversion of shares	10
Principal amount of Convertible Notes	1,000
Initial conversion price	$100
Principal amount of the Convertible Notes part of repurchase price	100.00%
Principal amount of Convertible Notes part of owners	25.00%
Effective interest rate on debt borrowing	12.50%
Number of shares issuable upon conversion of the Convertible Notes	1,437,500
Convertible value of instrument for convertible debt	126,200,000
Fair value of Convertible Notes	$164,100,000
Common Shares [Member]
Debt Instrument [Line Items]
Closing price	$87.77
Convertible Notes Payable [Member]
Debt Instrument [Line Items]
Coupon rate	3.50%			3.50%

Debt_Summary_of_Convertible_No

Debt - Summary of Convertible Notes and Equity Component (Detail) (USD $)	Mar. 31, 2015	Dec. 31, 2014	Dec. 15, 2010
In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Dec. 15, 2010
Debt Disclosure [Abstract]
Principal amount	$143,750	$143,750	$143,750
Unamortized discount	-26,879	-28,947
Net carrying amount	116,871	114,803
Equity component	$55,038	$55,038

Debt_Summary_of_Interest_Expen

Debt - Summary of Interest Expense Related to Convertible Notes (Detail) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Debt Disclosure [Abstract]
Stated amount at 3.5% coupon rate	$1,258	$1,258
Amortization of discount	2,068	1,834
Amortization of deferred financing costs	111	99
Convertible Notes interest expense, Net	$3,437	$3,191

Debt_Summary_of_Interest_Expen1

Debt - Summary of Interest Expense Related to Convertible Notes (Parenthetical) (Detail)	Mar. 31, 2015	Mar. 31, 2014
Debt Disclosure [Abstract]
Coupon rate	3.50%	3.50%

Stockholders_Equity_Additional

Stockholders' Equity - Additional Information (Detail) (USD $)	1 Months Ended	3 Months Ended		1 Months Ended
In Millions, except Share data, unless otherwise specified	Jan. 31, 2014	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2013	Jan. 30, 2014
Schedule Of Stockholders Equity [Line Items]
Common stock issued to settle liability	50,330
Stock Option [Member]
Schedule Of Stockholders Equity [Line Items]
Common stock issued upon the exercise of stock options		1,429	16,964
Restricted Stock Units (RSUs) [Member]
Schedule Of Stockholders Equity [Line Items]
Common stock upon the vesting of restricted stock units		88,184	29,999
Patents [Member]
Schedule Of Stockholders Equity [Line Items]
Additional acquired technology rights				$5
CircuLite [Member]
Schedule Of Stockholders Equity [Line Items]
Shares registered for issuance for acquisition					530,816
Shares reserved in connection with future contingent milestone payments		248,872

ShareBased_Compensation_Alloca

Share-Based Compensation - Allocation of Share-Based Compensation Expense (Detail) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Recorded share-based compensation expense	$5,976	$4,357
Cost of Revenues [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Recorded share-based compensation expense	438	447
Selling, General and Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Recorded share-based compensation expense	3,449	2,732
Research and Development [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Recorded share-based compensation expense	$2,089	$1,178

ShareBased_Compensation_Additi

Share-Based Compensation - Additional Information (Detail) (USD $)	3 Months Ended		0 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	31-May-12	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option expiry period	10 years
Cash received from options exercised	$31,000	$370,000
2012 Plan Award [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for issuance under 2012 incentive award plan			1,375,000
Share issued upon vesting of Awards	207,020
Stock options issued	720,026
Stock options outstanding	720,026
Full Value Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for issuance under 2012 incentive award plan			1,275,000
Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share issued upon vesting of Awards	1,429	16,964
Stock options issued	0
Stock options outstanding	106,000			107,000
Performance based option vesting period	4 years
Aggregate Intrinsic value options	100,000	1,200,000
Cash received from options exercised	30,000	400,000
Unrecognized compensation expense related to non-vested option awards	100,000
Expected weighted average period of recognition for Unrecognized Share-based compensation	6 months
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense related to non-vested option awards	42,000,000
Expected weighted average period of recognition for Unrecognized Share-based compensation	1 year 9 months 18 days
Contingent right to receive share of common stock	1
RSU's outstanding	72,705
Restricted stock units vested intrinsic value	$7,900,000	$2,900,000
Weighted average grant date fair value per share other than option	$89.53	$100.95
Restricted Stock Units (RSUs) [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance based option vesting period	3 years
Restricted Stock Units (RSUs) [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance based option vesting period	4 years

ShareBased_Compensation_Summar

Share-Based Compensation - Summary of Options Granted under All Plans (Detail) (Stock Option [Member], USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Stock Option [Member]
Number of Options
Outstanding, Beginning Balance	107,000
Granted	0
Exercised	-1,429	-16,964
Forfeited	0
Expired	0
Outstanding, Ending Balance	106,000
Exercisable, Ending Balance	86,000
Weighted Average Exercise Price
Outstanding, Beginning Balance	$48.32
Granted	$0
Exercised	$21.42
Forfeited	$0
Expired	$0
Outstanding, Ending Balance	$47.87
Exercisable, Ending Balance	$39.19
Weighted Average Remaining Contractual Life
Outstanding, Ending Balance	4 years 1 month 28 days
Exercisable, Ending Balance	3 years 3 months 15 days
Aggregate Intrinsic Value
Outstanding, Ending Balance	$4,284
Exercisable, Ending Balance	$4,203

ShareBased_Compensation_Summar1

Share-Based Compensation - Summary of RSU's (Detail) (Restricted Stock Units (RSUs) [Member], USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Restricted Stock Units (RSUs) [Member]
Number of Restricted Stock Units
Outstanding, Beginning Balance	589,000
Granted	286,000
Vested/Exercised	-88,184	-29,999
Forfeited	-14,000
Expired	0
Outstanding, Ending Balance	773,000
Weighted Average Remaining Contractual Life
Outstanding, Ending Balance	1 year 9 months 26 days
Aggregate Intrinsic Value
Outstanding, Ending Balance	$67,860

Net_Loss_Per_Share_AntiDilutiv

Net Loss Per Share - Anti-Dilutive Securities Excluded from Computation of Weighted Average Shares Outstanding (Detail)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Convertible Promissory Notes [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded	1,438	1,438
Stock Compensation Plan [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded	879	851

Business_Segment_Geographic_Ar2

Business Segment, Geographic Areas and Major Customers - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
	Customer	Customer
	Segment
Segment Reporting [Abstract]
Number of reportable segments	1
Number of customers exceeding ten percent of sales	0	0
Percentage of minimum product sales	10.00%	10.00%

Business_Segment_Geographic_Ar3

Business Segment, Geographic Areas and Major Customers - Product Sales by Geographic Location (Detail) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue, net	$70,021	$66,472
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue, net	42,189	33,788
Germany [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue, net	12,741	14,678
International, Excluding Germany [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue, net	$15,091	$18,006

Commitments_and_Contingencies_

Commitments and Contingencies - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Commitments And Contingencies [Line Items]
Purchase order commitments	Approximately $33.6 million
Purchase order commitments	$33,600,000
Maximum period for purchase order commitments	1 year
Contingent consideration	45,840,000	43,740,000
Minimum [Member]
Commitments And Contingencies [Line Items]
Performance milestone payment term	8 years
Maximum [Member]
Commitments And Contingencies [Line Items]
Performance milestone payment term	10 years
Aggregate milestone payments	$320,000,000