Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 19, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Amendment Flag | false | ||
Document Type | 10-K | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000730272 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Period End Date | Dec. 31, 2020 | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity File Number | 000-14656 | ||
Entity Registrant Name | REPLIGEN CORP | ||
Entity Filer Category | Large Accelerated Filer | ||
Trading Symbol | RGEN | ||
Title of 12(b) Security | Common Stock | ||
Security Exchange Name | NASDAQ | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 04-2729386 | ||
Entity Address, Address Line One | 41 Seyon Street, Bldg. 1, Suite 100 | ||
Entity Address, City or Town | Waltham | ||
Entity Address, State or Province | MA | ||
Entity Address, Postal Zip Code | 02453 | ||
City Area Code | 781 | ||
Entity Shell Company | false | ||
Smaller reporting company | false | ||
Emerging growth company | false | ||
Local Phone Number | 250-0111 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Public Float | $ 5,711,511,345 | ||
Entity Common Stock, Shares Outstanding | 54,771,343 | ||
ICFR Auditor Attestation Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 717,292 | $ 528,392 |
Restricted cash | 9,015 | |
Accounts receivable, net of reserves of $762 and $525 at December 31, 2020 and December 31, 2019, respectively | 71,257 | 43,068 |
Royalties and other receivables | 132 | 148 |
Unbilled receivables | 456 | |
Inventories, net | 95,025 | 54,832 |
Prepaid expenses and other current assets | 18,676 | 5,917 |
Total current assets | 902,382 | 641,828 |
Property, plant and equipment, net | 66,870 | 48,455 |
Intangible assets, net | 287,100 | 212,552 |
Goodwill | 618,305 | 468,413 |
Deferred tax assets | 2,481 | 2,920 |
Operating lease right of use assets | 25,176 | 25,707 |
Other assets | 573 | 238 |
Total assets | 1,902,887 | 1,400,113 |
Current liabilities: | ||
Accounts payable | 16,880 | 11,425 |
Operating lease liability | 5,254 | 3,557 |
Accrued liabilities | 53,085 | 33,331 |
Convertible senior notes, current portion, net | 243,737 | |
Total current liabilities | 318,956 | 48,313 |
Convertible senior notes, net | 232,767 | |
Deferred tax liabilities | 27,032 | 29,944 |
Operating lease liability, long-term | 26,425 | 26,995 |
Other liabilities, long-term | 1,324 | 2,326 |
Total liabilities | 373,737 | 340,345 |
Commitments and contingencies (Note 11) | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value, 5,000,000 shares authorized, no shares issued or outstanding | ||
Common stock, $0.01 par value; 80,000,000 shares authorized; 54,760,837 shares at December 31, 2020 and 52,078,258 shares at December 31, 2019 issued and outstanding | 548 | 521 |
Additional paid-in capital | 1,460,748 | 1,068,431 |
Accumulated other comprehensive income (loss) | 2,085 | (15,027) |
Accumulated earnings | 65,769 | 5,843 |
Total stockholders' equity | 1,529,150 | 1,059,768 |
Total liabilities and stockholders' equity | $ 1,902,887 | $ 1,400,113 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts receivable, reserve for doubtful accounts | $ 762 | $ 525 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
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 | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 80,000,000 | 80,000,000 |
Common stock, shares issued | 54,760,837 | 52,078,258 |
Common stock, shares outstanding | 54,760,837 | 52,078,258 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Revenue: | |||||
Revenue | $ 366,260 | $ 270,245 | $ 194,032 | ||
Costs and operating expenses: | |||||
Cost of product revenue | 156,634 | 119,099 | 86,531 | ||
Research and development | 20,182 | 19,450 | 15,821 | ||
Selling, general and administrative | 119,621 | 95,613 | 65,692 | ||
Total costs and operating expenses | 296,437 | 234,162 | 168,044 | ||
Income from operations | 69,823 | 36,083 | 25,988 | ||
Other (expenses) income: | |||||
Investment income | 1,741 | 5,324 | 1,895 | ||
Loss on extinguishment of debt | (5,650) | ||||
Interest expense | (12,133) | (9,292) | (6,709) | ||
Other (expenses) income | (214) | (314) | 262 | ||
Other expenses, net | (10,606) | (9,932) | (4,552) | ||
Income before income taxes | 59,217 | 26,151 | 21,436 | ||
Income tax (benefit) provision | (709) | 4,740 | 4,819 | ||
Net income | $ 59,926 | $ 21,411 | $ 16,617 | ||
Earnings per share: | |||||
Basic | $ 1.14 | $ 0.44 | $ 0.38 | ||
Diluted | $ 1.11 | $ 0.44 | $ 0.37 | ||
Weighted average common shares outstanding: | |||||
Basic | 52,554 | 48,343 | 43,767 | ||
Diluted | 53,892 | 49,206 | 45,471 | ||
Net income | $ 59,926 | $ 21,411 | $ 16,617 | ||
Other comprehensive income (loss): | |||||
Foreign currency translation adjustment | 17,112 | (3,134) | (5,530) | ||
Comprehensive income | 77,038 | 18,277 | 11,087 | ||
Products | |||||
Revenue: | |||||
Revenue | 366,136 | [1] | 270,097 | [2] | 193,891 |
Royalty and Other Revenue | |||||
Revenue: | |||||
Revenue | $ 124 | $ 148 | $ 141 | ||
[1] | 2020 revenue for filtration products includes revenue related to EMT from July 13, 2020, NMS from October 20, 2020 and ARTeSYN from December 3, 2020. | ||||
[2] | 2019 revenue includes process analytics revenue related to C Technologies from June 1, 2019 through December 31, 2019. |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Earnings/(Deficit) |
Balance at Dec. 31, 2017 | $ 591,548 | $ 436 | $ 628,983 | $ (6,363) | $ (31,508) |
Balance (in shares) at Dec. 31, 2017 | 43,587,079 | ||||
Net income | 16,617 | 16,617 | |||
Issuance of common stock for debt conversion | 0 | $ 0 | 0 | ||
Issuance of common stock for debt conversion (in shares) | 2 | ||||
Exercise of stock options and vesting of stock units | 3,418 | $ 3 | 3,415 | ||
Exercise of stock options and vesting of stock units (in shares) | 330,297 | ||||
Stock-based compensation expense | 10,192 | 10,192 | |||
Balance at Dec. 31, 2018 | 615,568 | $ 439 | 642,590 | (11,893) | (15,568) |
Balance (in shares) at Dec. 31, 2018 | 43,917,378 | ||||
Cumulative effect of accounting changes | (677) | (677) | |||
Translation adjustment | (5,530) | (5,530) | |||
Net income | 21,411 | 21,411 | |||
Issuance of common stock for debt conversion | 198,757 | $ 23 | 198,734 | ||
Issuance of common stock for debt conversion (in shares) | 2,316,229 | ||||
Reduction of equity component from debt conversion, net of tax | (200,079) | (200,079) | |||
Exercise of stock options and vesting of stock units | 1,167 | $ 3 | 1,164 | ||
Exercise of stock options and vesting of stock units (in shares) | 339,329 | ||||
Issuance of commons stock pursuant to the acquisition | 53,938 | $ 8 | 53,930 | ||
Issuance of commons stock pursuant to the acquisition, (in shares) | 779,221 | ||||
Tax withholding on vesting of restricted stock units | (490) | $ 0 | (490) | ||
Tax withholding on vesting of restricted stock units (in shares) | (5,430) | ||||
Equity component of 0.375% senior convertible notes, net of tax | 39,070 | 39,070 | |||
Proceeds from issuance of common stock, net of issuance costs | 320,713 | $ 48 | 320,665 | ||
Proceeds from issuance of common stock, net of issuance costs (in shares) | 4,731,531 | ||||
Stock-based compensation expense | 12,847 | 12,847 | |||
Balance at Dec. 31, 2019 | 1,059,768 | $ 521 | 1,068,431 | (15,027) | 5,843 |
Balance (in shares) at Dec. 31, 2019 | 52,078,258 | ||||
Cumulative effect of accounting changes | 5,843 | ||||
Translation adjustment | (3,134) | (3,134) | |||
Net income | 59,926 | 59,926 | |||
Exercise of stock options and vesting of stock units | 8,140 | $ 6 | 8,134 | ||
Exercise of stock options and vesting of stock units (in shares) | 584,589 | ||||
Issuance of commons stock pursuant to the acquisition | 69,422 | $ 4 | 69,418 | ||
Issuance of commons stock pursuant to the acquisition, (in shares) | 372,990 | ||||
Proceeds from issuance of common stock, net of issuance costs | 297,775 | $ 17 | 297,758 | ||
Proceeds from issuance of common stock, net of issuance costs (in shares) | 1,725,000 | ||||
Stock-based compensation expense | 17,007 | 17,007 | |||
Balance at Dec. 31, 2020 | 1,529,150 | $ 548 | $ 1,460,748 | 2,085 | $ 65,769 |
Balance (in shares) at Dec. 31, 2020 | 54,760,837 | ||||
Cumulative effect of accounting changes | 65,769 | ||||
Translation adjustment | $ 17,112 | $ 17,112 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Proceeds from issuance of common stock,issuance costs | $ 400 | $ 18,607 |
0.375% Convertible Senior Notes due 2024 | ||
Senior convertible notes | 0.375% |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net income | $ 59,926 | $ 21,411 | $ 16,617 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 27,067 | 20,868 | 15,778 |
Amortization of debt discount and issuance costs | 10,970 | 7,536 | 4,248 |
Stock-based compensation expense | 17,007 | 12,847 | 10,192 |
Deferred income taxes, net | (3,992) | (624) | 71 |
Loss on extinguishment of debt | 5,650 | ||
Other | 267 | 663 | (3) |
Changes in operating assets and liabilities, excluding impact of acquisitions: | |||
Accounts receivable | (21,020) | (7,726) | (6,101) |
Royalties and other receivables | 128 | (104) | 7 |
Unbilled receivables | 456 | 2,146 | (2,602) |
Inventories | (29,260) | (9,314) | (4,042) |
Prepaid expenses and other assets | (4,870) | (595) | (1,769) |
Operating lease right of use assets | 3,583 | (4,662) | |
Other assets | (281) | (66) | |
Accounts payable | 2,462 | 662 | 2,266 |
Accrued expenses | 1,037 | 13,096 | (1,398) |
Operating lease liability | (1,964) | 5,447 | |
Long-term liabilities | 1,109 | (19) | (494) |
Total cash provided by operating activities | 62,625 | 67,216 | 32,770 |
Cash flows from investing activities: | |||
Additions to capitalized software costs | (3,889) | (4,650) | (2,147) |
Developed technology intangible asset payment | (1,255) | ||
Acquisition of assets, net of cash acquired | (175,041) | (182,154) | |
Purchases of property, plant and equipment | (22,455) | (18,504) | (10,635) |
Total cash used in investing activities | (201,385) | (205,308) | (14,037) |
Cash flows from financing activities: | |||
Proceeds from issuance of senior convertible notes, net of issuance costs | 278,466 | ||
Proceeds from issuance of common stock, net of issuance costs | 297,775 | 320,713 | |
Exercise of stock options | 8,151 | 1,167 | 3,418 |
Repayment of senior convertible notes | (114,989) | (11) | |
Payment of tax withholding obligation on vesting of restricted stock | (10) | (490) | |
Total cash provided by financing activities | 305,916 | 484,867 | 3,407 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 12,729 | (3,190) | (2,077) |
Net increase in cash, cash equivalents and restricted cash | 179,885 | 343,585 | 20,063 |
Cash, cash equivalents and restricted cash, beginning of period | 537,407 | 193,822 | 173,759 |
Cash, cash equivalents and restricted cash, end of period | 717,292 | 537,407 | 193,822 |
Supplemental disclosure of cash flow information: | |||
Income taxes paid | 10,279 | 6,505 | 4,046 |
Interest paid | 1,066 | 1,484 | 2,444 |
Supplemental disclosure of non-cash investing and financing activities: | |||
Assets acquired under operating leases | 3,349 | 8,663 | |
Fair value of 2,316,229 shares of common stock issued for conversion of convertible notes | 198,757 | ||
Non-cash effect of adoption of ASU 2016-16 | 5,609 | ||
Property, plant and equipment related to lease incentives | $ 2,270 | ||
C Technologies Inc | |||
Supplemental disclosure of non-cash investing and financing activities: | |||
Fair value of common stock issued for acquisition | $ 53,938 | ||
ARTeSYN Biosolutions Holdings Ireland Limited | |||
Supplemental disclosure of non-cash investing and financing activities: | |||
Fair value of common stock issued for acquisition | $ 69,422 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) | 12 Months Ended |
Dec. 31, 2020shares | |
Business Acquisitions: | |
Number of shares Issued for Conversion | 2,316,229 |
ARTeSYN Biosolutions Holdings Ireland Limited | |
Business Acquisitions: | |
Shares of common stock issued for acquisition | 372,990 |
Organization and Nature of Busi
Organization and Nature of Business | 12 Months Ended |
Dec. 31, 2020 | |
Organization and Nature of Business | 1. Organization and Nature of Business Repligen Corporation (NASDAQ:RGEN) is a global life sciences company that develops and commercializes highly innovative bioprocessing technologies and systems that increase efficiencies and flexibility in the process of manufacturing biological drugs. The Company’s franchises include Filtration (XCell ATF ™ ™ ™ ® ® ® single-use ® ® ® “Summary of Significant Accounting Policies – Segment Reporting,” A majority of our 15 key manufacturing sites are located in the United States (California, Massachusetts, New Jersey and New York). Outside the United States, we have manufacturing sites in Estonia, Germany, Ireland, the Netherlands and Sweden. The Company is subject to a number of risks typically associated with companies in the biotechnology industry. These risks principally include the Company’s dependence on key customers, development by the Company or its competitors of new technological innovations, dependence on key personnel, protection of proprietary technology, compliance with the FDA and other governmental regulations and approval requirements, as well as the ability to grow the Company’s business and obtain adequate funding to finance this growth. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and assumptions by management affect the Company’s revenue recognition for multiple element arrangements, allowance for credit losses, the net realizable value of inventory, valuations and purchase price allocations related to business combinations, expected future cash flows including growth rates, discount rates, terminal values and other assumptions and estimates used to evaluate the recoverability of long-lived assets, estimated fair values of intangible assets and goodwill, amortization methods and periods, warranty reserves, certain accrued expenses, stock-based compensation, tax reserves and recoverability of the Company’s net deferred tax assets and related valuation allowance. Although the Company regularly assesses these estimates, actual results could differ materially from these estimates. Changes in estimates are recorded in the period in which they become known. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. Basis of Presentation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Repligen Sweden AB, Repligen GmbH, Spectrum ® Non-Metallic Foreign Currency The Company translates the assets and liabilities of its foreign subsidiary at rates in effect at the end of the reporting period. Revenues and expenses are translated at average rates in effect during the reporting period. Translation adjustments, including adjustments related to the Company’s intercompany loan with Repligen Sweden AB and Repligen Sweden AB’s intercompany loan with Repligen GmbH, are remeasured at each period end and included in accumulated other comprehensive loss. Revenue Recognition We generate revenue from the sale of bioprocessing products, equipment devices, and related consumables used with these equipment devices to customers in the life sciences and biopharmaceutical industries. Under Accounting Standard Codification No. (“ASC”) 606, “ Revenue from Contracts with Customers,” When determining the transaction price of a contract, an adjustment is made if payment from a customer occurs either significantly before or significantly after performance, resulting in a significant financing component. Applying the practical expedient in paragraph 606-10-32-18, Contracts with customers may contain multiple performance obligations. For such arrangements, the transaction price is allocated to each performance obligation based on the estimated relative standalone selling prices of the promised products or services underlying each performance obligation. The Company determines standalone selling prices based on the price at which the performance obligation is sold separately. If the standalone selling price is not observable through past transactions, the Company estimates the standalone selling price taking into account available information such as market conditions and internally approved pricing guidelines related to the performance obligations. The Company recognizes product revenue under the terms of each customer agreement upon transfer of control to the customer, which occurs at a point in time. Shipping and handling fees are recorded as a component of product revenue, with the associated costs recorded as a component of cost of product revenue. Risks and Uncertainties The Company evaluates its operations periodically to determine if any risks and uncertainties exist that could impact its operations in the near term. The Company does not believe that there are any significant risks that have not already been disclosed in the consolidated financial statements. A loss of certain suppliers could temporarily disrupt operations, although alternate sources of supply exist for these items. The Company has mitigated these risks by working closely with key suppliers, identifying alternate sources and developing contingency plans. Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents include cash on hand and on deposit. Highly liquid investments in money market mutual funds with an original maturity of three months or less are classified as cash equivalents. All cash equivalents are carried at cost, which approximates fair value. Restricted cash represents cash that is restricted as to withdrawal or usage. There was no restriction on the Company’s cash balance as of December 31, 2020. In connection with the Company’s acquisition of C Technologies on May 31, 2019, cash was held and due to employees based on their continued employment with the Company one year after the date of the close of the acquisition. As of December 31, 2019, $9.0 million, which represented this amount due to employees, was carried as restricted cash on the Company’s consolidated balance sheet. Subsequently, during the second quarter of 2020, this $9.0 million was paid to employees. The following is a summary of the Company’s cash, cash equivalents, and restricted cash total as presented in the Company’s consolidated statements of cash flows for the years ended December 31, 2020, 2019 and 2018: For the Years Ended December 31, 2020 2019 2018 (Amounts in thousands) Cash and cash equivalents $ 717,292 $ 528,392 $ 193,822 Restricted cash — 9,015 — Total cash, cash equivalents, and restricted cash $ 717,292 $ 537,407 $ 193,822 There were no realized gains or losses on investments for the years ended December 31, 2020, 2019 and 2018. Fair Value Measurement In determining the fair value of its assets and liabilities, the Company uses various valuation approaches. The Company employs a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing the asset or liability and are developed based on the best information available in the circumstances. The fair value hierarchy is broken down into three levels based on the source of inputs as follows: Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 – Valuations based on quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active and models for which all significant inputs are observable, either directly or indirectly. Level 3 – Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The availability of observable inputs can vary among the various types of financial assets and liabilities. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for financial statement disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is categorized is based on the lowest level input that is significant to the overall fair value measurement. As of December 31, 2020 and 2019, cash and cash equivalents on the Company’s consolidated balance sheets included $549.0 million and $415.6 million, respectively, in money market accounts. These funds are valued on a recurring basis using Level 1 inputs. In July 2019, the Company issued $287.5 million aggregate principal amount of the Company’s 0.375% Convertible Senior Notes due July 15, 2024 (the “2019 Notes”). Interest is payable semi-annually in arrears on January 15 and July 15 of each year. The 2019 Notes will mature on July 15, 2024 unless earlier converted or repurchased in accordance with their terms. As of December 31, 2020, the carrying value of the 2019 Notes was $243.7 million, net of unamortized discount, and the fair value of the 2019 Notes was $501.0 million. The fair value of the 2019 Notes is a Level 1 valuation and was determined based on the most recent trade activity of the 2019 Notes as of December 31, 2020. The 2019 Notes are discussed in more detail in Note 12, “Convertible Senior Notes,” There were no remeasurements to fair value during the year ended December 31, 2020 of financial assets and liabilities that are not measured at fair value on a recurring basis. Allowance for credit losses We establish an allowance for credit losses through a review of several factors, including historical collection experience, current aging status of the customer accounts, and current financial condition of our customers. Losses are charged against the allowance when the customer accounts are determined to be uncollectible. Inventories Inventories relate to the Company’s bioprocessing business. The Company values inventory at cost or, if lower, net realizable value, using the first-in, first-out work-in-process cost basis in excess of its expected net realizable value, and inventory in excess of expected requirements to cost of product revenue. Manufacturing of bioprocessing finished goods is done to order and tested for quality specifications prior to shipment. A change in the estimated timing or amount of demand for the Company’s products could result in additional provisions for excess inventory quantities on hand. Any significant unanticipated changes in demand or unexpected quality failures could have a significant impact on the value of inventory and reported operating results. During all periods presented in the accompanying financial statements, there have been no material adjustments related to a revised estimate of inventory valuations. Work-in-process Lease Accounting The Company adopted ASU 2016-02, “Leases (Topic 842) right-of-use A lease qualifies as a finance lease if any of the following criteria are met at the inception of the lease: (i) there is a transfer of ownership of the leased asset to the Company by the end of the lease term, (ii) the Company holds an option to purchase the leased asset that it is reasonably certain to exercise, (iii) the lease term is for a major part of the remaining economic life of the leased asset, (iv) the present value of the sum of lease payments equals or exceeds substantially all of the fair value of the leased asset, or (v) the nature of the leased asset is specialized to the point that it is expected to provide the lessor no alternative use at the end of the lease term. All other leases are recorded as operating leases. Finance and operating lease assets and liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease term using the discount rate implicit in the lease. If the rate implicit is not readily determinable, the Company utilizes its incremental borrowing rate at the lease commencement date. Operating lease assets are further adjusted for prepaid or accrued lease payments. Operating lease payments are expensed using the straight-line method as an operating expense over the lease term. Finance lease assets are amortized to depreciation expense using the straight-line method over the shorter of the useful life of the related asset or the lease term. Finance lease payments are bifurcated into (i) a portion that is recorded as imputed interest expense and (ii) a portion that reduces the finance liability associated with the lease. The Company does not separate lease and non-lease Finance leases are recorded in property, plant and equipment, net, other current liabilities and long-term finance lease liabilities and operating leases are recorded in operating lease right of use assets, operating lease liability and operating lease liability, long-term on the Company’s consolidated balance sheet. Certain of the Company’s operating leases where the Company is the lessee provide for minimum annual payments that increase over the life of the lease. Some of these leases include obligations to pay for other services, such as operations and maintenance. For leases of property, the Company accounts for these other services as a component of the lease. The aggregate minimum annual payments are expensed on the straight-line basis beginning when the Company takes possession of the property and extending over the term of the related lease, including renewal options when the exercise of the option is reasonably assured as an economic penalty may be incurred if the option is not exercised. The Company also accounts in its straight-line computation for the effect of any “rental holidays.” Operating lease assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at the lease commencement date based on the estimated present value of the fixed lease payments, reduced by landlord incentives using a discount rate based on similarly secured borrowings available to the Company. Most of the leases do not provide implicit interest rates and therefore the Company determines the discount rate based on its incremental borrowing rate. The incremental borrowing rate for the Company’s leases is determined based on lease term and currency in which the lease payments are made. Accrued Liabilities The Company estimates accrued liabilities by identifying services performed on the Company’s behalf, estimating the level of service performed and determining the associated cost incurred for such service as of each balance sheet date. For example, the Company would accrue for professional and consulting fees incurred with law firms, audit and accounting service providers and other third-party consultants. These expenses are determined by either requesting those service providers to estimate unbilled services at each reporting date for services incurred or tracking costs incurred by service providers under fixed fee arrangements. The Company has processes in place to estimate the appropriate amounts to record for accrued liabilities, which principally involve the applicable personnel reviewing the services provided. In the event that the Company does not identify certain costs that have begun to be incurred or the Company under or over-estimates the level of services performed or the costs of such services, the reported expenses for that period may be too low or too high. The date on which certain services commence, the level of services performed on or before a given date, and the cost of such services often require the exercise of judgment. The Company makes these judgments based upon the facts and circumstances known at the date of the financial statements. Income Taxes Deferred taxes are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. Valuation allowances are provided, if, based upon the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company accounts for uncertain tax positions using a “more-likely-than-not” Property, Plant & Equipment Property, plant & equipment is recorded at cost less allowances for depreciation. Depreciation is calculated using the straight-line method over the estimated useful life of the asset as follows: Classification Estimated Useful Life Buildings Thirty years Leasehold improvements Shorter of the term of the lease or estimated useful life Equipment Three Furniture, fixtures and office equipment Three Computer hardware and software Three Upon disposal of property, plant & equipment, the cost of the asset and the accumulated depreciation are removed from the accounts and the resulting gain or loss is reflected in our results of operations. Fully depreciated assets are not removed from the accounts until they are physically disposed of. Certain systems development costs related to the purchase, development and installation of computer software developed or obtained for internal use are capitalized and depreciated over the estimated useful life of the related project. Costs incurred prior to the development stage, as well as maintenance, training costs, and general and administrative expenses are expensed as incurred. Earnings Per Share Basic earnings per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income available to common shareholders by the weighted-average number of common shares and dilutive common share equivalents then outstanding. Potential common share equivalents consist of restricted stock awards and the incremental common shares issuable upon the exercise of stock options and warrants. Under the treasury stock method, unexercised “in-the-money” A reconciliation of basic and diluted share amounts is as follows: For the Years Ended 2020 2019 2018 (Amounts in thousands, except Net income $ 59,926 $ 21,411 $ 16,617 Weighted average shares used in computing net income per share - basic 52,554 48,343 43,767 Effect of dilutive shares: Options and stock units 971 864 581 Convertible senior notes 367 — 1,123 Dilutive potential common shares 1,338 864 1,704 Weighted average shares used in computing net income per share - diluted 53,892 49,206 45,471 Earnings per share: Basic $ 1.14 $ 0.44 $ 0.38 Diluted $ 1.11 $ 0.44 $ 0.37 At December 31, 2020, there were outstanding options to purchase 696,711 shares of the Company’s common stock at a weighted average exercise price of $43.88 per share and 665,540 shares of common stock issuable upon the vesting of stock units which include restricted stock units and performance stock units. For the year ended December 31, 2020, 98,048 shares of the Company’s common stock were excluded from the calculation of diluted earnings per share because they would have had an anti-dilutive effect. At December 31, 2019, there were outstanding options to purchase 957,559 shares of the Company’s common stock at a weighted average exercise price of $30.81 per share and 734,984 shares of common stock issuable upon the vesting of stock units. For the year ended December 31, 2019, 104,316 shares of the Company’s common stock were excluded from the calculation of diluted earnings per share because the exercise prices of the stock options were greater than or equal to the average price of the common shares and were therefore, anti-dilutive. At December 31, 2018, there were outstanding options to purchase 998,226 shares of the Company’s common stock at a weighted average exercise price of $27.54 per share and 705,413 shares of common stock issuable upon the vesting of stock units. For the year ended December 31, 2017, 479,854 shares of the Company’s common stock were excluded from the calculation of diluted earnings per share because the exercise prices of the stock options were greater than or equal to the average price of the common shares and were therefore, anti-dilutive. As provided by the terms of the indenture underlying the senior convertible notes, the Company has a choice to settle the conversion obligation for the 2019 Notes in cash, shares or any combination of the two. The Company currently intends to settle the par value of the 2019 Notes in cash and any excess conversion premium in shares. The Company applies the provisions of ASC 260, “Earnings Per Share”, 10-45-44, Segment Reporting The Company views its operations, makes decisions regarding how to allocate resources and manages its business as one reportable segment and one reporting unit. As a result, the financial information disclosed herein represents all of the material financial information related to the Company. The following table represents product revenues by product line: For the Years Ended December 31, 2020 (1) 2019 (2) 2018 (Amounts in thousands) Filtration products $ 174,896 $ 119,534 $ 90,586 Chromatography products 73,551 64,635 45,326 Process analytics products 33,346 16,405 — Proteins products 80,732 65,124 54,375 Other 3,611 4,399 3,604 Total product revenue $ 366,136 $ 270,097 $ 193,891 (1) 2020 revenue for filtration products includes revenue related to EMT from July 13, 2020, NMS from October 20, 2020 and ARTeSYN from December 3, 2020. (2) 2019 revenue for process analytics products includes revenue related to C Technologies from May 31, 2019 through December 31, 2019. Revenue from filtration products includes the XCell ATF systems and consumables as well as the KrosFlo and SIUS filtration products. Revenue from chromatography products includes the OPUS chromatography PPCs, chromatography resins and ELISA test kits. Revenue from process analytics products includes the SoloVPE and FlowVPE devices. Revenue from protein products includes the Protein A affinity ligands and cell culture growth factors. Other revenue primarily consists of revenue from the sale of operating room products to hospitals as well as freight revenue. The following table represents the Company’s total revenue by geographic area (based on the location of the customer): For the Years Ended 2020 2019 2018 Revenue by customers’ geographic locations: North America 48 % 51 % 48 % Europe 38 % 37 % 40 % APAC/Other 14 % 12 % 12 % Total revenue 100 % 100 % 100 % The following table represents the Company’s total assets by geographic area: December 31, 2020 2019 (Amounts in thousands) Total assets by geographic locations: North America $ 1,697,149 $ 1,260,217 Europe 188,698 133,599 APAC 17,040 6,297 Total assets by geographic location $ 1,902,887 $ 1,400,113 The following table represents the Company’s long-lived assets by geographic area: December 31, 2020 2019 (Amounts in Long-lived assets by geographic locations: North America $ 78,429 $ 66,756 Europe 12,918 6,775 APAC 1,272 869 Total long-lived assets by geographic location $ 92,619 $ 74,400 Concentrations of Credit Risk and Significant Customers Financial instruments that subject the Company to significant concentrations of credit risk primarily consist of cash and cash equivalents, marketable securities and accounts receivable. Per the Company’s investment policy, cash equivalents and marketable securities are invested in financial instruments with high credit ratings and credit exposure to any one issue, issuer (with the exception of U.S. Treasury obligations) and type of instrument is limited. At December 31, 2020 and 2019, the Company had no investments associated with foreign exchange contracts, options contracts or other foreign hedging arrangements. Concentration of credit risk with respect to accounts receivable is limited to customers to whom the Company makes significant sales. While a reserve for the potential write-off Revenue from significant customers that represent 10% or more of the Company’s total revenue is as follows: For the Years Ended 2020 2019 2018 MilliporeSigma 11 % 13 % 15 % Cytiva (formerly GE Healthcare) N/A 12 % 15 % Significant accounts receivable balances representing 10% or more of the Company’s total trade accounts receivable and royalties and other receivable balances at December 31, 2020 and 2019, include the accounts receivable balance with Cytiva (formerly GE Healthcare), which represented 11% and 18%, respectively of the Company’s total trade accounts receivable and royalties and other receivable balances. Business Combinations, Goodwill and Intangible Assets Business Combinations Total consideration transferred for acquisitions is allocated to the tangible and intangible assets acquired and liabilities assumed, if any, based on their fair values at the dates of acquisition. This purchase price allocation process requires management to make significant estimates and assumptions with respect to intangible assets and deferred revenue. The fair value of identifiable intangible assets is based on detailed valuations that use information and assumptions determined by management. Any excess of purchase price over the fair value of the net tangible and intangible assets acquired is allocated to goodwill. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as any contingent consideration, where applicable, that the Company’s estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s consolidated statements of comprehensive income. Any excess of the fair value of the net tangible and intangible assets acquired over the purchase price is recognized in the consolidated statements of comprehensive income. The fair value of contingent consideration includes estimates and judgments made by management regarding the probability that future contingent payments will be made and the extent of royalties to be earned in excess of the defined minimum royalties. Management updates these estimates and the related fair value of contingent consideration at each reporting period. During the measurement period, these changes in the fair value of contingent consideration are recorded to goodwill. Subsequent to the end of the measurement period, they will be recorded in the consolidated statements of comprehensive income. The Company uses the income approach to determine the fair value of certain identifiable intangible assets including customer relationships and developed technology. This approach determines fair value by estimating after-tax after-tax Goodwill Goodwill is not amortized and is reviewed for impairment at least annually at the reporting unit level. As of December 31, 2018, the Company concluded that it operated as two reporting units and performed the 2018 goodwill impairment test using two reporting units. In 2019, the Company reorganized its reporting structure and changed the way the CODM views the Company’s operations and allocates its resources. Accordingly, the Company operates as one reporting unit as of the goodwill impairment measurement date of December 31, 2020. During the qualitative assessment of the Company’s one reporting unit during the 2020 goodwill impairment testing, it was determined that it was not more likely than not that its fair value was less than its carrying amount. As such, a quantitative impairment assessment was not required as of December 31, 2020. If an event occurs or circumstances change that would more likely than not reduce the fair value of its reporting unit below its carrying value, the Company will evaluate its goodwill for impairment between annual tests. There was no impairment to goodwill and therefore no impairment charge recorded for the year ended December 31, 2019. Intangible Assets Intangible assets with a definite life are amortized over their useful lives using the straight-line method and the amortization expense is recorded within cost of product revenue, research and development and selling, general and administrative expense in the consolidated statements of comprehensive income. Intangible assets and their related useful lives are reviewed at least annually to determine if any adverse conditions exist that would indicate the carrying value of these assets may not be recoverable. More frequent impairment assessments are conducted if certain conditions exist, including a change in the competitive landscape, any internal decisions to pursue new or different technology strategies, a loss of a significant customer, or a significant change in the marketplace, including changes in the prices paid for the Company’s products or changes in the size of the market for the Company’s products. If impairment indicators are present, the Company determines whether the underlying intangible asset is recoverable through estimated future undiscounted cash flows. If the asset is not found to be recoverable, it is written down to the estimated fair value of the asset based on the sum of the future discounted cash flows expected to result from the use and disposition of the asset. If the estimate of an intangible asset’s remaining useful life is changed, the remaining carrying amount of the intangible asset is amortized prospectively over the revised remaining useful life. The Company continues to believe that its definite-lived intangible assets are recoverable at December 31, 2020. Indefinite-lived intangible assets are reviewed for impairment at least annually. There has been no impairment of our intangible assets for the periods presented. Stock Based Compensation The Company measures stock-based compensation cost at the grant date based on the estimated fair value of the award and recognizes it as expense over the employee’s requisite service period on a straight-line basis. The Company records the expense for share-based awards subject to performance-based milestone vesting over the remaining service period when management determines that achievement of the milestone is probable. Management evaluates whether the achievement of a performance-based milestone is probable as of the reporting date. The Company has no awards that are subject to market conditions. The Company recognizes stock-based compensation expense based upon options that are ultimately expected to vest, and accordingly, such compensation expense has been adjusted by an amount of estimated forfeitures. The Company uses the Black-Scholes option pricing model to calculate the fair value of share-based awards on the grant date. The following assumptions are used in calculating the fair value of share-based awards: Expected term Expected volatility Risk-free interest rate zero-coupon Expected dividend yield Estimated forfeiture rates non-executive non-employee Advertising Costs The Company expenses advertising costs as they are incurred. Advertising expense for the years ended December 31, 2020, 2019 and 2018 was $0.3 million, $0.1 million and $0.2 million, respectively. Recent Accounting Standards Updates We consider the applicability and impact of all Accounting Standards Updates on the Company’s consolidated financial statements. Updates not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on the Company’s consolidated financial position or results of operations. Recently issued Accounting Standards Updates that we feel may be applicable to the Company are as follows: Recently Issued Accounting Standard Updates – Adopted During the Period On May 21, 2020, the SEC announced that it would adopt amendments to the financial disclosure requirements for acquisitions and dispositions of businesses in Rules 3-05, 3-14, 8-04, 8-05, 8-06, S-X, 1-02(w), Rule 12b-2 Specific changes to the significance test include changes to the investment test component, which compares the registrant’s and its other subsidiaries’ investment in and advances to the tested subsidiary to the registrant’s aggregate worldwide market value if available, instead of the registrant’s total assets on a consolidated basis under the unamended Rule. The amendments also changed the income test component by adding a revenue component to it. The amendments are effective on January 1, 2021. However, voluntary compliance with the final amendments was permitted in advance of the effective date. As a result of the 2020 acquisitions of EMT, NMS and ARTeSYN, the Company voluntarily adopted the amendments prior to their effective date and |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2020 | |
Acquisitions | 3. Acquisitions ARTeSYN Biosolutions Holdings Ireland Limited On October 27, 2020, the Company entered into an Equity and Asset Purchase Agreement with ARTeSYN, a company organized under the laws of Ireland, Third Creek Holdings, LLC, a Nevada limited liability company, Alphinity, LLC, a Nevada limited liability company (“Alphinity”, and together with Third Creek Holdings, LLC the “Sellers”), and Michael Gagne, solely in his capacity as the representative of the Sellers, pursuant to which the Company acquired (i) all of the outstanding equity securities of ARTeSYN and (ii) certain assets from Alphinity related to the business of ARTeSYN (collectively, the “ARTeSYN Acquisition”) for approximately $200 million, comprised of approximately $130 million in cash to the Sellers and approximately $70 million in Repligen common stock to Third Creek. The transaction closed on December 3, 2020. ARTeSYN is headquartered in Waterford, Ireland and conducts its operations in Ireland, the United States and Estonia. Its suite of single-use single-use single-use ® de-bottlenecking single-use single-use hold-up Consideration Transferred The ARTeSYN Acquisition was accounted for as a purchase of a business under ASC 805, “Business Combinations” million. The estimated consideration and preliminary purchase price information has been prepared using a preliminary valuation. The final purchase price allocation will be completed upon payment of final consideration for working capital and other adjustments. The final allocation may include changes to: (1) deferred revenue; (2) inventory; (3) deferred tax liabilities, net; (4) allocations to intangible assets such as tradenames, developed technology and customer relationships as well as goodwill; (5) final consideration paid related to working capital adjustments; and (6) other assets and liabilities. The preparation of the valuation required the use of significant assumptions and estimates. Critical estimates included, but were not limited to, future expected cash flows, including projected revenues and expenses, and the applicable discount rates. These estimates were based on assumptions that Repligen believes to be reasonable. However, actual results may differ from these estimates. Total consideration transferred is as follows (amounts in thousands): Cash consideration $ 130,713 Equity consideration 69,422 Contingent consideration 1,548 Settlement of preexisting liabilities 2,310 Fair value of net assets acquired $ 203,993 Acquisition related costs are not included as a component of consideration transferred but are expensed in the periods in which the costs are incurred. The Company incurred $4.0 million in transaction costs associated with the ARTeSYN acquisition in 2020. The transaction costs are included in selling, general and administrative expenses in the consolidated statements of comprehensive income. The consideration transferred includes $1.5 million related to consideration that was deferred at the acquisition date, with payment to the Sellers contingent upon recognizing revenue on a large-scale system within 120 days of the acquisition date. This consideration is recorded at its estimated fair value as of the acquisition date, which includes the assumption of high probability of such revenue being recognized. During the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to our consolidated statements of comprehensive income. Fair Value of Net Assets Acquired The preliminary allocation of purchase price is based on the fair value of assets acquired and liabilities assumed as of the acquisition date, based on the preliminary valuation. As additional information becomes available, the Company may further revise its preliminary purchase price allocation during the remainder of the measurement period (which will not exceed 12 months from December 3, 2020). Any such revision or changes may be material. The components and estimated allocation of the purchase price consists of the following amounts (amounts in thousands): Cash and cash equivalents $ 2,982 Accounts receivable 4,811 Inventory 8,592 Prepaid expenses and other current assets 5,561 Property and equipment 1,836 Operating lease right of use asset 1,611 Other noncurrent assets 26 Customer relationships 38,400 Developed technology 27,060 Trademark and tradename 1,630 Non-competition 300 Goodwill 128,658 Accounts payable (2,161 ) Accrued liabilities (8,856 ) Deferred revenue (3,583 ) Deferred tax liabilities, net (1,240 ) Notes payable (24 ) Operating lease liability (417 ) Operating lease liability, long-term (1,193 ) Fair value of net assets acquired $ 203,993 Acquired Goodwill The goodwill of $128.7 million represents future economic benefits expected to arise from synergies from combining operations and commercial organizations to increase market presence and the extension of existing customer relationships. Substantially all of the goodwill recorded is expected to be deductible for income tax purposes. Intangible Assets The following table sets forth the components of the identified intangible assets associated with the ARTeSYN Acquisition and their estimated useful lives: Useful life Fair Value (Amounts in thousands) Customer relationships 17 years $ 38,400 Developed technology 15 years 27,060 Trademark and tradename 21 years 1,630 Non-competition 3 years 300 $ 67,390 The preliminary purchase price allocation is subject to adjustment as purchase accounting is finalized. The final purchase price allocation will be determined upon completion of final valuation analysis, and the fair value allocation of assets acquired and liabilities assumed could differ materially from the preliminary valuation analysis. The final allocation may include changes to: (1) deferred revenue; (2) inventory; (3) deferred tax liabilities, net; (4) allocations to intangible assets such as tradenames, developed technology and customer relationships as well as goodwill; (5) final consideration paid related to working capital adjustments; and (6) other assets and liabilities. Non-Metallic On October 15, 2020, the Company executed a Stock Purchase Agreement with Non-Metallic NMS, headquartered in Auburn, Massachusetts, is a manufacturer of fabricated plastics, custom containers, and related assemblies and components used in the manufacturing of biologic drugs. The acquisition of NMS allows Repligen to expand its line of single-use single-use Consideration Transferred The NMS Acquisition was accounted for as a purchase of a business under ASC 805, “ Business Combinations. ” 10-Q 1-02(w), 12b-2. Fair Value of Net Assets Acquired The preliminary allocation of purchase price is based on the fair value of assets acquired and liabilities assumed as of the acquisition date, based on the preliminary valuation. As additional information becomes available, the Company may further revise its preliminary purchase price allocation during the remainder of the measurement period (which will not exceed 12 months from October 20, 2020). The components and estimated allocation of the purchase price consist of the following amounts (amounts in thousands): Cash and cash equivalents $ 1,163 Accounts receivable 415 Inventory 334 Prepaid expenses and other current assets 13 Property and equipment 73 Operating lease right of use asset 194 Customer relationships 6,370 Developed technology 1,810 Trademark and tradename 190 Non-competition 90 Goodwill 6,784 Deferred tax assets 24 Accounts payable (96 ) Accrued liabilities (999 ) Operating lease liability (136 ) Operating lease liability, long-term (59 ) Fair value of net assets acquired $ 16,170 Acquired Goodwill The goodwill of $6.8 million represents future economic benefits expected to arise from anticipated synergies from the integration of NMS. These synergies include certain cost savings, operating efficiencies and other strategic benefits projected to be achieved as a result of the NMS Acquisition. Substantially all of the goodwill recorded is expected to be deductible for income tax purposes. Intangible Assets The following table sets forth the components of the identified intangible assets associated with the NMS Acquisition and their estimated useful lives: Useful life Fair Value (Amounts in thousands) Customer relationships 14 years $ 6,370 Developed technology 12 years 1,810 Trademark and tradename 15 years 190 Non-competition 3 years 90 $ 8,460 Engineered Molding Technology LLC On July 13, 2020, the Company completed the acquisition of 100% of the membership interests of EMT, a New York limited liability company, pursuant to a Membership Interest Purchase Agreement, dated June 26, 2020, by and among the Company, EMT, and each of Michael Pandori and Todd Etesse, the legal and beneficial owners of EMT (such acquisition, the “EMT Acquisition”). EMT, headquartered in Clifton Park, New York, is an innovator and manufacturer of single-use single-use single-use Consideration Transferred The EMT Acquisition was accounted for as a purchase of a business under ASC 805, “Business Combinations”. Acquisition-related costs are not included as a component of consideration transferred but are expensed in the periods in which the costs are incurred. The Company incurred $1.2 million of acquisition related costs associated with the EMT Acquisition in 2020. The transaction costs are included in selling, general and administrative expenses in the consolidated statements of comprehensive income. Fair Value of Net Assets Acquired The preliminary allocation of purchase price is based on the fair value of assets acquired and liabilities assumed as of the acquisition date, based on the preliminary valuation. As additional information becomes available, the Company may further revise its preliminary purchase price allocation during the remainder of the measurement period (which will not exceed 12 months from July 13, 2020). Any such revisions or changes may be material. The components and allocation of the purchase price consist of the following amounts (amounts in thousands): Cash and cash equivalents $ 69 Accounts receivable 1,057 Inventory 449 Prepaid expenses and other current assets 7 Property and equipment 472 Operating lease right of use assets 1,050 Customer relationships 11,080 Developed technology 2,910 Trademark and tradename 320 Non-compete 50 Goodwill 12,585 Accounts payable (283 ) Accrued liabilities (202 ) Operating lease liability (211 ) Operating lease liability, long-term (839 ) Fair value of net assets acquired $ 28,514 Acquired Goodwill The goodwill of $12.6 million represents future economic benefits expected to arise from anticipated synergies from the integration of EMT. These synergies include certain cost savings, operating efficiencies and other strategic benefits projected to be achieved as a result of the EMT Acquisition. Substantially all of the goodwill recorded is expected to be deductible for income tax purposes. Intangible Assets The following table sets forth the components of the identified intangible assets associated with the EMT Acquisition and their estimated useful lives: Useful life Fair Value (Amounts in thousands) Customer relationships 14 years $ 11,080 Developed technology 11 years 2,910 Trademark and tradename 14 years 320 Non-competition 3 years 50 $ 14,360 Revenue, Net Income and Pro Forma Presentation The Company has included the operating results of our 2020 acquisitions of ARTeSYN, NMS and EMT in its consolidated statements of comprehensive income since their respective acquisition dates. The Company does not consider these acquisitions to be material to its consolidated statements of comprehensive income and therefore has not included pro forma results. C Technologies On May 31, 2019, Repligen acquired C Technologies, pursuant to the terms of a Stock Purchase Agreement (the “Agreement”), by and among Repligen, C Technologies and Craig Harrison, an individual and sole stockholder of C Technologies (such acquisition, the “C Technologies Acquisition”). Acquisition-related costs are not included as a component of consideration transferred but are expensed in the periods in which the costs are incurred. The Company incurred $4.0 million in transaction costs in 2019. The transaction costs are included in selling, general and administrative expenses in the consolidated statements of comprehensive income. In connection with the transaction, an additional $9.0 million was paid to employees during the second quarter of 2020, based on their continued employment with the Company one year after the date of the close of the C Technologies Acquisition. The Company has recognized $3.7 million of compensation expense associated with this amount due to employees in 2020 and has recognized $9.0 million of compensation expense associated with this amount due since the C Technologies Acquisition. Fair Value of Net Assets Acquired The allocation of purchase price is based on the fair value of assets acquired and liabilities assumed as of the acquisition date, based on the preliminary valuation. The Company obtained this information during due diligence and through other sources. In the months after closing, the Company obtained additional information about these assets and liabilities as it learned more about C Technologies. The Company refined the estimates of fair value to more accurately allocate the purchase price. Only items identified as of the acquisition date were considered for subsequent adjustment. We made appropriate adjustments to the purchase price allocation during the measurement period, which was one year from the acquisition date. The components and allocation of the purchase price consists of the following amounts (amounts in thousands): Cash and cash equivalents $ 3,795 Restricted cash 26,933 Accounts receivable 3,044 Inventory 3,783 Prepaid expenses and other current assets 93 Fixed assets 40 Operating lease right of use asset 3,836 Customer relationships 59,680 Developed technology 28,920 Trademark and tradename 1,570 Non-competition 660 Goodwill 142,314 Deferred taxes 895 Accounts payable (436 ) Accrued liabilities (2,767 ) Accrued bonus (26,928 ) Deferred revenue (1,709 ) Operating lease liability (51 ) Operating lease liability, long-term (3,785 ) Fair value of net assets acquired $ 239,887 Acquired Goodwill The goodwill of $142.3 million represents future economic benefits expected to arise from synergies from combining operations and commercial organizations to increase market presence and the extension of existing customer relationships. Substantially all of the goodwill recorded is expected to be deductible for income tax purposes. Pursuant to the Company’s business combination accounting policy included in Note 2, “Summary of Significant Accounting Policies – Business Combinations, Goodwill and Intangible Assets,” Revenue, Net Income and Pro Forma Presentation The Company recorded revenue from C Technologies of $16.4 million from May 31, 2019, the date of acquisition, to December 31, 2019. The Company recorded a net loss from C Technologies’ results of operations of $7.4 million from May 31, 2019 to December 31, 2019. The Company has included the operating results of C Technologies in its consolidated statements of comprehensive income since the May 31, 2019 acquisition date. The following pro forma financial information presents the combined results of operations of Repligen and C Technologies as if the acquisition had occurred on January 1, 2019 after giving effect to certain pro forma adjustments. The pro forma adjustments reflected herein include only those adjustments that are directly attributable to the C Technologies Acquisition, factually supportable and have a recurring impact. These pro forma adjustments include amortization expense on the acquired identifiable intangible assets, adjustments to stock-based compensation expense for equity compensation issued to C Technologies employees and the income tax effect of the adjustments made. In addition, acquisition-related transaction costs and an accounting adjustment to record inventory at fair value were excluded from pro forma net income in 2019. Prior to the C Technologies Acquisition, C Technologies did not generate monthly or quarterly financial statements that were prepared in accordance with GAAP. The following pro forma financial information does not reflect any adjustments for anticipated expense savings resulting from the acquisition and is not necessarily indicative of the operating results that would have actually occurred had the transaction been consummated on January 1, 2019 or of future results (amounts in thousands, except per share data): December 31, 2019 2018 Total revenue $ 279,434 $ 217,739 Net income $ 23,394 $ 21,195 Earnings per share: Basic $ 0.48 $ 0.44 Diluted $ 0.48 $ 0.43 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | 4. Leases The Company is a lessee under leases of manufacturing facilities, office spaces, machinery, certain office equipment and vehicles. A majority of the Company’s leases are operating leases with remaining lease terms between one month and 10 years. Finance leases are immaterial to the Company’s consolidated financial statements. The Company determines if an arrangement qualifies as a lease and what type of lease it is at inception. The Company elected the package of practical expedients permitted under the transition guidance within the new lease standard, which among other things, allowed it to continue to account for existing leases based on the historical lease classification. The Company also elected the practical expedients to combine lease and non-lease Some of the lease agreements the Company enters into include Company options to either extend and/or early terminate the lease, the costs of which are included in the Company’s operating lease liabilities to the extent that such options are reasonably certain of being exercised. Leases with renewal options allow the Company to extend the lease term typically between 1 and 5 years per option, some of its leases have multiple options to extend. When determining if a renewal option is reasonably certain of being exercised, the Company considers several economic factors, including but not limited to, the significance of leasehold improvements incurred on the property, whether the asset is difficult to replace, underlying contractual obligations, or specific characteristics unique to that particular lease that would make it reasonably certain that the Company would exercise such options. As of December 31, 2020 and 2019, operating lease right of use assets were $25.2 million and $25.7 million, respectively and operating lease liabilities were $31.7 million and $30.6 million, respectively. The Company acquired EMT, NMS and ARTeSYN in 2020 and entered into a number of automobile leases among others. As a result, the operating right of use asset and operating lease liability balances increased by a total of $3.0 million in 2020 on their commencement dates. On July 7, 2020, the Company entered into a First Amendment to the current lease agreement associated with our Marlborough, Massachusetts facility, to expand the existing premises by 66,939 square feet and in December 2020, the Second Amendment to the current lease agreement was signed , approximately $2.8 million. Amounts related to financing leases were immaterial. The maturities of the Company’s operating lease liabilities as of December 31, 2020 are as follows (amounts in thousands): As of December 31, 2020 Amount 2021 $ 7,007 2022 5,732 2023 4,614 2024 4,162 2025 3,653 2026 and thereafter 12,949 Total future minimum lease payments 38,117 Less: amount of lease payment representing interest 6,438 Total operating lease liabilities $ 31,679 Total operating lease liabilities included on the Company’s consolidated balance sheet are as follows (amounts in thousands): December 31, 2020 2019 Operating lease liability $ 5,254 $ 3,557 Operating lease liability, long-term 26,425 26,995 Minimum operating lease payments $ 31,679 $ 30,552 Lease expense for these leases is recognized on a straight-line basis over the lease term, with variable lease payments recognized in the period those payments are incurred. For the year ended December 31, 2020 and 2019, total lease cost is comprised of the following: For the Years Ended Lease Cost 2020 2019 (Amounts in Operating lease cost $ 5,645 $ 4,480 Variable operating lease cost 2,033 1,480 Lease cost $ 7,678 $ 5,960 The following information represents supplemental disclosure for the consolidated statements of cash flows related to operating leases (amounts in thousands): For the Years Ended 2020 2019 Operating lease cost $ (5,647 ) $ (4,004 ) Most of the leases do not provide implicit interest rates and therefore the Company determines the discount rate based on its incremental borrowing rate. The incremental borrowing rate for the Company’s leases is determined based on lease term and currency in which the lease payments are made. The weighted average remaining lease term and the weighted average discount rate used to measure the Company’s operating lease liabilities as of December 31, 2020 were: Weighted average remaining lease term (years) 7.19 Weighted average discount rate 4.90 % |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Revenue Recognition | 5. Revenue Recognition The Company generates revenue from the sale of bioprocessing products, equipment devices, and related consumables used with these equipment devices to customers in the life science and biopharmaceutical industries. Under ASC 606, “Revenue from Contracts with Customers,” Disaggregation of Revenue Revenue for the years ended December 31, 2020, 2019 and 2018 was as follows (amounts in thousands, except percentages): For the Years Ended December 31, 2020 2019 2018 (Amounts in thousands) Product revenue $ 366,136 $ 270,097 $ 193,891 Royalty and other income 124 148 141 Total revenue $ 366,260 $ 270,245 $ 194,032 When disaggregating revenue, the Company considered all of the economic factors that may affect its revenues. Because all of its revenues are from bioprocessing customers, there are no differences in the nature, timing and uncertainty of the Company’s revenues and cash flows from any of its product lines. However, given that the Company’s revenues are generated in different geographic regions, factors such as regulatory and geopolitical factors within those regions could impact the nature, timing and uncertainty of the Company’s revenues and cash flows. In addition, a significant portion of the Company’s revenues are generated from two customers; therefore, economic factors specific to these two customers could impact the nature, timing and uncertainty of the Company’s revenues and cash flows. Disaggregated revenue from contracts with customers by geographic region can be found in Note 2., “Summary of Significant Accounting Policies – Segment Reporting,” Revenue from significant customers that represent 10% or more of the Company’s total revenue is as follows (amounts in thousands): For the Years Ended December 31, 2020 2019 2018 MilliporeSigma $ 39,511 $ 36,190 $ 29,843 Cytiva (formerly GE Healthcare) N/A $ 31,441 $ 29,616 Filtration Products The Company’s filtration products generate revenue through the sale of KrosFlo ® ® ® ® ® single-use single-use The Company’s KrosFlo systems are used in the filtration, isolation, purification and concentration of biologics and diagnostic products. TFF is a rapid and efficient method for separation and purification of biomolecules that is widely used in laboratory, process development and process scale applications in biopharmaceutical manufacturing. Sales of large-scale systems generally include components and consumables as well as training and installation services at the request of the customer. Because the initial sale of components and consumables is necessary for the operation of the system, such items are combined with the systems as a single performance obligation. Training and installation services do not significantly modify or customize these systems and therefore represent a distinct performance obligation. The Company’s TangenX flat sheet cassettes (SIUS ® ® The Company’s other filtration product offerings are not highly interdependent of one another and are therefore considered distinct products that represent separate performance obligations. Revenue on these products is generally recognized at a point in time upon transfer of control to the customer. The Company invoices the customer for the installation and training services in an amount that directly corresponds with the value to the customer of the Company’s performance to date; therefore, revenue recognized is based on the amount billable to the customer in accordance with the practical expedient under ASC 606-10-55-18. The Company also markets the XCell ATF system, a technologically advanced filtration device used in upstream processes to continuously remove cellular metabolic waste products during the course of a fermentation run, freeing healthy cells to continue producing the biologic drug of interest. XCell ATF systems typically include a filtration system and consumables (i.e., tubing sets, metal stands) as well as training and installation services at the request of the customer. The filtration system and consumables are considered distinct products and therefore represent separate performance obligations. First time purchasers of the systems typically purchase a controller that is shipped with the tubing set(s) and metal stand(s). The controller is not considered distinct as it is a proprietary product that is highly interdependent with the filtration system; therefore, the controller is combined with the filtration system and accounted for as a single performance obligation. The training and installation services do not significantly modify or customize the XCell ATF system and therefore represent a distinct performance obligation. XCell ATF system product revenue related to the filtration system (including the controller if applicable) and consumables is generally recognized at a point in time upon transfer of control to the customer. XCell ATF system service revenue related to training and installation services is generally recognized over time, as the customer simultaneously receives and consumes the benefits as the Company performs. The Company invoices the customer for the installation and training services in an amount that directly corresponds with the value to the customer of the Company’s performance to date; therefore, revenue recognized is based on the amount billable to the customer in accordance with the practical expedient under ASC 606-10-55-18. On July 13, 2020, the Company completed the EMT Acquisition and added EMT’s silicone-based, single-use single-use single-use single-use On October 20, 2020, the Company completed the NMS Acquisition and added their fabricated plastics, custom containers and related assemblies and components to its filtration franchise. These products will complement and expand Repligen’s single-use On December 3, 2020, the Company completed the ARTeSYN Acquisition and added its suite of single-use Chromatography Products The Company’s chromatography products include a number of products used in the downstream purification and quality control of biological drugs. The majority of chromatography revenue relates to the OPUS ® pre-packed pre-packaged Process Analytics Products The Process Analytics franchise generates revenue primarily through the sale of the SoloVPE and FlowVPE Slope Spectroscopy systems, consumables and service. These products complement and support the Company’s existing Filtration, Chromatography and Proteins franchises as they allow end-users in-line Protein Products The Company’s Protein franchise generates revenue through the sale of Protein A affinity ligands and growth factors. Protein A ligands are an essential component of Protein A chromatography resins (media) used in the purification of virtually all mAb-based drugs on the market or in development. The Company manufactures multiple forms of Protein A ligands under long-term supply agreements with major life sciences companies, who in turn sell their Protein A chromatography media to end users (biopharmaceutical manufacturers). The Company also manufactures growth factors for sale under long-term supply agreements with certain life sciences companies as well as for direct sales to its customers. Each protein product is considered distinct and therefore represents a separate performance obligation. Protein product revenue is generally recognized at a point in time upon transfer of control to the customer. Other Products The Company’s other products include operating room products sold to hospitals. Other product revenue is generally recognized at a point in time upon transfer of control to the customer. Transaction Price Allocated to Future Performance Obligations Remaining performance obligations represent the transaction price of contracts for which work has not been performed or has been partially performed. The Company’s future performance obligations relate primarily to the installation and training of certain of its systems sold to customers. These performance obligations are completed within one year of receipt of a purchase order from its customers. Accordingly, the Company has elected to not disclose the value of these unsatisfied performance obligations as provided under ASC 606-10-50-14. Contract Balances from Contracts with Customers The following table provides information about receivables and deferred revenue from contracts with customers as of December 31, 2020 (amounts in thousands): 2020 2019 Balances from contracts with customers only: Accounts receivable $ 71,257 $ 43,068 Deferred revenue (included in accrued liabilities in the consolidated balance sheets) $ 15,318 $ 5,005 Revenue recognized during years presented relating to: The beginning deferred revenue balance $ 3,361 $ 833 Changes in pricing related to products or services satisfied in previous periods — — The timing of revenue recognition, billings and cash collections results in the accounts receivable and deferred revenue balances on the Company’s consolidated balance sheets. A contract asset is created when the Company satisfies a performance obligation by transferring a promised good to the customer. Contract assets may represent conditional or unconditional rights to consideration. The right is conditional, and recorded as a contract asset if the Company must first satisfy another performance obligation in the contract before it is entitled to payment from the customer. Contract assets are transferred to billed receivables once the right becomes unconditional. If the Company has the unconditional right to receive consideration from the customer, the contract asset is accounted for as a billed receivable and presented separately from other contract assets. A right is unconditional if nothing other than the passage of time is required before payment of that consideration is due. When consideration is received, or such consideration is unconditionally due, from a customer prior to transferring goods or services to the customer under the terms of a contract, a contract liability is recorded. Contract liabilities are recognized as revenue after control of the products or services is transferred to the customer and all revenue recognition criteria have been met. Costs to Obtain or Fulfill a Customer Contract The Company’s sales commission structure is based on achieving revenue targets. The commissions are driven by revenue derived from customer purchase orders which are short term in nature. Applying the practical expedient in paragraph 340-40-25-4, |
Credit Losses
Credit Losses | 12 Months Ended |
Dec. 31, 2020 | |
Credit Loss [Abstract] | |
Credit Losses | 6. Credit Losses Effective January 1, 2020, the Company adopted ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” 2016-13 The Company is exposed to credit losses primarily through sales of products and services. The Company’s expected loss allowance methodology for accounts receivable is developed using historical collection experience, current and future economic and market conditions and a review of the current status of customers’ trade accounts receivable. Customers are pooled based on sharing specific risk factors, including geographic location. Due to the short-term nature of such receivables, the estimated accounts receivable that may not be collected is based on aging of the accounts receivable balances. Customers are assessed for credit worthiness upfront through a credit review, which includes assessment based on the Company’s analysis of their financial statements when a credit rating is not available. The Company evaluates contract terms and conditions, country and political risk, and may require prepayment to mitigate risk of loss. Specific allowance amounts are established to record the appropriate provision for customers that have a higher probability of default. The Company monitors changes to the receivables balance on a timely basis, and balances are written off as they are determined to be uncollectable after all collection efforts have been exhausted. Estimates of potential credit losses are used to determine the allowance. It is based on assessment of anticipated payment and all other historical, current and future information that is reasonably available. The accounts receivable balance on the Company’s consolidated balance sheet as of December 31, 2020 was $71.3 million, net of $0.8 million of allowances. The following table provides a roll-forward of the allowance for credit losses in 2020 that is deducted from the amortized cost basis of accounts receivable to present the net amount expected to be collected (amounts in thousands): 2020 Balance at January 1, 2020 $ (525 ) Current period change for expected credit losses (133 ) Balance at March 31, 2020 $ (658 ) Current period change for write-offs 37 Current period change for expected credit losses 83 Balance at June 30, 2020 $ (538 ) Current period change for expected credit losses (83 ) Balance at September 30, 2020 $ (621 ) Current period change for write-offs 65 Current period change for expected credit losses (206 ) Balance at December 31, 2020 $ (762 ) |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 7. Goodwill and Intangible Assets Goodwill Goodwill represents the difference between the purchase price and the estimated fair value of identifiable assets acquired and liabilities assumed. Goodwill acquired in a business combination and determined to have an indefinite useful life is not amortized, but instead is tested for impairment at least annually in accordance with ASC 350. The following table represents the changes in the carrying value of goodwill for the years ended December 31, 2020 and 2019 (amounts in thousands): Balance as of December 31, 2018 $ 326,735 Acquisition of C Technologies 142,021 Cumulative translation adjustment (343 ) Balance as of December 31, 2019 $ 468,413 Measurement period adjustment - C Technologies 293 Acquisition of EMT 12,585 Acquisition of NMS 6,784 Acquisition of ARTeSYN 128,658 Cumulative translation adjustment 1,572 Balance as of December 31, 2020 $ 618,305 During each of the fourth quarters of 2020, 2019 and 2018, the Company completed its annual impairment assessments and concluded that goodwill was not impaired in any of those years. Intangible Assets Intangible assets with a definitive life are amortized over their useful lives using the straight-line method, and the amortization expense is recorded within cost of product revenue and selling, general and administrative expense in the Company’s consolidated statements of comprehensive income. Intangible assets and their related useful lives are reviewed at least annually to determine if any adverse conditions exist that would indicate the carrying value of these assets may not be recoverable. More frequent impairment assessments are conducted if certain conditions exist, including a change in the competitive landscape, any internal decisions to pursue new or different technology strategies, a loss of a significant customer, or a significant change in the marketplace, including changes in the prices paid for the Company’s products or changes in the size of the market for the Company’s products. If impairment indicators are present, the Company determines whether the underlying intangible asset is recoverable through estimated future undiscounted cash flows. If the asset is not found to be recoverable, it is written down to the estimated fair value of the asset based on the sum of the future discounted cash flows expected to result from the use and disposition of the asset. If the estimate of an intangible asset’s remaining useful life is changed, the remaining carrying amount of the intangible asset is amortized prospectively over the revised remaining useful life. The Company continues to believe that its definite-lived intangible assets are recoverable at December 31, 2020. Indefinite-lived intangible assets are tested for impairment at least annually. There has been no impairment of our intangible assets for the periods presented. Intangible assets, net consisted of the following at December 31, 2020: December 31, 2020 Gross Carrying Value Accumulated Amortization Net Carrying Value Weighted Average Useful Life (in years) (Amounts in thousands) Finite-lived intangible assets: Technology - developed $ 114,217 $ (14,444 ) $ 99,773 17 Patents 240 (240 ) — 8 Customer relationships 217,790 (37,333 ) 180,457 16 Trademarks 5,893 (541 ) 5,352 20 Other intangibles 2,142 (1,324 ) 818 3 Total finite-lived intangible assets 340,282 (53,882 ) 286,400 16 Indefinite-lived intangible asset: Trademarks 700 — 700 — Total intangible assets $ 340,982 $ (53,882 ) $ 287,100 Intangible assets consisted of the following at December 31, 2019: December 31, 2019 Gross Carrying Value Accumulated Amortization Net Carrying Value Weighted Average Useful Life (in years) (Amounts in thousands) Finite-lived intangible assets: Technology - developed $ 82,169 $ (9,669 ) $ 72,500 19 Patents 240 (240 ) — 8 Customer relationships 160,825 (25,642 ) 135,183 15 Trademarks 3,752 (333 ) 3,419 20 Other intangibles 1,697 (947 ) 750 3 Total finite-lived intangible assets 248,683 (36,831 ) 211,852 16 Indefinite-lived intangible asset: Trademarks 700 — 700 — Total intangible assets $ 249,383 $ (36,831 ) $ 212,552 Amortization expense for finite-lived intangible assets was $16.1 million, $13.6 million and $10.6 million for the years ended December 31, 2020, 2019 and 2018, respectively. As of December 31, 2020, the Company expects to record the following amortization expense (amounts in thousands): For the Years Ended December 31, Estimated 2021 $ 20,767 2022 20,765 2023 20,648 2024 20,080 2025 19,813 2026 and thereafter 184,327 Total $ 286,400 |
Consolidated Balance Sheet Deta
Consolidated Balance Sheet Detail | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Text Block [Abstract] | |
Consolidated Balance Sheet Detail | 8. Consolidated Balance Sheet Detail Inventories, net Inventories, net consists of the following: December 31, 2020 2019 (Amounts in thousands) Raw materials $ 48,746 $ 29,328 Work-in-process 8,084 8,360 Finished products 38,195 17,144 Total inventories, net $ 95,025 $ 54,832 Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following: December 31, 2020 2019 (Amounts in thousands) Equipment maintenance and services $ 4,601 $ 1,662 Prepaid income taxes 2,649 2,719 Prepaid insurance 1,936 80 Other 9,490 1,456 Total prepaid expenses and other current assets $ 18,676 $ 5,917 Property, Plant and Equipment Property, plant and equipment consist of the following: December 31, 2020 2019 (Amounts in thousands) Land $ 1,023 $ 1,023 Buildings 1,007 764 Leasehold improvements 31,331 23,905 Equipment 43,072 36,257 Furniture, fixtures and office equipment 8,714 6,312 Computer hardware and software 15,397 8,810 Construction in progress 14,927 6,707 Other 455 56 Total property, plant and equipment 115,926 83,834 Less - Accumulated depreciation (49,056 ) (35,379 ) Total property, plant and equipment, net $ 66,870 $ 48,455 Depreciation expense totaled $10.9 million, $7.3 million and $5.2 million in the fiscal years ended December 31, 2020, 2019 and 2018, respectively. Accrued Liabilities Accrued liabilities consist of the following: December 31, 2020 2019 (Amounts in thousands) Employee compensation $ 20,288 $ 19,850 Income taxes payable 1,423 3,874 Royalty and license fees 466 123 Warranties 1,576 1,500 Professional fees 1,425 1,081 Deferred revenue 15,318 5,005 Other 12,589 1,898 Total accrued liabilities $ 53,085 $ 33,331 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes | 9. Income Taxes The components of income before income taxes are as follows: For the Years Ended December 31, 2020 2019 2018 (Amounts in thousands) Domestic $ 27,545 $ (5,432 ) $ (73 ) Foreign 31,672 31,583 21,509 Income before income taxes $ 59,217 $ 26,151 $ 21,436 The components of the income tax provision are as follows: For the Years Ended December 31, 2020 2019 2018 (Amounts in thousands) Components of the income tax (benefit) provision: Current $ 5,193 $ 8,290 $ 4,354 Deferred (5,902 ) (5,287 ) 465 Equity — 1,737 — Total $ (709 ) $ 4,740 $ 4,819 Jurisdictional components of the income tax (benefit) provision: Federal $ (4,741 ) $ (965 ) $ (393 ) State (3,011 ) (1,764 ) 718 Foreign 7,043 7,469 4,494 Total $ (709 ) $ 4,740 $ 4,819 During 2020, the Company generated $4.0 million in federal net operating losses and $1.1 million in state net operating losses. At December 31, 2020, the Company had federal net operating loss carryforwards of $2.9 million and state net operating loss carryforwards of $3.5 million. The federal net operating loss carryforwards do not expire while the state net operating loss carryforwards will expire The components of deferred income taxes are as follows: December 31, 2020 2019 (Amounts in thousands) Deferred tax assets: Temporary timing differences: Stock-based compensation expense $ 3,320 $ 2,922 Operating leases 7,257 7,295 Accrued bonus 25 1,379 Other 5,749 4,994 Total temporary timing differences 16,351 16,590 Net operating loss carryforwards 1,539 221 Tax business credits carryforwards 5,553 924 Total deferred tax assets 23,443 17,735 Less: valuation allowance (727 ) (6 ) Net deferred tax assets 22,716 17,729 Deferred tax liabilities: Goodwill (1,487 ) (1,288 ) Fixed assets (4,233 ) (1,650 ) Acquired intangible assets (27,152 ) (24,605 ) Operating lease right of use assets (5,744 ) (6,144 ) Conversion option on convertible notes (8,651 ) (11,066 ) Total deferred tax liabilities (47,267 ) (44,753 ) Total net deferred tax liabilities $ (24,551 ) $ (27,024 ) The net change in the total valuation allowance for the year ended December 31, 20 20 9 The reconciliation of the federal statutory rate to the effective income tax rate for the years ended December 31, 2020, 2019 and 2018 is as follows: For the Years Ended December 31, 2020 2019 2018 Amount % Amount % Amount % (Amounts in thousands, except percentages) Income before income taxes $ 59,217 $ 26,151 $ 21,436 Expected tax at statutory rate 12,436 21.0 % 5,492 21.0 % 4,502 21.0 % Adjustments due to: Difference between U.S. and foreign tax 618 1.0 % 436 1.7 % 345 1.6 % State income and franchise tax 133 0.2 % (179 ) (0.7 %) 91 0.4 % Business tax credits (4,660 ) (7.9 %) (2,746 ) (10.5 %) (1,760 ) (8.2 %) Permanent differences: Stock-based compensation expense (9,243 ) (15.6 %) (1,877 ) (7.2 %) (1,213 ) (5.7 %) U.S. taxation of foreign earnings 51 0.1 % 2,227 8.5 % 2,190 10.2 % Executive compensation 1,401 2.4 % 841 3.2 % 367 1.7 % Other 896 1.5 % 92 0.4 % 97 0.5 % Change in U.S. federal tax rates (2,192 ) (3.7 %) — 0.0 % — 0.0 % Change in U.S. state tax rates (708 ) (1.2 %) — 0.0 % 748 3.5 % Change in Netherlands tax rate 250 0.4 % (193 ) (0.7 %) (388 ) (1.8 %) Transition tax — 0.0 % — 0.0 % (1,338 ) (6.2 %) Uncertain tax provisions (168 ) (0.3 %) 1,069 4.1 % 1,021 4.8 % Change in valuation allowance (12 ) (0.0 %) (125 ) (0.5 %) 125 0.6 % Return to provision adjustments (89 ) (0.2 %) (79 ) (0.3 %) 33 0.2 % Other 578 1.0 % (218 ) (0.8 %) (1 ) (0.1 %) Income tax provision $ (709 ) (1.2 %) $ 4,740 18.1 % $ 4,819 22.5 % The Company’s tax returns are subject to examination by federal, state and foreign tax authorities. The Company’s two major tax jurisdictions are subject to examination for the following periods: Jurisdiction Fiscal Years Subject United States - federal and state 2017-2020 Sweden 2013-2020 The following is a tabular reconciliation of the total amounts of unrecognized tax benefits: For the Years Ended December 31, 2020 2019 (Amounts in thousands) Balance of gross unrecognized tax benefits, beginning of period $ 3,422 $ 2,852 Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in the current period 154 602 Gross amounts of decreases in unrecognized tax benefits as a result of tax positions taken in the prior period (337 ) (16 ) Gross amounts of decrease due to release (39 ) (16 ) Balance of gross unrecognized tax benefits, end of period $ 3,200 $ 3,422 Included in the balance of unrecognized tax benefits as of December 31, 2020 are $3.1 million of tax benefits that, if recognized, would affect the effective tax rate. The Company classifies interest and penalties related to income taxes as components of its income tax provision. The amount of interest and penalties recorded in the accompanying consolidated statements of comprehensive income was approximately $17,000, $5,000 and $1,000 for the years ended December 31, 2020, 2019 and 2018, respectively. The amount of interest and penalties recorded in the accompanying consolidated balance sheets was approximately $58,000 and $41,000 as of December 31, 2020 and 2019, respectively. The Company does not anticipate the amount of unrecognized tax benefits to change over the next twelve months. On March 27, 2020, President Trump signed the $2.2 trillion bipartisan Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act, the third congressional bill to address COVID-19, The Company is subject to a territorial tax system under the Tax Cuts and Jobs Act (“TCJA”) enacted in December 2017 (the “2017 Tax Act”), in which the Company is required to provide for tax on Global Intangible Low-Taxed The Company also considered the impact of the newly issued tax regulations in recording its income tax accounts for the year ending December 31, 2020 which reduced the foreign earnings subject to taxation under the GILTI provisions for the year ended December 31, 2018 and prospectively. As of December 31, 2020, the Company has accumulated undistributed earnings generated by its foreign subsidiaries of approximately $113.1 million. Because $58.0 million of such earnings have previously been subject to the one-time taxes. At December 31, 2020, the Company has not provided for taxes on outside basis differences of its foreign subsidiaries, as the Company has the ability and intent to indefinitely reinvest the undistributed earnings of its foreign subsidiaries, and there are no needs for such earnings in the United States that would contradict its plan to indefinitely reinvest. ASU 2016-16, “Intra-Entity Transfers of Assets Other Than Inventory,” |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity | 10. Stockholders’ Equity Public Offerings of Common Stock On December 8, 2020, the Company completed a public offering in which 1,725,000 shares of its common stock, including the underwriters’ exercise in full of an option to purchase an additional 225,000 shares, were sold to the public at a price of $181.00 per share (the “December Stock Offering”). The net proceeds of the December Stock Offering, after deducting underwriting discounts and commissions and other estimated offering expenses payable by the Company, were approximately $297.8 million. On July 19, 2019, the Company completed a public offering in which 1,587,000 shares of its common stock, including the underwriters’ exercise in full of an option to purchase an additional 207,000 shares, were sold to the public at a price of $87.00 per share (the “July Stock Offering”). The net proceeds of the Stock Offering, after deducting underwriting discounts and commissions and other estimated offering expenses payable by the Company, were approximately $131.1 million. On May 3, 2019, the Company completed a public offering in which 3,144,531 shares of its common stock, including the underwriters’ full exercise of an option to purchase up to an additional 410,156 shares, were sold to the public at a price of $64.00 per share. The total proceeds received by the Company from this offering, net of underwriting discounts and commissions and other estimated offering expenses payable by the Company, totaled approximately $189.6 million. Stock Option and Incentive Plans At the Company’s 2018 Annual Meeting of Stockholders held on May 16, 2018, the Company’s shareholders approved the 2018 Stock Option and Incentive Plan (the “2018 Plan”). Under the 2018 Plan the number of shares of the Company’s common stock that are reserved and available for issuance shall be 2,778,000 plus the number of shares of common stock available for issuance under the Company’s Amended and Restated 2012 Stock Option and Incentive Plan (the “2012 Plan”). The shares of common stock underlying any awards under the 2018 Plan, 2012 Plan and the Second Amended and Restated 2001 Repligen Corporation Stock Plan (the “2001 Plan,” and together with the 2018 Plan and 2012 Plan, the “Plans”) that are forfeited, canceled or otherwise terminated (other than by exercise) shall be added back to the shares of stock available for issuance under the 2018 Plan. At December 31, 2020, 2,306,943 shares were available for future grants under the 2018 Plan. Stock-Based Compensation The Company recorded stock-based compensation expense of $17.0 million, $12.8 million and $10.2 million for the years ended December 31, 2020, 2019 and 2018, respectively, for share-based awards granted under the Plans. The following table presents stock-based compensation expense in the Company’s consolidated statements of comprehensive income: For the Years Ended December 31, 2020 2019 2018 (Amounts in thousands) Cost of product revenue $ 1,929 $ 1,368 $ 1,019 Research and development 1,534 1,373 917 Selling, general and administrative 13,544 10,106 8,256 Total stock-based compensation $ 17,007 $ 12,847 $ 10,192 The 2018 Plan allows for the granting of incentive and nonqualified options to purchase shares of common stock, restricted stock and other equity awards. Except for the grant to the Company’s Chief Executive Officer (“CEO”) in 2018 mentioned below, employee grants under the Plans generally vest over a three- to five-year period, with 20%-33% non-employee The Company uses the Black-Scholes option pricing model to calculate the fair value of stock option awards on the grant date, and the Company uses the value of the common stock as of the grant date to value RSUs. The Company measures stock-based compensation costs at the grant date based on the estimated fair value of the award. The Company recognizes expense on awards with service-based vesting over the employee’s requisite service period on a straight-line basis. The Company has issued performance stock units to certain employees which are tied to the achievement of certain Company financial goal metrics and the passage of time. Finally, during 2020, the Company implemented a program that issued performance stock units to certain employees set to vest upon the achievement of individual goals and the passage of time. The Company recognizes expense on performance-based awards over the vesting period based on the probability that the performance metrics will be achieved. The Company recognizes stock-based compensation expense for options that are ultimately expected to vest, and accordingly, such compensation expense has been adjusted for estimated forfeitures. The fair value of share-based awards granted during the years ended December 31, 2020, 2019 and 2018 were calculated using the following estimated assumptions: For the Years Ended December 31, 2020 2019 2018 Expected term (in years) 5.5-6.5 5.5-6.5 5.5-7.5 Expected volatility (range) 45.14 – 50.87% 45.14 – 50.87% 45.14 – 50.87% Risk-free interest rate 0.34 – 1.15% 1.55 – 2.56% 2.63 – 2.96% Expected dividend yield 0% 0% 0% Information regarding option activity for the year ended December 31, 2020 under the Plans is summarized below: Shares Weighted average exercise price Weighted- Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value (in Thousands) Options outstanding at December 31, 2019 957,559 $ 30.81 Granted 79,698 $ 115.81 Exercised (340,546 ) $ 23.95 Forfeited/expired/cancelled — $ — Options outstanding at December 31, 2020 696,711 $ 43.88 6.90 $ 102,958 Options exercisable at December 31, 2020 311,988 $ 31.75 5.91 $ 49,879 Vested and expected to vest at December 31, 2020 (1) 667,220 6.86 $ 99,096 (1) Represents the number of vested options as of December 31, 2020 plus the number of unvested options expected to vest as of December 31, 2020 based on the unvested outstanding options at December 31, 2020 adjusted for estimated forfeiture rates of 8% for awards granted to non-executive The aggregate intrinsic value in the table above represents the total pre-tax in-the-money The weighted average grant date fair value of options granted during the years ended December 31, 2020, 2019 and 2018 was $53.06, $31.27 and $18.90, respectively. The total fair value of stock options that vested during the years ended December 31, 2020, 2019 and 2018 was $2.8 million, $3.1 million and $2.3 million, respectively. The fair value of stock units is calculated using the closing price of the Company’s common stock on the date of grant. Information regarding stock unit activity, which includes activity for restricted stock units and performance stock units, for the year ended December 31, 2020 under the Plans is summarized below: Shares Weighted- Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value (in Thousands) Unvested at December 31, 2019 734,984 Awarded 207,788 Vested (244,648 ) Forfeited/expired/cancelled (32,584 ) Unvested at December 31, 2020 665,540 3.32 $ 127,904 Vested and expected to vest at December 31, 2020 (1) 650,047 3.01 $ 124,568 (1) Represents the number of vested stock units as of December 31, 2020 plus the number of unvested stock units expected to vest as of December 31, 2020 based on the unvested outstanding stock units at December 31, 2020 adjusted for estimated forfeiture rates of 8% for awards granted to non-executive The aggregate intrinsic value in the table above represents the total pre-tax The weighted average grant date fair value of stock units granted during the years ended December 31, 2020, 2019 and 2018 was $109.69, $49.68 and $30.30, respectively. The total fair value of stock units that vested during the years ended December 31, 2020, 2019 and 2018 was $10.8 million, $8.5 million and $4.6 million, respectively. As of December 31, 2020, there was $46.7 million of total unrecognized compensation cost related to unvested share-based awards. This cost is expected to be recognized over a weighted average remaining requisite service period of 3.55 years. The Company expects 1,853,028 unvested options and stock units to vest over the next five years. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies | 11. Commitments and Contingencies Licensing and Research Agreements The Company licenses certain technologies that are, or may be, incorporated into its technology under several agreements and also has entered into several clinical research agreements that require the Company to fund certain research projects. Generally, the license agreements require the Company to pay annual maintenance fees and royalties on product sales once a product has been established using the technologies. Research and development expenses associated with license agreements were immaterial amounts for the years ended December 31, 2020, 2019 and 2018. In September 2018, the Company entered into a collaboration agreement with Sartorius Stedim Biotech (“SSB”), a leading international supplier for the biopharmaceutical industry, to integrate our XCell ATF cell retention control technology into Sartorius’s BIOSTAT ® single-use end-users In June 2018, the Company secured an agreement with Navigo for the exclusive co-development NGL-Impact ™ NGL-Impact Purchase Orders, Supply Agreements and Other Contractual Obligations In the normal course of business, the Company has entered into purchase orders and other agreements with manufacturers, distributors and others. Outstanding obligations at December 31, 2020 of $55.3 million are expected to be completed within one year. Legal Proceedings From time to time, in the normal course of its operations, the Company is subject to litigation matters and claims relating to employee relations, business practices and patent infringement. Litigation can be expensive and disruptive to normal business operations. Moreover, the results of complex legal proceedings are difficult to predict and the Company’s view of these matters may change in the future as the litigation and events related thereto unfold. The Company expenses legal fees as incurred. The Company records a provision for contingent losses when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. An unfavorable outcome to any legal matter, if material, could have an adverse effect on the Company’s operations or its financial results. |
Convertible Senior Notes
Convertible Senior Notes | 12 Months Ended |
Dec. 31, 2020 | |
Convertible Senior Notes | 12. Convertible Senior Notes The carrying value of the Company’s convertible senior notes is as follows: December 31, 2020 2019 (Amounts in thousands) 0.375% convertible senior notes due 2024: Convertible senior notes, current portion: Principal amount $ 287,500 $ — Unamortized debt discount (38,317 ) — Unamortized debt issuance costs (5,446 ) — Total convertible senior notes, current portion 243,737 — Convertible senior notes: Principal amount — 287,500 Unamortized debt discount — (47,921 ) Unamortized debt issuance costs — (6,812 ) Total convertible senior notes $ 243,737 $ 232,767 0.375% Convertible Senior Notes due 2024 On July 19, 2019, the Company issued $287.5 million aggregate principal amount of 0.375% Convertible Senior Notes due 2024 (“2019 Notes”), which includes the underwriters’ exercise in full of an option to purchase an additional $37.5 million aggregate principal amount of 2019 Notes (the “Notes Offering”). The net proceeds of the Notes Offering, after deducting underwriting discounts and commissions and other related offering expenses payable by the Company, were approximately $278.5 million. The 2019 Notes are senior, unsecured obligations of the Company, and bear interest at a rate of 0.375% per year. Interest is payable semi-annually in arrears on January 15 and July 15 of each year, beginning on January 15, 2020. Holders of 2019 Notes may require the Company to repurchase their 2019 Notes upon the occurrence of a fundamental change prior to maturity at a repurchase price equal to 100% of the principal amount thereof, plus accrued and unpaid interest to, but excluding, the date of repurchase. In connection with certain corporate events, the Company will, under certain circumstances, increase the conversion rate for holders of 2019 Notes who elect to convert their 2019 Notes in connection with such corporate events. During the fourth quarter of 2020, the closing price of the Company’s common stock exceeded 130% of the conversion price of the 2019 Notes for more than 20 trading days of the last 30 consecutive trading days of the quarter. As a result, the 2019 Notes are convertible at the option of the holders of the 2019 Notes during the first quarter of 2021, the quarter immediately following the quarter when the conditions are met, as stated in the terms of the 2019 Notes. Expecting to continue meeting these terms, the Company reclassified the carrying value of the 2019 Notes from long-term liabilities to current liabilities on the Company’s balance sheet as of December 31, 2020. As of the date of this filing, the Company received requests to convert $3,000 aggregate principal amount of 2019 Notes which we intend to pay or deliver, as the case may be, the settlement amount to be determined – paying the amount in excess of the aggregate principal portion of the converted notes in shares of our common stock. These conversions will be settled during the first quarter of 2021. The Company accounts for the 2019 Notes as separate liability and equity components. The Company determined the carrying amount of the liability component as the present value of its cash flows using a discount rate of 4.5% based on comparative convertible transactions for similar companies. The proceeds allocated to the debt conversion feature were $52.1 million. This amount was calculated by deducting the carrying value of the liability component from the principal amount of the 2019 Notes as a whole. The difference represents a debt discount that is amortized to interest expense on the Company’s consolidated statements of comprehensive income over the term of the 2019 Notes using the effective interest rate method. The Company will assess the equity classification of the cash conversion feature quarterly, and it is not remeasured as long as it continues to meet the conditions for equity classification. The Company allocates transaction costs related to the issuance of the 2019 Notes to the liability and equity components using the same proportions as the initial carrying value of the 2019 Notes. Transaction costs related to the liability component were $7.4 million and are being amortized to interest expense using the effective interest method over the term of the 2019 Notes. Transaction costs attributable to the equity component were $1.6 million and are netted with the equity component of the 2019 Notes in stockholders’ equity of the Company’s consolidated balance sheet at December 31, 2020. Interest expense recognized on the 2019 Notes in 2020 was $1.1 million, $9.6 million and $1.4 million for the contractual coupon interest, the accretion of the debt discount and the amortization of the debt issuance costs, respectively. The effective interest rate on the 2019 Notes is 5.1%, which included the interest on the 2019 Notes, amortization of the debt discount and debt issuance costs. As of December 31, 2020, the carrying value of the 2019 Notes was $243.7 million and the fair value of the principal was $501.0 million. The fair value of the 2019 Notes was determined based on the most recent trade activity of the 2019 Notes as of December 31, 2020. The 2019 Notes agreement contains customary terms and 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 holders of at least 25% in aggregate principal amount of the outstanding 2019 Notes may declare 100% of the principal of, and any accrued and unpaid interest on, all of the 2019 Notes to be due and payable. Upon the occurrence of certain events of bankruptcy, insolvency or reorganization involving the Company, 100% of the principal of and accrued and unpaid interest, if any, on all of the 2019 Notes will become due and payable automatically. Notwithstanding the foregoing, the 2019 Notes provide that, to the extent the Company elects and for up to 270 days, the sole remedy for an event of default relating to certain failures by the Company to comply with certain reporting covenants consist exclusively of the right to receive additional interest on the 2019 Notes. The Company is not aware of any events of default, current events or market conditions that would allow holders to call or convert the 2019 Notes as of December 31, 2020. Conversion of the 2.125% Convertible Senior Notes due 2021 The Company utilized a portion of the proceeds from the issuance of the 2019 Notes to settle its outstanding 2.125% Convertible Senior Notes due 2021 (the “2016 Notes”) during the third quarter of 2019. On July 16, 2019, the Company entered into separate privately negotiated agreements with certain holders of the 2016 Notes to exchange an aggregate of $92.0 million principal aggregate amount of the 2016 Notes for shares of the Company’s common stock, together with cash, in private placement transactions (the “Note Exchanges”). On July 19, 2019 and July 22, 2019, the Company used approximately $92.3 million (including $0.3 million of accrued interest) and 1,850,155 shares of its common stock valued at $161.0 million to settle the Note Exchanges for total consideration of $253.3 million, of which $163.6 million was allocated to reacquiring the equity component of the 2016 Notes. The Company allocated the consideration transferred to the liability and equity components using the same proportions as the initial carrying value of the 2016 Notes. The transaction resulted in a loss on extinguishment of debt of $4.6 million in the Company’s consolidated statements of comprehensive income in 2019. On July 19, 2019, the Company issued a Notice of Redemption in respect of the 2016 Notes, which provided that, on September 23, 2019, the Company would redeem all 2016 Notes that had not been converted, repurchased or exchanged prior to such date at a redemption price in cash equal to 100% of the principal amount thereof plus accrued and unpaid interest. On September 23, 2019, the Company used $23.0 million and 466,045 shares of its common stock valued at $37.8 million to settle the remaining 2016 Notes for a total of $60.8 million, of which $38.3 million was allocated to reacquiring the equity component of the 2016 Notes. This transaction resulted in a loss on extinguishment of debt of $1.1 million recorded on the Company’s consolidated statements of comprehensive income. The total loss in 2019 of $5.7 million represents the difference between the fair value of the liability component of the 2016 Notes and its related carrying value immediately before the exchange. Interest expense recognized on the 2016 Notes in 2019 prior to conversion was $1.3 million, $2.4 million and $0.4 million for the contractual coupon interest, the accretion of the debt discount and the amortization of the debt issuance costs, respectively. The effective interest rate on the 2016 Notes was 6.6%, which included the interest on the 2016 Notes, amortization of the debt discount and debt issuance costs. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) | 13. Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss) consisted of the following for the years ended December 31, 2020 and 2019 (amounts in thousands): Foreign Balance as of December 31, 2018 $ (11,893 ) Other comprehensive loss (3,134 ) Balance as of December 31, 2019 (15,027 ) Other comprehensive income 17,112 Balance as of December 31, 2020 $ 2,085 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Employee Benefit Plans | 14. Employee Benefit Plans In the United States, the Repligen Corporation 401(k) Savings and Retirement Plan (the “401(k) Plan”) is a qualified defined contribution plan in accordance with Section 401(k) of the Internal Revenue Code. All U.S. employees over the age of 21 are eligible to make pre-tax In Sweden, the Company contributes to a government-mandated occupational pension plan that is a qualified defined contribution plan. All employees in Sweden are eligible for this pension plan. The Company pays premiums to a third-party occupational pension specialist who administers the pension plan. These premiums are based on various factors including each employee’s age, salary, employment history and selected benefits in the pension plan. When an employee terminates or retires, these premium payments cease for that employee and the Company has no further pension-related obligations for that employee. The Company contributed $0.6 million to the defined contribution plan for each of the years ended December 31, 2020, 2019 and 2018. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions | 15. Related Party Transactions At December 31, 2020, the Company had an outstanding tax liability of $0.5 million due to the seller of C Technologies. This tax liability was paid subsequent to year end in January 2021 and concluded the remaining tax liability the Company had with the seller due to the 338(h)(10) tax election. The Company paid the seller a total of $0.3 million and $1.6 million related to the tax liability associated with the 338(h)(10) election as of December 31, 2020 and 2019, respectively. Certain facilities leased by Spectrum, a company the Company acquired in 2017, are owned by Roy Eddleman, the former owner of Spectrum. As of December 31, 2020, Mr. Eddleman owned greater than 5% of the Company’s outstanding shares and the Company considers him to be a related party. The lease amounts paid to this shareholder prior to the public offering were negotiated in connection with the Spectrum Acquisition. The Company incurred rent expense totaling $0.7 million for the year ended December 31, 2020 related to these leases. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Selected Quarterly Financial Data (Unaudited) | 16. Selected Quarterly Financial Data (Unaudited) The following table sets forth certain unaudited quarterly results of operations for 2020 and 2019. In the opinion of management, this information has been prepared on the same basis as the audited consolidated financial statements and all necessary adjustments, consisting only of normal recurring adjustments, have been included in the amounts stated below to present fairly the quarterly information when read in conjunction with the audited consolidated financial statements and notes thereto included elsewhere in this Form 10-K. The quarterly operating results are not necessarily indicative of future results of operations. For the Years Ended December 31, 2020 Q1 Q2 Q3 Q4 (Amounts in thousands, except per share data) Revenue $ 76,090 $ 87,462 $ 94,060 $ 108,648 Gross profit 44,108 50,599 54,434 60,485 Operating expenses 64,184 67,925 73,099 91,229 Net income 9,815 15,861 14,552 19,698 Earnings per share: Basic $ 0.19 $ 0.30 $ 0.28 $ 0.37 Diluted $ 0.18 $ 0.30 $ 0.27 $ 0.36 For the Years Ended December 31, 2019 Q1 Q2 Q3 Q4 (Amounts in thousands, except per share data) Revenue $ 60,634 $ 70,692 $ 69,445 $ 69,474 Gross profit 33,789 39,984 38,020 39,353 Operating expenses 49,463 59,638 61,481 63,580 Net income 8,053 8,095 1,659 3,604 Earnings per share: Basic $ 0.18 $ 0.17 $ 0.03 $ 0.07 Diluted $ 0.17 $ 0.17 $ 0.03 $ 0.07 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and assumptions by management affect the Company’s revenue recognition for multiple element arrangements, allowance for credit losses, the net realizable value of inventory, valuations and purchase price allocations related to business combinations, expected future cash flows including growth rates, discount rates, terminal values and other assumptions and estimates used to evaluate the recoverability of long-lived assets, estimated fair values of intangible assets and goodwill, amortization methods and periods, warranty reserves, certain accrued expenses, stock-based compensation, tax reserves and recoverability of the Company’s net deferred tax assets and related valuation allowance. Although the Company regularly assesses these estimates, actual results could differ materially from these estimates. Changes in estimates are recorded in the period in which they become known. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. |
Basis of presentation | Basis of Presentation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Repligen Sweden AB, Repligen GmbH, Spectrum ® Non-Metallic |
Foreign Currency | Foreign Currency The Company translates the assets and liabilities of its foreign subsidiary at rates in effect at the end of the reporting period. Revenues and expenses are translated at average rates in effect during the reporting period. Translation adjustments, including adjustments related to the Company’s intercompany loan with Repligen Sweden AB and Repligen Sweden AB’s intercompany loan with Repligen GmbH, are remeasured at each period end and included in accumulated other comprehensive loss. |
Revenue Recognition | Revenue Recognition We generate revenue from the sale of bioprocessing products, equipment devices, and related consumables used with these equipment devices to customers in the life sciences and biopharmaceutical industries. Under Accounting Standard Codification No. (“ASC”) 606, “ Revenue from Contracts with Customers,” When determining the transaction price of a contract, an adjustment is made if payment from a customer occurs either significantly before or significantly after performance, resulting in a significant financing component. Applying the practical expedient in paragraph 606-10-32-18, Contracts with customers may contain multiple performance obligations. For such arrangements, the transaction price is allocated to each performance obligation based on the estimated relative standalone selling prices of the promised products or services underlying each performance obligation. The Company determines standalone selling prices based on the price at which the performance obligation is sold separately. If the standalone selling price is not observable through past transactions, the Company estimates the standalone selling price taking into account available information such as market conditions and internally approved pricing guidelines related to the performance obligations. The Company recognizes product revenue under the terms of each customer agreement upon transfer of control to the customer, which occurs at a point in time. Shipping and handling fees are recorded as a component of product revenue, with the associated costs recorded as a component of cost of product revenue. |
Risks and Uncertainties | Risks and Uncertainties The Company evaluates its operations periodically to determine if any risks and uncertainties exist that could impact its operations in the near term. The Company does not believe that there are any significant risks that have not already been disclosed in the consolidated financial statements. A loss of certain suppliers could temporarily disrupt operations, although alternate sources of supply exist for these items. The Company has mitigated these risks by working closely with key suppliers, identifying alternate sources and developing contingency plans. |
Cash, Cash Equivalents, Restricted Cash and Marketable Securities | Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents include cash on hand and on deposit. Highly liquid investments in money market mutual funds with an original maturity of three months or less are classified as cash equivalents. All cash equivalents are carried at cost, which approximates fair value. Restricted cash represents cash that is restricted as to withdrawal or usage. There was no restriction on the Company’s cash balance as of December 31, 2020. In connection with the Company’s acquisition of C Technologies on May 31, 2019, cash was held and due to employees based on their continued employment with the Company one year after the date of the close of the acquisition. As of December 31, 2019, $9.0 million, which represented this amount due to employees, was carried as restricted cash on the Company’s consolidated balance sheet. Subsequently, during the second quarter of 2020, this $9.0 million was paid to employees. The following is a summary of the Company’s cash, cash equivalents, and restricted cash total as presented in the Company’s consolidated statements of cash flows for the years ended December 31, 2020, 2019 and 2018: For the Years Ended December 31, 2020 2019 2018 (Amounts in thousands) Cash and cash equivalents $ 717,292 $ 528,392 $ 193,822 Restricted cash — 9,015 — Total cash, cash equivalents, and restricted cash $ 717,292 $ 537,407 $ 193,822 There were no realized gains or losses on investments for the years ended December 31, 2020, 2019 and 2018. |
Fair Value Measurement | Fair Value Measurement In determining the fair value of its assets and liabilities, the Company uses various valuation approaches. The Company employs a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing the asset or liability and are developed based on the best information available in the circumstances. The fair value hierarchy is broken down into three levels based on the source of inputs as follows: Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 – Valuations based on quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active and models for which all significant inputs are observable, either directly or indirectly. Level 3 – Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The availability of observable inputs can vary among the various types of financial assets and liabilities. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for financial statement disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is categorized is based on the lowest level input that is significant to the overall fair value measurement. As of December 31, 2020 and 2019, cash and cash equivalents on the Company’s consolidated balance sheets included $549.0 million and $415.6 million, respectively, in money market accounts. These funds are valued on a recurring basis using Level 1 inputs. In July 2019, the Company issued $287.5 million aggregate principal amount of the Company’s 0.375% Convertible Senior Notes due July 15, 2024 (the “2019 Notes”). Interest is payable semi-annually in arrears on January 15 and July 15 of each year. The 2019 Notes will mature on July 15, 2024 unless earlier converted or repurchased in accordance with their terms. As of December 31, 2020, the carrying value of the 2019 Notes was $243.7 million, net of unamortized discount, and the fair value of the 2019 Notes was $501.0 million. The fair value of the 2019 Notes is a Level 1 valuation and was determined based on the most recent trade activity of the 2019 Notes as of December 31, 2020. The 2019 Notes are discussed in more detail in Note 12, “Convertible Senior Notes,” There were no remeasurements to fair value during the year ended December 31, 2020 of financial assets and liabilities that are not measured at fair value on a recurring basis. |
Allowance for credit losses | Allowance for credit losses We establish an allowance for credit losses through a review of several factors, including historical collection experience, current aging status of the customer accounts, and current financial condition of our customers. Losses are charged against the allowance when the customer accounts are determined to be uncollectible. |
Inventories | Inventories Inventories relate to the Company’s bioprocessing business. The Company values inventory at cost or, if lower, net realizable value, using the first-in, first-out work-in-process cost basis in excess of its expected net realizable value, and inventory in excess of expected requirements to cost of product revenue. Manufacturing of bioprocessing finished goods is done to order and tested for quality specifications prior to shipment. A change in the estimated timing or amount of demand for the Company’s products could result in additional provisions for excess inventory quantities on hand. Any significant unanticipated changes in demand or unexpected quality failures could have a significant impact on the value of inventory and reported operating results. During all periods presented in the accompanying financial statements, there have been no material adjustments related to a revised estimate of inventory valuations. Work-in-process |
Lease Accounting | Lease Accounting The Company adopted ASU 2016-02, “Leases (Topic 842) right-of-use A lease qualifies as a finance lease if any of the following criteria are met at the inception of the lease: (i) there is a transfer of ownership of the leased asset to the Company by the end of the lease term, (ii) the Company holds an option to purchase the leased asset that it is reasonably certain to exercise, (iii) the lease term is for a major part of the remaining economic life of the leased asset, (iv) the present value of the sum of lease payments equals or exceeds substantially all of the fair value of the leased asset, or (v) the nature of the leased asset is specialized to the point that it is expected to provide the lessor no alternative use at the end of the lease term. All other leases are recorded as operating leases. Finance and operating lease assets and liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease term using the discount rate implicit in the lease. If the rate implicit is not readily determinable, the Company utilizes its incremental borrowing rate at the lease commencement date. Operating lease assets are further adjusted for prepaid or accrued lease payments. Operating lease payments are expensed using the straight-line method as an operating expense over the lease term. Finance lease assets are amortized to depreciation expense using the straight-line method over the shorter of the useful life of the related asset or the lease term. Finance lease payments are bifurcated into (i) a portion that is recorded as imputed interest expense and (ii) a portion that reduces the finance liability associated with the lease. The Company does not separate lease and non-lease Finance leases are recorded in property, plant and equipment, net, other current liabilities and long-term finance lease liabilities and operating leases are recorded in operating lease right of use assets, operating lease liability and operating lease liability, long-term on the Company’s consolidated balance sheet. Certain of the Company’s operating leases where the Company is the lessee provide for minimum annual payments that increase over the life of the lease. Some of these leases include obligations to pay for other services, such as operations and maintenance. For leases of property, the Company accounts for these other services as a component of the lease. The aggregate minimum annual payments are expensed on the straight-line basis beginning when the Company takes possession of the property and extending over the term of the related lease, including renewal options when the exercise of the option is reasonably assured as an economic penalty may be incurred if the option is not exercised. The Company also accounts in its straight-line computation for the effect of any “rental holidays.” Operating lease assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at the lease commencement date based on the estimated present value of the fixed lease payments, reduced by landlord incentives using a discount rate based on similarly secured borrowings available to the Company. Most of the leases do not provide implicit interest rates and therefore the Company determines the discount rate based on its incremental borrowing rate. The incremental borrowing rate for the Company’s leases is determined based on lease term and currency in which the lease payments are made. |
Accrued Liabilities | Accrued Liabilities The Company estimates accrued liabilities by identifying services performed on the Company’s behalf, estimating the level of service performed and determining the associated cost incurred for such service as of each balance sheet date. For example, the Company would accrue for professional and consulting fees incurred with law firms, audit and accounting service providers and other third-party consultants. These expenses are determined by either requesting those service providers to estimate unbilled services at each reporting date for services incurred or tracking costs incurred by service providers under fixed fee arrangements. The Company has processes in place to estimate the appropriate amounts to record for accrued liabilities, which principally involve the applicable personnel reviewing the services provided. In the event that the Company does not identify certain costs that have begun to be incurred or the Company under or over-estimates the level of services performed or the costs of such services, the reported expenses for that period may be too low or too high. The date on which certain services commence, the level of services performed on or before a given date, and the cost of such services often require the exercise of judgment. The Company makes these judgments based upon the facts and circumstances known at the date of the financial statements. |
Income Taxes | Income Taxes Deferred taxes are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. Valuation allowances are provided, if, based upon the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company accounts for uncertain tax positions using a “more-likely-than-not” |
Property, Plant & Equipment | Property, Plant & Equipment Property, plant & equipment is recorded at cost less allowances for depreciation. Depreciation is calculated using the straight-line method over the estimated useful life of the asset as follows: Classification Estimated Useful Life Buildings Thirty years Leasehold improvements Shorter of the term of the lease or estimated useful life Equipment Three Furniture, fixtures and office equipment Three Computer hardware and software Three Upon disposal of property, plant & equipment, the cost of the asset and the accumulated depreciation are removed from the accounts and the resulting gain or loss is reflected in our results of operations. Fully depreciated assets are not removed from the accounts until they are physically disposed of. Certain systems development costs related to the purchase, development and installation of computer software developed or obtained for internal use are capitalized and depreciated over the estimated useful life of the related project. Costs incurred prior to the development stage, as well as maintenance, training costs, and general and administrative expenses are expensed as incurred. |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income available to common shareholders by the weighted-average number of common shares and dilutive common share equivalents then outstanding. Potential common share equivalents consist of restricted stock awards and the incremental common shares issuable upon the exercise of stock options and warrants. Under the treasury stock method, unexercised “in-the-money” A reconciliation of basic and diluted share amounts is as follows: For the Years Ended 2020 2019 2018 (Amounts in thousands, except Net income $ 59,926 $ 21,411 $ 16,617 Weighted average shares used in computing net income per share - basic 52,554 48,343 43,767 Effect of dilutive shares: Options and stock units 971 864 581 Convertible senior notes 367 — 1,123 Dilutive potential common shares 1,338 864 1,704 Weighted average shares used in computing net income per share - diluted 53,892 49,206 45,471 Earnings per share: Basic $ 1.14 $ 0.44 $ 0.38 Diluted $ 1.11 $ 0.44 $ 0.37 At December 31, 2020, there were outstanding options to purchase 696,711 shares of the Company’s common stock at a weighted average exercise price of $43.88 per share and 665,540 shares of common stock issuable upon the vesting of stock units which include restricted stock units and performance stock units. For the year ended December 31, 2020, 98,048 shares of the Company’s common stock were excluded from the calculation of diluted earnings per share because they would have had an anti-dilutive effect. At December 31, 2019, there were outstanding options to purchase 957,559 shares of the Company’s common stock at a weighted average exercise price of $30.81 per share and 734,984 shares of common stock issuable upon the vesting of stock units. For the year ended December 31, 2019, 104,316 shares of the Company’s common stock were excluded from the calculation of diluted earnings per share because the exercise prices of the stock options were greater than or equal to the average price of the common shares and were therefore, anti-dilutive. At December 31, 2018, there were outstanding options to purchase 998,226 shares of the Company’s common stock at a weighted average exercise price of $27.54 per share and 705,413 shares of common stock issuable upon the vesting of stock units. For the year ended December 31, 2017, 479,854 shares of the Company’s common stock were excluded from the calculation of diluted earnings per share because the exercise prices of the stock options were greater than or equal to the average price of the common shares and were therefore, anti-dilutive. As provided by the terms of the indenture underlying the senior convertible notes, the Company has a choice to settle the conversion obligation for the 2019 Notes in cash, shares or any combination of the two. The Company currently intends to settle the par value of the 2019 Notes in cash and any excess conversion premium in shares. The Company applies the provisions of ASC 260, “Earnings Per Share”, 10-45-44, |
Segment Reporting | Segment Reporting The Company views its operations, makes decisions regarding how to allocate resources and manages its business as one reportable segment and one reporting unit. As a result, the financial information disclosed herein represents all of the material financial information related to the Company. The following table represents product revenues by product line: For the Years Ended December 31, 2020 (1) 2019 (2) 2018 (Amounts in thousands) Filtration products $ 174,896 $ 119,534 $ 90,586 Chromatography products 73,551 64,635 45,326 Process analytics products 33,346 16,405 — Proteins products 80,732 65,124 54,375 Other 3,611 4,399 3,604 Total product revenue $ 366,136 $ 270,097 $ 193,891 (1) 2020 revenue for filtration products includes revenue related to EMT from July 13, 2020, NMS from October 20, 2020 and ARTeSYN from December 3, 2020. (2) 2019 revenue for process analytics products includes revenue related to C Technologies from May 31, 2019 through December 31, 2019. Revenue from filtration products includes the XCell ATF systems and consumables as well as the KrosFlo and SIUS filtration products. Revenue from chromatography products includes the OPUS chromatography PPCs, chromatography resins and ELISA test kits. Revenue from process analytics products includes the SoloVPE and FlowVPE devices. Revenue from protein products includes the Protein A affinity ligands and cell culture growth factors. Other revenue primarily consists of revenue from the sale of operating room products to hospitals as well as freight revenue. The following table represents the Company’s total revenue by geographic area (based on the location of the customer): For the Years Ended 2020 2019 2018 Revenue by customers’ geographic locations: North America 48 % 51 % 48 % Europe 38 % 37 % 40 % APAC/Other 14 % 12 % 12 % Total revenue 100 % 100 % 100 % The following table represents the Company’s total assets by geographic area: December 31, 2020 2019 (Amounts in thousands) Total assets by geographic locations: North America $ 1,697,149 $ 1,260,217 Europe 188,698 133,599 APAC 17,040 6,297 Total assets by geographic location $ 1,902,887 $ 1,400,113 The following table represents the Company’s long-lived assets by geographic area: December 31, 2020 2019 (Amounts in Long-lived assets by geographic locations: North America $ 78,429 $ 66,756 Europe 12,918 6,775 APAC 1,272 869 Total long-lived assets by geographic location $ 92,619 $ 74,400 |
Concentrations of Credit Risk and Significant Customers | Concentrations of Credit Risk and Significant Customers Financial instruments that subject the Company to significant concentrations of credit risk primarily consist of cash and cash equivalents, marketable securities and accounts receivable. Per the Company’s investment policy, cash equivalents and marketable securities are invested in financial instruments with high credit ratings and credit exposure to any one issue, issuer (with the exception of U.S. Treasury obligations) and type of instrument is limited. At December 31, 2020 and 2019, the Company had no investments associated with foreign exchange contracts, options contracts or other foreign hedging arrangements. Concentration of credit risk with respect to accounts receivable is limited to customers to whom the Company makes significant sales. While a reserve for the potential write-off Revenue from significant customers that represent 10% or more of the Company’s total revenue is as follows: For the Years Ended 2020 2019 2018 MilliporeSigma 11 % 13 % 15 % Cytiva (formerly GE Healthcare) N/A 12 % 15 % Significant accounts receivable balances representing 10% or more of the Company’s total trade accounts receivable and royalties and other receivable balances at December 31, 2020 and 2019, include the accounts receivable balance with Cytiva (formerly GE Healthcare), which represented 11% and 18%, respectively of the Company’s total trade accounts receivable and royalties and other receivable balances. |
Business Combinations, Goodwill and Intangible Assets | Business Combinations, Goodwill and Intangible Assets Business Combinations Total consideration transferred for acquisitions is allocated to the tangible and intangible assets acquired and liabilities assumed, if any, based on their fair values at the dates of acquisition. This purchase price allocation process requires management to make significant estimates and assumptions with respect to intangible assets and deferred revenue. The fair value of identifiable intangible assets is based on detailed valuations that use information and assumptions determined by management. Any excess of purchase price over the fair value of the net tangible and intangible assets acquired is allocated to goodwill. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as any contingent consideration, where applicable, that the Company’s estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s consolidated statements of comprehensive income. Any excess of the fair value of the net tangible and intangible assets acquired over the purchase price is recognized in the consolidated statements of comprehensive income. The fair value of contingent consideration includes estimates and judgments made by management regarding the probability that future contingent payments will be made and the extent of royalties to be earned in excess of the defined minimum royalties. Management updates these estimates and the related fair value of contingent consideration at each reporting period. During the measurement period, these changes in the fair value of contingent consideration are recorded to goodwill. Subsequent to the end of the measurement period, they will be recorded in the consolidated statements of comprehensive income. The Company uses the income approach to determine the fair value of certain identifiable intangible assets including customer relationships and developed technology. This approach determines fair value by estimating after-tax after-tax Goodwill Goodwill is not amortized and is reviewed for impairment at least annually at the reporting unit level. As of December 31, 2018, the Company concluded that it operated as two reporting units and performed the 2018 goodwill impairment test using two reporting units. In 2019, the Company reorganized its reporting structure and changed the way the CODM views the Company’s operations and allocates its resources. Accordingly, the Company operates as one reporting unit as of the goodwill impairment measurement date of December 31, 2020. During the qualitative assessment of the Company’s one reporting unit during the 2020 goodwill impairment testing, it was determined that it was not more likely than not that its fair value was less than its carrying amount. As such, a quantitative impairment assessment was not required as of December 31, 2020. If an event occurs or circumstances change that would more likely than not reduce the fair value of its reporting unit below its carrying value, the Company will evaluate its goodwill for impairment between annual tests. There was no impairment to goodwill and therefore no impairment charge recorded for the year ended December 31, 2019. Intangible Assets Intangible assets with a definite life are amortized over their useful lives using the straight-line method and the amortization expense is recorded within cost of product revenue, research and development and selling, general and administrative expense in the consolidated statements of comprehensive income. Intangible assets and their related useful lives are reviewed at least annually to determine if any adverse conditions exist that would indicate the carrying value of these assets may not be recoverable. More frequent impairment assessments are conducted if certain conditions exist, including a change in the competitive landscape, any internal decisions to pursue new or different technology strategies, a loss of a significant customer, or a significant change in the marketplace, including changes in the prices paid for the Company’s products or changes in the size of the market for the Company’s products. If impairment indicators are present, the Company determines whether the underlying intangible asset is recoverable through estimated future undiscounted cash flows. If the asset is not found to be recoverable, it is written down to the estimated fair value of the asset based on the sum of the future discounted cash flows expected to result from the use and disposition of the asset. If the estimate of an intangible asset’s remaining useful life is changed, the remaining carrying amount of the intangible asset is amortized prospectively over the revised remaining useful life. The Company continues to believe that its definite-lived intangible assets are recoverable at December 31, 2020. Indefinite-lived intangible assets are reviewed for impairment at least annually. There has been no impairment of our intangible assets for the periods presented. |
Stock Based Compensation | Stock Based Compensation The Company measures stock-based compensation cost at the grant date based on the estimated fair value of the award and recognizes it as expense over the employee’s requisite service period on a straight-line basis. The Company records the expense for share-based awards subject to performance-based milestone vesting over the remaining service period when management determines that achievement of the milestone is probable. Management evaluates whether the achievement of a performance-based milestone is probable as of the reporting date. The Company has no awards that are subject to market conditions. The Company recognizes stock-based compensation expense based upon options that are ultimately expected to vest, and accordingly, such compensation expense has been adjusted by an amount of estimated forfeitures. The Company uses the Black-Scholes option pricing model to calculate the fair value of share-based awards on the grant date. The following assumptions are used in calculating the fair value of share-based awards: Expected term Expected volatility Risk-free interest rate zero-coupon Expected dividend yield Estimated forfeiture rates non-executive non-employee |
Advertising Costs | Advertising Costs The Company expenses advertising costs as they are incurred. Advertising expense for the years ended December 31, 2020, 2019 and 2018 was $0.3 million, $0.1 million and $0.2 million, respectively. |
Recent Accounting Standards Updates | Recent Accounting Standards Updates We consider the applicability and impact of all Accounting Standards Updates on the Company’s consolidated financial statements. Updates not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on the Company’s consolidated financial position or results of operations. Recently issued Accounting Standards Updates that we feel may be applicable to the Company are as follows: Recently Issued Accounting Standard Updates – Adopted During the Period On May 21, 2020, the SEC announced that it would adopt amendments to the financial disclosure requirements for acquisitions and dispositions of businesses in Rules 3-05, 3-14, 8-04, 8-05, 8-06, S-X, 1-02(w), Rule 12b-2 Specific changes to the significance test include changes to the investment test component, which compares the registrant’s and its other subsidiaries’ investment in and advances to the tested subsidiary to the registrant’s aggregate worldwide market value if available, instead of the registrant’s total assets on a consolidated basis under the unamended Rule. The amendments also changed the income test component by adding a revenue component to it. The amendments are effective on January 1, 2021. However, voluntary compliance with the final amendments was permitted in advance of the effective date. As a result of the 2020 acquisitions of EMT, NMS and ARTeSYN, the Company voluntarily adopted the amendments prior to their effective date and determined the acquired businesses are not significant subsidiaries and therefore no separate financial statements are required. In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. (“ASU”) 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” 2018-13 “Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements ” 2018-13 In August 2018, the FASB issued ASU 2018-15, “Intangibles – Goodwill and Other – Internal-Use 350-40): 2018-15 internal-use internal-use over the term of the hosting arrangement, which includes reasonably certain renewals. The Company adopted ASU 2018-13 In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326).” 2016-13 2016-13 2016-13 2016-13 “Credit Losses,” In November 2018, the FASB issued ASU 2018-18, “Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606.” 2018-18 “Collaborative Arrangements,” “Revenue from Contracts with Customers,” 2018-13 In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes.” 2019-12 year-to-date 2018-13 Recently Issued Accounting Standard Updates – Not Yet Adopted In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) ’ s Own Equity (Subtopic 815-40). ” 2020-06 2020-06 2020-06 2020-06 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule of Cash, Cash Equivalents and Restricted Cash | The following is a summary of the Company’s cash, cash equivalents, and restricted cash total as presented in the Company’s consolidated statements of cash flows for the years ended December 31, 2020, 2019 and 2018: For the Years Ended December 31, 2020 2019 2018 (Amounts in thousands) Cash and cash equivalents $ 717,292 $ 528,392 $ 193,822 Restricted cash — 9,015 — Total cash, cash equivalents, and restricted cash $ 717,292 $ 537,407 $ 193,822 |
Property, Plant and Equipment | Property, plant & equipment is recorded at cost less allowances for depreciation. Depreciation is calculated using the straight-line method over the estimated useful life of the asset as follows: Classification Estimated Useful Life Buildings Thirty years Leasehold improvements Shorter of the term of the lease or estimated useful life Equipment Three Furniture, fixtures and office equipment Three Computer hardware and software Three |
Reconciliation of Basic and Diluted Shares Amounts | A reconciliation of basic and diluted share amounts is as follows: For the Years Ended 2020 2019 2018 (Amounts in thousands, except Net income $ 59,926 $ 21,411 $ 16,617 Weighted average shares used in computing net income per share - basic 52,554 48,343 43,767 Effect of dilutive shares: Options and stock units 971 864 581 Convertible senior notes 367 — 1,123 Dilutive potential common shares 1,338 864 1,704 Weighted average shares used in computing net income per share - diluted 53,892 49,206 45,471 Earnings per share: Basic $ 1.14 $ 0.44 $ 0.38 Diluted $ 1.11 $ 0.44 $ 0.37 |
Summary of Product Revenues by Product Line | The following table represents product revenues by product line: For the Years Ended December 31, 2020 (1) 2019 (2) 2018 (Amounts in thousands) Filtration products $ 174,896 $ 119,534 $ 90,586 Chromatography products 73,551 64,635 45,326 Process analytics products 33,346 16,405 — Proteins products 80,732 65,124 54,375 Other 3,611 4,399 3,604 Total product revenue $ 366,136 $ 270,097 $ 193,891 (1) 2020 revenue for filtration products includes revenue related to EMT from July 13, 2020, NMS from October 20, 2020 and ARTeSYN from December 3, 2020. (2) 2019 revenue for process analytics products includes revenue related to C Technologies from May 31, 2019 through December 31, 2019. |
Total Assets by Geographic Area | The following table represents the Company’s total assets by geographic area: December 31, 2020 2019 (Amounts in thousands) Total assets by geographic locations: North America $ 1,697,149 $ 1,260,217 Europe 188,698 133,599 APAC 17,040 6,297 Total assets by geographic location $ 1,902,887 $ 1,400,113 |
Long Lived Assets by Geographic Area | The following table represents the Company’s long-lived assets by geographic area: December 31, 2020 2019 (Amounts in Long-lived assets by geographic locations: North America $ 78,429 $ 66,756 Europe 12,918 6,775 APAC 1,272 869 Total long-lived assets by geographic location $ 92,619 $ 74,400 |
Percentage of Revenue from Significant Customers | Revenue from significant customers that represent 10% or more of the Company’s total revenue is as follows: For the Years Ended 2020 2019 2018 MilliporeSigma 11 % 13 % 15 % Cytiva (formerly GE Healthcare) N/A 12 % 15 % |
Total Revenue | |
Percentage by Geographic Area or Significant Customers | The following table represents the Company’s total revenue by geographic area (based on the location of the customer): For the Years Ended 2020 2019 2018 Revenue by customers’ geographic locations: North America 48 % 51 % 48 % Europe 38 % 37 % 40 % APAC/Other 14 % 12 % 12 % Total revenue 100 % 100 % 100 % |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
ARTeSYN Biosolutions | |
Schedule of Business Combination Consideration Transferred | Total consideration transferred is as follows (amounts in thousands): Cash consideration $ 130,713 Equity consideration 69,422 Contingent consideration 1,548 Settlement of preexisting liabilities 2,310 Fair value of net assets acquired $ 203,993 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The components and estimated allocation of the purchase price consists of the following amounts (amounts in thousands): Cash and cash equivalents $ 2,982 Accounts receivable 4,811 Inventory 8,592 Prepaid expenses and other current assets 5,561 Property and equipment 1,836 Operating lease right of use asset 1,611 Other noncurrent assets 26 Customer relationships 38,400 Developed technology 27,060 Trademark and tradename 1,630 Non-competition 300 Goodwill 128,658 Accounts payable (2,161 ) Accrued liabilities (8,856 ) Deferred revenue (3,583 ) Deferred tax liabilities, net (1,240 ) Notes payable (24 ) Operating lease liability (417 ) Operating lease liability, long-term (1,193 ) Fair value of net assets acquired $ 203,993 |
Schedule of Identified Intangible Assets and Estimated Useful Lives | The following table sets forth the components of the identified intangible assets associated with the ARTeSYN Acquisition and their estimated useful lives: Useful life Fair Value (Amounts in thousands) Customer relationships 17 years $ 38,400 Developed technology 15 years 27,060 Trademark and tradename 21 years 1,630 Non-competition 3 years 300 $ 67,390 |
Non-Metallic Solutions | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The components and estimated allocation of the purchase price consist of the following amounts (amounts in thousands): Cash and cash equivalents $ 1,163 Accounts receivable 415 Inventory 334 Prepaid expenses and other current assets 13 Property and equipment 73 Operating lease right of use asset 194 Customer relationships 6,370 Developed technology 1,810 Trademark and tradename 190 Non-competition 90 Goodwill 6,784 Deferred tax assets 24 Accounts payable (96 ) Accrued liabilities (999 ) Operating lease liability (136 ) Operating lease liability, long-term (59 ) Fair value of net assets acquired $ 16,170 |
Schedule of Identified Intangible Assets and Estimated Useful Lives | The following table sets forth the components of the identified intangible assets associated with the NMS Acquisition and their estimated useful lives: Useful life Fair Value (Amounts in thousands) Customer relationships 14 years $ 6,370 Developed technology 12 years 1,810 Trademark and tradename 15 years 190 Non-competition 3 years 90 $ 8,460 |
Engineered Molding Technology LLC | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The components and allocation of the purchase price consist of the following amounts (amounts in thousands): Cash and cash equivalents $ 69 Accounts receivable 1,057 Inventory 449 Prepaid expenses and other current assets 7 Property and equipment 472 Operating lease right of use assets 1,050 Customer relationships 11,080 Developed technology 2,910 Trademark and tradename 320 Non-compete 50 Goodwill 12,585 Accounts payable (283 ) Accrued liabilities (202 ) Operating lease liability (211 ) Operating lease liability, long-term (839 ) Fair value of net assets acquired $ 28,514 |
Schedule of Identified Intangible Assets and Estimated Useful Lives | The following table sets forth the components of the identified intangible assets associated with the EMT Acquisition and their estimated useful lives: Useful life Fair Value (Amounts in thousands) Customer relationships 14 years $ 11,080 Developed technology 11 years 2,910 Trademark and tradename 14 years 320 Non-competition 3 years 50 $ 14,360 |
C Technologies, Inc. | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The components and allocation of the purchase price consists of the following amounts (amounts in thousands): Cash and cash equivalents $ 3,795 Restricted cash 26,933 Accounts receivable 3,044 Inventory 3,783 Prepaid expenses and other current assets 93 Fixed assets 40 Operating lease right of use asset 3,836 Customer relationships 59,680 Developed technology 28,920 Trademark and tradename 1,570 Non-competition 660 Goodwill 142,314 Deferred taxes 895 Accounts payable (436 ) Accrued liabilities (2,767 ) Accrued bonus (26,928 ) Deferred revenue (1,709 ) Operating lease liability (51 ) Operating lease liability, long-term (3,785 ) Fair value of net assets acquired $ 239,887 |
Unaudited Supplemental Pro Forma Information | The following pro forma financial information does not reflect any adjustments for anticipated expense savings resulting from the acquisition and is not necessarily indicative of the operating results that would have actually occurred had the transaction been consummated on January 1, 2019 or of future results (amounts in thousands, except per share data): December 31, 2019 2018 Total revenue $ 279,434 $ 217,739 Net income $ 23,394 $ 21,195 Earnings per share: Basic $ 0.48 $ 0.44 Diluted $ 0.48 $ 0.43 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Maturities of lease liabilities | The maturities of the Company’s operating lease liabilities as of December 31, 2020 are as follows (amounts in thousands): As of December 31, 2020 Amount 2021 $ 7,007 2022 5,732 2023 4,614 2024 4,162 2025 3,653 2026 and thereafter 12,949 Total future minimum lease payments 38,117 Less: amount of lease payment representing interest 6,438 Total operating lease liabilities $ 31,679 |
Abstract of operating lease liability | Total operating lease liabilities included on the Company’s consolidated balance sheet are as follows (amounts in thousands): December 31, 2020 2019 Operating lease liability $ 5,254 $ 3,557 Operating lease liability, long-term 26,425 26,995 Minimum operating lease payments $ 31,679 $ 30,552 |
Lease, Cost | For the year ended December 31, 2020 and 2019, total lease cost is comprised of the following: For the Years Ended Lease Cost 2020 2019 (Amounts in Operating lease cost $ 5,645 $ 4,480 Variable operating lease cost 2,033 1,480 Lease cost $ 7,678 $ 5,960 |
Schedule Of Supplemental Disclosure Of Cash Flows Related To Operating Leases | The following information represents supplemental disclosure for the consolidated statements of cash flows related to operating leases (amounts in thousands): For the Years Ended 2020 2019 Operating lease cost $ (5,647 ) $ (4,004 ) |
Schedule Of Discount Rate And Lease Term Used In Calculating Lease Liabilities And Assets | The weighted average remaining lease term and the weighted average discount rate used to measure the Company’s operating lease liabilities as of December 31, 2020 were: Weighted average remaining lease term (years) 7.19 Weighted average discount rate 4.90 % |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disaggregation of Revenue | Revenue for the years ended December 31, 2020, 2019 and 2018 was as follows (amounts in thousands, except percentages): For the Years Ended December 31, 2020 2019 2018 (Amounts in thousands) Product revenue $ 366,136 $ 270,097 $ 193,891 Royalty and other income 124 148 141 Total revenue $ 366,260 $ 270,245 $ 194,032 |
Revenue from Significant Customers | Revenue from significant customers that represent 10% or more of the Company’s total revenue is as follows (amounts in thousands): For the Years Ended December 31, 2020 2019 2018 MilliporeSigma $ 39,511 $ 36,190 $ 29,843 Cytiva (formerly GE Healthcare) N/A $ 31,441 $ 29,616 |
Summary of Receivables and Deferred Revenue from Contracts with Customers | The following table provides information about receivables and deferred revenue from contracts with customers as of December 31, 2020 (amounts in thousands): 2020 2019 Balances from contracts with customers only: Accounts receivable $ 71,257 $ 43,068 Deferred revenue (included in accrued liabilities in the consolidated balance sheets) $ 15,318 $ 5,005 Revenue recognized during years presented relating to: The beginning deferred revenue balance $ 3,361 $ 833 Changes in pricing related to products or services satisfied in previous periods — — |
Credit Losses (Tables)
Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Credit Loss [Abstract] | |
Summary Of Allowance For Credit Losses For Accounts Receivables | The following table provides a roll-forward of the allowance for credit losses in 2020 that is deducted from the amortized cost basis of accounts receivable to present the net amount expected to be collected (amounts in thousands): 2020 Balance at January 1, 2020 $ (525 ) Current period change for expected credit losses (133 ) Balance at March 31, 2020 $ (658 ) Current period change for write-offs 37 Current period change for expected credit losses 83 Balance at June 30, 2020 $ (538 ) Current period change for expected credit losses (83 ) Balance at September 30, 2020 $ (621 ) Current period change for write-offs 65 Current period change for expected credit losses (206 ) Balance at December 31, 2020 $ (762 ) |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Changes in Carrying Value of Goodwill | The following table represents the changes in the carrying value of goodwill for the years ended December 31, 2020 and 2019 (amounts in thousands): Balance as of December 31, 2018 $ 326,735 Acquisition of C Technologies 142,021 Cumulative translation adjustment (343 ) Balance as of December 31, 2019 $ 468,413 Measurement period adjustment - C Technologies 293 Acquisition of EMT 12,585 Acquisition of NMS 6,784 Acquisition of ARTeSYN 128,658 Cumulative translation adjustment 1,572 Balance as of December 31, 2020 $ 618,305 |
Intangible assets | Intangible assets, net consisted of the following at December 31, 2020: December 31, 2020 Gross Carrying Value Accumulated Amortization Net Carrying Value Weighted Average Useful Life (in years) (Amounts in thousands) Finite-lived intangible assets: Technology - developed $ 114,217 $ (14,444 ) $ 99,773 17 Patents 240 (240 ) — 8 Customer relationships 217,790 (37,333 ) 180,457 16 Trademarks 5,893 (541 ) 5,352 20 Other intangibles 2,142 (1,324 ) 818 3 Total finite-lived intangible assets 340,282 (53,882 ) 286,400 16 Indefinite-lived intangible asset: Trademarks 700 — 700 — Total intangible assets $ 340,982 $ (53,882 ) $ 287,100 Intangible assets consisted of the following at December 31, 2019: December 31, 2019 Gross Carrying Value Accumulated Amortization Net Carrying Value Weighted Average Useful Life (in years) (Amounts in thousands) Finite-lived intangible assets: Technology - developed $ 82,169 $ (9,669 ) $ 72,500 19 Patents 240 (240 ) — 8 Customer relationships 160,825 (25,642 ) 135,183 15 Trademarks 3,752 (333 ) 3,419 20 Other intangibles 1,697 (947 ) 750 3 Total finite-lived intangible assets 248,683 (36,831 ) 211,852 16 Indefinite-lived intangible asset: Trademarks 700 — 700 — Total intangible assets $ 249,383 $ (36,831 ) $ 212,552 |
Schedule of Amortization Expense for Amortized Intangible Assets | Amortization expense for finite-lived intangible assets was $16.1 million, $13.6 million and $10.6 million for the years ended December 31, 2020, 2019 and 2018, respectively. As of December 31, 2020, the Company expects to record the following amortization expense (amounts in thousands): For the Years Ended December 31, Estimated 2021 $ 20,767 2022 20,765 2023 20,648 2024 20,080 2025 19,813 2026 and thereafter 184,327 Total $ 286,400 |
Consolidated Balance Sheet De_2
Consolidated Balance Sheet Detail (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventories | Inventories, net consists of the following: December 31, 2020 2019 (Amounts in thousands) Raw materials $ 48,746 $ 29,328 Work-in-process 8,084 8,360 Finished products 38,195 17,144 Total inventories, net $ 95,025 $ 54,832 |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consist of the following: December 31, 2020 2019 (Amounts in thousands) Equipment maintenance and services $ 4,601 $ 1,662 Prepaid income taxes 2,649 2,719 Prepaid insurance 1,936 80 Other 9,490 1,456 Total prepaid expenses and other current assets $ 18,676 $ 5,917 |
Property, Plant and Equipment | Property, plant and equipment consist of the following: December 31, 2020 2019 (Amounts in thousands) Land $ 1,023 $ 1,023 Buildings 1,007 764 Leasehold improvements 31,331 23,905 Equipment 43,072 36,257 Furniture, fixtures and office equipment 8,714 6,312 Computer hardware and software 15,397 8,810 Construction in progress 14,927 6,707 Other 455 56 Total property, plant and equipment 115,926 83,834 Less - Accumulated depreciation (49,056 ) (35,379 ) Total property, plant and equipment, net $ 66,870 $ 48,455 |
Accrued Liabilities | Accrued liabilities consist of the following: December 31, 2020 2019 (Amounts in thousands) Employee compensation $ 20,288 $ 19,850 Income taxes payable 1,423 3,874 Royalty and license fees 466 123 Warranties 1,576 1,500 Professional fees 1,425 1,081 Deferred revenue 15,318 5,005 Other 12,589 1,898 Total accrued liabilities $ 53,085 $ 33,331 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Before Income Taxes | The components of income before income taxes are as follows: For the Years Ended December 31, 2020 2019 2018 (Amounts in thousands) Domestic $ 27,545 $ (5,432 ) $ (73 ) Foreign 31,672 31,583 21,509 Income before income taxes $ 59,217 $ 26,151 $ 21,436 |
Income Tax Provision (Benefit) | The components of the income tax provision are as follows: For the Years Ended December 31, 2020 2019 2018 (Amounts in thousands) Components of the income tax (benefit) provision: Current $ 5,193 $ 8,290 $ 4,354 Deferred (5,902 ) (5,287 ) 465 Equity — 1,737 — Total $ (709 ) $ 4,740 $ 4,819 Jurisdictional components of the income tax (benefit) provision: Federal $ (4,741 ) $ (965 ) $ (393 ) State (3,011 ) (1,764 ) 718 Foreign 7,043 7,469 4,494 Total $ (709 ) $ 4,740 $ 4,819 |
Consolidated Deferred Tax Assets (Liabilities) | The components of deferred income taxes are as follows: December 31, 2020 2019 (Amounts in thousands) Deferred tax assets: Temporary timing differences: Stock-based compensation expense $ 3,320 $ 2,922 Operating leases 7,257 7,295 Accrued bonus 25 1,379 Other 5,749 4,994 Total temporary timing differences 16,351 16,590 Net operating loss carryforwards 1,539 221 Tax business credits carryforwards 5,553 924 Total deferred tax assets 23,443 17,735 Less: valuation allowance (727 ) (6 ) Net deferred tax assets 22,716 17,729 Deferred tax liabilities: Goodwill (1,487 ) (1,288 ) Fixed assets (4,233 ) (1,650 ) Acquired intangible assets (27,152 ) (24,605 ) Operating lease right of use assets (5,744 ) (6,144 ) Conversion option on convertible notes (8,651 ) (11,066 ) Total deferred tax liabilities (47,267 ) (44,753 ) Total net deferred tax liabilities $ (24,551 ) $ (27,024 ) |
Reconciliation of Federal Statutory Rate to Effective Income Tax Rate | The reconciliation of the federal statutory rate to the effective income tax rate for the years ended December 31, 2020, 2019 and 2018 is as follows: For the Years Ended December 31, 2020 2019 2018 Amount % Amount % Amount % (Amounts in thousands, except percentages) Income before income taxes $ 59,217 $ 26,151 $ 21,436 Expected tax at statutory rate 12,436 21.0 % 5,492 21.0 % 4,502 21.0 % Adjustments due to: Difference between U.S. and foreign tax 618 1.0 % 436 1.7 % 345 1.6 % State income and franchise tax 133 0.2 % (179 ) (0.7 %) 91 0.4 % Business tax credits (4,660 ) (7.9 %) (2,746 ) (10.5 %) (1,760 ) (8.2 %) Permanent differences: Stock-based compensation expense (9,243 ) (15.6 %) (1,877 ) (7.2 %) (1,213 ) (5.7 %) U.S. taxation of foreign earnings 51 0.1 % 2,227 8.5 % 2,190 10.2 % Executive compensation 1,401 2.4 % 841 3.2 % 367 1.7 % Other 896 1.5 % 92 0.4 % 97 0.5 % Change in U.S. federal tax rates (2,192 ) (3.7 %) — 0.0 % — 0.0 % Change in U.S. state tax rates (708 ) (1.2 %) — 0.0 % 748 3.5 % Change in Netherlands tax rate 250 0.4 % (193 ) (0.7 %) (388 ) (1.8 %) Transition tax — 0.0 % — 0.0 % (1,338 ) (6.2 %) Uncertain tax provisions (168 ) (0.3 %) 1,069 4.1 % 1,021 4.8 % Change in valuation allowance (12 ) (0.0 %) (125 ) (0.5 %) 125 0.6 % Return to provision adjustments (89 ) (0.2 %) (79 ) (0.3 %) 33 0.2 % Other 578 1.0 % (218 ) (0.8 %) (1 ) (0.1 %) Income tax provision $ (709 ) (1.2 %) $ 4,740 18.1 % $ 4,819 22.5 % |
Summary of Tax Returns Periods Subject to Examination by Federal, State and Foreign Tax Authorities | The Company’s tax returns are subject to examination by federal, state and foreign tax authorities. The Company’s two major tax jurisdictions are subject to examination for the following periods: Jurisdiction Fiscal Years Subject United States - federal and state 2017-2020 Sweden 2013-2020 |
Reconciliation of Unrecognized Tax Benefits | The following is a tabular reconciliation of the total amounts of unrecognized tax benefits: For the Years Ended December 31, 2020 2019 (Amounts in thousands) Balance of gross unrecognized tax benefits, beginning of period $ 3,422 $ 2,852 Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in the current period 154 602 Gross amounts of decreases in unrecognized tax benefits as a result of tax positions taken in the prior period (337 ) (16 ) Gross amounts of decrease due to release (39 ) (16 ) Balance of gross unrecognized tax benefits, end of period $ 3,200 $ 3,422 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Stock-Based Compensation Expense | The following table presents stock-based compensation expense in the Company’s consolidated statements of comprehensive income: For the Years Ended December 31, 2020 2019 2018 (Amounts in thousands) Cost of product revenue $ 1,929 $ 1,368 $ 1,019 Research and development 1,534 1,373 917 Selling, general and administrative 13,544 10,106 8,256 Total stock-based compensation $ 17,007 $ 12,847 $ 10,192 |
Estimated Weighted Average Assumptions | The fair value of share-based awards granted during the years ended December 31, 2020, 2019 and 2018 were calculated using the following estimated assumptions: For the Years Ended December 31, 2020 2019 2018 Expected term (in years) 5.5-6.5 5.5-6.5 5.5-7.5 Expected volatility (range) 45.14 – 50.87% 45.14 – 50.87% 45.14 – 50.87% Risk-free interest rate 0.34 – 1.15% 1.55 – 2.56% 2.63 – 2.96% Expected dividend yield 0% 0% 0% |
Summary of Option Activity | Information regarding option activity for the year ended December 31, 2020 under the Plans is summarized below: Shares Weighted average exercise price Weighted- Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value (in Thousands) Options outstanding at December 31, 2019 957,559 $ 30.81 Granted 79,698 $ 115.81 Exercised (340,546 ) $ 23.95 Forfeited/expired/cancelled — $ — Options outstanding at December 31, 2020 696,711 $ 43.88 6.90 $ 102,958 Options exercisable at December 31, 2020 311,988 $ 31.75 5.91 $ 49,879 Vested and expected to vest at December 31, 2020 (1) 667,220 6.86 $ 99,096 (1) Represents the number of vested options as of December 31, 2020 plus the number of unvested options expected to vest as of December 31, 2020 based on the unvested outstanding options at December 31, 2020 adjusted for estimated forfeiture rates of 8% for awards granted to non-executive |
Summary of Restricted Stock Unit Activity | The fair value of stock units is calculated using the closing price of the Company’s common stock on the date of grant. Information regarding stock unit activity, which includes activity for restricted stock units and performance stock units, for the year ended December 31, 2020 under the Plans is summarized below: Shares Weighted- Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value (in Thousands) Unvested at December 31, 2019 734,984 Awarded 207,788 Vested (244,648 ) Forfeited/expired/cancelled (32,584 ) Unvested at December 31, 2020 665,540 3.32 $ 127,904 Vested and expected to vest at December 31, 2020 (1) 650,047 3.01 $ 124,568 (1) Represents the number of vested stock units as of December 31, 2020 plus the number of unvested stock units expected to vest as of December 31, 2020 based on the unvested outstanding stock units at December 31, 2020 adjusted for estimated forfeiture rates of 8% for awards granted to non-executive |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Carrying Value of Convertible Senior Notes | The carrying value of the Company’s convertible senior notes is as follows: December 31, 2020 2019 (Amounts in thousands) 0.375% convertible senior notes due 2024: Convertible senior notes, current portion: Principal amount $ 287,500 $ — Unamortized debt discount (38,317 ) — Unamortized debt issuance costs (5,446 ) — Total convertible senior notes, current portion 243,737 — Convertible senior notes: Principal amount — 287,500 Unamortized debt discount — (47,921 ) Unamortized debt issuance costs — (6,812 ) Total convertible senior notes $ 243,737 $ 232,767 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of Changes in Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive income (loss) consisted of the following for the years ended December 31, 2020 and 2019 (amounts in thousands): Foreign Balance as of December 31, 2018 $ (11,893 ) Other comprehensive loss (3,134 ) Balance as of December 31, 2019 (15,027 ) Other comprehensive income 17,112 Balance as of December 31, 2020 $ 2,085 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Consolidated Statements of Operations Information for Each of Previous Eight Quarters | For the Years Ended December 31, 2020 Q1 Q2 Q3 Q4 (Amounts in thousands, except per share data) Revenue $ 76,090 $ 87,462 $ 94,060 $ 108,648 Gross profit 44,108 50,599 54,434 60,485 Operating expenses 64,184 67,925 73,099 91,229 Net income 9,815 15,861 14,552 19,698 Earnings per share: Basic $ 0.19 $ 0.30 $ 0.28 $ 0.37 Diluted $ 0.18 $ 0.30 $ 0.27 $ 0.36 For the Years Ended December 31, 2019 Q1 Q2 Q3 Q4 (Amounts in thousands, except per share data) Revenue $ 60,634 $ 70,692 $ 69,445 $ 69,474 Gross profit 33,789 39,984 38,020 39,353 Operating expenses 49,463 59,638 61,481 63,580 Net income 8,053 8,095 1,659 3,604 Earnings per share: Basic $ 0.18 $ 0.17 $ 0.03 $ 0.07 Diluted $ 0.17 $ 0.17 $ 0.03 $ 0.07 |
Summary Of Significant Accoun_4
Summary Of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2020 | Jul. 31, 2019 | |
Summary Of Significant Accounting Policies [Line Items] | ||||||
Stock options, outstanding | 696,711 | 957,559 | ||||
Stock options, weighted average exercise price | $ 43.88 | $ 30.81 | ||||
Common stock excluded from calculation of diluted earnings per share | 98,048 | 104,316 | 479,854 | |||
Convertible senior notes | 366,534 | 1,123,139 | 1,123,000 | |||
Advertising Expense | $ 300,000 | $ 100,000 | $ 200,000 | |||
Cash and cash equivalents | 717,292,000 | 528,392,000 | $ 193,822,000 | |||
Restricted Cash | $ 9,000,000 | $ 9,000,000 | ||||
Accounts Receivable [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Concentration Risk, Percentage | 10.00% | |||||
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Cash and cash equivalents | $ 549,000,000 | $ 415,600,000 | ||||
0.375% Convertible Senior Notes due 2024 | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Principal amount | $ 287,500,000 | |||||
Notes, frequency of periodic payment | semi-annually | |||||
Total convertible senior notes | 501,000,000 | |||||
Fair value of convertible senior notes | $ 243,700,000 | |||||
Senior convertible notes | 0.375% | 0.375% | ||||
Awards Granted to Executive Level Employees | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated forfeiture rates | 3.00% | |||||
Awards Granted to Non-Executive Level Employees | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated forfeiture rates | 8.00% | |||||
Option To Purchase Common Stock | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Stock options, outstanding | 696,711 | 957,559 | 998,226 | |||
Stock options, weighted average exercise price | $ 30.81 | $ 27.54 | ||||
Restricted Stock Units (RSUs) | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Restricted stock units, outstanding | 665,540 | 734,984 | 705,413 | |||
Non-Employee Directors | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated forfeiture rates | 0.00% | |||||
Employee Stock Option [Member] | Awards Granted to Executive Level Employees | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated forfeiture rates | 3.00% | |||||
Employee Stock Option [Member] | Awards Granted to Non-Executive Level Employees | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated forfeiture rates | 8.00% | |||||
Cytiva [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Concentration Risk, Percentage | 11.00% | 18.00% |
Schedule of Cash, Cash Equivale
Schedule of Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 717,292 | $ 528,392 | $ 193,822 | |
Restricted cash | 9,015 | |||
Total cash, cash equivalents, and restricted cash | $ 717,292 | $ 537,407 | $ 193,822 | $ 173,759 |
Estimated Useful Life of Assets
Estimated Useful Life of Assets (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 30 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | Shorter of the term of the lease or estimated useful life |
Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 12 years |
Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Furniture Fixtures And Office Equipment Member [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 8 years |
Furniture Fixtures And Office Equipment Member [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Computer Hardware And Software member [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 7 years |
Computer Hardware And Software member [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Reconciliation of Basic and Dil
Reconciliation of Basic and Diluted Shares Amounts (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | |||||||||||
Net income | $ 19,698 | $ 14,552 | $ 15,861 | $ 9,815 | $ 3,604 | $ 1,659 | $ 8,095 | $ 8,053 | $ 59,926 | $ 21,411 | $ 16,617 |
Weighted average shares used in computing net income per share - basic | 52,554,000 | 48,343,000 | 43,767,000 | ||||||||
Effect of dilutive shares: | |||||||||||
Options and stock units | 971,000 | 864,000 | 581,000 | ||||||||
Convertible senior notes | 366,534 | 1,123,139 | 1,123,000 | ||||||||
Dilutive potential common shares | 1,338,000 | 864,000 | 1,704,000 | ||||||||
Weighted average shares used in computing net income per share - diluted | 53,892,000 | 49,206,000 | 45,471,000 | ||||||||
Earnings per share: | |||||||||||
Basic | $ 0.37 | $ 0.28 | $ 0.30 | $ 0.19 | $ 0.07 | $ 0.03 | $ 0.17 | $ 0.18 | $ 1.14 | $ 0.44 | $ 0.38 |
Diluted | $ 0.36 | $ 0.27 | $ 0.30 | $ 0.18 | $ 0.07 | $ 0.03 | $ 0.17 | $ 0.17 | $ 1.11 | $ 0.44 | $ 0.37 |
Summary of Product Revenues by
Summary of Product Revenues by Product Line (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Revenue from External Customer [Line Items] | |||||||||||||
Revenue | $ 108,648 | $ 94,060 | $ 87,462 | $ 76,090 | $ 69,474 | $ 69,445 | $ 70,692 | $ 60,634 | $ 366,260 | $ 270,245 | $ 194,032 | ||
Filtration Products [Member] | |||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||
Revenue | 174,896 | [1] | 119,534 | [2] | 90,586 | ||||||||
Chromatography Products [Member] | |||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||
Revenue | 73,551 | [1] | 64,635 | [2] | 45,326 | ||||||||
Process Analytics Products [Member] | |||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||
Revenue | 33,346 | [1] | 16,405 | [2] | |||||||||
Proteins Products [Member] | |||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||
Revenue | 80,732 | [1] | 65,124 | [2] | 54,375 | ||||||||
Other products [Member] | |||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||
Revenue | 3,611 | [1] | 4,399 | [2] | 3,604 | ||||||||
Products | |||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||
Revenue | $ 366,136 | [1] | $ 270,097 | [2] | $ 193,891 | ||||||||
[1] | 2020 revenue for filtration products includes revenue related to EMT from July 13, 2020, NMS from October 20, 2020 and ARTeSYN from December 3, 2020. | ||||||||||||
[2] | 2019 revenue includes process analytics revenue related to C Technologies from June 1, 2019 through December 31, 2019. |
Percentage of Revenue by Geogra
Percentage of Revenue by Geographic Area (Detail) - Total Revenue - Geographic Concentration Risk [Member] | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Concentration Risk [Line Items] | |||
Revenues, percentage by country | 100.00% | 100.00% | 100.00% |
North America [Member] | |||
Concentration Risk [Line Items] | |||
Revenues, percentage by country | 48.00% | 51.00% | 48.00% |
Europe [Member] | |||
Concentration Risk [Line Items] | |||
Revenues, percentage by country | 38.00% | 37.00% | 40.00% |
APAC Other [Member] | |||
Concentration Risk [Line Items] | |||
Revenues, percentage by country | 14.00% | 12.00% | 12.00% |
Total Assets by Geographic Area
Total Assets by Geographic Area (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ 1,902,887 | $ 1,400,113 |
North America | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 1,697,149 | 1,260,217 |
Europe | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 188,698 | 133,599 |
APAC | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ 17,040 | $ 6,297 |
Long Lived Assets by Geographic
Long Lived Assets by Geographic Area (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Long Lived Assets | $ 92,619 | $ 74,400 |
North America | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Long Lived Assets | 78,429 | 66,756 |
Europe | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Long Lived Assets | 12,918 | 6,775 |
APAC | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Long Lived Assets | $ 1,272 | $ 869 |
Percentage of Revenue from Sign
Percentage of Revenue from Significant Customers (Detail) - Customer Concentration Risk - Sales Revenue | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2017 | |
MilliporeSigma | |||
Revenue, Major Customer [Line Items] | |||
Revenue from significant customers as a percentage of total revenue | 11.00% | 13.00% | 15.00% |
Cytiva (formerly GE Healthcare) | |||
Revenue, Major Customer [Line Items] | |||
Revenue from significant customers as a percentage of total revenue | 12.00% | 15.00% |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | Oct. 27, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jul. 13, 2020 |
Business Acquisition [Line Items] | ||||||
Transaction costs | $ 4,000 | $ 4,000 | ||||
Business acquisition, goodwill acquired | 468,413 | $ 618,305 | 468,413 | $ 326,735 | ||
Employees | ||||||
Business Acquisition [Line Items] | ||||||
Transaction costs | 9,000 | |||||
Compensation Expense, Excluding Cost of Good and Service Sold | 3,700 | |||||
Selling, general and administrative | ||||||
Business Acquisition [Line Items] | ||||||
Transaction costs | 4,000 | |||||
C Technologies, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition, revenue | 16,400 | |||||
Business acquisitions proforma net loss | $ 7,400 | $ 23,394 | $ 21,195 | |||
Business acquisition, goodwill acquired | 142,314 | |||||
Deferred tax liability | 300 | |||||
C Technologies, Inc. | Employees | ||||||
Business Acquisition [Line Items] | ||||||
Compensation Expense, Excluding Cost of Good and Service Sold | 9,000 | |||||
C Technologies, Inc. | Goodwill [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible Asset Residual Value | 142,300 | |||||
ARTeSYN Biosolutions | ||||||
Business Acquisition [Line Items] | ||||||
Cash consideration | $ 130,000 | $ 130,700 | ||||
Shares issued for business acquisition | 372,990 | |||||
Value of common stock issued | 70,000 | $ 69,422 | ||||
Business combination, consideration transferred | $ 200,000 | 203,993 | ||||
Fair value of tangible assets acquired | 7,900 | |||||
Fair value of acquired finite lived intangible assets | 67,400 | |||||
Intangible Asset Residual Value | 128,700 | |||||
Business combination contingent consideration | 1,548 | |||||
Business Combination settlement of preexisting invoices | 2,310 | |||||
Business acquisition, goodwill acquired | 128,658 | |||||
ARTeSYN Biosolutions | Goodwill [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible Asset Residual Value | 128,700 | |||||
Non-Metallic Solutions | ||||||
Business Acquisition [Line Items] | ||||||
Business combination, consideration transferred | 16,200 | |||||
Fair value of tangible assets acquired | 900 | |||||
Fair value of acquired finite lived intangible assets | 8,500 | |||||
Intangible Asset Residual Value | 6,800 | |||||
Transaction costs | 200 | |||||
Business combinations cash deposited in escrow account | 1,300 | |||||
Business acquisition, goodwill acquired | 6,784 | |||||
Non-Metallic Solutions | Goodwill [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible Asset Residual Value | 6,800 | |||||
Engineered Molding Technology LLC | ||||||
Business Acquisition [Line Items] | ||||||
Business combination, consideration transferred | 28,500 | |||||
Fair value of tangible assets acquired | 1,500 | |||||
Business Combination, Acquisition Related Costs | 1,200 | |||||
Fair value of acquired finite lived intangible assets | 14,400 | |||||
Business acquisition, voting interest acquired | 100.00% | |||||
Business acquisition, Indemnification escrow | 2,200 | |||||
Business acquisition, goodwill acquired | 12,585 | |||||
Engineered Molding Technology LLC | Goodwill [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible Asset Residual Value | $ 12,600 |
Acquisitions (Consideration Tra
Acquisitions (Consideration Transferred) (Detail) - ARTeSYN Biosolutions - USD ($) $ in Thousands | Oct. 27, 2020 | Dec. 31, 2020 |
Business Acquisition [Line Items] | ||
Cash consideration | $ 130,713 | |
Equity consideration | $ 70,000 | 69,422 |
Contingent consideration | 1,548 | |
Settlement of preexisting liabilities | 2,310 | |
Fair value of net assets acquired | $ 200,000 | $ 203,993 |
Acquisitions (Fair Value of Net
Acquisitions (Fair Value of Net Assets Acquired) (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||
Goodwill | $ 618,305 | $ 468,413 | $ 326,735 |
ARTeSYN Biosolutions | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 2,982 | ||
Accounts receivable | 4,811 | ||
Inventory | 8,592 | ||
Prepaid expenses and other current assets | 5,561 | ||
Property and equipment | 1,836 | ||
Operating lease right of use asset | 1,611 | ||
Other noncurrent assets | 26 | ||
Business combination, intangible assets | 67,400 | ||
Goodwill | 128,658 | ||
Accounts payable | (2,161) | ||
Accrued liabilities | (8,856) | ||
Deferred revenue | (3,583) | ||
Deferred tax liabilities ,net | (1,240) | ||
Notes payable | (24) | ||
Operating lease liability | (417) | ||
Operating lease liability, long-term | (1,193) | ||
Fair value of net assets acquired | 203,993 | ||
ARTeSYN Biosolutions | Customer relationships | |||
Business Acquisition [Line Items] | |||
Business combination, intangible assets | 38,400 | ||
ARTeSYN Biosolutions | Developed technology | |||
Business Acquisition [Line Items] | |||
Business combination, intangible assets | 27,060 | ||
ARTeSYN Biosolutions | Trademark and tradename | |||
Business Acquisition [Line Items] | |||
Business combination, intangible assets | 1,630 | ||
ARTeSYN Biosolutions | Non-compete agreements | |||
Business Acquisition [Line Items] | |||
Business combination, intangible assets | 300 | ||
Non-Metallic Solutions | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 1,163 | ||
Accounts receivable | 415 | ||
Inventory | 334 | ||
Prepaid expenses and other current assets | 13 | ||
Property and equipment | 73 | ||
Operating lease right of use asset | 194 | ||
Deferred tax | 24 | ||
Business combination, intangible assets | 8,500 | ||
Goodwill | 6,784 | ||
Accounts payable | (96) | ||
Accrued liabilities | (999) | ||
Operating lease liability | (136) | ||
Operating lease liability, long-term | (59) | ||
Fair value of net assets acquired | 16,170 | ||
Non-Metallic Solutions | Customer relationships | |||
Business Acquisition [Line Items] | |||
Business combination, intangible assets | 6,370 | ||
Non-Metallic Solutions | Developed technology | |||
Business Acquisition [Line Items] | |||
Business combination, intangible assets | 1,810 | ||
Non-Metallic Solutions | Trademark and tradename | |||
Business Acquisition [Line Items] | |||
Business combination, intangible assets | 190 | ||
Non-Metallic Solutions | Non-compete agreements | |||
Business Acquisition [Line Items] | |||
Business combination, intangible assets | 90 | ||
Engineered Molding Technology LLC | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 69 | ||
Accounts receivable | 1,057 | ||
Inventory | 449 | ||
Prepaid expenses and other current assets | 7 | ||
Property and equipment | 472 | ||
Operating lease right of use asset | 1,050 | ||
Business combination, intangible assets | 14,400 | ||
Goodwill | 12,585 | ||
Accounts payable | (283) | ||
Accrued liabilities | (202) | ||
Operating lease liability | (211) | ||
Operating lease liability, long-term | (839) | ||
Fair value of net assets acquired | 28,514 | ||
Engineered Molding Technology LLC | Customer relationships | |||
Business Acquisition [Line Items] | |||
Business combination, intangible assets | 11,080 | ||
Engineered Molding Technology LLC | Developed technology | |||
Business Acquisition [Line Items] | |||
Business combination, intangible assets | 2,910 | ||
Engineered Molding Technology LLC | Trademark and tradename | |||
Business Acquisition [Line Items] | |||
Business combination, intangible assets | 320 | ||
Engineered Molding Technology LLC | Non-compete agreements | |||
Business Acquisition [Line Items] | |||
Business combination, intangible assets | 50 | ||
C Technologies | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 3,795 | ||
Restricted cash | 26,933 | ||
Accounts receivable | 3,044 | ||
Inventory | 3,783 | ||
Prepaid expenses and other current assets | 93 | ||
Property and equipment | 40 | ||
Operating lease right of use asset | 3,836 | ||
Deferred tax | 895 | ||
Goodwill | 142,314 | ||
Accounts payable | (436) | ||
Accrued liabilities | (2,767) | ||
Accrued bonus | (26,928) | ||
Deferred revenue | (1,709) | ||
Operating lease liability | (51) | ||
Operating lease liability, long-term | (3,785) | ||
Fair value of net assets acquired | 239,887 | ||
C Technologies | Customer relationships | |||
Business Acquisition [Line Items] | |||
Business combination, intangible assets | 59,680 | ||
C Technologies | Developed technology | |||
Business Acquisition [Line Items] | |||
Business combination, intangible assets | 28,920 | ||
C Technologies | Trademark and tradename | |||
Business Acquisition [Line Items] | |||
Business combination, intangible assets | 1,570 | ||
C Technologies | Non-compete agreements | |||
Business Acquisition [Line Items] | |||
Business combination, intangible assets | $ 660 |
Acquisitions (Estimated Useful
Acquisitions (Estimated Useful Life and Fair Value) (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
ARTeSYN Biosolutions | |
Fair Value | $ 67,390 |
ARTeSYN Biosolutions | Customer Relationships [Member] | |
Weighted Average Useful Life (in years) | 17 years |
Fair Value | $ 38,400 |
ARTeSYN Biosolutions | Developed Technology Rights [Member] | |
Weighted Average Useful Life (in years) | 15 years |
Fair Value | $ 27,060 |
ARTeSYN Biosolutions | Trademark and tradename [Member] | |
Weighted Average Useful Life (in years) | 21 years |
Fair Value | $ 1,630 |
ARTeSYN Biosolutions | Noncompete Agreements [Member] | |
Weighted Average Useful Life (in years) | 3 years |
Fair Value | $ 300 |
Non-Metallic Solutions | |
Fair Value | $ 8,460 |
Non-Metallic Solutions | Customer Relationships [Member] | |
Weighted Average Useful Life (in years) | 14 years |
Fair Value | $ 6,370 |
Non-Metallic Solutions | Developed Technology Rights [Member] | |
Weighted Average Useful Life (in years) | 12 years |
Fair Value | $ 1,810 |
Non-Metallic Solutions | Trademark and tradename [Member] | |
Weighted Average Useful Life (in years) | 15 years |
Fair Value | $ 190 |
Non-Metallic Solutions | Noncompete Agreements [Member] | |
Weighted Average Useful Life (in years) | 3 years |
Fair Value | $ 90 |
Engineered Molding Technology LLC | |
Fair Value | $ 14,360 |
Engineered Molding Technology LLC | Customer Relationships [Member] | |
Weighted Average Useful Life (in years) | 14 years |
Fair Value | $ 11,080 |
Engineered Molding Technology LLC | Developed Technology Rights [Member] | |
Weighted Average Useful Life (in years) | 11 years |
Fair Value | $ 2,910 |
Engineered Molding Technology LLC | Trademark and tradename [Member] | |
Weighted Average Useful Life (in years) | 14 years |
Fair Value | $ 320 |
Engineered Molding Technology LLC | Noncompete Agreements [Member] | |
Weighted Average Useful Life (in years) | 3 years |
Fair Value | $ 50 |
Acquisitions (Unaudited Supplem
Acquisitions (Unaudited Supplemental Pro Forma Information) (Detail) - C Technologies [Member] - USD ($) $ / shares in Units, $ in Thousands | 7 Months Ended | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | |||
Total revenue | $ 279,434 | $ 217,739 | |
Net income | $ 7,400 | $ 23,394 | $ 21,195 |
Basic | $ 0.48 | $ 0.44 | |
Diluted | $ 0.48 | $ 0.43 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Jul. 07, 2020ft² | Dec. 31, 2019USD ($) | |
Operating lease right of use assets | $ 25,176 | $ 25,176 | $ 25,707 | |
Operating lease liabilities | 31,679 | 31,679 | $ 30,552 | |
Increase in operating lease liabilities | $ 3,000 | |||
Marlborough Massachusetts [Member] | ||||
Increase in right of use asset | 2,800 | |||
Increase in operating lease liabilities | $ 2,800 | |||
Expansion of existing premises | ft² | 66,939 |
Leases (Maturities of lease lia
Leases (Maturities of lease liabilities) (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
2021 | $ 7,007 | |
2022 | 5,732 | |
2023 | 4,614 | |
2024 | 4,162 | |
2025 | 3,653 | |
2026 and thereafter | 12,949 | |
Total future minimum lease payments | 38,117 | |
Less: amount of lease payment representing interest | 6,438 | |
Total operating lease liabilities | $ 31,679 | $ 30,552 |
Leases (Consolidated Balance Sh
Leases (Consolidated Balance Sheet) (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating lease liability | $ 5,254 | $ 3,557 |
Operating lease liability, long-term | 26,425 | 26,995 |
Minimum operating lease payments | $ 31,679 | $ 30,552 |
Leases (Consolidated Statements
Leases (Consolidated Statements of Comprehensive Income) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Operating lease cost | $ 5,645 | $ 4,480 |
Variable operating lease cost | 2,033 | 1,480 |
Lease, cost | $ 7,678 | $ 5,960 |
Leases (Consolidated Statemen_2
Leases (Consolidated Statements of Cash flows Related to Operating Leases) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Operating lease cost | $ (5,647) | $ (4,004) |
Leases (Operating Lease Liabili
Leases (Operating Lease Liabilities) (Detail) | Dec. 31, 2020 |
Weighted average remaining lease term (years) | 7 years 2 months 8 days |
Weighted average discount rate | 4.90% |
Summary of Disaggregation of Pr
Summary of Disaggregation of Product Revenues from Contracts with Customers by Major Product Line (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Disaggregation of Revenue [Line Items] | |||||||||||||
Revenue | $ 108,648 | $ 94,060 | $ 87,462 | $ 76,090 | $ 69,474 | $ 69,445 | $ 70,692 | $ 60,634 | $ 366,260 | $ 270,245 | $ 194,032 | ||
Product | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Revenue | 366,136 | [1] | 270,097 | [2] | 193,891 | ||||||||
Royalty and Other Revenue | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
Revenue | $ 124 | $ 148 | $ 141 | ||||||||||
[1] | 2020 revenue for filtration products includes revenue related to EMT from July 13, 2020, NMS from October 20, 2020 and ARTeSYN from December 3, 2020. | ||||||||||||
[2] | 2019 revenue includes process analytics revenue related to C Technologies from June 1, 2019 through December 31, 2019. |
Revenue from Significant Custom
Revenue from Significant Customers (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Concentration Risk [Line Items] | |||||||||||
Revenue | $ 108,648 | $ 94,060 | $ 87,462 | $ 76,090 | $ 69,474 | $ 69,445 | $ 70,692 | $ 60,634 | $ 366,260 | $ 270,245 | $ 194,032 |
MilliporeSigma | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Revenue | $ 39,511 | 36,190 | 29,843 | ||||||||
Cytiva (formerly GE Healthcare) | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Revenue | $ 31,441 | $ 29,616 |
Summary of Receivables and Defe
Summary of Receivables and Deferred Revenue from Contracts with Customers (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Balances from contracts with customers only: | ||
Accounts receivable | $ 71,257 | $ 43,068 |
Deferred revenue (included in accrued liabilities in the consolidated balance sheets) | 15,318 | 5,005 |
Revenue recognized during years presented relating to: | ||
The beginning deferred revenue balance | $ 3,361 | $ 833 |
Credit Losses - Summary Of Allo
Credit Losses - Summary Of Allowance For Credit Losses For Accounts Receivables (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | |
Credit Loss [Abstract] | ||||
Beginning balance | $ (621) | $ (538) | $ (658) | $ (525) |
Current period change for write-offs | 65 | 37 | ||
Current period change for expected credit losses | (206) | (83) | 83 | (133) |
Ending balance | $ (762) | $ (621) | $ (538) | $ (658) |
Credit Losses - Additional Info
Credit Losses - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Credit Loss [Abstract] | ||
Accounts receivable | $ 71,257 | $ 43,068 |
Accounts receivable, reserve for doubtful accounts | $ 762 | $ 525 |
Changes in Carrying Value of Go
Changes in Carrying Value of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Line Items] | ||
Balance | $ 468,413 | $ 326,735 |
Cumulative translation adjustment | 1,572 | (343) |
Balance | 618,305 | 468,413 |
C Technologies | ||
Goodwill [Line Items] | ||
Goodwill arising from Acquisition | 12,585 | $ 142,021 |
Balance | 142,314 | |
Spectrum Inc. | ||
Goodwill [Line Items] | ||
Goodwill arising from Acquisition | 293 | |
NMS | ||
Goodwill [Line Items] | ||
Goodwill arising from Acquisition | 6,784 | |
Balance | 6,784 | |
ARTeSYN | ||
Goodwill [Line Items] | ||
Goodwill arising from Acquisition | 128,658 | |
Balance | $ 128,658 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 340,282 | $ 248,683 |
Gross Carrying Value | 340,982 | 249,383 |
Accumulated Amortization | (53,882) | (36,831) |
Accumulated Amortization | (53,882) | (36,831) |
Net Carrying Value | 286,400 | 211,852 |
Net Carrying Value | $ 287,100 | $ 212,552 |
Weighted Average Useful Life (in years) | 16 years | 16 years |
Trademark | ||
Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 700 | $ 700 |
Net Carrying Value | 700 | 700 |
Technology—developed | ||
Intangible Assets [Line Items] | ||
Gross Carrying Value | 114,217 | 82,169 |
Accumulated Amortization | (14,444) | (9,669) |
Net Carrying Value | $ 99,773 | $ 72,500 |
Weighted Average Useful Life (in years) | 17 years | 19 years |
Patents | ||
Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 240 | $ 240 |
Accumulated Amortization | $ (240) | $ (240) |
Weighted Average Useful Life (in years) | 8 years | 8 years |
Customer relationships | ||
Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 217,790 | $ 160,825 |
Accumulated Amortization | (37,333) | (25,642) |
Net Carrying Value | $ 180,457 | $ 135,183 |
Weighted Average Useful Life (in years) | 16 years | 15 years |
Trademark | ||
Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 5,893 | $ 3,752 |
Accumulated Amortization | (541) | (333) |
Net Carrying Value | $ 5,352 | $ 3,419 |
Weighted Average Useful Life (in years) | 20 years | 20 years |
Other intangibles | ||
Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 2,142 | $ 1,697 |
Accumulated Amortization | (1,324) | (947) |
Net Carrying Value | $ 818 | $ 750 |
Weighted Average Useful Life (in years) | 3 years | 3 years |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Liabilities [Line Items] | |||
Amortization expense | $ 16.1 | $ 13.6 | $ 10.6 |
Amortization Expense for Amorti
Amortization Expense for Amortized Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Liabilities [Line Items] | ||
2021 | $ 20,767 | |
2022 | 20,765 | |
2023 | 20,648 | |
2024 | 20,080 | |
2025 | 19,813 | |
2026 and thereafter | 184,327 | |
Total | $ 286,400 | $ 211,852 |
Schedule of Inventories (Detail
Schedule of Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory [Line Items] | ||
Raw materials | $ 48,746 | $ 29,328 |
Work-in-process | 8,084 | 8,360 |
Finished products | 38,195 | 17,144 |
Total inventories, net | $ 95,025 | $ 54,832 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Prepaid Expenses And Other Current Assets [Line Items] | ||
Equipment maintenance and services | $ 4,601 | $ 1,662 |
Prepaid taxes | 2,649 | 2,719 |
Prepaid insurance | 1,936 | 80 |
Other | 9,490 | 1,456 |
Total prepaid expenses and other current assets | $ 18,676 | $ 5,917 |
Property, Plant and Equipment (
Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Land | $ 1,023 | $ 1,023 |
Buildings | 1,007 | 764 |
Leasehold improvements | 31,331 | 23,905 |
Equipment | 43,072 | 36,257 |
Furniture, fixtures and office equipment | 8,714 | 6,312 |
Computer hardware and software | 15,397 | 8,810 |
Construction in progress | 14,927 | 6,707 |
Other | 455 | 56 |
Total property, plant and equipment | 115,926 | 83,834 |
Less - Accumulated depreciation | (49,056) | (35,379) |
Total property, plant and equipment, net | $ 66,870 | $ 48,455 |
Consolidated Balance Sheet - Ad
Consolidated Balance Sheet - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Depreciation | $ 10.9 | $ 7.3 | $ 5.2 |
Schedule of Accrued Liabilities
Schedule of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Accrued Liabilities [Line Items] | ||
Employee compensation | $ 20,288 | $ 19,850 |
Taxes | 1,423 | 3,874 |
Royalty and license fees | 466 | 123 |
Warranties | 1,576 | 1,500 |
Professional fees | 1,425 | 1,081 |
Deferred revenue | 15,318 | 5,005 |
Other | 12,589 | 1,898 |
Total accrued liabilities | $ 53,085 | $ 33,331 |
Income Before Income Taxes (Det
Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Income Before Income Tax [Line Items] | |||
Domestic | $ 27,545 | $ (5,432) | $ (73) |
Foreign | 31,672 | 31,583 | 21,509 |
Income before income taxes | $ 59,217 | $ 26,151 | $ 21,436 |
Current, Deferred and Equity In
Current, Deferred and Equity Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Line Items] | |||
Current | $ 5,193 | $ 8,290 | $ 4,354 |
Deferred | (5,902) | (5,287) | 465 |
Equity | 1,737 | ||
Total | $ (709) | $ 4,740 | $ 4,819 |
Provision for Income Taxes by J
Provision for Income Taxes by Jurisdiction (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Line Items] | |||
Federal | $ (4,741) | $ (965) | $ (393) |
State | (3,011) | (1,764) | 718 |
Foreign | 7,043 | 7,469 | 4,494 |
Total | $ (709) | $ 4,740 | $ 4,819 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 27, 2020 | Jan. 01, 2018 | |
Income Taxes [Line Items] | |||||
Net operating loss carry forwards | $ 4,000 | ||||
Valuation allowance increase (decrease) | (700) | $ 100 | |||
Impact of unrecognized tax benefits on effective tax rate | 3,100 | ||||
Interest and penalties related to income taxes | 17,000 | 5,000 | $ 1,000 | ||
Interest and penalties accrued | 58,000 | 41,000 | |||
Impact on assets and liabilities due to change in accounting principle | 65,769 | $ 5,843 | $ (677) | ||
Undistributed earnings of foreign subsidiaries | 113,100 | ||||
Foreign earnings subject to one time transition tax | $ 58,000 | ||||
Coronavirus aid relief and economic security fund value | $ 2,200,000,000 | ||||
Accounting Standards Update 2016-06 [Member] | Other Assets [Member] | |||||
Income Taxes [Line Items] | |||||
Impact on assets and liabilities due to change in accounting principle | $ 5,700 | ||||
Accounting Standards Update 2016-06 [Member] | Deferred tax liablities [Member] | |||||
Income Taxes [Line Items] | |||||
Impact on assets and liabilities due to change in accounting principle | 5,000 | ||||
Accounting Standards Update 2016-06 [Member] | accumulated deficit [Member] | |||||
Income Taxes [Line Items] | |||||
Impact on assets and liabilities due to change in accounting principle | $ 700 | ||||
Latest Tax Year | |||||
Income Taxes [Line Items] | |||||
Net operating loss and business tax credit carry forwards expiration date | at various dates through December 2040. | ||||
Domestic Tax Authority | |||||
Income Taxes [Line Items] | |||||
Business tax credits carry forwards | $ 3,500 | ||||
Domestic Tax Authority | Tax Year 2040 | |||||
Income Taxes [Line Items] | |||||
Business tax credits carry forwards | 6,200 | ||||
State | |||||
Income Taxes [Line Items] | |||||
Net operating loss carry forwards | 1,100 | ||||
State | Tax Year 2040 | |||||
Income Taxes [Line Items] | |||||
Business tax credits carry forwards | 3,200 | ||||
Federal and State | |||||
Income Taxes [Line Items] | |||||
Net operating loss carry forwards | $ 2,900 |
Consolidated Deferred Tax Asset
Consolidated Deferred Tax Assets (Liabilities) (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Temporary timing differences: | ||
Stock-based compensation expense | $ 3,320 | $ 2,922 |
Operating leases | 7,257 | 7,295 |
Accrued bonus | 25 | 1,379 |
Other | 5,749 | 4,994 |
Total temporary timing differences | 16,351 | 16,590 |
Net operating loss carryforwards | 1,539 | 221 |
Tax business credits carryforwards | 5,553 | 924 |
Total deferred tax assets | 23,443 | 17,735 |
Less: valuation allowance | (727) | (6) |
Net deferred tax assets | 22,716 | 17,729 |
Deferred tax liabilities: | ||
Goodwill | (1,487) | (1,288) |
Fixed assets | (4,233) | (1,650) |
Acquired intangible assets | (27,152) | (24,605) |
Operating lease right of use assets | (5,744) | (6,144) |
Conversion option on convertible notes | (8,651) | (11,066) |
Total deferred tax liabilities | (47,267) | (44,753) |
Total net deferred tax liabilities | $ (24,551) | $ (27,024) |
Reconciliation of Federal Statu
Reconciliation of Federal Statutory Rate to Effective Income Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Rate Reconciliation [Line Items] | |||
Income before income taxes | $ 59,217 | $ 26,151 | $ 21,436 |
Expected tax at statutory rate | 12,436 | 5,492 | 4,502 |
Adjustments due to: | |||
Difference between U.S. and foreign tax | 618 | 436 | 345 |
State income and franchise tax | 133 | (179) | 91 |
Business tax credits | (4,660) | (2,746) | (1,760) |
Stock-based compensation expense | (9,243) | (1,877) | (1,213) |
U.S. taxation of foreign earnings | 51 | 2,227 | 2,190 |
Executive compensation | 1,401 | 841 | 367 |
Other | 896 | 92 | 97 |
Change in U.S. federal tax rates | (2,192) | ||
Change in U.S. state tax rates | (708) | 748 | |
Change in Netherlands tax rate | 250 | (193) | (388) |
Transition tax | (1,338) | ||
Uncertain tax provisions | (168) | 1,069 | 1,021 |
Change in valuation allowance | (12) | (125) | 125 |
Return to provision adjustments | (89) | (79) | 33 |
Other | 578 | (218) | (1) |
Income tax (benefit) provision | $ (709) | $ 4,740 | $ 4,819 |
Expected tax at statutory rate | 21.00% | 21.00% | 21.00% |
Adjustments due to: | |||
Difference between U.S. and foreign tax | 1.00% | 1.70% | 1.60% |
State income and franchise tax | 0.20% | (0.70%) | 0.40% |
Business tax credits | (7.90%) | (10.50%) | (8.20%) |
Stock-based compensation expense | (15.60%) | (7.20%) | (5.70%) |
U.S. taxation of foreign earnings | 0.10% | 8.50% | 10.20% |
Executive compensation | 2.40% | 3.20% | 1.70% |
Other | 1.50% | 0.40% | 0.50% |
Change in U.S. federal tax rates | (3.70%) | 0.00% | 0.00% |
Change in U.S. state tax rates | (1.20%) | 0.00% | 3.50% |
Change in Netherlands tax rate | 0.40% | (0.70%) | (1.80%) |
Transition tax | 0.00% | 0.00% | (6.20%) |
Uncertain tax provisions | (0.30%) | 4.10% | 4.80% |
Change in valuation allowance | 0.00% | (0.50%) | 0.60% |
Return to provision adjustments | (0.20%) | (0.30%) | 0.20% |
Other | 1.00% | (0.80%) | (0.10%) |
Income tax (benefit) provision | (1.20%) | 18.10% | 22.50% |
Summary of Tax Returns Periods
Summary of Tax Returns Periods Subject to Examination by Federal, State and Foreign Tax Authorities (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
United States | Earliest Tax Year | |
Income Tax Examination [Line Items] | |
Fiscal year subject to examination | 2017 |
United States | Latest Tax Year | |
Income Tax Examination [Line Items] | |
Fiscal year subject to examination | 2020 |
Sweden | Earliest Tax Year | |
Income Tax Examination [Line Items] | |
Fiscal year subject to examination | 2013 |
Sweden | Latest Tax Year | |
Income Tax Examination [Line Items] | |
Fiscal year subject to examination | 2020 |
Reconciliation of Unrecognized
Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||
Balance of gross unrecognized tax benefits, beginning of period | $ 3,422 | $ 2,852 |
Gross amounts of increases in unrecognized tax benefits as a result of tax positions taken in the current period | 154 | 602 |
Gross amounts of decreases in unrecognized tax benefits as a result of tax positions taken in the prior period | (337) | (16) |
Gross amounts of decrease due to release | (39) | (16) |
Balance of gross unrecognized tax benefits, end of period | $ 3,200 | $ 3,422 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Dec. 08, 2020 | Jul. 19, 2019 | May 03, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Stockholders Equity Note Disclosure [Line Items] | ||||||
Common stock, shares issued | 1,725,000 | 1,587,000 | 3,144,531 | 54,760,837 | 52,078,258 | |
Common stock issue price per share | $ 181 | $ 87 | $ 64 | |||
Exercised number of shares | 340,546 | |||||
Net proceeds from public offering | $ 297,800 | $ 131,100 | $ 189,600 | $ 297,775 | $ 320,713 | |
Stock-based compensation expense | $ 17,007 | $ 12,847 | $ 10,192 | |||
Stock options, outstanding | 696,711 | 957,559 | ||||
Aggregate intrinsic value of stock options exercised | $ 36,600 | $ 5,500 | $ 5,300 | |||
Weighted average grant date fair value of share-based awards granted | $ 53.06 | $ 31.27 | $ 18.90 | |||
Total fair value of stock options vested | $ 2,800 | $ 3,100 | $ 2,300 | |||
Total unrecognized compensation cost | $ 46,700 | |||||
Unrecognized compensation cost, weighted average remaining requisite service period | 3 years 6 months 18 days | |||||
Number of unvested options and restricted stock units | 1,853,028 | |||||
2018 Plan | ||||||
Stockholders Equity Note Disclosure [Line Items] | ||||||
Common stock shares reserved for Issuance | 2,778,000 | |||||
Incentive options, vesting period | 2,306,943 | |||||
Employee Stock Option | Minimum | Vest Over Three Year | ||||||
Stockholders Equity Note Disclosure [Line Items] | ||||||
Incentive options, vesting percentage | 20.00% | |||||
Employee Stock Option | Maximum | Vest Over Five Year | ||||||
Stockholders Equity Note Disclosure [Line Items] | ||||||
Incentive options, vesting percentage | 33.00% | |||||
Option To Purchase Common Stock | ||||||
Stockholders Equity Note Disclosure [Line Items] | ||||||
Stock options, outstanding | 696,711 | 957,559 | 998,226 | |||
Restricted Stock Units (RSUs) | ||||||
Stockholders Equity Note Disclosure [Line Items] | ||||||
Restricted stock units, outstanding | 665,540 | 734,984 | 705,413 | |||
Closing price of common stock | $ 191.63 | |||||
Aggregate intrinsic value of restricted stock units vested | $ 28,300 | $ 17,500 | $ 6,200 | |||
Weighted average grant date fair value of restricted stock units granted | $ 109.69 | $ 49.68 | $ 30.30 | |||
Total grant date fair value of restricted stock units vested | $ 10,800 | $ 8,500 | $ 4,600 | |||
Underwriters | Common Stock | ||||||
Stockholders Equity Note Disclosure [Line Items] | ||||||
Exercised number of shares | 225,000 | 207,000 | 410,156 |
Stock-Based Compensation Expens
Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 17,007 | $ 12,847 | $ 10,192 |
Cost of product revenue | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 1,929 | 1,368 | 1,019 |
Research and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 1,534 | 1,373 | 917 |
Selling, general and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 13,544 | $ 10,106 | $ 8,256 |
Estimated Weighted Average Assu
Estimated Weighted Average Assumptions (Detail) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility (range), minimum | 45.14% | 45.14% | 45.14% |
Expected volatility (range), maximum | 50.87% | 50.87% | 50.87% |
Risk-free interest rate, minimum | 0.34% | 1.55% | 2.63% |
Risk-free interest rate, maximum | 1.15% | 2.56% | 2.96% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 5 years 6 months | 5 years 6 months | 5 years 6 months |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 6 years 6 months | 6 years 6 months | 7 years 6 months |
Summary of Option Activity (Det
Summary of Option Activity (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)$ / sharesshares | ||
Options Outstanding | ||
Options outstanding at December 31, 2019 | shares | 957,559 | |
Granted | shares | 79,698 | |
Exercised | shares | (340,546) | |
Options outstanding at December 31, 2020 | shares | 696,711 | |
Options exercisable at December 31, 2020 | shares | 311,988 | |
Vested and expected to vest at December 31, 2020 | shares | 667,220 | [1] |
Weighted-Average Exercise Price Per Share | ||
Options outstanding at December 31, 2019 | $ / shares | $ 30.81 | |
Granted | $ / shares | 115.81 | |
Exercised | $ / shares | 23.95 | |
Options outstanding at December 31, 2020 | $ / shares | 43.88 | |
Options exercisable at December 31, 2020 | $ / shares | $ 31.75 | |
Weighted-Average Remaining Contractual Term (in years) | ||
Options outstanding at December 31, 2020 | 6 years 10 months 24 days | |
Options exercisable at December 31, 2020 | 5 years 10 months 28 days | |
Vested and expected to vest at December 31, 2020 | 6 years 10 months 9 days | [1] |
Aggregate Intrinsic Value | ||
Options outstanding at December 31, 2020 | $ | $ 102,958 | |
Options exercisable at December 31, 2020 | $ | 49,879 | |
Vested and expectd to vest at December 31, 2020 | $ | $ 99,096 | [1] |
[1] | Represents the number of vested options as of December 31, 2020 plus the number of unvested options expected to vest as of December 31, 2020 based on the unvested outstanding options at December 31, 2020 adjusted for estimated forfeiture rates of 8% for awards granted to non-executive level employees and 3% for awards granted to executive level employees. |
Summary of Option Activity (Par
Summary of Option Activity (Parenthetical) (Detail) | Dec. 31, 2020 |
Awards Granted to Non-Executive Level Employees | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Estimated forfeiture rates | 8.00% |
Awards Granted to Executive Level Employees | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Estimated forfeiture rates | 3.00% |
Employee Stock Option | Awards Granted to Non-Executive Level Employees | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Estimated forfeiture rates | 8.00% |
Employee Stock Option | Awards Granted to Executive Level Employees | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Estimated forfeiture rates | 3.00% |
Summary of Restricted Stock Uni
Summary of Restricted Stock Unit Activity (Detail) - Restricted Stock Units (RSUs) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($)shares | |
Options Outstanding | |
Unvested at December 31, 2019 | 734,984 |
Awarded | 207,788 |
Vested | (244,648) |
Forfeited/expired/cancelled | (32,584) |
Unvested at December 31, 2020 | 665,540 |
Vested and expected to vest at December 31, 2020 | 650,047 |
Weighted-Average Remaining Contractual Term (in years) | |
Unvested at December 31, 2020 | 3 years 3 months 25 days |
Vested and expected to vest at December 31, 2020 | 3 years 3 days |
Aggregate Intrinsic Value | |
Unvested at December 31, 2020 | $ | $ 127,904 |
Vested and expected to vest at December 31, 2020 | $ | $ 124,568 |
Summary of Restricted Stock U_2
Summary of Restricted Stock Unit Activity (Parenthetical) (Detail) | Dec. 31, 2020 |
Awards Granted to Non-Executive Level Employees | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Estimated forfeiture rates | 8.00% |
Awards Granted to Executive Level Employees | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Estimated forfeiture rates | 3.00% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($)l | Dec. 31, 2019USD ($) | |
Maximum [Member] | ||
Commitments and Contingencies [Line Items] | ||
Bioreactors used in perfusion cell culture applications | 2,000 | |
Minimum [Member] | ||
Commitments and Contingencies [Line Items] | ||
Bioreactors used in perfusion cell culture applications | 50 | |
NGL Impact A [Member] | Research and Development Arrangement [Member] | ||
Commitments and Contingencies [Line Items] | ||
Payments to Navigo in connection with this program, which are recorded to research and development expenses | $ | $ 0.9 | $ 1 |
Carrying Value of Convertible S
Carrying Value of Convertible Senior Notes (Detail) - 0.375%Convertible Senior Notes due 2024 - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Principal amount | $ 287,500 | $ 287,500 |
Unamortized debt discount | (38,317) | (47,921) |
Unamortized debt issuance costs | (5,446) | (6,812) |
Total convertible senior notes | $ 243,737 | $ 232,767 |
Convertible Senior Notes - Addi
Convertible Senior Notes - Additional Information (Detail) | Jul. 22, 2019USD ($)shares | Jul. 19, 2019USD ($)$ / shares | Sep. 23, 2019USD ($)shares | Dec. 31, 2020USD ($) | Dec. 31, 2020USD ($)Day | Dec. 31, 2019USD ($) | Jul. 16, 2019USD ($) |
Debt Instrument [Line Items] | |||||||
Proceeds from issuance of convertible senior notes, net of costs | $ 278,466,000 | ||||||
Notes threshold percentage of stock price trigger | 130.00% | ||||||
Notes threshold trading days | Day | 20 | ||||||
Debt instrument amount convertible into equity | $ 3,000 | $ 3,000 | |||||
Notes threshold consecutive trading days | Day | 30 | ||||||
Total consideration on conversion | 198,757,000 | ||||||
Loss on extinguishment of debt | $ 5,650,000 | ||||||
0.375% Convertible Senior Notes due 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Notes issued | $ 287,500,000 | ||||||
Notes, interest rate | 0.375% | 0.375% | 0.375% | ||||
Proceeds from issuance of convertible senior notes, net of costs | $ 278,500,000 | ||||||
Interest repayment terms | Interest is payable semi-annually in arrears on January 15 and July 15 of each year, beginning on January 15, 2020. | ||||||
Notes, due date | Jul. 15, 2024 | ||||||
Notes conversion ratio per $1,000 principal amount | 8.6749 | ||||||
Notes initial conversion price | $ / shares | $ 115.28 | ||||||
Notes redemption price | 100.00% | ||||||
Contractual coupon interest | $ 1,100,000 | ||||||
Accretion of the debt discount | 9,600,000 | ||||||
Amortization of the debt issuance costs | $ 1,400,000 | ||||||
Effective interest rate on the Notes | 5.10% | 5.10% | |||||
Notes, carrying value | $ 243,700,000 | $ 243,700,000 | |||||
Fair value of the note | 501,000,000 | 501,000,000 | |||||
Additional Notes issued | $ 37,500,000 | ||||||
Discount rate | 4.50% | ||||||
Proceeds allocated to the conversion feature | $ 52,100,000 | ||||||
Transaction costs attributable to liability component | 7,400,000 | ||||||
Transaction costs attributable to equity component | $ 1,600,000 | $ 1,600,000 | |||||
2.125% Convertible Senior Notes due 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Notes issued | $ 92,000,000 | ||||||
Notes, interest rate | 2.125% | 2.125% | |||||
Contractual coupon interest | $ 1,300,000 | ||||||
Accretion of the debt discount | 2,400,000 | ||||||
Amortization of the debt issuance costs | $ 400,000 | ||||||
Effective interest rate on the Notes | 6.60% | 6.60% | |||||
Repayment Of Senior Debt | 92,300,000 | $ 23,000,000 | |||||
Accrued interest | $ 300,000 | ||||||
Total consideration on conversion | $ 253,300,000 | ||||||
Face amount of remaining convertible debt | 60,800,000 | ||||||
Equity component of converted debt | $ 163,600,000 | 38,300,000 | |||||
Loss on extinguishment of debt | $ 1,100,000 | $ 4,600,000 | |||||
2.125% Convertible Senior Notes due 2021 | Common Stock [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Conversion of Convertible Securities Stock Issued | shares | shares | 1,850,155 | 466,045 | |||||
Conversion of Convertible Securities Stock Issued | value | $ 161,000,000 | $ 37,800,000 |
Change in Change in Accumulated
Change in Change in Accumulated Other Comprehensive Loss (Detail) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | $ 1,059,768 | $ 615,568 |
Balance | 1,529,150 | 1,059,768 |
Foreign Currency Translation Adjustment | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (15,027) | (11,893) |
Other comprehensive loss | 17,112 | (3,134) |
Balance | $ 2,085 | $ (15,027) |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Plans, Defined Benefit | Sweden | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Defined contribution plan, company contribution | $ 1.4 | $ 1 | $ 0.7 |
Minimum | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Defined contribution plan, eligible age of employees | 21 years | ||
Defined Contribution 401 K Plan | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Defined contribution plan, company contribution | $ 0.6 | $ 0.6 | $ 0.6 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Principal Owner | ||
Related Party Transaction [Line Items] | ||
Spectrum Acquisition, tax preparation and other fees | $ 0.7 | |
Principal Owner | Minimum | Spectrum Inc. | ||
Related Party Transaction [Line Items] | ||
Non controlling ownership interest minimum | 5.00% | |
C Technologies | ||
Related Party Transaction [Line Items] | ||
Tax payable | $ 0.5 | |
Income tax paid | $ 0.3 | $ 1.6 |
Consolidated Statements of Oper
Consolidated Statements of Operations Information for Each of Previous Eight Quarters (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information [Line Items] | |||||||||||
Revenue | $ 108,648 | $ 94,060 | $ 87,462 | $ 76,090 | $ 69,474 | $ 69,445 | $ 70,692 | $ 60,634 | $ 366,260 | $ 270,245 | $ 194,032 |
Gross profit | 60,485 | 54,434 | 50,599 | 44,108 | 39,353 | 38,020 | 39,984 | 33,789 | |||
Operating expenses | 91,229 | 73,099 | 67,925 | 64,184 | 63,580 | 61,481 | 59,638 | 49,463 | |||
Net income | $ 19,698 | $ 14,552 | $ 15,861 | $ 9,815 | $ 3,604 | $ 1,659 | $ 8,095 | $ 8,053 | $ 59,926 | $ 21,411 | $ 16,617 |
Earnings per share | |||||||||||
Basic | $ 0.37 | $ 0.28 | $ 0.30 | $ 0.19 | $ 0.07 | $ 0.03 | $ 0.17 | $ 0.18 | $ 1.14 | $ 0.44 | $ 0.38 |
Diluted | $ 0.36 | $ 0.27 | $ 0.30 | $ 0.18 | $ 0.07 | $ 0.03 | $ 0.17 | $ 0.17 | $ 1.11 | $ 0.44 | $ 0.37 |