Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 23, 2021 | |
Cover [Abstract] | ||
Amendment Flag | false | |
Document Type | 10-Q | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000730272 | |
Current Fiscal Year End Date | --12-31 | |
Document Period End Date | Jun. 30, 2021 | |
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 Quarterly Report | true | |
Document Transition Report | false | |
Entity Common Stock, Shares Outstanding | 54,977,179 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 734,327 | $ 717,292 |
Accounts receivable, net of reserves of $1,049 and $762 at June 30, 2021 and December 31, 2020, respectively | 102,659 | 71,389 |
Inventories, net | 135,509 | 95,025 |
Prepaid expenses and other current assets | 11,335 | 18,676 |
Total current assets | 983,830 | 902,382 |
Property, plant and equipment, net | 85,491 | 66,870 |
Intangible assets, net | 276,549 | 287,100 |
Goodwill | 617,593 | 618,305 |
Deferred tax assets | 1,714 | 2,481 |
Operating lease right of use assets | 50,178 | 25,176 |
Other noncurrent assets | 610 | 573 |
Total noncurrent assets | 1,032,135 | 1,000,505 |
Total assets | 2,015,965 | 1,902,887 |
Current liabilities: | ||
Accounts payable | 24,903 | 16,880 |
Operating lease liability | 4,243 | 5,254 |
Accrued liabilities | 53,773 | 53,085 |
Convertible Senior Notes, current portion, net | 249,423 | 243,737 |
Total current liabilities | 332,342 | 318,956 |
Deferred tax liabilities | 26,760 | 27,032 |
Noncurrent operating lease liability | 52,323 | 26,425 |
Other noncurrent liabilities | 1,471 | 1,324 |
Total noncurrent liabilities | 80,554 | 54,781 |
Total liabilities | 412,896 | 373,737 |
Commitments and contingencies (Note 9) | ||
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; 54,969,481 shares at June 30, 2021 and 54,760,837 shares at December 31, 2020 issued and outstanding | 550 | 548 |
Additional paid-in capital | 1,475,436 | 1,460,748 |
Accumulated other comprehensive (loss) income | (4,369) | 2,085 |
Retained earnings | 131,452 | 65,769 |
Total stockholders' equity | 1,603,069 | 1,529,150 |
Total liabilities and stockholders' equity | $ 2,015,965 | $ 1,902,887 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Accounts receivable, reserve for doubtful accounts | $ 1,049 | $ 762 |
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 | 54,969,481 | 54,760,837 |
Common stock, shares outstanding | 54,969,481 | 54,760,837 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue: | ||||
Revenue | $ 162,960 | $ 87,462 | $ 305,797 | $ 163,552 |
Costs and operating expenses: | ||||
Cost of product revenue | 61,990 | 36,863 | 121,737 | 68,845 |
Research and development | 8,389 | 4,336 | 16,001 | 9,038 |
Selling, general and administrative | 44,341 | 26,726 | 83,436 | 54,226 |
Total costs and operating expenses | 114,720 | 67,925 | 221,174 | 132,109 |
Income from operations | 48,240 | 19,537 | 84,623 | 31,443 |
Other income (expenses): | ||||
Investment income | 41 | 253 | 93 | 1,617 |
Interest expense | (3,144) | (3,004) | (6,250) | (5,980) |
Other expenses | (779) | (766) | (1,003) | (384) |
Other expenses, net | (3,882) | (3,517) | (7,160) | (4,747) |
Income before income taxes | 44,358 | 16,020 | 77,463 | 26,696 |
Income tax provision | 8,125 | 159 | 11,780 | 1,020 |
Net income | $ 36,233 | $ 15,861 | $ 65,683 | $ 25,676 |
Earnings per share: | ||||
Basic | $ 0.66 | $ 0.30 | $ 1.20 | $ 0.49 |
Diluted | $ 0.64 | $ 0.30 | $ 1.16 | $ 0.48 |
Weighted average common shares outstanding: | ||||
Basic | 54,931 | 52,381 | 54,868 | 52,260 |
Diluted | 56,786 | 53,306 | 56,824 | 53,213 |
Net income | $ 36,233 | $ 15,861 | $ 65,683 | $ 25,676 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | 3,125 | 6,493 | (6,454) | 914 |
Comprehensive income | 39,358 | 22,354 | 59,229 | 26,590 |
Products | ||||
Revenue: | ||||
Revenue | 162,920 | 87,432 | 305,657 | 163,492 |
Royalty and Other Revenue | ||||
Revenue: | ||||
Revenue | $ 40 | $ 30 | $ 140 | $ 60 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid- In Capital | Accumulated Other Comprehensive Loss | Retained Earnings/ (Accumulated Deficit) |
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 | ||||
Net income | 25,676 | 25,676 | |||
Exercise of stock options and vesting of stock units | 5,402 | $ 4 | 5,398 | ||
Exercise of stock options and vesting of stock units (in shares) | 416,626 | ||||
Stock-based compensation expense | 8,267 | 8,267 | |||
Translation adjustment at Dec. 31, 2019 | 914 | 914 | |||
Balance at Jun. 30, 2020 | 1,100,027 | $ 525 | 1,082,096 | (14,113) | 31,519 |
Balance (in shares) at Jun. 30, 2020 | 52,494,884 | ||||
Balance at Mar. 31, 2020 | 1,069,758 | $ 523 | 1,074,183 | (20,606) | 15,658 |
Balance (in shares) at Mar. 31, 2020 | 52,278,083 | ||||
Net income | 15,861 | 15,861 | |||
Exercise of stock options and vesting of stock units | 3,813 | $ 2 | 3,811 | ||
Exercise of stock options and vesting of stock units (in shares) | 216,801 | ||||
Stock-based compensation expense | 4,102 | 4,102 | |||
Translation adjustment at Mar. 31, 2020 | 6,493 | 6,493 | |||
Balance at Jun. 30, 2020 | 1,100,027 | $ 525 | 1,082,096 | (14,113) | 31,519 |
Balance (in shares) at Jun. 30, 2020 | 52,494,884 | ||||
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 | ||||
Net income | 65,683 | 65,683 | |||
Issuance of common stock for debt conversion | 1 | $ 0 | 1 | ||
Issuance of common stock for debt conversion (in shares) | 3 | ||||
Exercise of stock options and vesting of stock units | 860 | $ 2 | 858 | ||
Exercise of stock options and vesting of stock units (in shares) | 208,641 | ||||
Stock-based compensation expense | 13,684 | 13,684 | |||
True up of costs related to the December 2020 issuance of common stock | 145 | 145 | |||
Translation adjustment at Dec. 31, 2020 | (6,454) | (6,454) | |||
Balance at Jun. 30, 2021 | 1,603,069 | $ 550 | 1,475,436 | (4,369) | 131,452 |
Balance (in shares) at Jun. 30, 2021 | 54,969,481 | ||||
Balance at Mar. 31, 2021 | 1,556,216 | $ 549 | 1,467,942 | (7,494) | 95,219 |
Balance (in shares) at Mar. 31, 2021 | 54,899,245 | ||||
Net income | 36,233 | 36,233 | |||
Exercise of stock options and vesting of stock units | 352 | $ 1 | 351 | ||
Exercise of stock options and vesting of stock units (in shares) | 70,236 | ||||
Stock-based compensation expense | 7,143 | 7,143 | |||
Translation adjustment at Mar. 31, 2021 | 3,125 | 3,125 | |||
Balance at Jun. 30, 2021 | $ 1,603,069 | $ 550 | $ 1,475,436 | $ (4,369) | $ 131,452 |
Balance (in shares) at Jun. 30, 2021 | 54,969,481 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 65,683 | $ 25,676 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Inventory step-up charges | 1,598 | |
Depreciation and amortization | 17,420 | 12,869 |
Amortization of debt discount and issuance costs | 5,690 | 5,415 |
Stock-based compensation expense | 13,684 | 8,267 |
Deferred income taxes, net | 5,266 | (1,912) |
Other | 103 | 143 |
Changes in operating assets and liabilities, excluding impact of acquisitions: | ||
Accounts receivable | (31,940) | (5,829) |
Inventories | (42,773) | (14,964) |
Prepaid expenses and other assets | (563) | (1,633) |
Other assets | 1,748 | (76) |
Accounts payable | 8,317 | 2,884 |
Accrued expenses | 4,467 | (7,012) |
Long-term liabilities | (1,787) | 2,437 |
Total cash provided by operating activities | 46,913 | 26,265 |
Cash flows from investing activities: | ||
Acquisitions, net of cash acquired | 71 | |
Additions to capitalized software costs | (2,191) | (2,226) |
Purchases of property, plant and equipment | (24,078) | (7,291) |
Total cash used in investing activities | (26,198) | (9,517) |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 860 | 5,412 |
Payment of tax withholding obligation on vesting of restricted stock | (10) | |
Repayment of Convertible Senior Notes | (8) | |
Total cash provided by financing activities | 852 | 5,402 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (4,532) | 807 |
Net increase in cash, cash equivalents and restricted cash | 17,035 | 22,957 |
Cash, cash equivalents and restricted cash, beginning of period | 717,292 | 537,407 |
Cash and cash equivalents, end of period | 734,327 | 560,364 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Assets acquired under operating leases | $ 28,605 | $ 17 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements included herein have been prepared by Repligen Corporation (the “Company”, “Repligen”, “our” or “we”) in accordance with generally accepted accounting principles in the United States (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), for Quarterly Reports on Form 10-Q S-X 10-K 10-K”). The preparation of financial statements in conformity with 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 period. The business and economic uncertainty resulting from the novel coronavirus (“COVID-19”) The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Repligen Sweden AB, Repligen GmbH, Spectrum ® Non-Metallic The Company made no material changes in the application of its significant accounting policies that were disclosed in its Form 10-K. Recent Accounting Standards Updates We consider the applicability and impact of all Accounting Standards Updates (“ASUs” or “ASU”) 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 ASUs that we feel may be applicable to the Company are as follows: Recently Issued Accounting Standard Updates – Not Yet Adopted In August 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) 815-40).” 2020-06 2020-06 2020-06 2020-06 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Measurements | 2. Fair Value Measurements The Company uses various valuation approaches in determining the fair value of its assets and liabilities. 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 June 30, 2021 and December 31, 2020, cash and cash equivalents on the Company’s consolidated balance sheets included $483.9 million and $549.0 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. At June 30, 2021 and December 31, 2020, the carrying value of the 2019 Notes was $249.4 million and $243.7 million, respectively, net of unamortized discount, and the fair value of the 2019 Notes was $496.7 million and $501.0 million, respectively. 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 June 30, 2021. The 2019 Notes are discussed in more detail in Note 12, “Convertible Senior Notes” Financial Statements and Supplementary Data” 10-K 10-K), During the six months ended June 30, 2021, there were no remeasurements to fair value of financial assets and liabilities that are not measured at fair value on a recurring basis. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2021 | |
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 (“Third Creek”), Alphinity, LLC, a Nevada limited liability company (“Alphinity”, and together with Third Creek the “ARTeSYN Sellers”), and Michael Gagne, solely in his capacity as the representative of the ARTeSYN 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 ARTeSYN Sellers and approximately $70 million in the Company’s 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 solutions has been created with the goal of enabling “abundance in medicine” by allowing greater efficiency in biologics manufacturing. The ARTeSYN team has created a number of solutions targeting the single-use space from single-use valves with fully disposable valve liners, XO® skeletal supports, a hybrid small parts offering for de-bottlenecking traditional facilities, and fully automated SU process systems that have quickly become leading solutions in the bioprocessing industry. ARTeSYN has established downstream processing leadership with a suite of state of the art single-use systems for chromatography, filtration, continuous manufacturing and media/buffer prep workflows. In addition, the Company has integrated unique flow path assemblies utilizing the Company’s silicone extrusion and molding technology, to deliver highly differentiated, low hold-up volume systems that minimize product loss during processing. The ARTeSYN portfolio expands on the market success of the Company’s hollow fiber systems and complements our chromatography and TFF filtration product lines. Consideration Transferred The ARTeSYN Acquisition was accounted for as a purchase of a business under ASC 805, “Business Combinations” 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 the Company 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 and integration costs associated with the ARTeSYN Acquisition from the date of acquisition to December 31, 2020, and an additional $2.0 million of transaction and integration costs during the first half of 2021. The transaction costs are included in selling, general and administrative (“SG&A”) expenses in the consolidated statements of comprehensive income. The consideration transferred includes approximately $1.5 million related to consideration that was deferred at the acquisition date, with payment to the ARTeSYN 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. 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 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; and (5) other assets and liabilities. 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. During 2021, the Company recorded net working capital adjustments of $0.1 million related to settlement of pre-acquisition e The components and estimated allocation of the purchase price consist of the following (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 128,598 Accounts payable (2,251 ) Accrued liabilities (8,706 ) 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 $128.6 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 Non-Metallic On October 15, 2020, the Company entered into a Stock Purchase Agreement with NMS, a Massachusetts corporation, and each of William Malloneé and Derek Masser, the legal and beneficial owners of NMS, to purchase NMS, which transaction subsequently closed on October 20, 2020 (the “NMS Acquisition”). 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.” 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 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 6,713 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 $ 16,099 Acquired Goodwill The goodwill of $6.7 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. In February 2021, the Company recorded an adjustment to goodwill of $0.1 million related to the finalization of the working capital true-up . 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 Effective July 11, 2021, EMT was absorbed into the Company by way of “short form” merger pursuant to New York and Delaware law, which did not require a vote of the Company’s shareholders. 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 transaction and integration costs associated with the EMT Acquisition in 2020 and $0.3 million for the six months ended June 30, 2021. The transaction costs are included in SG&A expenses in the consolidated statements of comprehensive income. 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 the closing, the Company obtained additional information about these assets and liabilities as it learned more about EMT. 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 have made appropriate adjustments to the purchase price allocation during the measurement period, which ended on July 13, 2021. The components and allocation of the purchase price consist of the following (amounts in thousands): Cash and cash equivalents $ 69 Accounts receivable 1,057 Inventory 449 Prepaid expenses and other current assets 7 Property and equipment 414 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 Deferred tax asset 46 Accounts payable (283 ) Accrued liabilities (190 ) 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 Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Revenue Recognition | 4. 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 Revenues for the three and six months ended June 30, 2021 and 2020 were as follows: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (Amounts in thousands) Product revenue $ 162,920 $ 87,432 $ 305,657 $ 163,492 Royalty and other income 40 30 140 60 Total revenue $ 162,960 $ 87,462 $ 305,797 $ 163,552 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 a small number of customers; therefore, economic factors specific to these 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 14, “Segment Reporting,” No revenue from customers represented 10% or more of the Company’s total revenue for either the three or six months ended June 30, 2021. Revenue from significant customers that represented 10% or more of the Company’s total revenue for the three and six months ended June 30, 2020 was as follows: Three Months June 30, 2020 Six Months Ended June 30, 2020 (Amounts in thousands) Cytiva $ 10,479 $ 16,606 MilliporeSigma $ 10,674 $ 21,566 For more information regarding our product revenue, see Note 5, “Revenue Recognition” Financial Statements and Supplementary Data” 10-K. Contract Balances from Contracts with Customers The following table provides information about receivables and deferred revenue from contracts with customers as of June 30, 2021 (amounts in thousands): 2021 Balances from contracts with customers only: Accounts receivable, net of reserves $ 102,659 Deferred revenue (included in accrued liabilities in the consolidated balance sheets) $ 15,238 Revenue recognized during the six-month The beginning deferred revenue balance $ 12,093 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. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill And Other Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 5. 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, “Intangibles – Goodwill and Other” Balance at December 31, 2020 $ 618,305 Measurement period adjustment - NMS (71 ) Measurement period adjustments - ARTeSYN (60 ) Cumulative translation adjustment (581 ) Balance at June 30, 2021 $ 617,593 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. The Company has not identified any “triggering” events which indicate an impairment of goodwill in the three and six months ended June 30, 2021. 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 SG&A expenses in the Company’s statements of comprehensive income. Intangible assets and their related useful lives are reviewed at least annually to determine if any adverse conditions existed 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 our products or changes in the size of the market for the Company’s products. An impairment results if the carrying value of the asset exceeds the estimated fair value 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 intangible assets are recoverable at June 30, 2021. Indefinite-lived assets are reviewed for impairment at least annually. There has been no impairment of the Company’s intangible assets for the periods presented. Intangible assets, net consisted of the following at June 30, 2021: June 30, 2021 Gross Accumulated Amortization Net Weighted (in years) (Amounts in thousands) Finite-lived intangible assets: Technology - developed $ 114,121 $ (17,679 ) $ 96,442 17 Patents 240 (240 ) — 8 Customer relationships 217,407 (43,863 ) 173,544 16 Trademarks 5,892 (691 ) 5,201 20 Other intangibles 2,140 (1,478 ) 662 3 Total finite-lived intangible assets 339,800 (63,951 ) 275,849 16 Indefinite-lived intangible asset: Trademarks 700 — 700 — Total intangible assets $ 340,500 $ (63,951 ) $ 276,549 Intangible assets consisted of the following at December 31, 2020: December 31, 2020 Gross Accumulated Amortization Net Weighted (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 Amortization expense for finite-lived intangible assets was $5.2 million and $3.9 million for each of the three months ended June 30, 2021 and 2020, respectively, and $10.4 million and $7.8 million for each of the six months ended June 30, 2021 and 2020, respectively. As of June 30, 2021, the Company expects to record the following amortization expense in future periods (amounts in thousands): Estimated Amortization For the Six Months Ended June 30, Expense 2021 (remaining six months) $ 10,375 2022 20,748 2023 20,631 2024 20,063 2025 19,797 2026 and thereafter 184,235 Total $ 275,849 |
Consolidated Balance Sheet Deta
Consolidated Balance Sheet Detail | 6 Months Ended |
Jun. 30, 2021 | |
Consolidated Balance Sheet Detail | 6. Consolidated Balance Sheet Detail Inventories, net Inventories, net consists of the following: June 30, December 31, 2021 2020 (Amounts in thousands) Raw materials $ 87,435 $ 48,746 Work-in-process 7,631 8,084 Finished products 40,443 38,195 Total inventories, net $ 135,509 $ 95,025 Property, Plant and Equipment Property, plant and equipment consist of the following: June 30, December 31, 2021 2020 (Amounts in thousands) Land $ 1,023 $ 1,023 Buildings 764 1,007 Leasehold improvements 49,666 31,331 Equipment 52,482 43,072 Furniture, fixtures and office equipment 7,830 8,714 Computer hardware and software 19,692 15,397 Construction in progress 7,942 14,927 Other 449 455 Total property, plant and equipment 139,848 115,926 Less - Accumulated depreciation (54,357 ) (49,056 ) Total property, plant and equipment, net $ 85,491 $ 66,870 Depreciation expenses totaled $3.8 million and $2.6 million for each of the three months ended June 30, 2021 and 2020, respectively, and $7.0 million and $5.1 million for each of the six months ended June 30, 2021 and 2020, respectively. Accrued Liabilities Accrued liabilities consist of the following: June 30, December 31, 2021 2020 (Amounts in thousands) Employee compensation $ 25,915 $ 20,288 Income taxes payable 4,331 1,423 Royalty and license fees 1,209 466 Warranties 1,321 1,576 Professional fees 1,163 1,425 Deferred revenue 15,238 15,318 Other 4,596 12,589 Total accrued liabilities $ 53,773 $ 53,085 |
Convertible Senior Notes
Convertible Senior Notes | 6 Months Ended |
Jun. 30, 2021 | |
Convertible Senior Notes | 7. Convertible Senior Notes 0.375% Convertible Senior Notes due 2024 On July 19, 2019, the Company issued $287.5 million aggregate principal pursuant to the 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. The 2019 Notes will mature on July 15, 2024, unless earlier repurchased or converted in accordance with their terms. During the second quarter of 2021, 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 third quarter of 2021, the quarter immediately following the quarter when the conditions are met, as stated in the terms of the 2019 Notes. These conditions were also met during the fourth quarter of 2020 and the first quarter of 2021. As a result, the Company received notices from note holders that they would convert $5,000 aggregate principal amount of the 2019 Notes, of which $1,000 principal were settled during the first quarter of 2021 and $4,000 principal were settled during the second quarter of 2021. The conversion resulted in the issuance of a nominal number of shares of the Company’s common stock to the note holders, and the Company recorded a loss of approximately $4,000 on the conversion of these notes, which is included in other expenses, net on our consolidated statements of comprehensive income for the three and six months ended June 30, 2021. The Company continues to classify the carrying value of the 2019 Notes as current liabilities on the Company’s consolidated balance sheet at June 30, 2021. The net carrying value of the liability component of the 2019 Notes is as follows: June 30, December 31, 2021 2020 (Amounts in thousands) 0.375% Convertible Senior Notes due 2024: Principal amount $ 287,495 $ 287,500 Unamortized debt discount (33,334 ) (38,317 ) Unamortized debt issuance costs (4,738 ) (5,446 ) Net carrying amount $ 249,423 $ 243,737 Interest expense recognized on the 2019 Notes for the three months ended June 30, 2021 was $0.3 million, $2.5 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. Interest expense recognized on the 2019 Notes for the six months ended June 30, 2021 was $0.5 million, $5.0 million and $0.7 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. At June 30, 2021 and December 31, 2020, the carrying value of the 2019 Notes was $249.4 million and $243.7 million, respectively, net of unamortized discount, and the fair value of the 2019 Notes was $496.7 million and $501.0 million, respectively. The fair value of the 2019 Notes was determined based on the most recent trade activity of the 2019 Notes at June 30, 2021. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2021 | |
Stockholders' Equity | 8. Stockholders’ Equity Stock Option and Incentive Plans Under the Company’s current 2018 Stock Option and Incentive Plan (the “2018 Plan”), the number of shares of the Company’s common stock that are reserved and available for issuance is 2,778,000, plus the number of shares of common stock available for issuance under the Company’s previous plans. The shares of common stock underlying any awards under the 2018 Plan and previous plans (together, 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 June 30, 2021, 2,159,922 shares were available for future grants under the 2018 Plan. Stock-Based Compensation For each of the three months ended June 30, 2021 and 2020, the Company recorded stock-based compensation expense of $7.1 million and $4.1 million, respectively, for share-based awards granted under the Plans. For the six months ended June 30, 2021 and 2020, the Company recorded stock-based compensation expense of $13.7 million and $8.3 million, respectively. The following table presents stock-based compensation expense in the Company’s consolidated statements of comprehensive income: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (Amounts in thousands) Cost of product revenue $ 449 $ 425 $ 955 $ 858 Research and development 795 394 1,511 766 Selling, general and administrative 5,899 3,283 11,218 6,643 Total stock-based compensation $ 7,143 $ 4,102 $ 13,684 $ 8,267 The 2018 Plan allows for the granting of incentive and nonqualified options to purchase shares of common stock, restricted stock and other equity awards. Employee grants under the Plans generally vest over a three 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. Prior to 2020, the Company issued performance stock units to certain employees which are tied to the achievement of certain Company financial goal metrics and the passage of time. Since 2020, the Company has implemented formal programs that issue performance stock units to certain employees set to vest upon the achievement of individual goals and financial goals of the Company, as well as 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. Information regarding option activity for the six months ended June 30, 2021 under the Plans is summarized below: Shares Weighted average exercise price Weighted- (in Years) Aggregate (in Thousands) Options outstanding at December 31, 2020 696,711 $ 43.88 6.90 $ 102,958 Granted 28,824 $ 203.98 Exercised (36,622 ) $ 23.35 Forfeited/expired/cancelled (6,000 ) $ 48.05 Options outstanding at June 30, 2021 682,913 $ 51.71 6.68 $ 101,356 Options exercisable at June 30, 2021 375,822 $ 37.61 6.04 $ 60,887 Vested and expected to vest at June 30, 2021 (1) 660,525 6.66 $ 98,143 (1) Represents the number of vested options as of June 30, 2021 plus the number of unvested options expected to vest as of June 30, 2021 based on the unvested outstanding options at June 30, 2021 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 six months ended June 30, 2021 and 2020 was $86.96 and $46.56, respectively. The total fair value of stock options that vested during the six months ended June 30, 2021 and 2020 was $2.5 million during each period. 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 RSUs and performance stock units, for the six months ended June 30, 2021 under the Plans is summarized below: Shares Weighted- (in Years) Aggregate (in Thousands) Unvested at December 31, 2020 665,540 3.32 $ 127,904 Awarded 140,291 Vested (171,519 ) Forfeited/expired/cancelled (15,694 ) Unvested at June 30, 2021 618,618 2.98 $ 123,489 Unvested and expected to vest at June 30, 2021 (1) 619,320 2.81 $ 123,629 (1) Represents the number of vested stock units as of June 30, 2021 plus the number of unvested stock units expected to vest as of June 30, 2021 based on the unvested outstanding stock units at June 30, 2021 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 vested during the six months ended June 30, 2021 and 2020 was $56.06 and $42.96, respectively. The total fair value of stock units that vested during the six months ended June 30, 2021 and 2020 was $9.6 million and $7.3 million, respectively. As of June 30, 2021, there was $62.4 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 3.12 years. The Company expects 1,923,291 unvested options and stock units to vest over the next five years. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies | 9. Commitments and Contingencies In June 2018, the Company secured an agreement with Navigo Proteins (“Navigo”) for the exclusive co-development NGL-Impact ® NGL-Impact co-development SARS-CoV-2 COVID-19 o million and $ million for the three and six months ended June 30, 2021. royalty payments were made to Navigo d the three and six months ended June 30, 2020. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 6 Months Ended |
Jun. 30, 2021 | |
Accumulated Other Comprehensive (Loss) Income | 10. Accumulated Other Comprehensive (Loss) Income The following shows the changes in the components of accumulated other comprehensive (loss) income for the six months ended June 30, 2021 which consisted of only foreign currency translation adjustments for the perio d Foreign Currency Translation Adjustment Balance as of December 31, 2020 $ 2,085 Other comprehensive loss (6,454 ) Balance at June 30, 2021 $ (4,369 ) |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Taxes | 11. Income Taxes For the three and six months ended June 30, 2021, we recorded an income tax provision of $8.1 million and $11.8 million, respectively. The Company’s effective tax rate for the three and six months ended June 30, 2021 was 18.3% and 15.2%, respectively, compared to 1.0% and 3.8% for the corresponding periods in the prior year. The increase in effective tax rates was primarily due to higher income before income taxes, lower windfall benefits recognized on stock option exercises and the vesting of stock units partially offset by lower U.S. taxation of foreign earnings. The effective tax rates for the three and six months ended June 30, 2021 and 2020 were lower than the U.S. statutory rate of 21% primarily due to business tax credits and windfall benefits on stock option exercises and the vesting of stock units. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share | 12. Earnings Per Share The Company reports earnings per share in accordance with ASC 260, “Earnings Per Share,” “in-the-money” A reconciliation of basic and diluted weighted average shares outstanding is as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (Amounts in thousands, except per share data) Net income $ 36,233 $ 15,861 $ 65,683 $ 25,676 Weighted average shares used in computing net income per share - basic 54,931 52,381 54,868 52,260 Effect of dilutive shares: Options and stock units 843 925 903 953 Convertible Senior Notes 1,012 — 1,052 Dilutive potential common shares 1,855 925 1,955 953 Weighted average shares used in computing net income per share - diluted 56,786 53,306 56,824 53,213 Earnings per share: Basic $ 0.66 $ 0.30 $ 1.20 $ 0.49 Diluted $ 0.64 $ 0.30 $ 1.16 $ 0.48 At June 30, 2021, there were outstanding options to purchase 682,913 shares of the Company’s common stock at a weighted average exercise price of $51.71 per share and 618,618 shares of common stock issuable upon the vesting of stock units, which include RSUs and performance stock units. For the three and six months ended June 30, 2021, 69,388 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 June 30, 2020, there were outstanding options to purchase 768,904 shares of the Company’s common stock at a weighted average exercise price of $38.87 per share and 696,098 shares of common stock issuable upon the vesting of stock units, which include RSUs and performance stock units. For the three and six months ended June 30, 2020, 11,578 and 12,328 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. In July 2019, the Company issued $287.5 million aggregate principal amount of the 2019 Notes. As provided by the terms of the indenture underlying the 2019 Notes, conversion of the 2019 Notes will be settled in cash, shares of the Company’s common stock or a combination thereof, at the Company’s election. As of June 30, 2021, the 2019 Notes were convertible. The Company currently intends to settle the par value of the 2019 Notes in cash and any excess conversion premium in shares. As provided by the terms of the indenture underlying the 2019 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, |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions | 13. Related Party Transactions Certain facilities leased by Spectrum are owned by Roy Eddleman, the former owner of Spectrum. As of June 30, 2021, 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 acquisition of Spectrum. The Company incurred rent expense totaling $0.2 million for each of the three months ended June 30, 2021 and 2020 related to these leases and incurred rent expense of $0.4 million and $0.3 million for each of the six months ended June 30, 2021 and 2020, respectively. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting | 14. 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 the Company’s total revenue by geographic area (based on the location of the customer): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Revenue by customers’ geographic locations: North America 41 % 47 % 42 % 47 % Europe 40 % 37 % 39 % 39 % APAC/Other 19 % 16 % 19 % 14 % Total revenue 100 % 100 % 100 % 100 % 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 June 30, 2021 and December 31, 2020, 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 No revenue from customers represented 10% or more of the Company’s total revenue for each of the three and six months ended June 30, 2021. Revenue from significant customers that represented 10% or more of the Company’s total revenue for the three and six months ended June 30, 2020 is as follows: Three Months June 30, 2020 Six Months Ended June 30, 2020 Cytiva 12 % 10 % MilliporeSigma 12 % 13 % Significant accounts receivable balances representing 10% or more of the Company’s total trade accounts receivable and royalties and other receivable balances at June 30, 2021 and December 31, 2020 include the accounts receivable balance with Cytiva, which represented 12% and 11%, respectively, of the Company’s total trade accounts receivable and royalties and other receivables. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events | 15. Subsequent Event Acquisition of Polymem S.A. On June 22, 2021, the Company entered into a Stock Purchase Agreement with Polymem S.A. (“Polymem”), a company organized under the laws of France, and Jean-Michel Espenan and Franc Saux, acting together jointly and severally as the representatives of the sellers, which transaction subsequently closed on July 1, 2021 (the “Polymem Acquisition.”). Polymem, which is headquartered in, Toulouse, France, is a manufacturer of hollow fiber membranes, membrane modules and systems for industrial and bioprocessing applications. Polymem products will complement and expand the Company’s portfolio of hollow fiber systems and consumables. The acquisition substantially increases Repligen’s membrane and module manufacturing capacity and establishes a world-class center of excellence in Europe to address the accelerating global demand for these innovative products. The Company will account for the Polymem Acquisition as a purchase of a business under the acquisition method of accounting and has engaged a third-party valuation firm to assist with the valuation of the business acquired. The estimated purchase price allocation for the Polymem Acquisition will be included in the Quarterly Report on Form 10-Q |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Basis of presentation | Basis of Presentation The consolidated financial statements included herein have been prepared by Repligen Corporation (the “Company”, “Repligen”, “our” or “we”) in accordance with generally accepted accounting principles in the United States (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), for Quarterly Reports on Form 10-Q S-X 10-K 10-K”). The preparation of financial statements in conformity with 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 period. The business and economic uncertainty resulting from the novel coronavirus (“COVID-19”) The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Repligen Sweden AB, Repligen GmbH, Spectrum ® Non-Metallic The Company made no material changes in the application of its significant accounting policies that were disclosed in its Form 10-K. |
Recent Accounting Standards Updates | Recent Accounting Standards Updates We consider the applicability and impact of all Accounting Standards Updates (“ASUs” or “ASU”) 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 ASUs that we feel may be applicable to the Company are as follows: Recently Issued Accounting Standard Updates – Not Yet Adopted In August 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) 815-40).” 2020-06 2020-06 2020-06 2020-06 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 consist of the following (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 128,598 Accounts payable (2,251 ) Accrued liabilities (8,706 ) 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 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 6,713 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 $ 16,099 |
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 | 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 the closing, the Company obtained additional information about these assets and liabilities as it learned more about EMT. 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 have made appropriate adjustments to the purchase price allocation during the measurement period, which ended on July 13, 2021. The components and allocation of the purchase price consist of the following (amounts in thousands): Cash and cash equivalents $ 69 Accounts receivable 1,057 Inventory 449 Prepaid expenses and other current assets 7 Property and equipment 414 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 Deferred tax asset 46 Accounts payable (283 ) Accrued liabilities (190 ) 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 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Disaggregation of Revenue | Revenues for the three and six months ended June 30, 2021 and 2020 were as follows: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (Amounts in thousands) Product revenue $ 162,920 $ 87,432 $ 305,657 $ 163,492 Royalty and other income 40 30 140 60 Total revenue $ 162,960 $ 87,462 $ 305,797 $ 163,552 |
Revenue from Significant Customers | Revenue from significant customers that represented 10% or more of the Company’s total revenue for the three and six months ended June 30, 2020 was as follows: Three Months June 30, 2020 Six Months Ended June 30, 2020 (Amounts in thousands) Cytiva $ 10,479 $ 16,606 MilliporeSigma $ 10,674 $ 21,566 |
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 June 30, 2021 (amounts in thousands): 2021 Balances from contracts with customers only: Accounts receivable, net of reserves $ 102,659 Deferred revenue (included in accrued liabilities in the consolidated balance sheets) $ 15,238 Revenue recognized during the six-month The beginning deferred revenue balance $ 12,093 Changes in pricing related to products or services satisfied in previous periods $ — |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Changes in Carrying Value of Goodwill | The following table represents the change in the carrying value of goodwill for the six months ended June 30, 2021 (amounts in thousands): Balance at December 31, 2020 $ 618,305 Measurement period adjustment - NMS (71 ) Measurement period adjustments - ARTeSYN (60 ) Cumulative translation adjustment (581 ) Balance at June 30, 2021 $ 617,593 |
Intangible assets | Intangible assets, net consisted of the following at June 30, 2021: June 30, 2021 Gross Accumulated Amortization Net Weighted (in years) (Amounts in thousands) Finite-lived intangible assets: Technology - developed $ 114,121 $ (17,679 ) $ 96,442 17 Patents 240 (240 ) — 8 Customer relationships 217,407 (43,863 ) 173,544 16 Trademarks 5,892 (691 ) 5,201 20 Other intangibles 2,140 (1,478 ) 662 3 Total finite-lived intangible assets 339,800 (63,951 ) 275,849 16 Indefinite-lived intangible asset: Trademarks 700 — 700 — Total intangible assets $ 340,500 $ (63,951 ) $ 276,549 Intangible assets consisted of the following at December 31, 2020: December 31, 2020 Gross Accumulated Amortization Net Weighted (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 |
Schedule of Amortization Expense for Amortized Intangible Assets | Estimated Amortization For the Six Months Ended June 30, Expense 2021 (remaining six months) $ 10,375 2022 20,748 2023 20,631 2024 20,063 2025 19,797 2026 and thereafter 184,235 Total $ 275,849 |
Consolidated Balance Sheet De_2
Consolidated Balance Sheet Detail (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Inventories | Inventories, net consists of the following: June 30, December 31, 2021 2020 (Amounts in thousands) Raw materials $ 87,435 $ 48,746 Work-in-process 7,631 8,084 Finished products 40,443 38,195 Total inventories, net $ 135,509 $ 95,025 |
Property, Plant and Equipment | Property, plant and equipment consist of the following: June 30, December 31, 2021 2020 (Amounts in thousands) Land $ 1,023 $ 1,023 Buildings 764 1,007 Leasehold improvements 49,666 31,331 Equipment 52,482 43,072 Furniture, fixtures and office equipment 7,830 8,714 Computer hardware and software 19,692 15,397 Construction in progress 7,942 14,927 Other 449 455 Total property, plant and equipment 139,848 115,926 Less - Accumulated depreciation (54,357 ) (49,056 ) Total property, plant and equipment, net $ 85,491 $ 66,870 |
Accrued Liabilities | Accrued liabilities consist of the following: June 30, December 31, 2021 2020 (Amounts in thousands) Employee compensation $ 25,915 $ 20,288 Income taxes payable 4,331 1,423 Royalty and license fees 1,209 466 Warranties 1,321 1,576 Professional fees 1,163 1,425 Deferred revenue 15,238 15,318 Other 4,596 12,589 Total accrued liabilities $ 53,773 $ 53,085 |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Carrying Value of Convertible Senior Notes | The net carrying value of the liability component of the 2019 Notes is as follows: June 30, December 31, 2021 2020 (Amounts in thousands) 0.375% Convertible Senior Notes due 2024: Principal amount $ 287,495 $ 287,500 Unamortized debt discount (33,334 ) (38,317 ) Unamortized debt issuance costs (4,738 ) (5,446 ) Net carrying amount $ 249,423 $ 243,737 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Stock-Based Compensation Expense | The following table presents stock-based compensation expense in the Company’s consolidated statements of comprehensive income: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (Amounts in thousands) Cost of product revenue $ 449 $ 425 $ 955 $ 858 Research and development 795 394 1,511 766 Selling, general and administrative 5,899 3,283 11,218 6,643 Total stock-based compensation $ 7,143 $ 4,102 $ 13,684 $ 8,267 |
Summary of Option Activity | Information regarding option activity for the six months ended June 30, 2021 under the Plans is summarized below: Shares Weighted average exercise price Weighted- (in Years) Aggregate (in Thousands) Options outstanding at December 31, 2020 696,711 $ 43.88 6.90 $ 102,958 Granted 28,824 $ 203.98 Exercised (36,622 ) $ 23.35 Forfeited/expired/cancelled (6,000 ) $ 48.05 Options outstanding at June 30, 2021 682,913 $ 51.71 6.68 $ 101,356 Options exercisable at June 30, 2021 375,822 $ 37.61 6.04 $ 60,887 Vested and expected to vest at June 30, 2021 (1) 660,525 6.66 $ 98,143 (1) Represents the number of vested options as of June 30, 2021 plus the number of unvested options expected to vest as of June 30, 2021 based on the unvested outstanding options at June 30, 2021 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 RSUs and performance stock units, for the six months ended June 30, 2021 under the Plans is summarized below: Shares Weighted- (in Years) Aggregate (in Thousands) Unvested at December 31, 2020 665,540 3.32 $ 127,904 Awarded 140,291 Vested (171,519 ) Forfeited/expired/cancelled (15,694 ) Unvested at June 30, 2021 618,618 2.98 $ 123,489 Unvested and expected to vest at June 30, 2021 (1) 619,320 2.81 $ 123,629 (1) Represents the number of vested stock units as of June 30, 2021 plus the number of unvested stock units expected to vest as of June 30, 2021 based on the unvested outstanding stock units at June 30, 2021 adjusted for estimated forfeiture rates of 8% for awards granted to non-executive |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss) Income (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Summary of Changes in Accumulated Other Comprehensive Income | The following shows the changes in the components of accumulated other comprehensive (loss) income for the six months ended June 30, 2021 which consisted of only foreign currency translation adjustments for the perio d Foreign Currency Translation Adjustment Balance as of December 31, 2020 $ 2,085 Other comprehensive loss (6,454 ) Balance at June 30, 2021 $ (4,369 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Basic and Diluted Weighted Average Shares Outstanding | A reconciliation of basic and diluted weighted average shares outstanding is as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (Amounts in thousands, except per share data) Net income $ 36,233 $ 15,861 $ 65,683 $ 25,676 Weighted average shares used in computing net income per share - basic 54,931 52,381 54,868 52,260 Effect of dilutive shares: Options and stock units 843 925 903 953 Convertible Senior Notes 1,012 — 1,052 Dilutive potential common shares 1,855 925 1,955 953 Weighted average shares used in computing net income per share - diluted 56,786 53,306 56,824 53,213 Earnings per share: Basic $ 0.66 $ 0.30 $ 1.20 $ 0.49 Diluted $ 0.64 $ 0.30 $ 1.16 $ 0.48 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Percentage of Revenue from Significant Customers | Three Months June 30, 2020 Six Months Ended June 30, 2020 Cytiva 12 % 10 % MilliporeSigma 12 % 13 % |
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): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Revenue by customers’ geographic locations: North America 41 % 47 % 42 % 47 % Europe 40 % 37 % 39 % 39 % APAC/Other 19 % 16 % 19 % 14 % Total revenue 100 % 100 % 100 % 100 % |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) - USD ($) | 6 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2020 | Jul. 31, 2019 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Cash and cash equivalents | $ 734,327,000 | $ 717,292,000 | |
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Cash and cash equivalents | $ 483,900,000 | 549,000,000 | |
0.375% Convertible Senior Notes due 2024 | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Principal amount | $ 287,500,000 | ||
Notes, due date | Jul. 15, 2024 | ||
Notes, frequency of periodic payment | semi-annually | ||
Total convertible senior notes | $ 249,400,000 | 243,700,000 | |
Fair value of convertible senior notes | $ 496,700,000 | $ 501,000,000 | |
Senior convertible notes | 0.375% |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | Oct. 27, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jul. 13, 2020 |
Business Acquisition [Line Items] | ||||||
Business acquisition, goodwill acquired | $ 617,593 | $ 618,305 | ||||
Selling, general and administrative | ||||||
Business Acquisition [Line Items] | ||||||
Transaction costs | $ 2,000 | 4,000 | ||||
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 | ||||
Working capital adjustment | 100 | |||||
Business combination, consideration transferred | 200,000 | 203,993 | ||||
Fair value of tangible assets acquired | 8,000 | |||||
Fair value of acquired finite lived intangible assets | 67,400 | |||||
Business acquisition, goodwill acquired | 128,598 | |||||
Intangible Asset Residual Value | 128,600 | |||||
Business combination contingent consideration | $ 1,500 | 1,548 | ||||
Business combination settlement of preexisting invoices | 2,310 | |||||
ARTeSYN Biosolutions | Goodwill [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible Asset Residual Value | 128,600 | |||||
Non Metallic Solutions | ||||||
Business Acquisition [Line Items] | ||||||
Business combination, consideration transferred | 16,100 | |||||
Fair value of tangible assets acquired | 900 | |||||
Fair value of acquired finite lived intangible assets | 8,500 | |||||
Business acquisition, goodwill acquired | 6,713 | |||||
Intangible Asset Residual Value | 6,700 | |||||
Transaction costs | 300 | $ 200 | ||||
Business combinations cash deposited in escrow account | 1,300 | |||||
Non Metallic Solutions | Goodwill [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Working capital adjustment | 100 | |||||
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 | 300 | ||||
Fair value of acquired finite lived intangible assets | 14,400 | |||||
Business acquisition, goodwill acquired | 12,585 | |||||
Intangible Asset Residual Value | 6,700 | |||||
Business acquisition, voting interest acquired | 100.00% | |||||
Business acquisition, Indemnification escrow | 2,200 | |||||
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 | Jun. 30, 2021 |
Business Acquisition [Line Items] | ||
Cash consideration | $ 130,713 | |
Equity consideration | $ 70,000 | 69,422 |
Contingent consideration | 1,500 | 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 | Jun. 30, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | ||
Goodwill | $ 617,593 | $ 618,305 |
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 | 128,598 | |
Accounts payable | (2,251) | |
Accrued liabilities | (8,706) | |
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-competition 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 | |
Business combination, intangible assets | 8,500 | |
Goodwill | 6,713 | |
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 | 16,099 | |
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-competition 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 | 414 | |
Operating lease right of use asset | 1,050 | |
Business combination, intangible assets | 14,400 | |
Goodwill | 12,585 | |
Deferred tax assets | 46 | |
Accounts payable | (283) | |
Accrued liabilities | (190) | |
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-competition agreements | ||
Business Acquisition [Line Items] | ||
Business combination, intangible assets | $ 50 |
Acquisitions (Estimated Useful
Acquisitions (Estimated Useful Life and Fair Value) (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
ARTeSYN Biosolutions | |
Fair Value | $ 67,390 |
Non Metallic Solutions | |
Fair Value | 8,460 |
Engineered Molding Technology LLC | |
Fair Value | $ 14,360 |
Customer Relationships [Member] | ARTeSYN Biosolutions | |
Weighted Average Useful Life (in years) | 17 years |
Fair Value | $ 38,400 |
Customer Relationships [Member] | Non Metallic Solutions | |
Weighted Average Useful Life (in years) | 14 years |
Fair Value | $ 6,370 |
Customer Relationships [Member] | Engineered Molding Technology LLC | |
Weighted Average Useful Life (in years) | 14 years |
Fair Value | $ 11,080 |
Developed Technology Rights [Member] | ARTeSYN Biosolutions | |
Weighted Average Useful Life (in years) | 15 years |
Fair Value | $ 27,060 |
Developed Technology Rights [Member] | Non Metallic Solutions | |
Weighted Average Useful Life (in years) | 12 years |
Fair Value | $ 1,810 |
Developed Technology Rights [Member] | Engineered Molding Technology LLC | |
Weighted Average Useful Life (in years) | 11 years |
Fair Value | $ 2,910 |
Trademark and tradename [Member] | ARTeSYN Biosolutions | |
Weighted Average Useful Life (in years) | 21 years |
Fair Value | $ 1,630 |
Trademark and tradename [Member] | Non Metallic Solutions | |
Weighted Average Useful Life (in years) | 15 years |
Fair Value | $ 190 |
Trademark and tradename [Member] | Engineered Molding Technology LLC | |
Weighted Average Useful Life (in years) | 14 years |
Fair Value | $ 320 |
Noncompete Agreements [Member] | ARTeSYN Biosolutions | |
Weighted Average Useful Life (in years) | 3 years |
Fair Value | $ 300 |
Noncompete Agreements [Member] | Non Metallic Solutions | |
Weighted Average Useful Life (in years) | 3 years |
Fair Value | $ 90 |
Noncompete Agreements [Member] | Engineered Molding Technology LLC | |
Weighted Average Useful Life (in years) | 3 years |
Fair Value | $ 50 |
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 | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 162,960 | $ 87,462 | $ 305,797 | $ 163,552 |
Product | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 162,920 | 87,432 | 305,657 | 163,492 |
Royalty and Other Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 40 | $ 30 | $ 140 | $ 60 |
Revenue from Significant Custom
Revenue from Significant Customers (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Concentration Risk [Line Items] | ||||
Revenue | $ 162,960 | $ 87,462 | $ 305,797 | $ 163,552 |
Cytiva | ||||
Concentration Risk [Line Items] | ||||
Revenue | 10,479 | 16,606 | ||
MilliporeSigma | ||||
Concentration Risk [Line Items] | ||||
Revenue | $ 10,674 | $ 21,566 |
Summary of Receivables and Defe
Summary of Receivables and Deferred Revenue from Contracts with Customers (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Balances from contracts with customers only: | ||
Accounts receivable, net of reserves | $ 102,659 | $ 71,389 |
Deferred revenue (included in accrued liabilities in the consolidated balance sheets) | 15,238 | |
Revenue recognized during the six-month period ended June 30, 2021 relating to: | ||
The beginning deferred revenue balance | 12,093 | |
Changes in pricing related to products or services satisfied in previous periods | $ 0 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue Benchmark [Member] | Minimum [Member] | ||||
Other Revenues [Line Items] | ||||
Concentration risk percentage | 10.00% | 10.00% | 10.00% | 10.00% |
Changes in Carrying Value of Go
Changes in Carrying Value of Goodwill (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Goodwill [Line Items] | |
Balance at December 31, 2020 | $ 618,305 |
Cumulative translation adjustment | (581) |
Balance at June 30, 2021 | 617,593 |
ARTeSYN Biosolutions | |
Goodwill [Line Items] | |
Measurement period adjustments | (60) |
Balance at June 30, 2021 | 128,598 |
Non Metallic Solutions | |
Goodwill [Line Items] | |
Measurement period adjustments | (71) |
Balance at June 30, 2021 | $ 6,713 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 339,800 | $ 340,282 |
Gross Carrying Value | 340,500 | 340,982 |
Accumulated Amortization | (63,951) | (53,882) |
Accumulated Amortization | (63,951) | (53,882) |
Net Carrying Value | 275,849 | 286,400 |
Net Carrying Value | $ 276,549 | $ 287,100 |
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 | 114,121 | 114,217 |
Accumulated Amortization | (17,679) | (14,444) |
Net Carrying Value | $ 96,442 | $ 99,773 |
Weighted Average Useful Life (in years) | 17 years | 17 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 | $ 217,407 | $ 217,790 |
Accumulated Amortization | (43,863) | (37,333) |
Net Carrying Value | $ 173,544 | $ 180,457 |
Weighted Average Useful Life (in years) | 16 years | 16 years |
Trademark | ||
Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 5,892 | $ 5,893 |
Accumulated Amortization | (691) | (541) |
Net Carrying Value | $ 5,201 | $ 5,352 |
Weighted Average Useful Life (in years) | 20 years | 20 years |
Other intangibles | ||
Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 2,140 | $ 2,142 |
Accumulated Amortization | (1,478) | (1,324) |
Net Carrying Value | $ 662 | $ 818 |
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 | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Finite-Lived Intangible Liabilities [Line Items] | ||||
Amortization expense | $ 5.2 | $ 3.9 | $ 10.4 | $ 7.8 |
Amortization Expense for Amorti
Amortization Expense for Amortized Intangible Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Liabilities [Line Items] | ||
2021 (remaining six months) | $ 10,375 | |
2022 | 20,748 | |
2023 | 20,631 | |
2024 | 20,063 | |
2025 | 19,797 | |
2026 and thereafter | 184,235 | |
Total | $ 275,849 | $ 286,400 |
Schedule of Inventories (Detail
Schedule of Inventories (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Inventory [Line Items] | ||
Raw materials | $ 87,435 | $ 48,746 |
Work-in-process | 7,631 | 8,084 |
Finished products | 40,443 | 38,195 |
Total inventories, net | $ 135,509 | $ 95,025 |
Property, Plant and Equipment (
Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Land | $ 1,023 | $ 1,023 |
Buildings | 764 | 1,007 |
Leasehold improvements | 49,666 | 31,331 |
Equipment | 52,482 | 43,072 |
Furniture, fixtures and office equipment | 7,830 | 8,714 |
Computer hardware and software | 19,692 | 15,397 |
Construction in progress | 7,942 | 14,927 |
Other | 449 | 455 |
Total property, plant and equipment | 139,848 | 115,926 |
Less - Accumulated depreciation | (54,357) | (49,056) |
Total property, plant and equipment, net | $ 85,491 | $ 66,870 |
Consolidated Balance Sheet - Ad
Consolidated Balance Sheet - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Depreciation | $ 3.8 | $ 2.6 | $ 7 | $ 5.1 |
Schedule of Accrued Liabilities
Schedule of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule of Accrued Liabilities [Line Items] | ||
Employee compensation | $ 25,915 | $ 20,288 |
Income taxes payable | 4,331 | 1,423 |
Royalty and license fees | 1,209 | 466 |
Warranties | 1,321 | 1,576 |
Professional fees | 1,163 | 1,425 |
Deferred revenue | 15,238 | 15,318 |
Other | 4,596 | 12,589 |
Total accrued liabilities | $ 53,773 | $ 53,085 |
Convertible Senior Notes - Addi
Convertible Senior Notes - Additional Information (Detail) - USD ($) | Jul. 19, 2019 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Jul. 31, 2019 |
Debt Instrument [Line Items] | |||||||
Accretion of the debt discount | $ 5,690,000 | $ 5,415,000 | |||||
Repayment of convertible debt | 8,000 | ||||||
Repayment of convertible debt | $ 8,000 | ||||||
0.375% Convertible Senior Notes due 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Notes issued | $ 287,500,000 | $ 287,500,000 | |||||
Notes, interest rate | 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 | ||||||
Contractual coupon interest | $ 300,000 | $ 500,000 | |||||
Accretion of the debt discount | 2,500,000 | 5,000,000 | |||||
Amortization of the debt issuance costs | $ 400,000 | $ 700,000 | |||||
Effective interest rate on the Notes | 5.10% | 5.10% | |||||
Notes, carrying value | $ 249,400,000 | $ 249,400,000 | $ 243,700,000 | ||||
Fair value of the note | 496,700,000 | 496,700,000 | $ 501,000,000 | ||||
Additional Notes issued | $ 37,500,000 | ||||||
Debt instrument amount convertible into equity | 5,000,000 | 5,000,000 | |||||
Repayment of convertible debt | 4,000,000 | $ 1,000,000 | |||||
Loss on conversion of debt included in other expenses | $ 4,000,000 | ||||||
Excess common stock price percentage | 130.00% | ||||||
Repayment of convertible debt | $ 4,000,000 | $ 1,000,000 |
Convertible Senior Notes - Conv
Convertible Senior Notes - Convertible Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
Principal amount | $ 287,495 | $ 287,500 |
Unamortized debt discount | (33,334) | (38,317) |
Unamortized debt issuance costs | (4,738) | (5,446) |
Net carrying amount | $ 249,423 | $ 243,737 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2018 | |
Stockholders Equity Note Disclosure [Line Items] | ||||||
Stock-based compensation expense | $ 7,143 | $ 4,102 | $ 13,684 | $ 8,267 | ||
Incentive options, term | 10 years | |||||
Stock options, outstanding | 682,913 | 768,904 | 682,913 | 768,904 | 696,711 | |
Closing price of common stock | $ 199.62 | $ 199.62 | ||||
Aggregate intrinsic value of stock options exercised | $ 6,000 | $ 23,800 | ||||
Weighted average grant date fair value of share-based awards granted | $ 86.96 | $ 46.56 | ||||
Total fair value of stock options vested | $ 2,500 | |||||
Total unrecognized compensation cost | $ 62,400 | $ 62,400 | ||||
Unrecognized compensation cost, weighted average remaining requisite service period | 3 years 1 month 13 days | |||||
Number of unvested options and restricted stock units | 1,923,291 | 1,923,291 | ||||
2018 Plan | ||||||
Stockholders Equity Note Disclosure [Line Items] | ||||||
Common stock shares reserved for Issuance | 2,778,000 | |||||
Incentive options, vesting period | 2,159,922 | 2,159,922 | ||||
Employee Stock Option | Minimum | ||||||
Stockholders Equity Note Disclosure [Line Items] | ||||||
Incentive options, vesting period | 3 years | |||||
Employee Stock Option | Minimum | Vest Over Three Year | ||||||
Stockholders Equity Note Disclosure [Line Items] | ||||||
Incentive options, vesting percentage | 20.00% | |||||
Employee Stock Option | Maximum | ||||||
Stockholders Equity Note Disclosure [Line Items] | ||||||
Incentive options, vesting period | 5 years | |||||
Employee Stock Option | Maximum | Vest Over Three Year | ||||||
Stockholders Equity Note Disclosure [Line Items] | ||||||
Incentive options, vesting percentage | 33.00% | |||||
Non-Employee Directors | ||||||
Stockholders Equity Note Disclosure [Line Items] | ||||||
Incentive options, vesting period | 9 years | |||||
Unvested Options | ||||||
Stockholders Equity Note Disclosure [Line Items] | ||||||
Incentive options, vesting period | 5 years | |||||
Restricted Stock Units and Performance Stock Units | ||||||
Stockholders Equity Note Disclosure [Line Items] | ||||||
Restricted stock units, outstanding | 618,618 | 696,098 | 618,618 | 696,098 | 665,540 | |
Closing price of common stock | $ 199.62 | $ 199.62 | ||||
Aggregate intrinsic value of restricted stock units vested | $ 35,800 | $ 16,600 | ||||
Weighted average grant date fair value of restricted stock units granted | $ 56.06 | $ 42.96 | ||||
Total grant date fair value of restricted stock units vested | $ 9,600 | $ 7,300 |
Stock-Based Compensation Expens
Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 7,143 | $ 4,102 | $ 13,684 | $ 8,267 |
Cost of product revenue | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 449 | 425 | 955 | 858 |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 795 | 394 | 1,511 | 766 |
Selling, general and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 5,899 | $ 3,283 | $ 11,218 | $ 6,643 |
Summary of Option Activity (Det
Summary of Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | ||
Options Outstanding | |||
Options outstanding at December 31, 2020 | shares | 696,711 | ||
Granted | shares | 28,824 | ||
Exercised | shares | (36,622) | ||
Forfeited/expired/cancelled | (6,000) | ||
Options outstanding at June 30, 2021 | shares | 682,913 | 696,711 | |
Options exercisable at June 30, 2021 | shares | 375,822 | ||
Vested and expected to vest at June 30, 2021(1) | shares | [1] | 660,525 | |
Weighted-Average Exercise Price Per Share | |||
Options outstanding at December 31, 2020 | $ 43.88 | ||
Granted | 203.98 | ||
Exercised | 23.35 | ||
Forfeited/expired/cancelled | 48.05 | ||
Options outstanding at June 30, 2021 | 51.71 | $ 43.88 | |
Options exercisable at June 30, 2021 | $ 37.61 | ||
Weighted-Average Remaining Contractual Term (in years) | |||
Options outstanding | 6 years 8 months 4 days | 6 years 10 months 24 days | |
Options exercisable at June 30, 2021 | 6 years 14 days | ||
Vested and expected to vest at June 30, 2021 | [1] | 6 years 7 months 28 days | |
Aggregate Intrinsic Value | |||
Options outstanding | $ 101,356 | $ 102,958 | |
Options exercisable at June 30, 2021 | 60,887 | ||
Vested and expected to vest at June 30, 2021 | [1] | $ 98,143 | |
[1] | Represents the number of vested options as of June 30, 2021 plus the number of unvested options expected to vest as of June 30, 2021 based on the unvested outstanding options at June 30, 2021 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) - Employee Stock Option | Jun. 30, 2021 |
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% |
Summary of Restricted Stock Uni
Summary of Restricted Stock Unit Activity (Detail) - Restricted Stock Units and Performance Stock Units - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | ||
Options Outstanding | |||
Unvested at December 31, 2020 | 665,540 | ||
Awarded | 140,291 | ||
Vested | (171,519) | ||
Forfeited/expired/cancelled | (15,694) | ||
Unvested at June 30, 2021 | 618,618 | 665,540 | |
Unvested and expected to vest at June 30, 2021 | [1] | 619,320 | |
Weighted-Average Remaining Contractual Term (in years) | |||
Unvested at June 30, 2021 | 2 years 11 months 23 days | 3 years 3 months 25 days | |
Unvested and expected to vest at June 30, 2021 | [1] | 2 years 9 months 21 days | |
Aggregate Intrinsic Value | |||
Unvested at June 30, 2021 | $ 123,489 | $ 127,904 | |
Unvested and expected to vest at June 30, 2021 | [1] | $ 123,629 | |
[1] | Represents the number of vested stock units as of June 30, 2021 plus the number of unvested stock units expected to vest as of June 30, 2021 based on the unvested outstanding stock units at June 30, 2021 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 Restricted Stock U_2
Summary of Restricted Stock Unit Activity (Parenthetical) (Detail) - Restricted Stock Units and Performance Stock Units | Jun. 30, 2021 |
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) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
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 | $ 0.3 | $ 0 | $ 0.6 | $ 0 |
Change in Accumulated Other Com
Change in Accumulated Other Comprehensive Loss (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance | $ 1,529,150 |
Balance | 1,603,069 |
Foreign Currency Translation Adjustment | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance | 2,085 |
Other comprehensive loss | (6,454) |
Balance | $ (4,369) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Taxes [Line Items] | ||||
Corporate tax rate | 21.00% | 21.00% | 21.00% | 21.00% |
Income tax (benefit) provision | 18.30% | 1.00% | 15.20% | 3.80% |
Income tax provision | $ 8,125 | $ 159 | $ 11,780 | $ 1,020 |
Earnings Per Share - (Additiona
Earnings Per Share - (Additional Information) (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Jul. 31, 2019 | Jul. 19, 2019 | |
Stock options, outstanding | 682,913 | 768,904 | 682,913 | 768,904 | 696,711 | ||
Stock options, weighted average exercise price | $ 51.71 | $ 38.87 | $ 51.71 | $ 38.87 | $ 43.88 | ||
Common stock excluded from calculation of diluted earnings per share | 69,388 | 11,578 | 69,388 | 12,328 | |||
Dilutive effect on shares of conversion premium | 1,011,993 | 0 | 1,052,337 | 0 | |||
0.375% Convertible Senior Notes due 2024 | |||||||
Aggregate principal amount | $ 287,500,000 | $ 287,500,000 | |||||
Restricted Stock Units and Performance Stock Units | |||||||
Restricted stock units, outstanding | 618,618 | 696,098 | 618,618 | 696,098 | 665,540 |
Earnings Per Share - (Reconcili
Earnings Per Share - (Reconciliation of Basic and Diluted Shares Amounts) (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | ||||
Net income | $ 36,233 | $ 15,861 | $ 65,683 | $ 25,676 |
Weighted average shares used in computing net income per share - basic | 54,931 | 52,381 | 54,868 | 52,260 |
Effect of dilutive shares: | ||||
Options and stock units | 843 | 925 | 903 | 953 |
Convertible Senior Notes | 1,012 | 1,052 | ||
Dilutive potential common shares | 1,855 | 925 | 1,955 | 953 |
Weighted average shares used in computing net income per share - diluted | 56,786 | 53,306 | 56,824 | 53,213 |
Earnings per share: | ||||
Basic | $ 0.66 | $ 0.30 | $ 1.20 | $ 0.49 |
Diluted | $ 0.64 | $ 0.30 | $ 1.16 | $ 0.48 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Spectrum Inc. | ||||
Related Party Transaction [Line Items] | ||||
Rent expense | $ 0.2 | $ 0.2 | $ 0.4 | $ 0.3 |
Principal Owner | Minimum | Spectrum Inc. | ||||
Related Party Transaction [Line Items] | ||||
Non controlling ownership interest minimum | 5.00% | 5.00% |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) - Segment | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Number of operating segments | 1 | ||||
Revenue Benchmark [Member] | Minimum [Member] | |||||
Accounts receivable, percentage by customer | 10.00% | 10.00% | 10.00% | 10.00% | |
Total Trade Accounts Receivable Royalties And Other Receivables [Member] | Cytiva [Member] | |||||
Accounts receivable, percentage by customer | 12.00% | 11.00% | |||
Customer Concentration Risk | |||||
Accounts receivable, percentage by customer | 0.00% | ||||
Customer Concentration Risk | Accounts Receivable | Cytiva [Member] | |||||
Accounts receivable, percentage by customer | 10.00% |
Segment Reporting - (Percentage
Segment Reporting - (Percentage of Revenue by Geographic Area) (Details) - Geographic Concentration Risk - Total Revenue | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Concentration Risk [Line Items] | ||||
Revenues, percentage by country | 100.00% | 100.00% | 100.00% | 100.00% |
North America | ||||
Concentration Risk [Line Items] | ||||
Revenues, percentage by country | 41.00% | 47.00% | 42.00% | 47.00% |
Europe | ||||
Concentration Risk [Line Items] | ||||
Revenues, percentage by country | 40.00% | 37.00% | 39.00% | 39.00% |
APAC/Other | ||||
Concentration Risk [Line Items] | ||||
Revenues, percentage by country | 19.00% | 16.00% | 19.00% | 14.00% |
Segment Reporting - Percentage
Segment Reporting - Percentage of Revenue from Significant Customers (Detail) - Customer Concentration Risk | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue, Major Customer [Line Items] | |||
Revenue from significant customers | 0.00% | ||
Sales Revenue | GE Healthcare | |||
Revenue, Major Customer [Line Items] | |||
Revenue from significant customers | 12.00% | 10.00% | |
Sales Revenue | MilliporeSigma | |||
Revenue, Major Customer [Line Items] | |||
Revenue from significant customers | 12.00% | 13.00% |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) | Jul. 01, 2021 |
Subsequent Event [Member] | Stock Purchase Agreement [Member] | Polymem S A [Member] | |
Subsequent Event [Line Items] | |
Business combination date of acquistion | Jul. 1, 2021 |