Document_and_Entity_Informatio
Document and Entity Information Document (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 02, 2015 | Jun. 30, 2014 | |
Document Information [Abstract] | |||
Entity Registrant Name | SPECTRANETICS CORP | ||
Entity Central Index Key | 789132 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | -19 | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 42,168,855 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $941,994,676 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $95,505 | $128,395 |
Trade accounts receivable, less allowance for doubtful accounts and sales returns of $1,615 and $782, respectively | 41,090 | 26,766 |
Inventories, net | 25,446 | 9,476 |
Deferred income taxes | 2,200 | 445 |
Prepaid expenses and other current assets | 8,093 | 2,748 |
Total current assets | 172,334 | 167,830 |
Property and equipment, net | 33,819 | 28,281 |
Debt issuance costs, net | 6,912 | 0 |
Goodwill | 149,898 | 14,846 |
Other intangible assets, net | 102,616 | 5,609 |
Other assets | 1,371 | 591 |
Total assets | 466,950 | 217,157 |
Current liabilities: | ||
Accounts payable | 4,397 | 2,587 |
Accrued liabilities | 35,052 | 18,819 |
Deferred revenue | 1,894 | 1,819 |
Total current liabilities | 41,343 | 23,225 |
Convertible senior notes | 230,000 | 0 |
Accrued liabilities, net of current portion | 1,222 | 1,215 |
Contingent consideration | 28,551 | 1,352 |
Deferred income taxes | 3,677 | 1,365 |
Total liabilities | 304,793 | 27,157 |
Commitments and contingencies (Note 15) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value. Authorized 5,000,000 shares; none issued | 0 | 0 |
Common stock, $0.001 par value. Authorized 120,000,000 shares and 60,000,000 shares, respectively; issued and outstanding 42,060,865 and 41,230,286 shares, respectively | 42 | 41 |
Additional paid-in capital | 298,526 | 284,494 |
Accumulated other comprehensive loss | -1,280 | -305 |
Accumulated deficit | -135,131 | -94,230 |
Total stockholders’ equity | 162,157 | 190,000 |
Total liabilities and stockholders’ equity | $466,950 | $217,157 |
Consolidated_Balance_Sheets_Co
Consolidated Balance Sheets Consolidated Balance Sheets - (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts and sales returns | $1,615 | $782 |
Preferred stock, par value per share | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value per share | $0.00 | $0.00 |
Common stock, shares authorized | 120,000,000 | 60,000,000 |
Common stock, shares, issued | 42,060,865 | 41,230,286 |
Common stock, shares, outstanding | 42,060,865 | 41,230,286 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||
Revenue | $204,914 | $158,811 | $140,285 |
Cost of products sold | 51,385 | 41,356 | 37,927 |
Amortization of acquired inventory step-up | 2,074 | 0 | 0 |
Gross profit | 151,455 | 117,455 | 102,358 |
Operating expenses: | |||
Selling, general and administrative | 128,129 | 91,750 | 82,254 |
Research, development and other technology | 28,675 | 22,080 | 16,846 |
Medical device excise tax | 2,834 | 2,138 | 0 |
Acquisition transaction and integration costs | 17,288 | 0 | 311 |
Intangible asset amortization | 6,335 | 901 | 0 |
Contingent consideration expense | 2,070 | 867 | 0 |
Intangible asset impairment | 4,138 | 4,490 | 0 |
Change in fair value of contingent consideration liability | -1,064 | -5,165 | 0 |
Total operating expenses | 188,405 | 117,061 | 99,411 |
Operating (loss) income | -36,950 | 394 | 2,947 |
Other (expense) income: | |||
Interest (expense) income, net | -4,062 | 3 | 8 |
Foreign currency transaction (loss) gain | -211 | 5 | -5 |
Other income, net | 0 | 8 | 10 |
Total other (expense) income | -4,273 | 16 | 13 |
(Loss) income before income taxes | -41,223 | 410 | 2,960 |
Income tax (benefit) expense | -322 | 780 | 734 |
Net (loss) income | -40,901 | -370 | 2,226 |
Net (loss) income per share: | |||
Net (loss) income per share, basic (usd per share) | ($0.98) | ($0.01) | $0.06 |
Net (loss) income per share, diluted (usd per share) | ($0.98) | ($0.01) | $0.06 |
Other comprehensive income (loss), net of tax | |||
Foreign currency translation adjustments | -975 | 313 | 97 |
Comprehensive (loss) income, net of tax | ($41,876) | ($57) | $2,323 |
Weighted average common shares outstanding: | |||
Basic (in shares) | 41,679,369 | 38,940,544 | 34,376,847 |
Diluted (in shares) | 41,679,369 | 38,940,544 | 35,766,970 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) |
In Thousands, except Share data, unless otherwise specified | |||||
Balance at the beginning of the period at Dec. 31, 2011 | $79,510 | $34 | $176,277 | ($96,086) | ($715) |
Balance at the beginning of the period (shares) at Dec. 31, 2011 | 33,957,408 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Comprehensive income (loss), net of tax | 2,323 | 2,226 | 97 | ||
Exercise of stock options (shares) | 693,707 | ||||
Exercise of stock options | 2,923 | 1 | 2,922 | ||
Shares purchased under employee stock purchase plan (shares) | 146,542 | ||||
Shares purchased under employee stock purchase plan | 849 | 849 | |||
Issuance of restricted stock and vesting of restricted stock units (shares) | 90,106 | ||||
Paid in capital from stock-based compensation expense | 3,092 | 3,092 | |||
Balance at the end of the period at Dec. 31, 2012 | 88,697 | 35 | 183,140 | -93,860 | -618 |
Balance at the end of the period (shares) at Dec. 31, 2012 | 34,887,763 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Comprehensive income (loss), net of tax | -57 | -370 | 313 | ||
Exercise of stock options (shares) | 723,067 | ||||
Exercise of stock options | 4,053 | 0 | 4,053 | ||
Shares purchased under employee stock purchase plan (shares) | 104,781 | ||||
Shares purchased under employee stock purchase plan | 1,172 | 1,172 | |||
Issuance of restricted stock and vesting of restricted stock units (shares) | 52,175 | ||||
Issuance of common stock in secondary public offering, net of offering costs (shares) | 5,462,500 | ||||
Issuance of common stock in secondary public offering, net of offering costs | 92,034 | 6 | 92,028 | ||
Paid in capital from stock-based compensation expense | 4,101 | 4,101 | |||
Balance at the end of the period at Dec. 31, 2013 | 190,000 | 41 | 284,494 | -94,230 | -305 |
Balance at the end of the period (shares) at Dec. 31, 2013 | 41,230,286 | 41,230,286 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Comprehensive income (loss), net of tax | -41,876 | -40,901 | -975 | ||
Exercise of stock options (shares) | 672,739 | ||||
Exercise of stock options | 4,811 | 1 | 4,810 | ||
Shares purchased under employee stock purchase plan (shares) | 94,432 | ||||
Shares purchased under employee stock purchase plan | 906 | 906 | |||
Issuance of restricted stock and vesting of restricted stock units (shares) | 63,408 | ||||
Paid in capital from stock-based compensation expense | 8,316 | 8,316 | |||
Balance at the end of the period at Dec. 31, 2014 | $162,157 | $42 | $298,526 | ($135,131) | ($1,280) |
Balance at the end of the period (shares) at Dec. 31, 2014 | 42,060,865 | 42,060,865 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net (loss) income | ($40,901) | ($370) | $2,226 |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 16,813 | 10,610 | 9,883 |
Stock-based compensation expense | 8,316 | 4,101 | 3,092 |
Intangible asset impairment | 4,138 | 4,490 | 0 |
Change in fair value of contingent consideration liability and contingent consideration expense, net | 1,006 | -4,298 | 0 |
Amortization of debt issuance costs | 562 | 0 | 0 |
Provision for excess and obsolete inventories | 426 | 213 | 156 |
Deferred income taxes | -909 | 386 | 378 |
Indemnification costs paid | 0 | 0 | -3,225 |
License agreement settlement | 0 | 0 | -3,000 |
Changes in operating assets and liabilities: | |||
Trade accounts receivable, net | -6,369 | -6,463 | -1,791 |
Inventories | -2,960 | -359 | -884 |
Equipment held for rental or loan, net | -9,232 | -6,812 | -6,099 |
Prepaid expenses and other current assets | -5,028 | -265 | -77 |
Other assets | -91 | 31 | 99 |
Accounts payable and accrued liabilities | 13,650 | 3,343 | 4,399 |
Deferred revenue | 130 | -394 | 4 |
Net cash (used in) provided by operating activities | -20,449 | 4,213 | 5,161 |
Cash flows from investing activities: | |||
Capital expenditures | -6,722 | -4,620 | -3,079 |
Acquisition-related payments | -233,978 | -6,500 | -7,727 |
Net cash used in investing activities | -240,700 | -11,120 | -10,806 |
Cash flows from financing activities: | |||
Proceeds from issuance of convertible senior notes | 230,000 | 0 | 0 |
Debt issuance costs, convertible senior notes | -7,474 | 0 | 0 |
Net proceeds from stock offering | 0 | 92,034 | 0 |
Proceeds from the exercise of stock options and employee stock purchase plan | 5,717 | 5,225 | 3,772 |
Net cash provided by financing activities | 228,243 | 97,259 | 3,772 |
Effect of exchange rate changes on cash | 16 | 268 | 10 |
Net (decrease) increase in cash and cash equivalents | -32,890 | 90,620 | -1,863 |
Cash and cash equivalents at beginning of year | 128,395 | 37,775 | 39,638 |
Cash and cash equivalents at end of year | 95,505 | 128,395 | 37,775 |
Supplemental disclosures of cash flow information: | |||
Cash paid during the year for interest | 3,031 | 41 | 46 |
Cash paid during the year for income taxes | $787 | $357 | $135 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies (Notes) | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Organization, Nature of Business, and Basis of Presentation | ||
The accompanying consolidated financial statements include the accounts of The Spectranetics Corporation, a Delaware corporation, and its wholly-owned Dutch subsidiary, Spectranetics International, B.V., including the accounts of the wholly-owned subsidiaries of Spectranetics International, B.V.: Spectranetics II B.V., Spectranetics Deutschland GmbH, Spectranetics Austria GmbH, Spectranetics France SARL, Spectranetics Switzerland GmbH, and Spectranetics Denmark ApS. The consolidated balance sheet as of December 31, 2014 also includes the accounts of The Spectranetics Corporation’s wholly-owned subsidiary, AngioScore Inc., which was acquired on June 30, 2014. The consolidated statements of operations and comprehensive income (loss) and cash flows for the year ended December 31, 2014 also include the results of operations of AngioScore beginning July 1, 2014. The aforementioned entities are collectively referred to as the “Company.” All intercompany balances and transactions have been eliminated in consolidation. | ||
The Company develops, manufactures, markets, and distributes single-use medical devices used in minimally invasive procedures within the cardiovascular system. The Company’s Vascular Intervention products include a range of laser catheters to ablate blockages in arteries above and below the knee (peripheral atherectomy); support catheters to facilitate crossing of peripheral and coronary arterial blockages, as well as retrograde access and guidewire retrieval devices used in the treatment of peripheral arterial blockages, including chronic total occlusions (crossing solutions); aspiration and cardiac laser catheters to treat blockages in the heart (coronary atherectomy and thrombectomy); and effective June 30, 2014, AngioSculpt® scoring balloon catheters used to treat coronary and peripheral artery disease. The Company’s Lead Management products include excimer laser sheaths, mechanical dilator sheaths, and cardiac lead management accessories for the removal of pacemaker and defibrillator cardiac leads. The Company also sells, rents, and services its CVX-300® laser systems. | ||
Use of Estimates | ||
Preparing the consolidated financial statements in conformity with accounting principles generally accepted in the United States (U.S. GAAP) requires management of the Company to make several estimates and assumptions relating to the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Significant items subject to such estimates and assumptions include the carrying amount of property and equipment, goodwill and intangible assets; valuation allowances for receivables, inventories and deferred income tax assets; contingent consideration liabilities for acquisitions; stock-based compensation expense; estimated clinical trial expenses; accrued costs for incurred but not reported claims under partially self-insured employee health benefit programs; and loss contingencies, including those related to litigation. Actual results could differ from those estimates. | ||
Cash and Cash Equivalents | ||
The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. Cash equivalents of approximately $86.4 million and $101.2 million at December 31, 2014 and 2013, respectively, consisted primarily of money market accounts. At times, the Company maintains deposits in financial institutions in excess of federally insured limits. | ||
Financial Instruments | ||
Financial instruments included in our financial statements are comprised of cash and cash equivalents, trade accounts receivable, accounts payable, certain accrued liabilities, convertible senior notes (Notes) and contingent consideration. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their fair values due to the short-term nature of those instruments. The fair value of our Notes is influenced by interest rates, our stock price, and stock price volatility, which is determined by market trading. | ||
We recognize contingent purchase price consideration at fair value at acquisition date. The acquisition date fair value is measured based on the consideration expected to be transferred (probability-weighted), discounted to present value. The discount rate used is determined at the time of measurement in accordance with accepted valuation methods. The fair value of the contingent milestone consideration is remeasured at the estimated fair value at each reporting period. Therefore, any changes in the fair value will impact our earnings in such reporting period, thereby resulting in potential variability in our earnings until such contingencies are resolved. | ||
Fair-Value Measurements | ||
Fair value is defined as an exit price that would be received from the sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Authoritative guidance establishes a three-level hierarchy for disclosure that is based on the extent and level of judgment used to estimate the fair value of assets and liabilities. | ||
• | Level 1 Inputs - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. | |
• | Level 2 Inputs - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. | |
• | Level 3 Inputs - Unobservable inputs for the asset or liability. | |
As of December 31, 2014, the estimated fair value of the Notes was $289.9 million and was determined based on quoted market prices in a secondary market, which is considered a Level 2 Input measurement. See further discussion of the Notes in Note 3, “Convertible Notes.” | ||
Contingent consideration arrangements obligate us to pay former shareholders of an acquired entity if specified future events occur or conditions are met such as the achievement of certain technological milestones or the achievement of targeted revenue milestones. We measure such liabilities using Level 3 unobservable inputs, applying the income approach, such as the discounted cash flow technique, or the probability-weighted scenario method. We use various key assumptions, such as the probability of achievement of the agreed milestones and the discount rate, in our determination of the fair value of contingent consideration. We monitor the fair value of the contingent consideration and the subsequent revisions are reflected in our consolidated statements of operations. For a further discussion on the key assumptions used in determining the fair value and the change in the estimated fair value of the contingent consideration during the years ended December 31, 2014 and 2013, refer to Note 2, “Business Combinations.” | ||
Trade Accounts Receivable | ||
Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company’s best estimate of probable credit losses in the Company’s existing accounts receivable. The Company determines the allowance for doubtful accounts based upon an aging of accounts receivable, historical experience and management judgment. Larger or past due accounts receivable balances are reviewed individually for collectibility. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is remote. | ||
Inventory | ||
Inventory is recorded at the lower of cost or market. Cost is determined using the first-in, first-out method. The Company calculates inventory reserves for estimated obsolescence or excess inventory based on historical usage and sales, and assumptions about future demand for and utilization of its products, and these reserves create a new cost basis for the subsequent accounting of the inventory. These estimates for excess and obsolete inventory are reviewed and updated on a quarterly basis. Increases in the inventory reserves result in a corresponding expense, which is recorded to cost of goods sold. | ||
Property and Equipment | ||
Property and equipment are recorded at cost. Repairs and maintenance costs are expensed as incurred. | ||
Depreciation is calculated using the straight-line method over the estimated useful lives of the assets of three to five years for manufacturing equipment, equipment held for rental or loan, computers, and furniture and fixtures. The building the Company owns, which had been a manufacturing facility and now houses certain general operations, is depreciated using the straight-line method over its estimated useful life of 20 years. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or estimated useful life of the asset. | ||
Goodwill and Other Intangible Assets | ||
Goodwill represents the excess of costs over the fair value of the identifiable net assets of businesses acquired. Goodwill and intangible assets acquired in a business combination and determined to have indefinite useful lives are not amortized, but instead are tested for impairment at least annually and whenever events or circumstances indicate the carrying amount of the asset may not be recoverable. In evaluating goodwill and indefinite-lived intangible assets, the Company performs an assessment of qualitative factors to determine if goodwill might be impaired and whether it is necessary to perform the two-step goodwill impairment test. The Company conducts its annual impairment test as of December 31 of each year. See further discussion in Note 6, “Goodwill and Other Intangible Assets.” | ||
Long-Lived Assets | ||
The Company reviews long-lived assets and certain identifiable intangibles for impairment whenever events or circumstances indicate the carrying amount of an asset may not be recoverable. The carrying value of a long-lived asset is considered impaired when the expected undiscounted cash flows from such asset are separately identifiable and are less than the carrying value. Fair value is determined by reference to quoted market prices, if available, or the utilization of certain valuation techniques such as cash flows discounted at a rate commensurate with the risk involved. Assets to be disposed of are reported at the lower of the carrying amount or fair value, less selling costs. In 2014, the Company recorded an intangible asset impairment charge for intangible assets acquired in 2013, as further discussed in Note 6, “Goodwill and Other Intangible Assets.” | ||
Intangible assets with finite lives are amortized over their respective estimated useful lives to their estimated residual values, and reviewed for impairment whenever events or circumstances indicate their carrying amount may not be recoverable. Intangible assets with finite lives, which consist primarily of technology intangible assets, customer relationships, trademarks, and trade names, are amortized using the straight-line method over periods that currently range from two to ten years. | ||
In Process Research and Development | ||
The Company defines In Process Research and Development (IPR&D) as the value of technology acquired for which the related products have not yet reached technological feasibility and have no future alternative use. The primary basis for determining the technological feasibility of these projects is obtaining regulatory approval to market the underlying products in an applicable geographic region. IPR&D acquired in a business combination requires the estimated fair value of IPR&D to be capitalized as an indefinite-lived intangible asset until completion or abandonment of the IPR&D project. Upon completion of the development project, the IPR&D is amortized over its estimated useful life. If the IPR&D projects are abandoned, the related IPR&D assets would be written off. The estimated fair value of IPR&D is determined using an income approach model. | ||
At December 31, 2014, IPR&D represented an estimate of the fair value of in-process technology acquired in the AngioScore acquisition. See further discussion in Note 2, “Business Combinations.” | ||
Revenue Recognition | ||
The Company recognizes revenue when all of the following criteria are met: persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collectibility is reasonably assured. Revenue from the sale of the Company’s disposable products is recognized when products are shipped to the customer and title transfers. In general, customers do not have a right of return for credit or refund. However, the Company allows returns under certain circumstances and records an allowance for sales returns based upon an analysis of revenue transactions and historical experience of sales returns. Write-offs to customer account balances for product returns are charged against the allowance for sales returns. Revenue from the sale of CVX-300 laser systems is recognized after completion of contractual obligations, which generally include delivery and installation of the systems. The Company’s field service engineers are responsible for installation of each laser system. The Company generally provides a one-year warranty on laser sales, which includes parts, labor and replacement gas. Upon expiration of the warranty period, the Company offers similar service to its customers under annual service contracts or on a fee-for-service basis. Revenue from fee-for-service arrangements is recognized upon completion of the related service. | ||
The Company accounts for service provided during the one-year warranty or service contract period as a separate unit of accounting. As such, the fair value of this service is deferred and recognized as revenue on a straight-line basis over the related warranty or service contract term, and warranty and service costs are expensed in the period they are incurred. Revenue allocated to the laser system is recognized upon completion of all contractual obligations in the sales contract, which generally include delivery and installation of the laser system. Revenue recognized associated with service performed during the warranty period totaled $0.7 million, $0.7 million and $0.4 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||
The Company offers four laser system placement programs, which are described below, in addition to the sale of laser systems: | ||
Straight rental program. The Company offers a straight monthly rental program for laser systems, and customers pay rent of $2,500 to $3,500 per month under this program. Rental revenue is invoiced and recognized monthly. The laser system is transferred to the equipment held for rental or loan account upon shipment, and depreciation expense is included in cost of revenue based upon the five-year expected life of the laser system. Costs to maintain the equipment are expensed as incurred. As of December 31, 2014, 145 laser systems were in place under the straight rental program as compared to 152 at December 31, 2013. | ||
Volume-based rental programs. Rental revenue under these programs varies on a sliding scale depending on the customer’s catheter purchases (either unit or dollar volume) each month. Rental revenue is invoiced and recognized monthly. The laser system is transferred to the equipment held for rental or loan account upon shipment, and depreciation expense is included in cost of revenue based upon the five-year expected life of the laser system. Costs to maintain the equipment are expensed as incurred. As of December 31, 2014, 418 laser systems were in place under the volume based programs as compared to 288 at December 31, 2013. | ||
Capital included rental program. Under this program, the customer agrees to a catheter price list that includes a per-unit surcharge covering the cost of the laser system. Customers are expected, but not required, to make minimum purchases of catheters at regular intervals, and the Company reserves the right to require the customer to return the laser system if the customer does not make minimum purchases of catheters. The Company recognizes the total surcharge as rental revenue upon shipment of the catheters, believing it to be the best measurement of revenue associated with the customer’s use of the laser system. The laser system is transferred to the equipment held for rental or loan account upon shipment, and depreciation expense is included in cost of revenue based upon the five-year expected life of the laser system. Costs to maintain the equipment are expensed as incurred. As of December 31, 2014, 135 laser systems were in place under the capital included rental program as compared to 131 at December 31, 2013. | ||
Evaluation program. The Company loans laser systems to institutions for use over a short period, usually three months. The loan of the equipment is to create awareness of the Company’s products and allows users to assess their therapeutic capabilities. While no revenue is earned or recognized in connection with the placement of a loaned laser, sales of disposable products result from the laser placement. The laser system is transferred to the equipment held for rental or loan account upon shipment and depreciation expense is recorded within selling, general and administrative expense based upon the five-year expected life of the laser system. Costs to maintain the equipment are expensed as incurred. As of December 31, 2014, 53 laser systems were in place under the evaluation program as compared to 111 at December 31, 2013. | ||
The Company sells to end-users in the United States and internationally as well as to certain international distributors. Sales to international distributors represented approximately 6% of the Company’s total revenue in 2014. Distributor agreements are in place with each distributor, which outline the significant terms of the transactions between the distributor and the Company. The terms and conditions of sales to the Company’s international distributors do not differ materially from the terms and conditions of sales to its domestic and international end-user customers. Sales to distributors are recognized either at shipment or a later date in accordance with the agreed upon contract terms with distributors, provided that the Company has received an order, the price is fixed or determinable, collectibility of the resulting receivable is reasonably assured, all contractual obligations have been met and the Company can reasonably estimate returns. The Company provides products to its distributors at agreed wholesale prices and typically does not provide any special right of return or exchange, discounts, significant sales incentives, price protection or stock rotation rights to any of its distributors. | ||
Deferred Revenue | ||
Deferred revenue was $1.9 million and $1.8 million at December 31, 2014 and 2013, respectively. These amounts primarily relate to payments in advance for various product maintenance contracts in which revenue is initially deferred and recognized over the life of the contract, which is generally one year, and to deferred revenue associated with service provided to customers during the warranty period after the sale of equipment. | ||
Medical Device Excise Tax | ||
The Patient Protection and Affordable Care Act of 2010 imposes a medical device excise tax on medical device manufacturers on their sales in the U.S. of certain devices, which was effective January 1, 2013. The excise tax is 2.3% of the taxable base and applies to a substantial majority of the Company’s U.S. sales. For the years ended December 31, 2014 and 2013, the Company incurred $2.8 million and $2.1 million of excise tax, respectively, which is recorded in the consolidated statements of operations and comprehensive income (loss) as an operating expense under the caption “Medical device excise tax.” | ||
Stock-Based Compensation | ||
The Company measures all employee stock-based compensation awards using a fair value method and records such expense in its consolidated financial statements. The estimated value of the portion of the award that is ultimately expected to vest, taking into consideration estimated forfeitures based on the Company’s historical forfeiture rate, is recognized as expense over the requisite service periods in the Company’s consolidated statements of operations and comprehensive income (loss). The Company generally estimates the fair value of stock option awards on the date of grant using the Black-Scholes option pricing model. For certain options, which contained vesting provisions that included a share price trigger, the Company estimated the fair value of the options using a trinomial lattice model. With respect to performance stock units (PSUs), the number of shares that vest and are issued to the recipient is based upon the Company’s performance as measured against specified targets over a three-year period. Although there is no guarantee that performance targets will be achieved, the Company estimates the fair value of the PSUs based on its closing stock price at the time of grant and its estimate of achieving such performance targets. Over the performance period, the number of shares of common stock that will ultimately vest and be issued and the related compensation expense for PSUs is adjusted based upon the Company’s estimate of achieving such performance targets, and compensation expense is recognized based on these estimates. See further discussion and disclosures in Note 9, “Stock-based Compensation and Employee Benefit Plans.” | ||
Research, Development and Other Technology | ||
Research, development and other technology costs are expensed as incurred and totaled $28.7 million, $22.1 million, and $16.8 million for the years ended December 31, 2014, 2013, and 2012, respectively. In addition to product development costs, research, development and other technology costs include royalty expenses that the Company pays to license certain intellectual property incorporated in the Company’s products. Royalty expenses totaled $2.7 million, $2.0 million, and $1.8 million for the years ended December 31, 2014, 2013, and 2012, respectively. | ||
Clinical trial costs. The Company sponsors clinical trials intended to obtain the necessary clinical data required to obtain approval from the U.S. Food and Drug Administration (FDA) and foreign regulatory agencies to market new applications of its technology. Costs associated with these clinical trials are also included within research, development and other technology costs and totaled $4.1 million, $3.8 million, and $4.2 million for the years ended December 31, 2014, 2013, and 2012, respectively. | ||
In certain cases, substantial portions of the Company’s clinical trials are performed by third-party clinical research organizations (CROs). These CROs generally bill monthly for services performed and also bill based upon milestone achievement. For example, the Company has contracted with a CRO to provide clinical trial services for the EXCITE ISR study. The Company accrues for services as provided, when services are performed before milestone payments are made. If the Company prepays CRO fees or milestone payments, the Company records the prepayment as a prepaid asset and amortizes the asset into research, development and other technology expense over the period of time the contracted services are performed based upon the number of patients enrolled, “patient months” incurred and the duration of the study. The Company monitors patient enrollment, the progress of clinical studies and related activities through internal reviews of data reported to the Company by the CROs and correspondence with the CROs. The Company periodically evaluates its estimates to determine if adjustments are necessary or appropriate based on information it receives. | ||
Foreign Currency Translation | ||
The Company’s reporting currency is the U.S. dollar. Certain transactions of the Company and its subsidiaries are denominated in currencies other than the U.S. dollar. The functional currency of the Company’s foreign operations generally is the applicable local currency. Assets and liabilities are translated to U.S. dollars at year-end spot rates while income and expense accounts are translated at average exchange rates during the year. Adjustments resulting from these translations are reflected in stockholders’ equity as accumulated other comprehensive income (loss). The cash flows from operations in foreign countries are translated at the average rate in the consolidated statements of cash flows. Changes in exchange rates for foreign currency denoted receivables and payables result in transaction gains and losses that are reflected in the consolidated statements of operations and comprehensive income (loss) each reporting period. | ||
Advertising Costs | ||
The Company expenses advertising costs as incurred. Advertising costs of approximately $2.0 million, $1.9 million and $1.0 million were expensed for the years ended December 31, 2014, 2013 and 2012, respectively. | ||
Medical Self-insurance Costs | ||
The Company is partially self-insured for claims relating to employee medical and dental benefit programs. The medical self-insurance program is administered by a third party and contains stop-loss provisions on both an individual claim basis and in the aggregate. The Company records claims incurred as an expense each period, including an estimate of claims incurred but not yet reported, which is revised quarterly. The Company uses claims data and historical experience, as applicable, to estimate liabilities. | ||
Income Taxes | ||
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, operating losses and research and development and alternative minimum tax credit carryforwards. | ||
A valuation allowance is required to the extent it is more-likely-than-not that a deferred tax asset will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date. | ||
The Company recognizes the financial statement effects of a tax position when it is more-likely-than-not, based on technical merits, that the position will be sustained upon examination. The Company classifies penalty and interest expense related to income tax liabilities as an income tax expense. There are no significant interest and penalties recognized in the consolidated statements of operations and comprehensive income (loss) or on the consolidated balance sheet. See further discussion and disclosures in Note 14, “Income Taxes.” | ||
Recent Accounting Pronouncements | ||
In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers, which will replace most existing revenue recognition guidance in U.S. GAAP. The core principle of ASU 2014-09 is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. To achieve this core principle, ASU 2014-09 includes provisions within a five-step model that includes identifying the contract with a customer, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations, and recognizing revenue when (or as) an entity satisfies a performance obligation. ASU 2014-09 requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. ASU 2014-09 will be effective for the Company beginning January 1, 2017, and allows for both retrospective and prospective methods of adoption. The Company is in the process of determining the method of adoption and assessing the impact of ASU 2014-09 on its results of operations, financial position, and consolidated financial statements. | ||
The Company has considered all other recently issued accounting pronouncements and does not believe they are of significance, or potential significance, to the Company. |
Business_Combinations_Notes
Business Combinations (Notes) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Business Combinations [Abstract] | ||||||||
Business Combinations | BUSINESS COMBINATIONS | |||||||
AngioScore | ||||||||
On June 30, 2014 (Acquisition Date), the Company completed its acquisition of AngioScore pursuant to an Agreement and Plan of Merger (Merger Agreement), dated as of May 27, 2014. AngioScore develops, manufactures and markets the AngioSculpt scoring balloon catheter for the treatment of coronary and peripheral artery disease. The primary reasons for the AngioScore acquisition were to extend the Company’s existing product lines, leverage its current customers, expand its markets and sales coverage, increase revenue, and drive operating efficiencies. | ||||||||
Under the terms of the Merger Agreement, the Company paid the former AngioScore stockholders merger consideration of $230 million in cash, plus certain adjustments relating to working capital set forth in the Merger Agreement, on the Acquisition Date. The Company also has agreed to pay additional contingent merger consideration as follows: | ||||||||
(a) | annual cash payments for net sales of AngioScore products occurring in calendar years 2015, 2016 and 2017 equal to a multiple of 2.0 times each year’s annual increase in net sales in excess of 10% over the highest preceding year net sales, provided that the year-over-year change in net sales is positive and that such payments in the aggregate will not exceed $50 million (Revenue Payments); | |||||||
(b) | the following payments related to AngioScore’s Drug-Coated AngioSculpt (DCAS) product: | |||||||
(i) | a cash payment of $5 million if the product receives European CE mark approval for use in the coronary arteries by December 31, 2016; | |||||||
(ii) | a cash payment of $5 million if the product receives European CE mark approval for use in the peripheral arteries by December 31, 2016; and | |||||||
(iii) | a cash payment of $15 million if the product receives U.S. investigational device exemption approval for use in the coronary or peripheral arteries by December 31, 2016. | |||||||
The cash consideration was financed in part using the net proceeds from the Company’s public offering of $230 million aggregate principal amount of 2.625% Convertible Senior Notes due 2034. See Note 3, “Convertible Senior Notes.” | ||||||||
The Company accounted for the acquisition as a business combination and recorded the assets acquired, liabilities assumed, and the estimated future consideration obligations at their respective fair values as of the Acquisition Date. The components of the aggregate purchase price for the acquisition were as follows (in thousands): | ||||||||
Cash, including working capital adjustment | $ | 233,978 | ||||||
Fair value of contingent consideration | 25,886 | |||||||
Total purchase price | $ | 259,864 | ||||||
The fair value of contingent consideration liabilities was determined using a probability-weighted approach to estimate the achievement of the future revenue and regulatory approval milestones and discount rates ranging from 9% to 19%. The selection of the discount rates reflects the inherent risks of achieving the respective milestones. These fair value measurements are based on significant unobservable inputs, which are classified as Level 3 within the fair value hierarchy, based on management’s estimates and assumptions. The working capital adjustment represents the difference between actual working capital acquired as of June 30, 2014 and historical average working capital as defined in the Merger Agreement. | ||||||||
Net Assets Acquired | ||||||||
As of December 31, 2014, the Company has finalized its purchase price accounting. The following table summarizes the allocation of assets acquired and liabilities assumed as of the Acquisition Date (in thousands): | ||||||||
Allocation of purchase price | Amortization period (in years) | |||||||
Accounts receivable | $ | 8,461 | ||||||
Inventories | 14,294 | |||||||
Prepaids and other current assets | 411 | |||||||
Property and equipment, net | 712 | |||||||
Other long term assets | 30 | |||||||
Total tangible assets acquired | 23,908 | |||||||
Less: liabilities assumed | 5,060 | |||||||
Less: deferred tax liabilities | 1,516 | |||||||
Net tangible assets acquired | $ | 17,332 | ||||||
Intangible assets: | ||||||||
Technology | 73,510 | 10 | ||||||
Customer relationships | 23,320 | 10 | ||||||
Trademark and trade names | 4,380 | 6 | ||||||
In-process research and development (IPR&D) | 3,750 | |||||||
Distributor relationships | 1,940 | 2 | ||||||
Non-compete agreements | 580 | 2 | ||||||
Goodwill | 135,052 | |||||||
Total purchase price | $ | 259,864 | ||||||
The assets acquired and liabilities assumed were recorded at their estimated fair values as of the Acquisition Date. | ||||||||
The Company determined the fair value of the inventory based on its estimated selling price less cost to sell and normal profit margin, which increased the value of the acquired inventory by $2.3 million, referred to as a “step-up adjustment.” The step-up adjustment is amortized and recognized as a component of cost of products sold as the acquired inventory is sold. During the year ended December 31, 2014, the amortization of the inventory step-up increased cost of products sold by $2.1 million, reflected as “Amortization of acquired inventory step-up” in the consolidated statements of operations and comprehensive income (loss). | ||||||||
The fair value of the technology intangible assets was determined based upon the present value of expected future cash flows, utilizing a risk-adjusted discount rate. The customer and distributor relationships and the non-compete agreements were valued based on a “with and without” approach. The “with and without” method measures an asset value by estimating the difference in cash flows generated by the business with the asset in-use versus without the asset. The difference in cash flows is attributable to incremental earnings or cost savings associated with the asset. The trademark and trade names were valued based on a “relief from royalty” approach. The “relief from royalty” method is based on the premise that a third party would be willing to pay a royalty to use the trade name or trademark asset owned by the subject company. The projected royalties are converted into their present value equivalents through the application of a risk adjusted discount rate. These fair value measurements are based on significant unobservable inputs, which are classified as Level 3 within the fair value hierarchy based on management’s estimates and assumptions. | ||||||||
The IPR&D asset, which is accounted for as an indefinite-lived intangible asset until completion or abandonment of the project, represents an estimate of the fair value of in-process technology related to the DCAS product line. The estimated fair value was determined using the income approach. | ||||||||
The Company recorded the excess of the aggregate purchase price over the estimated fair values of the identifiable assets acquired as goodwill, which is not deductible for tax purposes. Goodwill is primarily attributable to the benefits the Company expects to realize by expanding its product offerings and addressable markets, thereby contributing to an expanded revenue base. The Company has also substantially increased the size of its direct sales organization, while realizing cost synergies associated with eliminating redundant positions, primarily in selling, general and administrative functions. Goodwill was allocated to the Company’s operating segments based on the relative expected benefits as disclosed in Note 6, “Goodwill and Intangible Assets.” | ||||||||
The assets and liabilities assumed in the AngioScore acquisition were included in the Company’s consolidated balance sheet as of June 30, 2014. The results of AngioScore operations have been included in the Company’s consolidated financial statements beginning July 1, 2014, and included in the Company’s U.S. Medical and International Medical reportable operating segments. | ||||||||
Acquisition and Integration Costs | ||||||||
Expenses related to the acquisition of AngioScore and the subsequent integration of its operations were $15.8 million for the year ended December 31, 2014, and primarily included investment banking, accounting, consulting, and legal fees, as well as severance, retention, and other integration costs. In addition, these costs included legal fees associated with a patent-related matter in which AngioScore is the plaintiff. These costs are included within the “Acquisition transaction and integration costs” line of the consolidated statements of operations and comprehensive income (loss). | ||||||||
Taxes | ||||||||
As part of the AngioScore acquisition, the Company acquired AngioScore’s net deferred tax assets (DTAs), including net operating loss carryforwards estimated at $94 million for federal tax purposes and $90 million for state tax purposes at June 30, 2014. These losses could be significantly limited under Internal Revenue Code (IRC) Section 382. Based on an analysis of AngioScore’s ownership changes as defined in IRC Section 382, we believe that all net operating losses will be utilized prior to expiration. | ||||||||
The Company has evaluated the realizability of the net DTAs acquired, net of the deferred tax liabilities (DTLs) that arise from the book-tax basis differences related to the non-goodwill intangible assets recorded as part of the purchase price allocation. Based on the final purchase price allocation, these DTLs exceeded the acquired DTAs by $1.3 million. The net DTLs from this acquisition create an additional source of taxable income to realize a portion of the Company’s DTAs for which a valuation allowance is no longer needed. The impact on the Company’s DTAs and DTLs caused by the acquisition is recorded outside of acquisition accounting. Accordingly, the valuation allowance on a portion of the Company’s DTAs was released and resulted in an income tax benefit of $1.3 million. See Note 14, “Income Taxes.” | ||||||||
Unaudited Supplemental Pro Forma Financial Information | ||||||||
Revenue from the AngioScore products during the period from July 1, 2014 to December 31, 2014 was $29.6 million and was included in the Company’s consolidated statements of operations and comprehensive income (loss) for the year ended December 31, 2014. The Company is unable to identify earnings attributable to AngioScore for the period from July 1, 2014 to December 31, 2014 because the operations of AngioScore have been integrated into the Company’s operations. | ||||||||
The unaudited pro forma results presented below include the combined results of both entities as if the acquisition had been consummated as of January 1, 2013. Certain pro forma adjustments have been made to reflect the impact of the purchase transaction, primarily consisting of amortization of intangible assets with determinable lives and interest expense on long-term debt. The Company also eliminated direct acquisition transaction costs and the amortization of acquired inventory step-up from 2014 results and included such costs in 2013 results. In addition, certain historical expenses, such as warrant expense and interest expense associated with debt that was immediately repaid, were eliminated from these pro forma results. The pro forma information does not necessarily reflect the actual results of operations had the acquisition been consummated at the beginning of the fiscal reporting period indicated nor is it indicative of future operating results. The pro forma information does not include any adjustment for potential revenue enhancements, cost synergies or other operating efficiencies that could result from the acquisition. | ||||||||
Year Ended December 31, | ||||||||
(in thousands) | 2014 | 2013 | ||||||
Revenue | $ | 235,318 | $ | 213,474 | ||||
Net loss | (49,445 | ) | (30,544 | ) | ||||
Net loss per share | $ | (1.19 | ) | $ | (0.78 | ) | ||
Upstream Peripheral Technologies Ltd. | ||||||||
In January 2013, the Company acquired certain products from Upstream Peripheral Technologies Ltd. (Upstream). The primary reason for the acquisition was to extend the Company’s product offering in the area of retrograde access tools and leverage its existing sales organization. The Company began selling these products in the first quarter of 2013. | ||||||||
Total consideration included cash of $6.5 million and additional payments for manufacturing and intellectual property milestones and revenue-based earn-outs for 2014, 2015 and 2016 product sales, subject to an overall cap of $35.5 million. A payment of approximately $0.1 million is due to Upstream in March 2015 based on 2014 product sales. | ||||||||
The Company accounted for the acquisition as a business combination and recorded the assets acquired and the estimated future consideration obligations at their respective fair values as of the acquisition date. | ||||||||
The Company acquired certain technology and non-compete intangible assets and recorded $1.6 million of goodwill as the excess of the aggregate purchase price over the estimated fair values of the identifiable assets acquired. At the date of acquisition, the Company recorded total contingent consideration liabilities of $6.2 million. The Company used a probability-weighted approach to estimate the achievement of the intellectual property milestones and the future revenue, and used a discount rate of 15%. | ||||||||
As of December 31, 2013, the Company reduced the amount of the contingent consideration liability by approximately $5.2 million and evaluated the acquired intangible assets for impairment. This analysis resulted in an intangible asset impairment charge of approximately $4.5 million. As of December 31, 2014, the Company recorded an impairment of the acquired core technologies in the amount of $4.1 million and reduced the contingent consideration liability for the Upstream products by approximately $1.1 million. These reductions in estimated fair value were the result of market factors associated with the access and overall retrograde interventional market and other relevant factors. See Note 6, “Goodwill and Other Intangible Assets” for a further discussion of the impairment of certain of these intangible assets and the reduction of the contingent consideration liability. |
Convertible_Senior_Notes_Notes
Convertible Senior Notes (Notes) | 12 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes | CONVERTIBLE SENIOR NOTES |
On June 3, 2014, the Company closed the sale of $230 million aggregate principal amount of 2.625% Convertible Senior Notes due 2034 (Notes) pursuant to an underwriting agreement dated May 28, 2014. Interest is paid semi-annually in arrears on December 1 and June 1 of each year, commencing December 1, 2014. The Notes will mature on June 1, 2034, unless earlier converted, redeemed, or repurchased in accordance with the terms of the Notes. The initial conversion rate of the Notes is 31.9020 shares of the Company’s common stock per $1,000 principal amount of Notes (which is equivalent to an initial conversion price of approximately $31.35 per share). The conversion rate is subject to adjustment upon the occurrence of certain events specified in the indenture governing the Notes. Holders may surrender their Notes for conversion at any time prior to the close of business on the second scheduled trading day immediately preceding the stated maturity date. On or after June 5, 2018 and prior to June 5, 2021, the Company may redeem any or all of the Notes in cash if the closing price of the Company’s common stock exceeds 130% of the conversion price then in effect for a specified number of days, and on or after June 5, 2021, the Company may redeem the Notes without any such condition. | |
Holders of the Notes may require the Company to repurchase all or a portion of their Notes on each of June 5, 2021, June 5, 2024 and June 5, 2029, or following a fundamental change (as defined in the indenture governing the Notes), in each case, at a repurchase price in cash equal to 100% of the principal amount of the Notes being repurchased plus accrued and unpaid interest to, but excluding, the date of repurchase. | |
The Notes are subject to customary events of default, which may result in the acceleration of the maturity of the Notes. | |
The Notes are the Company’s senior unsecured obligations and rank senior in right of payment to any of the Company’s indebtedness that is expressly subordinated in right of payment to the Notes, rank equally in right of payment with any of the Company’s unsecured indebtedness that is not so subordinated, are effectively junior in right of payment to any of the Company’s secured indebtedness to the extent of the value of the assets securing such indebtedness and are structurally subordinated to all indebtedness and other liabilities of the Company’s subsidiaries. | |
The Company received $222.5 million from the issuance of the Notes, net of $7.5 million of debt issuance costs incurred. The debt issuance costs are being amortized over a seven year period using the effective interest method. The Company used all of the net proceeds to fund the acquisition of AngioScore (see Note 2, “Business Combinations”). | |
DEBT — LINE OF CREDIT | |
On February 25, 2011, the Company entered into a Credit and Security Agreement (Credit Agreement) with Wells Fargo Bank, National Association (Wells Fargo), acting through its Wells Fargo Business Credit operating division, for a three-year $15.0 million revolving line of credit. In February 2014, the Company renewed the line of credit for an additional three-year term under substantially the same terms. Under the terms of the Credit Agreement, the Company may borrow under the revolving line of credit subject to borrowing base limitations. These limitations allow the Company to borrow, subject to specified reserves, up to 85% of eligible domestic accounts receivable, defined as receivables aged less than 90 days from the invoice date along with specific exclusions for contra-accounts, concentrations, and other accounts otherwise deemed ineligible by Wells Fargo Business Credit. Borrowings under the revolving line bear interest at a variable rate equal to the lesser of the Wells Fargo prime rate plus 0.25% or the daily three month LIBOR plus 3.25%, or 3.5% at December 31, 2014. The margins on the base interest rates are subject to reduction if the Company achieves certain annual net income levels. Accrued interest on any outstanding balance under the revolving line is payable monthly in arrears. The Company’s borrowing base, which represents the amount the Company can borrow under the revolving line of credit, was $12.6 million as of December 31, 2014. | |
The revolving line of credit is secured by a first priority security interest in substantially all of the Company’s assets. The Credit Agreement requires the Company to maintain a minimum of $10.0 million cash and investments at Wells Fargo and requires a lockbox arrangement. The Company is required to pay customary fees with respect to the facility, including a 0.25% fee on the average unused portion of the revolving line. If there are borrowings under the revolving line of credit, the Company will be subject to certain financial covenants including rolling 12-month adjusted EBITDA and minimum book net worth covenants. | |
The Credit Agreement contains customary events of default, including the failure to make required payments, the failure to comply with certain covenants or other agreements, the occurrence of a material adverse change, failure to pay certain other indebtedness and certain events of bankruptcy or insolvency. Upon the occurrence and continuation of an event of default, amounts due under the Credit Agreement may be accelerated. | |
As of the date of this filing, the Company had no events of default and no borrowings under the revolving line of credit. |
Inventories_Notes
Inventories (Notes) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | INVENTORIES | |||||||
Inventories, net, consisted of the following (in thousands): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Raw materials | $ | 9,012 | $ | 4,132 | ||||
Work in process | 3,745 | 1,696 | ||||||
Finished goods | 12,689 | 3,648 | ||||||
$ | 25,446 | $ | 9,476 | |||||
At June 30, 2014, the Company acquired $14.3 million of inventories from AngioScore. See Note 2, “Business Combinations,” for further discussion. |
Property_and_Equipment_Notes
Property and Equipment (Notes) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property and Equipment | PROPERTY AND EQUIPMENT | |||||||
Property and equipment, net, consisted of the following (in thousands): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Equipment held for rental or loan | $ | 47,313 | $ | 42,949 | ||||
Manufacturing equipment and computers | 29,692 | 24,827 | ||||||
Leasehold improvements | 6,730 | 5,697 | ||||||
Furniture and fixtures | 3,473 | 2,446 | ||||||
Building and improvements | 1,288 | 1,276 | ||||||
Land | 270 | 270 | ||||||
Less: accumulated depreciation and amortization | (54,947 | ) | (49,184 | ) | ||||
Total property and equipment, net | $ | 33,819 | $ | 28,281 | ||||
At June 30, 2014, the Company acquired $0.7 million of property and equipment, net, from AngioScore. See Note 2, “Business Combinations,” for further discussion. | ||||||||
Depreciation expense for the years ended December 31, 2014, 2013 and 2012 was $9.5 million, $8.8 million and $8.9 million, respectively. In addition, software amortization expense for each of the years ended December 31, 2014, 2013 and 2012 was $0.9 million. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets (Notes) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||
Goodwill and other intangible assets | GOODWILL AND OTHER INTANGIBLE ASSETS | |||||||||
Goodwill. The Company’s goodwill relates to the acquisition of AngioScore in 2014, the acquisition of the endovascular product lines of Kensey Nash Corporation in 2008, and the acquisition of certain products from Upstream in January 2013. | ||||||||||
The change in the carrying amount of goodwill by reporting unit for the year ended December 31, 2014 was as follows (in thousands): | ||||||||||
U.S. Medical | International Medical | Total | ||||||||
Balance as of December 31, 2013 | $ | 8,165 | $ | 6,681 | $ | 14,846 | ||||
Goodwill acquired during the year (Note 2) | 120,196 | 14,856 | 135,052 | |||||||
Balance as of December 31, 2014 | $ | 128,361 | $ | 21,537 | $ | 149,898 | ||||
As of December 31, 2014, the Company performed an assessment of qualitative factors to determine if it was more-likely-than-not that goodwill might be impaired and whether it was necessary to perform the two-step goodwill impairment test. The qualitative factors assessed included the market capitalization of the Company, economic and market considerations, overall financial performance and other events affecting the reporting units. Based on these qualitative factors, the Company determined that it was not necessary to perform the two-step goodwill impairment test as it was not more-likely-than-not that goodwill might be impaired. | ||||||||||
Intangible Assets. Acquired intangible assets as of December 31, 2014 and 2013 consisted of the following (in thousands): | ||||||||||
December 31, 2014 | December 31, 2013 | |||||||||
Acquired as part of AngioScore acquisition (Note 2): | ||||||||||
Technology | $ | 73,510 | $ | — | ||||||
Customer relationships | 23,320 | — | ||||||||
Trademark and trade names | 4,380 | — | ||||||||
IPR&D | 3,750 | — | ||||||||
Distributor relationships | 1,940 | — | ||||||||
Non-compete agreements | 580 | — | ||||||||
Acquired as part of Upstream acquisition (Note 2) | ||||||||||
Technology | 2,172 | 6,310 | ||||||||
Non-compete agreement | 200 | 200 | ||||||||
Patents | 530 | 530 | ||||||||
Less: accumulated amortization | (7,766 | ) | (1,431 | ) | ||||||
$ | 102,616 | $ | 5,609 | |||||||
See further discussion of the additional goodwill and intangible assets acquired as part of the AngioScore and Upstream acquisitions in Note 2. | ||||||||||
As a result of market factors associated with the access and overall retrograde interventional market and other relevant factors, the Company evaluated the intangible assets acquired as part of the Upstream acquisition for impairment as of September 30, 2014. This analysis resulted in an intangible asset impairment charge of approximately $4.1 million, reflected in the consolidated statements of operations and comprehensive income (loss) under the caption, “Intangible asset impairment,” and included in the U.S. Medical segment. The Company performed a separate impairment analysis for each of the two product technologies acquired from Upstream, which have separately identifiable cash flows. The Company compared the carrying value of the intangible assets acquired to the undiscounted cash flows expected to result from the assets and determined that the carrying amount of both of the acquired core technology assets were not fully recoverable. The Company then determined the fair value of the intangible assets based on estimated future cash flows discounted back to their present value using a discount rate (27%) that reflects the risk profiles of the underlying activities. In conjunction with this analysis, the Company reduced the amount of the contingent consideration liability for the Upstream products by approximately $1.1 million, reflected in the consolidated statements of operations and comprehensive income (loss) under the caption, “Change in fair value of contingent consideration liability.” This reduction was the result of the Company’s determination that it expects to realize lower revenue from sales of the Upstream products than was previously anticipated and make correspondingly lower revenue-related contingent payments. | ||||||||||
The Company had previously evaluated the intangible assets acquired from Upstream for impairment as of December 31, 2013. This analysis resulted in an intangible asset impairment charge of approximately $4.5 million, using a similar methodology as described above in the 2014 analysis. | ||||||||||
Aggregate amortization expense for amortizing intangible assets was $6.3 million, $0.9 million and $0.1 million for the years ended December 31, 2014, 2013 and 2012, respectively. The IPR&D is not amortized until completion of the project. As of December 31, 2014, estimated future amortization expense for intangible assets subject to amortization was as follows (in thousands): | ||||||||||
Amortization Expense | ||||||||||
Years ending December 31: | ||||||||||
2015 | $ | 12,027 | ||||||||
2016 | 11,397 | |||||||||
2017 | 10,678 | |||||||||
2018 | 10,413 | |||||||||
2019 | 10,413 | |||||||||
Thereafter | 43,938 | |||||||||
$ | 98,866 | |||||||||
Accrued_Liabilities_Notes
Accrued Liabilities (Notes) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accrued Liabilities [Abstract] | ||||||||
Accrued Liabilities | ACCRUED LIABILITIES | |||||||
Accrued liabilities consisted of the following (in thousands): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Accrued payroll and employee-related expenses | $ | 21,483 | $ | 11,808 | ||||
Accrued legal costs | 4,793 | 134 | ||||||
Accrued sales, income and excise taxes | 1,847 | 1,659 | ||||||
Accrued clinical study expense | 1,358 | 872 | ||||||
Deferred rent | 1,214 | 1,204 | ||||||
Accrued royalties | 841 | 571 | ||||||
Accrued interest on convertible notes | 503 | — | ||||||
Contingent consideration, current portion | 143 | 500 | ||||||
Other accrued expenses | 4,092 | 3,286 | ||||||
Total accrued liabilities | 36,274 | 20,034 | ||||||
Less: long-term portion | (1,222 | ) | (1,215 | ) | ||||
Accrued liabilities, current portion | $ | 35,052 | $ | 18,819 | ||||
Common_Stock_Offering_Notes
Common Stock Offering (Notes) | 12 Months Ended |
Dec. 31, 2014 | |
Equity [Abstract] | |
Common Stock Offering | COMMON STOCK OFFERING |
On May 1, 2013, the Company completed an offering of 5,462,500 shares of its common stock at a public offering price of $18.00 per share minus the underwriters’ discount of $1.08 per share. The Company received net proceeds of approximately $92.0 million, after deducting underwriting discounts and commissions and offering expenses (approximately $0.4 million) paid by the Company. |
Stock_Based_Compensation_and_E
Stock Based Compensation and Employee Benefit Plans (Notes) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Stock Based Compensation and Employee Benefit Plans | STOCK-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS | ||||||||||||
At December 31, 2014 and 2013, the Company had two stock-based compensation plans and a 401(k) plan. These plans are described below. | |||||||||||||
(a) Stock Option Plan | |||||||||||||
The Company maintains stock option plans that provide for the grant of incentive stock options, nonqualified stock options, restricted stock awards, restricted stock units, performance stock units (PSUs) and stock appreciation rights. The plans provide that incentive stock options may be granted with exercise prices not less than the fair market value at the date of grant. Options granted through December 31, 2014 generally vest over four years and expire ten years from the date of grant. Restricted stock awards granted to non-employee members of the Board of Directors vest over one year. Restricted stock units granted to certain officers of the Company vest over four years. In June 2014, the Company’s stockholders approved an amendment and restatement of the Company’s 2006 Incentive Award Plan that, among other matters, increased the number of shares available for future issuance by 2.9 million shares. At December 31, 2014, there were 3.5 million shares available for future issuance under these plans. | |||||||||||||
In June 2014, the Compensation Committee of the Board of Directors approved a grant of PSUs to certain of the Company’s officers. PSUs vest based on achieving specified performance measurements over a three-year “cliff” performance period plus an additional year “cliff” time vesting. The PSUs have payout opportunities of between 0% and 250%. The performance measurements include a compounded annual growth rate for revenue over a three-year period and Adjusted EBITDA for the year ended December 31, 2016. | |||||||||||||
Valuation and Expense Information | |||||||||||||
The Company recognized stock-based compensation expense of $8.3 million, $4.1 million and $3.1 million for the years ended December 31, 2014, 2013 and 2012, respectively, which consisted of compensation expense related to (1) employee stock options based on the value of share-based payment awards that are ultimately expected to vest during the period, (2) restricted stock awards issued to certain of the Company’s directors, (3) restricted stock units and PSUs issued to certain of the Company’s officers, and (4) the fair value of shares issued under the Company’s employee stock purchase plan. Stock-based compensation expense is recognized based on awards ultimately expected to vest and is reduced for estimated forfeitures. The Company recognizes compensation expense for these awards on a straight-line basis over the service period. An income tax benefit of $3.0 million, $1.4 million, and $0.7 million related to the exercise of stock options during the years ended December 31, 2014, 2013 and 2012, respectively, will be added to other paid-in capital if, and when, the tax benefit is realized. | |||||||||||||
With respect to the PSUs, the number of shares that vest and are issued to the recipient is based upon the Company’s performance as measured against the specified targets over a three-year period as determined by the Compensation Committee of the Board of Directors. Although there is no guarantee that performance targets will be achieved, the Company estimates the fair value of the PSUs based on its closing stock price at the time of grant and its estimates of achieving such performance targets and records compensation expense on a graded vesting attribution method, which recognizes compensation cost on a straight-line basis over each separately vesting portion of the award. Over the performance period, the number of shares of common stock that will ultimately vest and be issued and the related compensation expense is adjusted based upon the Company’s estimate of achieving such performance targets. The number of shares delivered to recipients and the related compensation cost recognized as an expense will be based on the actual performance metrics as set forth in the applicable PSU award agreement. | |||||||||||||
The fair value of each share option award is estimated on the date of grant using the Black-Scholes pricing model based on assumptions noted in the following table. The Company’s employee stock options have various restrictions including vesting provisions and restrictions on transfers and hedging, among others, and are often exercised prior to their contractual expiration. Expected volatilities used in the fair value estimate are based on the historical volatility of the Company’s common stock. The Company uses historical data to estimate share option exercises, expected term and employee departure behavior used in the Black-Scholes pricing model. The risk-free rate for periods within the contractual term of the share option is based on the U.S. Treasury yield in effect at the time of grant. | |||||||||||||
The following is a summary of the assumptions used for the stock options granted during the years ended December 31, 2014, 2013 and 2012 using the Black-Scholes pricing model: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Expected life (years) | 5.8 | 5.8 | 5.9 | ||||||||||
Risk-free interest rate | 1.65 | % | 1.37 | % | 0.75 | % | |||||||
Expected volatility | 61.44 | % | 65.54 | % | 66.35 | % | |||||||
Expected dividend yield | — | — | — | ||||||||||
The weighted average grant date fair value of options granted during the years ended December 31, 2014, 2013 and 2012 was $13.59, $10.80 and $6.17, respectively. | |||||||||||||
The following table summarizes stock option activity during the year ended December 31, 2014: | |||||||||||||
Shares | Weighted | Weighted Avg. | Aggregate Intrinsic | ||||||||||
Average | Remaining | Value | |||||||||||
Exercise Price | Contractual Term | ||||||||||||
(In Years) | |||||||||||||
Options outstanding at January 1, 2014 | 3,153,234 | $ | 9.72 | ||||||||||
Granted | 321,397 | 24.29 | |||||||||||
Exercised | (672,739 | ) | 6.81 | ||||||||||
Canceled | (102,981 | ) | 17.56 | ||||||||||
Options outstanding at December 31, 2014 | 2,698,911 | $ | 11.88 | 6.81 | $ | 61,265,166 | |||||||
Options exercisable at December 31, 2014 | 1,607,979 | $ | 8.47 | 5.76 | $ | 41,983,321 | |||||||
The aggregate intrinsic value in the preceding table represents the total pre-tax intrinsic value based on the Company’s closing stock price of $34.58 on December 31, 2014 that would have been received by the option holders had all option holders exercised their options as of that date. The total number of shares underlying in-the-money options exercisable as of December 31, 2014 was approximately 1.6 million. The total intrinsic value of options exercised during the years ended December 31, 2014, 2013 and 2012 was $14.8 million, $9.2 million and $5.1 million, respectively. | |||||||||||||
The following table summarizes restricted stock award activity during the year ended December 31, 2014: | |||||||||||||
Shares | Weighted Average | ||||||||||||
Grant Date Fair Value | |||||||||||||
Restricted stock awards outstanding at January 1, 2014 | 22,190 | $ | 18.93 | ||||||||||
Awarded | 26,802 | 22.39 | |||||||||||
Vested | (22,190 | ) | 18.93 | ||||||||||
Awards outstanding at December 31, 2014 | 26,802 | $ | 22.39 | ||||||||||
The following table summarizes restricted stock unit activity during the year ended December 31, 2014: | |||||||||||||
Shares | Weighted Average | ||||||||||||
Grant Date Fair Value | |||||||||||||
Restricted stock units outstanding at January 1, 2014 | 158,622 | $ | 12.56 | ||||||||||
Awarded | 93,331 | 23.89 | |||||||||||
Vested/Released | (58,824 | ) | 9.98 | ||||||||||
Forfeited | (11,113 | ) | 10.27 | ||||||||||
Restricted stock units outstanding at December 31, 2014 | 182,016 | $ | 19.35 | ||||||||||
The following table summarizes PSU activity during the year ended December 31, 2014: | |||||||||||||
Shares | Weighted Average Grant Date Fair Value | ||||||||||||
Performance stock units outstanding at January 1, 2014 | — | $ | — | ||||||||||
Awarded (at target performance) | 500,985 | 23.43 | |||||||||||
Forfeited | (13,827 | ) | — | ||||||||||
Performance stock units outstanding at December 31, 2014 | 487,158 | $ | 23.43 | ||||||||||
As of December 31, 2014, there was $24.0 million of total unrecognized compensation expense related to non-vested share-based compensation arrangements granted under the Company’s stock option plans, using our current estimates of performance for the PSUs. Assuming the minimum of 0% and maximum of 250% payout opportunities for the PSUs, the range of total unrecognized compensation expense related to non-vested share-based compensation arrangements granted under the Company’s equity plans was between $10.5 million and $36.8 million as of December 31, 2014. This expense is based on an assumed future forfeiture rate of approximately 11.3% per year for Company employees and is expected to be recognized over a weighted-average period of approximately 2.7 years. | |||||||||||||
(b) Employee Stock Purchase Plan | |||||||||||||
In June 2010, the Company’s stockholders approved The Spectranetics Corporation 2010 Employee Stock Purchase Plan (ESPP). The ESPP provides for the sale of up to 700,000 shares of common stock to eligible employees, limited to the lesser of 2,500 shares per employee per six-month period or a fair market value of $25,000 per employee per calendar year. Stock purchased under the ESPP is restricted from sale for one year following the date of purchase. Stock can be purchased from amounts accumulated through payroll deductions during each six-month period. The purchase price is equal to 85% of the lower of the fair market value of the Company’s common stock at the beginning or end of the respective six-month offering period. This discount does not exceed the maximum discount rate permitted for plans of this type under Section 423 of the Internal Revenue Code of 1986, as amended. The ESPP is compensatory for financial reporting purposes. At December 31, 2014, there were approximately 200,000 shares available for future issuance under this plan. | |||||||||||||
The fair value of the shares offered for the six-month periods beginning January and July 2014 under the ESPP was determined on the date of grant using the Black-Scholes option-pricing model. The expected term of six months was based upon the offering period of the ESPP. Expected volatility was determined based on the historical volatility from daily share price observations for the Company’s stock covering a period commensurate with the expected term of the ESPP. The risk-free interest rate is based on the six-month U.S. Treasury daily yield rate. The expected dividend yield is based on the Company’s historical practice of electing not to pay dividends to its stockholders. For the years ended December 31, 2014, 2013 and 2012, the Company recognized $0.8 million, $0.4 million and $0.3 million of compensation expense, respectively, related to its ESPP. | |||||||||||||
(c) 401(k) Plan | |||||||||||||
The Company maintains a salary reduction savings plan under Section 401(k) of the Internal Revenue Code (401(k) Plan) that the Company administers for participating employees’ contributions. All full-time employees are covered under the 401(k) Plan after meeting minimum service requirements. The Company accrued and paid matching contributions of $1.3 million, $0.9 million, and $0.8 million to the 401(k) Plan for the years ended December 31, 2014, 2013 and 2012, respectively. For all years presented, Company contributions were based on a match of 50% of each employee’s contribution, with the match-eligible contribution being limited to 6% of the employee’s eligible compensation. |
Net_Loss_Income_Per_Share_Note
Net (Loss) Income Per Share (Notes) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Net (Loss) Income Per Share | NET (LOSS) INCOME PER SHARE | |||||||||||
Basic net (loss) income per share is computed by dividing net (loss) income by the weighted average number of common shares outstanding (excluding shares of restricted stock). Shares issued during the period and shares reacquired during the period are weighted for the portion of the period they were outstanding. Diluted net (loss) income per share is computed in a manner consistent with that of basic net (loss) income per share, while giving effect to all potentially dilutive common shares outstanding during the period, which include the assumed exercise of stock options and the assumed vesting of restricted stock using the treasury stock method. | ||||||||||||
Options to purchase common stock, the vesting of restricted stock and performance stock units, and shares issuable upon conversion of the Notes are considered to be potentially dilutive common shares but have been excluded from the calculation of diluted net loss per share as their effect is anti-dilutive for the years ended December 31, 2014 and 2013 as a result of the net losses incurred for those years. Therefore, diluted net loss per share was the same as basic net loss per share for the years ended December 31, 2014 and 2013. Stock options, restricted stock, PSUs, and shares issuable upon the conversion of the Notes outstanding at December 31, 2014 and 2013, which are excluded from the computation of diluted net loss per share for those years, are shown in the table below: | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Options to purchase common stock | 2,698,911 | 3,153,234 | ||||||||||
Non-vested restricted stock | 208,818 | 180,812 | ||||||||||
Non-vested performance stock units | 487,158 | — | ||||||||||
Shares issuable upon conversion of the Notes | 7,337,459 | — | ||||||||||
Potentially dilutive common shares | 10,732,346 | 3,334,046 | ||||||||||
For the year ended December 31, 2012, a weighted average of 0.6 million stock options were excluded from the computation of diluted earnings per share because their inclusion would have been anti-dilutive. | ||||||||||||
A summary of the net (loss) income per share calculation is shown below for the years indicated: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net (loss) income (in thousands) | $ | (40,901 | ) | $ | (370 | ) | $ | 2,226 | ||||
Common shares outstanding: | ||||||||||||
Historical common shares outstanding at beginning of year (excluding shares of unvested restricted stock) | 41,208,096 | 34,839,131 | 33,883,378 | |||||||||
Weighted average common shares issued | 471,273 | 4,101,413 | 493,469 | |||||||||
Weighted average common shares outstanding-basic | 41,679,369 | 38,940,544 | 34,376,847 | |||||||||
Effect of dilution from stock options | — | — | 1,390,123 | |||||||||
Weighted average common shares outstanding-diluted | 41,679,369 | 38,940,544 | 35,766,970 | |||||||||
Net (loss) income per share, basic | $ | (0.98 | ) | $ | (0.01 | ) | $ | 0.06 | ||||
Net (loss) income per share, diluted | $ | (0.98 | ) | $ | (0.01 | ) | $ | 0.06 | ||||
Concentrations_of_Credit_Risk
Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2014 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Credit Risk | CONCENTRATIONS OF CREDIT RISK |
The Company’s investment policy is designed to limit the Company’s exposure to concentrations of credit risk. | |
The Company’s accounts receivable are due from a variety of health care organizations and distributors throughout the United States, Europe, the Middle East, Latin America and Asia. No single customer represented more than 10% of revenue or accounts receivable for any year presented in our consolidated financial statements. The Company provides for uncollectible amounts upon recognition of revenue and when specific credit problems arise. Historically, management’s estimates for uncollectible amounts have been adequate, and management believes that all significant credit risks have been identified at December 31, 2014. The Company has not entered into any hedging transactions nor any transactions involving financial derivatives. |
Segment_and_Geographic_Reporti
Segment and Geographic Reporting (Notes) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Segment and Geographic Reporting | SEGMENT AND GEOGRAPHIC REPORTING | |||||||||||
The Company operates in one distinct line of business consisting of developing, manufacturing, marketing and distributing disposable products and a proprietary excimer laser system for the treatment of certain peripheral and coronary vascular conditions. | ||||||||||||
Within this line of business, the Company has identified two operating segments, which were identified on a geographic basis: (1) U.S. Medical and (2) International Medical. U.S. Medical and International Medical offer the same products and services but operate in different geographic regions, have different distribution networks and different regulatory environments. Within U.S. Medical, the Company aggregates its two product lines, Vascular Intervention and Lead Management, based on their similar economic, operational and regulatory characteristics. | ||||||||||||
Additional information regarding each operating segment is discussed below. | ||||||||||||
(a) U.S. Medical | ||||||||||||
Products offered by this segment include single-use medical devices used in minimally invasive procedures within the cardiovascular system, including fiber-optic devices and non-fiber-optic products (disposables), an excimer laser system (equipment), and the service of the excimer laser system (service). The Company is subject to product approvals from the FDA. At December 31, 2014, FDA-approved products were used in multiple vascular procedures, including peripheral and coronary atherectomy, aspiration and thrombectomy and the removal of cardiac lead wires from patients with pacemakers and cardiac defibrillators. This segment’s customers are primarily located in the United States and Canada. | ||||||||||||
U.S. Medical also includes the corporate headquarters of the Company. All manufacturing, research and development as well as corporate administrative functions are performed within this reportable segment. As of December 31, 2014, 2013 and 2012, a portion of research, development and other technology expenses and general and administrative expenses incurred in the U.S. has been allocated to International Medical based on a percentage of revenue because these expenses support the Company’s ability to generate revenue within the International Medical segment. | ||||||||||||
Manufacturing activities are performed entirely within the U.S. Medical segment. Revenue associated with intersegment product transfers to International Medical was $8.1 million, $7.6 million and $7.5 million for the years ended December 31, 2014, 2013 and 2012, respectively. Revenue is based upon transfer prices, which provide for intersegment profit that is eliminated upon consolidation. | ||||||||||||
(b) International Medical | ||||||||||||
The International Medical segment headquarters is located in the Netherlands and serves Europe as well as the Middle East, Latin America (including Puerto Rico), Japan and the Pacific Rim. Products offered by this segment are substantially the same as those offered by U.S. Medical. The International Medical segment is engaged primarily in distribution activities, with no manufacturing or product development functions. Certain U.S. incurred research, development and other technology expenses and general and administrative expenses have been allocated to International Medical based on a percentage of revenue because these expenses support the Company’s ability to generate revenue within the International Medical segment. | ||||||||||||
Summary financial information relating to reportable segment operations is shown below. Intersegment transfers as well as intercompany assets and liabilities are excluded from the information provided (in thousands): | ||||||||||||
For the Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Revenue: | ||||||||||||
U.S. Medical: | ||||||||||||
Disposable products | $ | 155,107 | $ | 114,976 | $ | 103,218 | ||||||
Service and other, net of allowance for sales returns | 9,334 | 9,833 | 9,081 | |||||||||
Equipment | 2,958 | 5,317 | 5,137 | |||||||||
Subtotal | 167,399 | 130,126 | 117,436 | |||||||||
International Medical: | ||||||||||||
Disposable products | 29,703 | 23,143 | 19,304 | |||||||||
Service and other, net of allowance for sales returns | 2,156 | 1,579 | 1,358 | |||||||||
Equipment | 5,656 | 3,963 | 2,187 | |||||||||
Subtotal | 37,515 | 28,685 | 22,849 | |||||||||
Total revenue | $ | 204,914 | $ | 158,811 | $ | 140,285 | ||||||
U.S. Medical | International | Total | ||||||||||
Medical | ||||||||||||
2014 | ||||||||||||
Interest income | $ | 44 | $ | 2 | $ | 46 | ||||||
Interest expense | 4,098 | 10 | 4,108 | |||||||||
Depreciation and amortization expense | 15,205 | 1,608 | 16,813 | |||||||||
Income tax (benefit) expense | (887 | ) | 565 | (322 | ) | |||||||
Segment operating (loss) income | (39,267 | ) | 2,317 | (36,950 | ) | |||||||
Segment net (loss) income | (42,628 | ) | 1,727 | (40,901 | ) | |||||||
Capital expenditures | 6,532 | 190 | 6,722 | |||||||||
Total assets | $ | 432,151 | $ | 34,799 | $ | 466,950 | ||||||
U.S. Medical | International | Total | ||||||||||
Medical | ||||||||||||
2013 | ||||||||||||
Interest income | $ | 61 | $ | — | $ | 61 | ||||||
Interest expense | 58 | — | 58 | |||||||||
Depreciation and amortization expense | 9,217 | 1,393 | 10,610 | |||||||||
Income tax expense | 402 | 378 | 780 | |||||||||
Segment operating (loss) income | (1,276 | ) | 1,670 | 394 | ||||||||
Segment net (loss) income | (1,666 | ) | 1,296 | (370 | ) | |||||||
Capital expenditures | 4,406 | 214 | 4,620 | |||||||||
Total assets | $ | 198,639 | $ | 18,518 | $ | 217,157 | ||||||
U.S. Medical | International | Total | ||||||||||
Medical | ||||||||||||
2012 | ||||||||||||
Interest income | $ | 70 | $ | 1 | $ | 71 | ||||||
Interest expense | 63 | — | 63 | |||||||||
Depreciation and amortization expense | 8,705 | 1,178 | 9,883 | |||||||||
Income tax expense | 414 | 320 | 734 | |||||||||
Segment operating income | 1,037 | 1,910 | 2,947 | |||||||||
Segment net income | 656 | 1,570 | 2,226 | |||||||||
Capital expenditures | 3,063 | 16 | 3,079 | |||||||||
Total assets | $ | 95,181 | $ | 15,588 | $ | 110,769 | ||||||
In 2014, 2013 and 2012, no individual customer represented 10% or more of consolidated revenue. There were no individual countries, other than the United States, that represented at least 10% of consolidated revenue in 2014, 2013 or 2012. Long-lived assets, other than financial instruments and deferred tax assets, located in foreign countries are concentrated in Europe, and totaled $26.6 million and $11.9 million as of December 31, 2014 and 2013, respectively. | ||||||||||||
Revenue by Product Line | ||||||||||||
For the Year Ended December 31, | ||||||||||||
(in thousands) | 2014 | 2013 | 2012 | |||||||||
Revenue | ||||||||||||
Disposable products revenue: | ||||||||||||
Vascular intervention | $ | 118,148 | $ | 75,601 | $ | 67,336 | ||||||
Lead management | 66,662 | 62,518 | 55,186 | |||||||||
Total disposable products revenue | 184,810 | 138,119 | 122,522 | |||||||||
Service and other, net of allowance for sales returns | 11,490 | 11,412 | 10,439 | |||||||||
Equipment | 8,614 | 9,280 | 7,324 | |||||||||
Total revenue | $ | 204,914 | $ | 158,811 | $ | 140,285 | ||||||
Debt_Line_of_Credit_Notes
Debt - Line of Credit (Notes) | 12 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
Debt - Line of Credit | CONVERTIBLE SENIOR NOTES |
On June 3, 2014, the Company closed the sale of $230 million aggregate principal amount of 2.625% Convertible Senior Notes due 2034 (Notes) pursuant to an underwriting agreement dated May 28, 2014. Interest is paid semi-annually in arrears on December 1 and June 1 of each year, commencing December 1, 2014. The Notes will mature on June 1, 2034, unless earlier converted, redeemed, or repurchased in accordance with the terms of the Notes. The initial conversion rate of the Notes is 31.9020 shares of the Company’s common stock per $1,000 principal amount of Notes (which is equivalent to an initial conversion price of approximately $31.35 per share). The conversion rate is subject to adjustment upon the occurrence of certain events specified in the indenture governing the Notes. Holders may surrender their Notes for conversion at any time prior to the close of business on the second scheduled trading day immediately preceding the stated maturity date. On or after June 5, 2018 and prior to June 5, 2021, the Company may redeem any or all of the Notes in cash if the closing price of the Company’s common stock exceeds 130% of the conversion price then in effect for a specified number of days, and on or after June 5, 2021, the Company may redeem the Notes without any such condition. | |
Holders of the Notes may require the Company to repurchase all or a portion of their Notes on each of June 5, 2021, June 5, 2024 and June 5, 2029, or following a fundamental change (as defined in the indenture governing the Notes), in each case, at a repurchase price in cash equal to 100% of the principal amount of the Notes being repurchased plus accrued and unpaid interest to, but excluding, the date of repurchase. | |
The Notes are subject to customary events of default, which may result in the acceleration of the maturity of the Notes. | |
The Notes are the Company’s senior unsecured obligations and rank senior in right of payment to any of the Company’s indebtedness that is expressly subordinated in right of payment to the Notes, rank equally in right of payment with any of the Company’s unsecured indebtedness that is not so subordinated, are effectively junior in right of payment to any of the Company’s secured indebtedness to the extent of the value of the assets securing such indebtedness and are structurally subordinated to all indebtedness and other liabilities of the Company’s subsidiaries. | |
The Company received $222.5 million from the issuance of the Notes, net of $7.5 million of debt issuance costs incurred. The debt issuance costs are being amortized over a seven year period using the effective interest method. The Company used all of the net proceeds to fund the acquisition of AngioScore (see Note 2, “Business Combinations”). | |
DEBT — LINE OF CREDIT | |
On February 25, 2011, the Company entered into a Credit and Security Agreement (Credit Agreement) with Wells Fargo Bank, National Association (Wells Fargo), acting through its Wells Fargo Business Credit operating division, for a three-year $15.0 million revolving line of credit. In February 2014, the Company renewed the line of credit for an additional three-year term under substantially the same terms. Under the terms of the Credit Agreement, the Company may borrow under the revolving line of credit subject to borrowing base limitations. These limitations allow the Company to borrow, subject to specified reserves, up to 85% of eligible domestic accounts receivable, defined as receivables aged less than 90 days from the invoice date along with specific exclusions for contra-accounts, concentrations, and other accounts otherwise deemed ineligible by Wells Fargo Business Credit. Borrowings under the revolving line bear interest at a variable rate equal to the lesser of the Wells Fargo prime rate plus 0.25% or the daily three month LIBOR plus 3.25%, or 3.5% at December 31, 2014. The margins on the base interest rates are subject to reduction if the Company achieves certain annual net income levels. Accrued interest on any outstanding balance under the revolving line is payable monthly in arrears. The Company’s borrowing base, which represents the amount the Company can borrow under the revolving line of credit, was $12.6 million as of December 31, 2014. | |
The revolving line of credit is secured by a first priority security interest in substantially all of the Company’s assets. The Credit Agreement requires the Company to maintain a minimum of $10.0 million cash and investments at Wells Fargo and requires a lockbox arrangement. The Company is required to pay customary fees with respect to the facility, including a 0.25% fee on the average unused portion of the revolving line. If there are borrowings under the revolving line of credit, the Company will be subject to certain financial covenants including rolling 12-month adjusted EBITDA and minimum book net worth covenants. | |
The Credit Agreement contains customary events of default, including the failure to make required payments, the failure to comply with certain covenants or other agreements, the occurrence of a material adverse change, failure to pay certain other indebtedness and certain events of bankruptcy or insolvency. Upon the occurrence and continuation of an event of default, amounts due under the Credit Agreement may be accelerated. | |
As of the date of this filing, the Company had no events of default and no borrowings under the revolving line of credit. |
Income_Taxes_Notes
Income Taxes (Notes) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes | INCOME TAXES | |||||||||||
The sources of (loss) income before income taxes are as follows (in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
United States | $ | (43,217 | ) | $ | (1,298 | ) | $ | 1,413 | ||||
Foreign (primarily the Netherlands) | 1,994 | 1,708 | 1,547 | |||||||||
(Loss) income before income taxes | $ | (41,223 | ) | $ | 410 | $ | 2,960 | |||||
Income tax (benefit) expense attributable to (loss) income before income taxes consists of the following (in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current: | ||||||||||||
Federal | $ | — | $ | — | $ | — | ||||||
State | 72 | 66 | 84 | |||||||||
Foreign | 515 | 328 | 272 | |||||||||
587 | 394 | 356 | ||||||||||
Deferred: | ||||||||||||
Federal | (874 | ) | 301 | 295 | ||||||||
State | (85 | ) | 35 | 33 | ||||||||
Foreign | 50 | 50 | 50 | |||||||||
(909 | ) | 386 | 378 | |||||||||
Income tax (benefit) expense | $ | (322 | ) | $ | 780 | $ | 734 | |||||
Income tax (benefit) expense attributable to (loss) income before income taxes differed from the amounts computed by applying the U.S. federal income tax rate of 34% to (loss) income before income taxes as a result of the following (in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Computed expected tax (benefit) expense | $ | (14,016 | ) | $ | 140 | $ | 1,006 | |||||
Increase (reduction) in income tax (benefit) expense resulting from: | ||||||||||||
State and local income taxes, net of federal impact | (1,211 | ) | (116 | ) | 94 | |||||||
Stock-based compensation | 46 | 169 | 112 | |||||||||
Nondeductible expenses | 2,652 | 55 | 138 | |||||||||
Change in valuation allowance | 13,540 | (332 | ) | (1,241 | ) | |||||||
Release of valuation allowance related to AngioScore acquisition | (1,266 | ) | — | — | ||||||||
Change in deferred rate | 193 | 5 | 165 | |||||||||
Foreign operations | 179 | (49 | ) | (44 | ) | |||||||
Research and development credit | (439 | ) | 908 | 504 | ||||||||
Income tax (benefit) expense | $ | (322 | ) | $ | 780 | $ | 734 | |||||
Included in the $0.3 million income tax benefit for the year ended December 31, 2014 is a $1.3 million tax benefit from the release of valuation allowance of the Company’s DTAs. In connection with the acquisition of AngioScore during the year ended December 31, 2014, DTLs were established for the book-tax basis differences related to the non-goodwill intangible assets. These DTLs exceeded the acquired DTAs by $1.3 million. The net DTLs from this acquisition create an additional source of taxable income to realize a portion of the Company’s DTAs for which a valuation allowance is no longer needed. The impact on the Company’s DTAs and DTLs caused by the acquisition is recorded outside of acquisition accounting. Accordingly, the valuation allowance on a portion of the Company’s DTAs was released and resulted in an income tax benefit of $1.3 million. See Note 2, “Business Combinations.” | ||||||||||||
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets (liabilities) at December 31 are as follows (in thousands): | ||||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets: | ||||||||||||
Current: | ||||||||||||
Accrued liabilities | $ | 1,438 | $ | 916 | ||||||||
Deferred revenue | 544 | 541 | ||||||||||
Inventories | 1,938 | 638 | ||||||||||
3,920 | 2,095 | |||||||||||
Less valuation allowance | (1,720 | ) | (1,650 | ) | ||||||||
Total deferred tax assets, current portion, net | 2,200 | 445 | ||||||||||
Noncurrent: | ||||||||||||
Net operating loss carryforwards-U.S. and related states | 55,002 | 7,801 | ||||||||||
Charitable contribution carryover | 212 | 47 | ||||||||||
Capital loss carryover | 403 | 412 | ||||||||||
Amortization of intangibles | 1,031 | 1,224 | ||||||||||
Stock compensation expense related to nonqualified stock options | 2,434 | 1,377 | ||||||||||
Research and experimentation tax credit | 4,689 | 966 | ||||||||||
Alternative minimum tax credit | 298 | 298 | ||||||||||
Accrued liabilities | 457 | 535 | ||||||||||
64,526 | 12,660 | |||||||||||
Less valuation allowance | (28,095 | ) | (10,144 | ) | ||||||||
Deferred tax assets, noncurrent portion, net | 36,431 | 2,516 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Noncurrent | ||||||||||||
Equipment | (2,192 | ) | (2,663 | ) | ||||||||
Long-lived intangible assets | (37,916 | ) | (1,218 | ) | ||||||||
Total deferred tax liabilities, noncurrent portion, net | $ | (3,677 | ) | $ | (1,365 | ) | ||||||
An income tax benefit of $3.0 million, $1.4 million and $0.7 million related to the exercise of stock options for the years ended December 31, 2014, 2013 and 2012, respectively, will be added to other paid-in capital if, and when, the tax benefit is realized. | ||||||||||||
As of December 31, 2014, the Company has unrestricted U.S. federal net operating loss carryforwards of approximately $156.0 million to reduce future taxable income, which expire primarily from 2018 through 2034. The Company also has capital loss carryforwards of $1.1 million that expire in 2015 and 2016. | ||||||||||||
An alternative minimum tax credit carryforward of approximately $0.3 million is available to offset future regular tax liabilities and has no expiration date. For alternative minimum tax purposes, the Company has unrestricted net operating loss carryforwards for U.S. federal income tax purposes of approximately $155.2 million. | ||||||||||||
The Company also has research and experimentation tax credit carryforwards for federal income tax purposes at December 31, 2014 of approximately $3.1 million, which are available to reduce future federal income taxes, if any, and expire at varying dates through 2034. | ||||||||||||
The Company intends to indefinitely reinvest earnings from subsidiaries treated as foreign corporations for U.S. tax purposes. As of December 31, 2014, the Company had a cumulative undistributed deficit related to its foreign subsidiaries of approximately $20 million. | ||||||||||||
In assessing the realizability of deferred tax assets, management considers whether it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. The Company’s ability to realize the benefit of its deferred tax assets in future periods will depend on the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the projected future taxable income and tax planning strategies in making this assessment. Due to the Company’s history of losses and its planned near-term investments in its growth, the Company continues to record a valuation allowance against substantially all of its deferred tax assets that are in excess of its deferred tax liabilities. The Company will continue to assess the need for a valuation allowance in future periods and does not expect to reduce the valuation allowance against its deferred tax assets until it has a sufficient historical trend of taxable income and can predict future income with a higher degree of certainty. In the event there is a change in circumstances in the future which would affect the utilization of the Company’s deferred tax assets, the tax provision in that period would be adjusted by the amount of the assets then deemed to be realizable. | ||||||||||||
As of December 31, 2014, the Company classified approximately $0.1 million of its tax credit carryforwards as uncertain. This amount is reported as a reduction of the Company’s deferred tax asset. In 2014, the Company reduced its uncertain tax positions by $0.2 million for tax credits that are no longer subject to the uncertain tax position. The Company classifies interest and penalties expense related to income tax liabilities as an income tax expense. There are no significant interest and penalties recognized in the consolidated statements of operations and accumulated comprehensive income (loss) or on the consolidated balance sheet. | ||||||||||||
The Company files tax returns in the U.S., Puerto Rico, Canada, and in each of the European countries in which the Company has subsidiaries. The tax years 2010 through 2014 remain open to examination by the major taxing jurisdictions to which the Company is subject. The IRS completed a corporate income tax audit during 2012 for the Company’s 2009 and 2010 tax years. No adjustments were made as a result of the audit. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES | |||
Litigation | ||||
The Company is from time to time subject to, and is presently involved in, various pending or threatened legal actions and proceedings, including those that arise in the ordinary course of its business. Such matters are subject to many uncertainties and to outcomes the financial impacts of which are not predictable with assurance and that may not be known for extended periods of time. The Company records a liability in its consolidated financial statements for costs related to claims, settlements, and judgments where management has assessed that a loss is probable and an amount can be reasonably estimated. The Company’s significant legal proceedings are discussed below. The costs associated with such proceedings or other legal proceedings that may be commenced could have a material adverse effect on the Company’s future consolidated results of operations, financial position, or cash flows. | ||||
Trireme Patent Infringement and Breach of Fiduciary Duty | ||||
In July 2012, AngioScore sued Trireme Medical, Inc. (Trireme), Eitan Konstantino, Quattro Vascular Pte, Ltd., and QT Vascular Ltd., in the U.S. District Court for the Northern District of California, alleging patent infringement (the Northern District of California Action). In this action, AngioScore seeks injunctive relief and damages. The defendants filed counterclaims against AngioScore for unfair competition, interference with business relationships, false advertising, and defamation, and in August 2014, those counterclaims were dismissed. In May 2014, AngioScore moved to amend its complaint (i) to allege that Trireme’s Chief Executive Officer, Eitan Konstantino, who is a former founder, officer, and member of the board of directors of AngioScore, breached his fiduciary duties to AngioScore by developing the Chocolate balloon catheter while he served as a member of the AngioScore board of directors, and (ii) to add claims against the other defendants for aiding and abetting that breach. The case is scheduled for trial in April 2015. On January 14, 2015, the parties filed their respective summary judgment motions and motions to exclude certain testimony. Oral argument on these motions is scheduled for March 3, 2015. | ||||
Trireme Inventorship | ||||
On June 25, 2014, Trireme sued AngioScore in the U.S. District Court for the Northern District of California seeking to change the inventorship of certain patents owned by AngioScore. Trireme alleges that an Israeli physician, Chaim Lotan, should be named as a co-inventor on three patents owned by AngioScore. Dr. Lotan allegedly assigned any rights he may have had in the three patents to Trireme. AngioScore moved to dismiss this litigation on January 29, 2015, asserting that Dr. Lotan previously assigned any inventorship rights he may have had in these patents to AngioScore in 2003. Oral argument on this motion is scheduled for March 5, 2015. AngioScore intends to vigorously defend against Trireme’s claims. | ||||
Konstantino Indemnification and Advancement of Fees | ||||
On May 15, 2014, AngioScore sued Eitan Konstantino in the Superior Court for the County of Alameda, State of California, seeking a declaratory judgment that AngioScore owes no indemnification obligations to Konstantino under his indemnification agreement with AngioScore (the AngioScore Indemnification Agreement) resulting from AngioScore’s claim that Konstantino breached his fiduciary duties to AngioScore while serving as a member of the board of directors of AngioScore (the Alameda Action). In November 2014, the Court stayed the Alameda Action pending the outcome of the Northern District of California Action asserting patent infringement and breach of fiduciary duty claims against Konstantino and the corporate defendants. | ||||
On May 21, 2014, Konstantino sued AngioScore in the Delaware Court of Chancery (the Delaware Action) seeking a ruling that, under the AngioScore Indemnification Agreement, AngioScore must indemnify and advance Konstantino’s attorneys’ fees and costs related to (1) the defense of the breach of fiduciary duty claims asserted against him in the Northern District of California Action; (2) the defense of the Alameda Action; and (3) Konstantino’s pursuit of the Delaware Action for advancement of fees. On June 4, 2014, AngioScore filed counter-claims against Konstantino for violating the AngioScore Indemnification Agreement, which requires, in part, that he cooperate in identifying other sources of advancement, and AngioScore filed a third-party complaint against Trireme, Quattro Vascular, and QT Vascular seeking contribution from the defendant companies for amounts advanced to Konstantino. Konstantino filed a motion for summary judgment that he is entitled to advancement from AngioScore and, on August 15, 2014, the court granted the motion. On September 4, 2014, AngioScore filed amended counter-claims and an amended third-party complaint that included additional defendant Trireme Singapore. The defendant companies filed a motion to dismiss the amended third-party complaint on the grounds that it fails to state a claim and the court does not have jurisdiction over three of the defendant companies that were incorporated in Singapore. The motion to dismiss is being briefed and oral argument is scheduled for April 7, 2015. | ||||
The Company cannot at this time determine the likelihood of any outcome and has no amounts accrued for these matters. | ||||
Other | ||||
The Company is involved in other legal proceedings in the normal course of business and does not expect them to have a material adverse effect on its business. | ||||
Leases | ||||
The Company leases office space, furniture, vehicles and equipment under noncancelable operating leases with terms that expire at various dates through 2023. | ||||
The future minimum payments under noncancelable operating leases as of December 31, 2014 were as follows (in thousands): | ||||
Operating | ||||
Leases | ||||
Years ending December 31: | ||||
2015 | $ | 1,791 | ||
2016 | 1,694 | |||
2017 | 1,640 | |||
2018 | 1,529 | |||
2019 | 1,509 | |||
Thereafter | 6,105 | |||
$ | 14,268 | |||
Rent expense under operating leases totaled approximately $2.7 million, $2.4 million, and $1.9 million for the years ended December 31, 2014, 2013, and 2012, respectively. |
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data (Unaudited) (Notes) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Selected Quarterly Financial Information [Abstract] | ||||||||||||||||||||||||||||||||
Selected Quarterly Financial Data (Unaudited) | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | |||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Q1(1) | Q2(1)(2) | Q3(1)(3) | Q4(1)(4) | Q1(5) | Q2(5) | Q3(5) | Q4(6) | |||||||||||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||||||||||||||||
Net sales | $ | 39,614 | $ | 43,555 | $ | 58,786 | $ | 62,959 | $ | 37,675 | $ | 39,453 | $ | 39,763 | $ | 41,920 | ||||||||||||||||
Gross profit | 29,280 | 33,049 | 43,086 | 46,040 | 27,356 | 28,828 | 29,710 | 31,561 | ||||||||||||||||||||||||
Net (loss) income | (5,661 | ) | (5,299 | ) | (13,944 | ) | (15,997 | ) | (959 | ) | (728 | ) | 434 | 883 | ||||||||||||||||||
Net (loss) income per share (7): | ||||||||||||||||||||||||||||||||
Basic | $ | (0.14 | ) | $ | (0.13 | ) | $ | (0.33 | ) | $ | (0.38 | ) | $ | (0.03 | ) | $ | (0.02 | ) | $ | 0.01 | $ | 0.02 | ||||||||||
Diluted | $ | (0.14 | ) | $ | (0.13 | ) | $ | (0.33 | ) | $ | (0.38 | ) | $ | (0.03 | ) | $ | (0.02 | ) | $ | 0.01 | $ | 0.02 | ||||||||||
-1 | During the first, second, third and fourth quarters of 2014, the Company incurred $0.3 million, $4.0 million, $3.8 million and $7.8 million, respectively, in transaction and integration costs related to the acquisition of AngioScore. See Note 2, “Business Combinations.” | |||||||||||||||||||||||||||||||
-2 | Net loss and net loss per share have been adjusted from the previously filed Form 10-Q as of June 30, 2014 to reflect adjustments made during the measurement period to provisional amounts recognized for the AngioScore acquisition at the acquisition date. The Company recorded a deferred tax benefit of $1.3 million related to a partial release of valuation allowance related to the AngioScore acquisition. See Note 14, “Income Taxes.” | |||||||||||||||||||||||||||||||
-3 | During the third quarter of 2014, the Company recorded an impairment charge of $4.1 million and a reduction of $1.1 million to the contingent consideration liability related to certain assets and liabilities recorded from the acquisition of Upstream in 2013. See Note 6, “Goodwill and Other Intangible Assets.” | |||||||||||||||||||||||||||||||
-4 | During the fourth quarter of 2014, the Company incurred $1.5 million in transaction costs related to the acquisition of the Stellarex DCB Assets. See Note 17, “Subsequent Event.” | |||||||||||||||||||||||||||||||
-5 | During each of the first, second and third quarters of 2013, the Company incurred $0.5 million of medical device excise tax (which commenced January 1, 2013), $0.2 million in contingent consideration expense, and $0.2 million in acquisition-related intangible asset amortization, respectively. | |||||||||||||||||||||||||||||||
-6 | During the fourth quarter of 2013, the Company incurred $0.6 million of medical device excise tax expense, $0.2 million in contingent consideration expense, and $0.2 million in acquisition-related intangible asset amortization. In addition, during the fourth quarter of 2013, the Company recorded an intangible asset impairment of $4.5 million and an adjustment to the contingent consideration liability of $5.2 million related to certain assets and liabilities recorded from the acquisition of Upstream in 2013. See Note 6, “Goodwill and Other Intangible Assets.” | |||||||||||||||||||||||||||||||
-7 | The sum of the quarterly net income per share amounts may not total to each full year amount because these computations are made independently for each quarter and for the full year, and take into account the weighted average number of common stock equivalent shares outstanding for each period. |
Subsequent_Event_Notes
Subsequent Event (Notes) | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Event | SUBSEQUENT EVENT |
On January 27, 2015, the Company acquired certain assets related to Covidien LP’s Stellarex (Stellarex) over-the-wire percutaneous transluminal angioplasty balloon catheter with a paclitaxel coated balloon (DCB Assets), pursuant to an Asset Purchase Agreement, dated as of October 31, 2014 (Stellarex Purchase Agreement) with Covidien LP (Stellarex Acquisition). The DCB Assets include, among other things, the intellectual property, machinery and equipment, and inventories of finished products and raw materials used in connection with the Stellarex catheter. | |
Under the terms of the Stellarex Purchase Agreement, the Company paid Covidien $30 million in cash and Covidien will retain certain liabilities relating to milestone payments that may become due in connection with the development of the DCB Assets. | |
On January 27, 2015, the Company and Covidien entered into a Product Supply Agreement under which Covidien will supply certain angioplasty balloon catheter products to the Company, subject to the terms and conditions set forth in the Product Supply Agreement. The Product Supply Agreement has an initial one-year term with an option to renew the agreement for an additional year under certain circumstances. In addition, the Company and Covidien have entered into a Transition Services Agreement, pursuant to which Covidien will provide certain transition services to the Company for up to 24 months, subject to extension under certain circumstances. | |
The Company expects the Stellarex Acquisition will be accounted for as a business combination and the Company will record the assets acquired at their respective fair values as of January 27, 2015. |
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts (Notes) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ||||||||||||||||||||
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||||
Additions | ||||||||||||||||||||
Description | Balance at | Charged | Charged | Deductions(2) | Balance at | |||||||||||||||
Beginning | (Credited) to | (Credited) to | End of Year | |||||||||||||||||
of Year | Revenue, Costs | Other Accounts - describe (1) | ||||||||||||||||||
or Expenses | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Year ended December 31, 2014: | ||||||||||||||||||||
Allowance for doubtful accounts and sales returns | $ | 782 | $ | 2,271 | $ | — | $ | 1,438 | $ | 1,615 | ||||||||||
Inventory reserves | 918 | 426 | 1,267 | 192 | 2,419 | |||||||||||||||
Valuation allowance for deferred tax assets | 11,794 | 13,540 | 5,747 | 1,266 | 29,815 | |||||||||||||||
Year ended December 31, 2013: | ||||||||||||||||||||
Allowance for doubtful accounts and sales returns | $ | 589 | $ | 1,153 | $ | — | $ | 960 | $ | 782 | ||||||||||
Inventory reserves | 914 | 213 | — | 209 | 918 | |||||||||||||||
Valuation allowance for deferred tax assets | 12,781 | (987 | ) | — | — | 11,794 | ||||||||||||||
Year ended December 31, 2012: | ||||||||||||||||||||
Allowance for doubtful accounts and sales returns | $ | 602 | $ | 959 | $ | — | $ | 972 | $ | 589 | ||||||||||
Inventory reserves | 925 | 156 | — | 167 | 914 | |||||||||||||||
Valuation allowance for deferred tax assets | 14,022 | (1,241 | ) | — | — | 12,781 | ||||||||||||||
-1 | As part of purchase accounting at the AngioScore acquisition date, inventory reserves were established for potentially expired or obsolete AngioScore inventory, and a valuation allowance was established against a portion of AngioScore deferred tax assets related to net operating losses. | |||||||||||||||||||
-2 | Deductions represent receivables written-off and credits granted for customer returns, inventory write-offs, and reductions in the valuation allowance for deferred tax assets due primarily to the use or expiration of net operating losses. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Use of Estimates | Use of Estimates | |
Preparing the consolidated financial statements in conformity with accounting principles generally accepted in the United States (U.S. GAAP) requires management of the Company to make several estimates and assumptions relating to the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Significant items subject to such estimates and assumptions include the carrying amount of property and equipment, goodwill and intangible assets; valuation allowances for receivables, inventories and deferred income tax assets; contingent consideration liabilities for acquisitions; stock-based compensation expense; estimated clinical trial expenses; accrued costs for incurred but not reported claims under partially self-insured employee health benefit programs; and loss contingencies, including those related to litigation. Actual results could differ from those estimates. | ||
Cash and Cash Equivalents | Cash and Cash Equivalents | |
The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. Cash equivalents of approximately $86.4 million and $101.2 million at December 31, 2014 and 2013, respectively, consisted primarily of money market accounts. At times, the Company maintains deposits in financial institutions in excess of federally insured limits. | ||
Financial Instruments | Financial Instruments | |
Financial instruments included in our financial statements are comprised of cash and cash equivalents, trade accounts receivable, accounts payable, certain accrued liabilities, convertible senior notes (Notes) and contingent consideration. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their fair values due to the short-term nature of those instruments. The fair value of our Notes is influenced by interest rates, our stock price, and stock price volatility, which is determined by market trading. | ||
We recognize contingent purchase price consideration at fair value at acquisition date. The acquisition date fair value is measured based on the consideration expected to be transferred (probability-weighted), discounted to present value. The discount rate used is determined at the time of measurement in accordance with accepted valuation methods. The fair value of the contingent milestone consideration is remeasured at the estimated fair value at each reporting period. Therefore, any changes in the fair value will impact our earnings in such reporting period, thereby resulting in potential variability in our earnings until such contingencies are resolved. | ||
Fair-Value Measurements | ||
Fair value is defined as an exit price that would be received from the sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Authoritative guidance establishes a three-level hierarchy for disclosure that is based on the extent and level of judgment used to estimate the fair value of assets and liabilities. | ||
• | Level 1 Inputs - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. | |
• | Level 2 Inputs - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. | |
• | Level 3 Inputs - Unobservable inputs for the asset or liability. | |
As of December 31, 2014, the estimated fair value of the Notes was $289.9 million and was determined based on quoted market prices in a secondary market, which is considered a Level 2 Input measurement. See further discussion of the Notes in Note 3, “Convertible Notes.” | ||
Contingent consideration arrangements obligate us to pay former shareholders of an acquired entity if specified future events occur or conditions are met such as the achievement of certain technological milestones or the achievement of targeted revenue milestones. We measure such liabilities using Level 3 unobservable inputs, applying the income approach, such as the discounted cash flow technique, or the probability-weighted scenario method. We use various key assumptions, such as the probability of achievement of the agreed milestones and the discount rate, in our determination of the fair value of contingent consideration. We monitor the fair value of the contingent consideration and the subsequent revisions are reflected in our consolidated statements of operations. For a further discussion on the key assumptions used in determining the fair value and the change in the estimated fair value of the contingent consideration during the years ended December 31, 2014 and 2013, refer to Note 2, “Business Combinations.” | ||
Trade Accounts Receivable | Trade Accounts Receivable | |
Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company’s best estimate of probable credit losses in the Company’s existing accounts receivable. The Company determines the allowance for doubtful accounts based upon an aging of accounts receivable, historical experience and management judgment. Larger or past due accounts receivable balances are reviewed individually for collectibility. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is remote. | ||
Inventory | Inventory | |
Inventory is recorded at the lower of cost or market. Cost is determined using the first-in, first-out method. The Company calculates inventory reserves for estimated obsolescence or excess inventory based on historical usage and sales, and assumptions about future demand for and utilization of its products, and these reserves create a new cost basis for the subsequent accounting of the inventory. These estimates for excess and obsolete inventory are reviewed and updated on a quarterly basis. Increases in the inventory reserves result in a corresponding expense, which is recorded to cost of goods sold. | ||
Property and Equipment | Property and Equipment | |
Property and equipment are recorded at cost. Repairs and maintenance costs are expensed as incurred. | ||
Depreciation is calculated using the straight-line method over the estimated useful lives of the assets of three to five years for manufacturing equipment, equipment held for rental or loan, computers, and furniture and fixtures. The building the Company owns, which had been a manufacturing facility and now houses certain general operations, is depreciated using the straight-line method over its estimated useful life of 20 years. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or estimated useful life of the asset. | ||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets | |
Goodwill represents the excess of costs over the fair value of the identifiable net assets of businesses acquired. Goodwill and intangible assets acquired in a business combination and determined to have indefinite useful lives are not amortized, but instead are tested for impairment at least annually and whenever events or circumstances indicate the carrying amount of the asset may not be recoverable. In evaluating goodwill and indefinite-lived intangible assets, the Company performs an assessment of qualitative factors to determine if goodwill might be impaired and whether it is necessary to perform the two-step goodwill impairment test. The Company conducts its annual impairment test as of December 31 of each year. See further discussion in Note 6, “Goodwill and Other Intangible Assets.” | ||
Long-Lived Assets and In Process Research and Development | Long-Lived Assets | |
The Company reviews long-lived assets and certain identifiable intangibles for impairment whenever events or circumstances indicate the carrying amount of an asset may not be recoverable. The carrying value of a long-lived asset is considered impaired when the expected undiscounted cash flows from such asset are separately identifiable and are less than the carrying value. Fair value is determined by reference to quoted market prices, if available, or the utilization of certain valuation techniques such as cash flows discounted at a rate commensurate with the risk involved. Assets to be disposed of are reported at the lower of the carrying amount or fair value, less selling costs. In 2014, the Company recorded an intangible asset impairment charge for intangible assets acquired in 2013, as further discussed in Note 6, “Goodwill and Other Intangible Assets.” | ||
Intangible assets with finite lives are amortized over their respective estimated useful lives to their estimated residual values, and reviewed for impairment whenever events or circumstances indicate their carrying amount may not be recoverable. Intangible assets with finite lives, which consist primarily of technology intangible assets, customer relationships, trademarks, and trade names, are amortized using the straight-line method over periods that currently range from two to ten years. | ||
In Process Research and Development | ||
The Company defines In Process Research and Development (IPR&D) as the value of technology acquired for which the related products have not yet reached technological feasibility and have no future alternative use. The primary basis for determining the technological feasibility of these projects is obtaining regulatory approval to market the underlying products in an applicable geographic region. IPR&D acquired in a business combination requires the estimated fair value of IPR&D to be capitalized as an indefinite-lived intangible asset until completion or abandonment of the IPR&D project. Upon completion of the development project, the IPR&D is amortized over its estimated useful life. If the IPR&D projects are abandoned, the related IPR&D assets would be written off. The estimated fair value of IPR&D is determined using an income approach model. | ||
At December 31, 2014, IPR&D represented an estimate of the fair value of in-process technology acquired in the AngioScore acquisition. See further discussion in Note 2, “Business Combinations.” | ||
Revenue Recognition | Revenue Recognition | |
The Company recognizes revenue when all of the following criteria are met: persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collectibility is reasonably assured. Revenue from the sale of the Company’s disposable products is recognized when products are shipped to the customer and title transfers. In general, customers do not have a right of return for credit or refund. However, the Company allows returns under certain circumstances and records an allowance for sales returns based upon an analysis of revenue transactions and historical experience of sales returns. Write-offs to customer account balances for product returns are charged against the allowance for sales returns. Revenue from the sale of CVX-300 laser systems is recognized after completion of contractual obligations, which generally include delivery and installation of the systems. The Company’s field service engineers are responsible for installation of each laser system. The Company generally provides a one-year warranty on laser sales, which includes parts, labor and replacement gas. Upon expiration of the warranty period, the Company offers similar service to its customers under annual service contracts or on a fee-for-service basis. Revenue from fee-for-service arrangements is recognized upon completion of the related service. | ||
The Company accounts for service provided during the one-year warranty or service contract period as a separate unit of accounting. As such, the fair value of this service is deferred and recognized as revenue on a straight-line basis over the related warranty or service contract term, and warranty and service costs are expensed in the period they are incurred. Revenue allocated to the laser system is recognized upon completion of all contractual obligations in the sales contract, which generally include delivery and installation of the laser system. Revenue recognized associated with service performed during the warranty period totaled $0.7 million, $0.7 million and $0.4 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||
The Company offers four laser system placement programs, which are described below, in addition to the sale of laser systems: | ||
Straight rental program. The Company offers a straight monthly rental program for laser systems, and customers pay rent of $2,500 to $3,500 per month under this program. Rental revenue is invoiced and recognized monthly. The laser system is transferred to the equipment held for rental or loan account upon shipment, and depreciation expense is included in cost of revenue based upon the five-year expected life of the laser system. Costs to maintain the equipment are expensed as incurred. As of December 31, 2014, 145 laser systems were in place under the straight rental program as compared to 152 at December 31, 2013. | ||
Volume-based rental programs. Rental revenue under these programs varies on a sliding scale depending on the customer’s catheter purchases (either unit or dollar volume) each month. Rental revenue is invoiced and recognized monthly. The laser system is transferred to the equipment held for rental or loan account upon shipment, and depreciation expense is included in cost of revenue based upon the five-year expected life of the laser system. Costs to maintain the equipment are expensed as incurred. As of December 31, 2014, 418 laser systems were in place under the volume based programs as compared to 288 at December 31, 2013. | ||
Capital included rental program. Under this program, the customer agrees to a catheter price list that includes a per-unit surcharge covering the cost of the laser system. Customers are expected, but not required, to make minimum purchases of catheters at regular intervals, and the Company reserves the right to require the customer to return the laser system if the customer does not make minimum purchases of catheters. The Company recognizes the total surcharge as rental revenue upon shipment of the catheters, believing it to be the best measurement of revenue associated with the customer’s use of the laser system. The laser system is transferred to the equipment held for rental or loan account upon shipment, and depreciation expense is included in cost of revenue based upon the five-year expected life of the laser system. Costs to maintain the equipment are expensed as incurred. As of December 31, 2014, 135 laser systems were in place under the capital included rental program as compared to 131 at December 31, 2013. | ||
Evaluation program. The Company loans laser systems to institutions for use over a short period, usually three months. The loan of the equipment is to create awareness of the Company’s products and allows users to assess their therapeutic capabilities. While no revenue is earned or recognized in connection with the placement of a loaned laser, sales of disposable products result from the laser placement. The laser system is transferred to the equipment held for rental or loan account upon shipment and depreciation expense is recorded within selling, general and administrative expense based upon the five-year expected life of the laser system. Costs to maintain the equipment are expensed as incurred. As of December 31, 2014, 53 laser systems were in place under the evaluation program as compared to 111 at December 31, 2013. | ||
The Company sells to end-users in the United States and internationally as well as to certain international distributors. Sales to international distributors represented approximately 6% of the Company’s total revenue in 2014. Distributor agreements are in place with each distributor, which outline the significant terms of the transactions between the distributor and the Company. The terms and conditions of sales to the Company’s international distributors do not differ materially from the terms and conditions of sales to its domestic and international end-user customers. Sales to distributors are recognized either at shipment or a later date in accordance with the agreed upon contract terms with distributors, provided that the Company has received an order, the price is fixed or determinable, collectibility of the resulting receivable is reasonably assured, all contractual obligations have been met and the Company can reasonably estimate returns. The Company provides products to its distributors at agreed wholesale prices and typically does not provide any special right of return or exchange, discounts, significant sales incentives, price protection or stock rotation rights to any of its distributors. | ||
Deferred Revenue | Deferred Revenue | |
Deferred revenue was $1.9 million and $1.8 million at December 31, 2014 and 2013, respectively. These amounts primarily relate to payments in advance for various product maintenance contracts in which revenue is initially deferred and recognized over the life of the contract, which is generally one year, and to deferred revenue associated with service provided to customers during the warranty period after the sale of equipment. | ||
Medical Device Excise Tax | Medical Device Excise Tax | |
The Patient Protection and Affordable Care Act of 2010 imposes a medical device excise tax on medical device manufacturers on their sales in the U.S. of certain devices, which was effective January 1, 2013. The excise tax is 2.3% of the taxable base and applies to a substantial majority of the Company’s U.S. sales. For the years ended December 31, 2014 and 2013, the Company incurred $2.8 million and $2.1 million of excise tax, respectively, which is recorded in the consolidated statements of operations and comprehensive income (loss) as an operating expense under the caption “Medical device excise tax.” | ||
Stock-Based Compensation | Stock-Based Compensation | |
The Company measures all employee stock-based compensation awards using a fair value method and records such expense in its consolidated financial statements. The estimated value of the portion of the award that is ultimately expected to vest, taking into consideration estimated forfeitures based on the Company’s historical forfeiture rate, is recognized as expense over the requisite service periods in the Company’s consolidated statements of operations and comprehensive income (loss). The Company generally estimates the fair value of stock option awards on the date of grant using the Black-Scholes option pricing model. For certain options, which contained vesting provisions that included a share price trigger, the Company estimated the fair value of the options using a trinomial lattice model. With respect to performance stock units (PSUs), the number of shares that vest and are issued to the recipient is based upon the Company’s performance as measured against specified targets over a three-year period. Although there is no guarantee that performance targets will be achieved, the Company estimates the fair value of the PSUs based on its closing stock price at the time of grant and its estimate of achieving such performance targets. Over the performance period, the number of shares of common stock that will ultimately vest and be issued and the related compensation expense for PSUs is adjusted based upon the Company’s estimate of achieving such performance targets, and compensation expense is recognized based on these estimates. See further discussion and disclosures in Note 9, “Stock-based Compensation and Employee Benefit Plans. | ||
Research, Development and Other Technology | Research, Development and Other Technology | |
Research, development and other technology costs are expensed as incurred and totaled $28.7 million, $22.1 million, and $16.8 million for the years ended December 31, 2014, 2013, and 2012, respectively. In addition to product development costs, research, development and other technology costs include royalty expenses that the Company pays to license certain intellectual property incorporated in the Company’s products. Royalty expenses totaled $2.7 million, $2.0 million, and $1.8 million for the years ended December 31, 2014, 2013, and 2012, respectively. | ||
Clinical trial costs. The Company sponsors clinical trials intended to obtain the necessary clinical data required to obtain approval from the U.S. Food and Drug Administration (FDA) and foreign regulatory agencies to market new applications of its technology. Costs associated with these clinical trials are also included within research, development and other technology costs and totaled $4.1 million, $3.8 million, and $4.2 million for the years ended December 31, 2014, 2013, and 2012, respectively. | ||
In certain cases, substantial portions of the Company’s clinical trials are performed by third-party clinical research organizations (CROs). These CROs generally bill monthly for services performed and also bill based upon milestone achievement. For example, the Company has contracted with a CRO to provide clinical trial services for the EXCITE ISR study. The Company accrues for services as provided, when services are performed before milestone payments are made. If the Company prepays CRO fees or milestone payments, the Company records the prepayment as a prepaid asset and amortizes the asset into research, development and other technology expense over the period of time the contracted services are performed based upon the number of patients enrolled, “patient months” incurred and the duration of the study. The Company monitors patient enrollment, the progress of clinical studies and related activities through internal reviews of data reported to the Company by the CROs and correspondence with the CROs. The Company periodically evaluates its estimates to determine if adjustments are necessary or appropriate based on information it receives. | ||
Foreign Currency Translation | Foreign Currency Translation | |
The Company’s reporting currency is the U.S. dollar. Certain transactions of the Company and its subsidiaries are denominated in currencies other than the U.S. dollar. The functional currency of the Company’s foreign operations generally is the applicable local currency. Assets and liabilities are translated to U.S. dollars at year-end spot rates while income and expense accounts are translated at average exchange rates during the year. Adjustments resulting from these translations are reflected in stockholders’ equity as accumulated other comprehensive income (loss). The cash flows from operations in foreign countries are translated at the average rate in the consolidated statements of cash flows. Changes in exchange rates for foreign currency denoted receivables and payables result in transaction gains and losses that are reflected in the consolidated statements of operations and comprehensive income (loss) each reporting period. | ||
Advertising Costs | Advertising Costs | |
The Company expenses advertising costs as incurred. Advertising costs of approximately $2.0 million, $1.9 million and $1.0 million were expensed for the years ended December 31, 2014, 2013 and 2012, respectively. | ||
Medical Self-Insurance Costs | Medical Self-insurance Costs | |
The Company is partially self-insured for claims relating to employee medical and dental benefit programs. The medical self-insurance program is administered by a third party and contains stop-loss provisions on both an individual claim basis and in the aggregate. The Company records claims incurred as an expense each period, including an estimate of claims incurred but not yet reported, which is revised quarterly. The Company uses claims data and historical experience, as applicable, to estimate liabilities. | ||
Income Taxes | Income Taxes | |
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, operating losses and research and development and alternative minimum tax credit carryforwards. | ||
A valuation allowance is required to the extent it is more-likely-than-not that a deferred tax asset will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date. | ||
The Company recognizes the financial statement effects of a tax position when it is more-likely-than-not, based on technical merits, that the position will be sustained upon examination. The Company classifies penalty and interest expense related to income tax liabilities as an income tax expense. There are no significant interest and penalties recognized in the consolidated statements of operations and comprehensive income (loss) or on the consolidated balance sheet. See further discussion and disclosures in Note 14, “Income Taxes.” | ||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers, which will replace most existing revenue recognition guidance in U.S. GAAP. The core principle of ASU 2014-09 is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. To achieve this core principle, ASU 2014-09 includes provisions within a five-step model that includes identifying the contract with a customer, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations, and recognizing revenue when (or as) an entity satisfies a performance obligation. ASU 2014-09 requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. ASU 2014-09 will be effective for the Company beginning January 1, 2017, and allows for both retrospective and prospective methods of adoption. The Company is in the process of determining the method of adoption and assessing the impact of ASU 2014-09 on its results of operations, financial position, and consolidated financial statements. | ||
The Company has considered all other recently issued accounting pronouncements and does not believe they are of significance, or potential significance, to the Company. |
Business_Combinations_Tables
Business Combinations (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Business Combinations [Abstract] | ||||||||
Schedule of Business Acquisitions, by Acquisition | The components of the aggregate purchase price for the acquisition were as follows (in thousands): | |||||||
Cash, including working capital adjustment | $ | 233,978 | ||||||
Fair value of contingent consideration | 25,886 | |||||||
Total purchase price | $ | 259,864 | ||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the allocation of assets acquired and liabilities assumed as of the Acquisition Date (in thousands): | |||||||
Allocation of purchase price | Amortization period (in years) | |||||||
Accounts receivable | $ | 8,461 | ||||||
Inventories | 14,294 | |||||||
Prepaids and other current assets | 411 | |||||||
Property and equipment, net | 712 | |||||||
Other long term assets | 30 | |||||||
Total tangible assets acquired | 23,908 | |||||||
Less: liabilities assumed | 5,060 | |||||||
Less: deferred tax liabilities | 1,516 | |||||||
Net tangible assets acquired | $ | 17,332 | ||||||
Intangible assets: | ||||||||
Technology | 73,510 | 10 | ||||||
Customer relationships | 23,320 | 10 | ||||||
Trademark and trade names | 4,380 | 6 | ||||||
In-process research and development (IPR&D) | 3,750 | |||||||
Distributor relationships | 1,940 | 2 | ||||||
Non-compete agreements | 580 | 2 | ||||||
Goodwill | 135,052 | |||||||
Total purchase price | $ | 259,864 | ||||||
Business Acquisition, Pro Forma Information | The pro forma information does not include any adjustment for potential revenue enhancements, cost synergies or other operating efficiencies that could result from the acquisition. | |||||||
Year Ended December 31, | ||||||||
(in thousands) | 2014 | 2013 | ||||||
Revenue | $ | 235,318 | $ | 213,474 | ||||
Net loss | (49,445 | ) | (30,544 | ) | ||||
Net loss per share | $ | (1.19 | ) | $ | (0.78 | ) |
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Schedule of Inventory, Current | Inventories, net, consisted of the following (in thousands): | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Raw materials | $ | 9,012 | $ | 4,132 | ||||
Work in process | 3,745 | 1,696 | ||||||
Finished goods | 12,689 | 3,648 | ||||||
$ | 25,446 | $ | 9,476 | |||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant and Equipment | Property and equipment, net, consisted of the following (in thousands): | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Equipment held for rental or loan | $ | 47,313 | $ | 42,949 | ||||
Manufacturing equipment and computers | 29,692 | 24,827 | ||||||
Leasehold improvements | 6,730 | 5,697 | ||||||
Furniture and fixtures | 3,473 | 2,446 | ||||||
Building and improvements | 1,288 | 1,276 | ||||||
Land | 270 | 270 | ||||||
Less: accumulated depreciation and amortization | (54,947 | ) | (49,184 | ) | ||||
Total property and equipment, net | $ | 33,819 | $ | 28,281 | ||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||
Schedule of Goodwill | The change in the carrying amount of goodwill by reporting unit for the year ended December 31, 2014 was as follows (in thousands): | |||||||||
U.S. Medical | International Medical | Total | ||||||||
Balance as of December 31, 2013 | $ | 8,165 | $ | 6,681 | $ | 14,846 | ||||
Goodwill acquired during the year (Note 2) | 120,196 | 14,856 | 135,052 | |||||||
Balance as of December 31, 2014 | $ | 128,361 | $ | 21,537 | $ | 149,898 | ||||
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | Intangible Assets. Acquired intangible assets as of December 31, 2014 and 2013 consisted of the following (in thousands): | |||||||||
December 31, 2014 | December 31, 2013 | |||||||||
Acquired as part of AngioScore acquisition (Note 2): | ||||||||||
Technology | $ | 73,510 | $ | — | ||||||
Customer relationships | 23,320 | — | ||||||||
Trademark and trade names | 4,380 | — | ||||||||
IPR&D | 3,750 | — | ||||||||
Distributor relationships | 1,940 | — | ||||||||
Non-compete agreements | 580 | — | ||||||||
Acquired as part of Upstream acquisition (Note 2) | ||||||||||
Technology | 2,172 | 6,310 | ||||||||
Non-compete agreement | 200 | 200 | ||||||||
Patents | 530 | 530 | ||||||||
Less: accumulated amortization | (7,766 | ) | (1,431 | ) | ||||||
$ | 102,616 | $ | 5,609 | |||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of December 31, 2014, estimated future amortization expense for intangible assets subject to amortization was as follows (in thousands): | |||||||||
Amortization Expense | ||||||||||
Years ending December 31: | ||||||||||
2015 | $ | 12,027 | ||||||||
2016 | 11,397 | |||||||||
2017 | 10,678 | |||||||||
2018 | 10,413 | |||||||||
2019 | 10,413 | |||||||||
Thereafter | 43,938 | |||||||||
$ | 98,866 | |||||||||
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accrued Liabilities [Abstract] | ||||||||
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following (in thousands): | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Accrued payroll and employee-related expenses | $ | 21,483 | $ | 11,808 | ||||
Accrued legal costs | 4,793 | 134 | ||||||
Accrued sales, income and excise taxes | 1,847 | 1,659 | ||||||
Accrued clinical study expense | 1,358 | 872 | ||||||
Deferred rent | 1,214 | 1,204 | ||||||
Accrued royalties | 841 | 571 | ||||||
Accrued interest on convertible notes | 503 | — | ||||||
Contingent consideration, current portion | 143 | 500 | ||||||
Other accrued expenses | 4,092 | 3,286 | ||||||
Total accrued liabilities | 36,274 | 20,034 | ||||||
Less: long-term portion | (1,222 | ) | (1,215 | ) | ||||
Accrued liabilities, current portion | $ | 35,052 | $ | 18,819 | ||||
Stock_Based_Compensation_and_E1
Stock Based Compensation and Employee Benefit Plans (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following is a summary of the assumptions used for the stock options granted during the years ended December 31, 2014, 2013 and 2012 using the Black-Scholes pricing model: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Expected life (years) | 5.8 | 5.8 | 5.9 | ||||||||||
Risk-free interest rate | 1.65 | % | 1.37 | % | 0.75 | % | |||||||
Expected volatility | 61.44 | % | 65.54 | % | 66.35 | % | |||||||
Expected dividend yield | — | — | — | ||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes stock option activity during the year ended December 31, 2014: | ||||||||||||
Shares | Weighted | Weighted Avg. | Aggregate Intrinsic | ||||||||||
Average | Remaining | Value | |||||||||||
Exercise Price | Contractual Term | ||||||||||||
(In Years) | |||||||||||||
Options outstanding at January 1, 2014 | 3,153,234 | $ | 9.72 | ||||||||||
Granted | 321,397 | 24.29 | |||||||||||
Exercised | (672,739 | ) | 6.81 | ||||||||||
Canceled | (102,981 | ) | 17.56 | ||||||||||
Options outstanding at December 31, 2014 | 2,698,911 | $ | 11.88 | 6.81 | $ | 61,265,166 | |||||||
Options exercisable at December 31, 2014 | 1,607,979 | $ | 8.47 | 5.76 | $ | 41,983,321 | |||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The following table summarizes restricted stock award activity during the year ended December 31, 2014: | ||||||||||||
Shares | Weighted Average | ||||||||||||
Grant Date Fair Value | |||||||||||||
Restricted stock awards outstanding at January 1, 2014 | 22,190 | $ | 18.93 | ||||||||||
Awarded | 26,802 | 22.39 | |||||||||||
Vested | (22,190 | ) | 18.93 | ||||||||||
Awards outstanding at December 31, 2014 | 26,802 | $ | 22.39 | ||||||||||
The following table summarizes restricted stock unit activity during the year ended December 31, 2014: | |||||||||||||
Shares | Weighted Average | ||||||||||||
Grant Date Fair Value | |||||||||||||
Restricted stock units outstanding at January 1, 2014 | 158,622 | $ | 12.56 | ||||||||||
Awarded | 93,331 | 23.89 | |||||||||||
Vested/Released | (58,824 | ) | 9.98 | ||||||||||
Forfeited | (11,113 | ) | 10.27 | ||||||||||
Restricted stock units outstanding at December 31, 2014 | 182,016 | $ | 19.35 | ||||||||||
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Performance-Based Units, Vested and Expected to Vest | The following table summarizes PSU activity during the year ended December 31, 2014: | ||||||||||||
Shares | Weighted Average Grant Date Fair Value | ||||||||||||
Performance stock units outstanding at January 1, 2014 | — | $ | — | ||||||||||
Awarded (at target performance) | 500,985 | 23.43 | |||||||||||
Forfeited | (13,827 | ) | — | ||||||||||
Performance stock units outstanding at December 31, 2014 | 487,158 | $ | 23.43 | ||||||||||
Net_Loss_Income_Per_Share_Tabl
Net (Loss) Income Per Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Stock options, restricted stock, PSUs, and shares issuable upon the conversion of the Notes outstanding at December 31, 2014 and 2013, which are excluded from the computation of diluted net loss per share for those years, are shown in the table below: | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Options to purchase common stock | 2,698,911 | 3,153,234 | ||||||||||
Non-vested restricted stock | 208,818 | 180,812 | ||||||||||
Non-vested performance stock units | 487,158 | — | ||||||||||
Shares issuable upon conversion of the Notes | 7,337,459 | — | ||||||||||
Potentially dilutive common shares | 10,732,346 | 3,334,046 | ||||||||||
Schedule of Earnings Per Share, Basic and Diluted | A summary of the net (loss) income per share calculation is shown below for the years indicated: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Net (loss) income (in thousands) | $ | (40,901 | ) | $ | (370 | ) | $ | 2,226 | ||||
Common shares outstanding: | ||||||||||||
Historical common shares outstanding at beginning of year (excluding shares of unvested restricted stock) | 41,208,096 | 34,839,131 | 33,883,378 | |||||||||
Weighted average common shares issued | 471,273 | 4,101,413 | 493,469 | |||||||||
Weighted average common shares outstanding-basic | 41,679,369 | 38,940,544 | 34,376,847 | |||||||||
Effect of dilution from stock options | — | — | 1,390,123 | |||||||||
Weighted average common shares outstanding-diluted | 41,679,369 | 38,940,544 | 35,766,970 | |||||||||
Net (loss) income per share, basic | $ | (0.98 | ) | $ | (0.01 | ) | $ | 0.06 | ||||
Net (loss) income per share, diluted | $ | (0.98 | ) | $ | (0.01 | ) | $ | 0.06 | ||||
Segment_and_Geographic_Reporti1
Segment and Geographic Reporting (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Schedule of Revenue by Reporting Segments | Summary financial information relating to reportable segment operations is shown below. Intersegment transfers as well as intercompany assets and liabilities are excluded from the information provided (in thousands): | |||||||||||
For the Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Revenue: | ||||||||||||
U.S. Medical: | ||||||||||||
Disposable products | $ | 155,107 | $ | 114,976 | $ | 103,218 | ||||||
Service and other, net of allowance for sales returns | 9,334 | 9,833 | 9,081 | |||||||||
Equipment | 2,958 | 5,317 | 5,137 | |||||||||
Subtotal | 167,399 | 130,126 | 117,436 | |||||||||
International Medical: | ||||||||||||
Disposable products | 29,703 | 23,143 | 19,304 | |||||||||
Service and other, net of allowance for sales returns | 2,156 | 1,579 | 1,358 | |||||||||
Equipment | 5,656 | 3,963 | 2,187 | |||||||||
Subtotal | 37,515 | 28,685 | 22,849 | |||||||||
Total revenue | $ | 204,914 | $ | 158,811 | $ | 140,285 | ||||||
Schedule of Segment Reporting Information, by Segment | ||||||||||||
U.S. Medical | International | Total | ||||||||||
Medical | ||||||||||||
2014 | ||||||||||||
Interest income | $ | 44 | $ | 2 | $ | 46 | ||||||
Interest expense | 4,098 | 10 | 4,108 | |||||||||
Depreciation and amortization expense | 15,205 | 1,608 | 16,813 | |||||||||
Income tax (benefit) expense | (887 | ) | 565 | (322 | ) | |||||||
Segment operating (loss) income | (39,267 | ) | 2,317 | (36,950 | ) | |||||||
Segment net (loss) income | (42,628 | ) | 1,727 | (40,901 | ) | |||||||
Capital expenditures | 6,532 | 190 | 6,722 | |||||||||
Total assets | $ | 432,151 | $ | 34,799 | $ | 466,950 | ||||||
U.S. Medical | International | Total | ||||||||||
Medical | ||||||||||||
2013 | ||||||||||||
Interest income | $ | 61 | $ | — | $ | 61 | ||||||
Interest expense | 58 | — | 58 | |||||||||
Depreciation and amortization expense | 9,217 | 1,393 | 10,610 | |||||||||
Income tax expense | 402 | 378 | 780 | |||||||||
Segment operating (loss) income | (1,276 | ) | 1,670 | 394 | ||||||||
Segment net (loss) income | (1,666 | ) | 1,296 | (370 | ) | |||||||
Capital expenditures | 4,406 | 214 | 4,620 | |||||||||
Total assets | $ | 198,639 | $ | 18,518 | $ | 217,157 | ||||||
U.S. Medical | International | Total | ||||||||||
Medical | ||||||||||||
2012 | ||||||||||||
Interest income | $ | 70 | $ | 1 | $ | 71 | ||||||
Interest expense | 63 | — | 63 | |||||||||
Depreciation and amortization expense | 8,705 | 1,178 | 9,883 | |||||||||
Income tax expense | 414 | 320 | 734 | |||||||||
Segment operating income | 1,037 | 1,910 | 2,947 | |||||||||
Segment net income | 656 | 1,570 | 2,226 | |||||||||
Capital expenditures | 3,063 | 16 | 3,079 | |||||||||
Total assets | $ | 95,181 | $ | 15,588 | $ | 110,769 | ||||||
Revenue from External Customers by Products and Services | Revenue by Product Line | |||||||||||
For the Year Ended December 31, | ||||||||||||
(in thousands) | 2014 | 2013 | 2012 | |||||||||
Revenue | ||||||||||||
Disposable products revenue: | ||||||||||||
Vascular intervention | $ | 118,148 | $ | 75,601 | $ | 67,336 | ||||||
Lead management | 66,662 | 62,518 | 55,186 | |||||||||
Total disposable products revenue | 184,810 | 138,119 | 122,522 | |||||||||
Service and other, net of allowance for sales returns | 11,490 | 11,412 | 10,439 | |||||||||
Equipment | 8,614 | 9,280 | 7,324 | |||||||||
Total revenue | $ | 204,914 | $ | 158,811 | $ | 140,285 | ||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Sources of Income (Loss) Before Income Taxes | The sources of (loss) income before income taxes are as follows (in thousands): | |||||||||||
2014 | 2013 | 2012 | ||||||||||
United States | $ | (43,217 | ) | $ | (1,298 | ) | $ | 1,413 | ||||
Foreign (primarily the Netherlands) | 1,994 | 1,708 | 1,547 | |||||||||
(Loss) income before income taxes | $ | (41,223 | ) | $ | 410 | $ | 2,960 | |||||
Schedule of Components of Income Tax Expense (Benefit) | Income tax (benefit) expense attributable to (loss) income before income taxes consists of the following (in thousands): | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Current: | ||||||||||||
Federal | $ | — | $ | — | $ | — | ||||||
State | 72 | 66 | 84 | |||||||||
Foreign | 515 | 328 | 272 | |||||||||
587 | 394 | 356 | ||||||||||
Deferred: | ||||||||||||
Federal | (874 | ) | 301 | 295 | ||||||||
State | (85 | ) | 35 | 33 | ||||||||
Foreign | 50 | 50 | 50 | |||||||||
(909 | ) | 386 | 378 | |||||||||
Income tax (benefit) expense | $ | (322 | ) | $ | 780 | $ | 734 | |||||
Schedule of Effective Income Tax Rate Reconciliation | Income tax (benefit) expense attributable to (loss) income before income taxes differed from the amounts computed by applying the U.S. federal income tax rate of 34% to (loss) income before income taxes as a result of the following (in thousands): | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Computed expected tax (benefit) expense | $ | (14,016 | ) | $ | 140 | $ | 1,006 | |||||
Increase (reduction) in income tax (benefit) expense resulting from: | ||||||||||||
State and local income taxes, net of federal impact | (1,211 | ) | (116 | ) | 94 | |||||||
Stock-based compensation | 46 | 169 | 112 | |||||||||
Nondeductible expenses | 2,652 | 55 | 138 | |||||||||
Change in valuation allowance | 13,540 | (332 | ) | (1,241 | ) | |||||||
Release of valuation allowance related to AngioScore acquisition | (1,266 | ) | — | — | ||||||||
Change in deferred rate | 193 | 5 | 165 | |||||||||
Foreign operations | 179 | (49 | ) | (44 | ) | |||||||
Research and development credit | (439 | ) | 908 | 504 | ||||||||
Income tax (benefit) expense | $ | (322 | ) | $ | 780 | $ | 734 | |||||
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets (liabilities) at December 31 are as follows (in thousands): | |||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets: | ||||||||||||
Current: | ||||||||||||
Accrued liabilities | $ | 1,438 | $ | 916 | ||||||||
Deferred revenue | 544 | 541 | ||||||||||
Inventories | 1,938 | 638 | ||||||||||
3,920 | 2,095 | |||||||||||
Less valuation allowance | (1,720 | ) | (1,650 | ) | ||||||||
Total deferred tax assets, current portion, net | 2,200 | 445 | ||||||||||
Noncurrent: | ||||||||||||
Net operating loss carryforwards-U.S. and related states | 55,002 | 7,801 | ||||||||||
Charitable contribution carryover | 212 | 47 | ||||||||||
Capital loss carryover | 403 | 412 | ||||||||||
Amortization of intangibles | 1,031 | 1,224 | ||||||||||
Stock compensation expense related to nonqualified stock options | 2,434 | 1,377 | ||||||||||
Research and experimentation tax credit | 4,689 | 966 | ||||||||||
Alternative minimum tax credit | 298 | 298 | ||||||||||
Accrued liabilities | 457 | 535 | ||||||||||
64,526 | 12,660 | |||||||||||
Less valuation allowance | (28,095 | ) | (10,144 | ) | ||||||||
Deferred tax assets, noncurrent portion, net | 36,431 | 2,516 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Noncurrent | ||||||||||||
Equipment | (2,192 | ) | (2,663 | ) | ||||||||
Long-lived intangible assets | (37,916 | ) | (1,218 | ) | ||||||||
Total deferred tax liabilities, noncurrent portion, net | $ | (3,677 | ) | $ | (1,365 | ) |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Schedule of Future Minimum Rental Payments for Operating Leases | The future minimum payments under noncancelable operating leases as of December 31, 2014 were as follows (in thousands): | |||
Operating | ||||
Leases | ||||
Years ending December 31: | ||||
2015 | $ | 1,791 | ||
2016 | 1,694 | |||
2017 | 1,640 | |||
2018 | 1,529 | |||
2019 | 1,509 | |||
Thereafter | 6,105 | |||
$ | 14,268 | |||
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Selected Quarterly Financial Information [Abstract] | ||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Q1(1) | Q2(1)(2) | Q3(1)(3) | Q4(1)(4) | Q1(5) | Q2(5) | Q3(5) | Q4(6) | |||||||||||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||||||||||||||||
Net sales | $ | 39,614 | $ | 43,555 | $ | 58,786 | $ | 62,959 | $ | 37,675 | $ | 39,453 | $ | 39,763 | $ | 41,920 | ||||||||||||||||
Gross profit | 29,280 | 33,049 | 43,086 | 46,040 | 27,356 | 28,828 | 29,710 | 31,561 | ||||||||||||||||||||||||
Net (loss) income | (5,661 | ) | (5,299 | ) | (13,944 | ) | (15,997 | ) | (959 | ) | (728 | ) | 434 | 883 | ||||||||||||||||||
Net (loss) income per share (7): | ||||||||||||||||||||||||||||||||
Basic | $ | (0.14 | ) | $ | (0.13 | ) | $ | (0.33 | ) | $ | (0.38 | ) | $ | (0.03 | ) | $ | (0.02 | ) | $ | 0.01 | $ | 0.02 | ||||||||||
Diluted | $ | (0.14 | ) | $ | (0.13 | ) | $ | (0.33 | ) | $ | (0.38 | ) | $ | (0.03 | ) | $ | (0.02 | ) | $ | 0.01 | $ | 0.02 | ||||||||||
-1 | During the first, second, third and fourth quarters of 2014, the Company incurred $0.3 million, $4.0 million, $3.8 million and $7.8 million, respectively, in transaction and integration costs related to the acquisition of AngioScore. See Note 2, “Business Combinations.” | |||||||||||||||||||||||||||||||
-2 | Net loss and net loss per share have been adjusted from the previously filed Form 10-Q as of June 30, 2014 to reflect adjustments made during the measurement period to provisional amounts recognized for the AngioScore acquisition at the acquisition date. The Company recorded a deferred tax benefit of $1.3 million related to a partial release of valuation allowance related to the AngioScore acquisition. See Note 14, “Income Taxes.” | |||||||||||||||||||||||||||||||
-3 | During the third quarter of 2014, the Company recorded an impairment charge of $4.1 million and a reduction of $1.1 million to the contingent consideration liability related to certain assets and liabilities recorded from the acquisition of Upstream in 2013. See Note 6, “Goodwill and Other Intangible Assets.” | |||||||||||||||||||||||||||||||
-4 | During the fourth quarter of 2014, the Company incurred $1.5 million in transaction costs related to the acquisition of the Stellarex DCB Assets. See Note 17, “Subsequent Event.” | |||||||||||||||||||||||||||||||
-5 | During each of the first, second and third quarters of 2013, the Company incurred $0.5 million of medical device excise tax (which commenced January 1, 2013), $0.2 million in contingent consideration expense, and $0.2 million in acquisition-related intangible asset amortization, respectively. | |||||||||||||||||||||||||||||||
-6 | During the fourth quarter of 2013, the Company incurred $0.6 million of medical device excise tax expense, $0.2 million in contingent consideration expense, and $0.2 million in acquisition-related intangible asset amortization. In addition, during the fourth quarter of 2013, the Company recorded an intangible asset impairment of $4.5 million and an adjustment to the contingent consideration liability of $5.2 million related to certain assets and liabilities recorded from the acquisition of Upstream in 2013. See Note 6, “Goodwill and Other Intangible Assets.” | |||||||||||||||||||||||||||||||
-7 | The sum of the quarterly net income per share amounts may not total to each full year amount because these computations are made independently for each quarter and for the full year, and take into account the weighted average number of common stock equivalent shares outstanding for each period. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Accounting Policies [Abstract] | |||||||
Cash equivalents, at carrying value | $101,200,000 | $86,400,000 | $101,200,000 | ||||
Estimated fair value of the Notes | 289,900,000 | ||||||
Recognition of deferred revenue | 700,000 | 700,000 | 400,000 | ||||
Revenue from international distributors, percentage | 6.00% | ||||||
Deferred revenue | 1,819,000 | 1,894,000 | 1,819,000 | ||||
Medical device excise tax, percent of taxable base | 2.30% | ||||||
Medical device excise tax | 600,000 | 500,000 | 500,000 | 500,000 | 2,834,000 | 2,138,000 | 0 |
Research, development and other technology | 28,675,000 | 22,080,000 | 16,846,000 | ||||
Royalty expense | 2,700,000 | 2,000,000 | 1,800,000 | ||||
Clinical trial costs | 4,100,000 | 3,800,000 | 4,200,000 | ||||
Advertising expense | $2,000,000 | $1,900,000 | $1,000,000 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Property, Plant and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Building | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 20 years |
Minimum | Manufacturing Equipment, Equipment Held for Rental or Loan, Computers, and Furniture and Fixtures | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Maximum | Manufacturing Equipment, Equipment Held for Rental or Loan, Computers, and Furniture and Fixtures | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Long-Lived Assets) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets straight-line method amortization period | 2 years |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets straight-line method amortization period | 10 years |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Rental Programs) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
placement_programs | laser_system | |
Product Information [Line Items] | ||
Number of Placement Programs | 4 | |
Expected life of laser systems | 5 years | |
Straight rental program | ||
Product Information [Line Items] | ||
Number of laser systems | 145 | 152 |
Volume based rental program | ||
Product Information [Line Items] | ||
Number of laser systems | 418 | 288 |
Capital included rental program | ||
Product Information [Line Items] | ||
Number of laser systems | 135 | 131 |
Evaluation program | ||
Product Information [Line Items] | ||
Number of laser systems | 53 | 111 |
Minimum | Straight rental program | ||
Product Information [Line Items] | ||
Revenues | 2,500 | |
Minimum | Evaluation program | ||
Product Information [Line Items] | ||
Loan period of laser systems | 3 months | |
Maximum | Straight rental program | ||
Product Information [Line Items] | ||
Revenues | 3,500 | |
Share-based Compensation Award, Tranche One | Performance Stock Units | ||
Product Information [Line Items] | ||
Award Vesting Period | 3 years |
Business_Combinations_Narrativ
Business Combinations (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2014 | Jan. 31, 2013 | Jun. 03, 2014 | |||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Cash, including working capital adjustment | $233,978,000 | $6,500,000 | $7,727,000 | |||||||||||||||||||
Convertible senior notes | 230,000,000 | 0 | 230,000,000 | 0 | ||||||||||||||||||
Amortization of acquired inventory step-up | 2,074,000 | 0 | 0 | |||||||||||||||||||
Acquisition transaction and integration costs | 17,288,000 | 0 | 311,000 | |||||||||||||||||||
Operating Loss Carryforwards | 156,000,000 | 156,000,000 | ||||||||||||||||||||
Release of valuation allowance related to AngioScore acquisition | -1,266,000 | 0 | 0 | |||||||||||||||||||
Deferred Federal Income Tax Expense (Benefit) | -874,000 | 301,000 | 295,000 | |||||||||||||||||||
Revenue | 62,959,000 | [1],[2] | 58,786,000 | [1],[3] | 43,555,000 | [1],[4] | 39,614,000 | [1] | 41,920,000 | [5] | 39,763,000 | [6] | 39,453,000 | [6] | 37,675,000 | [6] | 204,914,000 | 158,811,000 | 140,285,000 | |||
Goodwill, Acquired During Period | 135,052,000 | |||||||||||||||||||||
Contingent consideration, liability | 28,551,000 | 1,352,000 | 28,551,000 | 1,352,000 | ||||||||||||||||||
Intangible asset impairment | 4,500,000 | 4,138,000 | 4,490,000 | 0 | ||||||||||||||||||
Change in fair value of contingent consideration liability | -5,200,000 | -1,064,000 | -5,165,000 | 0 | ||||||||||||||||||
AngioScore | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Cash, including working capital adjustment | 230,000,000 | |||||||||||||||||||||
Cash Payments Sales Ratio Multiple | 2 | |||||||||||||||||||||
Sales Ratio Multiple, Threshold Percentage | 10.00% | |||||||||||||||||||||
Fair Value Step Up Adjustment of Acquired Inventory | 2,300,000 | |||||||||||||||||||||
Amortization of acquired inventory step-up | 2,074,000 | |||||||||||||||||||||
Acquisition transaction and integration costs | 7,800,000 | 3,800,000 | 4,000,000 | 300,000 | 15,800,000 | |||||||||||||||||
Deferred Federal Income Tax Expense (Benefit) | -1,300,000 | |||||||||||||||||||||
Revenue | 29,626,000 | |||||||||||||||||||||
Upstream | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Cash, including working capital adjustment | 6,500,000 | |||||||||||||||||||||
Discount rate | 15.00% | |||||||||||||||||||||
Total purchase price cap | 35,500,000 | |||||||||||||||||||||
Goodwill, Acquired During Period | 1,600,000 | |||||||||||||||||||||
Contingent consideration, liability | 100,000 | 100,000 | 6,200,000 | |||||||||||||||||||
Revenue Milestone | AngioScore | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Range of future contingent consideration outcomes, high | 50,000,000 | 50,000,000 | ||||||||||||||||||||
European CE Mark Approval for Coronary Arteries | AngioScore | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Range of future contingent consideration outcomes, high | 5,000,000 | 5,000,000 | ||||||||||||||||||||
European CE Mark Approval for Peripheral Arteries | AngioScore | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Range of future contingent consideration outcomes, high | 5,000,000 | 5,000,000 | ||||||||||||||||||||
US Investigational Device Exemption | AngioScore | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Range of future contingent consideration outcomes, high | 15,000,000 | 15,000,000 | ||||||||||||||||||||
Convertible Debt | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Convertible senior notes | 230,000,000 | |||||||||||||||||||||
Stated Interest Rate | 2.63% | |||||||||||||||||||||
Minimum | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Discount rate | 9.00% | |||||||||||||||||||||
Maximum | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Discount rate | 19.00% | |||||||||||||||||||||
Domestic Tax Authority | AngioScore | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Operating Loss Carryforwards | 94,000,000 | 94,000,000 | ||||||||||||||||||||
State and Local Jurisdiction | AngioScore | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Operating Loss Carryforwards | $90,000,000 | $90,000,000 | ||||||||||||||||||||
[1] | During the first, second, third and fourth quarters of 2014, the Company incurred $0.3 million, $4.0 million, $3.8 million and $7.8 million, respectively, in transaction and integration costs related to the acquisition of AngioScore. See Note 2, “Business Combinations.†| |||||||||||||||||||||
[2] | During the fourth quarter of 2014, the Company incurred $1.5 million in transaction costs related to the acquisition of the Stellarex DCB Assets. See Note 17, “Subsequent Event.†| |||||||||||||||||||||
[3] | During the third quarter of 2014, the Company recorded an impairment charge of $4.1 million and a reduction of $1.1 million to the contingent consideration liability related to certain assets and liabilities recorded from the acquisition of Upstream in 2013. See Note 6, “Goodwill and Other Intangible Assets.†| |||||||||||||||||||||
[4] | Net loss and net loss per share have been adjusted from the previously filed Form 10-Q as of June 30, 2014 to reflect adjustments made during the measurement period to provisional amounts recognized for the AngioScore acquisition at the acquisition date. The Company recorded a deferred tax benefit of $1.3 million related to a partial release of valuation allowance related to the AngioScore acquisition. See Note 14, “Income Taxes.†| |||||||||||||||||||||
[5] | During the fourth quarter of 2013, the Company incurred $0.6 million of medical device excise tax expense, $0.2 million in contingent consideration expense, and $0.2 million in acquisition-related intangible asset amortization. In addition, during the fourth quarter of 2013, the Company recorded an intangible asset impairment of $4.5 million and an adjustment to the contingent consideration liability of $5.2 million related to certain assets and liabilities recorded from the acquisition of Upstream in 2013. See Note 6, “Goodwill and Other Intangible Assets. | |||||||||||||||||||||
[6] | During each of the first, second and third quarters of 2013, the Company incurred $0.5 million of medical device excise tax (which commenced January 1, 2013), $0.2 million in contingent consideration expense, and $0.2 million in acquisition-related intangible asset amortization, respectively. |
Business_Combinations_Componen
Business Combinations (Components of Purchase Price) (Details) (AngioScore, USD $) | 0 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
AngioScore | |
Business Acquisition [Line Items] | |
Cash, including working capital adjustment | $233,978 |
Fair value of contingent consideration | 25,886 |
Total purchase price | $259,864 |
Business_Combinations_Recogniz
Business Combinations (Recognized Identified Assets Acquired and Liabilities Assumed) (Details) (USD $) | 0 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ||||
Goodwill | $149,898 | $14,846 | ||
AngioScore | ||||
Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ||||
Accounts receivable | 8,461 | 8,461 | ||
Inventories | 14,294 | 14,294 | ||
Prepaids and other current assets | 411 | 411 | ||
Property and equipment, net | 712 | 712 | ||
Other long term assets | 30 | 30 | ||
Total tangible assets acquired | 23,908 | 23,908 | ||
Less: liabilities assumed | 5,060 | 5,060 | ||
Less: deferred tax liabilities | 1,516 | 1,516 | ||
Net tangible assets acquired | 17,332 | 17,332 | ||
Goodwill | 135,052 | 135,052 | ||
Total purchase price | 259,864 | 259,864 | ||
AngioScore | Technology | ||||
Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ||||
Amortizable intangible assets | 73,510 | 73,510 | 73,510 | 0 |
Amortization period (in years) | 10 years | |||
AngioScore | Customer relationships | ||||
Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ||||
Amortizable intangible assets | 23,320 | 23,320 | 23,320 | 0 |
Amortization period (in years) | 10 years | |||
AngioScore | Trademark and trade names | ||||
Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ||||
Amortizable intangible assets | 4,380 | 4,380 | 4,380 | 0 |
Amortization period (in years) | 6 years | |||
AngioScore | IPR&D | ||||
Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ||||
Indefinite-Lived Intangible Assets | 3,750 | 3,750 | 3,750 | 0 |
AngioScore | Distributor relationships | ||||
Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ||||
Amortizable intangible assets | 1,940 | 1,940 | 1,940 | 0 |
Amortization period (in years) | 2 years | |||
AngioScore | Non-compete agreements | ||||
Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ||||
Amortizable intangible assets | $580 | $580 | $580 | $0 |
Amortization period (in years) | 2 years |
Business_Combinations_Pro_Form
Business Combinations (Pro Forma Revenue) (Details) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Business Combinations [Abstract] | ||
Revenue | $235,318 | $213,474 |
Net loss | ($49,445) | ($30,544) |
Net loss per share (usd per share) | ($1.19) | ($0.78) |
Convertible_Senior_Notes_Detai
Convertible Senior Notes (Details) (USD $) | 0 Months Ended | 12 Months Ended | |
Jun. 03, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | |||
Convertible senior notes | 230,000,000 | $0 | |
Convertible Debt | |||
Debt Instrument [Line Items] | |||
Convertible senior notes | 230,000,000 | ||
Stated Interest Rate | 2.63% | ||
Conversion Ratio | 31.902 | ||
Conversion Price | $31.35 | ||
Threshold Percentage of Stock Price Trigger | 130.00% | ||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 100.00% | ||
Proceeds from Debt, Net of Issuance Costs | 222,500,000 | ||
Debt Issuance Cost | $7,500,000 | ||
Debt Instrument, Convertible, Remaining Discount Amortization Period | 7 years |
Inventories_Inventories_Detail
Inventories (Inventories) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Raw materials | $9,012 | $4,132 |
Work in process | 3,745 | 1,696 |
Finished goods | 12,689 | 3,648 |
Total inventories, net | $25,446 | $9,476 |
Inventories_Inventory_Acquired
Inventories (Inventory Acquired) (Details) (AngioScore, USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
AngioScore | |
Business Acquisition [Line Items] | |
Inventory acquired in acquisition | $14,294 |
Property_and_Equipment_Propert
Property and Equipment (Property and Equipment) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Property, Plant and Equipment [Line Items] | |||
Less: accumulated depreciation and amortization | ($54,947,000) | ($49,184,000) | |
Total property and equipment | 33,819,000 | 28,281,000 | |
Depreciation expense | 9,500,000 | 8,800,000 | 8,900,000 |
Software amortization expense | 900,000 | 900,000 | 900,000 |
Equipment Held for Rental or Loan | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 47,313,000 | 42,949,000 | |
Manufacturing Equipment and Computers | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 29,692,000 | 24,827,000 | |
Leasehold Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 6,730,000 | 5,697,000 | |
Furniture and Fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 3,473,000 | 2,446,000 | |
Building and Building Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 1,288,000 | 1,276,000 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $270,000 | $270,000 |
Property_and_Equipment_Propert1
Property and Equipment (Property and Equipment Acquired) (Details) (AngioScore, USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
AngioScore | |
Business Acquisition [Line Items] | |
Property and equipment, acquired, net | $712 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Schedule of Goodwill) (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Goodwill [Roll Forward] | |
Balance as of December 31, 2013 | $14,846 |
Goodwill acquired during the year (Note 2) | 135,052 |
Balance as of December 31, 2014 | 149,898 |
U.S. Medical | |
Goodwill [Roll Forward] | |
Balance as of December 31, 2013 | 8,165 |
Goodwill acquired during the year (Note 2) | 120,196 |
Balance as of December 31, 2014 | 128,361 |
International Medical | |
Goodwill [Roll Forward] | |
Balance as of December 31, 2013 | 6,681 |
Goodwill acquired during the year (Note 2) | 14,856 |
Balance as of December 31, 2014 | $21,537 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Acquired Intangible Assets) (Details) (USD $) | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Accumulated amortization | ($7,766) | ($1,431) | |
Other intangible assets, net | 102,616 | 5,609 | |
Patents | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Patents, Gross | 530 | 530 | |
AngioScore | Technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Acquired amortizable intangible assets | 73,510 | 73,510 | 0 |
AngioScore | Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Acquired amortizable intangible assets | 23,320 | 23,320 | 0 |
AngioScore | Trademark and trade names | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Acquired amortizable intangible assets | 4,380 | 4,380 | 0 |
AngioScore | IPR&D | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-Lived Intangible Assets | 3,750 | 3,750 | 0 |
AngioScore | Distributor relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Acquired amortizable intangible assets | 1,940 | 1,940 | 0 |
AngioScore | Non-compete agreements | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Acquired amortizable intangible assets | 580 | 580 | 0 |
Upstream | Technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Acquired amortizable intangible assets | 2,172 | 6,310 | |
Upstream | Non-compete agreements | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Acquired amortizable intangible assets | $200 | $200 |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Business Acquisition [Line Items] | |||||||
Acquisition-related intangible asset impairment | $4,500 | $4,138 | $4,490 | $0 | |||
Change in fair value of contingent consideration liability | -5,200 | -1,064 | -5,165 | 0 | |||
Intangible asset amortization | 200 | 200 | 200 | 200 | 6,335 | 901 | 0 |
Other Intangible Assets | |||||||
Business Acquisition [Line Items] | |||||||
Intangible asset amortization | $91 | ||||||
Upstream | |||||||
Business Acquisition [Line Items] | |||||||
Number of Intangible Assets Acquired | 2 | ||||||
Discount rate for intangible assets | 27.00% |
Goodwill_and_Other_Intangible_5
Goodwill and Other Intangible Assets (Future Amortization Expense) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2015 | $12,027 |
2016 | 11,397 |
2017 | 10,678 |
2018 | 10,413 |
2019 | 10,413 |
Thereafter | 43,938 |
Total future amortization expense | $98,866 |
Accrued_Liabilities_Details
Accrued Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accrued Liabilities [Abstract] | ||
Accrued payroll and employee-related expenses | $21,483 | $11,808 |
Accrued legal costs | 4,793 | 134 |
Accrued sales, income and excise taxes | 1,847 | 1,659 |
Accrued clinical study expense | 1,358 | 872 |
Deferred rent | 1,214 | 1,204 |
Accrued royalties | 841 | 571 |
Accrued interest on convertible notes | 503 | 0 |
Contingent consideration, current portion | 143 | 500 |
Other accrued expenses | 4,092 | 3,286 |
Total accrued liabilities | 36,274 | 20,034 |
Less: long-term portion | -1,222 | -1,215 |
Accrued liabilities, current portion | $35,052 | $18,819 |
Common_Stock_Offering_Details
Common Stock Offering (Details) (USD $) | 0 Months Ended | 12 Months Ended | |||
1-May-13 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 1-May-13 | |
Equity [Abstract] | |||||
Issuance of common stock in secondary public offering, net of offering costs (shares) | 5,462,500 | ||||
Sale of Stock, Price Per Share | $18 | ||||
Underwriting Fees and Commissions, Per Share | $1.08 | ||||
Net Proceeds from Stock Offering | $0 | $92,034,000 | $0 | ||
Payments of Stock Issuance Costs | $400,000 |
Stock_Based_Compensation_and_E2
Stock Based Compensation and Employee Benefit Plans (Narrative) (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of Additional Shares Authorized | 2,900,000 | |||
Allocated Share-based Compensation Expense | $8,300,000 | $4,100,000 | $3,100,000 | |
Tax Benefit from Stock Options Exercised | 3,000,000 | 1,400,000 | 700,000 | |
Unrecognized compensation expense | 24,000,000 | |||
Weighted-average recognition period | 2 years 8 months 12 days | |||
Stock Purchase Period | 6 months | |||
Employer Discretionary Contribution Amount | 1,300,000 | 900,000 | 800,000 | |
Employer Matching Contribution, Percent | 50.00% | |||
Maximum Annual Contribution Per Employee, Percent | 6.00% | |||
Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Closing Stock Price | $34.58 | |||
Estimated Forfeiture Rate | 11.30% | |||
Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award Vesting Period | 4 years | |||
Award Expiration Period | 10 years | |||
Option Purchase Holding Period | 1 year | |||
Employee Stock Option | Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average grant date fair value | $13.59 | $10.80 | $6.17 | |
In-the-money Options Exercisable Amount | 1,600,000 | |||
Total intrinsic value of options exercised | 14,800,000 | 9,200,000 | 5,100,000 | |
Expected life (months) | 5 years 9 months 4 days | 5 years 10 months 2 days | 5 years 10 months 24 days | |
Spectranetics Corporation 2006 Incentive Award Plan | Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for future issuance | 3,500,000 | |||
Employee Stock Purchase Plan | Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for future issuance | 200,000 | |||
Allocated Share-based Compensation Expense | 800,000 | 400,000 | 300,000 | |
Number of shares authorized | 700,000 | |||
Maximum Number of Shares Per Employee | 2,500 | |||
Maximum Fair Value Per Employee | 25,000 | |||
Purchase Price of Common Stock, Percent | 85.00% | |||
Expected life (months) | 6 months | |||
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense | 10,500,000 | |||
Minimum | Performance Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Target Payout Opportunities, Percent | 0.00% | |||
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense | $36,800,000 | |||
Maximum | Performance Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Target Payout Opportunities, Percent | 250.00% | |||
Members of the Board of Directors | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award Vesting Period | 1 year | |||
Certain Officers | Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award Vesting Period | 4 years | |||
Share-based Compensation Award, Tranche One | Performance Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award Vesting Period | 3 years |
Stock_Based_Compensation_and_E3
Stock Based Compensation and Employee Benefit Plans (Summary of Assumptions Used) (Details) (Stock Options, Common Stock) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Options | Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life (years) | 5 years 9 months 4 days | 5 years 10 months 2 days | 5 years 10 months 24 days |
Risk-free interest rate | 1.65% | 1.37% | 0.75% |
Expected volatility | 61.44% | 65.54% | 66.35% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Stock_Based_Compensation_and_E4
Stock Based Compensation and Employee Benefit Plans (Weighted Average Grant Date Fair Value) (Details) (Common Stock, USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Common Stock | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Options outstanding at January 1, 2014 (shares) | 3,153,234 |
Granted (shares) | 321,397 |
Exercised (shares) | -672,739 |
Canceled (shares) | -102,981 |
Options outstanding at December 31, 2014 (shares) | 2,698,911 |
Options exercisable at December 31, 2014 (shares) | 1,607,979 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |
Options outstanding at January 1, 2014, Weighted Average Exercise Price (usd per share) | $9.72 |
Granted, Weighted Average Exercise Price (usd per share) | $24.29 |
Exercised, Weighted Average Exercise Price (usd per share) | $6.81 |
Canceled, Weighted Average Exercise Price (usd per share) | $17.56 |
Options outstanding at December 31, 2014, Weighted Average Exercise Price (usd per share) | $11.88 |
Options exercisable at December 31, 2013, Weighted Average Exercise Price (usd per share) | $8.47 |
Options outstanding at December 31, 2013, Weighted Average Remaining Contractual Term (In Years) | 6 years 9 months 22 days |
Options exercisable at December 31, 2013, Weighted Average Remaining Contractual Term (In Years) | 5 years 9 months 4 days |
Options outstanding at December 31, 2013, Aggregate Intrinsic Value | $61,265,166 |
Options exercisable at December 31, 2013, Aggregate Intrinsic Value | $41,983,321 |
Stock_Based_Compensation_and_E5
Stock Based Compensation and Employee Benefit Plans (Restricted Stock Award Activity) (Details) (Common Stock, USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Restricted Stock | |
Restricted Stock Unit, Number of Shares [Roll Forward] | |
Awards/units outstanding at January 1, 2014 | 22,190 |
Awarded | 26,802 |
Vested | -22,190 |
Awards/units outstanding at December 31, 2014 | 26,802 |
Restricted Stock Weighted Average Grant Date Fair Value [Abstract] | |
Awards/units outstanding at January 1, 2014, Weighted Average Grant Date Fair Value | $18.93 |
Awarded, Weighted Average Grant Date Fair Value | $22.39 |
Vested, Weighted Average Grant Date Fair Value | $18.93 |
Awards/units outstanding at December 31, 2014, Weighted Average Grant Date Fair Value | $22.39 |
Restricted Stock Units | |
Restricted Stock Unit, Number of Shares [Roll Forward] | |
Awards/units outstanding at January 1, 2014 | 158,622 |
Awarded | 93,331 |
Vested | -58,824 |
Forfeited | -11,113 |
Awards/units outstanding at December 31, 2014 | 182,016 |
Restricted Stock Weighted Average Grant Date Fair Value [Abstract] | |
Awards/units outstanding at January 1, 2014, Weighted Average Grant Date Fair Value | $12.56 |
Awarded, Weighted Average Grant Date Fair Value | $23.89 |
Vested, Weighted Average Grant Date Fair Value | $9.98 |
Forfeited, Weighted Average Grant Date Fair Value | $10.27 |
Awards/units outstanding at December 31, 2014, Weighted Average Grant Date Fair Value | $19.35 |
Performance Stock Units | |
Restricted Stock Unit, Number of Shares [Roll Forward] | |
Awards/units outstanding at January 1, 2014 | 0 |
Awarded | 500,985 |
Forfeited | -13,827 |
Awards/units outstanding at December 31, 2014 | 487,158 |
Restricted Stock Weighted Average Grant Date Fair Value [Abstract] | |
Awards/units outstanding at January 1, 2014, Weighted Average Grant Date Fair Value | $0 |
Awarded, Weighted Average Grant Date Fair Value | $23.43 |
Forfeited, Weighted Average Grant Date Fair Value | $0 |
Awards/units outstanding at December 31, 2014, Weighted Average Grant Date Fair Value | $23.43 |
Net_Loss_Income_Per_Share_Anti
Net (Loss) Income Per Share (Antidilutive Securities) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 10,732,346 | 3,334,046 | |
Options to purchase common stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,698,911 | 3,153,234 | 600,000 |
Restricted Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 208,818 | 180,812 | |
Non-vested performance stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 487,158 | 0 | |
Shares issuable upon conversion of the Notes | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 7,337,459 | 0 |
Net_Loss_Income_Per_Share_Earn
Net (Loss) Income Per Share (Earnings Per Share) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||
Net (loss) income | ($15,997) | [1],[2] | ($13,944) | [1],[3] | ($5,299) | [1],[4] | ($5,661) | [1] | $883 | [5] | $434 | [6] | ($728) | [6] | ($959) | [6] | ($40,901) | ($370) | $2,226 | |
Historical common shares outstanding at beginning of year (excluding shares of unvested restricted stock) | 41,208,096 | 41,208,096 | 34,839,131 | 33,883,378 | ||||||||||||||||
Weighted average common shares issued | 471,273 | 4,101,413 | 493,469 | |||||||||||||||||
Weighted average common shares outstanding-basic | 41,679,369 | 38,940,544 | 34,376,847 | |||||||||||||||||
Effect of dilution from stock options | 0 | 0 | 1,390,123 | |||||||||||||||||
Weighted average common shares outstanding-diluted | 41,679,369 | 38,940,544 | 35,766,970 | |||||||||||||||||
Net (loss) income per share, basic (usd per share) | ($0.38) | [1],[2],[7] | ($0.33) | [1],[3],[7] | ($0.13) | [1],[4],[7] | ($0.14) | [1],[7] | $0.02 | [5],[7] | $0.01 | [6],[7] | ($0.02) | [6],[7] | ($0.03) | [6],[7] | ($0.98) | ($0.01) | $0.06 | |
Net (loss) income per share, diluted (usd per share) | ($0.38) | [1],[2],[7] | ($0.33) | [1],[3],[7] | ($0.13) | [1],[4],[7] | ($0.14) | [1],[7] | $0.02 | [5],[7] | $0.01 | [6],[7] | ($0.02) | [6],[7] | ($0.03) | [6],[7] | ($0.98) | ($0.01) | $0.06 | |
[1] | During the first, second, third and fourth quarters of 2014, the Company incurred $0.3 million, $4.0 million, $3.8 million and $7.8 million, respectively, in transaction and integration costs related to the acquisition of AngioScore. See Note 2, “Business Combinations.†| |||||||||||||||||||
[2] | During the fourth quarter of 2014, the Company incurred $1.5 million in transaction costs related to the acquisition of the Stellarex DCB Assets. See Note 17, “Subsequent Event.†| |||||||||||||||||||
[3] | During the third quarter of 2014, the Company recorded an impairment charge of $4.1 million and a reduction of $1.1 million to the contingent consideration liability related to certain assets and liabilities recorded from the acquisition of Upstream in 2013. See Note 6, “Goodwill and Other Intangible Assets.†| |||||||||||||||||||
[4] | Net loss and net loss per share have been adjusted from the previously filed Form 10-Q as of June 30, 2014 to reflect adjustments made during the measurement period to provisional amounts recognized for the AngioScore acquisition at the acquisition date. The Company recorded a deferred tax benefit of $1.3 million related to a partial release of valuation allowance related to the AngioScore acquisition. See Note 14, “Income Taxes.†| |||||||||||||||||||
[5] | During the fourth quarter of 2013, the Company incurred $0.6 million of medical device excise tax expense, $0.2 million in contingent consideration expense, and $0.2 million in acquisition-related intangible asset amortization. In addition, during the fourth quarter of 2013, the Company recorded an intangible asset impairment of $4.5 million and an adjustment to the contingent consideration liability of $5.2 million related to certain assets and liabilities recorded from the acquisition of Upstream in 2013. See Note 6, “Goodwill and Other Intangible Assets. | |||||||||||||||||||
[6] | During each of the first, second and third quarters of 2013, the Company incurred $0.5 million of medical device excise tax (which commenced January 1, 2013), $0.2 million in contingent consideration expense, and $0.2 million in acquisition-related intangible asset amortization, respectively. | |||||||||||||||||||
[7] | The sum of the quarterly net income per share amounts may not total to each full year amount because these computations are made independently for each quarter and for the full year, and take into account the weighted average number of common stock equivalent shares outstanding for each period. |
Concentrations_of_Credit_Risk_
Concentrations of Credit Risk (Details) (Revenue or Accounts Receivable, Customer Concentration Risk) | 12 Months Ended |
Dec. 31, 2014 | |
customer | |
Revenue or Accounts Receivable | Customer Concentration Risk | |
Concentration Risk [Line Items] | |
Number of Customers | 0 |
Segment_and_Geographic_Reporti2
Segment and Geographic Reporting (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Number of Lines of Business | 1 | ||
Number of Reportable Segments | 2 | ||
Number of Product Lines | 2 | ||
U.S. Medical | |||
Segment Reporting Information [Line Items] | |||
Revenues From Transaction With Other Operating Segments Of Same Entity | $8.10 | $7.60 | $7.50 |
International Medical | |||
Segment Reporting Information [Line Items] | |||
Long-Lived Assets | $26.60 | $11.90 | |
Customer Concentration Risk | Sales Revenue | |||
Segment Reporting Information [Line Items] | |||
Segment Reporting, Number of Major Customers | 0 | ||
Customer Concentration Risk | Revenue or Accounts Receivable | |||
Segment Reporting Information [Line Items] | |||
Disclosure of Major Customers | 0 | ||
Geographic Concentration Risk | Sales Revenue | |||
Segment Reporting Information [Line Items] | |||
Segment Reporting, Number of Major Customers | 0 | ||
Geographic Concentration Risk | Revenue or Accounts Receivable | |||
Segment Reporting Information [Line Items] | |||
Disclosure of Major Customers | 0 |
Segment_and_Geographic_Reporti3
Segment and Geographic Reporting (Segment Reporting) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||
Segments, Geographical Areas [Abstract] | |||||||||||||||||||
Revenue | $62,959 | [1],[2] | $58,786 | [1],[3] | $43,555 | [1],[4] | $39,614 | [1] | $41,920 | [5] | $39,763 | [6] | $39,453 | [6] | $37,675 | [6] | $204,914 | $158,811 | $140,285 |
U.S. Medical | |||||||||||||||||||
Segments, Geographical Areas [Abstract] | |||||||||||||||||||
Revenue | 167,399 | 130,126 | 117,436 | ||||||||||||||||
International Medical | |||||||||||||||||||
Segments, Geographical Areas [Abstract] | |||||||||||||||||||
Revenue | 37,515 | 28,685 | 22,849 | ||||||||||||||||
Disposable products | |||||||||||||||||||
Segments, Geographical Areas [Abstract] | |||||||||||||||||||
Revenue | 184,810 | 138,119 | 122,522 | ||||||||||||||||
Disposable products | U.S. Medical | |||||||||||||||||||
Segments, Geographical Areas [Abstract] | |||||||||||||||||||
Revenue | 155,107 | 114,976 | 103,218 | ||||||||||||||||
Disposable products | International Medical | |||||||||||||||||||
Segments, Geographical Areas [Abstract] | |||||||||||||||||||
Revenue | 29,703 | 23,143 | 19,304 | ||||||||||||||||
Service and other, net of allowance for sales returns | |||||||||||||||||||
Segments, Geographical Areas [Abstract] | |||||||||||||||||||
Revenue | 11,490 | 11,412 | 10,439 | ||||||||||||||||
Service and other, net of allowance for sales returns | U.S. Medical | |||||||||||||||||||
Segments, Geographical Areas [Abstract] | |||||||||||||||||||
Revenue | 9,334 | 9,833 | 9,081 | ||||||||||||||||
Service and other, net of allowance for sales returns | International Medical | |||||||||||||||||||
Segments, Geographical Areas [Abstract] | |||||||||||||||||||
Revenue | 2,156 | 1,579 | 1,358 | ||||||||||||||||
Equipment | |||||||||||||||||||
Segments, Geographical Areas [Abstract] | |||||||||||||||||||
Revenue | 8,614 | 9,280 | 7,324 | ||||||||||||||||
Equipment | U.S. Medical | |||||||||||||||||||
Segments, Geographical Areas [Abstract] | |||||||||||||||||||
Revenue | 2,958 | 5,317 | 5,137 | ||||||||||||||||
Equipment | International Medical | |||||||||||||||||||
Segments, Geographical Areas [Abstract] | |||||||||||||||||||
Revenue | $5,656 | $3,963 | $2,187 | ||||||||||||||||
[1] | During the first, second, third and fourth quarters of 2014, the Company incurred $0.3 million, $4.0 million, $3.8 million and $7.8 million, respectively, in transaction and integration costs related to the acquisition of AngioScore. See Note 2, “Business Combinations.†| ||||||||||||||||||
[2] | During the fourth quarter of 2014, the Company incurred $1.5 million in transaction costs related to the acquisition of the Stellarex DCB Assets. See Note 17, “Subsequent Event.†| ||||||||||||||||||
[3] | During the third quarter of 2014, the Company recorded an impairment charge of $4.1 million and a reduction of $1.1 million to the contingent consideration liability related to certain assets and liabilities recorded from the acquisition of Upstream in 2013. See Note 6, “Goodwill and Other Intangible Assets.†| ||||||||||||||||||
[4] | Net loss and net loss per share have been adjusted from the previously filed Form 10-Q as of June 30, 2014 to reflect adjustments made during the measurement period to provisional amounts recognized for the AngioScore acquisition at the acquisition date. The Company recorded a deferred tax benefit of $1.3 million related to a partial release of valuation allowance related to the AngioScore acquisition. See Note 14, “Income Taxes.†| ||||||||||||||||||
[5] | During the fourth quarter of 2013, the Company incurred $0.6 million of medical device excise tax expense, $0.2 million in contingent consideration expense, and $0.2 million in acquisition-related intangible asset amortization. In addition, during the fourth quarter of 2013, the Company recorded an intangible asset impairment of $4.5 million and an adjustment to the contingent consideration liability of $5.2 million related to certain assets and liabilities recorded from the acquisition of Upstream in 2013. See Note 6, “Goodwill and Other Intangible Assets. | ||||||||||||||||||
[6] | During each of the first, second and third quarters of 2013, the Company incurred $0.5 million of medical device excise tax (which commenced January 1, 2013), $0.2 million in contingent consideration expense, and $0.2 million in acquisition-related intangible asset amortization, respectively. |
Segment_and_Geographic_Reporti4
Segment and Geographic Reporting (Reconciliation of Operating Profit (Loss) and Assets) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Interest income | $46 | $61 | $71 | |||||||||||||||||
Interest Expense | 4,108 | 58 | 63 | |||||||||||||||||
Depreciation, Depletion and Amortization | 16,813 | 10,610 | 9,883 | |||||||||||||||||
Income tax (benefit) expense | -322 | 780 | 734 | |||||||||||||||||
Segment operating (loss) income | -36,950 | 394 | 2,947 | |||||||||||||||||
Segment net (loss) income | -15,997 | [1],[2] | -13,944 | [1],[3] | -5,299 | [1],[4] | -5,661 | [1] | 883 | [5] | 434 | [6] | -728 | [6] | -959 | [6] | -40,901 | -370 | 2,226 | |
Capital expenditures | 6,722 | 4,620 | 3,079 | |||||||||||||||||
Total assets | 466,950 | 217,157 | 466,950 | 217,157 | 110,769 | |||||||||||||||
U.S. Medical | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Interest income | 44 | 61 | 70 | |||||||||||||||||
Interest Expense | 4,098 | 58 | 63 | |||||||||||||||||
Depreciation, Depletion and Amortization | 15,205 | 9,217 | 8,705 | |||||||||||||||||
Income tax (benefit) expense | -887 | 402 | 414 | |||||||||||||||||
Segment operating (loss) income | -39,267 | -1,276 | 1,037 | |||||||||||||||||
Segment net (loss) income | -42,628 | -1,666 | 656 | |||||||||||||||||
Capital expenditures | 6,532 | 4,406 | 3,063 | |||||||||||||||||
Total assets | 432,151 | 198,639 | 432,151 | 198,639 | 95,181 | |||||||||||||||
International Medical | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Interest income | 2 | 0 | 1 | |||||||||||||||||
Interest Expense | 10 | 0 | 0 | |||||||||||||||||
Depreciation, Depletion and Amortization | 1,608 | 1,393 | 1,178 | |||||||||||||||||
Income tax (benefit) expense | 565 | 378 | 320 | |||||||||||||||||
Segment operating (loss) income | 2,317 | 1,670 | 1,910 | |||||||||||||||||
Segment net (loss) income | 1,727 | 1,296 | 1,570 | |||||||||||||||||
Capital expenditures | 190 | 214 | 16 | |||||||||||||||||
Total assets | $34,799 | $18,518 | $34,799 | $18,518 | $15,588 | |||||||||||||||
[1] | During the first, second, third and fourth quarters of 2014, the Company incurred $0.3 million, $4.0 million, $3.8 million and $7.8 million, respectively, in transaction and integration costs related to the acquisition of AngioScore. See Note 2, “Business Combinations.†| |||||||||||||||||||
[2] | During the fourth quarter of 2014, the Company incurred $1.5 million in transaction costs related to the acquisition of the Stellarex DCB Assets. See Note 17, “Subsequent Event.†| |||||||||||||||||||
[3] | During the third quarter of 2014, the Company recorded an impairment charge of $4.1 million and a reduction of $1.1 million to the contingent consideration liability related to certain assets and liabilities recorded from the acquisition of Upstream in 2013. See Note 6, “Goodwill and Other Intangible Assets.†| |||||||||||||||||||
[4] | Net loss and net loss per share have been adjusted from the previously filed Form 10-Q as of June 30, 2014 to reflect adjustments made during the measurement period to provisional amounts recognized for the AngioScore acquisition at the acquisition date. The Company recorded a deferred tax benefit of $1.3 million related to a partial release of valuation allowance related to the AngioScore acquisition. See Note 14, “Income Taxes.†| |||||||||||||||||||
[5] | During the fourth quarter of 2013, the Company incurred $0.6 million of medical device excise tax expense, $0.2 million in contingent consideration expense, and $0.2 million in acquisition-related intangible asset amortization. In addition, during the fourth quarter of 2013, the Company recorded an intangible asset impairment of $4.5 million and an adjustment to the contingent consideration liability of $5.2 million related to certain assets and liabilities recorded from the acquisition of Upstream in 2013. See Note 6, “Goodwill and Other Intangible Assets. | |||||||||||||||||||
[6] | During each of the first, second and third quarters of 2013, the Company incurred $0.5 million of medical device excise tax (which commenced January 1, 2013), $0.2 million in contingent consideration expense, and $0.2 million in acquisition-related intangible asset amortization, respectively. |
Segment_and_Geographic_Reporti5
Segment and Geographic Reporting (Revenue by Product Line) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||
Revenue from External Customer [Line Items] | |||||||||||||||||||
Revenue | $62,959 | [1],[2] | $58,786 | [1],[3] | $43,555 | [1],[4] | $39,614 | [1] | $41,920 | [5] | $39,763 | [6] | $39,453 | [6] | $37,675 | [6] | $204,914 | $158,811 | $140,285 |
Disposable products | |||||||||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||||||||
Revenue | 184,810 | 138,119 | 122,522 | ||||||||||||||||
Service and other, net of allowance for sales returns | |||||||||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||||||||
Revenue | 11,490 | 11,412 | 10,439 | ||||||||||||||||
Equipment | |||||||||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||||||||
Revenue | 8,614 | 9,280 | 7,324 | ||||||||||||||||
Vascular intervention | Disposable products | |||||||||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||||||||
Revenue | 118,148 | 75,601 | 67,336 | ||||||||||||||||
Lead management | Disposable products | |||||||||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||||||||
Revenue | $66,662 | $62,518 | $55,186 | ||||||||||||||||
[1] | During the first, second, third and fourth quarters of 2014, the Company incurred $0.3 million, $4.0 million, $3.8 million and $7.8 million, respectively, in transaction and integration costs related to the acquisition of AngioScore. See Note 2, “Business Combinations.†| ||||||||||||||||||
[2] | During the fourth quarter of 2014, the Company incurred $1.5 million in transaction costs related to the acquisition of the Stellarex DCB Assets. See Note 17, “Subsequent Event.†| ||||||||||||||||||
[3] | During the third quarter of 2014, the Company recorded an impairment charge of $4.1 million and a reduction of $1.1 million to the contingent consideration liability related to certain assets and liabilities recorded from the acquisition of Upstream in 2013. See Note 6, “Goodwill and Other Intangible Assets.†| ||||||||||||||||||
[4] | Net loss and net loss per share have been adjusted from the previously filed Form 10-Q as of June 30, 2014 to reflect adjustments made during the measurement period to provisional amounts recognized for the AngioScore acquisition at the acquisition date. The Company recorded a deferred tax benefit of $1.3 million related to a partial release of valuation allowance related to the AngioScore acquisition. See Note 14, “Income Taxes.†| ||||||||||||||||||
[5] | During the fourth quarter of 2013, the Company incurred $0.6 million of medical device excise tax expense, $0.2 million in contingent consideration expense, and $0.2 million in acquisition-related intangible asset amortization. In addition, during the fourth quarter of 2013, the Company recorded an intangible asset impairment of $4.5 million and an adjustment to the contingent consideration liability of $5.2 million related to certain assets and liabilities recorded from the acquisition of Upstream in 2013. See Note 6, “Goodwill and Other Intangible Assets. | ||||||||||||||||||
[6] | During each of the first, second and third quarters of 2013, the Company incurred $0.5 million of medical device excise tax (which commenced January 1, 2013), $0.2 million in contingent consideration expense, and $0.2 million in acquisition-related intangible asset amortization, respectively. |
Debt_Line_of_Credit_Details
Debt - Line of Credit (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
default_events | |
Credit Agreement | |
Maximum Borrowing Capacity | $15,000,000 |
Eligible Domestic Accounts Receivable | 85.00% |
Eligible Domestic Accounts Receivable Age from Invoice Date | 90 days |
Interest Rate at Period End | 3.50% |
Current Borrowing Capacity | 12,600,000 |
Asset Restrictions, Minimum Cash and Investments | 10,000,000 |
Unused Capacity, Commitment Fee Percentage | 0.25% |
Debt Instrument, Debt Default, Event of Default | 0 |
Amount Outstanding | $0 |
Wells Fargo Prime Rate | |
Credit Agreement | |
Basis Spread on Variable Rate | 0.25% |
London Interbank Offered Rate (LIBOR) | |
Credit Agreement | |
Basis Spread on Variable Rate | 3.25% |
Line of Credit | |
Credit Agreement | |
Debt Instrument, Term | 3 years |
Debt Instrument Term, Renewal | 3 years |
Income_Taxes_Sources_of_Income
Income Taxes (Sources of Income (Loss) Before Income Tax) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
United States | ($43,217) | ($1,298) | $1,413 |
Foreign (primarily the Netherlands) | 1,994 | 1,708 | 1,547 |
(Loss) income before income taxes | ($41,223) | $410 | $2,960 |
Income_Taxes_Income_tax_expens
Income Taxes (Income tax expense attributable to loss before income taxes) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | |||
Federal | $0 | $0 | $0 |
State | 72 | 66 | 84 |
Foreign | 515 | 328 | 272 |
Current Income Tax Expense (Benefit) | 587 | 394 | 356 |
Deferred: | |||
Federal | -874 | 301 | 295 |
State | -85 | 35 | 33 |
Foreign | 50 | 50 | 50 |
Deferred Income Tax Expense (Benefit) | -909 | 386 | 378 |
Income tax (benefit) expense | ($322) | $780 | $734 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Line Items] | |||
U.S. Federal Income Tax Rate | 34.00% | ||
Income tax (benefit) expense | ($322,000) | $780,000 | $734,000 |
Deferred Federal Income Tax Expense (Benefit) | -874,000 | 301,000 | 295,000 |
Release of valuation allowance related to AngioScore acquisition | -1,266,000 | 0 | 0 |
Tax Benefit from Stock Options Exercised | 3,000,000 | 1,400,000 | 700,000 |
Operating Loss Carryforwards | 156,000,000 | ||
Undistributed Earnings of Foreign Subsidiaries | -20,000,000 | ||
Unrecognized Tax Benefits | 100,000 | ||
Unrecognized Tax Benefits, Period Increase (Decrease) | -200,000 | ||
Capital Loss Carryforward | |||
Income Tax Disclosure [Line Items] | |||
Tax Credit Carryforward, Amount | 1,100,000 | ||
Alternative minimum tax carryforward | |||
Income Tax Disclosure [Line Items] | |||
Operating Loss Carryforwards | 155,200,000 | ||
Tax Credit Carryforward, Amount | 300,000 | ||
Research Tax Credit Carryforward | |||
Income Tax Disclosure [Line Items] | |||
Tax Credit Carryforward, Amount | 3,100,000 | ||
AngioScore | |||
Income Tax Disclosure [Line Items] | |||
Deferred Federal Income Tax Expense (Benefit) | -1,300,000 | ||
Deferred Income Tax Charge | AngioScore | |||
Income Tax Disclosure [Line Items] | |||
Income tax (benefit) expense | ($1,300,000) |
Income_Taxes_Effective_Income_
Income Taxes (Effective Income Tax Rate Reconciliation) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Computed expected tax (benefit) expense | ($14,016) | $140 | $1,006 |
Increase (reduction) in income tax (benefit) expense resulting from: | |||
State and local income taxes, net of federal impact | -1,211 | -116 | 94 |
Stock-based compensation | 46 | 169 | 112 |
Nondeductible expenses | 2,652 | 55 | 138 |
Change in valuation allowance | 13,540 | -332 | -1,241 |
Release of valuation allowance related to AngioScore acquisition | -1,266 | 0 | 0 |
Change in deferred rate | 193 | 5 | 165 |
Foreign operations | 179 | -49 | -44 |
Research and development credit | -439 | 908 | 504 |
Income tax (benefit) expense | ($322) | $780 | $734 |
Income_Taxes_Deferred_Tax_Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current | ||
Accrued liabilities | $1,438 | $916 |
Deferred revenue | 544 | 541 |
Inventories | 1,938 | 638 |
Total deferred tax assets, current portion, gross | 3,920 | 2,095 |
Less valuation allowance | -1,720 | -1,650 |
Total deferred tax assets, current portion, net | 2,200 | 445 |
Noncurrent | ||
Net operating loss carryforwards-U.S. and related states | 55,002 | 7,801 |
Charitable contribution carryover | 212 | 47 |
Capital loss carryover | 403 | 412 |
Amortization of intangibles | 1,031 | 1,224 |
Stock compensation expense related to nonqualified stock options | 2,434 | 1,377 |
Research and experimentation tax credit | 4,689 | 966 |
Alternative minimum tax credit | 298 | 298 |
Accrued liabilities, not deducted until paid for tax purposes | 457 | 535 |
Deferred tax assets, noncurrent portion, gross | 64,526 | 12,660 |
Less valuation allowance | -28,095 | -10,144 |
Deferred tax assets, noncurrent portion, net | 36,431 | 2,516 |
Noncurrent | ||
Equipment | -2,192 | -2,663 |
Long-lived intangible assets | -37,916 | -1,218 |
Total deferred tax liabilities, noncurrent portion, net | ($3,677) | ($1,365) |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (Pending Litigation, US District Court of Northern California) | 0 Months Ended |
Jun. 25, 2014 | |
patent | |
Pending Litigation | US District Court of Northern California | |
Loss Contingencies [Line Items] | |
Loss Contingency, Patents Involved in Litigation, Number | 3 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Leases) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Leases [Abstract] | |||
2015 | $1,791,000 | ||
2016 | 1,694,000 | ||
2017 | 1,640,000 | ||
2018 | 1,529,000 | ||
2019 | 1,509,000 | ||
Thereafter | 6,105,000 | ||
Total minimum lease payments | 14,268,000 | ||
Rent Expense | $2,700,000 | $2,400,000 | $1,900,000 |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||
Selected Quarterly Financial Information [Abstract] | |||||||||||||||||||
Net sales | $62,959 | [1],[2] | $58,786 | [1],[3] | $43,555 | [1],[4] | $39,614 | [1] | $41,920 | [5] | $39,763 | [6] | $39,453 | [6] | $37,675 | [6] | $204,914 | $158,811 | $140,285 |
Gross profit | 46,040 | [1],[2] | 43,086 | [1],[3] | 33,049 | [1],[4] | 29,280 | [1] | 31,561 | [5] | 29,710 | [6] | 28,828 | [6] | 27,356 | [6] | 151,455 | 117,455 | 102,358 |
Net (loss) income | ($15,997) | [1],[2] | ($13,944) | [1],[3] | ($5,299) | [1],[4] | ($5,661) | [1] | $883 | [5] | $434 | [6] | ($728) | [6] | ($959) | [6] | ($40,901) | ($370) | $2,226 |
Net Income (Loss) Per Share [Abstract] | |||||||||||||||||||
Basic (usd per share) | ($0.38) | [1],[2],[7] | ($0.33) | [1],[3],[7] | ($0.13) | [1],[4],[7] | ($0.14) | [1],[7] | $0.02 | [5],[7] | $0.01 | [6],[7] | ($0.02) | [6],[7] | ($0.03) | [6],[7] | ($0.98) | ($0.01) | $0.06 |
Diluted (usd per share) | ($0.38) | [1],[2],[7] | ($0.33) | [1],[3],[7] | ($0.13) | [1],[4],[7] | ($0.14) | [1],[7] | $0.02 | [5],[7] | $0.01 | [6],[7] | ($0.02) | [6],[7] | ($0.03) | [6],[7] | ($0.98) | ($0.01) | $0.06 |
[1] | During the first, second, third and fourth quarters of 2014, the Company incurred $0.3 million, $4.0 million, $3.8 million and $7.8 million, respectively, in transaction and integration costs related to the acquisition of AngioScore. See Note 2, “Business Combinations.†| ||||||||||||||||||
[2] | During the fourth quarter of 2014, the Company incurred $1.5 million in transaction costs related to the acquisition of the Stellarex DCB Assets. See Note 17, “Subsequent Event.†| ||||||||||||||||||
[3] | During the third quarter of 2014, the Company recorded an impairment charge of $4.1 million and a reduction of $1.1 million to the contingent consideration liability related to certain assets and liabilities recorded from the acquisition of Upstream in 2013. See Note 6, “Goodwill and Other Intangible Assets.†| ||||||||||||||||||
[4] | Net loss and net loss per share have been adjusted from the previously filed Form 10-Q as of June 30, 2014 to reflect adjustments made during the measurement period to provisional amounts recognized for the AngioScore acquisition at the acquisition date. The Company recorded a deferred tax benefit of $1.3 million related to a partial release of valuation allowance related to the AngioScore acquisition. See Note 14, “Income Taxes.†| ||||||||||||||||||
[5] | During the fourth quarter of 2013, the Company incurred $0.6 million of medical device excise tax expense, $0.2 million in contingent consideration expense, and $0.2 million in acquisition-related intangible asset amortization. In addition, during the fourth quarter of 2013, the Company recorded an intangible asset impairment of $4.5 million and an adjustment to the contingent consideration liability of $5.2 million related to certain assets and liabilities recorded from the acquisition of Upstream in 2013. See Note 6, “Goodwill and Other Intangible Assets. | ||||||||||||||||||
[6] | During each of the first, second and third quarters of 2013, the Company incurred $0.5 million of medical device excise tax (which commenced January 1, 2013), $0.2 million in contingent consideration expense, and $0.2 million in acquisition-related intangible asset amortization, respectively. | ||||||||||||||||||
[7] | The sum of the quarterly net income per share amounts may not total to each full year amount because these computations are made independently for each quarter and for the full year, and take into account the weighted average number of common stock equivalent shares outstanding for each period. |
Selected_Quarterly_Financial_D3
Selected Quarterly Financial Data (Unaudited) (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 |
Business Acquisition [Line Items] | |||||||||||
Acquisition transaction and integration costs | $17,288 | $0 | $311 | ||||||||
Income tax (benefit) expense | -322 | 780 | 734 | ||||||||
Medical device excise tax | 600 | 500 | 500 | 500 | 2,834 | 2,138 | 0 | ||||
Contingent consideration expense | 200 | 200 | 200 | 200 | 2,070 | 867 | 0 | ||||
Intangible asset amortization | 200 | 200 | 200 | 200 | 6,335 | 901 | 0 | ||||
Acquisition-related intangible asset impairment | 4,500 | 4,138 | 4,490 | 0 | |||||||
Change in fair value of contingent consideration liability | 5,200 | 1,064 | 5,165 | 0 | |||||||
AngioScore | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Acquisition transaction and integration costs | 15,800 | 7,800 | 3,800 | 4,000 | 300 | ||||||
AngioScore | Deferred Income Tax Charge | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Income tax (benefit) expense | -1,300 | ||||||||||
Stellarex Acquisition | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Acquisition transaction and integration costs | $1,500 |
Subsequent_Event_Details
Subsequent Event (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 27, 2015 |
Business Acquisition [Line Items] | ||||
Cash paid to acquire business | $233,978 | $6,500 | $7,727 | |
Stellarex Acquisition | Subsequent Event | ||||
Business Acquisition [Line Items] | ||||
Cash paid to acquire business | $30,000 | |||
Transition Services Agreement, Service period | 24 months |
Schedule_II_Valuation_and_Qual1
Schedule II - Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Allowance for doubtful accounts and sales returns | ||||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||||
Balance at Beginning of Year | $782 | $589 | $602 | |||
Charged (Credited) to Revenue, Costs or Expenses | 2,271 | 1,153 | 959 | |||
Charged (Credited) to Other Accounts - describe | 0 | [1] | 0 | [1] | 0 | [1] |
Deductions | 1,438 | [2] | 960 | [2] | 972 | [2] |
Balance at End of Year | 1,615 | 782 | 589 | |||
Inventory reserves | ||||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||||
Balance at Beginning of Year | 918 | 914 | 925 | |||
Charged (Credited) to Revenue, Costs or Expenses | 426 | 213 | 156 | |||
Charged (Credited) to Other Accounts - describe | 1,267 | [1] | 0 | [1] | 0 | [1] |
Deductions | 192 | [2] | 209 | [2] | 167 | [2] |
Balance at End of Year | 2,419 | 918 | 914 | |||
Valuation allowance for deferred tax assets | ||||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||||
Balance at Beginning of Year | 11,794 | 12,781 | 14,022 | |||
Charged (Credited) to Revenue, Costs or Expenses | 13,540 | -987 | -1,241 | |||
Charged (Credited) to Other Accounts - describe | 5,747 | [1] | 0 | [1] | 0 | [1] |
Deductions | 1,266 | [2] | 0 | [2] | 0 | [2] |
Balance at End of Year | $29,815 | $11,794 | $12,781 | |||
[1] | As part of purchase accounting at the AngioScore acquisition date, inventory reserves were established for potentially expired or obsolete AngioScore inventory, and a valuation allowance was established against a portion of AngioScore deferred tax assets related to net operating losses. | |||||
[2] | Deductions represent receivables written-off and credits granted for customer returns, inventory write-offs, and reductions in the valuation allowance for deferred tax assets due primarily to the use or expiration of net operating losses. |