Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2017 | Jul. 28, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | ABMD | |
Entity Registrant Name | ABIOMED INC | |
Entity Central Index Key | 815,094 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 44,102,166 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2017 | Mar. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 43,970 | $ 39,040 |
Short-term marketable securities | 207,441 | 190,908 |
Accounts receivable, net | 53,557 | 54,055 |
Inventories | 36,926 | 34,931 |
Prepaid expenses and other current assets | 9,021 | 8,024 |
Total current assets | 350,915 | 326,958 |
Long-term marketable securities | 37,669 | 47,143 |
Property and equipment, net | 92,804 | 87,777 |
Goodwill | 33,199 | 31,045 |
In-process research and development | 15,487 | 14,482 |
Long-term deferred tax assets, net | 113,457 | 34,723 |
Other assets | 8,686 | 8,286 |
Total assets | 652,217 | 550,414 |
Current liabilities: | ||
Accounts payable | 12,784 | 20,620 |
Accrued expenses | 35,695 | 37,703 |
Deferred revenue | 9,697 | 10,495 |
Current portion of capital lease obligation | 829 | 799 |
Total current liabilities | 59,005 | 69,617 |
Other long-term liabilities | 588 | 3,251 |
Contingent consideration | 9,418 | 9,153 |
Long-term deferred tax liabilities | 837 | 783 |
Capital lease obligation, net of current portion | 15,325 | 15,539 |
Total liabilities | 85,173 | 98,343 |
Commitments and contingencies (Note 10) | ||
Stockholders' equity: | ||
Class B Preferred Stock, $.01 par value Authorized - 1,000,000 shares; Issued and outstanding - none | ||
Common stock, $.01 par value Authorized - 100,000,000 shares; Issued - 45,791,680 shares at June 30, 2017 and 45,249,281 shares at March 31, 2017 Outstanding - 44,080,941 shares at June 30, 2017 and 43,673,286 shares at March 31, 2017 | 441 | 437 |
Additional paid in capital | 580,017 | 565,962 |
Retained earnings (accumulated deficit) | 65,661 | (46,959) |
Treasury stock at cost - 1,710,739 shares at June 30, 2017 and 1,575,995 shares at March 31, 2017 | (64,567) | (46,763) |
Accumulated other comprehensive loss | (14,508) | (20,606) |
Total stockholders' equity | 567,044 | 452,071 |
Total liabilities and stockholders' equity | $ 652,217 | $ 550,414 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2017 | Mar. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Class B Preferred Stock, par value | $ 0.01 | $ 0.01 |
Class B Preferred Stock, Authorized | 1,000,000 | 1,000,000 |
Class B Preferred Stock, Issued | 0 | 0 |
Class B Preferred Stock, outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, Authorized | 100,000,000 | 100,000,000 |
Common stock, Issued | 45,791,680 | 45,249,281 |
Common stock, Outstanding | 44,080,941 | 43,673,286 |
Treasury stock, shares | 1,710,739 | 1,575,995 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Revenue: | ||
Product revenue | $ 132,431 | $ 102,989 |
Funded research and development | 37 | 6 |
Total Revenue | 132,468 | 102,995 |
Costs and expenses: | ||
Cost of product revenue | 21,862 | 15,070 |
Research and development | 16,931 | 15,660 |
Selling, general and administrative | 60,597 | 51,032 |
Costs and Expenses, Total | 99,390 | 81,762 |
Income from operations | 33,078 | 21,233 |
Other income (expense): | ||
Investment income, net | 635 | 269 |
Other income (expense), net | 79 | (77) |
Nonoperating Income (Expense), Total | 714 | 192 |
Income before income taxes | 33,792 | 21,425 |
Income tax (benefit) provision | (3,582) | 8,515 |
Net income | $ 37,374 | $ 12,910 |
Basic net income per share | $ 0.85 | $ 0.30 |
Basic weighted average shares outstanding | 43,895 | 42,811 |
Diluted net income per share | $ 0.82 | $ 0.29 |
Diluted weighted average shares outstanding | 45,608 | 45,178 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income | $ 37,374 | $ 12,910 |
Other comprehensive gain (loss): | ||
Foreign currency translation gains (losses) | 6,153 | (1,699) |
Net unrealized (losses) gains on marketable securities | (55) | 150 |
Other comprehensive gain (loss) | 6,098 | (1,549) |
Comprehensive income | $ 43,472 | $ 11,361 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Operating activities: | ||
Net income | $ 37,374 | $ 12,910 |
Adjustments required to reconcile net income to net cash provided by operating activities: | ||
Depreciation expense | 2,463 | 1,406 |
Bad debt expense | (42) | (31) |
Stock-based compensation | 8,656 | 8,397 |
Write-down of inventory | 510 | 708 |
Excess tax benefit from stock-based awards | (1,041) | |
Deferred tax provision | (3,830) | 7,000 |
Change in fair value of contingent consideration | 265 | 176 |
Changes in assets and liabilities: | ||
Accounts receivable | 795 | 1,517 |
Inventories | (1,302) | (3,393) |
Prepaid expenses and other assets | (915) | 7 |
Accounts payable | (4,391) | (145) |
Accrued expenses and other liabilities | (2,436) | (952) |
Deferred revenue | (853) | (179) |
Net cash provided by operating activities | 36,294 | 26,380 |
Investing activities: | ||
Purchases of marketable securities | (73,626) | (67,318) |
Proceeds from the sale and maturity of marketable securities | 66,622 | 47,090 |
Purchase of other investment | (400) | |
Purchases of property and equipment | (9,804) | (5,099) |
Net cash used for investing activities | (17,208) | (25,327) |
Financing activities: | ||
Proceeds from the exercise of stock options | 3,555 | 2,770 |
Excess tax benefit from stock-based awards | 1,041 | |
Taxes paid related to net share settlement of vesting of stock awards | (17,805) | (15,033) |
Principal payments on capital lease obligation | (184) | |
Net cash used for financing activities | (14,434) | (11,222) |
Effect of exchange rate changes on cash | 278 | 212 |
Net increase in cash and cash equivalents | 4,930 | (9,957) |
Cash and cash equivalents at beginning of period | 39,040 | 48,231 |
Cash and cash equivalents at end of period | 43,970 | 38,274 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 479 | 420 |
Cash paid for interest on capital lease obligation | 130 | |
Supplemental disclosure of non-cash investing and financing activities: | ||
Property and equipment in accounts payable and accrued expenses | $ 1,872 | $ 996 |
Nature of Business
Nature of Business | 3 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Nature of Business | Note 1. Nature of Business Abiomed, Inc. (the “Company” or “Abiomed”) is a provider of mechanical circulatory support devices and offers a continuum of care to heart failure patients. The Company develops, manufactures and markets proprietary products that are designed to enable the heart to rest, heal and recover by improving blood flow and/or performing the pumping function of the heart. The Company’s products are used in the cardiac catheterization lab, or cath lab, by interventional cardiologists and in the heart surgery suite by heart surgeons for patients who are in need of hemodynamic support prophylactically or emergently before, during or after angioplasty or heart surgery procedures. |
Basis of Preparation and Summar
Basis of Preparation and Summary of Significant Accounting Policies | 3 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Preparation and Summary of Significant Accounting Policies | Note 2. Basis of Preparation and Summary of Significant Accounting Policies The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP, for interim financial reporting and in accordance with Article 10 of Regulation S-X. Accordingly, they do not include all of the information and note disclosures required by GAAP for complete financial statements. These statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2017 that has been filed with the Securities and Exchange Commission (the “SEC”). In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all normal and recurring adjustments that are necessary for a fair presentation of results for the interim periods presented. The results of operations for any interim period may not be indicative of results for the full fiscal year or any other subsequent period. There have been no changes in the Company’s significant accounting policies for the three months ended June 30, 2017 as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2017 that has been filed with the SEC. New Accounting Pronouncements Adopted Effective April 1, 2017, the Company adopted the Financial Accounting Standards Board (“FASB”) standard update ASU 2016-09, “ Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting The following table summarizes the most significant impacts of the new accounting guidance for the three months ended June 30, 2017: Description of Change: Impact of Change Upon Adoption on April 1, 2017 and for the Three Months Ended June 30, 2017: Adoption Method: The new standard eliminates the requirement that excess tax benefits be realized through a reduction in income taxes payable before a company can recognize them in the statement of operations. As a result, on April 1, 2017, the Company recorded a cumulative-effect adjustment to increase retained earnings and deferred tax assets by $76.4 million for excess tax benefits not previously recognized. Modified-retrospective (required) Excess tax benefits related to restricted stock unit vestings or stock option exercises are recorded through the statement of operations. The income tax benefit for the three months ended June 30, 2017, included excess tax benefits of $16.8 million. These recognized excess tax benefits resulted from restricted stock units that vested or stock options that were exercised during the three months ended June 30, 2017. Prospective (required) Excess tax benefits related to restricted stock unit vestings or stock option exercises are classified as operating cash flows instead of financing cash flows. Increase in cash flow from operating activities and decrease in cash flow from financing activities by approximately $16.8 million for the three months ended June 30, 2017. The statement of cash flows for prior periods have not been adjusted. Prospective (elected) Calculation of diluted weighted average shares outstanding under the treasury method no longer assume that tax benefits related to stock-based awards are used to repurchase common stock. The Company excluded the related tax benefits when applying the treasury stock method for computing diluted shares outstanding on a prospective basis as required by ASU 2016-09. Prospective (required) An accounting policy election can be made to reduce stock-based compensation expense for forfeitures as they occur instead of estimating forfeitures that are expected to occur. The Company made an accounting policy election to account for forfeitures as they occur with the change applied on a modified retrospective basis with a cumulative effect adjustment on April 1, 2017 to increase additional paid-in capital by $1.8 million, increase deferred tax assets by $0.7 million and decrease retained earnings by $1.1 million. The Company elected to make this accounting policy change to simplify the accounting for stock-based compensation and believes this method provides a more accurate reflection of periodic stock based compensation cost. Prior to the adoption of this accounting standard, the Company estimated at grant the likelihood that the award would ultimately vest, and revised the estimate, if necessary, in future periods if the actual forfeiture rate differed. Modified-retrospective (elected) Cash payments to tax authorities for shares withheld to meet employee tax withholding requirements on restricted stock units are classified as financing cash flow instead of operating cash flow. No change since the Company has historically presented these amounts as a financing activity. Prior to ASU 2016-09, U.S. GAAP has not specified how these types of transactions should be classified in the statement of cash flows. N/A See table below for the changes in beginning stockholders' equity as a result of this implementation. Common Stock Treasury Stock Number of shares Par value Number of shares Amount Additional Paid in Capital Accumulated Deficit Accumulated Other Comprehensive Income (Loss) Total Stockholders' Equity Balance, March 31, 2017 43,673,286 $ 437 1,575,995 $ (46,763 ) $ 565,962 $ (46,959 ) $ (20,606 ) $ 452,071 Cumulative effect of adoption of new accounting standard 1,835 75,246 77,081 Balance, April 1, 2017 43,673,286 $ 437 1,575,995 $ (46,763 ) $ 567,797 $ 28,287 $ (20,606 ) $ 529,152 Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers In February 2016, the FASB issued ASU 2016-02, Leases |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Note 3. Net Income Per Share Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing net income by the weighted average number of dilutive common shares outstanding during the period. Diluted shares outstanding are calculated by adding to the weighted average shares outstanding any potential dilutive securities outstanding for the period. Potential dilutive securities include stock options, restricted stock units, performance-based stock awards and shares to be purchased under the Company’s employee stock purchase plan. The Company’s basic and diluted net income per share for the three months ended June 30, 2017 and 2016 were as follows (in thousands, except per share data): For the Three Months Ended June 30, 2017 2016 Basic Net Income Per Share Net income $ 37,374 $ 12,910 Weighted average shares used in computing basic net income per share 43,895 42,811 Net income per share - basic $ 0.85 $ 0.30 For the Three Months Ended June 30, 2017 2016 Diluted Net Income Per Share Net income $ 37,374 $ 12,910 Weighted average shares used in computing basic net income per share 43,895 42,811 Effect of dilutive securities 1,713 2,367 Weighted average shares used in computing diluted net income per share 45,608 45,178 Net income per share - diluted $ 0.82 $ 0.29 For the three months ended June 30, 2017, approximately 54,000 shares underlying out-of-the-money stock options, were excluded in the computation of diluted earnings per share because their effect would have been anti-dilutive. Also, approximately 80,000 restricted shares in the three months ended June 30, 2017, respectively, related to performance-based awards for which milestones have not been met, were not included in the computation of diluted earnings per share. For the three months ended June 30, 2016, approximately 48,000 241,000 |
Marketable Securities and Fair
Marketable Securities and Fair Value Measurements | 3 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Marketable Securities and Fair Value Measurements | Note 4. Marketable Securities and Fair Value Measurements Marketable Securities The Company’s marketable securities are classified as available-for-sale securities and, accordingly, are recorded at fair value. The difference between amortized cost and fair value is included in stockholders’ equity. The Company’s marketable securities at June 30, 2017 and March 31, 2017 are invested in the following: Amortized Gross Unrealized Gross Unrealized Fair Market Cost Gains Losses Value (in $000's) June 30, 2017: Short-term U.S. Treasury mutual fund securities $ 36,138 $ — $ (20 ) $ 36,118 Short-term government-backed securities 113,432 — (138 ) 113,294 Short-term corporate debt securities 58,053 1 (25 ) 58,029 Long-term government-backed securities 34,970 1 (24 ) 34,947 Long-term corporate debt securities 2,718 4 — 2,722 $ 245,311 $ 6 $ (207 ) $ 245,110 Amortized Gross Unrealized Gross Unrealized Fair Market Cost Gains Losses Value (in $000's) March 31, 2017 Short-term U.S. Treasury mutual fund securities $ 45,199 $ — $ (13 ) $ 45,186 Short-term government-backed securities 90,199 1 (87 ) 90,113 Short-term corporate debt securities 55,465 — (31 ) 55,434 Long-term U.S. Treasury mutual fund securities 1,998 — (3 ) 1,995 Long-term government-backed securities 43,484 5 (18 ) 43,471 Long-term corporate debt securities 1,853 — (1 ) 1,852 $ 238,198 $ 6 $ (153 ) $ 238,051 Fair Value Hierarchy Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. Level 1 primarily consists of financial instruments whose values are based on quoted market prices such as exchange-traded instruments and listed equities. Level 2 includes financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including time value, yield curve, volatility factors, prepayment speeds, default rates, loss severity, current market and contractual prices for the underlying financial instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Level 3 is comprised of unobservable inputs that are supported by little or no market activity. Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flows, or similar techniques, and at least one significant model assumption or input is unobservable. The following table presents the Company’s financial instruments recorded at fair value in the condensed consolidated balance sheets, classified according to the three categories described above: Level 1 Level 2 Level 3 Total June 30, 2017: (in $000's) Assets Short-term U.S. Treasury mutual fund securities $ — $ 36,118 $ — $ 36,118 Short-term government-backed securities — 113,294 — 113,294 Short-term corporate debt securities — 58,029 — 58,029 Long-term government-backed securities — 34,947 — 34,947 Long-term corporate debt securities — 2,722 — 2,722 Liabilities Contingent consideration — — 9,418 9,418 Level 1 Level 2 Level 3 Total March 31, 2017: (in $000's) Assets Short-term U.S. Treasury mutual fund securities $ — $ 45,186 $ — $ 45,186 Short-term government-backed securities — 90,113 — 90,113 Short-term corporate debt securities — 55,434 — 55,434 Long-term U.S. Treasury mutual fund securities — 1,995 — 1,995 Long-term government-backed securities — 43,471 — 43,471 Long-term corporate debt securities — 1,852 — 1,852 Liabilities Contingent consideration — — 9,153 9,153 The Company has determined that the estimated fair value of its investments in U.S. Treasury mutual fund securities, government-backed securities, and corporate debt securities are reported as Level 2 financial assets as they are not exchange-traded instruments. The Company’s financial liabilities consisted of contingent consideration potentially payable related to the acquisition of ECP Entwicklungsgesellschaft mbH (“ECP”) and AIS GmbH Aachen Innovative Solutions (“AIS”), in July 2014. The Company acquired ECP for $13.0 million in cash, with additional potential payouts totaling $15.0 million based on the achievement of certain clinical and regulatory and revenue-based milestones. These potential milestone payments may be made, at the Company’s option, by a combination of cash or Abiomed common stock. The Company uses a combination of an income approach, based on various revenue and cost assumptions and applying a probability to each outcome and a Monte-Carlo valuation model. For the clinical and regulatory milestone, p robabilities were applied to each potential scenario and the resulting values were discounted using a rate that considers weighted average cost of capital as well as a specific risk premium associated with the riskiness of the earn out itself, the related projections, and the overall business. The r This liability is reported as Level 3 as the estimated fair value of the contingent consideration related to the acquisition of the ECP requires significant management judgment or estimation and is calculated using the following valuation methods: Fair Value at Weighted Average June 30, 2017 Significant (range, if (in $000's) Valuation Methodology Unobservable Input applicable) Clinical and regulatory milestone $ 5,453 Probability weighted income approach Projected fiscal year of milestone payments 2019 to 2022 Discount rate 2.6% to 3.3% Probability of occurrence Probability adjusted level of 40% for the base case scenario and 5% to 20% for various upside and downside scenarios Revenue-based milestone 3,965 Monte Carlo simulation model Projected fiscal year of milestone payments 2023 to 2035 Discount rate 18% Expected volatility for forecasted revenues 50% $ 9,418 The following table summarizes the change in fair value, as determined by Level 3 inputs, of the contingent consideration for the three months ended June 30, 2017 and 2016: For the Three Months Ended June 30, 2017 2016 (in $000's) Level 3 liabilities, beginning balance $ 9,153 $ 7,563 Additions — — Payments — — Change in fair value 265 176 Level 3 liabilities, ending balance $ 9,418 $ 7,739 The change in fair value of the contingent consideration was primarily due to the passage of time on the fair value measurement of milestones related to the ECP acquisition. Adjustments associated with the change in fair value of contingent consideration are included in research and development expenses in the Company’s condensed consolidated statements of operations. Significant increases or decreases in any of the probabilities of success or changes in expected timelines for achievement of any of these milestones could result in a significantly higher or lower fair value of the liability. The fair value of the contingent consideration at each reporting date is updated by reflecting the changes in fair value reflected in the Company’s statement of operations. There is no assurance that any of the conditions for the milestone payments will be met. Other Investments The Company periodically makes investments in private medical device companies that focus on heart failure and heart pump technologies. The aggregate carrying amount of the Company’s other investments was $7.6 million and $7.2 million at June 30, 2017 and March 31, 2017, respectively, and is classified within other assets in the unaudited condensed consolidated balance sheets. These investments are accounted for using the cost method and are measured at fair value only if there are identified events or changes in circumstances that may have a significant adverse effect on the fair value of these investments. In July 2017, the Company made an additional $6.0 million investment in one of the private medical device companies noted above and will record this transaction in the quarter ending September 30, 2017. |
Property and Equipment
Property and Equipment | 3 Months Ended |
Jun. 30, 2017 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | Note 5. Property and Equipment The components of property and equipment are as follows: June 30, 2017 March 31, 2017 Land $ 4,326 $ 4,046 Building and building improvements 12,146 10,900 Capital lease asset 16,784 16,784 Leasehold improvements 34,962 34,854 Machinery and equipment 31,340 27,989 Furniture and fixtures 6,211 3,899 Construction in progress 10,075 9,257 Total cost 115,844 107,729 Less accumulated depreciation (23,040 ) (19,952 ) $ 92,804 $ 87,777 In August 2016, the Company entered into a new lease agreement for its existing corporate headquarters in Danvers, Massachusetts (see Note 10). The Company recorded $16.8 million for this lease as a capital lease asset with depreciation expense being recorded on a straight line basis over 15 years. In December 2016, the Company entered into a purchase and sale agreement to acquire its existing European headquarters in Aachen, Germany, consisting of 33,000 square feet of space. Pursuant to the purchase and sale agreement, the Company acquired the property in February 2017. The acquisition cost for the land and building was approximately $12.6 million, with $4.0 million being recorded to land and $8.6 million being recorded to the building and building improvements. |
Goodwill and In-Process Researc
Goodwill and In-Process Research and Development | 3 Months Ended |
Jun. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and In-Process Research and Development | Note 6. Goodwill and In-Process Research and Development The carrying amount of goodwill at June 30, 2017 and March 31, 2017 was $33.2 million and $31.0 million, respectively, and has been recorded in connection with the Company’s acquisition of Impella Cardiosystems AG (“Impella Cardiosystems”), in May 2005 and ECP and AIS in July 2014. The goodwill activity is as follows: (in $000's) Balance at March 31, 2017 $ 31,045 Foreign currency translation impact 2,154 Balance at June 30, 2017 $ 33,199 The Company evaluates goodwill and in-process research and development (“IPR&D”) assets at least annually at October 31, as well as whenever events or changes in circumstances suggest that the carrying amount may not be recoverable. The Company has no accumulated impairment losses on goodwill or IPR&D assets. The carrying amount of IPR&D assets at June 30, 2017 and March 31, 2017 was $15.5 million and $14.5 million, respectively, and has been recorded in conjunction with the Company’s acquisition of ECP and AIS, in July 2014. The estimated fair value of IPR&D assets at the acquisition date was determined using a probability-weighted income approach, which discounts expected future cash flows to present value. The projected cash flows from the expandable catheter pump technology were based on certain key assumptions, including estimates of future revenue and expenses, taking into account the stage of development of the technology at the acquisition date and the time and resources needed to complete development. The Company used a discount rate of 21.5% and cash flows that have been probability adjusted to reflect the risks of product commercialization, which the Company believes are appropriate and representative of market participant assumptions. The carrying value of the Company’s IPR&D assets and the change in the balance for the three months ended June 30, 2017 are as follows: (in $000's) Balance at March 31, 2017 $ 14,482 Foreign currency translation impact 1,005 Balance at June 30, 2017 $ 15,487 |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Jun. 30, 2017 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | Note 7. Accrued Expenses Accrued expenses consist of the following: June 30, 2017 March 31, 2017 (in $000's) Employee compensation $ 22,346 $ 23,290 Professional, legal and accounting fees 3,464 2,019 Sales and income taxes 3,112 3,180 Research and development 2,362 2,349 Marketing 1,356 1,827 Warranty 853 717 Accrued capital expenditures 430 2,300 Other 1,772 2,021 $ 35,695 $ 37,703 Employee compensation consists primarily of accrued bonuses, accrued commissions and accrued employee benefits at June 30, 2017 and March 31, 2017. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Jun. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note 8. Stock-Based Compensation The following table summarizes stock-based compensation expense by financial statement line item in the Company’s condensed consolidated statements of operations for the three months ended June 30, 2017 and 2016: For the Three Months Ended June 30, 2017 2016 (in $000's) Cost of product revenue $ 359 $ 299 Research and development 1,339 1,255 Selling, general and administrative 6,958 6,843 $ 8,656 $ 8,397 Stock Options The following table summarizes the stock option activity for the three months ended June 30, 2017: Weighted Weighted Average Aggregate Average Remaining Intrinsic Options Exercise Contractual Value (in thousands) Price Term (years) (in thousands) Outstanding at beginning of period 1,646 $ 32.09 5.46 Granted 123 134.24 Exercised (223 ) 15.92 Cancelled and expired (22 ) 109.07 Outstanding at end of period 1,524 $ 41.62 5.78 $ 154,937 Exercisable at end of period 1,147 $ 22.95 4.76 $ 138,019 Options vested and expected to vest at end of period 1,487 $ 40.93 5.72 $ 152,210 The aggregate intrinsic value of options exercised was $26.0 million for the three months ended June 30, 2017. The total fair value of options that vested during the three months ended June 30, 2017 was $3.6 million. The remaining unrecognized stock-based compensation expense for unvested stock option awards at June 30, 2017 was approximately $12.7 million, net of forfeitures, and the weighted-average period over which this cost will be recognized is 2.7 years. The Company estimates the fair value of each stock option granted at the grant date using the Black-Scholes option valuation model. The weighted average grant-date fair values and weighted average assumptions used in the calculation of fair value of options granted during the three months ended June 30, 2017 and 2016 was as follows: For the Three Months Ended June 30, 2017 2016 Weighted average grant-date fair value $ 49.04 $ 40.33 Valuation assumptions: Risk-free interest rate 1.84 % 1.38 % Expected option life (years) 4.07 4.13 Expected volatility 43.7 % 49.8 % Restricted Stock Units The following table summarizes activity of restricted stock units for the three months ended June 30, 2017: Number of Shares Weighted Average Grant Date Fair Value (in thousands) (per share) Restricted stock units at beginning of period 1,056 $ 80.50 Granted 271 $ 134.53 Vested (319 ) $ 50.32 Forfeited (56 ) $ 99.37 Restricted stock units at end of period 952 $ 104.90 The remaining unrecognized compensation expense for outstanding restricted stock units, including performance and market-based awards, as of June 30, 2017 was $47.5 million and the weighted-average period over which this cost will be recognized is 2.4 years. Performance-Based Awards In May 2017, performance-based awards of restricted stock units for the potential issuance of approximately 159,000 shares of common stock were issued to certain executive officers and employees, all of which vest upon achievement of prescribed service milestones by the award recipients and performance milestones by the Company. As of June 30, 2017, the Company is recognizing compensation expense based on the probable outcome related to the prescribed performance targets on the outstanding awards. |
Income Taxes
Income Taxes | 3 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9. Income Taxes The Company recorded an income tax benefit of $3.6 million for the three months ended June 30, 2017 as compared to an income tax provision of $8.5 million for the three months ended June 30, 2016. As discussed further in “Note 2. Basis of Presentation and Summary of Significant Accounting Policies,” the Company adopted ASU 2016-09 in the first quarter of fiscal 2018. ASU 2016-09 requires excess tax benefits and shortfalls to be recognized in the income tax provision as discrete items in the period when restricted stock units vest or stock option exercises occur, whereas previously such income tax effects were recorded as part of additional paid-in capital only when the related tax deduction resulted in a reduction of current income taxes payable. On April 1, 2017, the Company recorded a cumulative-effect adjustment to increase retained earnings and deferred tax assets by $76.4 million for excess tax benefits not previously recognized. The adoption of ASU 2016-09 also resulted in excess tax benefits associated with stock-based awards of $16.8 million being recognized as an income tax benefit for three months ended June 30, 2017. These recognized excess tax benefits resulted from restricted stock units that vested or stock options that were exercised during the three months ended June 30, 2017. The amount of future excess tax benefits or shortfalls will likely fluctuate from period to period based on the price of the Company’s stock, the number of restricted stock unit vestings or stock option exercises, and the fair value assigned to such stock-based awards under U.S. GAAP. Accordingly, the Company’s expects that the adoption of ASU 2016-09 will result in more volatility to its effective income tax rate, net income and earnings per share in future periods. The estimated annual effective income tax rate is based upon estimated income before income taxes for the year, the geographical composition of the estimated income before taxes and estimated permanent differences. The estimated annual effective income tax rate can fluctuate and may differ from the actual tax rate recognized in fiscal 2018 for various reasons, including estimates of income before taxes, tax legislation, permanent differences, discrete items, and any adjustments between tax provision calculations and filed tax returns. The significant differences between the statutory tax rate and effective tax rate for the three months ended June 30, 2017 and 2016 were as follows: For the Three Months Ended June 30, 2017 2016 Statutory income tax rate 35.0 % 35.0 % Increase resulting from: Excess tax benefits from stock-based awards (49.8 ) — Credits (1.2 ) (1.3 ) State taxes, net 3.5 3.4 Permanent differences 1.8 2.7 Other 0.1 (0.1 ) Effective tax rate (10.6 ) % 39.7 % The Company and its subsidiaries are subject to U.S. federal income tax, as well as income tax of multiple state and foreign jurisdictions. Fiscal years 2012 through 2017 remain open to examination in Germany and Abiomed Europe GmbH, the Company’s main operating subsidiary in Germany is currently being audited for fiscal years 2012 through 2015. In July 2017, the Company was notified by the Internal Revenue Service, or IRS, that it has selected our federal tax return for fiscal 2016 for examination. All tax years remain subject to examination by the IRS and state tax authorities, because the Company has net operating loss and tax credit carryforwards which may be utilized in future years to offset taxable income, those years may also be subject to review by relevant taxing authorities if the carryforwards are utilized. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jun. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 10. Commitments and Contingencies Commitments Leases The Company’s corporate headquarters is located in Danvers, Massachusetts. This facility encompasses most of the Company’s U.S. operations, including research and development, manufacturing, sales and marketing and general and administrative departments. In August 2016, the Company entered into a new lease agreement to expand its existing corporate headquarters which includes 163,560 square feet of space. The initial term of the lease agreement commenced on August 12, 2016 and terminates on August 31, 2026. The Company has options to extend the initial term for three separate periods of five years each. In connection with the entry into this new lease agreement, the Company terminated the previously existing lease for the facility dated February 24, 2014, as amended by the First Amendment to Lease dated April 30, 2015 and the Second Amendment to Lease effective January 1, 2016. The lease agreement provides the Company with an exclusive option to purchase the building on or before August 31, 2022, subject to certain conditions set forth therein. In addition, the lease agreement grants the Company a one-time right of first offer to purchase the building from September 1, 2022 until August 31, 2026, if the lessor decides to sell the building or receives an offer to purchase the building from a third-party buyer. The Danvers, Massachusetts building lease is being recorded as a capital lease. The payments under the lease are accounted for as interest and principal payments over 15 years. A summary of future lease commitments related to the capital lease obligation is as follows: Capital Lease (in $000s) Fiscal 2018, remaining portion $ 997 Fiscal 2019 1,349 Fiscal 2020 1,349 Fiscal 2021 1,373 Fiscal 2022 1,390 Thereafter 13,746 Total minimum lease payments 20,204 Less amounts representing interest (4,050 ) Total capital lease obligation $ 16,154 Less current capital lease obligation (829 ) Capital lease obligation, net of current portion $ 15,325 In February 2017, the Company entered into a lease agreement for an additional office space in Danvers, Massachusetts which expires in July 2022. The annual rent expense for this lease agreement is estimated to be $0.2 million. In September 2016, the Company entered into a lease agreement in Berlin, Germany which commences in May 2017 and expires in May 2024. The annual rent expense for this lease agreement is estimated to be $0.3 million. The Company also entered into a lease agreement in October 2016 through September 2021 for an office in Tokyo, Japan which houses administrative, regulatory and training personnel as we prepare for commercial launch in Japan. The annual rent expense for this lease agreement is estimated to be $0.9 million. License Agreements In April 2014, the Company entered into an exclusive license agreement for the rights to certain optical sensor technologies in the field of cardio-circulatory assist devices. The Company made a $1.5 million upfront payment upon execution of the agreement and could make additional payments of up to $4.5 million upon the achievement of certain development milestones. The Company paid approximately $0.8 million in development milestones which are included with research and development expenses for the fiscal year ended March 31, 2017. Contingencies From time to time, the Company is involved in legal and administrative proceedings and claims of various types. In some actions, the claimants seek damages, as well as other relief, which, if granted, would require significant expenditures. The Company records a liability in its consolidated financial statements for these matters when a loss is known or considered probable and the amount can be reasonably estimated. The Company reviews these estimates each accounting period as additional information is known and adjusts the loss provision when appropriate. If a matter is both probable to result in liability and the amount of loss can be reasonably estimated, the Company estimates and discloses the possible loss or range of loss. If the loss is not probable or cannot be reasonably estimated, a liability is not recorded in its consolidated financial statements. On April 25, 2014, the Company received an administrative subpoena from the Boston regional office of the United States Department of Health and Human Services, or HHS, Office of Inspector General requesting materials relating to the Company’s reimbursement of employee expenses and remuneration to healthcare providers from July 2012 through December 2012, in connection with a civil investigation under the False Claims Act (the “FCA Investigation”). Subsequently, the Company received Civil Investigative Demands from the U.S. Attorney’s Office for the District of Massachusetts that collectively sought additional information relating to this matter for the time period of January 1, 2011 through September 14, 2016. The Company continues to cooperate fully with the government in this investigation and is exploring various ways to resolve this matter with the government. The Company is not able to predict what action, if any, might be taken in the future as a result of the investigation, or the potential impact on its financial position. Thoratec Corporation, or Thoratec, has challenged a number of Company owned patents in Europe in connection with the launch of their HeartMate PHP medical device, or PHP, in Europe. These actions all relate to Thoratec’s ability to manufacture and sell their PHP product in Europe. These actions do not relate to the Company’s ability to manufacture or sell its Impella line of devices. Thoratec is currently a subsidiary of Abbott Laboratories since January 2017. In October 2012, Thoratec filed a notice of opposition in the European Patent Office, or EPO, to a Company owned European patent covering a ‘pigtail’ feature on a blood pump. In October 2014, the EPO dismissed Thoratec’s opposition, and in December 2014, Thoratec filed a notice of appeal. The appeal was heard on January 20, 2017 by the EPO Board of Appeals. The Company prevailed at the EPO Board of Appeals and succeeded in upholding the patent in an amended form. The approved amended claim covers the combination of a blood pump with a pigtail and an expanding suction basket and funnel feature. The Board of Appeals is the highest level at the EPO so there are no further challenges to this patent possible at the EPO by Thoratec. In December 2014, Thoratec filed a nullity suit in the German Federal Patent Court against a German “pigtail” patent owned by the Company with a flexible extension feature, and auxiliary pigtail, basket and funnel features. The validity hearing was held in November 2016 and the Federal Patent Court found the patent invalid. The Company is appealing this decision. In August 2015, Thoratec filed a nullity action in the German Federal Patent Court against two Company owned patents covering a “magnetic clutch” feature. These magnetic clutch patents were acquired by the Company in July 2014, in connection with its acquisition of ECP and AIS. The validity hearing for the magnetic clutch patents was held in June 2017. The patents were upheld in an amended form to focus on the structure and interaction of the magnets in the clutch. The unamended claims are under appeal. In September 2015, the Company filed counterclaims in the magnetic clutch action in Germany asserting that the PHP product infringes the two magnetic clutch patents and the two pigtail patents. The infringement trial has been stayed, pending resolution of the German nullity actions. In February 2017, Thoratec filed an opposition against a Company patent acquired from ECP and AIS relating to a housing structure for an expandable pump. The deadline for the Company to respond to the opposition is in September 2017. In December 2015, the Company received a letter from Maquet Cardiovascular LLC, or Maquet, a subsidiary of the Getinge Group, and maker of the intra-aortic balloon pump, asserting that the Company’s Impella devices infringe certain claims having guidewire, lumen and sensor features which were in two Maquet patents and one pending patent application in the U.S. and elsewhere, and attached a draft litigation complaint and encouraged the Company to take a license from Maquet. In January 2016, the Company responded to Maquet stating that it believed that the cited claims were invalid and that its Impella devices did not infringe the cited patents. In May 2016, Maquet sent an additional letter notifying the Company that the pending U.S. patent application had been issued as a U.S. patent and repeated their earlier assertion and encouraged the Company to discuss taking a license from Maquet. The three patents expire September 2020, December 2020 and October 2021. On May 19, 2016, the Company filed suit in U.S. District Court for the District of Massachusetts, or D. Mass., against Maquet seeking a declaratory judgment that the Company’s Impella devices do not infringe Maquet’s cited patent rights. In August 2016, Maquet sent another letter to the Company identifying four new U.S. continuation patent filings with claims that Maquet alleges are infringed by the Company’s Impella devices. Of the four U.S. continuation applications, one issued as a patent on January 17, 2017, one issued as a patent on February 7, 2017, one issued as a patent on March 21, 2017, and one has recently begun substantive prosecution. The three issued new patents will expire in September 2020 and if the fourth continuation application issues it will also expire in September 2020. In September 2016, Maquet filed a response to the Company’s suit in D. Mass., including various counterclaims alleging that the Company’s Impella 2.5, Impella CP, Impella 5.0, and Impella RP heart pumps infringe certain claims of the three original issued U.S. patents. On June 15, 2017, Maquet filed a motion for leave to amend its infringement counterclaims to add the three additional U.S. continuation patents mentioned above and to file various false advertising, unfair competition claims under state law and under the Lanham Act, and a trademark cancellation in the pending case. Maquet’s amended complaint and counterclaim, like those it originally filed, seek injunctive relief and monetary damages in the form of a reasonable royalty, with three times the amount for alleged willful infringement. The amended complaint admits that Maquet’s currently commercially available products do not embody the claims of the asserted patents. On July 21, 2017, the Court granted the motion in part, allowing the three additional continuation patents to be added to the case, and denied the motion to add the false advertising, Lanham Act claims, and the trademark cancellation claims. Discovery in the case is in its early stages, and the case is ongoing and we cannot estimate what the potential outcome of these claims will be at this time. With regard to the six Maquet patents, in March and April 2017 the Company filed requests for inter partes review, or IPR, at the U.S. Patent & Trademark Office’s Patent Trial and Appeals Board, or PTAB, asserting that the claims are invalid in view of prior art blood pump technology. The PTAB’s decisions on whether to institute the IPRs are expected in September or October, 2017. On July 19, 2017, the Company filed a complaint in the United States District Court for the District of Massachusetts asserting false advertising claims under the Lanham Act and common law unfair competition claims regarding statements made about intra-aortic balloon pumps and/or Impella devices by various Maquet entities. Named as defendants are Getinge AB, Datascope Corp., Maquet Cardiovascular, LLC, Maquet Cardiovascular US Sales, LLC, d/b/a/ Maquet Medical Systems USA. The Company is unable to estimate a potential liability with respect to the legal matters noted above. There are numerous factors that make it difficult to meaningfully estimate possible loss or range of loss at this stage of the legal proceedings, including that the FCA Investigation and patent disputes with Thoratec and Maquet remain either in relatively early stages, or there are significant factual and legal issues to be resolved and information obtained or rulings made during any lawsuits or investigations that could affect the methodology for calculation. |
Segment and Enterprise Wide Dis
Segment and Enterprise Wide Disclosures | 3 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment and Enterprise Wide Disclosures | Note 11. Segment and Enterprise Wide Disclosures The Company operates in one business segment—the research, development and sale of medical devices to assist or replace the pumping function of the failing heart. The Company’s chief operating decision maker (determined to be the Chief Executive Officer) does not manage any part of the Company separately, and the allocation of resources and assessment of performance are based on the Company’s consolidated operating results. International sales (sales outside the U.S. and primarily in Europe) accounted for 10% and 9% of total product revenue for each of the three months ended June 30, 2017 and 2016, respectively. Most of the Company’s long-lived assets are located in the U.S. except for $26.4 million and $23.2 million at June 30, 2017 and March 31, 2017, respectively, which are located primarily in Germany. |
Basis of Preparation and Summ18
Basis of Preparation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements Adopted | New Accounting Pronouncements Adopted Effective April 1, 2017, the Company adopted the Financial Accounting Standards Board (“FASB”) standard update ASU 2016-09, “ Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting The following table summarizes the most significant impacts of the new accounting guidance for the three months ended June 30, 2017: Description of Change: Impact of Change Upon Adoption on April 1, 2017 and for the Three Months Ended June 30, 2017: Adoption Method: The new standard eliminates the requirement that excess tax benefits be realized through a reduction in income taxes payable before a company can recognize them in the statement of operations. As a result, on April 1, 2017, the Company recorded a cumulative-effect adjustment to increase retained earnings and deferred tax assets by $76.4 million for excess tax benefits not previously recognized. Modified-retrospective (required) Excess tax benefits related to restricted stock unit vestings or stock option exercises are recorded through the statement of operations. The income tax benefit for the three months ended June 30, 2017, included excess tax benefits of $16.8 million. These recognized excess tax benefits resulted from restricted stock units that vested or stock options that were exercised during the three months ended June 30, 2017. Prospective (required) Excess tax benefits related to restricted stock unit vestings or stock option exercises are classified as operating cash flows instead of financing cash flows. Increase in cash flow from operating activities and decrease in cash flow from financing activities by approximately $16.8 million for the three months ended June 30, 2017. The statement of cash flows for prior periods have not been adjusted. Prospective (elected) Calculation of diluted weighted average shares outstanding under the treasury method no longer assume that tax benefits related to stock-based awards are used to repurchase common stock. The Company excluded the related tax benefits when applying the treasury stock method for computing diluted shares outstanding on a prospective basis as required by ASU 2016-09. Prospective (required) An accounting policy election can be made to reduce stock-based compensation expense for forfeitures as they occur instead of estimating forfeitures that are expected to occur. The Company made an accounting policy election to account for forfeitures as they occur with the change applied on a modified retrospective basis with a cumulative effect adjustment on April 1, 2017 to increase additional paid-in capital by $1.8 million, increase deferred tax assets by $0.7 million and decrease retained earnings by $1.1 million. The Company elected to make this accounting policy change to simplify the accounting for stock-based compensation and believes this method provides a more accurate reflection of periodic stock based compensation cost. Prior to the adoption of this accounting standard, the Company estimated at grant the likelihood that the award would ultimately vest, and revised the estimate, if necessary, in future periods if the actual forfeiture rate differed. Modified-retrospective (elected) Cash payments to tax authorities for shares withheld to meet employee tax withholding requirements on restricted stock units are classified as financing cash flow instead of operating cash flow. No change since the Company has historically presented these amounts as a financing activity. Prior to ASU 2016-09, U.S. GAAP has not specified how these types of transactions should be classified in the statement of cash flows. N/A See table below for the changes in beginning stockholders' equity as a result of this implementation. Common Stock Treasury Stock Number of shares Par value Number of shares Amount Additional Paid in Capital Accumulated Deficit Accumulated Other Comprehensive Income (Loss) Total Stockholders' Equity Balance, March 31, 2017 43,673,286 $ 437 1,575,995 $ (46,763 ) $ 565,962 $ (46,959 ) $ (20,606 ) $ 452,071 Cumulative effect of adoption of new accounting standard 1,835 75,246 77,081 Balance, April 1, 2017 43,673,286 $ 437 1,575,995 $ (46,763 ) $ 567,797 $ 28,287 $ (20,606 ) $ 529,152 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers In February 2016, the FASB issued ASU 2016-02, Leases |
Basis of Preparation and Summ19
Basis of Preparation and Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Changes in Beginning Stockholders' Equity | See table below for the changes in beginning stockholders' equity as a result of this implementation. Common Stock Treasury Stock Number of shares Par value Number of shares Amount Additional Paid in Capital Accumulated Deficit Accumulated Other Comprehensive Income (Loss) Total Stockholders' Equity Balance, March 31, 2017 43,673,286 $ 437 1,575,995 $ (46,763 ) $ 565,962 $ (46,959 ) $ (20,606 ) $ 452,071 Cumulative effect of adoption of new accounting standard 1,835 75,246 77,081 Balance, April 1, 2017 43,673,286 $ 437 1,575,995 $ (46,763 ) $ 567,797 $ 28,287 $ (20,606 ) $ 529,152 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Income Per Share | The Company’s basic and diluted net income per share for the three months ended June 30, 2017 and 2016 were as follows (in thousands, except per share data): For the Three Months Ended June 30, 2017 2016 Basic Net Income Per Share Net income $ 37,374 $ 12,910 Weighted average shares used in computing basic net income per share 43,895 42,811 Net income per share - basic $ 0.85 $ 0.30 For the Three Months Ended June 30, 2017 2016 Diluted Net Income Per Share Net income $ 37,374 $ 12,910 Weighted average shares used in computing basic net income per share 43,895 42,811 Effect of dilutive securities 1,713 2,367 Weighted average shares used in computing diluted net income per share 45,608 45,178 Net income per share - diluted $ 0.82 $ 0.29 |
Marketable Securities and Fai21
Marketable Securities and Fair Value Measurements (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Marketable Securities | The Company’s marketable securities at June 30, 2017 and March 31, 2017 are invested in the following: Amortized Gross Unrealized Gross Unrealized Fair Market Cost Gains Losses Value (in $000's) June 30, 2017: Short-term U.S. Treasury mutual fund securities $ 36,138 $ — $ (20 ) $ 36,118 Short-term government-backed securities 113,432 — (138 ) 113,294 Short-term corporate debt securities 58,053 1 (25 ) 58,029 Long-term government-backed securities 34,970 1 (24 ) 34,947 Long-term corporate debt securities 2,718 4 — 2,722 $ 245,311 $ 6 $ (207 ) $ 245,110 Amortized Gross Unrealized Gross Unrealized Fair Market Cost Gains Losses Value (in $000's) March 31, 2017 Short-term U.S. Treasury mutual fund securities $ 45,199 $ — $ (13 ) $ 45,186 Short-term government-backed securities 90,199 1 (87 ) 90,113 Short-term corporate debt securities 55,465 — (31 ) 55,434 Long-term U.S. Treasury mutual fund securities 1,998 — (3 ) 1,995 Long-term government-backed securities 43,484 5 (18 ) 43,471 Long-term corporate debt securities 1,853 — (1 ) 1,852 $ 238,198 $ 6 $ (153 ) $ 238,051 |
Financial Instruments Recorded at Fair Value | The following table presents the Company’s financial instruments recorded at fair value in the condensed consolidated balance sheets, classified according to the three categories described above: Level 1 Level 2 Level 3 Total June 30, 2017: (in $000's) Assets Short-term U.S. Treasury mutual fund securities $ — $ 36,118 $ — $ 36,118 Short-term government-backed securities — 113,294 — 113,294 Short-term corporate debt securities — 58,029 — 58,029 Long-term government-backed securities — 34,947 — 34,947 Long-term corporate debt securities — 2,722 — 2,722 Liabilities Contingent consideration — — 9,418 9,418 Level 1 Level 2 Level 3 Total March 31, 2017: (in $000's) Assets Short-term U.S. Treasury mutual fund securities $ — $ 45,186 $ — $ 45,186 Short-term government-backed securities — 90,113 — 90,113 Short-term corporate debt securities — 55,434 — 55,434 Long-term U.S. Treasury mutual fund securities — 1,995 — 1,995 Long-term government-backed securities — 43,471 — 43,471 Long-term corporate debt securities — 1,852 — 1,852 Liabilities Contingent consideration — — 9,153 9,153 |
Valuation Method Used to Calculate Level 3 Liabilities Measured at Estimated Fair Value of Contingent Consideration Related to Acquisition | This liability is reported as Level 3 as the estimated fair value of the contingent consideration related to the acquisition of the ECP requires significant management judgment or estimation and is calculated using the following valuation methods: Fair Value at Weighted Average June 30, 2017 Significant (range, if (in $000's) Valuation Methodology Unobservable Input applicable) Clinical and regulatory milestone $ 5,453 Probability weighted income approach Projected fiscal year of milestone payments 2019 to 2022 Discount rate 2.6% to 3.3% Probability of occurrence Probability adjusted level of 40% for the base case scenario and 5% to 20% for various upside and downside scenarios Revenue-based milestone 3,965 Monte Carlo simulation model Projected fiscal year of milestone payments 2023 to 2035 Discount rate 18% Expected volatility for forecasted revenues 50% $ 9,418 |
Change in Fair Value of Contingent Consideration as Determined by Level 3 Inputs | The following table summarizes the change in fair value, as determined by Level 3 inputs, of the contingent consideration for the three months ended June 30, 2017 and 2016: For the Three Months Ended June 30, 2017 2016 (in $000's) Level 3 liabilities, beginning balance $ 9,153 $ 7,563 Additions — — Payments — — Change in fair value 265 176 Level 3 liabilities, ending balance $ 9,418 $ 7,739 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Property Plant And Equipment [Abstract] | |
Components of Property and Equipment | The components of property and equipment are as follows: June 30, 2017 March 31, 2017 Land $ 4,326 $ 4,046 Building and building improvements 12,146 10,900 Capital lease asset 16,784 16,784 Leasehold improvements 34,962 34,854 Machinery and equipment 31,340 27,989 Furniture and fixtures 6,211 3,899 Construction in progress 10,075 9,257 Total cost 115,844 107,729 Less accumulated depreciation (23,040 ) (19,952 ) $ 92,804 $ 87,777 |
Goodwill and In-Process Resea23
Goodwill and In-Process Research and Development (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill Activity | The goodwill activity is as follows: (in $000's) Balance at March 31, 2017 $ 31,045 Foreign currency translation impact 2,154 Balance at June 30, 2017 $ 33,199 |
Carrying value of In-Process Research and Development | The carrying value of the Company’s IPR&D assets and the change in the balance for the three months ended June 30, 2017 are as follows: (in $000's) Balance at March 31, 2017 $ 14,482 Foreign currency translation impact 1,005 Balance at June 30, 2017 $ 15,487 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | Accrued expenses consist of the following: June 30, 2017 March 31, 2017 (in $000's) Employee compensation $ 22,346 $ 23,290 Professional, legal and accounting fees 3,464 2,019 Sales and income taxes 3,112 3,180 Research and development 2,362 2,349 Marketing 1,356 1,827 Warranty 853 717 Accrued capital expenditures 430 2,300 Other 1,772 2,021 $ 35,695 $ 37,703 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation Recognized | The following table summarizes stock-based compensation expense by financial statement line item in the Company’s condensed consolidated statements of operations for the three months ended June 30, 2017 and 2016: For the Three Months Ended June 30, 2017 2016 (in $000's) Cost of product revenue $ 359 $ 299 Research and development 1,339 1,255 Selling, general and administrative 6,958 6,843 $ 8,656 $ 8,397 |
Summary of Stock Option Activity | The following table summarizes the stock option activity for the three months ended June 30, 2017: Weighted Weighted Average Aggregate Average Remaining Intrinsic Options Exercise Contractual Value (in thousands) Price Term (years) (in thousands) Outstanding at beginning of period 1,646 $ 32.09 5.46 Granted 123 134.24 Exercised (223 ) 15.92 Cancelled and expired (22 ) 109.07 Outstanding at end of period 1,524 $ 41.62 5.78 $ 154,937 Exercisable at end of period 1,147 $ 22.95 4.76 $ 138,019 Options vested and expected to vest at end of period 1,487 $ 40.93 5.72 $ 152,210 |
Summary of Weighted Average Grant-Date Fair Values And Weighted Average Assumptions Used to Calculate Fair Value of Options Granted | The weighted average grant-date fair values and weighted average assumptions used in the calculation of fair value of options granted during the three months ended June 30, 2017 and 2016 was as follows: For the Three Months Ended June 30, 2017 2016 Weighted average grant-date fair value $ 49.04 $ 40.33 Valuation assumptions: Risk-free interest rate 1.84 % 1.38 % Expected option life (years) 4.07 4.13 Expected volatility 43.7 % 49.8 % |
Summary of Restricted Stock Units Activity | The following table summarizes activity of restricted stock units for the three months ended June 30, 2017: Number of Shares Weighted Average Grant Date Fair Value (in thousands) (per share) Restricted stock units at beginning of period 1,056 $ 80.50 Granted 271 $ 134.53 Vested (319 ) $ 50.32 Forfeited (56 ) $ 99.37 Restricted stock units at end of period 952 $ 104.90 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Differences Between Statutory Income Tax Rate and Effective Tax Rates | The significant differences between the statutory tax rate and effective tax rate for the three months ended June 30, 2017 and 2016 were as follows: For the Three Months Ended June 30, 2017 2016 Statutory income tax rate 35.0 % 35.0 % Increase resulting from: Excess tax benefits from stock-based awards (49.8 ) — Credits (1.2 ) (1.3 ) State taxes, net 3.5 3.4 Permanent differences 1.8 2.7 Other 0.1 (0.1 ) Effective tax rate (10.6 ) % 39.7 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Future Lease Commitments Related to Capital Lease Obligation | A summary of future lease commitments related to the capital lease obligation is as follows: Capital Lease (in $000s) Fiscal 2018, remaining portion $ 997 Fiscal 2019 1,349 Fiscal 2020 1,349 Fiscal 2021 1,373 Fiscal 2022 1,390 Thereafter 13,746 Total minimum lease payments 20,204 Less amounts representing interest (4,050 ) Total capital lease obligation $ 16,154 Less current capital lease obligation (829 ) Capital lease obligation, net of current portion $ 15,325 |
Basis of Preparation and Summ28
Basis of Preparation and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Apr. 01, 2017 | |
Summary Of Significant Accounting Policy [Line Items] | |||
Cumulative effect to increase retained earnings and deferred tax assets | $ 77,081 | ||
Excess tax benefits related to restricted stock unit vestings or stock option exercises, decrease in financing activities | $ 1,041 | ||
Excess tax benefits related to restricted stock unit vestings or stock option exercises, increase in operating activities | $ 1,041 | ||
ASU 2016-09 | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Excess tax benefit | $ 16,800 | ||
Excess tax benefits related to restricted stock unit vestings or stock option exercises, decrease in financing activities | 16,800 | ||
Excess tax benefits related to restricted stock unit vestings or stock option exercises, increase in operating activities | $ 16,800 | ||
Increase additional paid in capital | 1,800 | ||
Increase deferred tax assets | 700 | ||
Decrease retained earnings | (1,100) | ||
Adjustment to Increase Retained Earnings and Deferred Tax Assets | ASU 2016-09 | |||
Summary Of Significant Accounting Policy [Line Items] | |||
Cumulative effect to increase retained earnings and deferred tax assets | $ 76,400 |
Schedule of Changes in Beginnin
Schedule of Changes in Beginning Stockholders' Equity (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Apr. 01, 2017 | Mar. 31, 2017 |
Balance | $ 567,044 | $ 529,152 | $ 452,071 |
Common stock, Outstanding | 44,080,941 | 43,673,286 | |
Cumulative effect to increase retained earnings and deferred tax assets | 77,081 | ||
Common Stock | |||
Balance | $ 437 | $ 437 | |
Common stock, Outstanding | 43,673,286 | 43,673,286 | |
Treasury Stock | |||
Balance | $ (46,763) | $ (46,763) | |
Common stock, Outstanding | 1,575,995 | 1,575,995 | |
Additional Paid in Capital | |||
Balance | $ 567,797 | $ 565,962 | |
Cumulative effect to increase retained earnings and deferred tax assets | 1,835 | ||
Accumulated Deficit | |||
Balance | 28,287 | (46,959) | |
Cumulative effect to increase retained earnings and deferred tax assets | 75,246 | ||
Accumulated Other Comprehensive Income (Loss) | |||
Balance | $ (20,606) | $ (20,606) |
Computation of Basic and Dilute
Computation of Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Basic Net Income Per Share | ||
Net income | $ 37,374 | $ 12,910 |
Weighted average shares used in computing basic net income per share | 43,895 | 42,811 |
Net income per share - basic | $ 0.85 | $ 0.30 |
Diluted Net Income Per Share | ||
Net income | $ 37,374 | $ 12,910 |
Weighted average shares used in computing basic net income per share | 43,895 | 42,811 |
Effect of dilutive securities | 1,713 | 2,367 |
Weighted average shares used in computing diluted net income per share | 45,608 | 45,178 |
Net income per share - diluted | $ 0.82 | $ 0.29 |
Net Income Per Share - Addition
Net Income Per Share - Additional Information (Detail) - shares | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Stock Options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares excluded from the calculation of diluted weighted average shares outstanding | 54,000 | 48,000 |
Restricted Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares excluded from the calculation of diluted weighted average shares outstanding | 80,000 | 241,000 |
Investable Marketable Securitie
Investable Marketable Securities (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Mar. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | $ 245,311 | $ 238,198 |
Gross Unrealized Gains | 6 | 6 |
Gross Unrealized Losses | (207) | (153) |
Fair Market Value | 245,110 | 238,051 |
U.S. Treasury mutual fund securities | Short-term Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 36,138 | 45,199 |
Gross Unrealized Losses | (20) | (13) |
Fair Market Value | 36,118 | 45,186 |
U.S. Treasury mutual fund securities | Long-term Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 1,998 | |
Gross Unrealized Losses | (3) | |
Fair Market Value | 1,995 | |
Government-backed securities | Short-term Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 113,432 | 90,199 |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | (138) | (87) |
Fair Market Value | 113,294 | 90,113 |
Government-backed securities | Long-term Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 34,970 | 43,484 |
Gross Unrealized Gains | 1 | 5 |
Gross Unrealized Losses | (24) | (18) |
Fair Market Value | 34,947 | 43,471 |
Corporate Debt Securities | Short-term Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 58,053 | 55,465 |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | (25) | (31) |
Fair Market Value | 58,029 | 55,434 |
Corporate Debt Securities | Long-term Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 2,718 | 1,853 |
Gross Unrealized Gains | 4 | |
Gross Unrealized Losses | (1) | |
Fair Market Value | $ 2,722 | $ 1,852 |
Financial Instruments Recorded
Financial Instruments Recorded at Fair Value (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Mar. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | $ 245,110 | $ 238,051 |
Contingent consideration | 9,418 | 9,153 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | 9,418 | 9,153 |
U.S. Treasury mutual fund securities | Short-term Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 36,118 | 45,186 |
U.S. Treasury mutual fund securities | Long-term Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 1,995 | |
U.S. Treasury mutual fund securities | Level 2 | Short-term Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 36,118 | 45,186 |
U.S. Treasury mutual fund securities | Level 2 | Long-term Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 1,995 | |
Government-backed securities | Short-term Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 113,294 | 90,113 |
Government-backed securities | Long-term Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 34,947 | 43,471 |
Government-backed securities | Level 2 | Short-term Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 113,294 | 90,113 |
Government-backed securities | Level 2 | Long-term Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 34,947 | 43,471 |
Corporate Debt Securities | Short-term Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 58,029 | 55,434 |
Corporate Debt Securities | Long-term Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 2,722 | 1,852 |
Corporate Debt Securities | Level 2 | Short-term Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 58,029 | 55,434 |
Corporate Debt Securities | Level 2 | Long-term Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | $ 2,722 | $ 1,852 |
Marketable Securities and Fai34
Marketable Securities and Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | |||
Jul. 31, 2014 | Jul. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Aggregate carrying amount of other investments | $ 7.6 | $ 7.2 | ||
Subsequent Event | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Aggregate carrying amount of other investments | $ 6 | |||
ECP Entwicklungsgesellschaft mbH | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Payments to acquire businesses, cash paid | $ 13 | |||
Potential payouts payments | $ 15 |
Valuation Method Used to Calcul
Valuation Method Used to Calculate Level 3 Liabilities Measured at Estimated Fair Value of Contingent Consideration Related to Acquisition (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Jul. 31, 2014 | Jun. 30, 2017 | Mar. 31, 2017 | |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Contingent consideration | $ 9,418 | $ 9,153 | |
ECP Entwicklungsgesellschaft mbH | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Discount rate | 21.50% | ||
Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Contingent consideration | 9,418 | $ 9,153 | |
Level 3 | ECP Entwicklungsgesellschaft mbH | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Contingent consideration | 9,418 | ||
Level 3 | ECP Entwicklungsgesellschaft mbH | Probability weighted income approach | Clinical and regulatory milestone | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Contingent consideration | $ 5,453 | ||
Level 3 | ECP Entwicklungsgesellschaft mbH | Probability weighted income approach | Clinical and regulatory milestone | Base Case Scenario | Contingent Consideration | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Probability of occurrence | 40.00% | ||
Level 3 | ECP Entwicklungsgesellschaft mbH | Probability weighted income approach | Clinical and regulatory milestone | Minimum | Contingent Consideration | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Projected fiscal year of milestone payments | 2,019 | ||
Discount rate | 2.60% | ||
Level 3 | ECP Entwicklungsgesellschaft mbH | Probability weighted income approach | Clinical and regulatory milestone | Minimum | Various Upside and Downside Scenarios | Contingent Consideration | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Probability of occurrence | 5.00% | ||
Level 3 | ECP Entwicklungsgesellschaft mbH | Probability weighted income approach | Clinical and regulatory milestone | Maximum | Contingent Consideration | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Projected fiscal year of milestone payments | 2,022 | ||
Discount rate | 3.30% | ||
Level 3 | ECP Entwicklungsgesellschaft mbH | Probability weighted income approach | Clinical and regulatory milestone | Maximum | Various Upside and Downside Scenarios | Contingent Consideration | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Probability of occurrence | 20.00% | ||
Level 3 | ECP Entwicklungsgesellschaft mbH | Monte Carlo simulation model | Revenue-based milestone | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Contingent consideration | $ 3,965 | ||
Level 3 | ECP Entwicklungsgesellschaft mbH | Monte Carlo simulation model | Revenue-based milestone | Contingent Consideration | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Discount rate | 18.00% | ||
Expected volatility for forecasted revenues | 50.00% | ||
Level 3 | ECP Entwicklungsgesellschaft mbH | Monte Carlo simulation model | Revenue-based milestone | Minimum | Contingent Consideration | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Projected fiscal year of milestone payments | 2,023 | ||
Level 3 | ECP Entwicklungsgesellschaft mbH | Monte Carlo simulation model | Revenue-based milestone | Maximum | Contingent Consideration | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Projected fiscal year of milestone payments | 2,035 |
Change in Fair Value of Conting
Change in Fair Value of Contingent Consideration as Determined by Level 3 Inputs (Detail) - Contingent Consideration - ECP Entwicklungsgesellschaft mbH - Level 3 - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Level 3 liabilities, beginning balance | $ 9,153 | $ 7,563 |
Additions | 0 | 0 |
Payments | 0 | 0 |
Change in fair value | 265 | 176 |
Level 3 liabilities, ending balance | $ 9,418 | $ 7,739 |
Components of Property and Equi
Components of Property and Equipment (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Mar. 31, 2017 |
Property Plant And Equipment [Abstract] | ||
Land | $ 4,326 | $ 4,046 |
Building and building improvements | 12,146 | 10,900 |
Capital lease asset | 16,784 | 16,784 |
Leasehold improvements | 34,962 | 34,854 |
Machinery and equipment | 31,340 | 27,989 |
Furniture and fixtures | 6,211 | 3,899 |
Construction in progress | 10,075 | 9,257 |
Total cost | 115,844 | 107,729 |
Less accumulated depreciation | (23,040) | (19,952) |
Property and equipment, net | $ 92,804 | $ 87,777 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) $ in Thousands | 1 Months Ended | 3 Months Ended | ||||
Feb. 28, 2017USD ($) | Aug. 31, 2016USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016ft² | |
Property Plant And Equipment [Line Items] | ||||||
Property and equipment | $ 115,844 | $ 107,729 | ||||
Acquisition cost for property and equipment | $ 9,804 | $ 5,099 | ||||
Europe | ||||||
Property Plant And Equipment [Line Items] | ||||||
Acquisition cost for property and equipment | $ 12,600 | |||||
Lease Agreements | Europe | ||||||
Property Plant And Equipment [Line Items] | ||||||
Office space under lease | ft² | 33,000 | |||||
Capital lease assets | ||||||
Property Plant And Equipment [Line Items] | ||||||
Property and equipment | $ 16,800 | |||||
Capital lease asset, useful life | 15 years | |||||
Land | Europe | ||||||
Property Plant And Equipment [Line Items] | ||||||
Acquisition cost for property and equipment | 4,000 | |||||
Building and Building Improvements | Europe | ||||||
Property Plant And Equipment [Line Items] | ||||||
Acquisition cost for property and equipment | $ 8,600 |
Goodwill and In-Process Resea39
Goodwill and In-Process Research and Development - Additional Information (Detail) - USD ($) | 1 Months Ended | ||
Jul. 31, 2014 | Jun. 30, 2017 | Mar. 31, 2017 | |
Goodwill [Line Items] | |||
Goodwill | $ 33,199,000 | $ 31,045,000 | |
Accumulated impairment loss, goodwill | 0 | ||
In-process research and development | 15,487,000 | 14,482,000 | |
ECP Entwicklungsgesellschaft mbH | |||
Goodwill [Line Items] | |||
In-process research and development | $ 15,500,000 | $ 14,500,000 | |
Fair value inputs, discount rate | 21.50% |
Goodwill Activity (Detail)
Goodwill Activity (Detail) $ in Thousands | 3 Months Ended |
Jun. 30, 2017USD ($) | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Beginning balance | $ 31,045 |
Foreign currency translation impact | 2,154 |
Ending balance | $ 33,199 |
Carrying value of In-Process Re
Carrying value of In-Process Research and Development (Detail) $ in Thousands | 3 Months Ended |
Jun. 30, 2017USD ($) | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Beginning balance | $ 14,482 |
Foreign currency translation impact | 1,005 |
Ending balance | $ 15,487 |
Accrued Expenses (Detail)
Accrued Expenses (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Mar. 31, 2017 |
Payables and Accruals [Abstract] | ||
Employee compensation | $ 22,346 | $ 23,290 |
Professional, legal and accounting fees | 3,464 | 2,019 |
Sales and income taxes | 3,112 | 3,180 |
Research and development | 2,362 | 2,349 |
Marketing | 1,356 | 1,827 |
Warranty | 853 | 717 |
Accrued capital expenditures | 430 | 2,300 |
Other | 1,772 | 2,021 |
Accrued expenses | $ 35,695 | $ 37,703 |
Stock-Based Compensation Recogn
Stock-Based Compensation Recognized (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation | $ 8,656 | $ 8,397 |
Cost of product revenue | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation | 359 | 299 |
Research and development | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation | 1,339 | 1,255 |
Selling, general and administrative | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation | $ 6,958 | $ 6,843 |
Summary of Stock Option Activit
Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Mar. 31, 2017 | |
Options | ||
Outstanding at beginning of period | 1,646 | |
Granted | 123 | |
Exercised | (223) | |
Cancelled and expired | (22) | |
Outstanding at end of period | 1,524 | 1,646 |
Exercisable at end of period | 1,147 | |
Options vested and expected to vest at end of period | 1,487 | |
Weighted-Average Exercise Price | ||
Outstanding at beginning of period | $ 32.09 | |
Granted | 134.24 | |
Exercised | 15.92 | |
Cancelled and expired | 109.07 | |
Outstanding at end of period | 41.62 | $ 32.09 |
Exercisable at end of period | 22.95 | |
Options vested and expected to vest at end of period | $ 40.93 | |
Weighted-Average Remaining Contractual Term (years) | ||
Outstanding | 5 years 9 months 11 days | 5 years 5 months 16 days |
Exercisable at end of period | 4 years 9 months 3 days | |
Options vested and expected to vest at end of period | 5 years 8 months 19 days | |
Aggregate Intrinsic Value | ||
Outstanding at end of period | $ 154,937 | |
Exercisable at end of period | 138,019 | |
Options vested and expected to vest at end of period | $ 152,210 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended |
May 31, 2017 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Aggregate intrinsic value of options exercised in period | $ 26 | |
Fair value of options vested in period | 3.6 | |
Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized stock-based compensation expense | $ 12.7 | |
Unrecognized stock-based compensation expense, weighted-average recognition period | 2 years 8 months 12 days | |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized stock-based compensation expense | $ 47.5 | |
Unrecognized stock-based compensation expense, weighted-average recognition period | 2 years 4 months 24 days | |
Restricted share unit issued | 271,000 | |
Performance Based Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted share unit issued | 159,000 |
Summary of Weighted Average Gra
Summary of Weighted Average Grant-Date Fair Values And Weighted Average Assumptions Used to Calculate Fair Value of Options Granted (Detail) - Stock Options - $ / shares | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average grant-date fair value | $ 49.04 | $ 40.33 |
Valuation assumptions: | ||
Risk-free interest rate | 1.84% | 1.38% |
Expected option life (years) | 4 years 26 days | 4 years 1 month 16 days |
Expected volatility | 43.70% | 49.80% |
Summary of Restricted Stock Uni
Summary of Restricted Stock Units Activity (Detail) - Restricted Stock Units shares in Thousands | 3 Months Ended |
Jun. 30, 2017$ / sharesshares | |
Number of Shares | |
Beginning Balance | shares | 1,056 |
Granted | shares | 271 |
Vested | shares | (319) |
Forfeited | shares | (56) |
Ending Balance | shares | 952 |
Weighted Average Grant Date Fair Value | |
Beginning Balance | $ / shares | $ 80.50 |
Granted | $ / shares | 134.53 |
Vested | $ / shares | 50.32 |
Forfeited | $ / shares | 99.37 |
Ending Balance | $ / shares | $ 104.90 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Apr. 01, 2017 | |
Income Taxes [Line Items] | |||
Income tax (benefit) provision | $ (3,582) | $ 8,515 | |
Cumulative effect to increase retained earnings and deferred tax assets | $ 77,081 | ||
ASU 2016-09 | |||
Income Taxes [Line Items] | |||
Excess tax benefits from stock-based awards | $ 16,800 | ||
ASU 2016-09 | Adjustment to Increase Retained Earnings and Deferred Tax Assets | |||
Income Taxes [Line Items] | |||
Cumulative effect to increase retained earnings and deferred tax assets | $ 76,400 |
Differences Between Statutory I
Differences Between Statutory Income Tax Rate and Effective Tax Rates (Detail) | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||
Statutory income tax rate | 35.00% | 35.00% |
Excess tax benefits from stock-based awards | (49.80%) | |
Credits | (1.20%) | (1.30%) |
State taxes, net | 3.50% | 3.40% |
Permanent differences | 1.80% | 2.70% |
Other | 0.10% | (0.10%) |
Effective tax rate | (10.60%) | 39.70% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Aug. 31, 2016ft² | Sep. 30, 2015Patent | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Apr. 30, 2014USD ($) | |
Commitments and Contingencies [Line Items] | |||||
License agreement, upfront payment | $ 1.5 | ||||
License agreement, maximum agreed additional payments upon achievement of development milestones | $ 4.5 | ||||
Magnetic Clutch Patents | |||||
Commitments and Contingencies [Line Items] | |||||
Patents allegedly infringed upon, number | Patent | 2 | ||||
Pigtail Patents | |||||
Commitments and Contingencies [Line Items] | |||||
Patents allegedly infringed upon, number | Patent | 2 | ||||
Patent One | |||||
Commitments and Contingencies [Line Items] | |||||
Patent expiration period | 2020-09 | ||||
Patent Two | |||||
Commitments and Contingencies [Line Items] | |||||
Patent expiration period | 2020-12 | ||||
Patent Three | |||||
Commitments and Contingencies [Line Items] | |||||
Patent expiration period | 2021-10 | ||||
Research and Development Expenses | |||||
Commitments and Contingencies [Line Items] | |||||
License agreement, development milestones payment | $ 0.8 | ||||
Lease Agreements | |||||
Commitments and Contingencies [Line Items] | |||||
Office space under capital lease | ft² | 163,560 | ||||
Lease agreement termination date | Aug. 31, 2026 | ||||
Lease description | The Company has options to extend the initial term for three separate periods of five years each. | ||||
Capital lease term | 15 years | ||||
Lease Agreements | Massachusetts | |||||
Commitments and Contingencies [Line Items] | |||||
Annual rent expense | $ 0.2 | ||||
Lease expiration period | 2022-07 | ||||
Lease Agreements | Germany | |||||
Commitments and Contingencies [Line Items] | |||||
Annual rent expense | $ 0.3 | ||||
Lease expiration period | 2024-05 | ||||
Lease commencement period | 2017-05 | ||||
Lease Agreements | Japan | |||||
Commitments and Contingencies [Line Items] | |||||
Annual rent expense | $ 0.9 |
Summary of Future Lease Commitm
Summary of Future Lease Commitments Related to Capital Lease Obligation (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Mar. 31, 2017 |
Leases [Abstract] | ||
Fiscal 2018, remaining portion | $ 997 | |
Fiscal 2,019 | 1,349 | |
Fiscal 2,020 | 1,349 | |
Fiscal 2,021 | 1,373 | |
Fiscal 2,022 | 1,390 | |
Thereafter | 13,746 | |
Total minimum lease payments | 20,204 | |
Less amounts representing interest | (4,050) | |
Total capital lease obligation | 16,154 | |
Less current capital lease obligation | (829) | $ (799) |
Capital lease obligation, net of current portion | $ 15,325 | $ 15,539 |
Segment and Enterprise Wide D52
Segment and Enterprise Wide Disclosures - Additional Information (Detail) $ in Millions | 3 Months Ended | ||
Jun. 30, 2017USD ($)Segment | Jun. 30, 2016 | Mar. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of business segments | Segment | 1 | ||
International | |||
Segment Reporting Information [Line Items] | |||
Percentage of total product revenue | 10.00% | 9.00% | |
Long-lived assets | $ | $ 26.4 | $ 23.2 |