Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Dec. 31, 2017 | Jan. 31, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2017 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
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 | 44,277,825 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2017 | Mar. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 50,502 | $ 39,040 |
Short-term marketable securities | 250,751 | 190,908 |
Accounts receivable, net | 64,862 | 54,055 |
Inventories | 46,891 | 34,931 |
Prepaid expenses and other current assets | 9,192 | 8,024 |
Total current assets | 422,198 | 326,958 |
Long-term marketable securities | 49,485 | 47,143 |
Property and equipment, net | 107,977 | 87,777 |
Goodwill | 34,814 | 31,045 |
In-process research and development | 16,241 | 14,482 |
Long-term deferred tax assets, net | 75,201 | 34,723 |
Other assets | 13,686 | 8,286 |
Total assets | 719,602 | 550,414 |
Current liabilities: | ||
Accounts payable | 21,991 | 20,620 |
Accrued expenses | 41,565 | 37,703 |
Deferred revenue | 11,797 | 10,495 |
Current portion of capital lease obligation | 799 | |
Total current liabilities | 75,353 | 69,617 |
Other long-term liabilities | 466 | 3,251 |
Contingent consideration | 10,423 | 9,153 |
Long-term deferred tax liabilities | 878 | 783 |
Capital lease obligation, net of current portion | 15,539 | |
Total liabilities | 87,120 | 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 - 45,995,445 shares at December 31 , 2017 and 45,249,281 shares at March 31, 2017 Outstanding - 44,271,905 shares at December 31, 2017 and 43,673,286 shares at March 31, 2017 | 443 | 437 |
Additional paid in capital | 605,697 | 565,962 |
Retained earnings (accumulated deficit) | 103,610 | (46,959) |
Treasury stock at cost - 1,723,540 shares at December 31, 2017 and 1,575,995 shares at March 31, 2017 | (66,622) | (46,763) |
Accumulated other comprehensive loss | (10,646) | (20,606) |
Total stockholders' equity | 632,482 | 452,071 |
Total liabilities and stockholders' equity | $ 719,602 | $ 550,414 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 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 | 45,995,445 | 45,249,281 |
Common stock, Outstanding | 44,271,905 | 43,673,286 |
Treasury stock, shares | 1,723,540 | 1,575,995 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue: | ||||
Product revenue | $ 153,989 | $ 114,624 | $ 419,202 | $ 320,541 |
Funded research and development | 33 | 50 | 111 | 83 |
Total Revenue | 154,022 | 114,674 | 419,313 | 320,624 |
Costs and expenses: | ||||
Cost of product revenue | 24,994 | 18,987 | 68,483 | 51,366 |
Research and development | 17,706 | 16,349 | 54,027 | 50,061 |
Selling, general and administrative | 66,556 | 53,935 | 187,233 | 158,053 |
Costs and Expenses, Total | 109,256 | 89,271 | 309,743 | 259,480 |
Income from operations | 44,766 | 25,403 | 109,570 | 61,144 |
Other income (expense): | ||||
Investment income, net | 969 | 457 | 2,385 | 1,068 |
Other expense, net | (81) | (34) | (25) | (225) |
Nonoperating Income (Expense), Total | 888 | 423 | 2,360 | 843 |
Income before income taxes | 45,654 | 25,826 | 111,930 | 61,987 |
Income tax provision | 32,208 | 10,394 | 36,607 | 24,770 |
Net income | $ 13,446 | $ 15,432 | $ 75,323 | $ 37,217 |
Basic net income per share | $ 0.30 | $ 0.36 | $ 1.71 | $ 0.86 |
Basic weighted average shares outstanding | 44,247 | 43,431 | 44,095 | 43,125 |
Diluted net income per share | $ 0.29 | $ 0.34 | $ 1.65 | $ 0.83 |
Diluted weighted average shares outstanding | 45,869 | 44,770 | 45,731 | 44,597 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 13,446 | $ 15,432 | $ 75,323 | $ 37,217 |
Other comprehensive gain (loss): | ||||
Foreign currency translation gains (losses) | 1,557 | (5,873) | 10,406 | (6,760) |
Net unrealized losses on marketable securities | (401) | (269) | (446) | (137) |
Other comprehensive gain (loss) | 1,156 | (6,142) | 9,960 | (6,897) |
Comprehensive income | $ 14,602 | $ 9,290 | $ 85,283 | $ 30,320 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Operating activities: | ||
Net income | $ 75,323 | $ 37,217 |
Adjustments required to reconcile net income to net cash provided by operating activities: | ||
Depreciation expense | 8,100 | 4,488 |
Bad debt expense | (8) | (12) |
Stock-based compensation | 29,170 | 24,521 |
Write-down of inventory and other assets | 3,212 | 2,059 |
Excess tax benefit from stock-based awards | (4,595) | |
Deferred tax provision | 34,740 | 18,817 |
Change in fair value of contingent consideration | 1,270 | 612 |
Changes in assets and liabilities: | ||
Accounts receivable | (10,342) | (7,555) |
Inventories | (11,974) | (8,615) |
Prepaid expenses and other assets | (1,033) | (3,923) |
Accounts payable | 2,595 | 3,542 |
Accrued expenses and other liabilities | 3,874 | 11,040 |
Deferred revenue | 1,220 | 265 |
Net cash provided by operating activities | 136,147 | 77,861 |
Investing activities: | ||
Purchases of marketable securities | (209,834) | (177,591) |
Proceeds from the sale and maturity of marketable securities | 148,095 | 144,670 |
Purchase of other investment | (6,400) | (149) |
Purchases of property and equipment | (44,168) | (24,039) |
Net cash used for investing activities | (112,307) | (57,109) |
Financing activities: | ||
Proceeds from the exercise of stock options | 7,626 | 8,265 |
Excess tax benefit from stock-based awards | 4,595 | |
Taxes paid related to net share settlement of vesting of stock awards | (19,860) | (19,898) |
Proceeds from the issuance of stock under employee stock purchase plan | 1,063 | 769 |
Principal payments on capital lease obligation | (517) | (264) |
Net cash used for financing activities | (11,688) | (6,533) |
Effect of exchange rate changes on cash | (690) | (1,381) |
Net increase in cash and cash equivalents | 11,462 | 12,838 |
Cash and cash equivalents at beginning of period | 39,040 | 48,231 |
Cash and cash equivalents at end of period | 50,502 | 61,069 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 845 | 735 |
Cash paid for interest on capital lease obligation | 302 | 223 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Property and equipment under capital lease obligation | 16,784 | |
Property and equipment in accounts payable and accrued expenses | $ 3,836 | $ 3,717 |
Nature of Business
Nature of Business | 9 Months Ended |
Dec. 31, 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 | 9 Months Ended |
Dec. 31, 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 and nine months ended December 31, 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 ASU 2016-09 for the three and nine months ended December 31, 2017: Description of Change: Impact of Change Upon Adoption on April 1, 2017 and for the Three and Nine Months Ended December 31, 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 and nine months ended December 31, 2017, included excess tax benefits of $3.2 million and $24.5 million, respectively. These recognized excess tax benefits resulted from restricted stock units that vested or stock options that were exercised during the three and nine months ended December 31, 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 $24.5 million for the nine months ended December 31, 2017. The statement of cash flows for the prior period has 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 The Company is assessing all of the potential impacts of the revenue recognition guidance. Although the Company has not yet completed its assessment of the new revenue recognition guidance, the Company believes that the new revenue recognition guidance generally supports the recognition of revenue at a point-in-time for product sales and over an extended period of time for preventative maintenance service agreements, which is consistent with its current revenue recognition model. The Company does anticipate that the new revenue standard will result in expanded financial statement disclosures relating to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company is reviewing and updating its internal controls and processes over revenue recognition in order to prepare for the adoption of and ongoing accounting under the new standard. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU 2016-02, Leases |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
Dec. 31, 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 and nine months ended December 31, 2017 and 2016 were as follows (in thousands, except per share data): For the Three Months Ended December 31, For the Nine Months Ended December 31, 2017 2016 2017 2016 Basic Net Income Per Share Net income $ 13,446 $ 15,432 $ 75,323 $ 37,217 Weighted average shares used in computing basic net income per share 44,247 43,431 44,095 43,125 Net income per share - basic $ 0.30 $ 0.36 $ 1.71 $ 0.86 For the Three Months Ended December 31, For the Nine Months Ended December 31, 2017 2016 2017 2016 Diluted Net Income Per Share Net income $ 13,446 $ 15,432 $ 75,323 $ 37,217 Weighted average shares used in computing basic net income per share 44,247 43,431 44,095 43,125 Effect of dilutive securities 1,622 1,339 1,636 1,472 Weighted average shares used in computing diluted net income per share 45,869 44,770 45,731 44,597 Net income per share - diluted $ 0.29 $ 0.34 $ 1.65 $ 0.83 For the three and nine months ended December 31, 2017, approximately 2,600 and 4,800 shares underlying out-of-the-money stock options, respectively, were excluded in the computation of diluted earnings per share because their effect would have been anti-dilutive. Also, approximately 128,000 restricted shares in each of the three and nine months ended December 31, 2017, respectively, related to performance-based and market-based awards for which milestones have not been met, were not included in the computation of diluted earnings per share. For the three and nine months ended December 31, 2016, approximately 28,000 185,000 |
Marketable Securities and Fair
Marketable Securities and Fair Value Measurements | 9 Months Ended |
Dec. 31, 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. At December 31, 2017 and March 31, 2017, the Company’s financial instruments consist primarily of cash and cash equivalents, marketable securities, accounts receivable, accounts payable and contingent consideration. The carrying amounts of accounts receivable and accounts payable are considered reasonable estimates of their fair value, due to the short maturity of these investments. The Company’s marketable securities at December 31, 2017 and March 31, 2017 are invested in the following: Amortized Gross Unrealized Gross Unrealized Fair Market Cost Gains Losses Value (in $000's) December 31, 2017: Short-term U.S. Treasury mutual fund securities $ 21,068 $ — $ (25 ) $ 21,043 Short-term government-backed securities 152,586 — (343 ) 152,243 Short-term corporate debt securities 77,592 3 (130 ) 77,465 Long-term government-backed securities 47,587 — (96 ) 47,491 Long-term corporate debt securities 1,997 — (3 ) 1,994 $ 300,830 $ 3 $ (597 ) $ 300,236 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 December 31, 2017: (in $000's) Assets Short-term U.S. Treasury mutual fund securities $ — $ 21,043 $ — $ 21,043 Short-term government-backed securities — 152,243 — 152,243 Short-term corporate debt securities — 77,465 — 77,465 Long-term government-backed securities — 47,491 — 47,491 Long-term corporate debt securities — 1,994 — 1,994 Liabilities Contingent consideration — — 10,423 10,423 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 related to the development of the future Impella ECP TM 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 ECP requires significant management judgment or estimation and is calculated using the following valuation methods: Fair Value at December 31, 2017 (in $000's) Valuation Methodology Significant Unobservable Input Weighted Average (range, if applicable) Clinical and regulatory milestone $ 5,654 Probability weighted income approach Projected fiscal year of milestone payments 2019 to 2022 Discount rate 2.8% to 3.3% Probability of occurrence Probability adjusted level of 40% for the base case scenario and 12% to 30% for various upside and downside scenarios Revenue-based milestone 4,769 Monte Carlo simulation model Projected fiscal year of milestone payments 2023 to 2035 Discount rate 18% Expected volatility for forecasted revenues 50% $ 10,423 The following table summarizes the change in fair value, as determined by Level 3 inputs, of the contingent consideration for the three and nine months ended December 31, 2017 and 2016: For the Three Months Ended December 31, For the Nine Months Ended December 31, 2017 2016 2017 2016 (in $000's) (in $000's) Level 3 liabilities, beginning balance $ 9,835 $ 7,749 $ 9,153 $ 7,563 Additions — — — — Payments — — — — Change in fair value 588 426 1,270 612 Level 3 liabilities, ending balance $ 10,423 $ 8,175 $ 10,423 $ 8,175 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, heart pump and other medical device technologies. The aggregate carrying amount of the Company’s other investments was $12.6 million and $7.2 million at December 31, 2017 and March 31, 2017, respectively, and is classified within other assets in the unaudited condensed consolidated balance sheets. During the nine months ended December 31, 2017, the Company made investments of $6.4 million in private medical device companies. These investments are accounted for using the cost method and are evaluated for impairment and 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. |
Property and Equipment
Property and Equipment | 9 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | Note 5. Property and Equipment The components of property and equipment are as follows: December 31, 2017 March 31, 2017 (in $000's) Land $ 7,550 $ 4,046 Building and building improvements 61,086 10,900 Capital lease asset — 16,784 Leasehold improvements 2,173 34,854 Machinery and equipment 38,336 27,989 Furniture and fixtures 7,503 3,899 Construction in progress 15,958 9,257 Total cost 132,606 107,729 Less accumulated depreciation (24,629 ) (19,952 ) $ 107,977 $ 87,777 In October 2017, the Company entered into a purchase and sale agreement to acquire the Company’s headquarters that it had been leasing in Danvers, Massachusetts. The total acquisition cost for the land and building was approximately $16.5 million, with $3.0 million being recorded to land and $13.0 million being recorded to building and building improvements. In addition, the Company reclassified $32.6 million in leasehold improvements to building and building improvements due to the termination of the lease agreement upon the property acquisition. 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. The Company acquired the property in February 2017. The original 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 | 9 Months Ended |
Dec. 31, 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 December 31, 2017 and March 31, 2017 was $34.8 million and $31.0 million, respectively, and has been recorded in connection with the Company’s acquisition of Impella Cardiosystems AG, 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 3,769 Balance at December 31, 2017 $ 34,814 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 December 31, 2017 and March 31, 2017 was $16.2 million and $14.5 million, respectively, and was 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 flow estimates for the future Impella ECP TM The carrying value of the Company’s IPR&D assets and the change in the balance for the nine months ended December 31, 2017 are as follows: (in $000's) Balance at March 31, 2017 $ 14,482 Foreign currency translation impact 1,759 Balance at December 31, 2017 $ 16,241 |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Dec. 31, 2017 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | Note 7. Accrued Expenses Accrued expenses consist of the following: December 31, 2017 March 31, 2017 (in $000's) Employee compensation $ 26,077 $ 23,290 Sales and income taxes 4,612 3,180 Professional, legal and accounting fees 3,294 2,019 Research and development 2,271 2,349 Marketing 2,254 1,827 Warranty 1,010 717 Accrued capital expenditures — 2,300 Other 2,047 2,021 $ 41,565 $ 37,703 Employee compensation consists primarily of accrued bonuses, accrued commissions and accrued employee benefits at December 31, 2017 and March 31, 2017. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Dec. 31, 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 and nine months ended December 31, 2017 and 2016: For the Three Months Ended December 31, For the Nine Months Ended December 31, 2017 2016 2017 2016 (in $000's) (in $000's) Cost of product revenue $ 489 $ 234 $ 1,221 $ 754 Research and development 1,673 900 4,217 4,793 Selling, general and administrative 9,070 5,340 23,732 18,974 $ 11,232 $ 6,474 $ 29,170 $ 24,521 Stock Options The following table summarizes the stock option activity for the nine months ended December 31, 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 152 140.41 Exercised (371 ) 20.54 Cancelled and expired (55 ) 100.57 Outstanding at end of period 1,372 $ 44.49 5.42 $ 196,132 Exercisable at end of period 1,048 $ 24.03 4.42 $ 171,235 Options vested and expected to vest at end of period 1,347 $ 43.85 5.37 $ 193,386 The aggregate intrinsic value of options exercised was $46.1 million for the nine months ended December 31, 2017. The total fair value of options that vested during the nine months ended December 31, 2017 was $4.8 million. The remaining unrecognized stock-based compensation expense for unvested stock option awards at December 31, 2017 was approximately $10.6 million and the estimated weighted-average period over which this cost will be recognized is 2.4 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 and nine months ended December 31, 2017 and 2016 was as follows: For the Three Months Ended December 31, For the Nine Months Ended December 31, 2017 2016 2017 2016 Weighted average grant-date fair value $ 70.14 $ 48.15 $ 51.20 $ 42.21 Valuation assumptions: Risk-free interest rate 2.13 % 1.37 % 1.86 % 1.32 % Expected option life (years) 4.08 4.17 4.07 4.14 Expected volatility 42.2 % 48.5 % 43.6 % 49.5 % Restricted Stock Units The following table summarizes activity of restricted stock units for the nine months ended December 31, 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 295 $ 136.80 Vested (363 ) $ 53.16 Forfeited (94 ) $ 98.08 Restricted stock units at end of period 894 $ 108.35 The remaining unrecognized compensation expense for outstanding restricted stock units, including performance and market-based awards, as of December 31, 2017 was $38.5 million and the estimated weighted-average period over which this cost will be recognized is 2.0 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, which vest upon achievement of prescribed service milestones by the award recipients and performance milestones by the Company. As of December 31, 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 | 9 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9. Income Taxes On December 22, 2017, the Tax Cut and Jobs Act, or the Tax Reform Act, was signed into law. The Tax Reform Act included significant changes to existing law, including among other items, a reduction to the U.S. federal statutory corporate tax rate from 35% to 21% effective January 1, 2018. ASC 740, Income Taxes (Topic 740) T the income tax provision for the three and nine months ended December 31, 2017 The blended U.S. federal statutory corporate tax rate of 31.5% represents the weighted average rate between the pre-enactment U.S. federal statutory corporate tax rate of 35% prior to the January 1, 2018 effective date and the post-enactment U.S. federal statutory corporate tax rate of 21% thereafter. The Company’s income tax provision was $32.2 million and $36.6 million for the three and nine months ended December 31, 2017, respectively, and $10.4 million and $24.8 million for the three and nine months ended December 31, 2016, respectively. The Company’s effective tax rate was 70.6% and 32.7% for the three and nine months ended December 31, 2017, respectively, and 40.2% and 40.0% for the three and nine months ended December 31, 2016, respectively. Consistent with guidance issued by the SEC, which provides for a measurement period of one year from the enactment date to finalize the accounting for effects of the Tax Reform Act, the Company provisionally recorded an income tax expense of $22.0 million during the three and nine months ended December 31, 2017, As The significant differences between the statutory income tax rate and effective income tax rate for the three and nine months ended December 31, 2017 and 2016 were as follows: For the Three Months Ended December 31, For the Nine Months Ended December 31, 2017 2016 2017 2016 Statutory income tax rate 31.5 % 35.0 % 31.5 % 35.0 % Increase resulting from: Excess tax benefits from stock-based awards (7.0 ) — (21.9 ) — Credits (2.1 ) (1.2 ) (2.1 ) (1.2 ) State taxes, net 3.7 3.3 3.7 3.3 Permanent differences 1.7 2.7 1.7 2.7 Effect of the Tax Reform Act on net deferred tax assets 42.1 — 19.6 — Other 0.7 0.4 0.2 0.2 Effective tax rate 70.6 % 40.2 % 32.7 % 40.0 % The recently enacted Tax Reform Act allows for a 100% deduction for the repatriation of foreign subsidiary earnings with minimal U.S. income tax consequences other than the one-time deemed repatriation toll charge 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 the Company’s federal tax return for fiscal 2016 for examination. In September 2017, the Company was notified by German tax authorities that our ECP subsidiary in Germany will be audited for the year ended December 31, 2014 and the three months ended March 31, 2015. 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 | 9 Months Ended |
Dec. 31, 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 October 2017, the Company entered into a purchase and sale agreement to purchase its corporate headquarters for approximately $16.5 million and terminated its existing lease arrangement (See Note 5). In February 2017, the Company entered into a lease agreement for an additional 21,603 square feet of office space in Danvers, Massachusetts, which expires on July 31, 2022. In December 2017, the Company entered into an amendment to this lease to extend the lease term through August 31, 2025 and to add an additional 6,607 square feet of space in which rent would begin around June 1, 2018. The amendment also allows the Company a right of first offer to purchase the property from January 1, 2018 through August 31, 2035, if the lessor decides to sell the building or receives an offer to purchase the building from a third-party buyer. The annual rent expense for the lease is estimated to be $0.4 million. In September 2016, the Company entered into a lease agreement in Berlin, Germany which commenced in May 2017 and expires in May 2024. The annual rent expense for the lease is estimated to be $0.3 million. In October 2016, t he Company entered into a lease agreement for an office in Tokyo, Japan and expires in September 2021. The office houses administrative, regulatory, and training personnel in connection with the Company’s commercial launch in Japan. The annual rent expense for the lease is estimated to be $0.9 million. 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. In April 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 with the government in this investigation and is exploring 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, a subsidiary of Abbott Laboratories, 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 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. 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 Company’s patents were upheld in an amended form to focus on the structure and interaction of the magnets in the clutch. The Federal Patent Court found certain unamended claims to be invalid. The Company is appealing the decision with respect to the unamended claims. 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, a European pigtail patent, and the German pigtail patent. The infringement trial has been stayed, pending resolution of the German nullity actions. In February 2017, Thoratec filed an opposition in the European Patent Office against a Company owned patent acquired in connection with the acquisition of ECP and AIS relating to a housing structure for an expandable pump. The Company filed an initial response to the opposition in July 2017. In December 2017, Thoratec filed an opposition in the European Patent Office against a Company owned patent acquired in connection with the acquisition of ECP and AIS relating to a pump having a shaft cap with an atraumatic ball. The Company’s due date for responding to the opposition is May 27, 2018. In December 2015, the Company received a letter from Maquet Cardiovascular LLC, or Maquet, a subsidiary of the Getinge Group, 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 notified the Company that its pending U.S. patent application had been issued as a U.S. patent, 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. In May 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 a 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 issued as a patent on October 17, 2017. These four issued patents will 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 first 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 claims, Lanham Act claims, and the trademark cancellation claims. On October 26, 2017, Maquet filed an amended answer, adding a new counterclaim alleging infringement of an additional seventh patent. Maquet did not seek leave to amend the pleadings and did not first consult with the Company concerning this addition. On November 11, 2017, after Maquet refused to withdraw the patent, the Company filed a motion to strike the seventh patent of Maquet’s counterclaims on the grounds that Maquet did not seek leave to add the patent and had amended its pleadings after the deadline set by the Court. On November 15, 2017, Maquet informed the Court that it would agree to voluntarily withdraw the seventh patent. In response on November 22, 2017, Maquet filed a second lawsuit in D. Mass alleging that the Company’s Impella 2.5, Impella CP, and Impella 5.0 heart pumps infringe certain claims of the seventh patent. In the complaint Maquet seeks injunctive relief and monetary damages in the form of a reasonable royalty, with three times the amount for alleged willful infringement. Discovery is ongoing and the Markman Hearing on claim interpretation has been rescheduled for March 13, 2018. With regard to the first six Maquet patents mentioned above, 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. In September and October 2017, the PTAB denied institution on these IPR requests filed by the Company. In September 2017, the Company filed additional IPRs and the institution decisions are expected in March 2018. The Company cannot estimate what the potential outcome of these claims will be at this time. Discovery is ongoing and the hearing on claim interpretation is scheduled for March 2018. The Company is unable to estimate the 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 | 9 Months Ended |
Dec. 31, 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 11% of total product revenue in each of the three and nine months ended December 31, 2017, respectively, and 9% of total product revenue in each of the three and nine months ended December 31, 2016, respectively. Most of the Company’s long-lived assets are located in the U.S. except for $ million and $23.2 million at December 31, 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) | 9 Months Ended |
Dec. 31, 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 ASU 2016-09 for the three and nine months ended December 31, 2017: Description of Change: Impact of Change Upon Adoption on April 1, 2017 and for the Three and Nine Months Ended December 31, 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 and nine months ended December 31, 2017, included excess tax benefits of $3.2 million and $24.5 million, respectively. These recognized excess tax benefits resulted from restricted stock units that vested or stock options that were exercised during the three and nine months ended December 31, 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 $24.5 million for the nine months ended December 31, 2017. The statement of cash flows for the prior period has 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 The Company is assessing all of the potential impacts of the revenue recognition guidance. Although the Company has not yet completed its assessment of the new revenue recognition guidance, the Company believes that the new revenue recognition guidance generally supports the recognition of revenue at a point-in-time for product sales and over an extended period of time for preventative maintenance service agreements, which is consistent with its current revenue recognition model. The Company does anticipate that the new revenue standard will result in expanded financial statement disclosures relating to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company is reviewing and updating its internal controls and processes over revenue recognition in order to prepare for the adoption of and ongoing accounting under the new standard. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities 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) | 9 Months Ended |
Dec. 31, 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) | 9 Months Ended |
Dec. 31, 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 and nine months ended December 31, 2017 and 2016 were as follows (in thousands, except per share data): For the Three Months Ended December 31, For the Nine Months Ended December 31, 2017 2016 2017 2016 Basic Net Income Per Share Net income $ 13,446 $ 15,432 $ 75,323 $ 37,217 Weighted average shares used in computing basic net income per share 44,247 43,431 44,095 43,125 Net income per share - basic $ 0.30 $ 0.36 $ 1.71 $ 0.86 For the Three Months Ended December 31, For the Nine Months Ended December 31, 2017 2016 2017 2016 Diluted Net Income Per Share Net income $ 13,446 $ 15,432 $ 75,323 $ 37,217 Weighted average shares used in computing basic net income per share 44,247 43,431 44,095 43,125 Effect of dilutive securities 1,622 1,339 1,636 1,472 Weighted average shares used in computing diluted net income per share 45,869 44,770 45,731 44,597 Net income per share - diluted $ 0.29 $ 0.34 $ 1.65 $ 0.83 |
Marketable Securities and Fai21
Marketable Securities and Fair Value Measurements (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Marketable Securities | The Company’s marketable securities at December 31, 2017 and March 31, 2017 are invested in the following: Amortized Gross Unrealized Gross Unrealized Fair Market Cost Gains Losses Value (in $000's) December 31, 2017: Short-term U.S. Treasury mutual fund securities $ 21,068 $ — $ (25 ) $ 21,043 Short-term government-backed securities 152,586 — (343 ) 152,243 Short-term corporate debt securities 77,592 3 (130 ) 77,465 Long-term government-backed securities 47,587 — (96 ) 47,491 Long-term corporate debt securities 1,997 — (3 ) 1,994 $ 300,830 $ 3 $ (597 ) $ 300,236 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 December 31, 2017: (in $000's) Assets Short-term U.S. Treasury mutual fund securities $ — $ 21,043 $ — $ 21,043 Short-term government-backed securities — 152,243 — 152,243 Short-term corporate debt securities — 77,465 — 77,465 Long-term government-backed securities — 47,491 — 47,491 Long-term corporate debt securities — 1,994 — 1,994 Liabilities Contingent consideration — — 10,423 10,423 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 ECP requires significant management judgment or estimation and is calculated using the following valuation methods: Fair Value at December 31, 2017 (in $000's) Valuation Methodology Significant Unobservable Input Weighted Average (range, if applicable) Clinical and regulatory milestone $ 5,654 Probability weighted income approach Projected fiscal year of milestone payments 2019 to 2022 Discount rate 2.8% to 3.3% Probability of occurrence Probability adjusted level of 40% for the base case scenario and 12% to 30% for various upside and downside scenarios Revenue-based milestone 4,769 Monte Carlo simulation model Projected fiscal year of milestone payments 2023 to 2035 Discount rate 18% Expected volatility for forecasted revenues 50% $ 10,423 |
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 and nine months ended December 31, 2017 and 2016: For the Three Months Ended December 31, For the Nine Months Ended December 31, 2017 2016 2017 2016 (in $000's) (in $000's) Level 3 liabilities, beginning balance $ 9,835 $ 7,749 $ 9,153 $ 7,563 Additions — — — — Payments — — — — Change in fair value 588 426 1,270 612 Level 3 liabilities, ending balance $ 10,423 $ 8,175 $ 10,423 $ 8,175 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Components of Property and Equipment | The components of property and equipment are as follows: December 31, 2017 March 31, 2017 (in $000's) Land $ 7,550 $ 4,046 Building and building improvements 61,086 10,900 Capital lease asset — 16,784 Leasehold improvements 2,173 34,854 Machinery and equipment 38,336 27,989 Furniture and fixtures 7,503 3,899 Construction in progress 15,958 9,257 Total cost 132,606 107,729 Less accumulated depreciation (24,629 ) (19,952 ) $ 107,977 $ 87,777 |
Goodwill and In-Process Resea23
Goodwill and In-Process Research and Development (Tables) | 9 Months Ended |
Dec. 31, 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 3,769 Balance at December 31, 2017 $ 34,814 |
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 nine months ended December 31, 2017 are as follows: (in $000's) Balance at March 31, 2017 $ 14,482 Foreign currency translation impact 1,759 Balance at December 31, 2017 $ 16,241 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | Accrued expenses consist of the following: December 31, 2017 March 31, 2017 (in $000's) Employee compensation $ 26,077 $ 23,290 Sales and income taxes 4,612 3,180 Professional, legal and accounting fees 3,294 2,019 Research and development 2,271 2,349 Marketing 2,254 1,827 Warranty 1,010 717 Accrued capital expenditures — 2,300 Other 2,047 2,021 $ 41,565 $ 37,703 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Dec. 31, 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 and nine months ended December 31, 2017 and 2016: For the Three Months Ended December 31, For the Nine Months Ended December 31, 2017 2016 2017 2016 (in $000's) (in $000's) Cost of product revenue $ 489 $ 234 $ 1,221 $ 754 Research and development 1,673 900 4,217 4,793 Selling, general and administrative 9,070 5,340 23,732 18,974 $ 11,232 $ 6,474 $ 29,170 $ 24,521 |
Summary of Stock Option Activity | The following table summarizes the stock option activity for the nine months ended December 31, 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 152 140.41 Exercised (371 ) 20.54 Cancelled and expired (55 ) 100.57 Outstanding at end of period 1,372 $ 44.49 5.42 $ 196,132 Exercisable at end of period 1,048 $ 24.03 4.42 $ 171,235 Options vested and expected to vest at end of period 1,347 $ 43.85 5.37 $ 193,386 |
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 and nine months ended December 31, 2017 and 2016 was as follows: For the Three Months Ended December 31, For the Nine Months Ended December 31, 2017 2016 2017 2016 Weighted average grant-date fair value $ 70.14 $ 48.15 $ 51.20 $ 42.21 Valuation assumptions: Risk-free interest rate 2.13 % 1.37 % 1.86 % 1.32 % Expected option life (years) 4.08 4.17 4.07 4.14 Expected volatility 42.2 % 48.5 % 43.6 % 49.5 % |
Summary of Restricted Stock Units Activity | The following table summarizes activity of restricted stock units for the nine months ended December 31, 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 295 $ 136.80 Vested (363 ) $ 53.16 Forfeited (94 ) $ 98.08 Restricted stock units at end of period 894 $ 108.35 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Differences Between Statutory Income Tax Rate and Effective Income Tax Rate | The significant differences between the statutory income tax rate and effective income tax rate for the three and nine months ended December 31, 2017 and 2016 were as follows: For the Three Months Ended December 31, For the Nine Months Ended December 31, 2017 2016 2017 2016 Statutory income tax rate 31.5 % 35.0 % 31.5 % 35.0 % Increase resulting from: Excess tax benefits from stock-based awards (7.0 ) — (21.9 ) — Credits (2.1 ) (1.2 ) (2.1 ) (1.2 ) State taxes, net 3.7 3.3 3.7 3.3 Permanent differences 1.7 2.7 1.7 2.7 Effect of the Tax Reform Act on net deferred tax assets 42.1 — 19.6 — Other 0.7 0.4 0.2 0.2 Effective tax rate 70.6 % 40.2 % 32.7 % 40.0 % |
Basis of Preparation and Summ27
Basis of Preparation and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 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 | $ 4,595 | |||
Excess tax benefits related to restricted stock unit vestings or stock option exercises, increase in operating activities | $ 4,595 | |||
ASU 2016-09 | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Excess tax benefit | $ 3,200 | $ 24,500 | ||
Excess tax benefits related to restricted stock unit vestings or stock option exercises, decrease in financing activities | 24,500 | |||
Excess tax benefits related to restricted stock unit vestings or stock option exercises, increase in operating activities | $ 24,500 | |||
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 | Dec. 31, 2017 | Apr. 01, 2017 | Mar. 31, 2017 |
Balance | $ 632,482 | $ 529,152 | $ 452,071 |
Common stock, Outstanding | 44,271,905 | 43,673,286 | |
Cumulative effect of adoption of new accounting standard | 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 of adoption of new accounting standard | 1,835 | ||
Accumulated Deficit | |||
Balance | 28,287 | (46,959) | |
Cumulative effect of adoption of new accounting standard | 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 | 9 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Basic Net Income Per Share | ||||
Net income | $ 13,446 | $ 15,432 | $ 75,323 | $ 37,217 |
Weighted average shares used in computing basic net income per share | 44,247 | 43,431 | 44,095 | 43,125 |
Net income per share - basic | $ 0.30 | $ 0.36 | $ 1.71 | $ 0.86 |
Diluted Net Income Per Share | ||||
Net income | $ 13,446 | $ 15,432 | $ 75,323 | $ 37,217 |
Weighted average shares used in computing basic net income per share | 44,247 | 43,431 | 44,095 | 43,125 |
Effect of dilutive securities | 1,622 | 1,339 | 1,636 | 1,472 |
Weighted average shares used in computing diluted net income per share | 45,869 | 44,770 | 45,731 | 44,597 |
Net income per share - diluted | $ 0.29 | $ 0.34 | $ 1.65 | $ 0.83 |
Net Income Per Share - Addition
Net Income Per Share - Additional Information (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 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 | 2,600 | 28,000 | 4,800 | 17,000 |
Restricted Stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from the calculation of diluted weighted average shares outstanding | 128,000 | 185,000 | 128,000 | 185,000 |
Investable Marketable Securitie
Investable Marketable Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Mar. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | $ 300,830 | $ 238,198 |
Gross Unrealized Gains | 3 | 6 |
Gross Unrealized Losses | (597) | (153) |
Fair Market Value | 300,236 | 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 | 21,068 | 45,199 |
Gross Unrealized Losses | (25) | (13) |
Fair Market Value | 21,043 | 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 | 152,586 | 90,199 |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | (343) | (87) |
Fair Market Value | 152,243 | 90,113 |
Government-backed securities | Long-term Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 47,587 | 43,484 |
Gross Unrealized Gains | 5 | |
Gross Unrealized Losses | (96) | (18) |
Fair Market Value | 47,491 | 43,471 |
Corporate Debt Securities | Short-term Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 77,592 | 55,465 |
Gross Unrealized Gains | 3 | |
Gross Unrealized Losses | (130) | (31) |
Fair Market Value | 77,465 | 55,434 |
Corporate Debt Securities | Long-term Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 1,997 | 1,853 |
Gross Unrealized Losses | (3) | (1) |
Fair Market Value | $ 1,994 | $ 1,852 |
Financial Instruments Recorded
Financial Instruments Recorded at Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Mar. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | $ 300,236 | $ 238,051 |
Contingent consideration | 10,423 | 9,153 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | 10,423 | 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 | 21,043 | 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 | 21,043 | 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 | 152,243 | 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 | 47,491 | 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 | 152,243 | 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 | 47,491 | 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 | 77,465 | 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 | 1,994 | 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 | 77,465 | 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 | $ 1,994 | $ 1,852 |
Marketable Securities and Fai33
Marketable Securities and Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | ||
Jul. 31, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Aggregate carrying amount of other investments | $ 12,600 | $ 7,200 | ||
Additional investments in private medical device company | $ 6,400 | $ 149 | ||
ECP Entwicklungsgesellschaft mbH | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Payments to acquire businesses, cash paid | $ 13,000 | |||
Potential payouts payments | $ 15,000 |
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 | 9 Months Ended | |
Jul. 31, 2014 | Dec. 31, 2017 | Mar. 31, 2017 | |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Contingent consideration | $ 10,423 | $ 9,153 | |
ECP Entwicklungsgesellschaft mbH | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Discount rate | 21.00% | ||
Level 3 | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Contingent consideration | 10,423 | $ 9,153 | |
Level 3 | ECP Entwicklungsgesellschaft mbH | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Contingent consideration | 10,423 | ||
Level 3 | ECP Entwicklungsgesellschaft mbH | Probability weighted income approach | Clinical and regulatory milestone | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Contingent consideration | $ 5,654 | ||
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 | 2.80% | ||
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 | 12.00% | ||
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 | 30.00% | ||
Level 3 | ECP Entwicklungsgesellschaft mbH | Monte Carlo simulation model | Revenue-based milestone | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Contingent consideration | $ 4,769 | ||
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 | 9 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Level 3 liabilities, beginning balance | $ 9,835 | $ 7,749 | $ 9,153 | $ 7,563 |
Additions | 0 | 0 | 0 | 0 |
Payments | 0 | 0 | 0 | 0 |
Change in fair value | 588 | 426 | 1,270 | 612 |
Level 3 liabilities, ending balance | $ 10,423 | $ 8,175 | $ 10,423 | $ 8,175 |
Components of Property and Equi
Components of Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Mar. 31, 2017 |
Property Plant And Equipment [Abstract] | ||
Land | $ 7,550 | $ 4,046 |
Building and building improvements | 61,086 | 10,900 |
Capital lease asset | 16,784 | |
Leasehold improvements | 2,173 | 34,854 |
Machinery and equipment | 38,336 | 27,989 |
Furniture and fixtures | 7,503 | 3,899 |
Construction in progress | 15,958 | 9,257 |
Total cost | 132,606 | 107,729 |
Less accumulated depreciation | (24,629) | (19,952) |
Property and equipment, net | $ 107,977 | $ 87,777 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) $ in Thousands | 1 Months Ended | 9 Months Ended | ||
Oct. 31, 2017USD ($) | Feb. 28, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)ft² | |
Property Plant And Equipment [Line Items] | ||||
Acquisition cost for property and equipment | $ 44,168 | $ 24,039 | ||
Danvers | ||||
Property Plant And Equipment [Line Items] | ||||
Reclassification of leasehold improvement to building and building improvements | $ 32,600 | |||
Danvers | Land and Building | ||||
Property Plant And Equipment [Line Items] | ||||
Acquisition cost for property and equipment | 16,500 | |||
Danvers | Land | ||||
Property Plant And Equipment [Line Items] | ||||
Acquisition cost for property and equipment | 3,000 | |||
Danvers | Building and Building Improvements | ||||
Property Plant And Equipment [Line Items] | ||||
Acquisition cost for property and equipment | $ 13,000 | |||
Europe | Lease Agreements | ||||
Property Plant And Equipment [Line Items] | ||||
Office space under lease | ft² | 33,000 | |||
Europe | Land and Building | ||||
Property Plant And Equipment [Line Items] | ||||
Acquisition cost for property and equipment | $ 12,600 | |||
Europe | Land | ||||
Property Plant And Equipment [Line Items] | ||||
Acquisition cost for property and equipment | 4,000 | |||
Europe | Building and Building Improvements | ||||
Property Plant And Equipment [Line Items] | ||||
Acquisition cost for property and equipment | $ 8,600 |
Goodwill and In-Process Resea38
Goodwill and In-Process Research and Development - Additional Information (Detail) - USD ($) | 1 Months Ended | ||
Jul. 31, 2014 | Dec. 31, 2017 | Mar. 31, 2017 | |
Goodwill [Line Items] | |||
Goodwill | $ 34,814,000 | $ 31,045,000 | |
Accumulated impairment loss, goodwill | 0 | ||
In-process research and development | 16,241,000 | 14,482,000 | |
ECP Entwicklungsgesellschaft mbH | |||
Goodwill [Line Items] | |||
In-process research and development | $ 16,200,000 | $ 14,500,000 | |
Fair value inputs, discount rate | 21.00% |
Goodwill Activity (Detail)
Goodwill Activity (Detail) $ in Thousands | 9 Months Ended |
Dec. 31, 2017USD ($) | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Beginning balance | $ 31,045 |
Foreign currency translation impact | 3,769 |
Ending balance | $ 34,814 |
Carrying value of In-Process Re
Carrying value of In-Process Research and Development (Detail) $ in Thousands | 9 Months Ended |
Dec. 31, 2017USD ($) | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Beginning balance | $ 14,482 |
Foreign currency translation impact | 1,759 |
Ending balance | $ 16,241 |
Accrued Expenses (Detail)
Accrued Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Mar. 31, 2017 |
Payables and Accruals [Abstract] | ||
Employee compensation | $ 26,077 | $ 23,290 |
Sales and income taxes | 4,612 | 3,180 |
Professional, legal and accounting fees | 3,294 | 2,019 |
Research and development | 2,271 | 2,349 |
Marketing | 2,254 | 1,827 |
Warranty | 1,010 | 717 |
Accrued capital expenditures | 2,300 | |
Other | 2,047 | 2,021 |
Accrued expenses | $ 41,565 | $ 37,703 |
Stock-Based Compensation Recogn
Stock-Based Compensation Recognized (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | $ 11,232 | $ 6,474 | $ 29,170 | $ 24,521 |
Cost of product revenue | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 489 | 234 | 1,221 | 754 |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 1,673 | 900 | 4,217 | 4,793 |
Selling, general and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | $ 9,070 | $ 5,340 | $ 23,732 | $ 18,974 |
Summary of Stock Option Activit
Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended |
Dec. 31, 2017 | Mar. 31, 2017 | |
Options | ||
Outstanding at beginning of period | 1,646 | |
Granted | 152 | |
Exercised | (371) | |
Cancelled and expired | (55) | |
Outstanding at end of period | 1,372 | 1,646 |
Exercisable at end of period | 1,048 | |
Options vested and expected to vest at end of period | 1,347 | |
Weighted-Average Exercise Price | ||
Outstanding at beginning of period | $ 32.09 | |
Granted | 140.41 | |
Exercised | 20.54 | |
Cancelled and expired | 100.57 | |
Outstanding at end of period | 44.49 | $ 32.09 |
Exercisable at end of period | 24.03 | |
Options vested and expected to vest at end of period | $ 43.85 | |
Weighted-Average Remaining Contractual Term (years) | ||
Outstanding | 5 years 5 months 1 day | 5 years 5 months 15 days |
Exercisable at end of period | 4 years 5 months 1 day | |
Options vested and expected to vest at end of period | 5 years 4 months 13 days | |
Aggregate Intrinsic Value | ||
Outstanding at end of period | $ 196,132 | |
Exercisable at end of period | 171,235 | |
Options vested and expected to vest at end of period | $ 193,386 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended |
May 31, 2017 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Aggregate intrinsic value of options exercised in period | $ 46.1 | |
Fair value of options vested in period | 4.8 | |
Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized stock-based compensation expense | $ 10.6 | |
Unrecognized stock-based compensation expense, estimated weighted-average recognition period | 2 years 4 months 25 days | |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized stock-based compensation expense | $ 38.5 | |
Unrecognized stock-based compensation expense, estimated weighted-average recognition period | 2 years | |
Restricted share unit issued | 295,000 | |
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 | 9 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average grant-date fair value | $ 70.14 | $ 48.15 | $ 51.20 | $ 42.21 |
Valuation assumptions: | ||||
Risk-free interest rate | 2.13% | 1.37% | 1.86% | 1.32% |
Expected option life (years) | 4 years 29 days | 4 years 2 months 1 day | 4 years 25 days | 4 years 1 month 20 days |
Expected volatility | 42.20% | 48.50% | 43.60% | 49.50% |
Summary of Restricted Stock Uni
Summary of Restricted Stock Units Activity (Detail) - Restricted Stock Units shares in Thousands | 9 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Number of Shares | |
Beginning Balance | shares | 1,056 |
Granted | shares | 295 |
Vested | shares | (363) |
Forfeited | shares | (94) |
Ending Balance | shares | 894 |
Weighted Average Grant Date Fair Value | |
Beginning Balance | $ / shares | $ 80.50 |
Granted | $ / shares | 136.80 |
Vested | $ / shares | 53.16 |
Forfeited | $ / shares | 98.08 |
Ending Balance | $ / shares | $ 108.35 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 22, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 |
Income Taxes [Line Items] | |||||||
U.S. federal statutory corporate tax rate | 35.00% | 35.00% | 35.00% | ||||
Blended U.S. federal statutory corporate income tax rate | 31.50% | 31.50% | |||||
Income tax provision | $ 32,208 | $ 10,394 | $ 36,607 | $ 24,770 | |||
Effective income tax rate | 70.60% | 40.20% | 32.70% | 40.00% | |||
Measurement period | 1 year | ||||||
Income tax expense | $ 22,000 | $ 22,000 | |||||
Repatriation of foreign subsidiary earnings | 100.00% | ||||||
ASU 2016-09 | |||||||
Income Taxes [Line Items] | |||||||
Excess tax benefits from stock-based awards | $ 3,200 | $ 24,500 | |||||
Subsequent Event | |||||||
Income Taxes [Line Items] | |||||||
U.S. federal statutory corporate tax rate | 21.00% |
Differences Between Statutory I
Differences Between Statutory Income Tax Rate and Effective Income Tax Rate (Detail) | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 |
Income Tax Disclosure [Abstract] | |||||
Statutory income tax rate (blended) | 31.50% | 31.50% | |||
Statutory income tax rate | 35.00% | 35.00% | 35.00% | ||
Excess tax benefits from stock-based awards | (7.00%) | (21.90%) | |||
Credits | (2.10%) | (1.20%) | (2.10%) | (1.20%) | |
State taxes, net | 3.70% | 3.30% | 3.70% | 3.30% | |
Permanent differences | 1.70% | 2.70% | 1.70% | 2.70% | |
Effect of the Tax Reform Act on net deferred tax assets | 42.10% | 19.60% | |||
Other | 0.70% | 0.40% | 0.20% | 0.20% | |
Effective tax rate | 70.60% | 40.20% | 32.70% | 40.00% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 1 Months Ended | 9 Months Ended | |||||
Oct. 31, 2017USD ($) | Feb. 28, 2017ft² | Oct. 31, 2016USD ($) | Sep. 30, 2016USD ($) | May 31, 2016 | Sep. 30, 2015Patent | Dec. 31, 2017USD ($)ft² | |
Magnetic Clutch Patents | |||||||
Commitments and Contingencies [Line Items] | |||||||
Patents allegedly infringed upon, number | Patent | 2 | ||||||
European Pigtail Patent | |||||||
Commitments and Contingencies [Line Items] | |||||||
Patents allegedly infringed upon, number | Patent | 1 | ||||||
German Pigtail Patent | |||||||
Commitments and Contingencies [Line Items] | |||||||
Patents allegedly infringed upon, number | Patent | 1 | ||||||
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 | ||||||
Lease Agreements | |||||||
Commitments and Contingencies [Line Items] | |||||||
Corporate headquarters acquisition | $ 16.5 | ||||||
Lease Agreements | Massachusetts | |||||||
Commitments and Contingencies [Line Items] | |||||||
Annual rent expense | $ 0.4 | ||||||
Lease expiration date | Jul. 31, 2022 | ||||||
Extend lease term | Aug. 31, 2025 | ||||||
Additional office space | ft² | 21,603 | 6,607 | |||||
Lease Agreements | Germany | |||||||
Commitments and Contingencies [Line Items] | |||||||
Annual rent expense | $ 0.3 | ||||||
Lease commencement period | 2017-05 | ||||||
Lease expiration period | 2024-05 | ||||||
Lease Agreements | Japan | |||||||
Commitments and Contingencies [Line Items] | |||||||
Annual rent expense | $ 0.9 | ||||||
Lease expiration period | 2021-09 |
Segment and Enterprise Wide D50
Segment and Enterprise Wide Disclosures - Additional Information (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2016 | Dec. 31, 2017USD ($)Segment | Dec. 31, 2016 | Mar. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of business segments | Segment | 1 | ||||
International | |||||
Segment Reporting Information [Line Items] | |||||
Long-lived assets | $ | $ 31.7 | $ 31.7 | $ 23.2 | ||
Customer Concentration Risk | Product Revenue | International | |||||
Segment Reporting Information [Line Items] | |||||
Percentage of revenue accounted | 11.00% | 9.00% | 11.00% | 9.00% |