Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Mar. 31, 2019 | Apr. 30, 2019 | Sep. 28, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Mar. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ABMD | ||
Entity Registrant Name | ABIOMED INC | ||
Entity Central Index Key | 0000815094 | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 45,124,729 | ||
Entity Public Float | $ 19,419,916,261 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 121,021 | $ 42,975 |
Short-term marketable securities | 370,677 | 319,274 |
Accounts receivable, net | 90,809 | 70,010 |
Inventories | 80,942 | 50,204 |
Prepaid expenses and other current assets | 13,748 | 11,808 |
Total current assets | 677,197 | 494,271 |
Long-term marketable securities | 21,718 | 37,502 |
Property and equipment, net | 145,005 | 117,167 |
Goodwill | 32,601 | 35,808 |
In-process research and development | 15,208 | 16,705 |
Long-term deferred tax assets, net | 77,502 | 70,746 |
Other assets | 85,115 | 14,176 |
Total assets | 1,054,346 | 786,375 |
Current liabilities: | ||
Accounts payable | 32,185 | 23,565 |
Accrued expenses and other liabilities | 57,420 | 46,147 |
Deferred revenue | 16,393 | 14,970 |
Total current liabilities | 105,998 | 84,682 |
Other long-term liabilities | 1,061 | 776 |
Contingent consideration | 9,575 | 10,490 |
Long-term deferred tax liabilities | 822 | 903 |
Total liabilities | 117,456 | 96,851 |
Commitments and contingencies (Note 12) | ||
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 - 47,026,226 shares at March 31, 2019 and 46,100,649 shares at March 31, 2018; Outstanding - 45,122,985 shares at March 31, 2019 and 44,375,337 shares at March 31, 2018 | 451 | 444 |
Additional paid in capital | 690,507 | 619,905 |
Retained earnings | 399,473 | 140,457 |
Treasury stock at cost - 1,903,241 shares at March 31, 2019 and 1,725,312 shares at March 31, 2018 | (138,852) | (67,078) |
Accumulated other comprehensive loss | (14,689) | (4,204) |
Total stockholders' equity | 936,890 | 689,524 |
Total liabilities and stockholders' equity | $ 1,054,346 | $ 786,375 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2019 | Mar. 31, 2018 |
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 | 47,026,226 | 46,100,649 |
Common stock, Outstanding | 45,122,985 | 44,375,337 |
Treasury stock, shares | 1,903,241 | 1,725,312 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |||
Income Statement [Abstract] | |||||
Revenue | $ 769,432 | $ 593,749 | $ 445,304 | ||
Costs and expenses: | |||||
Cost of revenue | 129,567 | 98,581 | 70,627 | ||
Research and development | 93,503 | 75,297 | 66,386 | ||
Selling, general and administrative | 321,550 | 262,734 | 218,153 | ||
Costs and Expenses, Total | 544,620 | 436,612 | 355,166 | ||
Income from operations | 224,812 | 157,137 | 90,138 | ||
Other income: | |||||
Investment income, net | 8,166 | 3,688 | 1,554 | ||
Other income (expense), net | 30,382 | (388) | (349) | ||
Nonoperating Income (Expense), Total | 38,548 | [1] | 3,300 | 1,205 | |
Income before income taxes | 263,360 | 160,437 | 91,343 | ||
Income tax provision | 4,344 | [2] | 48,267 | [2],[3] | 39,227 |
Net income | $ 259,016 | $ 112,170 | $ 52,116 | ||
Basic net income per share | $ 5.77 | $ 2.54 | $ 1.21 | ||
Basic weighted average shares outstanding | 44,911 | 44,153 | 43,238 | ||
Diluted net income per share | $ 5.61 | $ 2.45 | $ 1.17 | ||
Diluted weighted average shares outstanding | 46,151 | 45,849 | 44,658 | ||
[1] | In fiscal 2019, the Company invested $25.0 million in medical device company Shockwave Medical. The fair value of this investment as of March 31, 2019 was $56.2 million and the Company recognized a gain of $31.2 million in Other income. | ||||
[2] | On December 22, 2017, the Tax Cuts and Jobs Act, or Tax Reform Act, was enacted into law. This new law, among other items, reduces the U.S. federal statutory corporate income tax rate from 35% to 21% effective January 1, 2018. During the year ended March 31, 2018, the Company recorded tax expense adjustments for $21.4 million related to the revaluation of its deferred taxes due to a reduction of the U.S. federal statutory corporate income tax rate. | ||||
[3] | In the first quarter of fiscal 2018, the Company adopted ASU 2016-09, which requires that all excess tax benefits and tax deficiencies related share-based compensation arrangements be recognized as income tax benefit or expense, instead of in stockholders’ equity as previous guidance required. The income tax provision for the years ended March 31, 2019 and 2018 included excess tax benefits of $69.3 million and $31.0 million, respectively. These recognized excess tax benefits resulted from restricted stock units that vested or stock options that were exercised during the years ended March 31, 2019 and 2018. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 259,016 | $ 112,170 | $ 52,116 |
Other comprehensive (loss) income: | |||
Foreign currency translation (loss) gain | (11,431) | 16,862 | (5,855) |
Net unrealized gain (loss) on marketable securities | 946 | (460) | (211) |
Other comprehensive (loss) income | (10,485) | 16,402 | (6,066) |
Comprehensive income | $ 248,531 | $ 128,572 | $ 46,050 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance at Mar. 31, 2016 | $ 368,775 | $ 426 | $ (26,660) | $ 508,624 | $ (99,075) | $ (14,540) |
Beginning Balance (in shares) at Mar. 31, 2016 | 42,596,228 | 1,376,891 | ||||
Restricted stock units issued | $ 5 | (5) | ||||
Restricted stock units issued (in shares) | 502,417 | |||||
Stock options exercised | 10,660 | $ 8 | 10,652 | |||
Stock options exercised (in shares) | 754,893 | |||||
Stock issued under employee stock purchase plan | 1,720 | 1,720 | ||||
Stock issued under employee stock purchase plan (in shares) | 18,288 | |||||
Stock issued to directors | 67 | 67 | ||||
Stock issued to directors (in shares) | 564 | |||||
Return of common stock to pay withholding taxes on restricted stock | (20,105) | $ (2) | $ (20,103) | |||
Return of common stock to pay withholding taxes on restricted stock (in shares) | (199,104) | 199,104 | ||||
Stock compensation expense | 32,866 | 32,866 | ||||
Excess tax benefit from stock-based awards | 12,038 | 12,038 | ||||
Other comprehensive income (loss) | (6,066) | (6,066) | ||||
Net income | 52,116 | 52,116 | ||||
Ending Balance at Mar. 31, 2017 | 452,071 | $ 437 | $ (46,763) | 565,962 | (46,959) | (20,606) |
Ending Balance (in shares) at Mar. 31, 2017 | 43,673,286 | 1,575,995 | ||||
Cumulative effect of adoption of new accounting standard | 77,081 | 1,835 | 75,246 | |||
Restricted stock units issued | $ 4 | (4) | ||||
Restricted stock units issued (in shares) | 371,940 | |||||
Stock options exercised | 9,303 | $ 5 | 9,298 | |||
Stock options exercised (in shares) | 459,777 | |||||
Stock issued under employee stock purchase plan | 2,394 | 2,394 | ||||
Stock issued under employee stock purchase plan (in shares) | 19,286 | |||||
Stock issued to directors | 67 | 67 | ||||
Stock issued to directors (in shares) | 365 | |||||
Return of common stock to pay withholding taxes on restricted stock | (20,317) | $ (2) | $ (20,315) | |||
Return of common stock to pay withholding taxes on restricted stock (in shares) | (149,317) | 149,317 | ||||
Stock compensation expense | 40,353 | 40,353 | ||||
Other comprehensive income (loss) | 16,402 | 16,402 | ||||
Net income | 112,170 | 112,170 | ||||
Ending Balance at Mar. 31, 2018 | $ 689,524 | $ 444 | $ (67,078) | 619,905 | 140,457 | (4,204) |
Ending Balance (in shares) at Mar. 31, 2018 | 44,375,337 | 44,375,337 | 1,725,312 | |||
Restricted stock units issued | $ 4 | (4) | ||||
Restricted stock units issued (in shares) | 427,431 | |||||
Stock options exercised | $ 12,949 | $ 5 | 12,944 | |||
Stock options exercised (in shares) | 485,000 | 485,363 | ||||
Stock issued under employee stock purchase plan | $ 3,052 | 3,052 | ||||
Stock issued under employee stock purchase plan (in shares) | 12,467 | |||||
Stock issued to directors | 116 | 116 | ||||
Stock issued to directors (in shares) | 316 | |||||
Return of common stock to pay withholding taxes on restricted stock | (71,776) | $ (2) | $ (71,774) | |||
Return of common stock to pay withholding taxes on restricted stock (in shares) | (177,929) | 177,929 | ||||
Stock compensation expense | 54,494 | 54,494 | ||||
Other comprehensive income (loss) | (10,485) | (10,485) | ||||
Net income | 259,016 | 259,016 | ||||
Ending Balance at Mar. 31, 2019 | $ 936,890 | $ 451 | $ (138,852) | $ 690,507 | $ 399,473 | $ (14,689) |
Ending Balance (in shares) at Mar. 31, 2019 | 45,122,985 | 45,122,985 | 1,903,241 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Operating activities: | |||
Net income | $ 259,016 | $ 112,170 | $ 52,116 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 14,121 | 11,005 | 6,202 |
Bad debt expense | 720 | 38 | 159 |
Stock-based compensation | 54,494 | 40,353 | 32,866 |
Write-down of inventory and other | 4,252 | 3,946 | 3,085 |
Accretion on marketable securities | (2,744) | ||
Change in fair value of other investments | (30,161) | ||
Excess tax benefit from stock-based awards | (12,038) | ||
Deferred tax provision | (7,745) | 42,624 | 25,803 |
Change in fair value of contingent consideration | (915) | 1,337 | 1,590 |
Changes in assets and liabilities: | |||
Accounts receivable | (22,023) | (15,289) | (11,550) |
Inventories | (37,181) | (15,686) | (12,284) |
Prepaid expenses and other assets | (2,527) | (4,466) | (2,366) |
Accounts payable | 7,976 | 4,412 | 7,565 |
Accrued expenses and other liabilities | 13,406 | 7,722 | 22,223 |
Deferred revenue | 1,508 | 4,380 | 1,745 |
Net cash provided by operating activities | 252,197 | 192,546 | 115,116 |
Investing activities: | |||
Purchases of marketable securities | (361,602) | (325,408) | (278,501) |
Proceeds from the sale and maturity of marketable securities and other | 331,886 | 206,909 | 205,482 |
Purchases of other investments and intangible assets | (42,735) | (6,400) | (2,899) |
Purchases of property and equipment | (44,004) | (55,863) | (50,415) |
Net cash used for investing activities | (116,455) | (180,762) | (126,333) |
Financing activities: | |||
Proceeds from the exercise of stock options | 12,949 | 9,303 | 10,660 |
Excess tax benefit from stock-based awards | 12,038 | ||
Taxes paid related to net share settlement upon vesting of stock awards | (71,776) | (20,317) | (20,105) |
Proceeds from the issuance of stock under employee stock purchase plan | 3,052 | 2,394 | 1,720 |
Principal payments on capital lease obligation | (517) | (446) | |
Net cash (used for) provided by financing activities | (55,775) | (9,137) | 3,867 |
Effect of exchange rate changes on cash | (1,921) | 1,288 | (1,841) |
Net increase in cash and cash equivalents | 78,046 | 3,935 | (9,191) |
Cash and cash equivalents at beginning of year | 42,975 | 39,040 | 48,231 |
Cash and cash equivalents at end of year | 121,021 | 42,975 | 39,040 |
Supplemental disclosure of cash flow information: | |||
Cash paid for income taxes | 5,290 | 4,641 | 1,405 |
Cash paid for interest on capital lease obligation | 302 | 354 | |
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 | $ 4,787 | $ 3,338 | $ 5,692 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Nature of Operations | Note 1. Nature of Operations 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 cardiac 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 | 12 Months Ended |
Mar. 31, 2019 | |
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 consolidated financial statements Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. The Company bases its estimates on historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. On an ongoing basis, the Company evaluates its estimates, including those related to revenue recognition, collectability of receivables, realizability of inventory, property and equipment, goodwill, intangible and other long-lived assets, accrued expenses, stock-based compensation, income taxes including deferred tax assets and liabilities, contingencies and litigation. Provisions for depreciation are based on their estimated useful lives using the straight-line method. Some of these estimates can be subjective and complex and, consequently, actual results may differ from these estimates under different assumptions or conditions. Cash Equivalents and Marketable Securities The Company classifies any marketable security with an original maturity date of 90 days or less at the time of purchase as a cash equivalent. Cash equivalents are carried on the balance sheet at fair market value. The Company classifies any marketable security with a maturity date of greater than 90 days at the time of purchase as marketable securities and classifies marketable securities with a maturity date of greater than one year from the balance sheet date as long-term marketable securities. The Company’s marketable securities, consisting of U.S. Treasuries, U.S. Government Agency, and corporate debt securities, and commercial paper, 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. Marketable securities that the Company has the positive intent and ability to hold to maturity are reported at amortized cost and classified as held-to-maturity marketable securities. If the Company does not have the intent and ability to hold a marketable security to maturity, it reports the investment as available-for-sale marketable securities. The Company reports available-for-sale marketable securities at fair value, and includes unrealized gains and, to the extent deemed temporary, unrealized losses in stockholders’ equity. If any adjustment to fair value reflects a decline in the value of the investment, the Company considers available evidence to evaluate whether the decline is “other than temporary” and, if so, marks the marketable security to market through a charge reflected on the consolidated statements of operations. Major Customers and Concentrations of Credit Risk The Company primarily sells its products to hospitals and distributors. No customer accounted for more than 10% of total revenues in fiscal years ended March 31, 2019, 2018 or 2017. No individual customer had an accounts receivable balance greater than 10% of total accounts receivable at March 31, 2019 and 2018. Credit is extended based on an evaluation of a customer’s historical financial condition and generally collateral is not required. The Company’s history of credit losses has not been significant and the Company maintains an allowance for doubtful accounts based on its assessment of the collectability of accounts receivable. Accounts receivables are geographically dispersed, primarily throughout the U.S., as well as in Europe and other foreign countries where formal distributor agreements exist in certain countries. Financial instruments which potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents, marketable securities, short and long-term marketable securities and accounts receivable. Management mitigates credit risk by limiting the investment type and maturity to securities that preserve capital, maintain liquidity and have a high credit quality. Financial Instruments The Company’s financial instruments are comprised 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. Inventories Inventories are stated at the lower of cost or market. Cost is based on the first in, first out method. The Company regularly reviews inventory quantities on hand and writes down to its net realizable value any inventory that it believes to be impaired. Management considers forecast demand in relation to the inventory on hand, competitiveness of product offerings, market conditions and product life cycles when determining excess and obsolescence and net realizable value adjustments. Once inventory is written down and a new cost basis is established, it is not written back up if demand increases. Property and Equipment Property and equipment is recorded at cost less accumulated depreciation. Land is carried at cost and is not depreciated. Depreciation is computed using the straight-line method based on estimated useful lives of three to five years for machinery and equipment, computer software, and furniture and fixtures. Building and building improvements are depreciated using the straight-line method over estimated useful lives of seven to thirty-three years. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or the estimated useful lives of the related assets. Expenditures for maintenance and repairs are expensed as incurred. Upon retirement or other disposition of assets, the costs and related accumulated depreciation are eliminated from the accounts and the resulting gain or loss is reflected in operating expenses. Property and equipment is reviewed for impairment losses whenever events or changes in circumstances indicate the carrying amount may not be recoverable. An impairment loss would be recognized based on the amount by which the carrying value of the asset or asset group exceeds its fair value. Fair value is determined primarily using the estimated future cash flows associated with the asset or asset group under review discounted at a rate commensurate with the risk involved and other valuation techniques. Leases Lease agreements are evaluated to determine whether they are capital or operating leases in accordance with Financial Accounting Standards Board, or ASC, 840, “Leases.” When any one of the four test criteria in ASC 840 is met, the lease then qualifies as a capital lease. Capital leases are capitalized at the lower of the net present value of the total amount payable under the leasing agreement (excluding finance charges) or the fair market value of the leased asset. Capital lease assets are depreciated on a straight-line basis, over a period consistent with the Company’s normal depreciation policy for tangible fixed assets. Interest charges are expensed over the period of the term of the capital lease obligation in relation to the carrying value of the capital lease. Rent expense for operating leases, which may include free rent or fixed escalation amounts in addition to minimum lease payments, is recognized on a straight-line basis over the duration of each lease term. Effective April 1, 2019, the Company will adopt ASU 2016-02, “Leases.” This new guidance requires the Company’s lease commitments to be recognized as operating lease liabilities and right-of-use assets, which will increase total assets and total liabilities that the Company will report on its consolidated balance sheet in future periods. Goodwill Goodwill is recorded when consideration for an acquisition exceeds the fair value of the net tangible and intangible assets acquired. Goodwill is not amortized. The Company evaluates goodwill for impairment at least annually at October 31, as well as whenever events or changes in circumstances suggest that the carrying amount may not be recoverable. In applying the goodwill impairment test, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value. Qualitative factors may include, but are not limited to, macroeconomic conditions, industry conditions, the competitive environment, changes in the market for the Company’s products and services, regulatory and political developments, cost factors, and entity specific factors such as strategies and overall financial performance. If, after assessing these qualitative factors, the Company determines it is more likely than not that the fair value of a reporting unit is less than its carrying value, then performing a two-step impairment test is necessary. The goodwill test involves a two-step process. The first step is a comparison of the reporting unit’s fair value to its carrying value. If the reporting unit’s fair value exceeds its carrying value, no further procedures are required. However, if the reporting unit’s fair value is less than the carrying value, an impairment of goodwill may exist, requiring a second step to measure the amount of impairment loss. If the implied fair value of goodwill is less than the recorded goodwill, an impairment charge is recorded for the difference. The goodwill impairment test is performed at the reporting unit level by comparing the reporting unit’s carrying value, including goodwill, to the fair value of the reporting unit. The Company estimates the fair value of its single reporting unit using a combination of the income approach and the market approach. The income approach incorporates the use of a discounted cash flow method in which the estimated future cash flows and terminal values for the reporting unit is discounted to a present value using an appropriate discount rate. Cash flow projections are based on management’s estimates of economic and market conditions which drive key assumptions of revenue growth rates, operating margins, cash flows, capital expenditures and working capital requirements. The discount rate is based on the specific risk characteristics of the reporting unit and its underlying forecast. The market approach estimates fair value by comparing publicly traded companies with similar operating and investment characteristics as the reporting unit. The fair values determined by the market approach and income approach, are weighted to determine the fair value for the reporting unit based primarily on the similarity of the operating and investment characteristics of the reporting unit to the comparable publicly traded companies used in the market approach. In-Process Research and Development In-process research and development, or IPR&D, assets are considered to be indefinite-lived until the completion or abandonment of the associated research and development projects. IPR&D assets represent the fair value assigned to technologies that are acquired, which at the time of acquisition have not reached technological feasibility and have no alternative future use. During the period that the IPR&D assets are considered indefinite-lived, they are tested for impairment on an annual basis on October 31, or more frequently if the Company becomes aware of any events occurring or changes in circumstances that indicate that the fair value of the IPR&D assets are less than their carrying values. If and when development is complete, which generally occurs upon regulatory approval and the Company is able to commercialize products associated with the IPR&D assets, these assets are then deemed definite-lived and are amortized based on their estimated useful lives at that point in time. If development is terminated or abandoned, the Company may have a full or partial impairment charge related to the IPR&D assets, calculated as the excess of carrying value of the IPR&D assets over fair value. Contingent Consideration Contingent consideration represents potential milestones that the Company could pay additional consideration for a business acquisition and is recorded as a liability and is measured at fair value using a combination of (1) an income approach, based on various revenue and cost assumptions and applying a probability to each outcome and (2) a Monte-Carlo valuation model that simulates outcomes based on management estimates. With the income approach, p robabilities were applied to each potential scenario and the resulting values were discounted using a rate that considers the weighted average cost of capital, the related projections, and the overall business. The Monte-Carlo valuation model simulates estimated future revenues during the earn out-period using management's best estimates. Accrued Expenses As part of the process of preparing its financial statements, the Company is required to estimate accrued expenses. This process includes identifying services that third parties have performed and estimating the level of service performed and the associated cost incurred on these services as of each balance sheet date in its financial statements. Examples of estimated accrued expenses include estimates for certain payroll costs, such as bonuses and commissions; contract service fees, such as amounts due to clinical research organizations and investigators in conjunction with clinical trials; professional service fees, such as attorneys and accountants, and third-party expenses relating to marketing efforts associated with commercialization of the Company’s product and product candidates. In the event that the Company does not identify certain costs that have been incurred or it under or over-estimates the level of services or the costs of such services, reported expenses for a reporting period could be overstated or understated. The dates in which certain services commence and end, the level of services performed on or before a given date and the cost of services is often subject to the Company’s judgment. The Company makes these judgments and estimates based upon known facts and circumstances. Revenue Recognition On April 1, 2018 the Company adopted ASU 2014-09 (“Topic 606”), “Revenue from Contracts with Customers”. For a discussion on the impact of this accounting policy adoption, including key accounting policies and elections, see “ Note 3. Revenue Recognition Product Warranty The Company generally provides a one-year warranty for certain products sold in which estimated contractual warranty obligations are recorded as an expense at the time of shipment. The Company’s products are subject to regulatory and quality standards. Future warranty costs are estimated based on historical product performance rates and related costs to repair given products. The accounting estimate related to product warranty expense involves judgment in determining future estimated warranty costs. Should actual performance rates or repair costs differ from estimates, revisions to the estimated warranty liability would be required. Accumulated Other Comprehensive Income (Loss) Comprehensive income (loss) is comprised of net income, plus all changes in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources, including any foreign currency translation adjustments. These changes in equity are recorded as adjustments to accumulated other comprehensive income (loss) in the Company’s consolidated balance sheet. The components of accumulated other comprehensive income (loss) consist of foreign currency translation adjustments and changes in unrealized gains (losses) on marketable securities. There were no reclassifications out of accumulated other comprehensive income (loss) during the fiscal years ended March 31, 2019, 2018 and 2017. Translation of Foreign Currencies The functional currency of the Company’s foreign subsidiaries is their local currency. The assets and liabilities of the Company’s foreign subsidiaries are translated into U.S. dollars at exchange rates in effect at the balance sheet date. Income and expense items in the Company’s consolidated statement of operations are translated at the average exchange rates prevailing during the period. The cumulative translation effect for subsidiaries using a functional currency other than the U.S. dollar is included in accumulated other comprehensive income (loss) as a separate component of stockholders’ equity. The Company’s intercompany accounts are denominated in the functional currency of the foreign subsidiary. Gains and losses resulting from the remeasurement of intercompany receivables that the Company considers to be of a long-term investment nature are recorded in accumulated other comprehensive income or loss as a separate component of stockholders’ equity, while gains and losses resulting from the remeasurement of intercompany receivables from those foreign subsidiaries for which the Company anticipates settlement in the foreseeable future are recorded in the consolidated statement of operations. The net foreign currency translation gains and losses recorded in the consolidated statements of operations for the fiscal years ended March 31, 2019, 2018 and 2017 were not significant. 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 fiscal year. Diluted net income per share is computed using the treasury stock method by dividing net income by the weighted average number of dilutive common shares outstanding during the fiscal year. Diluted shares outstanding is calculated by adding to the weighted average shares outstanding any potential dilutive securities outstanding for the fiscal year. 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. For the fiscal years ended March 31, 2019, 2018 and 2017, the Company’s basic and diluted net income per share were as follows (figures in tables are in thousands, except per share data): Fiscal Years Ended March 31, Basic Net Income Per Share 2019 2018 2017 Net income $ 259,016 $ 112,170 $ 52,116 Weighted average shares - basic 44,911 44,153 43,238 Net income per share - basic $ 5.77 $ 2.54 $ 1.21 Fiscal Years Ended March 31, Diluted Net Income Per Share 2019 2018 2017 Net income $ 259,016 $ 112,170 $ 52,116 Weighted average shares - basic 44,911 44,153 43,238 Effect of dilutive securities 1,240 1,696 1,420 Weighted average shares - diluted 46,151 45,849 44,658 Net income per share - diluted $ 5.61 $ 2.45 $ 1.17 For the fiscal years ended March 31, 2019, 2018 and 2017, approximately 64,000, 155,000 and 24,000 shares of common stock underlying outstanding securities related to out-of-the-money stock options and performance-based awards where milestones were not met were not included in the computation of diluted earnings per share because their inclusion would be anti-dilutive. Stock-Based Compensation The Company’s stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as an expense over the requisite service period. The fair value of stock option grants is estimated using the Black-Scholes option pricing model. Use of the valuation model requires management to make certain assumptions with respect to selected model inputs. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for a term consistent with the expected life of the stock options. Volatility assumptions are calculated based on historical volatility of the Company’s stock. The Company estimates the expected term of options based on historical exercise experience and estimates of future exercises of unexercised options. In addition, an expected dividend yield of zero is used in the option valuation model because the Company does not pay cash dividends and does not expect to pay any cash dividends in the foreseeable future. Forfeitures are recorded as they occur instead of estimating forfeitures that are expected to occur. An accounting policy change was made by the Company related to the recording of forfeitures in fiscal 2018 as a result of the adoption of ASU 2016-09, “ ” For awards with service conditions only, the Company recognizes stock-based compensation expense on a straight-line basis over the requisite service period. For awards with service, performance and market-based conditions, the Company recognizes stock-based compensation expense using the graded vesting method over the requisite service period. Estimates of stock-based compensation expense for an award with performance conditions are based on the probable outcome of the performance conditions. The cumulative effect of changes in the probability outcomes are recorded in the period in which the changes occur. For awards with market-based conditions, the Company uses a Monte Carlo simulation model to estimate that the grant-date fair value. The fair value related to market-based awards is recorded as stock-based compensation expense over the vesting period regardless of whether the market condition is achieved or not. Income Taxes The Company’s provision for income taxes is comprised of a current and deferred provision. The current income tax provision is calculated as the estimated taxes payable or refundable on income tax returns for the current fiscal year. The deferred income tax provision is calculated for the estimated future income tax effects attributable to temporary differences and carryforwards using expected tax rates in effect in the years during which the temporary differences are expected to reverse. Deferred income taxes are recognized for the tax consequences in future years as the differences between the tax bases of assets and liabilities and their financial reporting amounts at each fiscal year end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to impact taxable income. The Company regularly assesses its ability to realize its deferred tax assets. Assessing the realization of deferred tax assets requires significant management judgment. Valuation allowances are established when necessary to reduce net deferred tax assets to the amount that is more likely than not to be realized. The Company recognizes and measures uncertain tax positions using a two-step approach. The first step is to evaluate the tax position for recognition by determining if, based on the technical merits, it is more likely than not that the position will be sustained upon audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit at the largest amount that is more likely than not of being realized upon ultimate settlement. The Company reevaluates these uncertain tax positions on an ongoing basis, when applicable. This evaluation is based on factors including, but not limited to, changes in facts or circumstances, new information and technical insights, and changes in tax laws. Any changes in these factors could result in the recognition of a tax benefit or an additional charge to the tax provision. Please refer to “ Note 11. Income Taxes Recently Adopted Accounting Pronouncements Effective April 1, 2018, the Company adopted the Financial Accounting Standards Board (“FASB”) standard update ASU 2014-09 (“Topic 606”), “Revenue from Contracts with Customers,” which provides a principles-based, five-step approach to measure and recognize revenue from contracts with customers. The adoption did not have a material impact on the Company’s consolidated financial statements as of the adoption date, or for the year ended March 31, 2019. Additional information and disclosures required by this new standard are contained in “ Note 3. Revenue Recognition Effective April 1, 2018, the Company adopted the FASB standard update ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities,” which requires certain financial assets and equity investments to be measured at fair value with changes in fair value recognized in the statement of operations. The adoption of this guidance did not have a material impact on the Company’s consolidated statement of operations, cash flows, and balance sheet as of the adoption date or for the year ended March 31, 2019. Additional information and disclosures required by this new standard are contained in “ Note 8. Goodwill, In-Process Research and Development, and Other Assets On June 20, 2018, the FASB issued ASU 2018-07, “Compensation – Stock Compensation (“Topic 718”): Improvements to Nonemployee Share-Based Payment Accounting,” which simplifies the accounting for share-based payments granted to nonemployees for goods and services. ASU 2018-07 eliminated the previous guidance for accounting for share-based payments to nonemployees and expanded Topic 718 to include share-based payments transactions to nonemployees. ASU 2018-07 is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. The adoption of ASU 2018-07 required a modified retrospective transition approach, with a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year. The Company early adopted ASU 2018-07 in the first quarter of fiscal 2019. The adoption of this guidance did not have a material impact on the Company’s consolidated statements of operations, cash flows, and balance sheet as of the adoption date or for the year ended March 31, 2019. 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,” ASU 2016-09, which simplifies several aspects of the accounting for share-based payment transactions, including income tax consequences, recognition of stock compensation award forfeitures, classification of awards as either equity or liabilities, the calculation of diluted shares outstanding and classification on the statement of cash flows. The following table summarizes the most significant impacts of ASU 2016-09: Description of Change: Impact of Change Upon Adoption on April 1, 2017 and for the Year Ended March 31, 2018: 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 year ended March 31, 2018 included excess tax benefits of $31.0 million. These recognized excess tax benefits resulted from restricted stock units that vested or stock options that were exercised during the year ended March 31, 2018. 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 $31.0 million for the year ended March 31, 2018. 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, 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 Retained Earnings (Accumulated Deficit) Accumulated Other Comprehensive 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 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 Recently Issued Accounting Pronouncements Not Yet Effective In February 2016, the FASB issued ASU 2016-02, “Leases.” The new guidance significantly impacts lessee accounting and financial statement disclosures. Specifically, this guidance requires lessees to identify arrangements that should be accounted for as leases. Under this guidance, for lease arrangements exceeding a one-year term, a right-of-use asset and lease obligation is recorded by the lessee for all leases on the balance sheet, whether operating or financing, while the statement of operations includes lease expense for operating leases and amortization and interest expense for financing leases. The lease obligation amount recorded on the balance sheet at the date of adoption of this guidance must be calculated using the applicable incremental borrowing rate at the date of adoption. Leases with a term of one year or less will be accounted for similar to existing guidance for operating leases. The Company has evaluated its lease arrangements to determine the impact of ASU 2016-02 on its consolidated financial statements as well as updating processes and controls in order to adopt the new standard. This evaluation included a review of the Company’s existing leasing arrangements on its facilities and a review of existing contracts with its suppliers, vendors, and customers to determine if these agreements contained embedded leases. Based on the results of this evaluation, the adoption of this standard will not have a material impact to the Company’s consolidated financial statements. Lease commitments will be recognized as operating lease liabilities and right-of-use assets upon adoption, which will increase total assets and total liabilities that the Company reports on its consolidated balance sheet. The Company also anticipates changes to its disclosures to comply with the new disclosure requirements. In addition, the Company is implementi |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Mar. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | Note 3. Revenue Recognition Adoption of Topic 606, “Revenue from Contracts with Customers” The Company adopted Topic 606 on April 1, 2018, using the modified retrospective method for all contracts not completed as of the date of adoption. The reported results for fiscal year 2019 reflect the application of Topic 606 guidance while the reported results for fiscal year 2018 were prepared under the guidance of ASC 605, “Revenue Recognition.” The adoption of Topic 606 did not have a material impact on the timing or amount of revenue recognized upon adoption and there was no cumulative prior period adjustment recorded to the opening balance of retained earnings upon adoption. Accordingly, the adoption of Topic 606 did not have a material impact on the Company’s consolidated balance sheet, statement of operations, stockholders’ equity or cash flows as of the adoption date or for the year ended March 31, 2019. The Company has made the following accounting policy elections and elected to use certain practical expedients, as permitted by the FASB, in applying Topic 606: (1) the Company accounts for amounts collected from customers for sales and other taxes, net of related amounts remitted to tax authorities; (2) the Company does not adjust the promised amount of consideration for the effects of a significant financing component because, at contract inception, the Company expects the period between the time when the Company transfers a promised good or service to the customer and the time when the customer pays for that good or service will be one year or less; (3) the Company expenses costs to obtain a contract as they are incurred if the expected period of benefit, and therefore the amortization period, is one year or less; (4) the Company accounts for shipping and handling activities that occur after control transfers to the customer as a fulfillment cost rather than an additional promised service and these fulfillment costs are recorded as selling, general and administrative expenses; (5) the Company does not assess whether promised goods or services are performance obligations if they are immaterial in the context of the contract with the customer; and (6) the Company does not disclose the transaction price allocated to unsatisfied performance obligations when the original expected contract duration is one year or less. The Company generates revenue primarily from the sale of Impella 2.5, Impella CP, Impella 5.0, Impella LD, Impella RP and Impella AIC products. The Company also earns revenue from preventative maintenance service contracts and maintenance calls. The Company determines revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer • Identification of the performance obligation in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligation in the contract • Recognition of revenue when, or as, a performance obligation is satisfied Identification of contracts and performance obligations The Company accounts for a contract with a customer when there is an approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of the consideration is probable. The Company's performance obligations consist mainly of transferring control of products and services identified in the contracts, purchase orders or invoices. For each contract, the Company considers the obligation to transfer products and services to the customer, each of which are distinct, to be performance obligations. Transaction price and allocation to performance obligations Transaction prices of products or services are typically based on contracted rates with customers and there is only variable consideration in limited instances. To the extent that the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing the expected value method or the most likely amount, depending on the circumstances, to which the Company expects to be entitled. An expected value method may be an appropriate estimate of the amount of variable consideration if an entity has a large number of contracts with similar characteristics whereas the most likely amount method may be an appropriate estimate of the amount of variable consideration if the contract has only two possible outcomes. The Company does not provide for rights of return to customers on product sales and, therefore, does not record a provision for returns. Customers typically have a limited time frame to notify the Company of any defective or non-conforming products. The Company’s limited warranty provision is accounted for using the cost accrual method and is recognized as expense when products are sold and is not considered a separate performance obligation. If a contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price based on the estimated relative standalone selling prices of the promised products or services underlying each performance obligation. The Company determines standalone selling prices based on the price at which the performance obligation is sold separately. Revenue Recognition Revenue is recognized when, or as, obligations under the terms of a contract are satisfied, which occurs when control of the promised products or services is transferred to customers. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products or services to a customer. Product revenue is generally recognized when the customer obtains control of the Company’s product, which occurs at a point in time, and may be upon shipment or upon delivery based on the contractual shipping terms of a contract. Service revenue is generally recognized over time as the services are rendered to the customer based on the extent of progress towards completion of the performance obligation. The Company recognizes service revenue over the term of the service contract. Services are expected to be transferred to the customer throughout the term of the contract and the Company believes recognizing revenue ratably over the term of the contract best depicts the transfer of value to the customer. Revenue generated from preventative maintenance calls is recognized at a point in time when the services are provided to the customer. Revenue from the sale of products and services are evidenced by either a contract with the customer or a valid purchase order and an invoice which includes all relevant terms of sale and shipment of product or service provided has been incurred. The Company performs a review of each specific customer's credit worthiness and ability to pay prior to acceptance as a customer. Further, the Company performs periodic reviews of its customers' creditworthiness prospectively. Disaggregation of Revenue The Company generally sells its Impella products and services through a direct sales force in the U.S. and Germany and through direct sales and distribution agreements in other international markets outside (e.g., in Europe, Japan, Canada, Latin America, Asia-Pacific). Revenue is disaggregated from contracts between product revenue and service and other revenue and by geography, which the Company believes best depicts how the nature, amount, timing, and uncertainty of revenues and cash flows are affected by economic factors. The following table disaggregates the Company’s revenue by products and services: Fiscal Years Ended March 31, 2019 2018 2017 (in $000's) Impella product revenue $ 741,699 $ 570,870 $ 423,694 Service and other revenue 27,733 22,879 21,610 Total revenue $ 769,432 $ 593,749 $ 445,304 The following table disaggregates the Company’s revenue by geographical location: Fiscal Years Ended March 31, 2019 2018 2017 (in $000's) U.S. revenue $ 665,082 $ 526,685 $ 405,781 International revenue 104,350 67,064 39,523 Total revenue $ 769,432 $ 593,749 $ 445,304 Reserves for Variable Consideration Revenues from product sales are recorded at the net sales price (transaction price), which includes estimates of variable consideration for which reserves are established and which result from discounts or rebates that are offered within contracts between the Company and its customers relating to the Company’s sales of its products. These reserves are based on the amounts earned or are expected to be claimed on the related sales and are classified as a liability. Where appropriate, these estimates take into consideration relevant factors such as the Company’s historical experience, current contractual and statutory requirements, specific known market events and trends, industry data and forecasted customer buying and payment patterns. These reserves reflect the Company’s best estimates of the amount of consideration to which it is entitled based on the terms of the contract. Actual amounts of consideration ultimately received may differ from the Company’s estimates. If actual results in the future vary from the Company’s estimates, the Company adjusts these estimates, which would affect revenue and earnings in the period such variances become known. Rebates and Discounts The Company provides certain customers with rebates and discounts that are defined in the Company’s contract arrangements with customers and are recorded as a reduction of revenue in the period the related product revenue is recognized, resulting in a reduction to revenue and the establishment of a liability, which are all included in accrued expenses in the accompanying consolidated balance sheets. Rebates normally result from performance-based offers that are primarily based on attaining contractually specified sales volumes as well as product usage. Discounts are normally from early payment incentives. The Company estimates the amount of rebates and discounts based on an estimate of the third-party’s sales and the respective rebate or discount defined in the customer contractual arrangement. The following table summarizes product revenue rebates and discounts for the year ended March 31, 2019 (in thousands): Rebates and Discounts Balance at March 31, 2018 $ 1,405 Credits related to prior period balance (759 ) Provision related to current period revenue 2,180 Credits related to current period revenue (1,294 ) Balance at March 31, 2019 $ 1,532 Contract Balances The timing of revenue recognition, billings and cash collections results in accounts receivables and deferred revenue on the consolidated balance sheet. A receivable is recognized in the period the Company’s right to the consideration from the customer is unconditional. The change in the accounts receivable balances relate to the timing of revenue recognition, billings and cash collections. The Company generally does not have any performance obligations with a term of more than one year. Payment terms vary by contract type and type of customer and generally range from 30 to 60 days for direct sales customers. Payment terms with certain international distributors can be up to 90 days. The Company’s contracts with customers do not typically include extended payment terms. Deferred Revenue When consideration is received, or such consideration is unconditionally due, from a customer prior to transferring goods or services to the customer under the terms of a contract, deferred revenue is recorded. Deferred revenue is recognized as revenue after control of the products or services is transferred to the customer and all revenue recognition criteria have been met. The Company’s deferred revenue balance was $16.4 million and $15.0 million as of March 31, 2019 and March 31, 2018, respectively, and it was due to the timing of product shipment and completion of recognizing revenue when the customer obtains control of the product, and additional preventative maintenance service contracts and the subsequent recognition of the contract ratably over the term of the service contract. During the year ended March 31, 2019, the Company recognized $14.9 of revenue that was included in the deferred revenue balance as of March 31, 2018. Costs to Obtain or Fulfill a Customer Contract The Company has certain costs to obtain and fulfill a customer contract, such as commissions and shipping costs. The Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less. The Company accounts for shipping and handling activities related to contracts with customers as costs to fulfill the promise to transfer the associated products. These costs are included in Selling, general, and administrative expenses. |
Cash Equivalents, Marketable Se
Cash Equivalents, Marketable Securities and Fair Value Measurements | 12 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Cash Equivalents, Marketable Securities and Fair Value Measurements | Note 4. Cash Equivalents, Marketable Securities and Fair Value Measurements The Company’s cash equivalents and marketable securities at March 31, 2019 and 2018 are classified on the balance sheet as follows: March 31, 2019 March 31, 2018 (in $000's) Cash equivalents $ 80,089 $ 22,595 Short-term marketable securities 370,677 319,274 Long-term marketable securities 21,718 37,502 $ 472,484 $ 379,371 The Company’s cash equivalents and marketable securities at March 31, 2019 and 2018 are invested in the following: Amortized Gross Unrealized Gross Unrealized Fair Market Cost Gains Losses Value March 31, 2019: (in $000's) Money market funds $ 60,089 $ — $ — $ 60,089 Repurchase agreements 20,000 — — 20,000 Short-term U.S. Treasury mutual fund securities 58,786 13 (12 ) 58,787 Short-term government-backed securities 126,336 60 (15 ) 126,381 Short-term corporate debt securities 128,626 97 (9 ) 128,714 Short-term commercial paper 56,780 16 (1 ) 56,795 Long-term corporate debt securities 21,529 189 — 21,718 $ 472,146 $ 375 $ (37 ) $ 472,484 Amortized Gross Unrealized Gross Unrealized Fair Market Cost Gains Losses Value March 31, 2018: (in $000's) Money market funds $ 5,845 $ — $ — $ 5,845 Repurchase agreements 16,750 — — 16,750 Short-term U.S. Treasury mutual fund securities 18,132 — (29 ) 18,103 Short-term government-backed securities 212,255 3 (538 ) 211,720 Short-term corporate debt securities 52,737 — (161 ) 52,576 Short-term commercial paper 36,936 2 (63 ) 36,875 Long-term U.S. Treasury mutual fund securities 10,953 — (16 ) 10,937 Long-term government-backed securities 24,798 1 (12 ) 24,787 Long-term corporate debt securities 1,777 1 — 1,778 $ 380,183 $ 7 $ (819 ) $ 379,371 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 fair value hierarchy for its financial instruments measured at fair value as of March 31, 2019 and 2018: Level 1 Level 2 Level 3 Total March 31, 2019: (in $000's) Assets Money market funds $ 60,089 $ — $ — $ 60,089 Repurchase agreements — 20,000 — 20,000 Short-term U.S. Treasury mutual fund securities — 58,787 — 58,787 Short-term government-backed securities — 126,381 — 126,381 Short-term corporate debt securities — 128,714 — 128,714 Short-term commercial paper — 56,795 — 56,795 Long-term corporate debt securities — 21,718 — 21,718 Investment in Shockwave Medical (see Note 8 56,195 — — 56,195 Liabilities Contingent consideration — — 9,575 9,575 Level 1 Level 2 Level 3 Total March 31, 2018: (in $000's) Assets Money market funds $ 5,845 $ — $ — $ 5,845 Repurchase agreements — 16,750 — 16,750 Short-term U.S. Treasury mutual fund securities — 18,103 — 18,103 Short-term government-backed securities — 211,720 — 211,720 Short-term corporate debt securities — 52,576 — 52,576 Short-term commercial paper — 36,875 — 36,875 Long-term U.S. Treasury mutual fund securities — 10,937 — 10,937 Long-term government-backed securities — 24,787 — 24,787 Long-term corporate debt securities — 1,778 — 1,778 Liabilities Contingent consideration — — 10,490 10,490 The Company has determined that the estimated fair value of its money market funds and its investment in medical device company Shockwave are reported as Level 1 financial assets as they are valued at quoted market prices in active markets. The investment in Shockwave is classified within other assets in the consolidated balance sheet and is further discussed in “ Note 8. Goodwill, In-Process Research & Development and Other Assets The Company has determined that the estimated fair value of its repurchase agreements, U.S. Treasury mutual fund securities, government-backed securities, corporate debt securities and commercial paper are reported as Level 2 financial assets as they are based on model-driven valuations in which all significant inputs are observable, or can be derived from or corroborated by observable market data for substantially the full term of the asset. The Company’s financial liabilities consisted of contingent consideration potentially payable related to the acquisition of ECP Entwicklungsgesellschaft mbH, or ECP, and AIS GmbH Aachen Innovative Solutions, or AIS, in July 2014. The Company acquired ECP and AIS for $13.0 million in cash, with additional potential payouts totaling $15.0 million based on the achievement of CE Mark approval in the European Union and a revenue-based milestone 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 March 31, 2019 (in $000's) Valuation Methodology Significant Unobservable Input Weighted Average (range, if applicable) Clinical and regulatory milestone $ 5,371 Probability weighted income approach Projected fiscal year of milestone payments 2020 to 2023 Discount rate 3.8% to 4.0% Probability of occurrence Probability adjusted level of 40% for the base case scenario and 15% to 40% for various downside and upside scenarios Revenue-based milestone 4,204 Monte Carlo simulation model Projected fiscal year of milestone payments 2025 to 2035 Discount rate 17% Expected volatility for forecasted revenues 50% Probability of payment (risk-neutral) 70.1% $ 9,575 The following table summarizes the change in fair value, as determined by Level 3 inputs, of the contingent consideration for the fiscal years ended March 31, 2019, 2018 and 2017: Fiscal Years Ended March 31, 2019 2018 2017 (in $000's) Level 3 liabilities, beginning balance $ 10,490 $ 9,153 $ 7,563 Additions — — — Payments — — — Change in fair value (915 ) 1,337 1,590 Level 3 liabilities, ending balance $ 9,575 $ 10,490 $ 9,153 The change in fair value of the contingent consideration was primarily due to estimates related to development timelines and the passage of time on the fair value measurement of milestones. Adjustments associated with the change in fair value of contingent consideration are included in research and development expenses in the Company’s 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 consolidated statement of operations. There is no assurance that any of the conditions for the milestone payments will be met. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Accounts Receivable | Note 5. Accounts Receivable The components of accounts receivable are as follows: March 31, 2019 March 31, 2018 (in $000's) Trade receivables $ 91,849 $ 70,330 Allowance for doubtful accounts (1,040 ) (320 ) $ 90,809 $ 70,010 Fiscal Years Ended March 31, 2019 2018 2017 (in $000's) Balance at beginning of year $ 320 $ 282 $ 124 Additions 720 38 159 Write-offs — — (1 ) Balance at end of year $ 1,040 $ 320 $ 282 |
Inventories
Inventories | 12 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 6. Inventories The components of inventories are as follows: March 31, 2019 March 31, 2018 (in $000's) Raw materials and supplies $ 24,468 $ 16,481 Work-in-progress 35,195 23,179 Finished goods 21,279 10,544 $ 80,942 $ 50,204 The Company’s inventories relate to its Impella® product platform. Finished goods and work-in-process inventories consist of direct material, labor and overhead. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Mar. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | Note 7. Property and Equipment The components of property and equipment are as follows: March 31, 2019 March 31, 2018 (in $000's) Land $ 7,262 $ 7,680 Building and building improvements 86,705 63,700 Leasehold improvements 2,190 2,905 Machinery and equipment 59,146 42,787 Furniture and fixtures 11,456 8,104 Construction in progress 17,946 19,850 Total cost 184,705 145,026 Less accumulated depreciation (39,700 ) (27,859 ) $ 145,005 $ 117,167 In October 2017, the Company acquired its corporate 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. Depreciation expense related to property and equipment was $13.9 million, $11.0 million, and $6.2 million for the fiscal years ending March 31, 2019, 2018 and 2017, respectively. |
Goodwill In-Process Research an
Goodwill In-Process Research and Development and Other Assets | 12 Months Ended |
Mar. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill In-Process Research and Development and Other Assets | Note 8. Goodwill, In-Process Research & Development and Other Assets Goodwill The carrying amount of goodwill at March 31, 2019 and 2018 was $32.6 million and $35.8 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 4,763 Balance at March 31, 2018 $ 35,808 Foreign currency translation impact (3,207 ) Balance at March 31, 2019 $ 32,601 The Company has no accumulated impairment losses on goodwill. The Company performed a qualitative assessment during the annual impairment review for fiscal 2019 as of October 31, 2018 and concluded that it is more likely than not that the fair value of the Company’s single reporting unit is not less than its carrying amount. Therefore, the two-step goodwill impairment test for the reporting unit was not necessary in fiscal 2019. In-Process Research & Development The carrying amount of IPR&D assets at March 31, 2019 and 2018 was $15.2 million and $16.7 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 flows for the future Impella ECP TM The carrying value of the Company’s IPR&D assets and the change in the balance for the fiscal years ended March 31, 2019 and 2018 are as follows: (in $000's) Balance at March 31, 2017 $ 14,482 Foreign currency translation impact 2,223 Balance at March 31, 2018 $ 16,705 Foreign currency translation impact (1,497 ) Balance at March 31, 2019 $ 15,208 The Company tests IPR&D assets for impairment at least annually, or more frequently if impairment indicators exist, by first assessing qualitative factors to determine whether it is more likely than not that the fair value of the IPR&D assets is less than its carrying value. The Company performed its annual impairment review for fiscal 2019 as of October 31, 2018 and concluded that it was more likely than not that the fair value of the IPR&D assets is not less than its carrying value. Other Assets Other Investments The Company periodically makes investments in medical device companies that focus on heart failure, heart pump and other medical device technologies. The aggregate carrying amount of the Company’s portfolio of other investments was $80.8 million and $12.6 million at March 31, 2019 and 2018, respectively, and is classified within other assets in the consolidated balance sheets. During the years ended March 31, 2019 and 2018 the Company made investments of $39.9 million and $6.4 million, respectively, in medical device companies. The carrying value of the Company’s portfolio of other investments and the change in the balance for fiscal years ended March 31, 2019, 2018 and 2017 are as follows: Fiscal Years Ended March 31, 2019 2018 2017 (in $000's) Beginning Balance $ 12,649 $ 7,249 $ 4,350 Additions 39,935 6,400 2,899 Disposals (1,966 ) — — Change in fair value, net 30,161 (1,000 ) — Ending Balance $ 80,779 $ 12,649 $ 7,249 On April 1, 2018, the Company adopted ASU 2016-01. This guidance requires equity investments to be measured at fair value with changes in fair value recognized in net income. For investments that do not have readily determinable market values, the Company has elected to measure these investments at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment. The Company monitors any events or changes in circumstances that may have a significant effect on the fair value of investments, either due to impairment or based on observable price changes, and Other Intangible Assets During fiscal 2019, the Company made payments totaling $2.8 million to license manufacturing rights to certain technology from third parties. These intangible assets are classified with other assets in the Company’s consolidated balance sheet and are amortized over their useful life of 15 years. Amortization expense related to intangibles assets was $0.2 million for the fiscal year ended March 31, 2019. There was no amortization expense for the years ended March 31, 2018 and 2017. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Note 9. Stockholders’ Equity Class B Preferred Stock The Company has authorized 1,000,000 shares of Class B Preferred Stock, $.01 par value, of which the board of directors can set the designation, rights and privileges. No shares of Class B Preferred Stock have been issued or are outstanding. |
Stock Award Plans and Stock-Bas
Stock Award Plans and Stock-Based Compensation | 12 Months Ended |
Mar. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Award Plans and Stock-Based Compensation | Note 10. Stock Award Plans and Stock-Based Compensation Stock Award Plans The Company grants stock options and restricted stock awards to employees and others. All outstanding stock options of the Company as of March 31, 2019 were granted with an exercise price equal to the fair market value on the date of grant. Outstanding stock options, if not exercised, expire 10 years from the date of grant. 2015 Stock Incentive Plan The Company’s 2015 Amended and Restated Omnibus Incentive Plan (the “2015 Plan”) authorizes the grant of a variety of equity awards to the Company’s officers, directors, employees, consultants and advisers, including awards of unrestricted and restricted stock, restricted stock units, incentive and nonqualified stock options to purchase shares of common stock, performance share awards and stock appreciation rights. The 2015 Plan provides that options may only be granted at the current market value on the date of grant. Each share of stock issued pursuant to a stock option or stock appreciation right counts as one share against the maximum number of shares issuable under the 2015 Plan, while each share of stock issued pursuant to any other type of award counts as 1.8 shares against the maximum number of shares issuable under the 2015 Plan. The Company’s policy for issuing shares upon exercise of stock options or the vesting of its restricted stock awards and restricted stock units is to issue shares of common stock at the time of exercise or conversion. At March 31, 2019, a total of approximately 3,895,000 shares were available for future issuance under the 2015 Plan. Stock-Based Compensation The following table summarizes stock-based compensation expense by financial statement line item in the Company’s consolidated statements of operations for the fiscal years ended March 31, 2019, 2018 and 2017: Fiscal Years Ended March 31, 2019 2018 2017 (in $000's) Cost of revenue $ 2,643 $ 1,721 $ 1,061 Research and development 9,312 5,895 6,050 Selling, general and administrative 42,539 32,737 25,755 $ 54,494 $ 40,353 $ 32,866 The components of stock-based compensation for the fiscal years ended March 31, 2019, 2018 and 2017 were as follows: Fiscal Years Ended March 31, 2019 2018 2017 (in $000's) Restricted stock units $ 45,998 $ 34,559 $ 26,570 Stock options 7,445 5,202 5,829 Employee stock purchase plan 1,051 592 467 $ 54,494 $ 40,353 $ 32,866 Stock Options The following table summarized stock option activity for the fiscal year ended March 31, 2019: Weighted Weighted Average Aggregate Average Remaining Intrinsic Options Exercise Contractual Value (in thousands) Price Term (years) (in thousands) Outstanding at beginning of period 1,282 $ 46.81 5.31 $ 313,158 Granted 81 379.90 Exercised (485 ) 26.68 Cancelled and expired (25 ) 138.68 Outstanding at end of period 853 $ 87.14 5.57 $ 176,629 Exercisable at end of period 623 $ 40.72 4.58 $ 152,598 Stock options generally vest and become exercisable annually over three years. The remaining unrecognized stock-based compensation expense for unvested stock option awards at March 31, 2019 was approximately $12.2 million and the weighted-average period over which this cost will be recognized is 1.9 years. The aggregate intrinsic value of options exercised for fiscal years 2019, 2018 and 2017 was $174.0 million, $66.4 million and $74.8 million, respectively. The total cash received as a result of employee stock option exercises during the fiscal years ended March 31, 2019, 2018 and 2017 was approximately $12.9 million, $9.3 million and $10.7 million, respectively. 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 fiscal years ended March 31, 2019, 2018 and 2017 was as follows: Fiscal Years Ended March 31, 2019 2018 2017 Valuation assumptions: Weighted average grant-date fair value $ 141.47 $ 52.34 $ 42.40 Risk-free interest rate 2.91 % 1.87 % 1.41 % Expected option life (years) 4.04 4.07 4.14 Expected volatility 42.8 % 43.5 % 48.9 % The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for a term consistent with the expected life of the stock options. Volatility assumptions are calculated based on the historical volatility of the Company’s stock. The Company estimates the expected term of options based on historical exercise experience and estimates of future exercises of unexercised options. An expected dividend yield of zero is used in the option valuation model because the Company does not pay cash dividends and does not expect to pay any cash dividends in the foreseeable future. Forfeitures are recorded as they occur instead of estimating forfeitures that are expected to occur. Restricted Stock Units The following table summarizes restricted stock unit activity for the fiscal year ended March 31, 2019: Number of Shares Weighted Average Grant Date Fair Value (in thousands) (per share) Restricted stock units at beginning of period 880 $ 109.01 Granted 195 376.95 Vested (427 ) 103.54 Forfeited (28 ) 189.05 Restricted stock units at end of period 620 $ 193.53 Restricted stock units generally vest annually over three years. The remaining unrecognized compensation expense for outstanding restricted stock units, including performance-based awards, as of March 31, 2019 was $44.0 million and the weighted-average period over which this cost will be recognized is 1.9 years. The weighted average grant-date fair value for restricted stock units granted during the fiscal years ended March 31, 2019, 2018 and 2017 was $376.95, $137.40 and $97.43 per share, respectively. The total fair value of restricted stock units vested in fiscal years 2019, 2018 and 2017 was $171.3 million, $51.0 million and $51.3 million, respectively. Performance and Market-Based Awards Restricted stock units include certain awards that vest subject to certain performance and market-based criteria. The remaining unrecognized compensation expense for outstanding performance and market-based restricted stock units as of March 31, 2019 was $17.8 million and the weighted-average period over which this cost will be recognized is 1.9 years. Performance-Based Awards In May 2018, performance-based awards of restricted stock units for the potential issuance of 114,000 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. The Company met the prescribed performance milestones in fiscal 2019 such that the remaining outstanding 77,000 shares of common stock as of March 31, 2019 will vest subject to service requirements for vesting for these employees and stock-based compensation expense is being recognized accordingly over the employee’s service term. In May 2017, performance-based awards of restricted stock units for the potential issuance of 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. The Company met the prescribed performance milestones in fiscal 2018 such that the remaining outstanding 97,000 shares of common stock as of March 31, 2019 will vest subject to service requirements for vesting for these employees and stock-based compensation expense is being recognized accordingly over the employee’s service term. In May 2016, performance-based awards of restricted stock units for the potential issuance of 190,890 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. The Company met a portion of the prescribed performance milestones in fiscal 2017 such that the remaining outstanding 38,000 shares of common stock as of March 31, 2019 will vest subject to service requirements for vesting for these employees and stock-based compensation expense is being recognized accordingly over the employee’s service term. Market-Based Awards In June 2015, the Company awarded certain executive officers a total of up to 322,980 market-based restricted share units, of which 140,765 units remain outstanding. These restricted stock units will vest and result in the issuance of common stock based on continuing employment and the relative ranking of the total shareholder return, or TSR of the Company’s common stock in relation to the TSR of the component companies in the S&P Health Care Equipment Select Industry Index over a three-year performance period based on a comparison of average closing stock prices between June 2015 and June 2018. One-half of the market-based restricted stock units earned vested in June 2018 and the remaining restricted stock units will vest in June 2019 provided the executive officers are still employed with the Company. In November 2016, the Company awarded an executive officer a total of up to 41,526 restricted stock units. The restricted stock units are subject to both performance-and time-based vesting. These restricted stock units will vest and result in the issuance of common stock based on continuing employment, the Company achieving positive net profits measured in the aggregate over the first four full fiscal quarters following the grant date and the relative ranking of the TSR of the Company’s common stock in relation to the TSR of the component companies in the S&P Health Care Equipment Select Industry Index over a three-year performance period based on a comparison of average closing stock prices in June 2015 and June 2018. One-half of the restricted stock units vested in June 2018 based on performance criteria described above and the remaining half of the restricted stock units will vest in June 2019. The Company used a Monte Carlo simulation model to estimate the grant-date fair value of the restricted stock units granted in June 2015 and November 2016. The fair value related to the restricted stock units is being recorded as stock compensation expense over the period from date of grant to June 2019 regardless of the actual TSR outcome achieved. The table below sets forth the assumptions used to value the market-based awards and the estimated grant-date fair value: June 2015 Awards November 2016 Awards Risk-free interest rate 1.10 % 0.90 % Dividend yield 0 % 0 % Remaining performance period (years) 0.21 0.21 Expected volatility 47.2 % 50.6 % Estimated grant date fair value (per share) $ 93.49 - 107.10 $ 62.55 Target performance (number of shares) 107,660 41,526 Employee Stock Purchase Plan The Company has an employee stock purchase plan, or ESPP. Under the ESPP, eligible employees, including officers and directors, who have completed at least three months of employment with the Company or its subsidiaries who elect to participate in the purchase plan instruct the Company to withhold a specified amount of the employee’s income each payroll period during a six-month payment period (the periods April 1—September 30 and October 1—March 31). On the last business day of each six-month payment period, the amount withheld is used to purchase shares of the Company’s common stock at an exercise price equal to 85% of the lower of its market price on the first business day or the last business day of the payment period. |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 11. Income Taxes In December 2017, the Tax Cuts and Jobs Act (“Tax Reform Act”), was signed into law. The Tax Reform Act makes broad and complex changes to the U.S. tax code that were effective January 1, 2018. The Tax Reform Act included significant changes in tax laws, including, but not limited to, (1) reducing the U.S. federal corporate tax rate from 35 As a result of the Tax Reform Act, the Company’s U.S. federal statutory corporate income tax rate of 21% was applied in the computation of the income tax provision for the year ended March 31, 2019, a blended U.S. federal statutory corporate income tax rate of 31.5% was applied in the computation of the income tax provision for the year ended March 31, 2018 , and the pre-enactment rate of 35% was applied in the computation of the income tax provision for the year ended March 31, 2017. The blended U.S. federal statutory corporate tax rate of 31.5% represents the 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. As a result of the reduction in the federal statutory tax rate, the Company evaluated its ability to utilize its foreign tax credits carryforward. The Company has concluded that it will be able to use these foreign tax credits within the carryforward period. The Company provisionally remeasured its net deferred tax assets due to the lower U.S. federal statutory corporate tax rate and recorded an income tax expense adjustment of $21.4 million during the year ended March 31, 2018. Guidance issued by the SEC, provided a measurement period of one year from the enactment date to finalize the accounting for effects of the Tax Reform Act, and no adjustments were made to the Company’s provisional estimate of the impacts of the Tax Reform Act during the year ended March 31, 2019. The Tax Reform Act allows for a 100% deduction for the potential repatriation of foreign subsidiary earnings with minimal U.S. income tax consequences other than the one-time transition tax. Since most of the Company’s cash and cash equivalents held by foreign subsidiaries are disregarded entities for domestic tax purposes, any repatriation of such funds to the U.S. would likely have a nominal tax impact. In addition, the Company has elected to treat GILTI tax as a period expense and provide for the tax in the year that the tax is incurred. The GILTI regime resulted in additional federal income tax expense of $0.5 million during the year ended March 31, 2019. The Company’s income tax provision was $4.3 million, $48.3 million and $39.2 million for the fiscal years ended March 31, 2019, 2018 and 2017, respectively. The Company’s effective tax rate was 1.6%, 30.1% and 43.0% for the fiscal years ended March 31, 2019, 2018 and 2017, respectively. The The components of the Company’s income tax provision for the fiscal years ended March 31, 2019, 2018 and 2017 are as follows: Fiscal Years Ended March 31, 2019 2018 2017 (in $000's) Income before provision for income taxes: United States $ 223,340 $ 134,006 $ 78,172 Foreign 40,020 26,431 13,170 Income before income taxes 263,360 160,437 91,342 Current tax expense: Federal — 752 7,313 State 564 1,491 5,045 Foreign 11,525 3,400 1,066 12,089 5,643 13,424 Deferred tax (benefit) expense: Federal (7,153 ) 38,848 23,008 State (1,503 ) (1,014 ) (349 ) Foreign 911 4,790 3,144 (7,745 ) 42,624 25,803 Total income tax provision $ 4,344 $ 48,267 $ 39,227 The components of the Company’s net deferred taxes were as follows: March 31, 2019 March 31, 2018 (in $000's) Deferred tax assets Net operating loss and tax credit carryforwards $ 62,835 $ 48,724 Stock-based compensation 15,488 13,271 Nondeductible reserves and accruals 9,739 8,290 Foreign net operating loss carryforwards 7,360 9,598 Deferred revenue 3,677 3,770 Depreciation and amortization 485 826 Other, net 128 822 $ 99,712 $ 85,301 Deferred tax liabilities Goodwill (7,136 ) (6,787 ) In-process research and development (4,593 ) (5,045 ) Depreciation (2,175 ) (1,011 ) Basis differences on other investments (7,146 ) — Domestic deferred tax liability on foreign net operating loss carryforwards (680 ) (963 ) (21,730 ) (13,806 ) Net deferred tax assets 77,982 71,495 Valuation allowance (1,302 ) (1,652 ) Net deferred tax assets $ 76,680 $ 69,843 Reported as: Long-term deferred tax assets, net $ 77,502 $ 70,746 Long-term deferred tax liabilities (822 ) (903 ) Net deferred tax assets $ 76,680 $ 69,843 The significant differences between the statutory and effective income tax rate for the years ended March 31, 2019, 2018, and 2017 consist of the following items: Fiscal Years Ended March 31, 2019 2018 2017 Statutory income tax rate 21.0 % 31.5 % 35.0 % Increase (decrease) resulting from: Excess tax benefits from stock-based awards (24.1 ) (17.2 ) 0.2 Foreign taxes 4.1 2.2 2.0 Permanent differences 1.8 2.4 3.3 Credits (1.5 ) (4.9 ) (3.3 ) State taxes, net 0.1 2.0 3.8 Change in valuation allowance (0.4 ) 0.5 0.2 Effect of the Tax Reform Act on net deferred tax assets — 13.0 — Rate differential on foreign operations 0.2 — 0.1 Other 0.4 0.6 1.7 Effective tax rate 1.6 % 30.1 % 43.0 % The Company regularly assesses its ability to realize its deferred tax assets. Assessing the realization of deferred tax assets requires significant management judgment. In determining whether its deferred tax assets are more likely than not realizable, the Company evaluates all available positive and negative evidence, and weights the evidence based on its objectivity. As of March 31, 2019 and 2018, respectively, the Company maintained a valuation allowance of $1.3 million and $1.7 million for deferred tax assets primarily related to net operating loss, or NOL, carryforwards in certain foreign jurisdictions in which the Company has had limited or no history of profitability. Based on the review of all available evidence, the Company recorded a valuation allowance to reduce these deferred tax assets to the amount that is more likely than not to be realizable as of March 31, 2019 and 2018. Changes in the valuation allowance for deferred tax assets during the fiscal years ended March 31, 2019, 2018 and 2017 were as follows: Fiscal Years Ended March 31, 2019 2018 2017 (in $000's) Balance at beginning of year $ 1,652 $ 2,468 $ 2,418 Increases — 325 50 Decreases (350 ) (1,141 ) — Balance at end of year $ 1,302 $ 1,652 $ 2,468 As of March 31, 2019, the Company had NOLs of approximately $116.6 million, which expire in varying years from fiscal 2029 through fiscal 2034. NOLs generated during fiscal 2019 and prospectively are no longer subject to expiration. Federal NOL of $42.2 million, generated during the year ended March 31, 2019, primarily due to excess tax benefits, can be carried forward indefinitely. At March 31, 2019, the Company had foreign NOLs of approximately $2.8 million, primarily in France, which do not expire. As of March 31, 2019 and 2018, the Company has no material uncertain tax positions, and no interest and penalties on uncertain tax positions were recognized during the years ended March 31, 2019, 2018 and 2017, respectively. The Company and its subsidiaries are subject to U.S. federal income tax, as well as income tax of multiple state and foreign jurisdictions. During fiscal 2019, the Company closed an income tax audit in Germany, which covered fiscal years 2012 through 2015. The Company also closed an Internal Revenue Service (“IRS”) audit during fiscal 2019 relating to its fiscal year 2016 tax return. These audits did not materially impact our financial statements. All other tax years remain subject to examination by the IRS, state and foreign tax authorities. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 12. Commitments and Contingencies Commitments Future minimum lease payments under non-cancelable leases as of March 31, 2019 are approximately as follows: Operating Leases Fiscal Years Ended March 31, (in $000s) 2020 $ 3,398 2021 2,712 2022 2,000 2023 1,462 2024 1,414 Thereafter 3,288 Total minimum lease payments $ 14,274 In February 2017, the Company entered into a lease agreement for 21,603 square feet of office space in Danvers, Massachusetts expiring on July 31, 2022. In December 2017, the Company entered into an amendment to this lease to extend the term through August 31, 2025 and to add an additional 6,607 square feet of space for which rent began on June 1, 2018. In March 2018, the Company entered into a second amendment to the lease to add an additional 11,269 square feet of space. In July 2018 the Company entered into an amendment to lease an additional 23,864 square feet of space from October 1, 2018 through September 30, 2027. With this most recent amendment, the Company has leased 63,343 square feet in total at this location as of October 1, 2018. The Company also has a right of first offer to purchase the property from January 1, 2018 through August 31, 2035. The annual rent expense for this lease is estimated to be $0.9 million. In September 2016, the Company entered into a lease agreement for an office in Berlin, Germany which commenced in May 2017 and expires in March 2025. The annual rent expense for the lease is estimated to be $0.2 million. In October 2016, the 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. 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. Thoratec Matters Thoratec Corporation (“Thoratec”), a subsidiary of Abbott Laboratories, has challenged a number of Company-owned patents in Europe in connection with the launch of Thoratec’s HeartMate PHP medical device (“PHP”) in Europe. The Company has counterclaimed for infringement in the Dusseldorf Regional Court in Germany. The infringement action has been stayed until resolution of invalidity proceedings at the German Federal Court of Justice. These actions relate solely to Thoratec’s ability to manufacture and sell its PHP product in Europe and have no impact on the Company's ability to manufacture or sell its Impella® line of medical devices. Maquet Matters In December 2015, the Company received a letter from Maquet Cardiovascular LLC (“Maquet”), a subsidiary of Getinge AB, asserting that the Company’s Impella devices infringe certain claims with guidewire, lumen, rotor, purge and sensor features, which were in two Maquet patents and one pending patent application (which has since issued as a third patent) in the U.S. and elsewhere, and attaching a draft litigation complaint. The letter encouraged the Company to take a license from Maquet. In May 2016, the Company filed suit in U.S. District Court for the District of Massachusetts (“D. Mass.” or “the Court”) against Maquet, seeking a declaratory judgment that the Company’s Impella devices do not infringe Maquet’s cited patent rights. The three Maquet patents will expire in September 2020, December 2020 and October 2021. In August 2016, Maquet sent a letter to the Company identifying four new Maquet U.S. continuation patent filings with claims that Maquet alleges are infringed by the Company’s Impella devices. The four U.S. continuation applications have been issued as patents of Maquet and 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 (“2016 Action”). On July 21, 2017, the Court granted a motion to add three of the four additional continuation patents to the 2016 Action. On April 24 and 25, 2018, the Court conducted a Markman hearing on claim interpretation. On September 7, 2018, the judge issued a Memorandum and Order on Claim Construction, where he interpreted the disputed claim terms in the case. A hearing was held on November 2, 2018 to re-hear arguments on one of the terms. Maquet filed a motion for reconsideration of a disputed claim term. That motion was denied on May 22, 2019. Discovery remains ongoing and no schedule has yet been set for the remainder of the case. On November 22, 2017, Maquet filed a second action in D. Mass (the “2017 Action”) alleging that the Company’s Impella 2.5, Impella CP, and Impella 5.0 heart pumps infringe certain claims of the fourth additional U.S. continuation patent mentioned above (the seventh patent overall). Discovery in the 2017 Action is ongoing and no schedule has yet been set for the remainder of the case. In the 2016 Action and 2017 Action, Maquet seeks injunctive relief and monetary damages in the form of a reasonable royalty, with three times the amount for alleged willful infringement. In its responses to the Company’s counterclaims, Maquet admits that its current commercially available products do not embody the claims of the asserted patents. 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 7th 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. The first and second cases are in discovery stages. In a series of letters during January and February 2019, Maquet informed the Company of seven new divisional patent applications filed from the patents in the 2016 Action and 2017 Action and having claims that Maquet alleges would be infringed by the Impella products if the new applications were to issue as patents. The first of the seven new applications has issued and has been added to the 2017 Action. Any patents arising from the seven new applications will expire in September 2020. Following March 31, 2019, five of the six remaining new divisional patent applications of Maquet issued as patents or received indication from the U.S. Patent and Trademark Office that they will issue as patents. One of these patents has already been added to the 2017 Action and the parties have agreed to add the other new patents in due course. 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 reasonably estimate a possible loss or range of possible losses at this stage of each of the legal proceedings, including the significant number of legal and factual issues still to be resolved in the Maquet and Thoratec patent disputes. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Mar. 31, 2019 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | Note 13. Accrued Expenses Accrued expenses consisted of the following: March 31, 2019 March 31, 2018 (in $000's) Employee compensation $ 32,926 $ 30,330 Sales and income taxes 12,262 4,562 Research and development 3,309 3,162 Marketing 1,707 2,305 Professional, legal and accounting fees 2,757 1,870 Warranty 1,272 1,081 Other 3,187 2,837 $ 57,420 $ 46,147 Employee compensation consists primarily of accrued bonuses, accrued commissions and accrued employee benefits at March 31, 2019 and 2018. |
Segment and Enterprise Wide Dis
Segment and Enterprise Wide Disclosures | 12 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment and Enterprise Wide Disclosures | Note 14. 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 14%, 11% and 9% of total revenue during the fiscal years ended March 31, 2019, 2018 and 2017, respectively. As of March 31, 2019 and 2018, most of the Company’s long-lived assets are located in the U.S. except for $43.4 million and $35.5 million at March 31, 2019 and 2018, respectively, which are located primarily in Germany. |
Quarterly Results of Operation
Quarterly Results of Operation | 12 Months Ended |
Mar. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operation | Note 15. Quarterly Results of Operation (Unaudited) The following is a summary of the Company’s unaudited quarterly results of operations for the fiscal years ending March 31, 2019 and 2018: Fiscal Year Ended March 31, 2019 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Year (in $000's) Revenue $ 180,010 $ 181,778 $ 200,563 $ 207,081 $ 769,432 Cost of revenue 30,850 29,846 34,023 34,848 129,567 Other operating expenses 102,412 101,612 104,185 106,844 415,053 Other income, net (1) 1,739 1,513 2,155 33,141 38,548 Income before income taxes 48,487 51,833 64,510 98,530 263,360 Income tax provision (benefit) (2) (41,579 ) 1,706 19,648 24,569 4,344 Net income $ 90,066 $ 50,127 $ 44,862 $ 73,961 $ 259,016 Basic net income per share $ 2.02 $ 1.11 $ 1.00 $ 1.64 $ 5.77 Diluted net income per share $ 1.95 $ 1.09 $ 0.97 $ 1.60 $ 5.61 Fiscal Year Ended March 31, 2018 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Year (in $000's) Revenue $ 132,468 $ 132,823 $ 154,022 $ 174,436 $ 593,749 Cost of revenue 21,862 21,627 24,994 30,098 98,581 Other operating expenses 77,528 79,470 84,262 96,771 338,031 Other income, net 714 758 888 940 3,300 Income before income taxes 33,792 32,484 45,654 48,507 160,437 Income tax provision (benefit) (2)(3) (3,582 ) 7,981 32,208 11,660 48,267 Net income $ 37,374 $ 24,503 $ 13,446 $ 36,847 $ 112,170 Basic net income per share $ 0.85 $ 0.56 $ 0.30 $ 0.83 $ 2.54 Diluted net income per share $ 0.82 $ 0.54 $ 0.29 $ 0.80 $ 2.45 (1) In fiscal 2019, the Company invested $25.0 million in medical device company Shockwave Medical. The fair value of this investment as of March 31, 2019 was $56.2 million and the Company recognized a gain of $31.2 million in Other income. (2) On December 22, 2017, the Tax Cuts and Jobs Act, or Tax Reform Act, was enacted into law. This new law, among other items, reduces the U.S. federal statutory corporate income tax rate from 35% to 21% effective January 1, 2018. During the year ended March 31, 2018, the Company recorded tax expense adjustments for $21.4 million related to the revaluation of its deferred taxes due to a reduction of the U.S. federal statutory corporate income tax rate. (3) In the first quarter of fiscal 2018, the Company adopted ASU 2016-09, which requires that all excess tax benefits and tax deficiencies related share-based compensation arrangements be recognized as income tax benefit or expense, instead of in stockholders’ equity as previous guidance required. The income tax provision for the years ended March 31, 2019 and 2018 included excess tax benefits of $69.3 million and $31.0 million, respectively. These recognized excess tax benefits resulted from restricted stock units that vested or stock options that were exercised during the years ended March 31, 2019 and 2018. |
Basis of Preparation and Summ_2
Basis of Preparation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. The Company bases its estimates on historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. On an ongoing basis, the Company evaluates its estimates, including those related to revenue recognition, collectability of receivables, realizability of inventory, property and equipment, goodwill, intangible and other long-lived assets, accrued expenses, stock-based compensation, income taxes including deferred tax assets and liabilities, contingencies and litigation. Provisions for depreciation are based on their estimated useful lives using the straight-line method. Some of these estimates can be subjective and complex and, consequently, actual results may differ from these estimates under different assumptions or conditions. |
Cash Equivalents and Marketable Securities | Cash Equivalents and Marketable Securities The Company classifies any marketable security with an original maturity date of 90 days or less at the time of purchase as a cash equivalent. Cash equivalents are carried on the balance sheet at fair market value. The Company classifies any marketable security with a maturity date of greater than 90 days at the time of purchase as marketable securities and classifies marketable securities with a maturity date of greater than one year from the balance sheet date as long-term marketable securities. The Company’s marketable securities, consisting of U.S. Treasuries, U.S. Government Agency, and corporate debt securities, and commercial paper, 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. Marketable securities that the Company has the positive intent and ability to hold to maturity are reported at amortized cost and classified as held-to-maturity marketable securities. If the Company does not have the intent and ability to hold a marketable security to maturity, it reports the investment as available-for-sale marketable securities. The Company reports available-for-sale marketable securities at fair value, and includes unrealized gains and, to the extent deemed temporary, unrealized losses in stockholders’ equity. If any adjustment to fair value reflects a decline in the value of the investment, the Company considers available evidence to evaluate whether the decline is “other than temporary” and, if so, marks the marketable security to market through a charge reflected on the consolidated statements of operations. |
Major Customers and Concentrations of Credit Risk | Major Customers and Concentrations of Credit Risk The Company primarily sells its products to hospitals and distributors. No customer accounted for more than 10% of total revenues in fiscal years ended March 31, 2019, 2018 or 2017. No individual customer had an accounts receivable balance greater than 10% of total accounts receivable at March 31, 2019 and 2018. Credit is extended based on an evaluation of a customer’s historical financial condition and generally collateral is not required. The Company’s history of credit losses has not been significant and the Company maintains an allowance for doubtful accounts based on its assessment of the collectability of accounts receivable. Accounts receivables are geographically dispersed, primarily throughout the U.S., as well as in Europe and other foreign countries where formal distributor agreements exist in certain countries. Financial instruments which potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents, marketable securities, short and long-term marketable securities and accounts receivable. Management mitigates credit risk by limiting the investment type and maturity to securities that preserve capital, maintain liquidity and have a high credit quality. |
Financial Instruments | Financial Instruments The Company’s financial instruments are comprised 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. |
Inventories | Inventories Inventories are stated at the lower of cost or market. Cost is based on the first in, first out method. The Company regularly reviews inventory quantities on hand and writes down to its net realizable value any inventory that it believes to be impaired. Management considers forecast demand in relation to the inventory on hand, competitiveness of product offerings, market conditions and product life cycles when determining excess and obsolescence and net realizable value adjustments. Once inventory is written down and a new cost basis is established, it is not written back up if demand increases. |
Property and Equipment | Property and Equipment Property and equipment is recorded at cost less accumulated depreciation. Land is carried at cost and is not depreciated. Depreciation is computed using the straight-line method based on estimated useful lives of three to five years for machinery and equipment, computer software, and furniture and fixtures. Building and building improvements are depreciated using the straight-line method over estimated useful lives of seven to thirty-three years. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or the estimated useful lives of the related assets. Expenditures for maintenance and repairs are expensed as incurred. Upon retirement or other disposition of assets, the costs and related accumulated depreciation are eliminated from the accounts and the resulting gain or loss is reflected in operating expenses. Property and equipment is reviewed for impairment losses whenever events or changes in circumstances indicate the carrying amount may not be recoverable. An impairment loss would be recognized based on the amount by which the carrying value of the asset or asset group exceeds its fair value. Fair value is determined primarily using the estimated future cash flows associated with the asset or asset group under review discounted at a rate commensurate with the risk involved and other valuation techniques. |
Leases | Leases Lease agreements are evaluated to determine whether they are capital or operating leases in accordance with Financial Accounting Standards Board, or ASC, 840, “Leases.” When any one of the four test criteria in ASC 840 is met, the lease then qualifies as a capital lease. Capital leases are capitalized at the lower of the net present value of the total amount payable under the leasing agreement (excluding finance charges) or the fair market value of the leased asset. Capital lease assets are depreciated on a straight-line basis, over a period consistent with the Company’s normal depreciation policy for tangible fixed assets. Interest charges are expensed over the period of the term of the capital lease obligation in relation to the carrying value of the capital lease. Rent expense for operating leases, which may include free rent or fixed escalation amounts in addition to minimum lease payments, is recognized on a straight-line basis over the duration of each lease term. Effective April 1, 2019, the Company will adopt ASU 2016-02, “Leases.” This new guidance requires the Company’s lease commitments to be recognized as operating lease liabilities and right-of-use assets, which will increase total assets and total liabilities that the Company will report on its consolidated balance sheet in future periods. |
Goodwill | Goodwill Goodwill is recorded when consideration for an acquisition exceeds the fair value of the net tangible and intangible assets acquired. Goodwill is not amortized. The Company evaluates goodwill for impairment at least annually at October 31, as well as whenever events or changes in circumstances suggest that the carrying amount may not be recoverable. In applying the goodwill impairment test, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value. Qualitative factors may include, but are not limited to, macroeconomic conditions, industry conditions, the competitive environment, changes in the market for the Company’s products and services, regulatory and political developments, cost factors, and entity specific factors such as strategies and overall financial performance. If, after assessing these qualitative factors, the Company determines it is more likely than not that the fair value of a reporting unit is less than its carrying value, then performing a two-step impairment test is necessary. The goodwill test involves a two-step process. The first step is a comparison of the reporting unit’s fair value to its carrying value. If the reporting unit’s fair value exceeds its carrying value, no further procedures are required. However, if the reporting unit’s fair value is less than the carrying value, an impairment of goodwill may exist, requiring a second step to measure the amount of impairment loss. If the implied fair value of goodwill is less than the recorded goodwill, an impairment charge is recorded for the difference. The goodwill impairment test is performed at the reporting unit level by comparing the reporting unit’s carrying value, including goodwill, to the fair value of the reporting unit. The Company estimates the fair value of its single reporting unit using a combination of the income approach and the market approach. The income approach incorporates the use of a discounted cash flow method in which the estimated future cash flows and terminal values for the reporting unit is discounted to a present value using an appropriate discount rate. Cash flow projections are based on management’s estimates of economic and market conditions which drive key assumptions of revenue growth rates, operating margins, cash flows, capital expenditures and working capital requirements. The discount rate is based on the specific risk characteristics of the reporting unit and its underlying forecast. The market approach estimates fair value by comparing publicly traded companies with similar operating and investment characteristics as the reporting unit. The fair values determined by the market approach and income approach, are weighted to determine the fair value for the reporting unit based primarily on the similarity of the operating and investment characteristics of the reporting unit to the comparable publicly traded companies used in the market approach. |
In-Process Research and Development | In-Process Research and Development In-process research and development, or IPR&D, assets are considered to be indefinite-lived until the completion or abandonment of the associated research and development projects. IPR&D assets represent the fair value assigned to technologies that are acquired, which at the time of acquisition have not reached technological feasibility and have no alternative future use. During the period that the IPR&D assets are considered indefinite-lived, they are tested for impairment on an annual basis on October 31, or more frequently if the Company becomes aware of any events occurring or changes in circumstances that indicate that the fair value of the IPR&D assets are less than their carrying values. If and when development is complete, which generally occurs upon regulatory approval and the Company is able to commercialize products associated with the IPR&D assets, these assets are then deemed definite-lived and are amortized based on their estimated useful lives at that point in time. If development is terminated or abandoned, the Company may have a full or partial impairment charge related to the IPR&D assets, calculated as the excess of carrying value of the IPR&D assets over fair value. |
Contingent Consideration | Contingent Consideration Contingent consideration represents potential milestones that the Company could pay additional consideration for a business acquisition and is recorded as a liability and is measured at fair value using a combination of (1) an income approach, based on various revenue and cost assumptions and applying a probability to each outcome and (2) a Monte-Carlo valuation model that simulates outcomes based on management estimates. With the income approach, p robabilities were applied to each potential scenario and the resulting values were discounted using a rate that considers the weighted average cost of capital, the related projections, and the overall business. The Monte-Carlo valuation model simulates estimated future revenues during the earn out-period using management's best estimates. |
Accrued Expenses | Accrued Expenses As part of the process of preparing its financial statements, the Company is required to estimate accrued expenses. This process includes identifying services that third parties have performed and estimating the level of service performed and the associated cost incurred on these services as of each balance sheet date in its financial statements. Examples of estimated accrued expenses include estimates for certain payroll costs, such as bonuses and commissions; contract service fees, such as amounts due to clinical research organizations and investigators in conjunction with clinical trials; professional service fees, such as attorneys and accountants, and third-party expenses relating to marketing efforts associated with commercialization of the Company’s product and product candidates. In the event that the Company does not identify certain costs that have been incurred or it under or over-estimates the level of services or the costs of such services, reported expenses for a reporting period could be overstated or understated. The dates in which certain services commence and end, the level of services performed on or before a given date and the cost of services is often subject to the Company’s judgment. The Company makes these judgments and estimates based upon known facts and circumstances. |
Revenue Recognition | Revenue Recognition On April 1, 2018 the Company adopted ASU 2014-09 (“Topic 606”), “Revenue from Contracts with Customers”. For a discussion on the impact of this accounting policy adoption, including key accounting policies and elections, see “ Note 3. Revenue Recognition |
Product Warranty | Product Warranty The Company generally provides a one-year warranty for certain products sold in which estimated contractual warranty obligations are recorded as an expense at the time of shipment. The Company’s products are subject to regulatory and quality standards. Future warranty costs are estimated based on historical product performance rates and related costs to repair given products. The accounting estimate related to product warranty expense involves judgment in determining future estimated warranty costs. Should actual performance rates or repair costs differ from estimates, revisions to the estimated warranty liability would be required. |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Comprehensive income (loss) is comprised of net income, plus all changes in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources, including any foreign currency translation adjustments. These changes in equity are recorded as adjustments to accumulated other comprehensive income (loss) in the Company’s consolidated balance sheet. The components of accumulated other comprehensive income (loss) consist of foreign currency translation adjustments and changes in unrealized gains (losses) on marketable securities. There were no reclassifications out of accumulated other comprehensive income (loss) during the fiscal years ended March 31, 2019, 2018 and 2017. |
Translation of Foreign Currencies | Translation of Foreign Currencies The functional currency of the Company’s foreign subsidiaries is their local currency. The assets and liabilities of the Company’s foreign subsidiaries are translated into U.S. dollars at exchange rates in effect at the balance sheet date. Income and expense items in the Company’s consolidated statement of operations are translated at the average exchange rates prevailing during the period. The cumulative translation effect for subsidiaries using a functional currency other than the U.S. dollar is included in accumulated other comprehensive income (loss) as a separate component of stockholders’ equity. The Company’s intercompany accounts are denominated in the functional currency of the foreign subsidiary. Gains and losses resulting from the remeasurement of intercompany receivables that the Company considers to be of a long-term investment nature are recorded in accumulated other comprehensive income or loss as a separate component of stockholders’ equity, while gains and losses resulting from the remeasurement of intercompany receivables from those foreign subsidiaries for which the Company anticipates settlement in the foreseeable future are recorded in the consolidated statement of operations. The net foreign currency translation gains and losses recorded in the consolidated statements of operations for the fiscal years ended March 31, 2019, 2018 and 2017 were not significant. |
Net Income Per Share | 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 fiscal year. Diluted net income per share is computed using the treasury stock method by dividing net income by the weighted average number of dilutive common shares outstanding during the fiscal year. Diluted shares outstanding is calculated by adding to the weighted average shares outstanding any potential dilutive securities outstanding for the fiscal year. 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. For the fiscal years ended March 31, 2019, 2018 and 2017, the Company’s basic and diluted net income per share were as follows (figures in tables are in thousands, except per share data): Fiscal Years Ended March 31, Basic Net Income Per Share 2019 2018 2017 Net income $ 259,016 $ 112,170 $ 52,116 Weighted average shares - basic 44,911 44,153 43,238 Net income per share - basic $ 5.77 $ 2.54 $ 1.21 Fiscal Years Ended March 31, Diluted Net Income Per Share 2019 2018 2017 Net income $ 259,016 $ 112,170 $ 52,116 Weighted average shares - basic 44,911 44,153 43,238 Effect of dilutive securities 1,240 1,696 1,420 Weighted average shares - diluted 46,151 45,849 44,658 Net income per share - diluted $ 5.61 $ 2.45 $ 1.17 For the fiscal years ended March 31, 2019, 2018 and 2017, approximately 64,000, 155,000 and 24,000 shares of common stock underlying outstanding securities related to out-of-the-money stock options and performance-based awards where milestones were not met were not included in the computation of diluted earnings per share because their inclusion would be anti-dilutive. |
Stock-Based Compensation | Stock-Based Compensation The Company’s stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as an expense over the requisite service period. The fair value of stock option grants is estimated using the Black-Scholes option pricing model. Use of the valuation model requires management to make certain assumptions with respect to selected model inputs. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for a term consistent with the expected life of the stock options. Volatility assumptions are calculated based on historical volatility of the Company’s stock. The Company estimates the expected term of options based on historical exercise experience and estimates of future exercises of unexercised options. In addition, an expected dividend yield of zero is used in the option valuation model because the Company does not pay cash dividends and does not expect to pay any cash dividends in the foreseeable future. Forfeitures are recorded as they occur instead of estimating forfeitures that are expected to occur. An accounting policy change was made by the Company related to the recording of forfeitures in fiscal 2018 as a result of the adoption of ASU 2016-09, “ ” For awards with service conditions only, the Company recognizes stock-based compensation expense on a straight-line basis over the requisite service period. For awards with service, performance and market-based conditions, the Company recognizes stock-based compensation expense using the graded vesting method over the requisite service period. Estimates of stock-based compensation expense for an award with performance conditions are based on the probable outcome of the performance conditions. The cumulative effect of changes in the probability outcomes are recorded in the period in which the changes occur. For awards with market-based conditions, the Company uses a Monte Carlo simulation model to estimate that the grant-date fair value. The fair value related to market-based awards is recorded as stock-based compensation expense over the vesting period regardless of whether the market condition is achieved or not. |
Income Taxes | Income Taxes The Company’s provision for income taxes is comprised of a current and deferred provision. The current income tax provision is calculated as the estimated taxes payable or refundable on income tax returns for the current fiscal year. The deferred income tax provision is calculated for the estimated future income tax effects attributable to temporary differences and carryforwards using expected tax rates in effect in the years during which the temporary differences are expected to reverse. Deferred income taxes are recognized for the tax consequences in future years as the differences between the tax bases of assets and liabilities and their financial reporting amounts at each fiscal year end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to impact taxable income. The Company regularly assesses its ability to realize its deferred tax assets. Assessing the realization of deferred tax assets requires significant management judgment. Valuation allowances are established when necessary to reduce net deferred tax assets to the amount that is more likely than not to be realized. The Company recognizes and measures uncertain tax positions using a two-step approach. The first step is to evaluate the tax position for recognition by determining if, based on the technical merits, it is more likely than not that the position will be sustained upon audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit at the largest amount that is more likely than not of being realized upon ultimate settlement. The Company reevaluates these uncertain tax positions on an ongoing basis, when applicable. This evaluation is based on factors including, but not limited to, changes in facts or circumstances, new information and technical insights, and changes in tax laws. Any changes in these factors could result in the recognition of a tax benefit or an additional charge to the tax provision. Please refer to “ Note 11. Income Taxes |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Effective April 1, 2018, the Company adopted the Financial Accounting Standards Board (“FASB”) standard update ASU 2014-09 (“Topic 606”), “Revenue from Contracts with Customers,” which provides a principles-based, five-step approach to measure and recognize revenue from contracts with customers. The adoption did not have a material impact on the Company’s consolidated financial statements as of the adoption date, or for the year ended March 31, 2019. Additional information and disclosures required by this new standard are contained in “ Note 3. Revenue Recognition Effective April 1, 2018, the Company adopted the FASB standard update ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities,” which requires certain financial assets and equity investments to be measured at fair value with changes in fair value recognized in the statement of operations. The adoption of this guidance did not have a material impact on the Company’s consolidated statement of operations, cash flows, and balance sheet as of the adoption date or for the year ended March 31, 2019. Additional information and disclosures required by this new standard are contained in “ Note 8. Goodwill, In-Process Research and Development, and Other Assets On June 20, 2018, the FASB issued ASU 2018-07, “Compensation – Stock Compensation (“Topic 718”): Improvements to Nonemployee Share-Based Payment Accounting,” which simplifies the accounting for share-based payments granted to nonemployees for goods and services. ASU 2018-07 eliminated the previous guidance for accounting for share-based payments to nonemployees and expanded Topic 718 to include share-based payments transactions to nonemployees. ASU 2018-07 is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. The adoption of ASU 2018-07 required a modified retrospective transition approach, with a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year. The Company early adopted ASU 2018-07 in the first quarter of fiscal 2019. The adoption of this guidance did not have a material impact on the Company’s consolidated statements of operations, cash flows, and balance sheet as of the adoption date or for the year ended March 31, 2019. 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,” ASU 2016-09, which simplifies several aspects of the accounting for share-based payment transactions, including income tax consequences, recognition of stock compensation award forfeitures, classification of awards as either equity or liabilities, the calculation of diluted shares outstanding and classification on the statement of cash flows. The following table summarizes the most significant impacts of ASU 2016-09: Description of Change: Impact of Change Upon Adoption on April 1, 2017 and for the Year Ended March 31, 2018: 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 year ended March 31, 2018 included excess tax benefits of $31.0 million. These recognized excess tax benefits resulted from restricted stock units that vested or stock options that were exercised during the year ended March 31, 2018. 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 $31.0 million for the year ended March 31, 2018. 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, 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 Retained Earnings (Accumulated Deficit) Accumulated Other Comprehensive 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 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 |
Recently Issued Accounting Pronouncements Not Yet Effective | Recently Issued Accounting Pronouncements Not Yet Effective In February 2016, the FASB issued ASU 2016-02, “Leases.” The new guidance significantly impacts lessee accounting and financial statement disclosures. Specifically, this guidance requires lessees to identify arrangements that should be accounted for as leases. Under this guidance, for lease arrangements exceeding a one-year term, a right-of-use asset and lease obligation is recorded by the lessee for all leases on the balance sheet, whether operating or financing, while the statement of operations includes lease expense for operating leases and amortization and interest expense for financing leases. The lease obligation amount recorded on the balance sheet at the date of adoption of this guidance must be calculated using the applicable incremental borrowing rate at the date of adoption. Leases with a term of one year or less will be accounted for similar to existing guidance for operating leases. The Company has evaluated its lease arrangements to determine the impact of ASU 2016-02 on its consolidated financial statements as well as updating processes and controls in order to adopt the new standard. This evaluation included a review of the Company’s existing leasing arrangements on its facilities and a review of existing contracts with its suppliers, vendors, and customers to determine if these agreements contained embedded leases. Based on the results of this evaluation, the adoption of this standard will not have a material impact to the Company’s consolidated financial statements. Lease commitments will be recognized as operating lease liabilities and right-of-use assets upon adoption, which will increase total assets and total liabilities that the Company reports on its consolidated balance sheet. The Company also anticipates changes to its disclosures to comply with the new disclosure requirements. In addition, the Company is implementing necessary changes to its lease accounting policies and controls. ASU 2016-02 must be adopted using a modified retrospective approach for all leases existing at, or entered into after the date of initial adoption, with an option to elect to use certain transition relief. ASU 2016-02 will become effective for the Company upon adoption on April 1, 2019. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326).” This new guidance will require financial instruments to be measured at amortized cost, and accounts receivables to be presented at the net amount expected to be collected. The new model requires an entity to estimate credit losses based on historical information, current information, and reasonable and supportable forecasts, including estimates of prepayments. ASU 2016-13 is effective for annual reporting periods beginning after December 31, 2019. The Company does not expect the adoption of this standard to have a material impact on its consolidated financial statements. ASU 2016-13 will become effective for the Company in fiscal 2021. In January 2017, the FASB issued ASU 2017-04, “Intangibles - Goodwill and Other (Topic 350).” The new guidance simplifies the accounting for goodwill impairment by removing Step 2 of the goodwill impairment test, which required companies to estimate the implied fair value of goodwill and recognize an impairment charge by the amount in which the carrying value exceeds the implied fair value. Under the new guidance, if the carrying value of a reporting unit exceeds its fair value, a goodwill impairment charge will be recorded, even if the difference is attributable to the fair value of other assets in the reporting unit. ASU 2017-04 is effective for annual reporting periods beginning after December 15, 2019. The Company does not expect the adoption of this standard to have a material impact on its consolidated financial statements. ASU 2017-04 will become effective for the Company in fiscal 2021. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820).” which modifies the disclosure requirements on fair value measurements. The Company has investments accounted for and disclosed under Topic 820 and will modify disclosures as applicable to conform with the new guidance. ASU 2018-13 is effective for annual reporting periods beginning after December 15, 2019 and early adoption is permitted. The Company does not expect the adoption of this standard and the required disclosure changes to have a material impact on its consolidated financial statements. ASU 2018-13 will become effective for the Company in fiscal 2021. |
Basis of Preparation and Summ_3
Basis of Preparation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Computation of Basic and Diluted Net Income Per Share | For the fiscal years ended March 31, 2019, 2018 and 2017, the Company’s basic and diluted net income per share were as follows (figures in tables are in thousands, except per share data): Fiscal Years Ended March 31, Basic Net Income Per Share 2019 2018 2017 Net income $ 259,016 $ 112,170 $ 52,116 Weighted average shares - basic 44,911 44,153 43,238 Net income per share - basic $ 5.77 $ 2.54 $ 1.21 Fiscal Years Ended March 31, Diluted Net Income Per Share 2019 2018 2017 Net income $ 259,016 $ 112,170 $ 52,116 Weighted average shares - basic 44,911 44,153 43,238 Effect of dilutive securities 1,240 1,696 1,420 Weighted average shares - diluted 46,151 45,849 44,658 Net income per share - diluted $ 5.61 $ 2.45 $ 1.17 |
Summary of Most Significant Impacts of ASU 2016-09 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 Retained Earnings (Accumulated Deficit) Accumulated Other Comprehensive 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 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 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Disaggregated Revenue by Major Business Line and Geographical Location | The following table disaggregates the Company’s revenue by products and services: Fiscal Years Ended March 31, 2019 2018 2017 (in $000's) Impella product revenue $ 741,699 $ 570,870 $ 423,694 Service and other revenue 27,733 22,879 21,610 Total revenue $ 769,432 $ 593,749 $ 445,304 The following table disaggregates the Company’s revenue by geographical location: Fiscal Years Ended March 31, 2019 2018 2017 (in $000's) U.S. revenue $ 665,082 $ 526,685 $ 405,781 International revenue 104,350 67,064 39,523 Total revenue $ 769,432 $ 593,749 $ 445,304 |
Summary of Activity of Product Revenue Rebates and Discounts | The following table summarizes product revenue rebates and discounts for the year ended March 31, 2019 (in thousands): Rebates and Discounts Balance at March 31, 2018 $ 1,405 Credits related to prior period balance (759 ) Provision related to current period revenue 2,180 Credits related to current period revenue (1,294 ) Balance at March 31, 2019 $ 1,532 |
Cash Equivalents, Marketable _2
Cash Equivalents, Marketable Securities and Fair Value Measurements (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Cash Equivalents and Marketable Securities by Balance Sheet Classification | The Company’s cash equivalents and marketable securities at March 31, 2019 and 2018 are classified on the balance sheet as follows: March 31, 2019 March 31, 2018 (in $000's) Cash equivalents $ 80,089 $ 22,595 Short-term marketable securities 370,677 319,274 Long-term marketable securities 21,718 37,502 $ 472,484 $ 379,371 |
Cash Equivalents and Marketable Securities | The Company’s cash equivalents and marketable securities at March 31, 2019 and 2018 are invested in the following: Amortized Gross Unrealized Gross Unrealized Fair Market Cost Gains Losses Value March 31, 2019: (in $000's) Money market funds $ 60,089 $ — $ — $ 60,089 Repurchase agreements 20,000 — — 20,000 Short-term U.S. Treasury mutual fund securities 58,786 13 (12 ) 58,787 Short-term government-backed securities 126,336 60 (15 ) 126,381 Short-term corporate debt securities 128,626 97 (9 ) 128,714 Short-term commercial paper 56,780 16 (1 ) 56,795 Long-term corporate debt securities 21,529 189 — 21,718 $ 472,146 $ 375 $ (37 ) $ 472,484 Amortized Gross Unrealized Gross Unrealized Fair Market Cost Gains Losses Value March 31, 2018: (in $000's) Money market funds $ 5,845 $ — $ — $ 5,845 Repurchase agreements 16,750 — — 16,750 Short-term U.S. Treasury mutual fund securities 18,132 — (29 ) 18,103 Short-term government-backed securities 212,255 3 (538 ) 211,720 Short-term corporate debt securities 52,737 — (161 ) 52,576 Short-term commercial paper 36,936 2 (63 ) 36,875 Long-term U.S. Treasury mutual fund securities 10,953 — (16 ) 10,937 Long-term government-backed securities 24,798 1 (12 ) 24,787 Long-term corporate debt securities 1,777 1 — 1,778 $ 380,183 $ 7 $ (819 ) $ 379,371 |
Financial Instruments Measured at Fair Value | The following table presents the Company’s fair value hierarchy for its financial instruments measured at fair value as of March 31, 2019 and 2018: Level 1 Level 2 Level 3 Total March 31, 2019: (in $000's) Assets Money market funds $ 60,089 $ — $ — $ 60,089 Repurchase agreements — 20,000 — 20,000 Short-term U.S. Treasury mutual fund securities — 58,787 — 58,787 Short-term government-backed securities — 126,381 — 126,381 Short-term corporate debt securities — 128,714 — 128,714 Short-term commercial paper — 56,795 — 56,795 Long-term corporate debt securities — 21,718 — 21,718 Investment in Shockwave Medical (see Note 8 56,195 — — 56,195 Liabilities Contingent consideration — — 9,575 9,575 Level 1 Level 2 Level 3 Total March 31, 2018: (in $000's) Assets Money market funds $ 5,845 $ — $ — $ 5,845 Repurchase agreements — 16,750 — 16,750 Short-term U.S. Treasury mutual fund securities — 18,103 — 18,103 Short-term government-backed securities — 211,720 — 211,720 Short-term corporate debt securities — 52,576 — 52,576 Short-term commercial paper — 36,875 — 36,875 Long-term U.S. Treasury mutual fund securities — 10,937 — 10,937 Long-term government-backed securities — 24,787 — 24,787 Long-term corporate debt securities — 1,778 — 1,778 Liabilities Contingent consideration — — 10,490 10,490 |
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 March 31, 2019 (in $000's) Valuation Methodology Significant Unobservable Input Weighted Average (range, if applicable) Clinical and regulatory milestone $ 5,371 Probability weighted income approach Projected fiscal year of milestone payments 2020 to 2023 Discount rate 3.8% to 4.0% Probability of occurrence Probability adjusted level of 40% for the base case scenario and 15% to 40% for various downside and upside scenarios Revenue-based milestone 4,204 Monte Carlo simulation model Projected fiscal year of milestone payments 2025 to 2035 Discount rate 17% Expected volatility for forecasted revenues 50% Probability of payment (risk-neutral) 70.1% $ 9,575 |
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 fiscal years ended March 31, 2019, 2018 and 2017: Fiscal Years Ended March 31, 2019 2018 2017 (in $000's) Level 3 liabilities, beginning balance $ 10,490 $ 9,153 $ 7,563 Additions — — — Payments — — — Change in fair value (915 ) 1,337 1,590 Level 3 liabilities, ending balance $ 9,575 $ 10,490 $ 9,153 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Components of Accounts Receivable | The components of accounts receivable are as follows: March 31, 2019 March 31, 2018 (in $000's) Trade receivables $ 91,849 $ 70,330 Allowance for doubtful accounts (1,040 ) (320 ) $ 90,809 $ 70,010 |
Summary of Allowance for Doubtful Accounts Receivable | Fiscal Years Ended March 31, 2019 2018 2017 (in $000's) Balance at beginning of year $ 320 $ 282 $ 124 Additions 720 38 159 Write-offs — — (1 ) Balance at end of year $ 1,040 $ 320 $ 282 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | The components of inventories are as follows: March 31, 2019 March 31, 2018 (in $000's) Raw materials and supplies $ 24,468 $ 16,481 Work-in-progress 35,195 23,179 Finished goods 21,279 10,544 $ 80,942 $ 50,204 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Components of Property and Equipment | The components of property and equipment are as follows: March 31, 2019 March 31, 2018 (in $000's) Land $ 7,262 $ 7,680 Building and building improvements 86,705 63,700 Leasehold improvements 2,190 2,905 Machinery and equipment 59,146 42,787 Furniture and fixtures 11,456 8,104 Construction in progress 17,946 19,850 Total cost 184,705 145,026 Less accumulated depreciation (39,700 ) (27,859 ) $ 145,005 $ 117,167 |
Goodwill In-Process Research _2
Goodwill In-Process Research and Development and Other Assets (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
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 4,763 Balance at March 31, 2018 $ 35,808 Foreign currency translation impact (3,207 ) Balance at March 31, 2019 $ 32,601 |
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 fiscal years ended March 31, 2019 and 2018 are as follows: (in $000's) Balance at March 31, 2017 $ 14,482 Foreign currency translation impact 2,223 Balance at March 31, 2018 $ 16,705 Foreign currency translation impact (1,497 ) Balance at March 31, 2019 $ 15,208 |
Carrying value of Other Investments | The carrying value of the Company’s portfolio of other investments and the change in the balance for fiscal years ended March 31, 2019, 2018 and 2017 are as follows: Fiscal Years Ended March 31, 2019 2018 2017 (in $000's) Beginning Balance $ 12,649 $ 7,249 $ 4,350 Additions 39,935 6,400 2,899 Disposals (1,966 ) — — Change in fair value, net 30,161 (1,000 ) — Ending Balance $ 80,779 $ 12,649 $ 7,249 |
Stock Award Plans and Stock-B_2
Stock Award Plans and Stock-Based Compensation (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Stock-Based Compensation Recognized | The following table summarizes stock-based compensation expense by financial statement line item in the Company’s consolidated statements of operations for the fiscal years ended March 31, 2019, 2018 and 2017: Fiscal Years Ended March 31, 2019 2018 2017 (in $000's) Cost of revenue $ 2,643 $ 1,721 $ 1,061 Research and development 9,312 5,895 6,050 Selling, general and administrative 42,539 32,737 25,755 $ 54,494 $ 40,353 $ 32,866 |
Components of Stock-Based Compensation | The components of stock-based compensation for the fiscal years ended March 31, 2019, 2018 and 2017 were as follows: Fiscal Years Ended March 31, 2019 2018 2017 (in $000's) Restricted stock units $ 45,998 $ 34,559 $ 26,570 Stock options 7,445 5,202 5,829 Employee stock purchase plan 1,051 592 467 $ 54,494 $ 40,353 $ 32,866 |
Summary of Stock Option Activity | The following table summarized stock option activity for the fiscal year ended March 31, 2019: Weighted Weighted Average Aggregate Average Remaining Intrinsic Options Exercise Contractual Value (in thousands) Price Term (years) (in thousands) Outstanding at beginning of period 1,282 $ 46.81 5.31 $ 313,158 Granted 81 379.90 Exercised (485 ) 26.68 Cancelled and expired (25 ) 138.68 Outstanding at end of period 853 $ 87.14 5.57 $ 176,629 Exercisable at end of period 623 $ 40.72 4.58 $ 152,598 |
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 fiscal years ended March 31, 2019, 2018 and 2017 was as follows: Fiscal Years Ended March 31, 2019 2018 2017 Valuation assumptions: Weighted average grant-date fair value $ 141.47 $ 52.34 $ 42.40 Risk-free interest rate 2.91 % 1.87 % 1.41 % Expected option life (years) 4.04 4.07 4.14 Expected volatility 42.8 % 43.5 % 48.9 % |
Restricted Stock Units | |
Summary of Restricted Stock Units Activity | The following table summarizes restricted stock unit activity for the fiscal year ended March 31, 2019: Number of Shares Weighted Average Grant Date Fair Value (in thousands) (per share) Restricted stock units at beginning of period 880 $ 109.01 Granted 195 376.95 Vested (427 ) 103.54 Forfeited (28 ) 189.05 Restricted stock units at end of period 620 $ 193.53 |
Monte Carlo Simulation Model to Estimate Grant-Date Fair Value of Restricted Stock Units | The table below sets forth the assumptions used to value the market-based awards and the estimated grant-date fair value: June 2015 Awards November 2016 Awards Risk-free interest rate 1.10 % 0.90 % Dividend yield 0 % 0 % Remaining performance period (years) 0.21 0.21 Expected volatility 47.2 % 50.6 % Estimated grant date fair value (per share) $ 93.49 - 107.10 $ 62.55 Target performance (number of shares) 107,660 41,526 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income before Income Taxes | The components of the Company’s income tax provision for the fiscal years ended March 31, 2019, 2018 and 2017 are as follows: Fiscal Years Ended March 31, 2019 2018 2017 (in $000's) Income before provision for income taxes: United States $ 223,340 $ 134,006 $ 78,172 Foreign 40,020 26,431 13,170 Income before income taxes 263,360 160,437 91,342 Current tax expense: Federal — 752 7,313 State 564 1,491 5,045 Foreign 11,525 3,400 1,066 12,089 5,643 13,424 Deferred tax (benefit) expense: Federal (7,153 ) 38,848 23,008 State (1,503 ) (1,014 ) (349 ) Foreign 911 4,790 3,144 (7,745 ) 42,624 25,803 Total income tax provision $ 4,344 $ 48,267 $ 39,227 |
Components of Income Tax Provision | The components of the Company’s income tax provision for the fiscal years ended March 31, 2019, 2018 and 2017 are as follows: Fiscal Years Ended March 31, 2019 2018 2017 (in $000's) Income before provision for income taxes: United States $ 223,340 $ 134,006 $ 78,172 Foreign 40,020 26,431 13,170 Income before income taxes 263,360 160,437 91,342 Current tax expense: Federal — 752 7,313 State 564 1,491 5,045 Foreign 11,525 3,400 1,066 12,089 5,643 13,424 Deferred tax (benefit) expense: Federal (7,153 ) 38,848 23,008 State (1,503 ) (1,014 ) (349 ) Foreign 911 4,790 3,144 (7,745 ) 42,624 25,803 Total income tax provision $ 4,344 $ 48,267 $ 39,227 |
Components of Net Deferred Taxes | The components of the Company’s net deferred taxes were as follows: March 31, 2019 March 31, 2018 (in $000's) Deferred tax assets Net operating loss and tax credit carryforwards $ 62,835 $ 48,724 Stock-based compensation 15,488 13,271 Nondeductible reserves and accruals 9,739 8,290 Foreign net operating loss carryforwards 7,360 9,598 Deferred revenue 3,677 3,770 Depreciation and amortization 485 826 Other, net 128 822 $ 99,712 $ 85,301 Deferred tax liabilities Goodwill (7,136 ) (6,787 ) In-process research and development (4,593 ) (5,045 ) Depreciation (2,175 ) (1,011 ) Basis differences on other investments (7,146 ) — Domestic deferred tax liability on foreign net operating loss carryforwards (680 ) (963 ) (21,730 ) (13,806 ) Net deferred tax assets 77,982 71,495 Valuation allowance (1,302 ) (1,652 ) Net deferred tax assets $ 76,680 $ 69,843 Reported as: Long-term deferred tax assets, net $ 77,502 $ 70,746 Long-term deferred tax liabilities (822 ) (903 ) Net deferred tax assets $ 76,680 $ 69,843 |
Differences Between Statutory and Effective Income Tax Rate | The significant differences between the statutory and effective income tax rate for the years ended March 31, 2019, 2018, and 2017 consist of the following items: Fiscal Years Ended March 31, 2019 2018 2017 Statutory income tax rate 21.0 % 31.5 % 35.0 % Increase (decrease) resulting from: Excess tax benefits from stock-based awards (24.1 ) (17.2 ) 0.2 Foreign taxes 4.1 2.2 2.0 Permanent differences 1.8 2.4 3.3 Credits (1.5 ) (4.9 ) (3.3 ) State taxes, net 0.1 2.0 3.8 Change in valuation allowance (0.4 ) 0.5 0.2 Effect of the Tax Reform Act on net deferred tax assets — 13.0 — Rate differential on foreign operations 0.2 — 0.1 Other 0.4 0.6 1.7 Effective tax rate 1.6 % 30.1 % 43.0 % |
Changes in Valuation Allowance for Deferred Tax Assets | Changes in the valuation allowance for deferred tax assets during the fiscal years ended March 31, 2019, 2018 and 2017 were as follows: Fiscal Years Ended March 31, 2019 2018 2017 (in $000's) Balance at beginning of year $ 1,652 $ 2,468 $ 2,418 Increases — 325 50 Decreases (350 ) (1,141 ) — Balance at end of year $ 1,302 $ 1,652 $ 2,468 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Minimum Lease Payments Under Non-Cancelable Leases | Future minimum lease payments under non-cancelable leases as of March 31, 2019 are approximately as follows: Operating Leases Fiscal Years Ended March 31, (in $000s) 2020 $ 3,398 2021 2,712 2022 2,000 2023 1,462 2024 1,414 Thereafter 3,288 Total minimum lease payments $ 14,274 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | Accrued expenses consisted of the following: March 31, 2019 March 31, 2018 (in $000's) Employee compensation $ 32,926 $ 30,330 Sales and income taxes 12,262 4,562 Research and development 3,309 3,162 Marketing 1,707 2,305 Professional, legal and accounting fees 2,757 1,870 Warranty 1,272 1,081 Other 3,187 2,837 $ 57,420 $ 46,147 |
Quarterly Results of Operation
Quarterly Results of Operation (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Unaudited Quarterly Results of Operations | The following is a summary of the Company’s unaudited quarterly results of operations for the fiscal years ending March 31, 2019 and 2018: Fiscal Year Ended March 31, 2019 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Year (in $000's) Revenue $ 180,010 $ 181,778 $ 200,563 $ 207,081 $ 769,432 Cost of revenue 30,850 29,846 34,023 34,848 129,567 Other operating expenses 102,412 101,612 104,185 106,844 415,053 Other income, net (1) 1,739 1,513 2,155 33,141 38,548 Income before income taxes 48,487 51,833 64,510 98,530 263,360 Income tax provision (benefit) (2) (41,579 ) 1,706 19,648 24,569 4,344 Net income $ 90,066 $ 50,127 $ 44,862 $ 73,961 $ 259,016 Basic net income per share $ 2.02 $ 1.11 $ 1.00 $ 1.64 $ 5.77 Diluted net income per share $ 1.95 $ 1.09 $ 0.97 $ 1.60 $ 5.61 Fiscal Year Ended March 31, 2018 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Year (in $000's) Revenue $ 132,468 $ 132,823 $ 154,022 $ 174,436 $ 593,749 Cost of revenue 21,862 21,627 24,994 30,098 98,581 Other operating expenses 77,528 79,470 84,262 96,771 338,031 Other income, net 714 758 888 940 3,300 Income before income taxes 33,792 32,484 45,654 48,507 160,437 Income tax provision (benefit) (2)(3) (3,582 ) 7,981 32,208 11,660 48,267 Net income $ 37,374 $ 24,503 $ 13,446 $ 36,847 $ 112,170 Basic net income per share $ 0.85 $ 0.56 $ 0.30 $ 0.83 $ 2.54 Diluted net income per share $ 0.82 $ 0.54 $ 0.29 $ 0.80 $ 2.45 (1) In fiscal 2019, the Company invested $25.0 million in medical device company Shockwave Medical. The fair value of this investment as of March 31, 2019 was $56.2 million and the Company recognized a gain of $31.2 million in Other income. (2) On December 22, 2017, the Tax Cuts and Jobs Act, or Tax Reform Act, was enacted into law. This new law, among other items, reduces the U.S. federal statutory corporate income tax rate from 35% to 21% effective January 1, 2018. During the year ended March 31, 2018, the Company recorded tax expense adjustments for $21.4 million related to the revaluation of its deferred taxes due to a reduction of the U.S. federal statutory corporate income tax rate. (3) In the first quarter of fiscal 2018, the Company adopted ASU 2016-09, which requires that all excess tax benefits and tax deficiencies related share-based compensation arrangements be recognized as income tax benefit or expense, instead of in stockholders’ equity as previous guidance required. The income tax provision for the years ended March 31, 2019 and 2018 included excess tax benefits of $69.3 million and $31.0 million, respectively. These recognized excess tax benefits resulted from restricted stock units that vested or stock options that were exercised during the years ended March 31, 2019 and 2018. |
Basis of Preparation and Summ_4
Basis of Preparation and Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2019USD ($)Customershares | Mar. 31, 2018USD ($)Customershares | Mar. 31, 2017USD ($)Customershares | Apr. 01, 2017USD ($) | |
Summary Of Significant Accounting Policy [Line Items] | ||||
Expected dividend yield | 0.00% | |||
Excess tax benefits related to restricted stock unit vestings or stock option exercises, decrease in financing activities | $ 12,038 | |||
Excess tax benefits related to restricted stock unit vestings or stock option exercises, increase in operating activities | $ 12,038 | |||
Adoption of ASU 2016-09 in Fiscal 2018 | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Cumulative effect to increase retained earnings and deferred tax assets | $ 76,400 | |||
Excess tax benefit | $ 69,300 | $ 31,000 | ||
Excess tax benefits related to restricted stock unit vestings or stock option exercises, decrease in financing activities | 31,000 | |||
Excess tax benefits related to restricted stock unit vestings or stock option exercises, increase in operating activities | $ 69,300 | $ 31,000 | ||
Increase additional paid in capital | 1,800 | |||
Increase deferred tax assets | 700 | |||
Decrease retained earnings | $ (1,100) | |||
Net Income Per Share - Anti-dilutive securities | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Shares excluded from the calculation of diluted weighted average shares outstanding | shares | 64,000 | 155,000 | 24,000 | |
Customer Concentration Risk | Total Revenues | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Number of customers that accounted for more than 10% of total revenues / receivables | Customer | 0 | 0 | 0 | |
Customer Concentration Risk | Total Accounts Receivable | ||||
Summary Of Significant Accounting Policy [Line Items] | ||||
Number of customers that accounted for more than 10% of total revenues / receivables | Customer | 0 | 0 |
Basis of Preparation and Summ_5
Basis of Preparation and Summary of Significant Accounting Policies - Property and Equipment - Useful Lives - Additional Information (Detail) | 12 Months Ended |
Mar. 31, 2019 | |
Leasehold Improvements | |
Summary Of Significant Accounting Policy [Line Items] | |
Leasehold improvements, useful life | shorter of the lease term or the estimated useful lives |
Minimum | Machinery and Equipment | |
Summary Of Significant Accounting Policy [Line Items] | |
Property and Equipment, useful life | 3 years |
Minimum | Computer Software | |
Summary Of Significant Accounting Policy [Line Items] | |
Property and Equipment, useful life | 3 years |
Minimum | Furniture and Fixtures | |
Summary Of Significant Accounting Policy [Line Items] | |
Property and Equipment, useful life | 3 years |
Minimum | Building and Building Improvements | |
Summary Of Significant Accounting Policy [Line Items] | |
Property and Equipment, useful life | 7 years |
Maximum | Machinery and Equipment | |
Summary Of Significant Accounting Policy [Line Items] | |
Property and Equipment, useful life | 5 years |
Maximum | Computer Software | |
Summary Of Significant Accounting Policy [Line Items] | |
Property and Equipment, useful life | 5 years |
Maximum | Furniture and Fixtures | |
Summary Of Significant Accounting Policy [Line Items] | |
Property and Equipment, useful life | 5 years |
Maximum | Building and Building Improvements | |
Summary Of Significant Accounting Policy [Line Items] | |
Property and Equipment, useful life | 33 years |
Basis of Preparation and Summ_6
Basis of Preparation and Summary of Significant Accounting Policies - Product Warranty - Additional Information (Detail) | 12 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Product warranty period | 1 year |
Basis of Preparation and Summ_7
Basis of Preparation and Summary of Significant Accounting Policies - Accumulated Other Comprehensive Income (Loss) - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Accounting Policies [Abstract] | |||
Reclassifications out of accumulated other comprehensive income (loss) | $ 0 | $ 0 | $ 0 |
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 | 12 Months Ended | |||||||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Basic Net Income Per Share | |||||||||||
Net income | $ 73,961 | $ 44,862 | $ 50,127 | $ 90,066 | $ 36,847 | $ 13,446 | $ 24,503 | $ 37,374 | $ 259,016 | $ 112,170 | $ 52,116 |
Weighted average shares - basic | (44,911) | (44,153) | (43,238) | ||||||||
Net income per share - basic | $ 1.64 | $ 1 | $ 1.11 | $ 2.02 | $ 0.83 | $ 0.30 | $ 0.56 | $ 0.85 | $ 5.77 | $ 2.54 | $ 1.21 |
Diluted Net Income Per Share | |||||||||||
Net income | $ 73,961 | $ 44,862 | $ 50,127 | $ 90,066 | $ 36,847 | $ 13,446 | $ 24,503 | $ 37,374 | $ 259,016 | $ 112,170 | $ 52,116 |
Weighted average shares - basic | 44,911 | 44,153 | 43,238 | ||||||||
Effect of dilutive securities | 1,240 | 1,696 | 1,420 | ||||||||
Weighted average shares - diluted | 46,151 | 45,849 | 44,658 | ||||||||
Net income per share - diluted | $ 1.60 | $ 0.97 | $ 1.09 | $ 1.95 | $ 0.80 | $ 0.29 | $ 0.54 | $ 0.82 | $ 5.61 | $ 2.45 | $ 1.17 |
Summary of Most Significant Imp
Summary of Most Significant Impacts of ASU 2016-09 in Beginning Stockholders’ Equity (Detail) - USD ($) $ in Thousands | Apr. 01, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 |
Balance | $ 529,152 | $ 936,890 | $ 689,524 | $ 452,071 | $ 368,775 |
Number of Shares Outstanding | 45,122,985 | 44,375,337 | |||
Cumulative effect of adoption of ASU 2016-09 | 77,081 | ||||
Common Stock | |||||
Balance | $ 437 | $ 451 | $ 444 | $ 437 | $ 426 |
Number of Shares Outstanding | 43,673,286 | 45,122,985 | 44,375,337 | 43,673,286 | 42,596,228 |
Treasury Stock | |||||
Balance | $ (46,763) | $ (138,852) | $ (67,078) | $ (46,763) | $ (26,660) |
Number of Shares Outstanding | 1,575,995 | 1,903,241 | 1,725,312 | 1,575,995 | 1,376,891 |
Additional Paid in Capital | |||||
Balance | $ 567,797 | $ 690,507 | $ 619,905 | $ 565,962 | $ 508,624 |
Cumulative effect of adoption of ASU 2016-09 | 1,835 | ||||
Retained Earnings (Accumulated Deficit) | |||||
Balance | 28,287 | 399,473 | 140,457 | (46,959) | (99,075) |
Cumulative effect of adoption of ASU 2016-09 | 75,246 | ||||
Accumulated Other Comprehensive (Loss) | |||||
Balance | $ (20,606) | $ (14,689) | $ (4,204) | $ (20,606) | $ (14,540) |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Disaggregated Revenue by Major Business Line (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | $ 207,081 | $ 200,563 | $ 181,778 | $ 180,010 | $ 174,436 | $ 154,022 | $ 132,823 | $ 132,468 | $ 769,432 | $ 593,749 | $ 445,304 |
Impella Product | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | 741,699 | 570,870 | 423,694 | ||||||||
Service and Other | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | $ 27,733 | $ 22,879 | $ 21,610 |
Revenue Recognition - Schedul_2
Revenue Recognition - Schedule of Disaggregated Revenue by Major Geographical Location (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Total Revenue [Line Items] | |||||||||||
Total revenue | $ 207,081 | $ 200,563 | $ 181,778 | $ 180,010 | $ 174,436 | $ 154,022 | $ 132,823 | $ 132,468 | $ 769,432 | $ 593,749 | $ 445,304 |
U.S. | |||||||||||
Total Revenue [Line Items] | |||||||||||
Total revenue | 665,082 | 526,685 | 405,781 | ||||||||
International | |||||||||||
Total Revenue [Line Items] | |||||||||||
Total revenue | $ 104,350 | $ 67,064 | $ 39,523 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Activity of Product Revenue Rebates and Discounts (Detail) $ in Thousands | 12 Months Ended |
Mar. 31, 2019USD ($) | |
Rebates and Discounts [Abstract] | |
Balance at March 31, 2018 | $ 1,405 |
Credits related to prior period balance | (759) |
Provision related to current period revenue | 2,180 |
Credits related to current period revenue | (1,294) |
Balance at March 31, 2019 | $ 1,532 |
Revenue Recognition - Terms - A
Revenue Recognition - Terms - Additional Information (Detail) | 12 Months Ended |
Mar. 31, 2019 | |
Disaggregation Of Revenue [Line Items] | |
Revenue from contracts with customers, performance obligation term | 1 year |
Contract with customer payment terms, description | Payment terms vary by contract type and type of customer and generally range from 30 to 60 days for direct sales customers. Payment terms with certain international distributors can be up to 90 days. The Company’s contracts with customers do not typically include extended payment terms. |
Revenue Recognition - Deferred
Revenue Recognition - Deferred Revenue - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | ||
Deferred revenue | $ 16,393 | $ 14,970 |
Deferred Revenue, Revenue Recognized | $ 14,900 |
Cash Equivalents and Marketable
Cash Equivalents and Marketable Securities (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Fair Value Disclosures [Abstract] | ||
Cash equivalents | $ 80,089 | $ 22,595 |
Short-term marketable securities | 370,677 | 319,274 |
Long-term marketable securities | 21,718 | 37,502 |
Total cash and marketable securities | $ 472,484 | $ 379,371 |
Investable Cash Equivalents and
Investable Cash Equivalents and Marketable Securities (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Total Cash Equivalents and Marketable Securities [Line Items] | ||
Amortized Cost | $ 472,146 | $ 380,183 |
Gross Unrealized Gains | 375 | 7 |
Gross Unrealized Losses | (37) | (819) |
Fair Market Value | 472,484 | 379,371 |
Repurchase Agreement | ||
Total Cash Equivalents and Marketable Securities [Line Items] | ||
Amortized Cost | 20,000 | 16,750 |
Fair Market Value | 20,000 | 16,750 |
Money Market Funds | ||
Total Cash Equivalents and Marketable Securities [Line Items] | ||
Amortized Cost | 60,089 | 5,845 |
Fair Market Value | 60,089 | 5,845 |
Commercial Paper | Short-term Investments | ||
Total Cash Equivalents and Marketable Securities [Line Items] | ||
Amortized Cost | 56,780 | 36,936 |
Gross Unrealized Gains | 16 | 2 |
Gross Unrealized Losses | (1) | (63) |
Fair Market Value | 56,795 | 36,875 |
U.S. Treasury mutual fund securities | Short-term Investments | ||
Total Cash Equivalents and Marketable Securities [Line Items] | ||
Amortized Cost | 58,786 | 18,132 |
Gross Unrealized Gains | 13 | |
Gross Unrealized Losses | (12) | (29) |
Fair Market Value | 58,787 | 18,103 |
U.S. Treasury mutual fund securities | Long-term Investments | ||
Total Cash Equivalents and Marketable Securities [Line Items] | ||
Amortized Cost | 10,953 | |
Gross Unrealized Losses | (16) | |
Fair Market Value | 10,937 | |
Government-backed securities | Short-term Investments | ||
Total Cash Equivalents and Marketable Securities [Line Items] | ||
Amortized Cost | 126,336 | 212,255 |
Gross Unrealized Gains | 60 | 3 |
Gross Unrealized Losses | (15) | (538) |
Fair Market Value | 126,381 | 211,720 |
Government-backed securities | Long-term Investments | ||
Total Cash Equivalents and Marketable Securities [Line Items] | ||
Amortized Cost | 24,798 | |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | (12) | |
Fair Market Value | 24,787 | |
Corporate Debt Securities | Short-term Investments | ||
Total Cash Equivalents and Marketable Securities [Line Items] | ||
Amortized Cost | 128,626 | 52,737 |
Gross Unrealized Gains | 97 | |
Gross Unrealized Losses | (9) | (161) |
Fair Market Value | 128,714 | 52,576 |
Corporate Debt Securities | Long-term Investments | ||
Total Cash Equivalents and Marketable Securities [Line Items] | ||
Amortized Cost | 21,529 | 1,777 |
Gross Unrealized Gains | 189 | 1 |
Fair Market Value | $ 21,718 | $ 1,778 |
Financial Instruments Measured
Financial Instruments Measured at Fair Value (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | $ 472,484 | $ 379,371 |
Contingent consideration | 9,575 | 10,490 |
Repurchase Agreement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 20,000 | 16,750 |
Shockwave Medical | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 56,195 | |
Money Market Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 60,089 | 5,845 |
Commercial Paper | Short-term Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 56,795 | 36,875 |
Level 1 | Shockwave Medical | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 56,195 | |
Level 1 | Money Market Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 60,089 | 5,845 |
Level 2 | Repurchase Agreement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 20,000 | 16,750 |
Level 2 | Commercial Paper | Short-term Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 56,795 | 36,875 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | 9,575 | 10,490 |
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 | 58,787 | 18,103 |
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 | 10,937 | |
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 | 58,787 | 18,103 |
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 | 10,937 | |
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 | 126,381 | 211,720 |
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 | 24,787 | |
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 | 126,381 | 211,720 |
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 | 24,787 | |
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 | 128,714 | 52,576 |
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 | 21,718 | 1,778 |
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 | 128,714 | 52,576 |
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 | $ 21,718 | $ 1,778 |
Cash Equivalents, Marketable _3
Cash Equivalents, Marketable Securities and Fair Value Measurements - Additional Information (Detail) - ECP Entwicklungsgesellschaft mbH and AIS GmbH Aachen Innovative Solutions $ in Millions | 1 Months Ended |
Jul. 31, 2014USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Payments to acquire businesses, cash paid | $ 13 |
Potential payouts payments | $ 15 |
Valuation Method Used to Calcul
Valuation Method Used to Calculate Level 3 Liabilities Measured at Estimated Fair Value of Contingent Consideration Related to Acquisition (Detail) $ in Thousands | 12 Months Ended | |
Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Contingent consideration | $ 9,575 | $ 10,490 |
ECP Entwicklungsgesellschaft mbH | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Alternative investment, measurement input | 0.21 | |
Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Contingent consideration | $ 9,575 | $ 10,490 |
Level 3 | ECP Entwicklungsgesellschaft mbH | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Contingent consideration | 9,575 | |
Level 3 | ECP Entwicklungsgesellschaft mbH | Probability weighted income approach | Clinical and regulatory milestone | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Contingent consideration | $ 5,371 | |
Level 3 | ECP Entwicklungsgesellschaft mbH | Probability weighted income approach | Clinical and regulatory milestone | Base Case Scenario | Contingent Consideration | ||
Fair Value Measurement Inputs and Valuation Techniques [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 Measurement Inputs and Valuation Techniques [Line Items] | ||
Projected fiscal year of milestone payments | 2020 | |
Level 3 | ECP Entwicklungsgesellschaft mbH | Probability weighted income approach | Clinical and regulatory milestone | Minimum | Various Downside and Upside Scenarios | Contingent Consideration | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Probability of occurrence | 15.00% | |
Level 3 | ECP Entwicklungsgesellschaft mbH | Probability weighted income approach | Clinical and regulatory milestone | Minimum | Discount Rate | Contingent Consideration | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Alternative investment, measurement input | 0.038 | |
Level 3 | ECP Entwicklungsgesellschaft mbH | Probability weighted income approach | Clinical and regulatory milestone | Maximum | Contingent Consideration | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Projected fiscal year of milestone payments | 2023 | |
Level 3 | ECP Entwicklungsgesellschaft mbH | Probability weighted income approach | Clinical and regulatory milestone | Maximum | Various Downside and Upside Scenarios | Contingent Consideration | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Probability of occurrence | 40.00% | |
Level 3 | ECP Entwicklungsgesellschaft mbH | Probability weighted income approach | Clinical and regulatory milestone | Maximum | Discount Rate | Contingent Consideration | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Alternative investment, measurement input | 0.040 | |
Level 3 | ECP Entwicklungsgesellschaft mbH | Monte Carlo simulation model | Revenue-based milestone | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Contingent consideration | $ 4,204 | |
Level 3 | ECP Entwicklungsgesellschaft mbH | Monte Carlo simulation model | Revenue-based milestone | Contingent Consideration | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Probability of payment (risk neutral) | 70.10% | |
Level 3 | ECP Entwicklungsgesellschaft mbH | Monte Carlo simulation model | Revenue-based milestone | Discount Rate | Contingent Consideration | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Alternative investment, measurement input | 0.17 | |
Level 3 | ECP Entwicklungsgesellschaft mbH | Monte Carlo simulation model | Revenue-based milestone | Measurement Input, Price Volatility | Contingent Consideration | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Alternative investment, measurement input | 0.50 | |
Level 3 | ECP Entwicklungsgesellschaft mbH | Monte Carlo simulation model | Revenue-based milestone | Minimum | Contingent Consideration | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Projected fiscal year of milestone payments | 2025 | |
Level 3 | ECP Entwicklungsgesellschaft mbH | Monte Carlo simulation model | Revenue-based milestone | Maximum | Contingent Consideration | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Projected fiscal year of milestone payments | 2035 |
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 | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Level 3 liabilities, beginning balance | $ 10,490 | $ 9,153 | $ 7,563 |
Additions | 0 | 0 | 0 |
Payments | 0 | 0 | 0 |
Change in fair value | (915) | 1,337 | 1,590 |
Level 3 liabilities, ending balance | $ 9,575 | $ 10,490 | $ 9,153 |
Components of Accounts Receivab
Components of Accounts Receivable (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 |
Receivables [Abstract] | ||||
Trade receivables | $ 91,849 | $ 70,330 | ||
Allowance for doubtful accounts | (1,040) | (320) | $ (282) | $ (124) |
Accounts receivable, net | $ 90,809 | $ 70,010 |
Summary of Allowance for Doubtf
Summary of Allowance for Doubtful Accounts Receivable (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Receivables [Abstract] | |||
Balance at Beginning of Period | $ 320 | $ 282 | $ 124 |
Additions | 720 | 38 | 159 |
Write-offs | (1) | ||
Balance at End of Period | $ 1,040 | $ 320 | $ 282 |
Components of Inventories (Deta
Components of Inventories (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 24,468 | $ 16,481 |
Work-in-progress | 35,195 | 23,179 |
Finished goods | 21,279 | 10,544 |
Inventories | $ 80,942 | $ 50,204 |
Components of Property and Equi
Components of Property and Equipment (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Property Plant And Equipment [Abstract] | ||
Land | $ 7,262 | $ 7,680 |
Building and building improvements | 86,705 | 63,700 |
Leasehold improvements | 2,190 | 2,905 |
Machinery and equipment | 59,146 | 42,787 |
Furniture and fixtures | 11,456 | 8,104 |
Construction in progress | 17,946 | 19,850 |
Total cost | 184,705 | 145,026 |
Less accumulated depreciation | (39,700) | (27,859) |
Property and equipment, net | $ 145,005 | $ 117,167 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Property Plant And Equipment [Line Items] | ||||
Acquisition cost for property and equipment | $ 44,004 | $ 55,863 | $ 50,415 | |
Depreciation expense | $ 13,900 | $ 11,000 | $ 6,200 | |
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 |
Goodwill In-Process Research _3
Goodwill In-Process Research and Development and Other Assets - Additional Information (Detail) | 12 Months Ended | ||||
Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Jul. 31, 2014USD ($) | |
Goodwill [Line Items] | |||||
Goodwill | $ 32,601,000 | $ 35,808,000 | $ 31,045,000 | ||
Accumulated impairment loss, goodwill | 0 | ||||
In-process research and development | 15,208,000 | 16,705,000 | 14,482,000 | ||
Aggregate carrying amount of other investments | 80,779,000 | 12,649,000 | 7,249,000 | $ 4,350,000 | |
Impairment on Other Investments | 1,000,000 | ||||
License Manufacturing Rghts to Technology | |||||
Goodwill [Line Items] | |||||
Payments to third party | 2,800,000 | ||||
Amortization of intangible assets | $ 200,000 | 0 | $ 0 | ||
Other Intangible Assets | |||||
Goodwill [Line Items] | |||||
Intangible asset, amortized useful life | 15 years | ||||
Shockwave Medical | |||||
Goodwill [Line Items] | |||||
Investment in affiliate | $ 25,000,000 | ||||
Fair value of investment | 56,200,000 | ||||
Shockwave Medical | Other Income | |||||
Goodwill [Line Items] | |||||
Gain recorded in other income | 31,200,000 | ||||
Medical Device Companies | |||||
Goodwill [Line Items] | |||||
Aggregate carrying amount of other investments | $ 39,900,000 | 6,400,000 | |||
ECP Entwicklungsgesellschaft mbH | |||||
Goodwill [Line Items] | |||||
In-process research and development | $ 16,700,000 | $ 15,200,000 | |||
ECP Entwicklungsgesellschaft mbH | Measurement Input, Discount Rate | |||||
Goodwill [Line Items] | |||||
Fair value inputs, discount rate | 0.21 |
Goodwill Activity (Detail)
Goodwill Activity (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Beginning balance | $ 35,808 | $ 31,045 |
Foreign currency translation impact | (3,207) | 4,763 |
Ending balance | $ 32,601 | $ 35,808 |
Carrying value of In-Process Re
Carrying value of In-Process Research and Development (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Beginning balance | $ 16,705 | $ 14,482 |
Foreign currency translation impact | (1,497) | 2,223 |
Ending balance | $ 15,208 | $ 16,705 |
Carrying value of Other Investm
Carrying value of Other Investments (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Beginning Balance | $ 12,649 | $ 7,249 | $ 4,350 |
Additions | 39,935 | 6,400 | 2,899 |
Disposals | (1,966) | ||
Change in fair value, net | 30,161 | (1,000) | |
Ending Balance | $ 80,779 | $ 12,649 | $ 7,249 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - $ / shares | Mar. 31, 2019 | Mar. 31, 2018 |
Stockholders Equity Note [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 |
Stock Award Plans and Stock-B_3
Stock Award Plans and Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
May 31, 2018 | May 31, 2017 | Nov. 30, 2016 | May 31, 2016 | Jun. 30, 2015 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Aggregate intrinsic value of options exercised in period | $ 174,000 | $ 66,400 | $ 74,800 | |||||
Proceeds from the exercise of stock options | $ 12,949 | $ 9,303 | $ 10,660 | |||||
Expected dividend yield | 0.00% | |||||||
2015 Stock Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock option conversion description | Each share of stock issued pursuant to a stock option or stock appreciation right counts as one share against the maximum number of shares issuable under the 2015 Plan, while each share of stock issued pursuant to any other type of award counts as 1.8 shares against the maximum number of shares issuable under the 2015 Plan. | |||||||
Shares available for future issuance under the Plan | 3,895,000 | |||||||
Employee Stock Option | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock award plans, outstanding stock options expiration period | 10 years | |||||||
Vesting period | 3 years | |||||||
Unrecognized stock-based compensation expense | $ 12,200 | |||||||
Unrecognized stock-based compensation expense, weighted-average recognition period | 1 year 10 months 24 days | |||||||
Expected dividend yield | 0.00% | |||||||
Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 3 years | |||||||
Unrecognized stock-based compensation expense | $ 44,000 | |||||||
Unrecognized stock-based compensation expense, weighted-average recognition period | 1 year 10 months 24 days | |||||||
Expected dividend yield | 0.00% | 0.00% | ||||||
Weighted average grant-date fair value | $ 376.95 | $ 137.40 | $ 97.43 | |||||
Fair value of units vested | $ 171,300 | $ 51,000 | $ 51,300 | |||||
Restricted share unit issued | 195,000 | |||||||
Non-vested shares, outstanding | 620,000 | 880,000 | ||||||
Share based payment award vesting term | 2018-06 | |||||||
Share based compensation arrangement performance period | 3 years | |||||||
Equity award, vesting options | One-half of the restricted stock units vested in June 2018 based on performance criteria described above and the remaining half of the restricted stock units will vest in June 2019. | |||||||
Restricted Stock Units | Executive Office | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Restricted share unit issued | 41,526 | |||||||
Performance and Market-Based Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unrecognized stock-based compensation expense | $ 17,800 | |||||||
Unrecognized stock-based compensation expense, weighted-average recognition period | 1 year 10 months 24 days | |||||||
Performance Based Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Restricted share unit issued | 114,000 | 159,000 | 190,890 | |||||
Performance Based Restricted Stock Units Issued in May 2018 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Non-vested shares, outstanding | 77,000 | |||||||
Performance Based Restricted Stock Units Issued in May 2017 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Non-vested shares, outstanding | 97,000 | |||||||
Performance Based Restricted Stock Units Issued in May 2016 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Non-vested shares, outstanding | 38,000 | |||||||
Market Based Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share based payment award vesting term | 2018-06 | |||||||
Share based compensation arrangement performance period | 3 years | |||||||
Equity award, vesting options | One-half of the market-based restricted stock units earned vested in June 2018 and the remaining restricted stock units will vest in June 2019 provided the executive officers are still employed with the Company. | |||||||
Market Based Restricted Stock Units | Chief Financial Officer | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Restricted share unit issued | 322,980 | |||||||
Non-vested shares, outstanding | 140,765 | |||||||
Employee Stock Purchase Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
ESPP, exercise price as a percentage of its market price | 85.00% |
Stock-Based Compensation Recogn
Stock-Based Compensation Recognized (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | $ 54,494 | $ 40,353 | $ 32,866 |
Cost of revenue | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | 2,643 | 1,721 | 1,061 |
Research and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | 9,312 | 5,895 | 6,050 |
Selling, general and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | $ 42,539 | $ 32,737 | $ 25,755 |
Components of Stock-Based Compe
Components of Stock-Based Compensation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | $ 54,494 | $ 40,353 | $ 32,866 |
Restricted Stock Units | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | 45,998 | 34,559 | 26,570 |
Stock Options | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | 7,445 | 5,202 | 5,829 |
Employee Stock Purchase Plan | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | $ 1,051 | $ 592 | $ 467 |
Summary of Stock Option Activit
Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Options | ||
Outstanding at beginning of period | 1,282 | |
Granted | 81 | |
Exercised | (485) | |
Cancelled and expired | (25) | |
Outstanding at end of period | 853 | 1,282 |
Exercisable at end of period | 623 | |
Weighted Average Exercise Price | ||
Outstanding at beginning of period | $ 46.81 | |
Granted | 379.90 | |
Exercised | 26.68 | |
Cancelled and expired | 138.68 | |
Outstanding at end of period | 87.14 | $ 46.81 |
Exercisable at end of period | $ 40.72 | |
Weighted Average Remaining Contractual Term (years) | ||
Outstanding | 5 years 6 months 25 days | 5 years 3 months 21 days |
Exercisable at end of period | 4 years 6 months 29 days | |
Aggregate Intrinsic Value | ||
Outstanding at beginning of period | $ 313,158 | |
Outstanding at end of period | 176,629 | $ 313,158 |
Exercisable at end of period | $ 152,598 |
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 | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Valuation assumptions: | |||
Weighted average grant-date fair value | $ 141.47 | $ 52.34 | $ 42.40 |
Risk-free interest rate | 2.91% | 1.87% | 1.41% |
Expected option life (years) | 4 years 14 days | 4 years 25 days | 4 years 1 month 20 days |
Expected volatility | 42.80% | 43.50% | 48.90% |
Summary of Restricted Stock Uni
Summary of Restricted Stock Units Activity (Detail) - Restricted Stock Units - $ / shares shares in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Number of Shares | |||
Beginning Balance | 880 | ||
Granted | 195 | ||
Vested | (427) | ||
Forfeited | (28) | ||
Ending Balance | 620 | 880 | |
Weighted Average Grant Date Fair Value | |||
Beginning Balance | $ 109.01 | ||
Granted | 376.95 | $ 137.40 | $ 97.43 |
Vested | 103.54 | ||
Forfeited | 189.05 | ||
Ending Balance | $ 193.53 | $ 109.01 |
Monte Carlo Simulation Model to
Monte Carlo Simulation Model to Estimate Grant-Date Fair Value of Restricted Stock Units (Detail) - $ / shares | 1 Months Ended | 12 Months Ended | |
Nov. 30, 2016 | Jun. 30, 2015 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.00% | ||
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 0.90% | 1.10% | |
Dividend yield | 0.00% | 0.00% | |
Remaining performance period (years) | 2 months 15 days | 2 months 15 days | |
Expected volatility | 50.60% | 47.20% | |
Estimated grant date fair value (per share) | $ 62.55 | ||
Target performance (number of shares) | 41,526 | 107,660 | |
Restricted Stock Units | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Estimated grant date fair value (per share) | $ 93.49 | ||
Restricted Stock Units | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Estimated grant date fair value (per share) | $ 107.10 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2017 | Mar. 31, 2019 | Dec. 31, 2018 | [1] | Sep. 30, 2018 | [1] | Jun. 30, 2018 | [1] | Mar. 31, 2018 | Dec. 31, 2017 | [1],[2] | Sep. 30, 2017 | [1],[2] | Jun. 30, 2017 | [1],[2] | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | ||||
Income Taxes [Line Items] | ||||||||||||||||||||||||
U.S. federal statutory corporate tax rate | 21.00% | 35.00% | 35.00% | 21.00% | 31.50% | 35.00% | ||||||||||||||||||
Blended U.S. federal statutory corporate income tax rate | 31.50% | |||||||||||||||||||||||
Measurement period | 1 year | |||||||||||||||||||||||
Income tax expense | $ 0 | $ 21,400,000 | ||||||||||||||||||||||
Potential repatriation of foreign subsidiary earnings | 100.00% | |||||||||||||||||||||||
Additional federal income tax expense | $ 500,000 | |||||||||||||||||||||||
Income tax provision | $ 24,569,000 | [1] | $ 19,648,000 | $ 1,706,000 | $ (41,579,000) | $ 11,660,000 | [1],[2] | $ 32,208,000 | $ 7,981,000 | $ (3,582,000) | $ 4,344,000 | [1] | $ 48,267,000 | [1],[2] | $ 39,227,000 | |||||||||
Effective income tax rate | 1.60% | 30.10% | 43.00% | |||||||||||||||||||||
Excess tax benefits from stock-based awards | $ 12,038,000 | |||||||||||||||||||||||
Valuation allowance | 1,302,000 | $ 1,652,000 | $ 1,302,000 | $ 1,652,000 | ||||||||||||||||||||
Net operating loss carry forwards | 116,600,000 | 116,600,000 | ||||||||||||||||||||||
Foreign tax credits | 9,800,000 | |||||||||||||||||||||||
Interest and penalties on uncertain tax positions | $ 0 | 0 | $ 0 | |||||||||||||||||||||
Earliest Tax Year | ||||||||||||||||||||||||
Income Taxes [Line Items] | ||||||||||||||||||||||||
Net operating loss carry forwards expiration period | 2029 | |||||||||||||||||||||||
Foreign tax credits carry forwards expiration period | 2022 | |||||||||||||||||||||||
Federal and state research and development credit carry forwards year of expiration | 2020 | |||||||||||||||||||||||
Latest Tax Year | ||||||||||||||||||||||||
Income Taxes [Line Items] | ||||||||||||||||||||||||
Net operating loss carry forwards expiration period | 2034 | |||||||||||||||||||||||
Foreign tax credits carry forwards expiration period | 2028 | |||||||||||||||||||||||
Federal and state research and development credit carry forwards year of expiration | 2039 | |||||||||||||||||||||||
Indefinite | ||||||||||||||||||||||||
Income Taxes [Line Items] | ||||||||||||||||||||||||
Net operating loss carry forwards | 42,200,000 | $ 42,200,000 | ||||||||||||||||||||||
Foreign | ||||||||||||||||||||||||
Income Taxes [Line Items] | ||||||||||||||||||||||||
Net operating loss carry forwards | 2,800,000 | 2,800,000 | ||||||||||||||||||||||
Federal | ||||||||||||||||||||||||
Income Taxes [Line Items] | ||||||||||||||||||||||||
Research and development credit carry forwards | 19,000,000 | 19,000,000 | ||||||||||||||||||||||
State | ||||||||||||||||||||||||
Income Taxes [Line Items] | ||||||||||||||||||||||||
Research and development credit carry forwards | $ 10,100,000 | 10,100,000 | ||||||||||||||||||||||
ASU 2016-09 | ||||||||||||||||||||||||
Income Taxes [Line Items] | ||||||||||||||||||||||||
Excess tax benefits from stock-based awards | $ 69,300,000 | $ 31,000,000 | ||||||||||||||||||||||
[1] | On December 22, 2017, the Tax Cuts and Jobs Act, or Tax Reform Act, was enacted into law. This new law, among other items, reduces the U.S. federal statutory corporate income tax rate from 35% to 21% effective January 1, 2018. During the year ended March 31, 2018, the Company recorded tax expense adjustments for $21.4 million related to the revaluation of its deferred taxes due to a reduction of the U.S. federal statutory corporate income tax rate. | |||||||||||||||||||||||
[2] | In the first quarter of fiscal 2018, the Company adopted ASU 2016-09, which requires that all excess tax benefits and tax deficiencies related share-based compensation arrangements be recognized as income tax benefit or expense, instead of in stockholders’ equity as previous guidance required. The income tax provision for the years ended March 31, 2019 and 2018 included excess tax benefits of $69.3 million and $31.0 million, respectively. These recognized excess tax benefits resulted from restricted stock units that vested or stock options that were exercised during the years ended March 31, 2019 and 2018. |
Components of Income Tax Provis
Components of Income Tax Provision (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Mar. 31, 2019 | [1] | Dec. 31, 2018 | [1] | Sep. 30, 2018 | [1] | Jun. 30, 2018 | [1] | Mar. 31, 2018 | [1],[2] | Dec. 31, 2017 | [1],[2] | Sep. 30, 2017 | [1],[2] | Jun. 30, 2017 | [1],[2] | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||
Income (loss) before income taxes | $ 223,340 | $ 134,006 | $ 78,172 | ||||||||||||||||||
Income (loss) before income taxes, foreign | 40,020 | 26,431 | 13,170 | ||||||||||||||||||
Income (loss) before income taxes | 263,360 | 160,437 | 91,342 | ||||||||||||||||||
Current income tax provision, Federal | 752 | 7,313 | |||||||||||||||||||
Current income tax provision, State | 564 | 1,491 | 5,045 | ||||||||||||||||||
Current income tax provision, Foreign | 11,525 | 3,400 | 1,066 | ||||||||||||||||||
Current income tax provision | 12,089 | 5,643 | 13,424 | ||||||||||||||||||
Deferred income tax provision, Federal | (7,153) | 38,848 | 23,008 | ||||||||||||||||||
Deferred income tax provision, State | (1,503) | (1,014) | (349) | ||||||||||||||||||
Deferred income tax provision, Foreign | 911 | 4,790 | 3,144 | ||||||||||||||||||
Deferred income tax provision | (7,745) | 42,624 | 25,803 | ||||||||||||||||||
Total income tax provision | $ 24,569 | $ 19,648 | $ 1,706 | $ (41,579) | $ 11,660 | $ 32,208 | $ 7,981 | $ (3,582) | $ 4,344 | [1] | $ 48,267 | [1],[2] | $ 39,227 | ||||||||
[1] | On December 22, 2017, the Tax Cuts and Jobs Act, or Tax Reform Act, was enacted into law. This new law, among other items, reduces the U.S. federal statutory corporate income tax rate from 35% to 21% effective January 1, 2018. During the year ended March 31, 2018, the Company recorded tax expense adjustments for $21.4 million related to the revaluation of its deferred taxes due to a reduction of the U.S. federal statutory corporate income tax rate. | ||||||||||||||||||||
[2] | In the first quarter of fiscal 2018, the Company adopted ASU 2016-09, which requires that all excess tax benefits and tax deficiencies related share-based compensation arrangements be recognized as income tax benefit or expense, instead of in stockholders’ equity as previous guidance required. The income tax provision for the years ended March 31, 2019 and 2018 included excess tax benefits of $69.3 million and $31.0 million, respectively. These recognized excess tax benefits resulted from restricted stock units that vested or stock options that were exercised during the years ended March 31, 2019 and 2018. |
Components of Net Deferred Taxe
Components of Net Deferred Taxes (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Deferred tax assets | ||
Net operating loss and tax credit carryforwards | $ 62,835 | $ 48,724 |
Stock-based compensation | 15,488 | 13,271 |
Nondeductible reserves and accruals | 9,739 | 8,290 |
Foreign net operating loss carryforwards | 7,360 | 9,598 |
Deferred revenue | 3,677 | 3,770 |
Depreciation and amortization | 485 | 826 |
Other, net | 128 | 822 |
Deferred Tax Assets, Gross, Total | 99,712 | 85,301 |
Deferred tax liabilities | ||
Goodwill | (7,136) | (6,787) |
In-process research and development | (4,593) | (5,045) |
Depreciation | (2,175) | (1,011) |
Basis differences on other investments | (7,146) | |
Domestic deferred tax liability on foreign net operating loss carryforwards | (680) | (963) |
Deferred Tax Liabilities, Net | (21,730) | (13,806) |
Net deferred tax assets | 77,982 | 71,495 |
Valuation allowance | (1,302) | (1,652) |
Net deferred tax assets | 76,680 | 69,843 |
Long-term deferred tax assets, net | 77,502 | 70,746 |
Long-term deferred tax liabilities | (822) | (903) |
Net deferred tax assets | $ 76,680 | $ 69,843 |
Differences Between Statutory a
Differences Between Statutory and Effective Income Tax Rate (Detail) | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 |
Income Tax Disclosure [Abstract] | ||||||
Statutory income tax rate | 21.00% | 35.00% | 35.00% | 21.00% | 31.50% | 35.00% |
Excess tax benefits from stock-based awards | (24.10%) | (17.20%) | 0.20% | |||
Foreign taxes | 4.10% | 2.20% | 2.00% | |||
Permanent differences | 1.80% | 2.40% | 3.30% | |||
Credits | (1.50%) | (4.90%) | (3.30%) | |||
State taxes, net | 0.10% | 2.00% | 3.80% | |||
Change in valuation allowance | (0.40%) | 0.50% | 0.20% | |||
Effect of the Tax Reform Act on net deferred tax assets | 13.00% | |||||
Rate differential on foreign operations | 0.20% | 0.10% | ||||
Other | 0.40% | 0.60% | 1.70% | |||
Effective tax rate | 1.60% | 30.10% | 43.00% |
Changes in Valuation Allowance
Changes in Valuation Allowance for Deferred Tax Assets (Detail) - Valuation Allowance of Deferred Tax Assets - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Valuation Allowance [Line Items] | |||
Balance at beginning of year | $ 1,652 | $ 2,468 | $ 2,418 |
Increases | 325 | 50 | |
Decreases | (350) | (1,141) | |
Balance at end of year | $ 1,302 | $ 1,652 | $ 2,468 |
Future Minimum Lease Payments U
Future Minimum Lease Payments Under Non-Cancelable Leases (Detail) $ in Thousands | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 3,398 |
2021 | 2,712 |
2022 | 2,000 |
2023 | 1,462 |
2024 | 1,414 |
Thereafter | 3,288 |
Total minimum lease payments | $ 14,274 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | Oct. 01, 2018ft² | Jul. 31, 2018ft² | Dec. 31, 2017ft² | Feb. 28, 2017ft² | Oct. 31, 2016 | Sep. 30, 2016 | May 31, 2016 | Mar. 31, 2019USD ($) | Mar. 31, 2018ft² |
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 | Massachusetts | |||||||||
Commitments and Contingencies [Line Items] | |||||||||
Additional office space | ft² | 23,864 | 6,607 | 21,603 | 11,269 | |||||
Lease expiration date | Sep. 30, 2027 | Aug. 31, 2025 | Jul. 31, 2022 | ||||||
Annual rent expense | $ 0.9 | ||||||||
Total office space | ft² | 63,343 | ||||||||
Lease Agreements | Germany | |||||||||
Commitments and Contingencies [Line Items] | |||||||||
Annual rent expense | 0.2 | ||||||||
Lease commencement period | 2017-05 | ||||||||
Lease expiration period | 2025-03 | ||||||||
Lease Agreements | Japan | |||||||||
Commitments and Contingencies [Line Items] | |||||||||
Annual rent expense | $ 0.9 | ||||||||
Lease expiration period | 2021-09 |
Accrued Expenses (Detail)
Accrued Expenses (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 31, 2018 |
Payables and Accruals [Abstract] | ||
Employee compensation | $ 32,926 | $ 30,330 |
Sales and income taxes | 12,262 | 4,562 |
Research and development | 3,309 | 3,162 |
Marketing | 1,707 | 2,305 |
Professional, legal and accounting fees | 2,757 | 1,870 |
Warranty | 1,272 | 1,081 |
Other | 3,187 | 2,837 |
Accrued expenses | $ 57,420 | $ 46,147 |
Segment and Enterprise Wide D_2
Segment and Enterprise Wide Disclosures - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019USD ($)Segment | Mar. 31, 2018USD ($) | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Number of business segments | Segment | 1 | ||
International | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | $ | $ 43.4 | $ 35.5 | |
Customer Concentration Risk | Revenue | International | |||
Segment Reporting Information [Line Items] | |||
Percentage of revenue accounted | 14.00% | 11.00% | 9.00% |
Summary of Unaudited Quarterly
Summary of Unaudited Quarterly Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |||||||||||
Disclosure Unaudited Quarterly Financial Information [Abstract] | |||||||||||||||||||||
Revenue | $ 207,081 | $ 200,563 | $ 181,778 | $ 180,010 | $ 174,436 | $ 154,022 | $ 132,823 | $ 132,468 | $ 769,432 | $ 593,749 | $ 445,304 | ||||||||||
Cost of revenue | 34,848 | 34,023 | 29,846 | 30,850 | 30,098 | 24,994 | 21,627 | 21,862 | 129,567 | 98,581 | 70,627 | ||||||||||
Other operating expenses | 106,844 | 104,185 | 101,612 | 102,412 | 96,771 | 84,262 | 79,470 | 77,528 | 415,053 | 338,031 | |||||||||||
Other income, net | 33,141 | [1] | 2,155 | [1] | 1,513 | [1] | 1,739 | [1] | 940 | 888 | 758 | 714 | 38,548 | [1] | 3,300 | 1,205 | |||||
Income before income taxes | 98,530 | 64,510 | 51,833 | 48,487 | 48,507 | 45,654 | 32,484 | 33,792 | 263,360 | 160,437 | 91,343 | ||||||||||
Income tax provision (benefit) | 24,569 | [2] | 19,648 | [2] | 1,706 | [2] | (41,579) | [2] | 11,660 | [2],[3] | 32,208 | [2],[3] | 7,981 | [2],[3] | (3,582) | [2],[3] | 4,344 | [2] | 48,267 | [2],[3] | 39,227 |
Net income | $ 73,961 | $ 44,862 | $ 50,127 | $ 90,066 | $ 36,847 | $ 13,446 | $ 24,503 | $ 37,374 | $ 259,016 | $ 112,170 | $ 52,116 | ||||||||||
Basic net income per share | $ 1.64 | $ 1 | $ 1.11 | $ 2.02 | $ 0.83 | $ 0.30 | $ 0.56 | $ 0.85 | $ 5.77 | $ 2.54 | $ 1.21 | ||||||||||
Diluted net income per share | $ 1.60 | $ 0.97 | $ 1.09 | $ 1.95 | $ 0.80 | $ 0.29 | $ 0.54 | $ 0.82 | $ 5.61 | $ 2.45 | $ 1.17 | ||||||||||
[1] | In fiscal 2019, the Company invested $25.0 million in medical device company Shockwave Medical. The fair value of this investment as of March 31, 2019 was $56.2 million and the Company recognized a gain of $31.2 million in Other income. | ||||||||||||||||||||
[2] | On December 22, 2017, the Tax Cuts and Jobs Act, or Tax Reform Act, was enacted into law. This new law, among other items, reduces the U.S. federal statutory corporate income tax rate from 35% to 21% effective January 1, 2018. During the year ended March 31, 2018, the Company recorded tax expense adjustments for $21.4 million related to the revaluation of its deferred taxes due to a reduction of the U.S. federal statutory corporate income tax rate. | ||||||||||||||||||||
[3] | In the first quarter of fiscal 2018, the Company adopted ASU 2016-09, which requires that all excess tax benefits and tax deficiencies related share-based compensation arrangements be recognized as income tax benefit or expense, instead of in stockholders’ equity as previous guidance required. The income tax provision for the years ended March 31, 2019 and 2018 included excess tax benefits of $69.3 million and $31.0 million, respectively. These recognized excess tax benefits resulted from restricted stock units that vested or stock options that were exercised during the years ended March 31, 2019 and 2018. |
Summary of Unaudited Quarterl_2
Summary of Unaudited Quarterly Results of Operations (Parenthetical) (Detail) - USD ($) | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 |
Schedule Of Quarterly Financial Data [Line Items] | ||||||
Statutory income tax rate | 21.00% | 35.00% | 35.00% | 21.00% | 31.50% | 35.00% |
Income tax expense | $ 0 | $ 21,400,000 | ||||
ASU 2016-09 | ||||||
Schedule Of Quarterly Financial Data [Line Items] | ||||||
Excess tax benefits from stock-based awards | 69,300,000 | $ 31,000,000 | ||||
Shockwave Medical, Inc. | ||||||
Schedule Of Quarterly Financial Data [Line Items] | ||||||
Investments | 25,000,000 | |||||
Fair value of investment | 56,200,000 | |||||
Shockwave Medical, Inc. | Other Income | ||||||
Schedule Of Quarterly Financial Data [Line Items] | ||||||
Gain recorded in other income | $ 31,200,000 |