Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Sep. 30, 2020 | Oct. 22, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | ABMD | |
Entity Registrant Name | ABIOMED, INC. | |
Entity Central Index Key | 0000815094 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --03-31 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 45,189,883 | |
Entity File Number | 001-09585 | |
Entity Tax Identification Number | 04-2743260 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Security Exchange Name | NASDAQ | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Address, Address Line One | 22 CHERRY HILL DRIVE | |
Entity Address, City or Town | Danvers | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01923 | |
City Area Code | 978 | |
Local Phone Number | 646-1400 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2020 | Mar. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 202,241 | $ 192,341 |
Short-term marketable securities | 330,843 | 250,775 |
Accounts receivable, net | 80,909 | 84,650 |
Inventories | 83,209 | 90,088 |
Prepaid expenses and other current assets | 19,419 | 18,009 |
Total current assets | 716,621 | 635,863 |
Long-term marketable securities | 202,613 | 207,795 |
Property and equipment, net | 175,582 | 164,931 |
Goodwill | 78,122 | 31,969 |
In-process research and development | 42,895 | 14,913 |
Deferred tax assets | 29,547 | 43,336 |
Other assets | 82,594 | 117,655 |
Total assets | 1,327,974 | 1,216,462 |
Current liabilities: | ||
Accounts payable | 21,734 | 32,774 |
Accrued expenses | 57,227 | 75,107 |
Deferred revenue | 21,314 | 19,147 |
Other current liabilities | 4,938 | 4,857 |
Total current liabilities | 105,213 | 131,885 |
Contingent consideration | 24,417 | 9,000 |
Deferred tax liabilities | 4,251 | 806 |
Other long-term liabilities | 11,684 | 9,305 |
Total liabilities | 145,565 | 150,996 |
Commitments and contingencies (Note 14) | ||
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 - 47,435,945 shares at June 30, 2019 and 47,026,226 shares at March 31, 2019 Outstanding - 45,374,278 shares at June 30, 2019 and 45,122,985 shares at March 31, 2019 | 452 | 451 |
Additional paid in capital | 767,527 | 739,133 |
Retained earnings | 709,283 | 602,482 |
Treasury stock at cost - 2,657,140 shares at September 30, 2020 and 2,533,374 shares at March 31, 2020 | (287,654) | (265,411) |
Accumulated other comprehensive loss | (7,199) | (11,189) |
Total stockholders' equity | 1,182,409 | 1,065,466 |
Total liabilities and stockholders' equity | $ 1,327,974 | $ 1,216,462 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2020 | Mar. 31, 2020 |
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 | 47,847,023 | 47,542,061 |
Common stock, Outstanding | 45,189,883 | 45,008,687 |
Treasury stock, shares | 2,657,140 | 2,533,374 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Revenue | $ 209,764 | $ 204,974 | $ 374,614 | $ 412,640 |
Costs and expenses: | ||||
Cost of revenue | 38,736 | 34,867 | 74,719 | 71,940 |
Research and development | 30,525 | 23,969 | 56,882 | 47,759 |
Selling, general and administrative | 79,167 | 85,956 | 147,611 | 172,034 |
Costs and Expenses, Total | 148,428 | 144,792 | 279,212 | 291,733 |
Income from operations | 61,336 | 60,182 | 95,402 | 120,907 |
Other income (expense): | ||||
Investment income, net | 1,822 | 2,932 | 4,219 | 5,981 |
Other income (expense), net | 9,757 | (45,756) | 34,370 | (6,392) |
Nonoperating Income (Expense), Total | 11,579 | (42,824) | 38,589 | (411) |
Income before income taxes | 72,915 | 17,358 | 133,991 | 120,496 |
Income tax provision | 10,702 | 4,287 | 27,190 | 18,502 |
Net income | $ 62,213 | $ 13,071 | $ 106,801 | $ 101,994 |
Basic net income per share | $ 1.38 | $ 0.29 | $ 2.37 | $ 2.25 |
Basic weighted average shares outstanding | 45,104 | 45,319 | 45,057 | 45,267 |
Diluted net income per share | $ 1.36 | $ 0.28 | $ 2.34 | $ 2.22 |
Diluted weighted average shares outstanding | 45,661 | 45,912 | 45,609 | 46,031 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 62,213 | $ 13,071 | $ 106,801 | $ 101,994 |
Other comprehensive income (loss): | ||||
Foreign currency translation gains (losses) | 2,416 | (5,716) | 3,776 | (3,382) |
Unrealized losses on derivative instrument | (266) | (726) | ||
Net unrealized (losses) gains on marketable securities | (814) | (85) | 940 | 515 |
Other comprehensive income | 1,336 | (5,801) | 3,990 | (2,867) |
Comprehensive income | $ 63,549 | $ 7,270 | $ 110,791 | $ 99,127 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning Balance at Mar. 31, 2019 | $ 936,890 | $ 451 | $ (138,852) | $ 690,507 | $ 399,473 | $ (14,689) |
Beginning Balance (in shares) at Mar. 31, 2019 | 45,122,985 | 1,903,241 | ||||
Restricted stock units issued | $ 4 | (4) | ||||
Restricted stock units issued (in shares) | 373,430 | |||||
Stock options exercised | 1,261 | $ 1 | 1,260 | |||
Stock options exercised (in shares) | 36,289 | |||||
Return of common stock to pay withholding taxes on restricted stock | (40,536) | $ (2) | $ (40,534) | |||
Return of common stock to pay withholding taxes on restricted stock (in shares) | (158,426) | 158,426 | ||||
Stock compensation expense | 13,121 | 13,121 | ||||
Other comprehensive income (loss) | 2,934 | 2,934 | ||||
Net income | 88,923 | 88,923 | ||||
Ending Balance at Jun. 30, 2019 | 1,002,593 | $ 454 | $ (179,386) | 704,884 | 488,396 | (11,755) |
Ending Balance (in shares) at Jun. 30, 2019 | 45,374,278 | 2,061,667 | ||||
Beginning Balance at Mar. 31, 2019 | 936,890 | $ 451 | $ (138,852) | 690,507 | 399,473 | (14,689) |
Beginning Balance (in shares) at Mar. 31, 2019 | 45,122,985 | 1,903,241 | ||||
Stock repurchase program | $ (34,900) | |||||
Stock repurchase program, Shares | (180,929) | |||||
Other comprehensive income (loss) | $ (2,867) | |||||
Net income | 101,994 | |||||
Ending Balance at Sep. 30, 2019 | 991,457 | $ 452 | $ (214,926) | 722,020 | 501,467 | (17,556) |
Ending Balance (in shares) at Sep. 30, 2019 | 45,238,952 | 2,245,959 | ||||
Beginning Balance at Jun. 30, 2019 | 1,002,593 | $ 454 | $ (179,386) | 704,884 | 488,396 | (11,755) |
Beginning Balance (in shares) at Jun. 30, 2019 | 45,374,278 | 2,061,667 | ||||
Restricted stock units issued (in shares) | 12,039 | |||||
Stock options exercised | 1,445 | 1,445 | ||||
Stock options exercised (in shares) | 21,268 | |||||
Return of common stock to pay withholding taxes on restricted stock | (668) | $ (668) | ||||
Return of common stock to pay withholding taxes on restricted stock (in shares) | (3,363) | 3,363 | ||||
Stock issued under employee stock purchase plan | 2,368 | 2,368 | ||||
Stock issued under employee stock purchase plan (in shares) | 15,659 | |||||
Stock compensation expense | 13,323 | 13,323 | ||||
Stock repurchase program | $ (34,874) | $ (2) | $ (34,872) | |||
Stock repurchase program, Shares | (180,929) | (180,929) | 180,929 | |||
Other comprehensive income (loss) | $ (5,801) | (5,801) | ||||
Net income | 13,071 | 13,071 | ||||
Ending Balance at Sep. 30, 2019 | 991,457 | $ 452 | $ (214,926) | 722,020 | 501,467 | (17,556) |
Ending Balance (in shares) at Sep. 30, 2019 | 45,238,952 | 2,245,959 | ||||
Beginning Balance at Mar. 31, 2020 | $ 1,065,466 | $ 451 | $ (265,411) | 739,133 | 602,482 | (11,189) |
Beginning Balance (in shares) at Mar. 31, 2020 | 45,008,687 | 45,008,687 | 2,533,374 | |||
Restricted stock units issued | $ 1 | (1) | ||||
Restricted stock units issued (in shares) | 124,749 | |||||
Stock options exercised | $ 1,010 | 1,010 | ||||
Stock options exercised (in shares) | 31,488 | |||||
Return of common stock to pay withholding taxes on restricted stock | (9,857) | $ (9,857) | ||||
Return of common stock to pay withholding taxes on restricted stock (in shares) | (52,515) | 52,515 | ||||
Stock compensation expense | 9,298 | 9,298 | ||||
Stock repurchase program | (11,310) | $ (1) | $ (11,309) | |||
Stock repurchase program, Shares | (67,649) | 67,649 | ||||
Other comprehensive income (loss) | 2,654 | 2,654 | ||||
Net income | 44,588 | 44,588 | ||||
Ending Balance at Jun. 30, 2020 | 1,101,848 | $ 450 | $ (286,577) | 749,440 | 647,070 | (8,535) |
Ending Balance (in shares) at Jun. 30, 2020 | 45,044,760 | 2,653,538 | ||||
Beginning Balance at Mar. 31, 2020 | $ 1,065,466 | $ 451 | $ (265,411) | 739,133 | 602,482 | (11,189) |
Beginning Balance (in shares) at Mar. 31, 2020 | 45,008,687 | 45,008,687 | 2,533,374 | |||
Stock options exercised (in shares) | 153,000 | |||||
Stock repurchase program | $ (11,300) | |||||
Stock repurchase program, Shares | (67,649) | |||||
Other comprehensive income (loss) | $ 3,990 | |||||
Net income | 106,801 | |||||
Ending Balance at Sep. 30, 2020 | $ 1,182,409 | $ 452 | $ (287,654) | 767,527 | 709,283 | (7,199) |
Ending Balance (in shares) at Sep. 30, 2020 | 45,189,883 | 45,189,883 | 2,657,140 | |||
Beginning Balance at Jun. 30, 2020 | $ 1,101,848 | $ 450 | $ (286,577) | 749,440 | 647,070 | (8,535) |
Beginning Balance (in shares) at Jun. 30, 2020 | 45,044,760 | 2,653,538 | ||||
Restricted stock units issued (in shares) | 11,554 | |||||
Stock options exercised | 4,545 | $ 1 | 4,544 | |||
Stock options exercised (in shares) | 121,066 | |||||
Return of common stock to pay withholding taxes on restricted stock | (1,077) | $ (1,077) | ||||
Return of common stock to pay withholding taxes on restricted stock (in shares) | (3,602) | 3,602 | ||||
Stock issued under employee stock purchase plan | 1,979 | $ 1 | 1,978 | |||
Stock issued under employee stock purchase plan (in shares) | 16,105 | |||||
Stock compensation expense | 11,565 | 11,565 | ||||
Other comprehensive income (loss) | 1,336 | 1,336 | ||||
Net income | 62,213 | 62,213 | ||||
Ending Balance at Sep. 30, 2020 | $ 1,182,409 | $ 452 | $ (287,654) | $ 767,527 | $ 709,283 | $ (7,199) |
Ending Balance (in shares) at Sep. 30, 2020 | 45,189,883 | 45,189,883 | 2,657,140 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Operating activities: | ||
Net income | $ 106,801 | $ 101,994 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 11,137 | 9,052 |
Bad debt (recoveries) expense | (373) | 152 |
Stock-based compensation | 20,863 | 26,445 |
Write-down of inventory and other | 3,122 | 2,157 |
Accretion on marketable securities | 473 | (2,276) |
Change in fair value of other investments | (33,872) | 5,943 |
Deferred tax provision | 14,187 | 10,195 |
Change in fair value of contingent consideration | 2,117 | 661 |
Other non-cash operating activities | 2,008 | 2,177 |
Changes in assets and liabilities: | ||
Accounts receivable | 4,767 | (3,828) |
Inventories | 6,071 | (12,204) |
Prepaid expenses and other assets | 1,744 | (4,077) |
Accounts payable | (10,128) | 781 |
Accrued expenses and other liabilities | (21,988) | (1,268) |
Deferred revenue | 2,039 | 2,983 |
Net cash provided by operating activities | 108,968 | 138,887 |
Investing activities: | ||
Purchases of marketable securities | (294,558) | (268,485) |
Proceeds from the sale and maturity of marketable securities and other | 220,197 | 262,881 |
Purchases of other investments and intangible assets | (3,100) | (7,800) |
Acquisition of Breethe Inc., net of cash acquired | (52,183) | |
Proceeds from sales of Shockwave Medical securities | 67,882 | |
Purchases of property and equipment | (19,552) | (24,607) |
Net cash used for investing activities | (81,314) | (38,011) |
Financing activities: | ||
Proceeds from the exercise of stock options | 5,555 | 2,706 |
Taxes paid related to net share settlement upon vesting of stock awards | (10,934) | (41,206) |
Repurchase of common stock | (11,310) | (34,873) |
Proceeds from the issuance of stock under employee stock purchase plan | 1,978 | 2,368 |
Net cash used for financing activities | (14,711) | (71,005) |
Effect of exchange rate changes on cash and cash equivalents | (3,043) | (613) |
Net increase in cash and cash equivalents | 9,900 | 29,258 |
Cash and cash equivalents at beginning of period | 192,341 | 121,021 |
Cash and cash equivalents at end of period | 202,241 | 150,279 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 25,254 | 6,349 |
Supplemental disclosure of non-cash activities: | ||
Contingent consideration related to the acquisition of Breethe, Inc. | 13,300 | |
Property and equipment in accounts payable and accrued expenses | 1,244 | 3,825 |
Right-of-use assets obtained in exchange for lease liabilities | $ 193 | $ 14,513 |
Nature of Business
Nature of Business | 6 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Nature of Business | Note 1. Nature of Business ABIOMED, Inc. (the “Company” or “ABIOMED”) is a provider of mechanical circulatory support devices and offers a continuum of care to heart failure patients. The Company develops, manufactures and markets proprietary products that are designed to enable the heart to rest, heal and recover by improving blood flow and/or performing the pumping function of the heart. The Company’s products are used in the cardiac catheterization lab, or cath lab, by interventional cardiologists and in the heart surgery suite by 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 | 6 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Preparation and Summary of Significant Accounting Policies | Note 2. Basis of Preparation and Summary of Significant Accounting Policies The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP, for interim financial reporting and in accordance with Article 10 of Regulation S-X. Accordingly, they do not include all of the information and note disclosures required by GAAP for complete financial statements. These statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2020 that has been filed with the SEC. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all normal and recurring adjustments that are necessary for a fair presentation of results for the interim periods presented. The results of operations for any interim period may not be indicative of results for the full fiscal year or any other subsequent period. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results may differ from these estimates. There have been no changes in the Company’s significant accounting policies for the three and six months ended September 30, 2020 as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2020 that has been filed with the SEC. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results may differ from these estimates. COVID-19 Pandemic The Company is subject to risks and uncertainties as a result of the COVID-19 pandemic. Considerable uncertainty still surrounds the COVID-19 virus and its potential effects, and the extent of and effectiveness of responses taken on international, national and local levels. Measures taken to limit the impact of COVID-19, including shelter-in-place orders, social distancing measures, travel bans and restrictions, and business and government shutdowns, continue to create significant negative economic impacts on a global basis. The extent of the impact of the COVID-19 pandemic on the Company's business remains uncertain and difficult to predict, as the response to the pandemic continues to evolve. Beginning in mid-March 2020 and continuing into the first quarter of fiscal 2021, the Company experienced a significant decline in patient utilization in the U.S., Europe and Japan as healthcare systems diverted resources to meet the increasing demands of managing COVID-19. The Company’s business was most impacted in April 2020, in terms of the decline in patients and revenue from the shelter-in-place restrictions in a majority of countries and limitations on procedures in hospitals. The Company experienced sequential quarterly improvement globally through the second quarter of fiscal 2021 as restrictions were lifted and limitations eased. In the second quarter of fiscal 2021, patient procedure volume trends have improved gradually as both demand for procedures and availability of healthcare resources improved during the summer months. While the Company currently expects to see sequential quarterly improvement in the remainder of fiscal 2021, the COVID-19 pandemic remains fluid and continues to evolve differently across various geographies. The Company believes it is likely to continue to experience variable impacts on its business based on some of the resurgence that is now occurring in cities across the globe . The Company is closely monitoring the impact of COVID-19 on all aspects of its business and geographies, including the impact on its customers, employees, suppliers, vendors, business partners and distribution channels. The extent to which the COVID-19 global pandemic impacts the Company’s business, results of operations, and financial condition will depend on future developments, which are highly uncertain and are difficult to predict; these developments include, but are not limited to, the duration and spread of the outbreak, its severity, the actions to contain the virus or address its impact, U.S. and foreign government actions to respond to the reduction in global economic activity, and how quickly and to what extent normal economic and operating conditions can resume. Even after the COVID-19 outbreak has subsided, the Company may continue to experience materially adverse impacts on its financial condition and results of operations. As of the date of issuance of these consolidated financial statements, the extent to which the COVID-19 pandemic may materially impact the Company's financial condition, liquidity, or results of operations is uncertain. Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326).” This new standard requires 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. The Company adopted this standard in the first quarter of fiscal 2021 and it did not have a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, “Intangibles - Goodwill and Other (Topic 350).” This new standard 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. The Company adopted this standard in the first quarter of fiscal 2021 and it did not have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820).” This new standard modifies the disclosure requirements on fair value measurements, including the removal of disclosures of the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels, and the valuation processes for Level 3 fair value measurements. The guidance also adds certain disclosure requirements related to Level 3 fair value measurements. The Company adopted this standard in the first quarter of fiscal 2021 and it did not have a material impact on the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Effective In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740).” This amendment to the guidance on income taxes is intended to simplify the accounting for income taxes. The amendment eliminates certain exceptions related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. The amendment also clarifies existing guidance related to the evaluation of a step up in the tax basis of goodwill and the effects of enacted changes in tax laws or rates in the effective tax rate computation, among other clarifications. The Company does not expect the adoption of this standard to have a material impact on its consolidated financial statements. ASU 2019-12 will become effective for the Company in fiscal 2022. In January 2020, the FASB issued ASU 2020-01, “Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815),” an amendment clarifying the interaction between accounting standards related to equity securities, equity method investments, and certain derivative instruments. The guidance is effective for fiscal years beginning after December 15, 2020. ASU 2020-01 will become effective for the Company in fiscal 2022. |
Acquisition
Acquisition | 6 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Acquisition | Note 3. Acquisition Acquisition of Breethe, Inc. The Company acquired Breethe, Inc. (“Breethe”), a Maryland corporation on April 24, 2020. Breethe is engaged in research and development of a novel extracorporeal membrane oxygenation (“ECMO”) system that will complement and expand its product portfolio to more comprehensively serve the needs of patients whose lungs can no longer provide sufficient oxygenation, including patients suffering from cardiogenic shock, or respiratory failure, such as ARDS, H1N1, or COVID-19. The Company acquired Breethe for $55.0 million in cash, with additional potential payouts up to a maximum of $55.0 million payable based on the achievement of certain technical, regulatory and commercial milestones. Preliminary Purchase Price Allocation The acquisition was accounted for as a business combination. The purchase price for the acquisition has been allocated to the assets acquired and liabilities assumed based on their estimated fair values. The purchase price allocation presented herein is preliminary. The final purchase price allocation will be determined after completion of an analysis to determine the fair value of all assets acquired and liabilities assumed, but in no event later than one year following completion of the acquisition. Accordingly, the final acquisition accounting adjustments could differ materially from the preliminary amounts presented herein. Any increase or decrease in the fair value of the assets acquired and liabilities assumed, as compared to the information shown herein, could also change the portion of purchase price allocated to goodwill and could impact the operating results of the Company following the acquisition due to differences in purchase price allocation, depreciation and amortization related to some of these assets and liabilities. The acquisition-date fair value of the consideration transferred is as follows: Total Acquisition Date Fair Value (in thousands) Cash and other considerations $ 57,850 Contingent consideration 13,300 Total consideration transferred $ 71,150 The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed on the date of acquisition (in thousands): Acquired assets: Cash and cash equivalents $ 3,404 Property and equipment 744 Goodwill 44,048 In-process research and development 27,000 Other assets acquired 895 Total assets acquired 76,091 Liabilities assumed: Accounts payable and other liabilities 1,562 Deferred tax liabilities 3,379 Net assets acquired $ 71,150 Goodwill is calculated as the difference between the acquisition-date fair value of the consideration transferred and the fair values of the assets acquired and liabilities assumed. The goodwill is not expected to be deductible for income tax purposes. In process research and development (“IPR&D”) is the estimated fair value of the Breethe ECMO technology which had not reached commercial technological feasibility nor had alternative future use at the time of the acquisition and is therefore considered IPR&D. The assigned values are allocated among the various IPR&D assets acquired. Transaction costs such as legal, insurance and other costs related to the acquisition, aggregating approximately $0.9 million, have been expensed as incurred and are included in selling, general and administrative expenses in our condensed consolidated statements of operations. |
Net Income Per Share
Net Income Per Share | 6 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Note 4. Net Income Per Share Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing net income by the weighted average number of dilutive common shares outstanding during the period. Diluted shares outstanding are calculated by adding to the weighted average shares outstanding any potential dilutive securities outstanding for the period. Potential dilutive securities include stock options, restricted stock units, performance-based stock awards and shares to be purchased under the Company’s employee stock purchase plan. The Company’s basic and diluted net income per share for the three and six months ended September 30, 2020 and 2019 were as follows (in thousands, except per share data): For the Three Months Ended September 30, For the Six Months Ended September 30, Basic Net Income Per Share 2020 2019 2020 2019 Net income $ 62,213 $ 13,071 $ 106,801 $ 101,994 Weighted average shares – basic 45,104 45,319 45,057 45,267 Net income per share – basic $ 1.38 $ 0.29 $ 2.37 $ 2.25 For the Three Months Ended September 30, For the Six Months Ended September 30, Diluted Net Income Per Share 2020 2019 2020 2019 Net income $ 62,213 13,071 106,801 101,994 Weighted average shares – basic 45,104 45,319 45,057 45,267 Effect of dilutive securities 557 593 552 764 Weighted average shares – diluted 45,661 45,912 45,609 46,031 Net income per share – diluted $ 1.36 $ 0.28 $ 2.34 $ 2.22 Share-based compensation awards of approximately 0.1 million and 0.3 million shares for the three months ended September 30, 2020, and 2019, respectively, and approximately 0.2 million and 0.3 million for the six months ended September 30, 2020, and 2019, respectively, were outstanding but were not included in the computation of diluted net income per share because the effect of including such shares would have been anti-dilutive or are contingently issuable upon meeting performance criteria in the periods presented. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Sep. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | Note 5. Revenue Recognition The Company generates revenue primarily from the sale of Impella 2.5, Impella CP, Impella 5.0, Impella LD, Impella RP, Impella 5.5 and Impella AIC products. The Company also earns revenue from preventative maintenance service contracts and maintenance calls. 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 . 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. Disaggregation of Revenue The Company generally sells most of its products and services through a direct sales force in the U.S., Germany and Japan and through direct sales or distributors in other international markets (e.g., certain other European markets, Canada, Latin America, and 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: For the Three Months Ended September 30, For the Six Months Ended September 30, 2020 2019 2020 2019 (in $000's) (in $000's) Impella product revenue $ 199,676 $ 196,939 $ 355,093 $ 396,804 Service and other revenue 10,088 8,035 19,521 15,836 Total revenue $ 209,764 $ 204,974 $ 374,614 $ 412,640 The following table disaggregates the Company’s revenue by geographical location: For the Three Months Ended September 30, For the Six Months Ended September 30, 2020 2019 2020 2019 (in $000's) (in $000's) U.S. revenue $ 172,147 $ 172,015 $ 306,872 $ 347,500 International revenue 37,617 32,959 67,742 65,140 Total revenue $ 209,764 $ 204,974 $ 374,614 $ 412,640 Variable Consideration Returns Reserve The Company estimates an allowance for future sales returns based on historical return experience, which requires judgment. The Company estimates the amount of its product sales that may be returned by its customers and records this estimate as a reduction of revenue in the period the related product revenue is recognized. The Company estimates product return liabilities using the expected value method based on its historical sales information and other factors that it believes could significantly impact its expected returns, including product discontinuations, product recalls and expirations, of which it becomes aware. The Company’s cost of replacing defective products has not been material and is accounted for at the time of replacement. The Company’s returns reserve during the three and six months ended September 30, 2020 and 2019, were not material. 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 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 sheet. 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. Revenue adjustments that relate to performance obligations satisfied in prior periods during the three and six months ended September 30, 2020 and 2019, were not material. Contract Balances Deferred Revenue The Company’s deferred revenue balance was $21.3 million and $19.1 million as of September 30, 2020 and March 31, 2020 respectively. The deferred revenue balance is 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 three and six months ended September 30, 2020, the Company recognized $5.4 million and $14.6 million of revenue that was included in the deferred revenue balance as of March 31, 2020, respectively. During the three and six months ended September 30, 2019, the Company recognized $4.0 million and $12.5 million of revenue that was included in the deferred revenue balance as of March 31, 2019, respectively. |
Cash Equivalents, Marketable Se
Cash Equivalents, Marketable Securities and Fair Value Measurements | 6 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Cash Equivalents, Marketable Securities and Fair Value Measurements | Note 6. Cash Equivalents, Marketable Securities and Fair Value Measurements The Company’s cash equivalents and marketable securities at September 30, 2020 and March 31, 2020 are invested in the following: Amortized Gross Unrealized Gross Unrealized Fair Market Cost Gains Losses Value September 30, 2020 (in $000's) Money market funds $ 104,305 $ — $ — $ 104,305 Repurchase agreements 20,000 — — 20,000 Total cash equivalents 124,305 — — 124,305 Short-term U.S. Treasury mutual fund securities 75,505 85 (1 ) 75,589 Short-term government-backed securities 85,360 105 (9 ) 85,456 Short-term corporate debt securities 128,738 1,043 — 129,781 Short-term commercial paper 39,991 31 (5 ) 40,017 Total short-term marketable securities 329,594 1,264 (15 ) 330,843 Long-term U.S. Treasury mutual fund securities 10,246 2 — 10,248 Long-term government-backed securities 141,378 164 (6 ) 141,536 Long-term corporate debt securities 49,627 1,202 — 50,829 Total long-term marketable securities 201,251 1,368 (6 ) 202,613 $ 655,150 $ 2,632 $ (21 ) $ 657,761 Amortized Gross Unrealized Gross Unrealized Fair Market Cost Gains Losses Value March 31, 2020: (in $000's) Money market funds $ 115,019 $ — $ — $ 115,019 Repurchase agreements 20,000 — — 20,000 Total cash equivalents 135,019 — — 135,019 Short-term U.S. Treasury securities 42,236 412 — 42,648 Short-term government-backed securities 67,594 401 — 67,995 Short-term corporate debt securities 107,290 94 (83 ) 107,301 Short-term commercial paper 32,757 74 — 32,831 Total short-term marketable securities 249,877 981 (83 ) 250,775 Long-term government-backed securities 90,911 153 — 91,064 Long-term corporate debt securities 116,110 851 (230 ) 116,731 Total long-term marketable securities 207,021 1,004 (230 ) 207,795 $ 591,917 $ 1,985 $ (313 ) $ 593,589 Derivative Instruments In October 2019, the Company entered into an intercompany agreement in which it loaned 85.0 million Euro to Abiomed Europe GMBH, its German subsidiary. In conjunction with this intercompany loan agreement, the Company entered into a cross-currency swap agreement to convert a notional amount of 85.0 million Euro equivalent to $93.5 million denominated intercompany loan into U.S. dollars. The objective of this cross-currency swap is to hedge the variability of cash flows related to the forecasted interest and principal payments on the Euro denominated fixed rate loan against changes in the exchange rate between the U.S. dollar and the Euro. Under the terms of this cross-currency swap contract, which has been designated as a cash flow hedge, the Company will make interest payments in Euro and receive interest in U.S. dollars. Upon the maturity of this contract, the Company will pay the principal amount of the loan in Euro and receive U.S. dollars from the counterparty. The cross-currency swap is carried on the consolidated balance sheet at fair value, and changes in the fair values are recorded as unrealized gains or losses in accumulated other comprehensive income (loss). The Company uses a foreign-exchange-related derivative instrument to manage its exposure related to changes in the exchange rate on its intercompany loan. The Company does not enter into derivative instruments for any purpose other than cash flow hedging. The following table summarizes the terms of the cross-currency swap agreement as of September 30, 2020 (dollar amounts in thousands): Effective Date Maturity Fixed Rate Aggregate Notional Amount (in $000's) Pay EUR October 15, October 15, 2.75% EUR 85,000 Receive U.S.$ 2019 2024 4.64% USD 93,457 The following table presents the fair value of the Company’s derivative instrument as of September 30, 2020: Derivatives designated as hedging instruments under ASC 815 Balance Sheet classification Fair Value Cross-currency swap Other assets (long-term liabilities) $ (2,860 ) The Company has structured its cross-currency swap agreement to be 100% effective and, as a result, there was no net impact to earnings resulting from hedge ineffectiveness. Changes in the fair value of the cross-currency swap are designated as a hedging instrument that effectively offsets the variability of cash flows are reported in accumulated other comprehensive income (loss). These amounts subsequently are reclassified into the consolidated income statement in the same period in which the related hedged item affects earnings. The change of fair value of the cross-currency swap during the second quarter for fiscal year 2021 was mainly due to the appreciation of the Euro against the U.S. dollar. For both the three and six months ended September 30, 2020, the Company recorded income of $0.7 million, in other income, net, included in the consolidated statements of operations related to the interest rate differential of the cross-currency swaps. Contingent Consideration Contingent consideration represents potential milestones that the Company may pay as additional consideration related to acquired businesses. The Company has contingent consideration potentially payable related to the acquisition of ECP Entwicklungsgesellschaft mbH (“ECP”) in July 2014 and the acquisition of Breethe, Inc. in April 2020. The fair value of the contingent consideration at each reporting date is updated by reflecting the changes in fair value reflected within research and development expenses in the Company’s consolidated statement of operations. Significant increases or decreases in any valuation assumptions, including 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 contingent consideration liability. There is no assurance that any of the conditions for the milestone payments will be met. The components of contingent consideration liability are as follows: September 30, 2020 March 31, 2020 (in $000's) ECP $ 10,117 $ 9,000 Breethe, Inc. 14,300 — $ 24,417 $ 9,000 ECP In July 2014, the Company acquired ECP and AIS GmbH Aachen Innovative Solutions (“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 The Company used a combination of an income approach, based on various revenue and cost assumptions and applying a probability to each outcome and a Monte-Carlo valuation model, both of which consider significant unobservable inputs. For the clinical and regulatory milestone, probabilities 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 revenue-based milestone is valued using a Monte-Carlo valuation model, which simulates estimated future revenues during the earn out-period using management’s best estimates. Key unobservable inputs include the discount rate used to present value the projected revenues and cash flows (ranging from 2% to 16%), the probability of achieving the various technical, regulatory and commercial milestones (estimated to be 65%) and projected revenues, which are based on the Company’s most recent internal operational budgets and long-range strategic plans. Breethe, Inc. In April 2020, the Company acquired Breethe, Inc. for $55.0 million in cash, with additional potential payouts up to a maximum of $55.0 million payable based on the achievement of certain technical, regulatory and commercial milestones. The Company used a combination of an income approach, based on various revenue and cost assumptions and applying a probability to each outcome and a Monte-Carlo valuation model, both of which consider significant unobservable inputs. For the regulatory milestones, probabilities 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 commercial milestones are valued using a Monte-Carlo valuation model, which simulates estimated future revenues during the earn out-period using management’s best estimates. Key unobservable inputs include the discount rates used to present value the projected revenues and cash flows (ranging from 2% to 16%), the probability of achieving the various technical, regulatory and commercial milestones (estimated to range from 25% to 99%) and projected revenues, which are based on the Company’s most recent internal operational budgets and long-range strategic plans. 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 tables present the Company’s fair value hierarchy for its financial instruments measured at fair value as of September 30, 2020 and March 31, 2020: Level 1 Level 2 Level 3 Total September 30, 2020 (in $000's) Assets Money market funds $ 104,305 $ — $ — $ 104,305 Repurchase agreements — 20,000 — 20,000 Short-term government-backed securities — 85,456 — 85,456 Short-term corporate debt securities — 129,781 — 129,781 Short-term commercial paper — 40,017 — 40,017 Short-term U.S. Treasury mutual fund securities — 75,589 — 75,589 Long-term U.S. Treasury mutual fund securities — 10,248 — 10,248 Long-term government-backed securities — 141,536 — 141,536 Long-term corporate debt securities — 50,829 — 50,829 Investment in Shockwave Medical 22,494 — — 22,494 Liabilities Contingent consideration — — 24,417 24,417 Cross-currency swap agreement — 2,860 — 2,860 Level 1 Level 2 Level 3 Total March 31, 2020 (in $000's) Assets Money market funds $ 115,019 $ — $ — $ 115,019 Repurchase agreements — 20,000 — 20,000 Short-term U.S. Treasury securities — 42,648 — 42,648 Short-term government-backed securities — 67,995 — 67,995 Short-term corporate debt securities — 107,301 — 107,301 Short-term commercial paper — 32,831 — 32,831 Long-term government-backed securities — 91,064 — 91,064 Long-term corporate debt securities — 116,731 — 116,731 Cross currency swap agreement — 3,786 — 3,786 Investment in Shockwave Medical 55,704 — — 55,704 Liabilities Contingent consideration — — 9,000 9,000 The Company has determined that the estimated fair value of its money market funds and its investment in Shockwave Medical, Inc. (“Shockwave Medical”) a publicly traded medical device company, are reported as Level 1 financial assets as they are valued at quoted market prices in active markets. The investment in Shockwave Medical is classified within other assets in the consolidated balance sheet. 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 and cross-currency swap agreement 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. This contingent consideration liability is reported as Level 3 as the estimated fair value of the contingent consideration related to the acquisitions of ECP and Breethe, Inc. require significant management judgment or estimation and is calculated as described above. The following table summarizes the change in fair value, as determined by Level 3 inputs, of the contingent consideration for the three and six months ended September 30, 2020 and 2019: For the Three Months Ended September 30, For the Six Months Ended September 30, 2020 2019 2020 2019 (in $000's) Beginning balance $ 23,701 $ 9,931 $ 9,000 $ 9,575 Additions — — 13,300 — Change in fair value 716 305 2,117 661 Ending balance $ 24,417 $ 10,236 $ 24,417 $ 10,236 The change in fair value of the contingent consideration was primarily due to the addition of contingent consideration related to the Breethe acquisition and the passage of time impact on fair value measurements. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Sep. 30, 2020 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | Note 7. Property and Equipment The components of property and equipment are as follows: September 30, 2020 March 31, 2020 (in $000's) Land $ 7,454 $ 7,179 Building and building improvements 102,644 100,176 Leasehold improvements 15,183 14,546 Machinery and equipment 78,343 71,636 Furniture and fixtures 15,166 14,600 Construction in progress 26,277 15,075 Total cost 245,067 223,212 Accumulated depreciation (69,485 ) (58,281 ) Property and equipment, net $ 175,582 $ 164,931 |
Goodwill, In-Process Research a
Goodwill, In-Process Research and Development and Other Assets | 6 Months Ended |
Sep. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill, In-Process Research and Development and Other Assets | Note 8. Goodwill, In-Process Research and Development and Other Assets Goodwill The carrying amount of goodwill at September 30, 2020 and March 31, 2020 was $78.1 million and $32.0 million, respectively, and has been recorded in connection with the Company’s acquisition of Impella Cardiosystems AG, in May 2005, ECP in July 2014 and Breethe, Inc. in April 2020. The carrying value of goodwill and the change in the balance for the six months ended September 30, 2020 are as follows: (in $000's) Balance, March 31, 2020 $ 31,969 Breethe, Inc. acquisition 44,048 Foreign currency translation impact 2,105 Balance, September 30, 2020 $ 78,122 The Company evaluates goodwill at least annually at October 31, as well as whenever events or changes in circumstances suggest that the carrying amount may not be recoverable. The Company has no accumulated impairment losses on goodwill. In-Process Research & Development The carrying amount of IPR&D assets at September 30, 2020 and March 31, 2020 was $42.9 million and $14.9 million, respectively, and was recorded in conjunction with the Company’s acquisition of ECP and AIS, in July 2014 and Breethe, Inc, in April 2020. The components of IPR&D are as follows: September 30, 2020 March 31, 2020 (in $000's) ECP $ 15,895 $ 14,913 Breethe, Inc. 27,000 — $ 42,895 $ 14,913 The estimated fair value of IPR&D assets at the acquisition date was determined using a probability-weighted income approach, which discounts expected future cash flows to present value. The projected cash flow estimates for the future Impella ECP TM The carrying value of the Company’s IPR&D assets and the change in the balance for the six months ended September 30, 2020 are as follows: (in $000's) Balance, March 31, 2020 $ 14,913 Breethe, Inc. acquisition 27,000 Foreign currency translation impact 982 Balance, September 30, 2020 $ 42,895 The Company evaluates IPR&D assets at least annually at October 31, as well as whenever events or changes in circumstances suggest that the carrying amount may not be recoverable. The Company has no accumulated impairment losses on IPR&D assets. Other Assets The components of other assets are as follows: September 30, 2020 March 31, 2020 (in $000's) Investment in Shockwave Medical $ 22,494 $ 55,704 Other investments 39,041 38,741 Operating lease right of use asset (Note 8) 11,021 11,760 Cross currency swap (Note 6) — 3,786 Other intangible assets and other assets 10,038 7,664 Total other assets $ 82,594 $ 117,655 Investment in Shockwave Medical The fair value of the Company’s investment in Shockwave Medical, a publicly-traded medical device company, was $22.5 million and $55.7 million as of September 30, 2020 and March 31, 2020, respectively. During the three and six months ended September 30, 2020, amounts recorded in other income (expense), net of tax, were gains of $8.2 million and $26.2 million, respectively. During the three and six months ended September 30, 2019, amounts recorded in other income (expense), net of tax, were losses of $34.5 million and $4.5 million, respectively. During the quarter ended September 30, 2020, the Company sold approximately 1.4 million of its shares for cash proceeds of $67.9 million and total realized gain of $47.3 million. The Company held 0.3 million shares of Shockwave Medical at September 30, 2020. Other Investments The carrying value of the Company’s portfolio of other investments and the change in the balance for the three and six months ended September 30, 2020 and 2019 are as follows: For the Three Months Ended September 30, For the Six Months Ended September 30, 2020 2019 2020 2019 (in $000's) Beginning balance $ 38,741 $ 26,584 38,741 24,584 Additions 1,100 5,000 3,100 7,000 Reclassification — — (2,000 ) — Impairment (800 ) — (800 ) — Ending balance $ 39,041 $ 31,584 $ 39,041 $ 31,584 During the three and six months ended September 30, 2020, the Company recorded an impairment loss of $0.8 million in other (expense) income relating to certain of the Company’s investment in other private medical device companies. Other Intangible Assets and Other Included within other intangible assets and other is $4.1 million related 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. |
Leases
Leases | 6 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | Note 9. Leases The following table presents supplemental balance sheet information related to our operating leases: September 30, 2020 March 31, 2020 (in $000's) Assets Operating lease right-of-use assets in other assets $ 11,021 $ 11,760 Liabilities Operating lease liabilities in other current liabilities 3,683 3,671 Operating lease liabilities in other long-term liabilities 7,807 8,549 Total operating lease liabilities $ 11,490 $ 12,220 Expense charged to operations under operating leases were $1.1 million and $2.2 Maturities of lease liabilities as of September 30, 2020 are as follows: (in thousands, except lease term and discount rate) Fiscal Years Ended March 31, 2021 $ 2,153 2022 3,088 2023 1,925 2024 1,782 2025 1,578 Thereafter 2,033 Total minimum lease payments 12,559 Less: imputed interest (1,069 ) Present value of operating lease liabilities $ 11,490 Weighted average remaining lease term 4.99 Weighted average discount rate 3.14 % |
Accrued Expenses
Accrued Expenses | 6 Months Ended |
Sep. 30, 2020 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | Note 10. Accrued Expenses Accrued expenses consist of the following: September 30, 2020 March 31, 2020 (in $000's) Employee compensation $ 29,081 $ 32,273 Sales and income taxes 11,239 21,641 Research and development 5,481 5,749 Professional, legal, and accounting fees 3,320 6,880 Warranty 1,739 1,818 Marketing 1,092 1,705 Other 5,275 5,041 $ 57,227 $ 75,107 The accrual for employee compensation consists primarily of accrued bonuses, commissions, employee benefits and payroll taxes at September 30, 2020 and March 31, 2020. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | Note 11. 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 Repurchase Program In August 2019, the Company’s Board of Directors authorized a stock repurchase program for up to $200.0 million of shares of its common stock. Under this stock repurchase program, the Company is authorized to repurchase shares through open market purchases, privately negotiated transactions or otherwise in accordance with applicable federal securities laws, including through Rule 10b5-1 trading plans and under Rule 10b-18 of the Exchange Act. The stock repurchase program has no time limit and may be suspended for periods or discontinued at any time. The Company is funding the stock repurchase program with its available cash and marketable securities. The Company did not make any repurchases during the three months ended September 30, 2020. The remaining authorization under the stock repurchase program was $103.8 million as September 30, 2020. The following table provides shares bought through stock repurchase program during the three and six months ended September 30, 2020 and 2019: For the Three Months Ended September 30, For the Six Months Ended September 30, 2020 2019 2020 2019 Shares repurchased — 180,929 67,649 180,929 Average price per share — $ 192.75 $ 167.19 $ 192.75 Value of shares repurchased (in millions) — $ 34.9 $ 11.3 $ 34.9 Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss), are as follows (in thousands): Six Months Ended September 30, 2020 Foreign Currency Translation Gains (Losses) Unrealized Gains on Investments Gains (Losses) on Derivative Instruments Total Balance, April 1, 2020 (16,860 ) 1,672 3,999 (11,189 ) Other comprehensive income (loss) 1,360 1,755 (461 ) 2,654 Balance, June 30, 2020 (15,500 ) 3,427 3,538 (8,535 ) Other comprehensive income (loss) 2,416 (814 ) (266 ) 1,336 Balance, September 30, 2020 (13,084 ) 2,613 3,272 (7,199 ) Six Months Ended September 30, 2019 Foreign Currency Translation Gains (Losses) Unrealized Gains on Investments Gains (Losses) on Derivative Instruments Total Balance, April 1, 2019 (15,028 ) 339 — (14,689 ) Other comprehensive income 2,334 600 — 2,934 Balance, June 30, 2019 (12,694 ) 939 — (11,755 ) Other comprehensive income (5,716 ) (85 ) — (5,801 ) Balance, September 30, 2019 (18,410 ) 854 — (17,556 ) |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note 12. Stock-Based Compensation The following table summarizes stock-based compensation expense by financial statement line item in the Company’s condensed consolidated statements of operations for the three and six months ended September 30, 2020 and 2019: For the Three Months Ended September 30, For the Six Months Ended September 30, 2020 2019 2020 2019 (in $000's) Cost of revenue $ 923 $ 881 $ 1,627 $ 1,722 Research and development 1,705 1,823 3,147 3,706 Selling, general and administrative 8,937 10,619 16,089 21,017 $ 11,565 $ 13,323 $ 20,863 $ 26,445 Stock Options The following table summarizes the stock option activity for the six months ended September 30, 2020: Weighted Weighted Average Aggregate Average Remaining Intrinsic Options Exercise Contractual Value (in thousands) Price Term (years) (in thousands) Outstanding at beginning of period 869 $ 112.03 5.30 Granted 65 221.12 Exercised (153 ) 36.41 Cancelled and expired (8 ) 227.25 Outstanding at end of period 774 $ 134.90 5.77 $ 117,144 Exercisable at end of period 592 $ 98.68 4.84 $ 110,352 Options vested and expected to vest at end of period 773 $ 134.92 5.77 $ 117,040 Stock options generally vest and become exercisable annually over three years. The remaining unrecognized stock-based compensation expense for unvested stock option awards at September 30, 2020, was approximately $13.0 million and the estimated weighted-average period over which this cost will be recognized is 1.9 years. The aggregate intrinsic value of stock options exercised was $37.8 million for the six months ended September 30, 2020. The total cash received as a result of employee stock option exercises for the six months ended September 30, 2020, was approximately $5.6 million. The Company estimates the fair value of each stock option granted at the grant date using the Black-Scholes option valuation model. The weighted average grant-date fair values and weighted average assumptions used in the calculation of fair value of options granted during the three and six months ended September 30, 2020 and 2019 was as follows: For the Three Months Ended September 30, For the Six Months Ended September 30, 2020 2019 2020 2019 Weighted average grant-date fair value $ 100.51 $ 70.40 $ 76.10 $ 95.62 Valuation assumptions: Risk-free interest rate 0.30 % 1.54 % 0.31 % 2.02 % Expected option life (years) 4.17 4.13 4.22 4.14 Expected volatility 43.5 % 44.2 % 42.82 % 42.3 % Restricted Stock Units The following table summarizes activity of restricted stock units for the six months ended September 30, 2020: Number of Shares Weighted Average Grant Date Fair Value (in thousands) (per share) Restricted stock units at beginning of period 320 $ 263.92 Granted 194 254.55 Vested (136 ) 226.71 Forfeited (101 ) 267.28 Restricted stock units at end of period 277 $ 274.31 Restricted stock units generally vest annually over three years. The remaining unrecognized compensation expense for outstanding restricted stock units, including performance and market-based awards, as of September 30, 2020 was $59.3 million and the estimated weighted-average period over which this cost will be recognized is 2.1 years. The weighted average grant-date fair value for restricted stock units granted during the six months ended September 30, 2020 was $254.55. The total fair value of restricted stock units vested during the six months ended September 30, 2020 was $26.8 million. Performance-Based Awards In May 2020, performance-based awards of restricted stock units for the potential issuance of up to 61,674 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 the achievement of prescribed performance milestones by the Company. As of September 30, 2020, the Company is recognizing compensation expense based on the probable outcomes related to the prescribed performance targets on the outstanding awards. Market-Based Awards In May 2020, the Company awarded certain executive officers and employees a total of up to 61,562 market-based restricted stock units. These restricted stock units will vest and result in the issuance of shares of common stock based on continuing employment and the relative ranking of the total shareholder return (“TSR”) of the Company’s common stock in relation to the TSR of twenty peer companies over a two-year and three-year performance period based on a comparison of average closing stock prices during the 20 trading days prior to the first day of the performance period, reinstated dividends during each performance period and the average closing stock prices during the final 20 trading days of each performance period. The actual number of market-based restricted stock units that may be earned can range from 0% to 200% of the target number of shares. Additionally, the payout percentage is further adjusted based on the Company’s performance relative to the constituents of the S&P 500 Index on the first day of the performance period that are still actively trading on the last day of each performance period. The restricted stock units will vest following the end of the two-year three-year The Company used a Monte-Carlo simulation model to estimate the grant-date fair value of the TSR restricted stock units. The fair value related to these awards are recorded as compensation expense over the period from date of grant to May 2022 and May 2023, respectively, regardless of the actual TSR outcome reached. The table below sets forth the assumptions used to value the awards and the estimated grant-date fair value: Risk-free interest rate 0.2% Expected volatility 35.5% Dividend yield — Remaining performance period (years) 1.9 - 2.9 Estimated fair value per share $347.05 - $349.28 Target performance (number of shares) 30,781 |
Income Taxes
Income Taxes | 6 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 13. Income Taxes The Company’s income tax provision was $10.7 million and $4.3 million for the three months ended September 30, 2020 and 2019, respectively. The Company’s income tax provision was $27.2 million and $18.5 million for the six months ended September 30, 2020 and 2019, respectively. The Company’s effective tax rate was 14.7% and 24.7% for the three months ended September 30, 2020 and 2019, respectively. The Company’s effective tax rate was 20.3% and 15.4% for the , respectively. The significant differences between the statutory income tax rate and effective income tax rate for the three and six months ended September 30, 2020 and 2019 were as follows: For the Three Months Ended September 30, For the Six Months Ended September 30, 2020 2019 2020 2019 Statutory income tax rate 21.0 % 21.0 % 21.0 % 21.0 % Increase (decrease) resulting from: — Excess tax benefits from stock-based awards (10.9 ) (2.7 ) (6.3 ) (11.0 ) Credits (1.7 ) (2.1 ) (1.7 ) (1.7 ) State taxes, net 4.1 3.3 4.1 3.4 Permanent differences 2.6 1.7 3.4 1.9 Excess foreign tax credit 0.4 — 0.4 — Other (0.8 ) 3.5 (0.6 ) 1.7 Effective tax rate 14.7 % 24.7 % 20.3 % 15.4 % T he Company recognizes excess tax benefits and shortfalls in the income tax provision as discrete items in the period in which restricted stock units vest or stock option exercises occur. The Company recognized excess tax benefits associated with stock-based awards of $7.9 million and $0.5 million as an income tax benefit for the three months ended September 30, 2020 and 2019, respectively. The Company recognized excess tax benefits associated with stock-based awards of $8.5 million and $13.3 million for the six months ended September 30, 2020 and 2019. These recognized excess tax benefits resulted from restricted stock units that vested or stock options that were exercised during each period. The amount of future excess tax benefits or shortfalls will likely fluctuate from period to period based on the price of the Company’s stock, the number of restricted stock units that vest or stock options that are exercised, and the fair value assigned to such stock-based awards under U.S. GAAP. The Company is subject to the examination of its income tax returns by the Internal Revenue Service (“IRS”) and other tax authorities. The outcome of these audits cannot be predicted with certainty. The Company’s management regularly assesses the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of the Company’s provision for income taxes. If any issues addressed in the Company’s tax audits are resolved in a manner not consistent with management’s expectations, the Company could be required to adjust its provision for income taxes in the period such resolution occurs. The Company’s most recent completed income tax audits were in the U.S. relating to fiscal year 2016 and in Germany, which covered fiscal years 2012 through 2015. These tax audits did not materially impact our financial statements. On October 29, 2020, the Company was notified by the German tax authorities that they will be conducting an income tax audit on Abiomed Europe GMBH and ECP for fiscal years 2016 through 2019 beginning in January 2021. All other tax years remain subject to examination by the federal, state and foreign tax authorities. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 14. Commitments and Contingencies From time to time, the Company is involved in legal and administrative proceedings and claims of various types. In some actions, the claimants seek damages, as well as other relief, which, if granted, would require significant expenditures. The Company records a liability in its consolidated financial statements for these matters when a loss is known or considered probable and the amount can be reasonably estimated. The Company reviews these estimates each accounting period as additional information is known and adjusts the loss provision when appropriate. If a matter is both probable to result in liability and the amount of loss can be reasonably estimated, the Company estimates and discloses the possible loss or range of loss. If the loss is not probable or cannot be reasonably estimated, a liability is not recorded in its consolidated financial statements. Thoratec Matters Thoratec Corporation (“Thoratec”), a subsidiary of Abbott Laboratories (“Abbott”), 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 and the Company has counterclaimed for infringement in the District Court in Düsseldorf. The litigation was stayed pending the highest Court’s ruling on the validity and scope of the litigated patents. In September 2019, the Federal Court of Justice in Germany upheld the Company’s patents that are the subject of the patent infringement action for the sales and marketing of Thoratec’s PHP pump in Germany. Subsequently, the District Court in Düsseldorf lifted the stay, re-opened the litigation proceedings, and ruled in favor of Abiomed. The Court acknowledged that Thoratec’s PHP product infringes two of Abiomed patents related to the key features of Impella® intravascular pump and future expandable heart pump, known as Impella ECP®. Abbott appealed and the oral hearing is set for August 21, 2021. If upheld, the verdict is provisionally enforceable, which means that Abiomed will be able to seek a court ordered injunction preventing the sale and marketing of PHP, should Thoratec attempt to launch HeartMate PHP in Germany. 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. The actions do not expose the Company to liability risk, except under local German law that requires a losing party in a proceeding to pay a portion of the other party’s legal fees. 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 ® 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 but expired on September 1, 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”). In July 2017, the Court granted a motion to add three of the four additional continuation patents to the 2016 Action. In April 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. Maquet then filed a motion for reconsideration of the Court’s construction of one of the disputed claim terms. The motion was denied on May 22, 2019. As a result of the Court’s denial, only one of the six originally asserted patents is in dispute. The Company filed a motion for summary judgement (MSJ) for the remaining patent on September 18, 2019 (non-infringement) and April 13, 2020 (invalidity). The parties argued the MSJ for non-infringement on November 19, 2019, the MSJ for invalidity on August 20, 2020 and are waiting for Court’s resolution. The Court has not set a date for trial. The only remaining patent asserted in this case expired on September 1, 2020. In November 2017, Maquet filed a second action in D. Mass (“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. In a series of letters during January and February 2019, Maquet informed the Company of seven new patent applications filed from the patents in the 2016 Action and 2017 Action with claims Maquet alleges would be infringed by the Impella® products if the new applications were to issue as patents. One of the newly issued patents has been added to the 2017 Action. A Markman hearing for the newly-added patent was held on November 18, 2019. A Markman order has not been issued yet. The asserted patent in this case expired on September 1, 2020. Discovery remains ongoing. 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. The Company is unable to estimate the potential liability with respect to the legal matters noted above. There are numerous factors that make it difficult to meaningfully estimate possible loss or range of loss at this stage of the legal proceedings, including the significant number of legal and factual issues still to be resolved in the Maquet and Thoratec patent disputes. Securities Class Action Litigation On or about August 6, 2019, the Company received a securities class action complaint filed on behalf of a single shareholder in the U.S. District Court for the Southern District of New York (“SDNY”), on behalf of himself and persons or entities that purchased or acquired the Company’s securities between January 31, 2019 through July 31, 2019. On October 7, 2019, a similar purported class action complaint was filed by a different shareholder on behalf of himself and persons or entities that purchased or acquired the Company’s securities between November 1, 2018 and July 31, 2019. Also, on October 7, 2019, four shareholders filed applications to be appointed lead plaintiff and for their counsel to be appointed lead counsel for the class. Two of those shareholders also filed motions to consolidate the two cases and two of the shareholders have withdrawn their applications to be lead plaintiff. The complaints allege that the Company violated Sections 10(b) and 20(a) of and Rule 10b-5 under the Exchange Act, in connection with allegedly misleading disclosures made by the Company regarding its financial condition and results of operations. The Company has reviewed and not yet responded to the complaints. The Company believes that the allegations are without merit and plans to defend itself vigorously. On June 28, 2020, the Court issued an order consolidating the two cases and appointed Local 705 International Brotherhood of Teamsters Pension Fund as the lead plaintiff and the Labaton Sucharow firm as lead counsel. On September 17, 2020, the lead plaintiff filed an amended complaint in which they proposed a new class period of May 3, 2018 to July 31, 2019. As prescribed by a scheduling order, the Company may file a motion to dismiss on or before November 16, 2020. The Company intends to do so but does not expect a decision on that motion until at least the second quarter of calendar year 2021. Shareholder Derivative Litigation On November 6 and 7, 2019, two shareholders filed derivative actions in SDNY that were subsequently consolidated. On November 8, 2019, another shareholder filed a derivative action in Massachusetts Suffolk County Superior Court. On January 7, 2020, another shareholder derivative action was filed in the U.S. District Court for the District of Delaware. The complaints in these actions rely on many of the same allegations as in the securities class actions, and assert that, between November 1, 2018 and July 31, 2019, the directors of the Company made or allowed to be made misleading public statements regarding the Company’s growth, ultimately harming the Company. The Company has agreed with the plaintiffs in all three actions to stay the cases pending resolution of a motion to dismiss in the securities class actions. As a result of the stay, the Delaware action has been administratively closed. Litigation Demand On March 3, 2020, a shareholder sent a letter to the Board of Directors asserting that the directors of the Company made or allowed to be made misleading public statements regarding the Company’s growth. The letter relies on many of the same allegations as the securities class actions and derivative actions, and demands that the Board (i) undertake an independent investigation of the directors, (ii) bring suit against the directors on behalf of the Company, and (iii) take a number of additional affirmative actions to redress the purported wrongs. On March 30, 2020, the Company, after discussions with the Board of Directors, sent a written response to the shareholder’s counsel which they responded to on June 1, 2020. The Company then sent a further response to the shareholder’s counsel on June 15, 2020, affirming the decision to defer consideration of the litigation demand pending further developments in the securities class action suit. Following the filing of the amended complaint in the securities class action, described above, the same shareholder renewed their demand on September 29, 2020. The Company responded on October 9, 2020 and once again affirmed that it will defer consideration of the demand pending further substantive developments in the securities class action suit. The Company is unable to estimate the potential liability with respect to the various legal matters noted above. There are numerous factors that make it difficult to estimate reasonably possible loss or range of loss at this stage of the legal proceedings, including the significant number of legal and factual issues still to be resolved in the securities class action litigation, as well as in the shareholder derivative litigations. |
Segment and Enterprise Wide Dis
Segment and Enterprise Wide Disclosures | 6 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment and Enterprise Wide Disclosures | Note 15. 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 (meaning sales outside the U.S., primarily in Europe and Japan) accounted for 18% and 16% of total revenue for each of the three and six months ended September 30, 2020 and 2019, respectively. T he Company’s long-lived assets are located in the U.S., except for $52.9 million and $46.7 million at September 30, 2020 and March 31, 2020, respectively, which are located primarily in Germany. |
Basis of Preparation and Summ_2
Basis of Preparation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
COVID-19 Pandemic | COVID-19 Pandemic The Company is subject to risks and uncertainties as a result of the COVID-19 pandemic. Considerable uncertainty still surrounds the COVID-19 virus and its potential effects, and the extent of and effectiveness of responses taken on international, national and local levels. Measures taken to limit the impact of COVID-19, including shelter-in-place orders, social distancing measures, travel bans and restrictions, and business and government shutdowns, continue to create significant negative economic impacts on a global basis. The extent of the impact of the COVID-19 pandemic on the Company's business remains uncertain and difficult to predict, as the response to the pandemic continues to evolve. Beginning in mid-March 2020 and continuing into the first quarter of fiscal 2021, the Company experienced a significant decline in patient utilization in the U.S., Europe and Japan as healthcare systems diverted resources to meet the increasing demands of managing COVID-19. The Company’s business was most impacted in April 2020, in terms of the decline in patients and revenue from the shelter-in-place restrictions in a majority of countries and limitations on procedures in hospitals. The Company experienced sequential quarterly improvement globally through the second quarter of fiscal 2021 as restrictions were lifted and limitations eased. In the second quarter of fiscal 2021, patient procedure volume trends have improved gradually as both demand for procedures and availability of healthcare resources improved during the summer months. While the Company currently expects to see sequential quarterly improvement in the remainder of fiscal 2021, the COVID-19 pandemic remains fluid and continues to evolve differently across various geographies. The Company believes it is likely to continue to experience variable impacts on its business based on some of the resurgence that is now occurring in cities across the globe . The Company is closely monitoring the impact of COVID-19 on all aspects of its business and geographies, including the impact on its customers, employees, suppliers, vendors, business partners and distribution channels. The extent to which the COVID-19 global pandemic impacts the Company’s business, results of operations, and financial condition will depend on future developments, which are highly uncertain and are difficult to predict; these developments include, but are not limited to, the duration and spread of the outbreak, its severity, the actions to contain the virus or address its impact, U.S. and foreign government actions to respond to the reduction in global economic activity, and how quickly and to what extent normal economic and operating conditions can resume. Even after the COVID-19 outbreak has subsided, the Company may continue to experience materially adverse impacts on its financial condition and results of operations. As of the date of issuance of these consolidated financial statements, the extent to which the COVID-19 pandemic may materially impact the Company's financial condition, liquidity, or results of operations is uncertain. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326).” This new standard requires 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. The Company adopted this standard in the first quarter of fiscal 2021 and it did not have a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, “Intangibles - Goodwill and Other (Topic 350).” This new standard 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. The Company adopted this standard in the first quarter of fiscal 2021 and it did not have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820).” This new standard modifies the disclosure requirements on fair value measurements, including the removal of disclosures of the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels, and the valuation processes for Level 3 fair value measurements. The guidance also adds certain disclosure requirements related to Level 3 fair value measurements. The Company adopted this standard in the first quarter of fiscal 2021 and it did not have a material impact on the Company’s consolidated financial statements. |
Recently Issued Accounting Pronouncements Not Yet Effective | Recently Issued Accounting Pronouncements Not Yet Effective In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740).” This amendment to the guidance on income taxes is intended to simplify the accounting for income taxes. The amendment eliminates certain exceptions related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. The amendment also clarifies existing guidance related to the evaluation of a step up in the tax basis of goodwill and the effects of enacted changes in tax laws or rates in the effective tax rate computation, among other clarifications. The Company does not expect the adoption of this standard to have a material impact on its consolidated financial statements. ASU 2019-12 will become effective for the Company in fiscal 2022. In January 2020, the FASB issued ASU 2020-01, “Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815),” an amendment clarifying the interaction between accounting standards related to equity securities, equity method investments, and certain derivative instruments. The guidance is effective for fiscal years beginning after December 15, 2020. ASU 2020-01 will become effective for the Company in fiscal 2022. |
Leases | The following table presents supplemental balance sheet information related to our operating leases: September 30, 2020 March 31, 2020 (in $000's) Assets Operating lease right-of-use assets in other assets $ 11,021 $ 11,760 Liabilities Operating lease liabilities in other current liabilities 3,683 3,671 Operating lease liabilities in other long-term liabilities 7,807 8,549 Total operating lease liabilities $ 11,490 $ 12,220 Expense charged to operations under operating leases were $1.1 million and $2.2 Maturities of lease liabilities as of September 30, 2020 are as follows: (in thousands, except lease term and discount rate) Fiscal Years Ended March 31, 2021 $ 2,153 2022 3,088 2023 1,925 2024 1,782 2025 1,578 Thereafter 2,033 Total minimum lease payments 12,559 Less: imputed interest (1,069 ) Present value of operating lease liabilities $ 11,490 Weighted average remaining lease term 4.99 Weighted average discount rate 3.14 % |
Adoption of Topic 606, Revenue from Contracts with Customers | The Company generates revenue primarily from the sale of Impella 2.5, Impella CP, Impella 5.0, Impella LD, Impella RP, Impella 5.5 and Impella AIC products. The Company also earns revenue from preventative maintenance service contracts and maintenance calls. |
Acquisition (Tables)
Acquisition (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions Date Fair Value of Consideration Transferred | The acquisition-date fair value of the consideration transferred is as follows: Total Acquisition Date Fair Value (in thousands) Cash and other considerations $ 57,850 Contingent consideration 13,300 Total consideration transferred $ 71,150 |
Schedule of Estimated Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed on the date of acquisition (in thousands): Acquired assets: Cash and cash equivalents $ 3,404 Property and equipment 744 Goodwill 44,048 In-process research and development 27,000 Other assets acquired 895 Total assets acquired 76,091 Liabilities assumed: Accounts payable and other liabilities 1,562 Deferred tax liabilities 3,379 Net assets acquired $ 71,150 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Income Per Share | The Company’s basic and diluted net income per share for the three and six months ended September 30, 2020 and 2019 were as follows (in thousands, except per share data): For the Three Months Ended September 30, For the Six Months Ended September 30, Basic Net Income Per Share 2020 2019 2020 2019 Net income $ 62,213 $ 13,071 $ 106,801 $ 101,994 Weighted average shares – basic 45,104 45,319 45,057 45,267 Net income per share – basic $ 1.38 $ 0.29 $ 2.37 $ 2.25 For the Three Months Ended September 30, For the Six Months Ended September 30, Diluted Net Income Per Share 2020 2019 2020 2019 Net income $ 62,213 13,071 106,801 101,994 Weighted average shares – basic 45,104 45,319 45,057 45,267 Effect of dilutive securities 557 593 552 764 Weighted average shares – diluted 45,661 45,912 45,609 46,031 Net income per share – diluted $ 1.36 $ 0.28 $ 2.34 $ 2.22 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
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: For the Three Months Ended September 30, For the Six Months Ended September 30, 2020 2019 2020 2019 (in $000's) (in $000's) Impella product revenue $ 199,676 $ 196,939 $ 355,093 $ 396,804 Service and other revenue 10,088 8,035 19,521 15,836 Total revenue $ 209,764 $ 204,974 $ 374,614 $ 412,640 The following table disaggregates the Company’s revenue by geographical location: For the Three Months Ended September 30, For the Six Months Ended September 30, 2020 2019 2020 2019 (in $000's) (in $000's) U.S. revenue $ 172,147 $ 172,015 $ 306,872 $ 347,500 International revenue 37,617 32,959 67,742 65,140 Total revenue $ 209,764 $ 204,974 $ 374,614 $ 412,640 |
Cash Equivalents, Marketable _2
Cash Equivalents, Marketable Securities and Fair Value Measurements (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Cash Equivalents and Marketable Securities | The Company’s cash equivalents and marketable securities at September 30, 2020 and March 31, 2020 are invested in the following: Amortized Gross Unrealized Gross Unrealized Fair Market Cost Gains Losses Value September 30, 2020 (in $000's) Money market funds $ 104,305 $ — $ — $ 104,305 Repurchase agreements 20,000 — — 20,000 Total cash equivalents 124,305 — — 124,305 Short-term U.S. Treasury mutual fund securities 75,505 85 (1 ) 75,589 Short-term government-backed securities 85,360 105 (9 ) 85,456 Short-term corporate debt securities 128,738 1,043 — 129,781 Short-term commercial paper 39,991 31 (5 ) 40,017 Total short-term marketable securities 329,594 1,264 (15 ) 330,843 Long-term U.S. Treasury mutual fund securities 10,246 2 — 10,248 Long-term government-backed securities 141,378 164 (6 ) 141,536 Long-term corporate debt securities 49,627 1,202 — 50,829 Total long-term marketable securities 201,251 1,368 (6 ) 202,613 $ 655,150 $ 2,632 $ (21 ) $ 657,761 Amortized Gross Unrealized Gross Unrealized Fair Market Cost Gains Losses Value March 31, 2020: (in $000's) Money market funds $ 115,019 $ — $ — $ 115,019 Repurchase agreements 20,000 — — 20,000 Total cash equivalents 135,019 — — 135,019 Short-term U.S. Treasury securities 42,236 412 — 42,648 Short-term government-backed securities 67,594 401 — 67,995 Short-term corporate debt securities 107,290 94 (83 ) 107,301 Short-term commercial paper 32,757 74 — 32,831 Total short-term marketable securities 249,877 981 (83 ) 250,775 Long-term government-backed securities 90,911 153 — 91,064 Long-term corporate debt securities 116,110 851 (230 ) 116,731 Total long-term marketable securities 207,021 1,004 (230 ) 207,795 $ 591,917 $ 1,985 $ (313 ) $ 593,589 |
Schedule of Cross-Currency Rate Swap Derivatives Agreement | The following table summarizes the terms of the cross-currency swap agreement as of September 30, 2020 (dollar amounts in thousands): Effective Date Maturity Fixed Rate Aggregate Notional Amount (in $000's) Pay EUR October 15, October 15, 2.75% EUR 85,000 Receive U.S.$ 2019 2024 4.64% USD 93,457 |
Schedule of Fair Value of Company's Derivative Instrument | The following table presents the fair value of the Company’s derivative instrument as of September 30, 2020: Derivatives designated as hedging instruments under ASC 815 Balance Sheet classification Fair Value Cross-currency swap Other assets (long-term liabilities) $ (2,860 ) |
Components of Contingent Consideration Liabilities | The components of contingent consideration liability are as follows: September 30, 2020 March 31, 2020 (in $000's) ECP $ 10,117 $ 9,000 Breethe, Inc. 14,300 — $ 24,417 $ 9,000 |
Financial Instruments Measured at Fair Value | The following tables present the Company’s fair value hierarchy for its financial instruments measured at fair value as of September 30, 2020 and March 31, 2020: Level 1 Level 2 Level 3 Total September 30, 2020 (in $000's) Assets Money market funds $ 104,305 $ — $ — $ 104,305 Repurchase agreements — 20,000 — 20,000 Short-term government-backed securities — 85,456 — 85,456 Short-term corporate debt securities — 129,781 — 129,781 Short-term commercial paper — 40,017 — 40,017 Short-term U.S. Treasury mutual fund securities — 75,589 — 75,589 Long-term U.S. Treasury mutual fund securities — 10,248 — 10,248 Long-term government-backed securities — 141,536 — 141,536 Long-term corporate debt securities — 50,829 — 50,829 Investment in Shockwave Medical 22,494 — — 22,494 Liabilities Contingent consideration — — 24,417 24,417 Cross-currency swap agreement — 2,860 — 2,860 Level 1 Level 2 Level 3 Total March 31, 2020 (in $000's) Assets Money market funds $ 115,019 $ — $ — $ 115,019 Repurchase agreements — 20,000 — 20,000 Short-term U.S. Treasury securities — 42,648 — 42,648 Short-term government-backed securities — 67,995 — 67,995 Short-term corporate debt securities — 107,301 — 107,301 Short-term commercial paper — 32,831 — 32,831 Long-term government-backed securities — 91,064 — 91,064 Long-term corporate debt securities — 116,731 — 116,731 Cross currency swap agreement — 3,786 — 3,786 Investment in Shockwave Medical 55,704 — — 55,704 Liabilities Contingent consideration — — 9,000 9,000 |
Change in Fair Value of Contingent Consideration as Determined by Level 3 Inputs | The following table summarizes the change in fair value, as determined by Level 3 inputs, of the contingent consideration for the three and six months ended September 30, 2020 and 2019: For the Three Months Ended September 30, For the Six Months Ended September 30, 2020 2019 2020 2019 (in $000's) Beginning balance $ 23,701 $ 9,931 $ 9,000 $ 9,575 Additions — — 13,300 — Change in fair value 716 305 2,117 661 Ending balance $ 24,417 $ 10,236 $ 24,417 $ 10,236 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Property Plant And Equipment [Abstract] | |
Components of Property and Equipment | The components of property and equipment are as follows: September 30, 2020 March 31, 2020 (in $000's) Land $ 7,454 $ 7,179 Building and building improvements 102,644 100,176 Leasehold improvements 15,183 14,546 Machinery and equipment 78,343 71,636 Furniture and fixtures 15,166 14,600 Construction in progress 26,277 15,075 Total cost 245,067 223,212 Accumulated depreciation (69,485 ) (58,281 ) Property and equipment, net $ 175,582 $ 164,931 |
Goodwill, In-Process Research_2
Goodwill, In-Process Research and Development and Other Assets (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Carrying Value of Goodwill and Change in Balance | The carrying value of goodwill and the change in the balance for the six months ended September 30, 2020 are as follows: (in $000's) Balance, March 31, 2020 $ 31,969 Breethe, Inc. acquisition 44,048 Foreign currency translation impact 2,105 Balance, September 30, 2020 $ 78,122 |
Summary of Components of In-Process Research & Development | The components of IPR&D are as follows: September 30, 2020 March 31, 2020 (in $000's) ECP $ 15,895 $ 14,913 Breethe, Inc. 27,000 — $ 42,895 $ 14,913 |
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 six months ended September 30, 2020 are as follows: (in $000's) Balance, March 31, 2020 $ 14,913 Breethe, Inc. acquisition 27,000 Foreign currency translation impact 982 Balance, September 30, 2020 $ 42,895 |
Summary of Components of Other Assets | The components of other assets are as follows: September 30, 2020 March 31, 2020 (in $000's) Investment in Shockwave Medical $ 22,494 $ 55,704 Other investments 39,041 38,741 Operating lease right of use asset (Note 8) 11,021 11,760 Cross currency swap (Note 6) — 3,786 Other intangible assets and other assets 10,038 7,664 Total other assets $ 82,594 $ 117,655 |
Carrying value of Other Investments | The carrying value of the Company’s portfolio of other investments and the change in the balance for the three and six months ended September 30, 2020 and 2019 are as follows: For the Three Months Ended September 30, For the Six Months Ended September 30, 2020 2019 2020 2019 (in $000's) Beginning balance $ 38,741 $ 26,584 38,741 24,584 Additions 1,100 5,000 3,100 7,000 Reclassification — — (2,000 ) — Impairment (800 ) — (800 ) — Ending balance $ 39,041 $ 31,584 $ 39,041 $ 31,584 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information Related to Operating Leases | The following table presents supplemental balance sheet information related to our operating leases: September 30, 2020 March 31, 2020 (in $000's) Assets Operating lease right-of-use assets in other assets $ 11,021 $ 11,760 Liabilities Operating lease liabilities in other current liabilities 3,683 3,671 Operating lease liabilities in other long-term liabilities 7,807 8,549 Total operating lease liabilities $ 11,490 $ 12,220 |
Maturities of Lease Liabilities | Maturities of lease liabilities as of September 30, 2020 are as follows: (in thousands, except lease term and discount rate) Fiscal Years Ended March 31, 2021 $ 2,153 2022 3,088 2023 1,925 2024 1,782 2025 1,578 Thereafter 2,033 Total minimum lease payments 12,559 Less: imputed interest (1,069 ) Present value of operating lease liabilities $ 11,490 Weighted average remaining lease term 4.99 Weighted average discount rate 3.14 % |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | Accrued expenses consist of the following: September 30, 2020 March 31, 2020 (in $000's) Employee compensation $ 29,081 $ 32,273 Sales and income taxes 11,239 21,641 Research and development 5,481 5,749 Professional, legal, and accounting fees 3,320 6,880 Warranty 1,739 1,818 Marketing 1,092 1,705 Other 5,275 5,041 $ 57,227 $ 75,107 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Schedule of Stock Repurchase Activity | The following table provides shares bought through stock repurchase program during the three and six months ended September 30, 2020 and 2019: For the Three Months Ended September 30, For the Six Months Ended September 30, 2020 2019 2020 2019 Shares repurchased — 180,929 67,649 180,929 Average price per share — $ 192.75 $ 167.19 $ 192.75 Value of shares repurchased (in millions) — $ 34.9 $ 11.3 $ 34.9 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss), are as follows (in thousands): Six Months Ended September 30, 2020 Foreign Currency Translation Gains (Losses) Unrealized Gains on Investments Gains (Losses) on Derivative Instruments Total Balance, April 1, 2020 (16,860 ) 1,672 3,999 (11,189 ) Other comprehensive income (loss) 1,360 1,755 (461 ) 2,654 Balance, June 30, 2020 (15,500 ) 3,427 3,538 (8,535 ) Other comprehensive income (loss) 2,416 (814 ) (266 ) 1,336 Balance, September 30, 2020 (13,084 ) 2,613 3,272 (7,199 ) Six Months Ended September 30, 2019 Foreign Currency Translation Gains (Losses) Unrealized Gains on Investments Gains (Losses) on Derivative Instruments Total Balance, April 1, 2019 (15,028 ) 339 — (14,689 ) Other comprehensive income 2,334 600 — 2,934 Balance, June 30, 2019 (12,694 ) 939 — (11,755 ) Other comprehensive income (5,716 ) (85 ) — (5,801 ) Balance, September 30, 2019 (18,410 ) 854 — (17,556 ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation Recognized | The following table summarizes stock-based compensation expense by financial statement line item in the Company’s condensed consolidated statements of operations for the three and six months ended September 30, 2020 and 2019: For the Three Months Ended September 30, For the Six Months Ended September 30, 2020 2019 2020 2019 (in $000's) Cost of revenue $ 923 $ 881 $ 1,627 $ 1,722 Research and development 1,705 1,823 3,147 3,706 Selling, general and administrative 8,937 10,619 16,089 21,017 $ 11,565 $ 13,323 $ 20,863 $ 26,445 |
Summary of Stock Option Activity | The following table summarizes the stock option activity for the six months ended September 30, 2020: Weighted Weighted Average Aggregate Average Remaining Intrinsic Options Exercise Contractual Value (in thousands) Price Term (years) (in thousands) Outstanding at beginning of period 869 $ 112.03 5.30 Granted 65 221.12 Exercised (153 ) 36.41 Cancelled and expired (8 ) 227.25 Outstanding at end of period 774 $ 134.90 5.77 $ 117,144 Exercisable at end of period 592 $ 98.68 4.84 $ 110,352 Options vested and expected to vest at end of period 773 $ 134.92 5.77 $ 117,040 |
Summary of Weighted Average Grant-Date Fair Values And Weighted Average Assumptions Used to Calculate Fair Value of Options Granted | For the Three Months Ended September 30, For the Six Months Ended September 30, 2020 2019 2020 2019 Weighted average grant-date fair value $ 100.51 $ 70.40 $ 76.10 $ 95.62 Valuation assumptions: Risk-free interest rate 0.30 % 1.54 % 0.31 % 2.02 % Expected option life (years) 4.17 4.13 4.22 4.14 Expected volatility 43.5 % 44.2 % 42.82 % 42.3 % |
Restricted Stock Units | |
Summary of Restricted Stock Units Activity | The following table summarizes activity of restricted stock units for the six months ended September 30, 2020: Number of Shares Weighted Average Grant Date Fair Value (in thousands) (per share) Restricted stock units at beginning of period 320 $ 263.92 Granted 194 254.55 Vested (136 ) 226.71 Forfeited (101 ) 267.28 Restricted stock units at end of period 277 $ 274.31 |
Summary of Assumptions Used To Value Awards And Estimated Grant-Date Fair Value | The table below sets forth the assumptions used to value the awards and the estimated grant-date fair value: Risk-free interest rate 0.2% Expected volatility 35.5% Dividend yield — Remaining performance period (years) 1.9 - 2.9 Estimated fair value per share $347.05 - $349.28 Target performance (number of shares) 30,781 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Differences Between Statutory Income Tax Rate and Effective Income Tax Rate | The significant differences between the statutory income tax rate and effective income tax rate for the three and six months ended September 30, 2020 and 2019 were as follows: For the Three Months Ended September 30, For the Six Months Ended September 30, 2020 2019 2020 2019 Statutory income tax rate 21.0 % 21.0 % 21.0 % 21.0 % Increase (decrease) resulting from: — Excess tax benefits from stock-based awards (10.9 ) (2.7 ) (6.3 ) (11.0 ) Credits (1.7 ) (2.1 ) (1.7 ) (1.7 ) State taxes, net 4.1 3.3 4.1 3.4 Permanent differences 2.6 1.7 3.4 1.9 Excess foreign tax credit 0.4 — 0.4 — Other (0.8 ) 3.5 (0.6 ) 1.7 Effective tax rate 14.7 % 24.7 % 20.3 % 15.4 % |
Acquisition - Additional Inform
Acquisition - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | |
Apr. 30, 2020 | Sep. 30, 2020 | |
Restructuring Cost And Reserve [Line Items] | ||
Business acquisition, transaction costs | $ 0.9 | |
Breethe, Inc | ||
Restructuring Cost And Reserve [Line Items] | ||
Payments to acquire businesses, cash paid | $ 55 | |
Breethe, Inc | Maximum | ||
Restructuring Cost And Reserve [Line Items] | ||
Potential payouts payments | $ 55 |
Schedule of Business Acquisitio
Schedule of Business Acquisitions Date Fair Value of Consideration Transferred (Detail) $ in Thousands | Apr. 24, 2020USD ($) |
Business Combinations [Abstract] | |
Cash and other considerations | $ 57,850 |
Contingent consideration | 13,300 |
Total consideration transferred | $ 71,150 |
Schedule of Estimated Fair Valu
Schedule of Estimated Fair Value of Assets Acquired and Liabilities Assumed (Detail) $ in Thousands | Apr. 24, 2020USD ($) |
Business Combinations [Abstract] | |
Cash and cash equivalents | $ 3,404 |
Property and equipment | 744 |
Goodwill | 44,048 |
In-process research and development | 27,000 |
Other assets acquired | 895 |
Total assets acquired | 76,091 |
Accounts payable and other liabilities | 1,562 |
Deferred tax liabilities | 3,379 |
Net assets acquired | $ 71,150 |
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 | 6 Months Ended | ||||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Basic Net Income Per Share | ||||||
Net income | $ 62,213 | $ 44,588 | $ 13,071 | $ 88,923 | $ 106,801 | $ 101,994 |
Weighted average shares – basic | 45,104 | 45,319 | 45,057 | 45,267 | ||
Net income per share – basic | $ 1.38 | $ 0.29 | $ 2.37 | $ 2.25 | ||
Diluted Net Income Per Share | ||||||
Net income | $ 62,213 | $ 44,588 | $ 13,071 | $ 88,923 | $ 106,801 | $ 101,994 |
Weighted average shares – basic | 45,104 | 45,319 | 45,057 | 45,267 | ||
Effect of dilutive securities | 557 | 593 | 552 | 764 | ||
Weighted average shares – diluted | 45,661 | 45,912 | 45,609 | 46,031 | ||
Net income per share – diluted | $ 1.36 | $ 0.28 | $ 2.34 | $ 2.22 |
Net Income Per Share - Addition
Net Income Per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Shares excluded from the calculation of diluted weighted average shares outstanding | 0.1 | 0.3 | 0.2 | 0.3 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Disaggregated Revenue by Major Business Line (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation Of Revenue [Table] | ||||
Total revenue | $ 209,764 | $ 204,974 | $ 374,614 | $ 412,640 |
U.S. | ||||
Disaggregation Of Revenue [Table] | ||||
Total revenue | 172,147 | 172,015 | 306,872 | 347,500 |
International | ||||
Disaggregation Of Revenue [Table] | ||||
Total revenue | 37,617 | 32,959 | 67,742 | 65,140 |
Impella Product | ||||
Disaggregation Of Revenue [Table] | ||||
Total revenue | 199,676 | 196,939 | 355,093 | 396,804 |
Service and Other | ||||
Disaggregation Of Revenue [Table] | ||||
Total revenue | $ 10,088 | $ 8,035 | $ 19,521 | $ 15,836 |
Revenue Recognition - Deferred
Revenue Recognition - Deferred Revenue - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Mar. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |||||
Deferred revenue | $ 21,314 | $ 21,314 | $ 19,147 | ||
Deferred Revenue, Revenue Recognized | $ 5,400 | $ 4,000 | $ 14,600 | $ 12,500 |
Investable Cash Equivalents and
Investable Cash Equivalents and Marketable Securities (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Mar. 31, 2020 |
Total Cash Equivalents and Marketable Securities [Line Items] | ||
Amortized Cost | $ 655,150 | $ 591,917 |
Gross Unrealized Gains | 2,632 | 1,985 |
Gross Unrealized Losses | (21) | (313) |
Fair Market Value | 657,761 | 593,589 |
Cash Equivalents | ||
Total Cash Equivalents and Marketable Securities [Line Items] | ||
Amortized Cost | 124,305 | 135,019 |
Fair Market Value | 124,305 | 135,019 |
Repurchase Agreement | ||
Total Cash Equivalents and Marketable Securities [Line Items] | ||
Fair Market Value | 20,000 | 20,000 |
Repurchase Agreement | Cash Equivalents | ||
Total Cash Equivalents and Marketable Securities [Line Items] | ||
Amortized Cost | 20,000 | 20,000 |
Fair Market Value | 20,000 | 20,000 |
Short-term Investments | ||
Total Cash Equivalents and Marketable Securities [Line Items] | ||
Amortized Cost | 329,594 | 249,877 |
Gross Unrealized Gains | 1,264 | 981 |
Gross Unrealized Losses | (15) | (83) |
Fair Market Value | 330,843 | 250,775 |
Long-term Investments | ||
Total Cash Equivalents and Marketable Securities [Line Items] | ||
Amortized Cost | 201,251 | 207,021 |
Gross Unrealized Gains | 1,368 | 1,004 |
Gross Unrealized Losses | (6) | (230) |
Fair Market Value | 202,613 | 207,795 |
Money Market Funds | ||
Total Cash Equivalents and Marketable Securities [Line Items] | ||
Fair Market Value | 104,305 | 115,019 |
Money Market Funds | Cash Equivalents | ||
Total Cash Equivalents and Marketable Securities [Line Items] | ||
Amortized Cost | 104,305 | 115,019 |
Fair Market Value | 104,305 | 115,019 |
Commercial Paper | Short-term Investments | ||
Total Cash Equivalents and Marketable Securities [Line Items] | ||
Amortized Cost | 39,991 | 32,757 |
Gross Unrealized Gains | 31 | 74 |
Gross Unrealized Losses | (5) | |
Fair Market Value | 40,017 | 32,831 |
U.S. Treasury mutual fund securities | Short-term Investments | ||
Total Cash Equivalents and Marketable Securities [Line Items] | ||
Amortized Cost | 75,505 | 42,236 |
Gross Unrealized Gains | 85 | 412 |
Gross Unrealized Losses | (1) | |
Fair Market Value | 75,589 | 42,648 |
U.S. Treasury mutual fund securities | Long-term Investments | ||
Total Cash Equivalents and Marketable Securities [Line Items] | ||
Amortized Cost | 10,246 | |
Gross Unrealized Gains | 2 | |
Fair Market Value | 10,248 | |
Government-backed securities | Short-term Investments | ||
Total Cash Equivalents and Marketable Securities [Line Items] | ||
Amortized Cost | 85,360 | 67,594 |
Gross Unrealized Gains | 105 | 401 |
Gross Unrealized Losses | (9) | |
Fair Market Value | 85,456 | 67,995 |
Government-backed securities | Long-term Investments | ||
Total Cash Equivalents and Marketable Securities [Line Items] | ||
Amortized Cost | 141,378 | 90,911 |
Gross Unrealized Gains | 164 | 153 |
Gross Unrealized Losses | (6) | |
Fair Market Value | 141,536 | 91,064 |
Corporate Debt Securities | Short-term Investments | ||
Total Cash Equivalents and Marketable Securities [Line Items] | ||
Amortized Cost | 128,738 | 107,290 |
Gross Unrealized Gains | 1,043 | 94 |
Gross Unrealized Losses | (83) | |
Fair Market Value | 129,781 | 107,301 |
Corporate Debt Securities | Long-term Investments | ||
Total Cash Equivalents and Marketable Securities [Line Items] | ||
Amortized Cost | 49,627 | 116,110 |
Gross Unrealized Gains | 1,202 | 851 |
Gross Unrealized Losses | (230) | |
Fair Market Value | $ 50,829 | $ 116,731 |
Cash Equivalents, Marketable _3
Cash Equivalents, Marketable Securities and Fair Value Measurements - Additional Information (Detail) € in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2020USD ($) | Jul. 31, 2014USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2020EUR (€) | Oct. 31, 2019EUR (€) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Other income, net | $ 0.7 | $ 0.7 | ||||
ECP and AIS | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Payments to acquire businesses, cash paid | $ 13 | |||||
Potential payouts payments | $ 15 | |||||
Commercial milestones | 65.00% | |||||
ECP and AIS | Minimum [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Discount rate | 2.00% | 2.00% | 2.00% | |||
ECP and AIS | Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Discount rate | 16.00% | 16.00% | 16.00% | |||
Breethe, Inc | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Payments to acquire businesses, cash paid | $ 55 | |||||
Breethe, Inc | Minimum [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Discount rate | 2.00% | 2.00% | 2.00% | |||
Commercial milestones | 25.00% | |||||
Breethe, Inc | Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Potential payouts payments | $ 55 | |||||
Discount rate | 16.00% | 16.00% | 16.00% | |||
Commercial milestones | 99.00% | |||||
Intercompany Agreement [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Loans to subsidiaries | € | € 85 | |||||
Cross Currency Interest Rate Contract | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Derivative notional amount | $ 93.5 | $ 93.5 | € 85 |
Schedule of Cross-Currency Rate
Schedule of Cross-Currency Rate Swap Derivatives (Detail) € in Thousands, $ in Thousands | 6 Months Ended | |
Sep. 30, 2020USD ($) | Sep. 30, 2020EUR (€) | |
Pay EUR | ||
Effective Date | Oct. 15, 2019 | |
Maturity | Oct. 15, 2024 | |
Fixed Rate | 2.75% | 2.75% |
Derivative notional amount | € | € 85,000 | |
Receive U.S $ | ||
Effective Date | Oct. 15, 2019 | |
Maturity | Oct. 15, 2024 | |
Fixed Rate | 4.64% | 4.64% |
Derivative notional amount | $ | $ 93,457 |
Schedule of Fair Value of Compa
Schedule of Fair Value of Company's Derivative Instrument (Detail) $ in Thousands | Sep. 30, 2020USD ($) |
Cross Currency Interest Rate Contract | Other assets (long term liabilities) | |
Fair Value | $ (2,860) |
Schedule of Components of Conti
Schedule of Components of Contingent Consideration Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Mar. 31, 2020 |
Contingent consideration liabilities | $ 24,417 | $ 9,000 |
ECP | ||
Contingent consideration liabilities | 10,117 | $ 9,000 |
Breethe, Inc | ||
Contingent consideration liabilities | $ 14,300 |
Financial Instruments Measured
Financial Instruments Measured at Fair Value (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Mar. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | $ 657,761 | $ 593,589 |
Contingent consideration | 24,417 | 9,000 |
Cross Currency Interest Rate Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative fair value | 2,860 | 3,786 |
Repurchase Agreement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 20,000 | 20,000 |
Short-term Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 330,843 | 250,775 |
Long-term Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 202,613 | 207,795 |
Shockwave Medical | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 22,494 | 55,704 |
Money Market Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 104,305 | 115,019 |
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 | 40,017 | 32,831 |
Level 1 | Shockwave Medical | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 22,494 | 55,704 |
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 | 104,305 | 115,019 |
Level 2 | Cross Currency Interest Rate Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative fair value | 2,860 | 3,786 |
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 | 20,000 |
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 | 40,017 | 32,831 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | 24,417 | 9,000 |
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 | 75,589 | 42,648 |
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 | 10,248 | |
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 | 75,589 | 42,648 |
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 | 85,456 | 67,995 |
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 | 141,536 | 91,064 |
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 | 85,456 | 67,995 |
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 | 141,536 | 91,064 |
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 | 129,781 | 107,301 |
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 | 50,829 | 116,731 |
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 | 129,781 | 107,301 |
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 | 50,829 | $ 116,731 |
Long Term U.S. Treasury Mutual Fund Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | 10,248 | |
Long Term U.S. Treasury Mutual Fund Securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value disclosure | $ 10,248 |
Change in Fair Value of Conting
Change in Fair Value of Contingent Consideration as Determined by Level 3 Inputs (Detail) - Contingent Consideration - ECP Entwicklungsgesellschaft mbH - Level 3 - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | $ 23,701 | $ 9,931 | $ 9,000 | $ 9,575 |
Additions | 0 | 0 | 13,300 | 0 |
Change in fair value | 716 | 305 | 2,117 | 661 |
Ending balance | $ 24,417 | $ 10,236 | $ 24,417 | $ 10,236 |
Components of Property and Equi
Components of Property and Equipment (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Mar. 31, 2020 |
Property Plant And Equipment [Abstract] | ||
Land | $ 7,454 | $ 7,179 |
Building and building improvements | 102,644 | 100,176 |
Leasehold improvements | 15,183 | 14,546 |
Machinery and equipment | 78,343 | 71,636 |
Furniture and fixtures | 15,166 | 14,600 |
Construction in progress | 26,277 | 15,075 |
Total cost | 245,067 | 223,212 |
Accumulated depreciation | (69,485) | (58,281) |
Property and equipment, net | $ 175,582 | $ 164,931 |
Goodwill, In-Process Research_3
Goodwill, In-Process Research and Development and Other Assets - Additional Information (Detail) shares in Millions | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2020USD ($)shares | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)shares | Sep. 30, 2019USD ($) | Mar. 31, 2020USD ($) | |
Goodwill [Line Items] | |||||
Goodwill | $ 78,122,000 | $ 78,122,000 | $ 31,969,000 | ||
Accumulated impairment loss, goodwill | 0 | 0 | |||
In-process research and development | 42,895,000 | 42,895,000 | 14,913,000 | ||
Accumulated impairment losses on IPR&D assets | 0 | 0 | |||
License Manufacturing Rghts to Technology | |||||
Goodwill [Line Items] | |||||
Payments to third party | $ 4,100,000 | ||||
Other Intangible Assets | |||||
Goodwill [Line Items] | |||||
Intangible asset, amortized useful life | 15 years | ||||
Other Income (Expense) | |||||
Goodwill [Line Items] | |||||
Impairment loss in other investment | 800,000 | $ 800,000 | |||
Shockwave Medical | |||||
Goodwill [Line Items] | |||||
Investment in Shockwave Medical | 22,494,000 | $ 22,494,000 | 55,704,000 | ||
Cash proceeds | $ 67,900,000 | ||||
Shares sold | shares | 1.4 | 1.4 | |||
Shares held by the company | shares | 0.3 | 0.3 | |||
Shockwave Medical | Other Income (Expense) | |||||
Goodwill [Line Items] | |||||
Realized gain on the sale of investment recorded in other income | $ 47,300,000 | ||||
Unrealized gain (loss) recorded in other income | 8,200,000 | $ (34,500,000) | $ 26,200,000 | $ (4,500,000) | |
ECP Entwicklungsgesellschaft mbH | |||||
Goodwill [Line Items] | |||||
In-process research and development | $ 42,900,000 | $ 42,900,000 | $ 14,900,000 | ||
ECP Entwicklungsgesellschaft mbH | Measurement Input, Discount Rate | Maximum | |||||
Goodwill [Line Items] | |||||
Fair value inputs, discount rate | 0.21 | 0.21 | |||
ECP Entwicklungsgesellschaft mbH | Measurement Input, Discount Rate | Minimum [Member] | |||||
Goodwill [Line Items] | |||||
Fair value inputs, discount rate | 0.15 | 0.15 |
Carrying Value of Goodwill and
Carrying Value of Goodwill and Change in Balance (Detail) $ in Thousands | 6 Months Ended |
Sep. 30, 2020USD ($) | |
Goodwill [Line Items] | |
Beginning balance | $ 31,969 |
Foreign currency translation impact | 2,105 |
Ending balance | 78,122 |
Breethe, Inc | |
Goodwill [Line Items] | |
Breethe, Inc. acquisition | $ 44,048 |
Summary of Components of In-Pro
Summary of Components of In-Process Research & Development (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Mar. 31, 2020 |
Goodwill [Line Items] | ||
In-process research and development | $ 42,895 | $ 14,913 |
ECP | ||
Goodwill [Line Items] | ||
In-process research and development | 15,895 | $ 14,913 |
Breethe, Inc. | ||
Goodwill [Line Items] | ||
In-process research and development | $ 27,000 |
Carrying value of In-Process Re
Carrying value of In-Process Research and Development (Detail) $ in Thousands | 6 Months Ended |
Sep. 30, 2020USD ($) | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Beginning balance | $ 14,913 |
Breethe, Inc. acquisition | 27,000 |
Foreign currency translation impact | 982 |
Ending balance | $ 42,895 |
Summary of Components of Other
Summary of Components of Other Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 |
Goodwill [Line Items] | ||||||
Fair value of investment | $ 39,041 | $ 38,741 | $ 38,741 | $ 31,584 | $ 26,584 | $ 24,584 |
Operating lease right of use asset (Note 8) | 11,021 | 11,760 | ||||
Cross currency swap (Note 6) | 3,786 | |||||
Other intangible assets and other assets | 10,038 | 7,664 | ||||
Total other assets | 82,594 | 117,655 | ||||
Shockwave Medical | ||||||
Goodwill [Line Items] | ||||||
Investment in Shockwave Medical | $ 22,494 | $ 55,704 |
Carrying value of Other Investm
Carrying value of Other Investments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Beginning balance | $ 38,741 | $ 26,584 | $ 38,741 | $ 24,584 |
Additions | 1,100 | 5,000 | 3,100 | 7,000 |
Reclassification | (2,000) | |||
Impairment | (800) | (800) | ||
Ending balance | $ 39,041 | $ 31,584 | $ 39,041 | $ 31,584 |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information Related to Operating Leases (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Mar. 31, 2020 |
Leases [Abstract] | ||
Operating lease right-of-use assets in other assets | $ 11,021 | $ 11,760 |
Operating lease liabilities in other current liabilities | 3,683 | 3,671 |
Operating lease liabilities in other long-term liabilities | 7,807 | 8,549 |
Total operating lease liabilities | $ 11,490 | $ 12,220 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | ||||
Operating lease expense | $ 1,100 | $ 2,200 | $ 1,100 | $ 2,200 |
Maturities of Lease Liabilities
Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 |
Leases [Abstract] | |||
2021 | $ 2,153 | ||
2022 | 3,088 | ||
2023 | 1,925 | ||
2024 | 1,782 | ||
2025 | 1,578 | ||
Thereafter | 2,033 | ||
Total minimum lease payments | 12,559 | ||
Less: imputed interest | (1,069) | ||
Present value of operating lease liabilities | $ 11,490 | $ 12,220 | |
Weighted average remaining lease term | 4 years 11 months 26 days | ||
Weighted average discount rate | 3.14% |
Accrued Expenses (Detail)
Accrued Expenses (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Mar. 31, 2020 |
Payables and Accruals [Abstract] | ||
Employee compensation | $ 29,081 | $ 32,273 |
Sales and income taxes | 11,239 | 21,641 |
Research and development | 5,481 | 5,749 |
Professional, legal, and accounting fees | 3,320 | 6,880 |
Warranty | 1,739 | 1,818 |
Marketing | 1,092 | 1,705 |
Other | 5,275 | 5,041 |
Accrued expenses | $ 57,227 | $ 75,107 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Sep. 30, 2020 | Mar. 31, 2020 | Aug. 31, 2019 |
Stockholders Equity Note [Abstract] | |||
Class B Preferred Stock, Authorized | 1,000,000 | 1,000,000 | |
Class B Preferred Stock, par value | $ 0.01 | $ 0.01 | |
Class B Preferred Stock, Issued | 0 | 0 | |
Class B Preferred Stock, outstanding | 0 | 0 | |
Stock repurchase program, authorized amount | $ 200 | ||
Stock repurchase program, remaining authorized repurchase amount | $ 103.8 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Stock Repurchase Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Stockholders Equity Note [Abstract] | ||||
Shares repurchased | 180,929 | 67,649 | 180,929 | |
Average price per share | $ 192.75 | $ 167.19 | $ 192.75 | |
Value of shares repurchased (in millions) | $ 11,310 | $ 34,874 | $ 11,300 | $ 34,900 |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | |
Shareholders Equity [Line Items] | ||||
Beginning Balance | $ 1,101,848 | $ 1,065,466 | $ 1,002,593 | $ 936,890 |
Ending Balance | 1,182,409 | 1,101,848 | 991,457 | 1,002,593 |
Foreign Currency Translation Gains (Losses) | ||||
Shareholders Equity [Line Items] | ||||
Beginning Balance | (15,500) | (16,860) | (12,694) | (15,028) |
Other comprehensive income (loss) | 2,416 | 1,360 | (5,716) | 2,334 |
Ending Balance | (13,084) | (15,500) | (18,410) | (12,694) |
Unrealized Gains on Investments | ||||
Shareholders Equity [Line Items] | ||||
Beginning Balance | 3,427 | 1,672 | 939 | 339 |
Other comprehensive income (loss) | (814) | 1,755 | (85) | 600 |
Ending Balance | 2,613 | 3,427 | 854 | 939 |
Gains (Losses) on Derivative Instruments | ||||
Shareholders Equity [Line Items] | ||||
Beginning Balance | 3,538 | 3,999 | ||
Other comprehensive income (loss) | (266) | (461) | ||
Ending Balance | 3,272 | 3,538 | ||
Accumulated Other Comprehensive Loss | ||||
Shareholders Equity [Line Items] | ||||
Beginning Balance | (8,535) | (11,189) | (11,755) | (14,689) |
Other comprehensive income (loss) | 1,336 | 2,654 | (5,801) | 2,934 |
Ending Balance | $ (7,199) | $ (8,535) | $ (17,556) | $ (11,755) |
Stock-Based Compensation Recogn
Stock-Based Compensation Recognized (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | $ 11,565 | $ 13,323 | $ 20,863 | $ 26,445 |
Cost of revenue | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 923 | 881 | 1,627 | 1,722 |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 1,705 | 1,823 | 3,147 | 3,706 |
Selling, general and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | $ 8,937 | $ 10,619 | $ 16,089 | $ 21,017 |
Summary of Stock Option Activit
Summary of Stock Option Activity (Detail) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended |
Sep. 30, 2020USD ($)$ / sharesshares | Mar. 31, 2019 | |
Options | ||
Outstanding at beginning of period | shares | 869 | |
Granted | shares | 65 | |
Exercised | shares | (153) | |
Cancelled and expired | shares | (8) | |
Outstanding at end of period | shares | 774 | |
Exercisable at end of period | shares | 592 | |
Options vested and expected to vest at end of period | shares | 773 | |
Weighted Average Exercise Price | ||
Outstanding at beginning of period | $ / shares | $ 112.03 | |
Granted | $ / shares | 221.12 | |
Exercised | $ / shares | 36.41 | |
Cancelled and expired | $ / shares | 227.25 | |
Outstanding at end of period | $ / shares | 134.90 | |
Exercisable at end of period | $ / shares | 98.68 | |
Options vested and expected to vest at end of period | $ / shares | $ 134.92 | |
Weighted Average Remaining Contractual Term (years) | ||
Outstanding | 5 years 9 months 7 days | 5 years 3 months 18 days |
Exercisable at end of period | 4 years 10 months 2 days | |
Options vested and expected to vest at end of period | 5 years 9 months 7 days | |
Aggregate Intrinsic Value | ||
Outstanding at end of period | $ | $ 117,144 | |
Exercisable at end of period | $ | 110,352 | |
Options vested and expected to vest at end of period | $ | $ 117,040 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 6 Months Ended | |
May 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate intrinsic value of options exercised in period | $ 37,800 | ||
Proceeds from the exercise of stock options | $ 5,555 | $ 2,706 | |
Granted | 30,781,000 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Unrecognized stock-based compensation expense | $ 13,000 | ||
Unrecognized stock-based compensation expense, weighted-average recognition period | 1 year 10 months 24 days | ||
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Unrecognized stock-based compensation expense | $ 59,300 | ||
Unrecognized stock-based compensation expense, weighted-average recognition period | 2 years 1 month 6 days | ||
Weighted average grant-date fair value | $ 254.55 | ||
Fair value of units vested | $ 26,800 | ||
Granted | 194,000 | ||
Performance Based Restricted Stock Units | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted | 61,674 | ||
Market-Based Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted | 61,562 | ||
Stock units minimum range percent | 0.00% | ||
Stock units maximum range percent | 200.00% | ||
Compensation expense period description | The fair value related to these awards are recorded as compensation expense over the period from date of grant to May 2022 and May 2023, respectively | ||
Market-Based Awards | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized stock-based compensation expense, weighted-average recognition period | 3 years | ||
Market-Based Awards | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized stock-based compensation expense, weighted-average recognition period | 2 years |
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) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Valuation assumptions: | ||||
Risk-free interest rate | 0.20% | |||
Expected volatility | 35.50% | |||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average grant-date fair value | $ 100.51 | $ 70.40 | $ 76.10 | $ 95.62 |
Valuation assumptions: | ||||
Risk-free interest rate | 0.30% | 1.54% | 0.31% | 2.02% |
Expected option life (years) | 4 years 2 months 1 day | 4 years 1 month 17 days | 4 years 2 months 19 days | 4 years 1 month 20 days |
Expected volatility | 43.50% | 44.20% | 42.82% | 42.30% |
Summary of Restricted Stock Uni
Summary of Restricted Stock Units Activity (Detail) shares in Thousands | 6 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Number of Shares | |
Granted | 30,781 |
Restricted Stock Units | |
Number of Shares | |
Beginning Balance | 320 |
Granted | 194 |
Vested | (136) |
Forfeited | (101) |
Ending Balance | 277 |
Weighted Average Grant Date Fair Value | |
Beginning Balance | $ / shares | $ 263.92 |
Granted | $ / shares | 254.55 |
Vested | $ / shares | 226.71 |
Forfeited | $ / shares | 267.28 |
Ending Balance | $ / shares | $ 274.31 |
Summary of Assumptions Used To
Summary of Assumptions Used To Value Awards And Estimated Grant-Date Fair Value (Detail) shares in Thousands | 6 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate | 0.20% |
Expected volatility | 35.50% |
Target performance (number of shares) | shares | 30,781 |
Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Remaining performance period (years) | 1 year 10 months 24 days |
Estimated fair value per share | $ 347.05 |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Remaining performance period (years) | 2 years 10 months 24 days |
Estimated fair value per share | $ 349.28 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision | $ 10,702 | $ 4,287 | $ 27,190 | $ 18,502 |
Effective income tax rate | 14.70% | 24.70% | 20.30% | 15.40% |
U.S. federal statutory corporate tax rate | 21.00% | 21.00% | 21.00% | 21.00% |
Excess tax benefits from stock-based awards | $ 7,900 | $ 500 | $ 8,500 | $ 13,300 |
Differences Between Statutory I
Differences Between Statutory Income Tax Rate and Effective Income Tax Rate (Detail) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Statutory income tax rate | 21.00% | 21.00% | 21.00% | 21.00% |
Excess tax benefits from stock-based awards | (10.90%) | (2.70%) | (6.30%) | (11.00%) |
Credits | (1.70%) | (2.10%) | (1.70%) | (1.70%) |
State taxes, net | 4.10% | 3.30% | 4.10% | 3.40% |
Permanent differences | 2.60% | 1.70% | 3.40% | 1.90% |
Excess foreign tax credit | 0.40% | 0.40% | ||
Other | (0.80%) | 3.50% | (0.60%) | 1.70% |
Effective tax rate | 14.70% | 24.70% | 20.30% | 15.40% |
Segment and Enterprise Wide D_2
Segment and Enterprise Wide Disclosures - Additional Information (Detail) $ in Millions | 3 Months Ended | ||
Sep. 30, 2020USD ($)Segment | Sep. 30, 2019 | Mar. 31, 2020USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of business segments | Segment | 1 | ||
International | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | $ | $ 52.9 | $ 46.7 | |
Customer Concentration Risk | Revenue | International | |||
Segment Reporting Information [Line Items] | |||
Percentage of revenue accounted | 18.00% | 16.00% |