Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 11, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | AFFYMETRIX INC | ||
Entity Central Index Key | 913,077 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 865 | ||
Entity Common Stock, Shares Outstanding | 80,541,254 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 88,767 | $ 79,923 |
Other Short-term Investments | 50,000 | 0 |
Accounts receivable, net | 58,970 | 46,896 |
Inventories—short-term portion | 54,131 | 50,676 |
Deferred tax assets—short-term portion | 0 | 3,778 |
Prepaid expenses and other current assets | 7,655 | 9,197 |
Total current assets | 259,523 | 190,470 |
Property and equipment, net | 21,000 | 18,087 |
Inventories—long-term portion | 2,207 | 5,956 |
Goodwill | 154,539 | 156,178 |
Intangible assets, net | 102,398 | 106,183 |
Deferred tax assets—long-term portion | 567 | 303 |
Other long-term assets | 6,657 | 9,371 |
Total assets | 546,891 | 486,548 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 56,037 | 53,063 |
Term loan—short-term portion | 4,000 | 4,000 |
Deferred revenue—short-term portion | 8,605 | 9,210 |
Total current liabilities | 68,642 | 66,273 |
Deferred revenue—long-term portion | 2,161 | 2,372 |
Convertible notes | 105,000 | 105,000 |
Term loan—long-term portion | 15,088 | 18,950 |
Other long-term liabilities | 16,747 | 21,626 |
Stockholders' equity: | ||
Convertible preferred stock, $0.01 par value; 5,000 shares authorized; no shares issued and outstanding at December 31, 2015 or 2014 | 0 | 0 |
Common stock, $0.01 par value; 200,000 shares authorized; 80,482 and 74,287 shares issued and outstanding at December 31, 2015 and 2014, respectively | 805 | 743 |
Additional paid-in capital | 847,266 | 781,747 |
Accumulated other comprehensive loss | (9,380) | (612) |
Accumulated deficit | (499,438) | (509,551) |
Total stockholders' equity | 339,253 | 272,327 |
Total liabilities and stockholders' equity | $ 546,891 | $ 486,548 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Convertible preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Convertible preferred stock, shares authorized (in share) | 5,000,000 | 5,000,000 |
Convertible stock, shares issued (in shares) | 0 | 0 |
Convertible preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 80,482,000 | 74,287,000 |
Common stock, shares outstanding (in shares) | 80,482,000 | 74,287,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Weighted Average Number of Shares Outstanding, Diluted | 80,707 | 73,202 | 71,441 |
REVENUE: | |||
Product sales | $ 327,011 | $ 310,458 | $ 302,618 |
Services and other | 32,775 | 38,561 | 27,781 |
Total revenue | 359,786 | 349,019 | 330,399 |
COSTS AND EXPENSES: | |||
Cost of product sales | 110,770 | 117,499 | 133,982 |
Cost of services and other | 19,775 | 25,659 | 15,379 |
Research and development | 52,900 | 50,227 | 47,670 |
Selling, general and administrative | 149,638 | 148,411 | 141,430 |
Litigation settlement | 10,000 | 5,100 | 0 |
Restructuring charges | 0 | 0 | 4,490 |
Total costs and expenses | 343,083 | 346,896 | 342,951 |
Income (loss) from operations | 16,703 | 2,123 | (12,552) |
Other income, net | 752 | 652 | 802 |
Interest expense | 6,609 | 6,373 | 12,711 |
Gain on sale of product line | 0 | 0 | 9,295 |
Income (loss) before income taxes | 10,846 | (3,598) | (15,166) |
Income tax provision | 733 | 236 | 1,161 |
Net income (loss) | $ 10,113 | $ (3,834) | $ (16,327) |
Earnings Per Share, Basic | $ 0.13 | $ (0.05) | $ (0.23) |
Earnings Per Share, Diluted | $ 0.13 | $ (0.05) | $ (0.23) |
Weighted Average Number of Shares Outstanding, Basic | 77,842 | 73,202 | 71,441 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 10,113 | $ (3,834) | $ (16,327) |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustment | (7,673) | (10,717) | 2,410 |
Unrealized change on non-marketable securities (net of tax of $0, $290 and $290 for the years ended December 31, 2015, 2014 and 2013, respectively) | (68) | (154) | 476 |
Unrealized change on cash flow hedges (net of tax of $0, $154 and $0 for the years ended December 31, 2015, 2014 and 2013, respectively) | (1,027) | 1,867 | (796) |
Net change in other comprehensive income (loss), net of tax | (8,768) | (9,004) | 2,090 |
Comprehensive income (loss) | $ 1,345 | $ (12,838) | $ (14,237) |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Unrealized change on non-marketable securities (net of tax of $0, $290 and $290 for the years ended December 31, 2015, 2014 and 2013, respectively) | $ 0 | $ 290 | $ 290 |
Unrealized change on cash flow hedges (net of tax of $0, $154 and $0 for the years ended December 31, 2015, 2014 and 2013, respectively) | $ 0 | $ 154 | $ 0 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Income [Member] | Accumulated Deficit [Member] |
Balance (in shares) at Dec. 31, 2012 | 71,030 | ||||
Beginning Balance at Dec. 31, 2012 | $ 277,171 | $ 710 | $ 759,549 | $ 6,302 | $ (489,390) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock in connection with employee stock plans and other (in shares) | 924 | ||||
Issuance of common stock in connection with employee stock plans and other | (85) | $ 9 | (94) | ||
Employee stock purchase plan (in shares) | 351 | ||||
Employee stock purchase plan | 911 | $ 4 | 907 | ||
Share-based compensation expense | 7,727 | 7,727 | |||
Excess tax benefit for share-based compensation | 60 | 60 | |||
Net change in other comprehensive income (loss), net of tax | 2,090 | 2,090 | |||
Net income (loss) | (16,327) | (16,327) | |||
Balance (in shares) at Dec. 31, 2013 | 72,305 | ||||
Ending Balance at Dec. 31, 2013 | 271,547 | $ 723 | 768,149 | 8,392 | (505,717) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock in connection with employee stock plans and other (in shares) | 1,647 | ||||
Issuance of common stock in connection with employee stock plans and other | (971) | $ 16 | (987) | ||
Employee stock purchase plan (in shares) | 335 | ||||
Employee stock purchase plan | 2,178 | $ 4 | 2,174 | ||
Share-based compensation expense | 12,411 | 12,411 | |||
Net change in other comprehensive income (loss), net of tax | (9,004) | (9,004) | |||
Net income (loss) | (3,834) | (3,834) | |||
Balance (in shares) at Dec. 31, 2014 | 74,287 | ||||
Ending Balance at Dec. 31, 2014 | 272,327 | $ 743 | 781,747 | (612) | (509,551) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock in connection with employee stock plans and other (in shares) | 2,004 | ||||
Issuance of common stock in connection with employee stock plans and other | 3,088 | $ 20 | 3,068 | ||
Employee stock purchase plan (in shares) | 355 | ||||
Employee stock purchase plan | 2,568 | $ 4 | 2,564 | ||
Share-based compensation expense | 14,985 | 14,985 | |||
Excess tax benefit for share-based compensation | 167 | 167 | |||
Net change in other comprehensive income (loss), net of tax | (8,768) | (8,768) | |||
Net income (loss) | 10,113 | ||||
Issuance of common stock in connection with at the market offerings (in shares) | 3,836 | ||||
Issuance of common stock in connection with at the market offerings | 44,773 | $ 38 | 44,735 | ||
Balance (in shares) at Dec. 31, 2015 | 80,482 | ||||
Ending Balance at Dec. 31, 2015 | $ 339,253 | $ 805 | $ 847,266 | $ (9,380) | $ (499,438) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income (loss) | $ 10,113 | $ (3,834) | $ (16,327) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 21,838 | 30,677 | 38,988 |
Amortization of inventory step-up in fair value | 0 | 4,666 | 14,876 |
Excess tax benefits for share-based compensation | 167 | 0 | 60 |
Share-based compensation | 14,985 | 12,411 | 7,727 |
Deferred tax assets | (1,209) | (2,078) | (167) |
Gain on sale of product line | 0 | 0 | (9,295) |
Gain on sales of securities | (1,383) | (2,532) | 218 |
Other non-cash transactions | 1,380 | 1,132 | 5,205 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (11,984) | 2,824 | 2,347 |
Inventories | (1,058) | 603 | 2,455 |
Prepaid expenses and other assets | 1,490 | (460) | (9) |
Accounts payable and accrued liabilities | 2,410 | 8,750 | (816) |
Deferred revenue | (1,086) | (9,859) | 9,596 |
Other long-term liabilities | 871 | 1,183 | (1,274) |
Net cash provided by operating activities | 36,534 | 43,483 | 53,584 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of short-term investments | (50,000) | 0 | 0 |
Acquisition of businesses, net of cash acquired | (14,000) | 0 | 0 |
Proceeds from sales of available-for-sale securities | 0 | 0 | 9,364 |
Proceeds from sale of property and equipment | 0 | 130 | 0 |
Proceeds from sale of product line | 0 | 0 | 11,832 |
Capital expenditures | (10,455) | (7,891) | (4,808) |
Capital distribution from non-marketable investments | 1,822 | 3,133 | 0 |
Purchase of technology rights | (533) | (43) | (736) |
Net cash provided by (used in) investing activities | (73,166) | (4,671) | 15,652 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Issuance of common stock, net | 50,429 | 1,207 | 825 |
Proceeds from term loan and revolver | 20,083 | 0 | 48,000 |
Payments of term loan | (23,950) | (16,500) | (81,826) |
Debt issuance costs | (249) | 0 | (1,080) |
Excess tax benefits for share-based compensation | (167) | 0 | 0 |
Repurchase of 3.50% senior convertible notes | 0 | 0 | (3,855) |
Net cash (used in) provided by financing activities | 46,146 | (15,293) | (37,936) |
Effect of exchange rate changes on cash and cash equivalents | (670) | (724) | 157 |
Net increase in cash and cash equivalents | 8,844 | 22,795 | 31,457 |
Cash and cash equivalents at beginning of period | 79,923 | 57,128 | 25,671 |
Cash and cash equivalents at end of period | 88,767 | 79,923 | 57,128 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
Cash paid for interest | 4,812 | 5,434 | 12,456 |
Cash paid for income taxes, net of refunds | $ 1,881 | $ 1,563 | $ 2,222 |
CONSOLIDATED STATEMENTS OF CAS9
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) | Dec. 31, 2013 |
3.00% Senior Convertible Notes [Member] | |
Interest rate | 3.50% |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS | NATURE OF OPERATIONS Affymetrix, Inc. ("Affymetrix" or the "Company") is a provider of life science products and molecular diagnostic products that enable multiplex and parallel analysis of biological systems at the gene, protein and cell level. The Company sells products to genomic research centers, academic institutions, government and private laboratories, as well as pharmaceutical, diagnostic and biotechnology companies. The Company also sells its products principally through third party distributors that specialize in life science supply in Mexico, India, Brazil, the Middle East and Asia Pacific, including China. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION The consolidated financial statements include the accounts of Affymetrix and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. The consolidated financial statements include the results of companies acquired by us from the date of each acquisition for the applicable reporting periods. USE OF ESTIMATES The preparation of the consolidated financial statements is in conformity with U.S. generally accepted accounting principles ("US GAAP") which require management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Actual results could differ materially from those estimates. BUSINESS COMBINATIONS The Company's consolidated financial statements include the operations of an acquired business after the completion of the acquisition. The Company accounts for acquired businesses using the acquisition method of accounting which requires, among other things, that assets acquired and liabilities assumed be recognized at their estimated fair values as of the acquisition date, while transaction costs are expensed as incurred, except for any debt and equity issuance costs. The measurement of the fair value of assets acquired and liabilities assumed requires significant judgment. Any excess of the purchase price over the fair value of the net assets acquired is recorded as goodwill. FOREIGN CURRENCY Certain operations from foreign subsidiaries of the Company have a functional currency other than the U.S. dollar. All other subsidiaries have the U.S. dollar as their functional currency. Assets and liabilities of non-U.S. subsidiaries that use the local currency as their functional currency are translated to U.S. dollars at exchange rates in effect at the balance sheet date with the resulting translation adjustments directly recorded to a separate component of accumulated other comprehensive income (loss) within stockholders' equity. Income and expense accounts are translated at average exchange rates during the year. Foreign currency transaction gains and losses are recognized, net of hedging activity, in interest income and other, net and were comprised of net loss of $1.0 million for the year ended December 31, 2015 , net loss of $2.5 million for the year ended December 31, 2014 , and net gain of $0.1 million for the year ended December 31, 2013 . The Company's subsidiaries that use the U.S. dollar as their functional currency re-measure monetary assets and liabilities at exchange rates in effect at the end of each period, and inventories, property and other nonmonetary assets and liabilities at historical rates. Gains and losses from these re-measurements were insignificant and have been included in the Company's results of operations. CASH EQUIVALENTS, AVAILABLE-FOR-SALE SECURITIES AND INVESTMENTS Marketable Securities During 2015, the Company purchased interests in a money market fund. The Company reported all securities with maturities at the date of purchase of 90 days or less that were readily convertible into cash and have insignificant interest rate risk as cash equivalents. The Company's investments in marketable securities were carried at fair value with unrealized gains and losses reported in accumulated other comprehensive income (loss) in stockholders' equity. The cost of marketable securities is adjusted for the amortization of premiums and discounts to maturity and is included in interest income and other, net. Realized gains and losses, as well as interest income, on marketable securities are also included in interest income and other, net. The fair values of securities are based on quoted market prices. As of December 31, 2015 , the Company held $30.0 million in money market fund. As of December 31, 2014, the Company did not hold any marketable securities. Other-than-temporary Impairment All of the Company's non-marketable securities are subject to quarterly reviews for impairment that is deemed to be other-than-temporary ("OTTI"). An investment is considered other-than-temporarily impaired when its fair value is below its amortized cost and (1) the Company intends to sell the security; (2) it is "more likely than not" that the Company will be required to sell the security before recovery of its amortized cost basis; or (3) the present value of expected cash flows is not expected to recover the entire amortized cost basis. Below is a summary of the Company's analysis: During the years ended December 31, 2015 , 2014 and 2013, the Company recorded no impairment charges on its marketable securities. Refer to Note 6. "Financial Instruments" for further information. The Company monitors the liquidity and financing activities of its non-marketable securities to determine if any impairment exists and accordingly writes down, to the extent necessary, the carrying value of the non-marketable equity securities to their estimated fair values. In order to determine whether a decline in value is other-than-temporary, the Company evaluates, among other factors: the duration and extent to which the fair value has been less than the carrying value; the financial condition of and business outlook of the issuer, including key operational and cash flow metrics, current market conditions; and the Company's intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in estimated fair value. The Company recognized impairment changes of less than $0.1 million , $0.1 million and $0.5 million on its non-marketable securities during the years ended December 31, 2015 , December 31, 2014 and 2013, respectively. Refer to Note 6. "Financial Instruments" for further information. ACCOUNTS RECEIVABLE Trade accounts receivable are recorded at net invoice value. The Company considers amounts past due based on the related terms of the invoice. The Company reviews its exposure to amounts receivable and provides an allowance for specific amounts if collectability is no longer reasonably assured. The Company also provides an allowance for a percentage of the gross trade receivable balance (excluding any specifically reserved amounts) based on its collection history. The allowance for doubtful accounts was not significant at either December 31, 2015 or 2014 . DERIVATIVE INSTRUMENTS The Company accounts for its derivative instruments as either assets or liabilities and carries them at fair value. Derivatives that are not defined as hedges must be adjusted to fair value through earnings at each reporting date. For derivative instruments that hedge the exposure to variability in expected future cash flows that are designated as cash flow hedges, the Company measures the effectiveness of the derivative instruments by comparing the cumulative change in the hedge contract with the cumulative change in the hedged item. The effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income (loss) ("OCI") in stockholders' equity and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The ineffective portion of the gain or loss on the derivative instrument is recognized in current earnings. To receive hedge accounting treatment, cash flow hedges must be highly effective in offsetting changes to expected future cash flows on hedged transactions. The net gain or loss on the effective portion of a derivative instrument that is designated as an economic hedge of the foreign currency translation exposure of the net investment in a foreign operation is reported in the same manner as a foreign currency translation adjustment. Refer to Note 6. "Financial Instruments – Derivative Financial Instruments" for further information. INVENTORIES Inventory cost is computed on an adjusted standard basis (which approximates actual cost on a first-in, first-out basis). Provisions for slow moving, potentially excess and obsolete inventories are provided based on estimated demand requirements, product life cycle and development plans, component cost trends, product pricing, product expiration and quality issues. Inventory that is not expected to be utilized until more than 12 months from the balance sheet date is classified as long-term. Estimating the level of inventory utilization for the upcoming 12 months requires management to exercise significant judgment. The Company maintains inventory levels in excess of 12 months for certain components of work-in-progress that have useful lives of up to 10 years. Carrying such levels of inventory impacts the Company's liquidity and cash flows since the inventory will not be converted to cash for more than one year. PROPERTY AND EQUIPMENT Property and equipment are recorded at cost and are depreciated using the straight-line method over the estimated useful lives of the assets or the lease term, whichever is shorter. Equipment and furniture is depreciated over useful lives generally ranging from 3 to 7 years and leasehold improvements are depreciated over the shorter of the expected life of the asset or lease terms generally ranging from 3 to 15 years. Maintenance and repair costs are expensed as incurred. The Company reassesses the useful life of its property and equipment on a periodic basis and may adjust the lives accordingly. GOODWILL, INTANGIBLE ASSETS AND OTHER LONG-LIVED ASSETS Goodwill represents the excess of the fair value of an acquired entity over the fair value of the net tangible and identifiable intangible assets acquired and liabilities assumed in a business combination. Finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives, which range from one to fifteen years , with the amortization recognized in either cost of revenue or operating expenses, as appropriate. Goodwill is not subject to amortization, but is tested for impairment on an annual basis during the third quarter or whenever events or changes in circumstances indicate the carrying amount of these assets may not be recoverable. Goodwill impairment testing is a two-step process and performed on a reporting unit level. In the first step, the Company conducts an assessment of qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company determines that it is more likely than not that the fair value of its reporting unit is less than its carrying amount, it then conducts the second step, a two-part test for impairment of goodwill. The Company first compares the fair value of its reporting units to their carrying values. If the fair values of the reporting units exceed the carrying value of the net assets, goodwill is not considered impaired and no further analysis is required. If the carrying values of the net assets exceed the fair values of the reporting units, then the second part of the impairment test must be performed in order to determine the implied fair value of the goodwill. If the carrying value of the goodwill exceeds the implied fair value, then an impairment loss equal to the difference would be recorded. During the third quarter of 2015 , the Company performed an analysis of the qualitative factors and concluded that it was not more likely than not that the fair value of its reporting units are less than their carrying amounts. For the years ended December 31, 2015 , 2014 and 2013 , no impairment charges on goodwill were recognized. Finite-lived intangible assets and other long-lived assets are reviewed for impairment when facts or circumstances suggest that the carrying value of such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. In the event that such cash flows are not expected to be sufficient to recover the carrying amount of the assets, the assets are written down to their estimated fair values. Additionally, during each period, the Company evaluates the estimated remaining useful lives of purchased finite-lived intangible assets and other long-lived assets to determine whether events or changes in circumstances warrant a revision to the remaining period of amortization. For the years ended December 31, 2015 , 2014 and 2013 , no impairment charges on long-lived assets were recognized. INCOME TAXES Income tax expense is based on pre-tax financial accounting income. Under the liability method, deferred tax assets and liabilities are determined based on the differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The Company must then assess the likelihood that the resulting deferred tax assets will be realized. To the extent the Company believes that realization of the deferred tax assets is not more likely than not, the Company establishes a valuation allowance. Significant estimates are required in determining the Company's provision for income taxes, deferred tax assets and liabilities, any valuation allowance to be recorded against net deferred tax assets, and reserves for income tax related uncertainties. Some of these estimates are based on interpretations of existing tax laws or regulations. Various internal and external factors may have favorable or unfavorable effects on the Company's future effective tax rate. These factors include, but are not limited to, changes in overall levels of characterization and geographical mix of pretax earnings (losses), changes in tax laws, regulations and/or rates, changing interpretations of existing tax laws or regulations, changes in the valuation of deferred tax assets or liabilities, levels of research and development spending, nondeductible expenses, applicability of tax holidays, ultimate outcomes of income tax audits, income tax impacts of any business combination transactions, intraperiod tax allocation provisions, or changes in our equity structure. Relative to uncertain tax positions, the Company only recognizes the tax benefit if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the Company's financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. CONTINGENCIES The Company is subject to various legal proceedings principally related to intellectual property matters. Based on the information available at the most recent balance sheet date, the Company assesses the likelihood of any material adverse judgments or outcomes that may result from these matters, as well as the range of possible or probable loss, if any. If losses are probable and reasonably estimable, the Company will recognize a liability. Any liability recognized may change in the future due to new developments in each matter. REVENUE RECOGNITION Overview The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable, and collectability is reasonably assured. In instances where final acceptance of the product or system is required or performance obligations remain, revenue is deferred until all the acceptance criteria or performance obligations have been met. The Company derives the majority of its revenue from product sales of probe arrays, reagents, and related instrumentation that may be sold individually or combined with any of the Company's products, services or other sources of revenue. When a sale combines multiple elements upon delivery or performance of multiple products, services and/or rights to use assets, the Company allocates revenue for transactions or collaborations that include multiple elements to each unit of accounting based on its relative fair value or best estimate of selling price, and recognizes revenue for each unit of accounting when all revenue recognition criteria have been met. The price charged when an element is sold separately generally determines fair value. Product Sales Product sales include sales of probe arrays, antibodies, reagents, kits and related instrumentation. Probe array, reagent and instrumentation revenue is recognized when earned, which is generally upon shipment and transfer of title to the customer and fulfillment of any significant post-delivery obligations. Accruals are provided for anticipated warranty expenses at the time the associated revenue is recognized. Services Services revenue includes equipment service revenue; scientific services revenue, which includes associated consumables; and revenue from custom probe array design fees. Revenue from equipment service contracts is recognized ratably over the life of the contract. Revenue from scientific and DNA analysis services is recognized upon shipment of the required data to the customer. Revenue from custom probe array design fees associated with the Company's GeneChip CustomExpress and CustomSeq products is recognized when the associated products are shipped. Royalties and Other Revenue Royalties and other revenue include license revenue; royalties earned from third party license agreements; milestones and royalties earned from collaborative product development and supply agreements; subscription fees earned under GeneChip array access programs; and research revenue, which mainly consists of amounts earned under government grants. License revenue is generally recognized upon the execution of an agreement or is recognized ratably over the period of expected performance. Revenue from royalties is recognized under the terms of the related agreement. The Company enters into collaborative arrangements which generally include a research and product development phase and a manufacturing and product supply phase. These arrangements may include up-front nonrefundable license fees, milestones, the rights to royalties based on the sale of final product by the partner, product supply agreements and distribution arrangements. Any up-front, nonrefundable payments from collaborative product development agreements are recognized ratably over the research and product development period and at-risk based milestones are recognized when earned. Any payments received which are not yet earned are included in deferred revenue. Transactions with Distributors The Company recognizes revenue from transactions with distributors when the product is delivered either to customers or distributors. The Company's agreements with distributors do not include rights of return. RESEARCH AND DEVELOPMENT EXPENSES Research and development expenses consist of costs incurred for internal, collaborative and grant‑sponsored research and development. Research and development expenses include salaries, contractor fees, building costs, utilities and allocations of shared corporate services. In addition, the Company funds research and development at other companies and research institutions under agreements which are generally cancelable. All such costs are charged to research and development expense as incurred. ADVERTISING COSTS The Company expenses advertising costs as incurred. Advertising expense for the years ended December 31, 2015 , 2014 and 2013 was $2.4 million , $2.7 million , and $2.2 million , respectively. SHARE‑BASED COMPENSATION The Company estimates the fair value of its option grants and shares sold under its Employee Stock Purchase Plan using the BSM option pricing model. This model requires the use of certain estimates and assumptions such as the expected term of options, estimated forfeitures, expected volatility of the Company's stock price, expected dividends and the risk-free interest rate at the grant date to determine the fair value of stock-based payments. The fair value of restricted stock awards, restricted stock units and performance based restricted stock units, collectively referred to as restricted stock, is based on the market price of the Company's common stock on the grant date. The Company recognizes the fair value of its share-based compensation as expense on a straight-line basis over the requisite service period of each award, generally four years . Refer to Note 14. "Stockholders' Equity and Share-Based Compensation Expense" for further information. Performance-Based Awards The Company's share-based awards program includes performance-based restricted stock awards ("PRSUs") that vest based upon the achievement of certain performance criteria and a service vesting criteria following the achievement of performance criteria. Performance criteria include various operational criteria of the Company such as revenues, earnings before interest, taxes, depreciation and amortization, product launches, and similar criteria, either on a Company-wide or business unit specific basis. The service vesting criteria ranges from six months to four years. The Company recognizes the fair value of these awards to the extent the achievement of the related performance criteria is estimated to be probable. If a performance criteria is subsequently determined to not be probable of achievement, any related expense is reversed in the period such determination is made. Conversely, if a performance criteria is not currently expected to be achieved but is later determined to be probable of achievement, a “catch-up” entry is recorded in the period such determination is made for the expense that would have been recognized had the performance criteria been probable of achievement since the grant of the award. SALE OF PRODUCT LINE Effective October 11, 2013, the Company sold its Anatrace-branded reagents and the related group of assets used to manufacture the product line for net proceeds of approximately $11.8 million . The carrying value of the group of assets sold was approximately $2.5 million at the date of disposition and was primarily comprised of inventory. The Company recorded a gain on the sale of Anatrace product line of $9.3 million during the fourth quarter of 2013. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Comprehensive income (loss) is comprised of net loss and other comprehensive income (loss). Other comprehensive income (loss) includes foreign currency translation adjustments, unrealized gains and losses on the Company's non-marketable securities that are excluded from net loss and unrealized gains and losses on cash flow hedges. Total comprehensive income (loss) has been disclosed in the Company's Consolidated Statements of Comprehensive Loss. At December 31, 2015 and 2014 , the components of accumulated other comprehensive income (loss), net of tax, are as follows (in thousands): Year Ended December 31, 2015 2014 Foreign currency translation adjustment (10,606 ) (2,933 ) Unrealized change on non-marketable securities 1,151 1,219 Unrealized change on cash flow hedges 75 1,102 Total accumulated other comprehensive income (loss), net of tax $ (9,380 ) $ (612 ) The following table summarizes the amounts reclassified out of accumulated other comprehensive income (loss), net of tax, for the year ended December 31, 2015 (in thousands): December 31, 2014 (Decrease) / Increase Reclassification Adjustment December 31, 2015 Foreign currency translation adjustment $ (2,933 ) $ (7,574 ) $ (99 ) $ (10,606 ) Unrealized change on non-marketable securities 1,219 (68 ) — 1,151 Unrealized change on cash flow hedges 1,102 2,162 (3,189 ) 75 Total accumulated other comprehensive income (loss), net of tax $ (612 ) $ (5,480 ) $ (3,288 ) $ (9,380 ) NET INCOME (LOSS) PER COMMON SHARE Basic net income (loss) per common share is calculated using the weighted‑average number of common shares outstanding during the period less the weighted‑average shares subject to repurchase. Diluted net income (loss) per common share gives effect to dilutive restricted stock, stock options (calculated based on the treasury stock method), shares purchased under the employee stock purchase plan and convertible debt (calculated using an as-if-converted method). Diluted earnings per share, if any, include certain potential dilutive securities from restricted stock, outstanding stock options (on the treasury stock method), shares purchased under the employee stock purchase plan and convertible notes (on the as-if-converted basis). The potentially dilutive securities excluded from diluted earnings per common share on an actual outstanding basis, were as follows (in thousands): Year Ended December 31, 2015 2014 2013 Employee stock options 2,053 4,195 5,141 Employee stock purchase plan 25 121 153 Restricted stock and restricted stock units 1,716 3,118 4,161 Convertible notes 17,857 17,857 17,862 Total 21,651 25,291 27,317 RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09) to provide guidance on revenue recognition. ASU 2014-09 requires a company to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under today’s guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. In August 2015, the FASB issued Accounting Standards Update No. 2015-14, Revenue from Contracts with Customers (ASU 2015-14) to defer the effective date for ASU 2014-09 to the first quarter of 2018 for public companies. Early adoption up to the first quarter of 2017 is permitted. Upon adoption, ASU 2014-09 can be applied retrospectively to all periods presented or only to the most current period presented with the cumulative effect of changes reflected in the opening balance of retained earnings in the most current period presented. The Company is currently evaluating the method of adoption and the impact of adopting ASU 2014-09 on its consolidated financial statements. In May 2015, the FASB issued Accounting Standards Update No. 2015-03, Interest - Imputation of Interest (ASU 2015-03) to provide guidance on the presentation of debt issuance costs. ASU 2015-03 requires a company to present debt issuance costs as a reduction from the carrying amount of the financial liability and not recorded as separate assets. ASU 2015-03 is effective for the Company in the first quarter of 2016. Early adoption is permitted. Upon adoption, ASU 2015-03 should be applied retrospectively to all periods presented. The Company's adoption of ASU 2015-03 would have resulted in a decrease in Other long-term assets, Convertible notes, and Term loan—long-term portion of $2.2 million as of December 31, 2015 . In July 2015, the FASB issued Accounting Standards Update No. 2015-11, Inventory (ASU 2015-11) to provide guidance on simplifying the measurement of inventory. ASU 2015-11 requires a company to measure inventory at the lower of cost and net realizable value. ASU 2015-11 is effective for the Company in the first quarter of 2017. Early adoption is permitted. Upon adoption, ASU 201511 should be applied prospectively. The Company is currently evaluating the method of adoption and the impact of adopting ASU 2015-11 on its consolidated financial statements. In November 2015, the FASB issued Accounting Standards Update No. 2015-17, Income Taxes (ASU 2015-17) to provide guidance on the presentation of deferred tax assets and liabilities. ASU 2015-17 requires a company to classify deferred tax assets and liabilities as non-current items. The Company adopted this ASU prospectively as of December 31, 2015 and reclassified Deferred tax assets - short-term portion of $3.8 million to Other long-term liabilities on its consolidated balance sheets. No prior periods were retrospectively adjusted. |
ACQUISITION
ACQUISITION | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
ACQUISITION | ACQUISITION On May 13, 2015 ("Acquisition Date"), the Company entered into an Asset Purchase Agreement with Eureka Genomics Corporation (“Eureka”), a developer of cost-effective, low- to mid-plex, high throughput genotyping assays that use next-generation sequencing (NGS) platforms for signal readout (the “Acquisition”). The Acquisition will extend the continuum of product offerings of the Company, enabling the Company to support more applications for current customers and also serve new customers. The Acquisition was accounted for using the acquisition method of accounting. Under the acquisition method of accounting, the tangible and intangible assets and liabilities of Eureka were recorded at their respective fair values as of the Acquisition Date, including an amount for goodwill representing the difference between the Acquisition consideration and the fair value of the net assets. The results of operations of the acquired Eureka business and the estimated fair values of the assets acquired and liabilities assumed have been included in the Company's consolidated financial statements since the Acquisition Date. Purchase Price The total purchase price for Eureka was $15.0 million of cash, including $14.0 million funded as of Acquisition Date through cash on hand and $1.0 million that has been held back and is payable within 12 months of the Acquisition Date to former shareholders of Eureka. Fair values of assets acquired and liabilities assumed Assets acquired and liabilities assumed were recorded at their estimated fair values as of the Acquisition Date and included $12.9 million of identifiable intangible assets and $0.5 million of current liabilities with residual goodwill amounting to $2.6 million . The allocation of acquisition consideration was finalized in the third quarter of 2015. Identified intangible assets included in process research and development (“IPR&D) and customer relationships with estimated fair values of $12.0 million and $0.9 million respectively. These estimated fair values were determined using an income approach, which recognizes that the fair value of an asset is premised upon the expected receipt of future economic benefits such as earnings and cash inflows based on current sales projections and estimated direct costs. Indications of value are developed by discounting these benefits to their present worth at a discount rate that reflects the current return requirements of market participants. The finite-lived intangible assets are being amortized over their estimated useful lives ranging from ten to fifteen years. Goodwill The excess of Acquisition consideration over the provisional fair value of assets acquired and liabilities assumed represents goodwill. The Company believes the factors that contributed to goodwill include synergies that are specific to the Company's consolidated business, and not available to other market participants, or other companies participating in the market, and the acquisition of a talented workforce that expands the Company's expertise in low- to mid-plex, high throughput genotyping assays. The Company expects this goodwill to be deductible for tax purposes in its entirety. Transaction costs The Company cumulatively incurred approximately $0.5 million of Acquisition-related costs that are reported in Selling, general and administrative expense in its Consolidated Statement of Operations for the year ended December 31, 2015 . Pro Forma Financial Information (Unaudited) The following unaudited pro forma financial information presents the combined results of operations for the years ended December 31, 2015 and 2014 as if the Acquisition had been completed on January 1, 2014, with adjustments to give effect to pro forma events that are directly attributable to the Acquisition. The unaudited pro forma results do not reflect any operating efficiencies or potential cost savings that may result from the consolidation of the operations of the Company and Eureka. Accordingly, these unaudited pro forma results are presented for informational purposes only and are not necessarily indicative of what the actual results of operations of the combined company would have been if the Acquisition had occurred at the beginning of the period presented, nor are they indicative of future results of operations (in thousands, except per share data): Years Ended December 31, 2015 2014 Revenues $ 360,171 $ 349,386 Net income (loss) 9,347 (7,137 ) Basic earnings per share 0.12 (0.10 ) Diluted earnings per share 0.12 (0.10 ) |
CONCENTRATIONS OF RISK
CONCENTRATIONS OF RISK | 12 Months Ended |
Dec. 31, 2015 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS OF RISK | CONCENTRATIONS OF RISK Cash equivalents and investments are financial instruments that potentially subject Affymetrix to concentrations of risk to the extent of amounts recorded in the accompanying Consolidated Balance Sheets. Company policy restricts the amount of credit exposure to any one issuer and to any one type of investment, other than securities issued by the United States Government. The Company has not experienced significant credit losses from its accounts receivable. Affymetrix performs a regular review of its customer activity and associated credit risks and does not require collateral from its customers. The Company maintains an allowance for doubtful accounts receivable based upon the expected collectability of accounts receivable. Certain raw materials or components used in the synthesis of probe arrays or the assembly of instrumentation are currently available only from a single source or limited sources. No assurance can be given that these raw materials or other components of the GeneChip system will be available in commercial quantities at acceptable costs from other vendors should the need arise. If the Company is required to seek alternative sources of supply, it could be time consuming and expensive. In addition, the Company is dependent on its vendors to provide components of appropriate quality and reliability and to meet applicable regulatory requirements. Consequently, in the event that supplies from these vendors are delayed or interrupted for any reason, the Company's ability to develop and supply its products could be impaired, which could have a material adverse effect on the Company's business, financial condition and results of operations. For the years ended December 31, 2015 , 2014 and 2013 , approximately 46% , 51% and 51% , respectively, of the Company's total revenue was generated from sales outside the United States. The Company's results of operations are affected by such factors as changes in foreign currency exchange rates, trade protection measures, longer accounts receivable collection patterns and changes in regional or worldwide economic or political conditions. The risks of the Company's international operations are mitigated in part by the extent to which its sales are geographically distributed. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and consider assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions and risk of nonperformance. A fair value hierarchy was established which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs that may be used to measure fair value are as follows: Level 1: quoted prices in active markets for identical assets or liabilities; Level 2: inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; or Level 3: unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company considers an active market to be one in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis, and views an inactive market as one in which there are few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers. Where appropriate the Company's or the counterparty's non-performance risk is considered in determining the fair values of liabilities and assets, respectively. Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table represents the Company's fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 and 2014 (in thousands): December 31, 2015 December 31, 2014 Fair Value Measurements Using Input Types Fair Value Measurements Using Input Types Level 1 Level 2 Level 3 Total Level 2 Level 3 Total Assets: Money market fund $ 30,000 $ — $ — $ 30,000 $ — $ — $ — Derivative assets — 341 — 341 1,258 — 1,258 Non-marketable securities — — 2,753 2,753 — 3,384 3,384 Total assets $ 30,000 $ 341 $ 2,753 $ 33,094 $ 1,258 $ 3,384 $ 4,642 Liabilities: Derivative liabilities $ — 82 $ — $ 82 $ — $ — $ — Derivative financial instruments The Company's derivative financial instruments are measured at fair value on a recurring basis utilizing Level 2 inputs as determined based on review of third-party sources. The fair value of the Company's derivative assets and liabilities is determined based on the estimated consideration the Company would pay or receive to terminate these agreements on the reporting date. The derivative assets and liabilities are classified in Prepaid expenses and other current assets and Accounts payable and accrued expenses, respectively, in the accompanying Consolidated Balance Sheets. Non-Marketable Securities The Company believes the carrying amounts of its non-marketable securities approximated their fair values at the dates presented above. These non-marketable securities consist of an investment in a limited partnership investment fund that invests in companies in the life science industry and are located in the United States. The investments were initially valued at purchase price and subsequently on the basis of inputs that market participants would use in pricing such investments. The portfolio of investments includes Level 1 publicly-traded equity securities and Level 3 equity securities and notes. During the years ended December 31, 2015 , 2014 and 2013, other-than-temporary impairment charges of less than $0.1 million , $0.1 million and $0.5 million , respectively, were recognized on the Company's non-marketable securities. Net investment losses are included in Other income, net in the accompanying Consolidated Statements of Operations. Depending on market conditions, the Company may incur additional losses on this investment in the future. The following table summarizes the change in the fair value of the Company's non-marketable securities during the year ended December 31, 2015 (in thousands). Balance as of December 31, 2013 $ 4,383 Sales (3,133 ) Impairment (139 ) Realized gain 2,548 Unrealized gain (275 ) Balance as of December 31, 2014 $ 3,384 Sales (1,822 ) Impairment (47 ) Realized gain 1,383 Unrealized gain (145 ) Balance as of December 31, 2015 $ 2,753 Fair Value of Long-Term Debt Obligations As further discussed in Note 13. "Long-Term Debt Obligations," are not measured at fair value on a recurring basis and are carried at amortized cost. The Company believes the fair value of the Term Loan approximates its carrying value, or amortized cost, due to the short-term nature of this obligation and the market rates of interest rates they bear. Such inputs are classified as Level 3 of the fair value hierarchy. The fair value of the Company's 4.00% Notes is based on quoted market prices as of the respective balance sheet date and therefore is classified as Level 1 of the fair value hierarchy. As of December 31, 2015 , the fair value of the Company's 4.00% Notes was $186.8 million . |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS Derivative Financial Instruments The Company derives a portion of its revenues in foreign currencies, predominantly in Europe and Japan, as part of its ongoing business operations. In addition, a portion of its assets are held in the nonfunctional currencies of its subsidiaries. The Company enters into foreign currency forward contracts to manage a portion of the volatility related to transactions that are denominated in foreign currencies. The Company's foreign currency forward contracts are entered into for periods consistent with the related underlying exposures and do not constitute positions that are independent of those exposures. The Company is exposed to the risk that the counterparties to its hedges may be unable to meet the terms of these agreements. To mitigate the risk, only contracts with carefully selected highly-rated major financial institutions are entered into. In the event of non-performance by these counterparties, the asset position carrying values of the financial instruments represent the maximum amount of loss that can be incurred; however, no losses as a result of counterparty defaults are expected. The Company does not require and is not required to pledge collateral for these financial instruments. The Company does not enter into foreign currency forward contracts for trading or speculative purposes and is not party to any leveraged derivative instruments. As of December 31, 2015 and 2014 , the total notional values of the Company's derivative assets and liabilities were as follows (in thousands): December 31, 2015 December 31, 2014 Euro $ 18,691 $ 15,982 British pound 4,296 1,784 Japanese yen 2,387 3,391 Total $ 25,374 $ 21,157 The Company recognizes derivative on the accompanying Consolidated Balance Sheets at fair value. The following table shows the Company's derivatives as of December 31, 2015 and 2014 (in thousands): December 31, 2015 December 31, 2014 Balance Sheet Classification Derivative assets: Foreign exchange contracts $ 341 $ 1,258 Prepaid expenses and other current assets Derivative liabilities: Foreign exchange contracts 82 — Accounts payable and accrued liabilities The effective portions of designated cash flow hedges are recorded in OCI until the hedged item is recognized in operations. Derivatives that are not designated as hedging instruments and the ineffective portions of cash flow hedges are adjusted to fair value through operations. Derivative instruments designated as cash flow hedges must be de-designated as hedges when it is probable the forecasted hedged transaction will not occur in the initially identified time period or within a subsequent two-month time period. Deferred gains and losses associated with such derivative instruments are reclassified immediately into operations through Other income, net on the Consolidated Statements of Operations. Any subsequent changes in fair value of such derivative instruments are reflected in Other income, net unless they are re-designated as hedges of other transactions. All derivative assets and liabilities were designated as hedging relationships as of December 31, 2015 and 2014 . The following table shows the effect, net of tax, of the Company's derivative instruments on the accompanying Consolidated Statements of Operations and OCI for the years ended December 31, 2015 , 2014 and 2013 (in thousands): Year ended December 31, 2015 2014 2013 Derivatives in cash flow hedging relationships: Net (loss) gain recognized in OCI, net of tax $ (1,027 ) $ 1,867 $ (796 ) Net gain reclassified from accumulated OCI into Revenue 3,701 1,303 800 Net gain reclassified from accumulated OCI into Other income, net — 55 158 Net gain recognized in Other income, net 130 11 74 Derivatives not designated as hedging relationships: Net gain (loss) recognized in Other income, net — 59 (122 ) As of December 31, 2015 , the Company's existing foreign currency forward exchange contracts mature within 12 months . The deferred amounts related to the Company's derivatives recorded in OCI as of December 31, 2015 and 2014 , and expected to be recognized into earnings over the next 12 months are net gain of $0.1 million and $1.1 million , respectively. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories consist of the following at December 31, 2015 and 2014 (in thousands): December 31, 2015 2014 Raw materials $ 10,525 $ 11,461 Work-in-process 17,756 18,147 Finished goods 28,057 27,024 Total $ 56,338 $ 56,632 Short-term portion $ 54,131 $ 50,676 Long-term portion $ 2,207 $ 5,956 Amortization expense related to the step-up in fair value of eBioscience inventory during the years ended December 31, 2014 and 2013 was approximately $4.7 million and $14.9 million , respectively. The inventory fair value step-up was fully amortized as of June 30, 2014. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment consists of the following as of December 31, 2015 and 2014 (in thousands): December 31, 2015 2014 Property and equipment: Construction-in-progress (1) $ 2,433 $ 3,589 Equipment and furniture 133,215 124,789 Building and leasehold improvements 46,222 48,610 181,870 176,988 Less: accumulated depreciation and amortization (160,870 ) (158,901 ) Net property and equipment $ 21,000 $ 18,087 (1) Includes assets received but not yet in service. For the years ended December 31, 2015 , 2014 and 2013 , the Company recognized depreciation expense of $7.0 million , $8.5 million and $13.8 million , respectively. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS The gross carrying amounts and net book values of the Company's intangible assets are as follows (in thousands): Carrying Value, Gross Accumulated Amortization Intangible Assets, Net Weighted December 31, 2014 (Decrease)/Increase (1) December 31, 2015 December 31, 2014 (Increase)/Decrease (2) December 31, 2015 December 31, 2014 December 31, 2015 Average Useful Life Customer relationships $ 75,229 $ (1,006 ) $ 74,223 $ (27,301 ) $ (4,551 ) $ (31,852 ) $ 47,928 $ 42,371 11 years Developed technologies 75,194 (1,856 ) 73,338 (29,367 ) (4,592 ) (33,959 ) 45,827 39,379 10 years Trademarks and tradenames 17,793 (30 ) 17,763 (9,778 ) (3,365 ) (13,143 ) 8,015 4,620 5 years Other contractual agreements 2,978 (89 ) 2,889 (2,978 ) 89 (2,889 ) — — 2 years Licenses 81,762 546 82,308 (77,349 ) (931 ) (78,280 ) 4,413 4,028 14 years Total intangible assets subject to amortization 252,956 (2,435 ) 250,521 (146,773 ) (13,350 ) (160,123 ) 106,183 90,398 In-process research and development — 12,000 12,000 — — — — 12,000 N.A. Total intangible assets, net $ 252,956 $ 9,565 $ 262,521 $ (146,773 ) $ (13,350 ) $ (160,123 ) $ 106,183 $ 102,398 (1) Includes additions in connection with the Acquisition in 2015 and a decrease in carrying value of $3.9 million related to foreign currency translation. (2) The impact of foreign currency translation on accumulated amortization was a decrease of $1.0 million . The expected future annual amortization expense of the Company's intangible assets is as follows (in thousands): Amortization For the Year Ending December 31, Expense 2016 $ 13,433 2017 11,764 2018 10,189 2019 10,179 2020 10,179 Thereafter 34,654 Total $ 90,398 The Company recognized goodwill of $2.6 million and $157.1 million in connection with the Acquisition in 2015 and the eBioscience acquisition in 2012, respectively. Information in regards to changes in the Company's goodwill as of December 31, 2015 is as follows (in thousands): Balance at December 31, 2014 $ 156,178 Goodwill from acquisition 2,559 Effects of foreign currency change (4,198 ) Balance at December 31, 2015 $ 154,539 During the year ended December 31, 2015 , the Company concluded that there were no indicators of impairment during its annual impairment test of goodwill and the balance as of December 31, 2015 is expected to be recoverable. |
ACCOUNTS PAYABLE AND ACCRUED LI
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued liabilities as of December 31, 2015 and 2014 consist of the following (in thousands): December 31, 2015 2014 Accounts payable $ 10,904 $ 10,832 Accrued compensation and related liabilities 29,975 27,655 Accrued interest 102 111 Accrued taxes 4,574 5,725 Accrued legal 596 490 Accrued audit 750 343 Accrued warranties 1,243 913 Accrued royalties 2,527 2,600 Other 5,366 4,394 Total $ 56,037 $ 53,063 |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS | COMMITMENTS Operating Leases The Company leases laboratory, office and manufacturing facilities under non-cancelable operating leases that expire at various times through 2023. Some of these leases contain renewal options ranging from two to five years and escalation clauses. Rent expense related to operating leases for the years ended December 31, 2015 , 2014 and 2013 was approximately $10.3 million , $10.1 million , and $10.6 million , respectively. In connection with some of these facility leases, the Company has made security deposits totaling $1.4 million , which are included in other long-term assets in the accompanying Consolidated Balance Sheets. Future minimum lease obligations, net of sublease income, at December 31, 2015 under all non-cancelable operating leases are as follows (in thousands): For the Year Ending December 31, Amount 2016 $ 9,435 2017 9,877 2018 8,948 2019 9,017 2020 9,223 Thereafter 20,073 Total $ 66,573 No sublease income is expected for the year ended December 31, 2015 and thereafter. Non-Cancelable Supply Agreements As of December 31, 2015 , the Company had approximately $11.0 million of non-cancelable inventory supply agreements that are in effect through 2016. Indemnifications From time to time the Company has entered into indemnification provisions under certain of its agreements with other companies in the ordinary course of business, typically with business partners, customers, and suppliers. Pursuant to these agreements, the Company generally indemnifies, holds harmless, and agrees to reimburse the indemnified parties on a case by case basis for losses suffered or incurred by the indemnified parties in connection with any U.S. patent or other intellectual property infringement claim by any third party with respect to its products. The maximum potential amount of future payments the Company could be required to make under these indemnification provisions is unlimited in some cases. In addition, the Company has entered into indemnification agreements with its officers and directors. The Company has not incurred significant costs to defend lawsuits or settle claims related to these indemnification provisions. As of December 31, 2015 , the Company had not accrued a liability for this guarantee, because the likelihood of incurring a payment obligation in connection with this guarantee is remote. |
WARRANTIES
WARRANTIES | 12 Months Ended |
Dec. 31, 2015 | |
Product Warranties Disclosures [Abstract] | |
WARRANTIES | WARRANTIES The Company provides for anticipated warranty costs at the time the associated revenue is recognized. Product warranty costs are estimated based upon the Company's historical experience and the warranty period. The Company periodically reviews the adequacy of its warranty reserve and adjusts, if necessary, the warranty percentage and accrual based on actual experience and estimated costs to be incurred. Information regarding changes in the Company's product warranty liability for the years ended December 31, 2015 and 2014 is as follows (in thousands): Amount Balance as of December 31, 2013 $ 1,697 Additions charged to cost of product sales 623 Repairs and replacements (1,225 ) Adjustments (183 ) Balance as of December 31, 2014 $ 912 Additions charged to cost of product sales 1,603 Repairs and replacements (1,272 ) Balance as of December 31, 2015 $ 1,243 |
LONG-TERM DEBT OBLIGATIONS
LONG-TERM DEBT OBLIGATIONS | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT OBLIGATIONS | LONG-TERM DEBT OBLIGATIONS The following table summarizes the carrying amount of the Company's borrowings (in thousands): December 31, 2015 December 31, 2014 Senior credit facility $ 19,088 $ — Term loan — 22,950 Convertible notes 105,000 105,000 Total debt 124,088 127,950 Less: current portion of long-term debt 4,000 4,000 Total long-term debt $ 120,088 $ 123,950 Term Loan and Revolving Credit Facility On June 25, 2012, in conjunction with the acquisition of eBioscience, Inc., the Company entered into a five -year $100.0 million Senior Credit Facility credit agreement (the "Credit Agreement"). The Credit Agreement provided for a Term Loan in an aggregate principal amount of $85.0 million and a revolving credit facility in an aggregate principal amount of $15.0 million . On October 17, 2013 the Compa ny refinanced its Senior Secured Credit Facility and entered into the Fourth Amendment to Credit Agreement (the "Fourth Amendment"). The Fourth Amendment provided, among other things, for a term loan in the aggregate principal amount of $38.0 million and revolving loan commitments in the aggregate principal amount of $10.0 million , each with a term of five years. The Company borrowed a total of $38.0 million under the Term Loan and $10.0 million under the revolving loan upon refinancing. On July 28, 2014, the Company entered into the Fifth Amendment to Credit Agreement (the "Fifth Amendment" and the Credit Agreement as so amended, the "Amended Credit Agreement"). The Fifth Amendment provided, among other things, for (1) an uncommitted incremental term loan facility in an aggregate amount not to exceed $50.0 million and (2) the reduction of interest rate margins. At the option of the Company (subject to certain limitations), borrowings under the Fourth Amendment bore interest at either a base rate or at the London Interbank Offered Rate ("LIBOR"), plus, in each case, an applicable margin. Under the Base Rate Option, interest was at the base rate plus 1.50% to 1.75% dependent on the senior leverage ratio then in effect calculated on the basis of the actual number of days elapsed in a year of 365 or 366 days (as applicable) and payable quarterly in arrears. The base rate was equal to the greatest of (a) the rate last quoted by The Wall Street Journal (or another national publication described in the Fourth Amendment) as the U.S. "Prime Rate", (b) the federal funds rate, plus 0.50% per annum, and (c) LIBOR for an interest period of one month plus, 1.00% per annum. Under the LIBOR Option, interest was determined based on interest periods to be selected by Affymetrix of one , two , three or six months (and, to the extent available to all relevant lenders, nine or 12 months) and was equal to LIBOR plus 2.50% to 2.75% dependent on the senior leverage ratio then in effect, calculated based on the actual number of days elapsed in a 360-day year. Interest was paid at the end of each interest period or in the case of interest periods longer than three months, quarterly. The loans and other obligations under the Senior Secured Credit Facility were (i) guaranteed by substantially all of the Company's domestic subsidiaries (subject to certain exceptions and limitations) and (ii) secured by substantially all of the assets of the Company and each guarantor (subject to certain exceptions and limitations). The Amended Credit Amendment required the Company to maintain an interest coverage ratio of at least 3.5 to 1.0 and a senior leverage ratio not exceeding initially 1.75 to 1.00 and stepping down to 1.20 to 1.00. The Amended Credit Agreement also included other covenants, including negative covenants that, subject to certain exceptions, limit the Company, and that of certain of its subsidiaries’, ability to, among other things: (i) incur additional debt, including guarantees by the Company or its subsidiaries, (ii) make investments, pay dividends on capital stock, redeem or repurchase capital stock, redeem or repurchase the Company’s senior convertible notes or any subordinated obligations, (iii) create liens and negative pledges, (iv) make capital expenditures, (v) dispose of assets, (vi) make acquisitions, (vii) create or permit restrictions on the ability of the Company's subsidiaries to pay dividends or make distributions to the Company, (viii) engage in transactions with affiliates, (ix) engage in sale and leaseback transactions, (x) consolidate or merge with or into other companies or sell all or substantially all the Company’s assets and (xi) change their nature of business, their organizational documents or their accounting policies. The Company was required to make the following mandatory prepayments: (a) annual prepayments in an amount equal to 50% of excess cash flow (as defined in the Credit Agreement), subject to a leverage-based step down, (b) prepayments in an amount equal to 100% of the net cash proceeds of issuances or incurrences of debt obligations of Affymetrix and its subsidiaries (other than debt incurrences expressly permitted by the Credit Agreement), (c) prepayments in an amount equal to 100% of the net proceeds of asset sales in excess of $2.5 million annually (subject to certain reinvestment rights) and (d) prepayments in an amount equal to any indemnification payments or similar payments received under the Acquisition Agreement, subject to certain exclusions. The Amended Credit Agreement also contained events of default, including payment defaults, breaches of representations and warranties, covenant defaults, cross-default and cross-acceleration to other indebtedness in excess of specified amounts, monetary judgment defaults in excess of specified amounts, bankruptcy or insolvency, actual or asserted invalidity or impairment of any part of the credit documentation (including the failure of any lien on a material portion of the collateral to remain perfected) and change of ownership or control defaults. In addition, the occurrence of a "fundamental change" under the indenture governing the 4.00% Notes would be an event of default under the Credit Agreement. As of December 31, 2014, the Company was in compliance with the covenants. The proceeds received on June 25, 2012 from the original Term Loan were net of debt issuance costs of approximately $4.5 million that were being amortized over the 5 -year term of the Senior Secured Credit Facility. Following the refinance under the Fourth Amendment, the Company wrote off unamortized debt issuance costs of $2.5 million associated with the original Term Loan, and received proceeds on October 17, 2013 from the new Term Loan and Revolver, net of debt issuance costs of approximately $0.8 million that amortize on the effective interest rate method beginning October 17, 2013. Quarterly, principal payments were made under the Term Loan, which amortized such that 10% of the outstanding principal was due during the first four years and the remaining 60% is due in the fifth year, including any remaining principal balance and any outstanding revolver balance at such time. The Company incurred $0.9 million and $1.6 million in interest expense under the Senior Secured Credit Facility for the years ended December 31, 2015 and 2014 , respectively. On October 28, 2015 , the Company paid off the Term Loan entirely in connection with the execution of the Senior Credit Facility Agreement discussed below. Senior Credit Facility On October 28, 2015 , the Company entered into a five year $100.0 million Senior Credit Facility Agreement and terminated and paid off the Senior Secured Credit Facility with the draw down. The Senior Credit Facility Agreement provides for a Senior Credit Facility in an aggregate amount of $100.0 million of revolving commitments and an accordion feature permitting the Company to request an increase in the revolving commitments or term loan commitments by an additional amount of up to $50.0 million in the aggregate. At the option of the Company (subject to certain limitations), borrowings under the Senior Credit Facility Agreement bear interest at either the Base Rate or LIBOR, plus in each case an applicable margin. Under the Base Rate option, interest will be at the Base Rate plus 0.50% to 1.00% depending on the consolidated leverage ratio then in effect. The Base Rate will be equal to the highest of (a) the Federal Funds Rate plus 0.50% , (b) the rate of interest in effect for such day as publicly announced from time to time by Bank of America as its “prime rate,” and (c) the Eurodollar Rate plus 1.00% ; and if the Base Rate shall be less than zero, such rate shall be deemed zero for purposes of the Senior Credit Facility Agreement. Under the LIBOR option, interest will be determined based upon interest periods selected by the Company of one, two, three, or six months (or if available to all Lenders, twelve months) and will be equal to LIBOR plus 1.50% to 2.00% depending on the consolidated leverage ratio then in effect. Interest will be paid at the end of each LIBOR interest period or in the case of interest periods longer than three months and in the case of Base Rate loans, quarterly. As of December 31, 2015 , the applicable interest rate was approximately 2.07% . The loans and other obligations under the Senior Credit Facility are (i) guaranteed by substantially all of the Company’s domestic subsidiaries (subject to certain exceptions and limitations) and (ii) secured by substantially all of the assets of the Company and each guarantor (subject to certain exceptions and limitations). The Senior Credit Facility Agreement requires the Company to maintain an interest coverage ratio of at least 3.50 to 1.00 and a consolidated leverage ratio not exceeding initially 3.50 to 1.00 and stepping down to 2.75 to 1.00. The Senior Credit Facility Agreement also includes other covenants, including negative covenants that, subject to certain exceptions, limit the Company, and that of certain of its subsidiaries’, ability to, among other things: (i) incur additional debt, including guarantees by the Company or its subsidiaries, (ii) make investments, pay dividends on capital stock or repay subordinated or convertible indebtedness, (iii) create liens and negative pledges, (iv) dispose of assets, (v) make acquisitions, (vi) create or permit restrictions on the ability of the Company's subsidiaries to pay dividends or make distributions to the Company, (vii) engage in transactions with affiliates, (viii) engage in sale and leaseback transactions, (ix) consolidate or merge with or into other companies or sell all or substantially all the Company’s assets and (x) change their nature of business, their organizational documents or their accounting policies. The Company is required to make mandatory prepayments immediately if for any reason the dollar equivalent amount of all outstanding exposure exceeds 105% of the aggregate commitments in the amount of such excess over the aggregate commitments. The Senior Credit Facility Agreement also contains events of default, including payment defaults, breaches of representations and warranties, covenant defaults, cross-default and monetary judgment defaults in excess of specified amounts, customary ERISA defaults in excess of specified amounts, bankruptcy or insolvency, actual or asserted invalidity or impairment of any material provision of the credit documentation (including the failure of any lien on a material portion of the collateral to remain perfected) and change of control defaults. In addition, the occurrence of a “fundamental change” under the indenture governing the 4.00% Convertible Notes would be an event of default under the Senior Credit Facility Agreement. As of December 31, 2015, the Company was in compliance with the covenants. Following the execution of the Senior Credit Facility Agreement, the Company received proceeds in the amount of $20.0 million on October 28, 2015 , net of debt discount of approximately $0.1 million that amortizes on the effective interest rate method beginning October 28, 2015 over the 5 -year term of the Senior Credit Facility. The Company also recorded debt issuance costs of approximately $0.2 million that amortize on the effective interest rate method beginning October 28, 2015 over the 5-year term of the Senior Credit Facility. The proceeds were utilized to repay the existing Term Loan. The Company wrote off unamortized debt issuance costs of $0.7 million associated with the Term Loan in October 2015 accordingly. The Company incurred $0.1 million in interest expense under the Senior Credit Facility for the year ended December 31, 2015 . The principal amount of unpaid maturities per the Senior Credit Facility Agreement is as follows (in thousands): For the Year Ending December 31, 2016 $ — 2017 — 2018 — 2019 — 2020 19,088 Total $ 19,088 The Company intends to continue making quarterly payments during 2016 and classified $4.0 million as current on the accompanying Consolidated Balance Sheet as of December 31, 2015 . 4.00% Convertible Senior Notes On June 25, 2012, the Company issued $105.0 million principal amount of 4.00% Convertible Senior Notes ("4.00% Notes") due July 1, 2019. The net proceeds, after debt issuance costs totaling $3.9 million from the 4.00% Notes offering, were $101.1 million . The 4.00% Notes bear interest of 4.00% per year payable semi-annually in arrears on January 1 and July 1 of each year, beginning on January 1, 2013 until the maturity date of July 1, 2019, unless converted, redeemed or repurchased earlier. The debt issuance costs are being amortized over the effective life of the 4.00% Notes, which is 7 years . Holders of the 4.00% Notes may convert their 4.00% Notes into shares of the Company's stock at their option any time prior to the close of business on the business day immediately preceding the maturity date. The 4.00% Notes are initially convertible into approximately 170.0319 shares of the Company's common stock per $1,000 principal amount of notes, which equates to 17,857,143 shares of common stock, or an initial conversion price of $5.88 per share of common stock. The conversion rate is subject to certain customary anti-dilution adjustments. In addition, following certain corporate events that occur prior to the maturity date, the Company will increase the conversion rate for a holder who elects to convert its notes in connection with such a corporate event in certain circumstances. Holders may also require the Company to repurchase for cash their notes upon certain fundamental changes. On or after July 1, 2017, the Company can redeem for cash all or part of the 4.00% Notes if the last reported sale price per share of the Company's common stock has been at least 130% of the conversion price then in effect for at least 20 trading days during any 30 consecutive trading day period ending within 5 trading days prior to the date on which the Company provides notice of redemption. The redemption price will be equal to 100% of the principal amount of the 4.00% Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. If the Company calls the 4.00% Notes for redemption, a holder of notes may convert its notes only until the close of business on the scheduled trading day immediately preceding the redemption date unless the Company fails to pay the redemption price (in which case a holder of notes may convert such notes until the redemption price has been paid or duly provided for). As of December 31, 2015 , the outstanding balance on the 4.00% Notes was $105.0 million . Interest incurred was $4.8 million for each of the years ended December 31, 2015 , 2014 and 2013. |
STOCKHOLDERS' EQUITY AND SHARE-
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION EXPENSE | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders Equity And Share Based Compensation Expense [Abstract] | |
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION EXPENSE | STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION EXPENSE Convertible Preferred Stock The Company's Board of Directors has authorized 5.0 million shares of convertible preferred stock, $0.01 par value. At December 31, 2015 and 2014 , there were no such shares issued or outstanding. At the Market Offering On November 18, 2014, we entered into a sales agreement with Cantor Fitzgerald to offer shares of our common stock, $0.01 par value per share, from time to time through Cantor Fitzgerald, as the Company’s sales agent for the offer and sale of the shares. The Company was able to offer and sell shares for an aggregate offering price of up to $50.0 million . The Company paid a commission equal to 3% of the gross proceeds from the sale of shares of its common stock under the sales agreement. The Company intended to use the net proceeds from this offering for general corporate purposes, including capital expenditures, debt repayments and working capital. The Company also had the option to use a portion of the net proceeds from this offering to acquire or invest in complementary businesses, technologies, product candidates or other intellectual property, although there are no present commitments or agreements to do so. The Company was not obligated to make any sales of shares of common stock under the sales agreement and are prohibited from doing so pursuant to the terms of the Merger Agreement. In 2015, the Company sold a total of 3.8 million shares of common stock at an average price of $12.05 through its "at-the-market" offering, for total net proceeds of $44.7 million . Share-based Compensation Plans The Company has a share-based compensation program that provides the Board of Directors broad discretion in creating equity incentives for employees, officers, directors and consultants. This program includes incentive and non-qualified stock options and restricted stock, granted under various stock plans. Stock options are issued at a price of at least 100% of the fair value of the Company's common stock on the date of grant ( 110% in certain circumstances), as determined by the Board of Directors. Options generally expire 7 to 10 years from the grant date and may be granted with different vesting terms from time to time as determined by the Board of Directors, usually over a period of four years on each anniversary of the grant date. In general, restricted stock vest on an annual basis over a period of three to four years on each anniversary of the grant date, are subject to the employees' continued employment and are paid upon vesting in shares of the Company's common stock on a one -for-one basis. As of December 31, 2015 , the Company had approximately 5.2 million shares of common stock reserved for future issuance under its share-based compensation plans. A more detailed description of the Company's current share-based compensation plans follows below: In 1998, the Board of Directors adopted the Affymetrix 1998 Stock Incentive Plan (the "1998 Stock Plan") under which nonqualified stock options and restricted stock may be granted to employees and outside consultants, except that members of the Board of Directors and individuals who are considered officers of the Company under the rules of the National Association of Securities Dealers shall not be eligible. Options granted under the 1998 Stock Plan expire no later than ten years from the date of grant. A total of 3.6 million shares of common stock are authorized for issuance under the 1998 Stock Plan. In 2000, the Board of Directors adopted the Amended and Restated 2000 Equity Incentive Plan (the "2000 Stock Plan"), which was amended and restated in 2001, under which restricted stock, stock options, and stock appreciation rights may be granted to employees, outside directors and consultants. In the second quarter of 2010, 4.5 million shares of common stock were added under the 2000 Stock Plan bringing the total shares of common stock authorized for issuance under the 2000 Stock Plan to 16.2 million . In June 2012, the Board of Directors adopted the 2012 Inducement Plan (the "2012 Inducement Plan"), under which restricted stock, stock options, and stock appreciation rights may be granted to employees. A total of 2.0 million shares of common stock are authorized for issuance under the 2012 Inducement Plan. The following table sets forth the share-based compensation expense included in the accompanying Consolidated Statements of Operations (in thousands): Year Ended December 31, 2015 2014 2013 Costs of product sales $ 2,620 $ 2,500 $ 1,002 Research and development 1,951 2,266 1,331 Selling, general and administrative 10,414 7,645 5,394 Total share-based compensation expense $ 14,985 $ 12,411 $ 7,727 As of December 31, 2015 , $18.4 million of total unrecognized share-based compensation expense related to non-vested awards is expected to be recognized over the respective vesting terms of each award through 2018. The weighted‑average term of the unrecognized share-based compensation expense are 2.1 years for stock options and 2.2 years for restricted stock. Stock Options The fair value of options was estimated at the respective dates of grant using the BSM option pricing model with the following weighted‑average assumptions: Year Ended December 31, 2015 2014 2013 Risk free interest rate 1.4 % 1.6 % 1.0 % Expected dividend yield — % — % — % Expected volatility 58 % 72 % 68 % Expected option term (in years) 4.6 4.6 4.6 The risk free interest rate for periods within the contractual life of the Company's stock options is based on the U.S. Treasury yield curve in effect at the time of grant. The expected term is derived from an analysis of the Company's historical exercise trends over ten years . The expected volatility for the years ended December 31, 2015 , 2014 and 2013 is based on a blend of historical and market‑based implied volatility. Using the assumptions above, the weighted‑average grant date fair value of options granted during the years ended December 31, 2015 , 2014 and 2013 was $5.31 , $4.59 and $2.42 per option, respectively. Activity under the Company's stock plans for the year ended December 31, 2015 is as follows (in thousands, except per share amounts): Shares Weighted-Average Exercise Price Per Share Weighted-Average Remaining Contractual Terms Aggregate Intrinsic Value (in years) (in thousands) Outstanding at December 31, 2014 4,195 $ 6.23 Grants 504 11.00 Exercises (1,138 ) 7.24 Forfeitures or expirations (156 ) 9.36 Outstanding at December 31, 2015 3,405 $ 6.46 3.61 $ 13,662 Exercisable at December 31, 2015 2,091 $ 5.65 2.58 $ 9,995 Vested and expected to vest at December 31, 2015 3,178 $ 6.31 3.47 $ 13,184 The following table summarizes information concerning currently outstanding and exercisable options at December 31, 2015 : Range of Exercise Prices Options Outstanding Options Exercisable Weighted-Average Weighted-Average Weighted-Average Remaining Exercise Price Exercise Price Lower Upper Number Contractual Life Per Share Number Per Share (in thousands) (in years) (in thousands) $ 2.93 $ 3.91 904 3.53 $ 3.72 574 $ 3.68 $ 4.16 $ 5.07 709 2.43 $ 4.45 642 $ 4.46 $ 5.21 $ 7.55 857 3.37 $ 6.48 573 $ 6.22 $ 7.62 $ 11.88 834 4.83 $ 9.62 266 $ 8.27 $ 12.24 $ 36.16 101 4.44 $ 18.56 36 $ 29.96 Total 3,405 3.61 $ 6.46 2,091 $ 5.65 The aggregate intrinsic value in the table above represents the total pretax intrinsic value (i.e., the difference between the Company's closing stock price on the last trading day of its fourth quarter of 2015 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on December 31, 2015 . The aggregate intrinsic value changes based on the fair market value of the Company's common stock. For the years ended December 31, 2015 , 2014 and 2013 , total intrinsic value of options exercised was $5.1 million , $2.8 million and $0.8 million , respectively. Reserved Shares At December 31, 2015 , the Company has shares reserved for future issuance as follows (in thousands): Options outstanding 3,405 Options available for future grants 5,189 Convertible notes 17,857 Total at December 31, 2015 26,451 Restricted Stock The following tables summarize the Company's restricted stock activity for the year ended December 31, 2015 (in thousands, except per share amounts): Number of Shares Weighted-Average Grant Date Fair Value per Share Restricted stock units Outstanding at December 31, 2014 2,395 $ 6.30 Granted 1,396 10.04 Vested (1,000 ) 6.03 Forfeited (265 ) 7.39 Outstanding at December 31, 2015 2,526 $ 8.36 For the years ended December 31, 2015 and 2014 , total fair value of restricted stock vested was $6.0 million and $5.9 million , respectively. Performance-Based Restricted Stock The Company's share-based awards program includes performance-based restricted stock awards that reference performance criteria. 2011 CEO grants In 2011, the Compensation Committee of the Company's Board of Directors approved a grant of performance-based restricted stock units ("PRSUs") under the Plan to the Company's Chief Executive Officer ("CEO") that is earned annually in four equal tranches based on his performance in the applicable fiscal year (the "Performance Period"). The PRSUs entitle the CEO to receive a certain number of shares of the Company's common stock based on the Company's satisfaction of certain financial and strategic performance goals as set and approved by the Board of Directors annually during the first quarter of the Company's fiscal year. Based on the achievement of the performance conditions during each Performance Period, the final settlement of the PRSU award will vest twelve months following the end of each Performance Period. The PRSU award will be forfeited if the performance goals are not met or if the executive officer is no longer employed at the vest date. The number of shares underlying the PRSUs that were granted to the CEO during 2011 totaled 240,000 of which (i) 60,000 PRSUs relating to the Performance Period ended December 31, 2011 and with a grant date fair value of $6.71 per PRSU vested at December 31, 2012; (ii) 25,000 PRSUs relating to the Performance Period ended December 31, 2012 and with a grant date fair value of $4.63 per PRSU vested at December 31, 2013; (iii) 42,000 PRSUs relating to the Performance Period ended December 31, 2013 and with a grant date fair value of $4.67 per PRSU vested at December 31, 2014; (iv) 27,000 PRSUs relating to the Performance Period ended December 31, 2014 and with a grant date fair value of $7.22 per PRSU vested at December 31, 2015 . 2013 Program During the first quarter of 2013, the Compensation Committee granted certain PRSUs following the most recent restructuring referred to as the 2013 Program. The purpose of the 2013 Program was to retain key employees. The measurement period for the 2013 Program was the twelve month period ended December 31, 2013 and the awards granted under the 2013 Program were granted in the form of performance shares pursuant to the terms of our 2000 Plan. Dependent on the level of achievement of pre-determined financial performance goals, shares of stock would vest in equal installments over two or four years. The level of achievement of financial performance was assessed during the first quarter of 2014 after which the shares of stock were issued to the participants, contingent upon the recipient’s continued service to the Company. In 2013, the Company awarded 340,000 PRSUs under the 2013 Program at a grant date fair value of $3.84 per PRSU of which (i) 104,500 PRSUs relating to the twelve month period ended December 31, 2013 vested at February 25, 2014; (ii) 75,000 PRSUs relating to the twelve months period ended December 31, 2014 vested on February 25, 2015. The Company expects 25,000 PRSUs will vest with the fair value of these PRSUs being amortized on a straight-line basis over the related service period. The total compensation cost related to 2013 Program PRSUs granted but not yet recognized was less than $0.1 million as of December 31, 2015 . 2014 Program During the first quarter of 2014, the Compensation Committee granted certain PRSUs associated with performance criteria referred to as the 2014 Program. The purpose of the 2014 Program was to retain key employees. The measurement period for the 2014 Program was the twelve month period ended December 31, 2015 and the awards granted under the 2014 Program were granted in the form of performance shares pursuant to the terms of our 2000 Plan. Dependent on the level of achievement of pre-determined financial performance goals, shares of stock would vest in equal installments over two or four years. The level of achievement of 2014 financial performance was assessed during the first quarter of 2015 after which the shares of stock were issued to the participants, contingent upon the recipient’s continued service to the Company. In 2014, the Company awarded 564,100 PRSUs under the 2014 Program at a grant date fair value of $7.71 per PRSU of which 251,800 PRSUs relating to the twelve month period ended December 31, 2014 vested at February 13, 2015. The Company expects 241,600 PRSUs will vest with the fair value of these PRSUs being amortized on a straight-line basis over the related service period. The total compensation cost related to 2014 Program PRSUs granted but not yet recognized was approximately $0.1 million as of December 31, 2015 . 2015 Program During the first quarter of 2015, the Compensation Committee granted certain PRSUs associated with performance criteria referred to as the 2015 Program. The purpose of the 2015 Program is to retain key employees. The measurement period for the 2015 Program is the twelve month period ending December 31, 2015 and the awards granted under the 2015 Program were granted in the form of performance shares pursuant to the terms of our 2000 Plan. Based on the achievement of the performance conditions, shares of stock would vest in equal installments over three years. The level of achievement of 2015 financial performance will be assessed during the first quarter of 2016 after which the shares of stock will be issued to the participants, contingent upon the recipient’s continued service to the Company. In 2015, the Company awarded 243,000 PRSUs under the 2015 Program at a grant date fair value of $11.88 per PRSU and expects 243,000 PRSUs will vest with the fair value of these PRSUs being amortized on a straight-line basis over the related service period. The total compensation cost related to 2015 Program PRSUs granted but not yet recognized was approximately $0.9 million as of December 31, 2015 . 2015 CEO Grants During the second quarter of 2015, the Board of Directors approved a grant of PRSUs associated with performance criteria to the Company's Chief Executive Officer ("CEO") referred to as the 2015 CEO Grant. The measurement period for the 2015 CEO Grant is the twelve month period ending December 31, 2017 and the awards granted under the 2015 CEO Grant were granted in the form of performance shares pursuant to the terms of our 2000 Plan. The 2015 CEO Grant entitles the CEO to receive a certain number of shares of the Company's common stock based on the Company's satisfaction of certain financial performance goals as set and approved by the Board of Directors during the second quarter of 2015. Based on the achievement of the performance conditions during the Performance Period, the final settlement of the PRSU award will vest in February 2018 . The level of achievement of 2017 financial performance will be assessed during the first quarter of 2018. The PRSU award will be forfeited if the performance goals are not met or if the CEO is no longer employed at the vest date. The Company awarded 156,023 PRSUs under the 2015 CEO Grant at a grant date fair value of $12.37 per PRSU and expects 156,023 PRSUs will vest with the fair value of these PRSUs being amortized on a straight-line basis over the related service period. The total compensation cost related to 2015 CEO Grants PRSUs granted but not yet recognized was approximately $1.1 million as of December 31, 2015 . The following table summarizes the Company's PRSU activity for the year ended December 31, 2015 (in thousands, except per share amounts): Number of Shares Weighted-Average Grant Date Fair Value per PRSU Performance based restricted stock awards Outstanding at December 31, 2014 723 $ 6.83 Granted 399 12.07 Vested (354 ) 6.85 Forfeited (65 ) 6.38 Outstanding at December 31, 2015 703 $ 9.84 For the years ended December 31, 2015 and 2014 , the total fair value of PRSUs vested was $2.4 million and $1.6 million , respectively. The total compensation cost related to all PRSUs granted but not yet recognized was approximately $2.0 million as of December 31, 2015 which will be recognized over the next 4 years . Changes in the Company’s assessment of the probability of achievement of performance criteria could have a material effect on the results of operations in future periods. There were no material changes in estimate related to the probability of vesting or recognition of expense related to PRSUs during either of the periods ended December 31, 2015 , 2014 or 2013. Employee Stock Purchase Plan In August 2011, the Company's Board of Directors adopted the 2011 Employee Stock Purchase Plan ("ESPP") that was approved by the Company's stockholders on May 11, 2012. A total of 7.0 million shares of the Company's common stock are reserved for issuance under the ESPP, which permits eligible employees to purchase common stock at a discount through payroll deductions. The price at which stock is purchased under the ESPP is equal to 85% of the fair market value of the common stock on the first day of the offering period or the last day of the purchase period, whichever is lower. The offering periods are twelve months and include two six month purchase periods that result in a look-back for determining the purchase price of up to 12 months . Employees can invest up to 15% of their gross compensation through payroll deductions. In no event would an employee be permitted to purchase more than 750 shares of common stock during any six -month purchase period. The initial offering period commenced in November 2011. As of December 31, 2015 , there were 485 participants in the ESPP and approximately 0.4 million shares were issued under the ESPP during 2015 at an average subscription date fair value of $7.24 per share. Included in total share-based compensation expense for the years ended December 31, 2015 , 2014 and 2013 was $1.5 million , $1.8 million and $0.7 million , respectively, related to the ESPP. During the years ended December 31, 2015 and 2014 , the fair value of shares issued under the ESPP was estimated using the following assumptions: 2015 2014 Risk free interest rate 0.23 % 0.07 % Expected dividend yield — % — % Expected volatility 58 % 72 % Expected term (in years) 0.74 0.75 |
LEGAL PROCEEDINGS
LEGAL PROCEEDINGS | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
LEGAL PROCEEDINGS | LEGAL PROCEEDINGS The Company has been in the past, and continues to be, a party to litigation, which has consumed, and may continue to consume, substantial financial and managerial resources. The Company could incur substantial costs and divert the attention of management and technical personnel in defending against litigation, and any adverse ruling or perception of an adverse ruling could have a material adverse impact on the Company’s stock price. In addition, any adverse ruling could have a material adverse impact on the Company’s cash flows and financial condition. The results of any litigation or any other legal proceedings are uncertain and as of the date of this report, the Company has not accrued any liability with respect to any of the litigation matters listed below: Enzo Litigation Southern District of New York Case : On October 28, 2003, Enzo Life Sciences, Inc., a wholly-owned subsidiary of Enzo Biochem, Inc. (collectively "Enzo"), filed a complaint against the Company that is pending in the United States District Court for the Southern District of New York for breach of contract, injunctive relief and declaratory judgment. The Enzo complaint relates to a 1998 distributorship agreement with Enzo under which the Company served as a non-exclusive distributor of certain reagent labeling kits supplied by Enzo. On November 10, 2003, the Company filed a complaint against Enzo in the United States District Court for the Southern District of New York for declaratory judgment, breach of contract and injunctive relief relating to the 1998 agreement. On April 22, 2014, the Company entered into a settlement agreement with Enzo with respect to these two lawsuits. Pursuant to the agreement the Company agreed to pay Enzo $5.1 million and recognized a litigation settlement charge during the first three months of 2014. The settlement agreement does not include the Delaware Case described below. Delaware Case : On April 6, 2012, Enzo filed a complaint against the Company in the United States District Court for the District of Delaware. In the complaint, plaintiff alleges that Affymetrix is infringing U.S. Patent No. 7,064,197 by making and selling certain GeneChip products. The plaintiff seeks a preliminary and permanent injunction enjoining the Company from further infringement and unspecified monetary damages. On October 9, 2015, the Company entered into a settlement agreement with Enzo with respect to this lawsuit. Pursuant to the agreement, the Company agreed to pay Enzo $10.0 million . The Company evaluated the transaction as a multiple-element arrangement and allocated the one-time payment to each identifiable element using its relative fair value. Based on these estimates of fair value, the Company determined that the primary benefit of the arrangement is avoided litigation cost and the release of any potential past claims, with no material value attributable to future use or benefit. Accordingly, the Company recorded the litigation settlement charge within the results of operations in the year ended December 31, 2015 . Litigation Related to the Merger Between January 19, 2016 and January 27, 2016, four substantially similar putative shareholder class action suits were filed by individual stockholders in the Superior Court of California in Santa Clara County against the Company's directors. The complaints also name Thermo Fisher and Merger Sub as defendants. The cases are captioned Steven Merola v. Affymetrix, Inc., et al., Case No. 16CV290267, Betty Greenberg v. Frank Witney, et al., Case No. 16CV290339, Jeffrey S.L. Cheah v. Affymetrix, Inc., et al., Case No. 16CV290794, and Robert Cox v. Affymetrix, Inc., et al., Case No. 16CV290866. (The Merola, Cheah, and Cox cases also name the Company itself as a defendant.) The complaints allege that the Company's directors breached their fiduciary duties by failing to maximize stockholder value in negotiating and approving the Merger Agreement. The complaints also generally allege that the additional defendants named in each suit aided and abetted these alleged breaches of fiduciary duties. The complaints seek, among other forms of relief, class certification and injunctive relief blocking consummation of the merger. The Company and the other defendants have not yet responded to the complaints. The Company believes these actions are without merit. Administrative Proceedings The Company's intellectual property is subject to a number of significant administrative actions. These proceedings could result in the Company's patent protection being significantly modified or reduced, and the incurrence of significant costs and the consumption of substantial managerial resources. For the years ended December 31, 2015 , 2014 , and 2013 , the Company did not incur significant costs in connection with administrative proceedings. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The following table summarizes the U.S. and foreign components of consolidated income (loss) before income taxes (in thousands): Year Ended December 31, 2015 2014 2013 Income (loss) before income taxes: U.S. $ 11,156 $ (1,992 ) $ (11,240 ) Foreign (310 ) (1,606 ) (3,926 ) Income (loss) before income taxes $ 10,846 $ (3,598 ) $ (15,166 ) The provision for income taxes consisted of the following (in thousands): Year Ended December 31, 2015 2014 2013 Provision for income taxes: Current: Federal $ — $ (151 ) $ — State (261 ) (91 ) (383 ) Foreign 1,456 1,663 2,652 Subtotal 1,195 1,421 2,269 Deferred: Federal $ — — $ (268 ) State — — (21 ) Foreign (462 ) (1,185 ) (819 ) Subtotal (462 ) (1,185 ) (1,108 ) Income tax provision $ 733 $ 236 $ 1,161 The difference between the provision for income taxes and the amount computed by applying the federal statutory income tax rate ( 35% ) to loss before taxes from continuing operations is explained as follows (in thousands): Year Ended December 31, 2015 2014 2013 Tax at federal statutory rate $ 3,796 $ (1,259 ) $ (5,308 ) State taxes, net 1,246 (1,285 ) (1,289 ) Non-deductible stock compensation 1,252 1,065 327 Foreign rate differential 1,078 1,567 3,245 Research credits (741 ) (548 ) (930 ) Change in valuation allowance (6,050 ) 556 4,961 Other 152 140 155 Income tax provision $ 733 $ 236 $ 1,161 During the year ended December 31, 2015 and 2014, the Company recognized a reduction in the valuation allowance recorded against the Company's net deferred tax assets of zero and $0.2 million , respectively, related to net deferred tax liabilities recorded for unrealized gains reflected as other comprehensive income. In accordance with intraperiod tax allocation provisions, the reductions are reported as an element of deferred income tax expense (benefit) attributable to continuing operations. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company's deferred tax assets and liabilities were as follows (in thousands): December 31, 2015 2014 Deferred tax assets: Net operating loss carryforwards $ 49,313 $ 61,308 Tax credit carryforwards 60,524 56,575 Deferred revenue 1,036 1,849 Capitalized research and development costs 497 245 Intangibles 15,380 17,474 Share-based compensation 5,049 4,371 Accrued compensation 5,472 4,625 Accrued warranty 474 347 Inventory reserves 6,501 7,224 Reserves and other 8,239 7,178 Depreciation and amortization 5,202 6,080 Other, net 4,255 9,463 Total deferred tax assets 161,942 176,739 Valuation allowance for deferred tax assets (126,252 ) (137,957 ) Net deferred tax assets 35,690 38,782 Net deferred tax liabilities: Acquired intangible assets (29,587 ) (33,735 ) Acquired tangible assets — (78 ) Cancellation of debt (5,854 ) (7,701 ) Foreign earnings (4,520 ) (2,734 ) Other, net (1,457 ) (1,471 ) Total deferred tax liabilities (41,418 ) (45,719 ) Net deferred tax liabilities $ (5,728 ) $ (6,937 ) Deferred tax assets are recognized if the realization of such assets is more likely than not. As of December 31, 2015 , the Company provided for a valuation allowance of $126.3 million against its net deferred tax assets. Due to the Company’s history of cumulative operating losses, management concluded that after considering all the available objective evidence, it is not more likely than not that all the Company’s net deferred tax assets will be realized. Accordingly, all of the Company's U.S. deferred tax assets continue to be subject to a valuation allowance as of December 31, 2015 . We intend to maintain a valuation allowance for the U.S. and certain foreign jurisdictions until sufficient positive evidence exists to support reversal. Due to improvements in the Company's U.S. operating results over the past three years, management believes a reasonable possibility exists that, in the next 12 to 24 months, sufficient positive evidence may become available to reach a conclusion that a portion of the U.S. valuation allowance will no longer be needed. As of December 31, 2015 , the Company has recorded a full valuation allowance against all U.S. and certain foreign net deferred tax assets. The valuation allowance decrease of $11.7 million in 2015 is primarily attributable to the utilization of net operating loss carryforwards. The valuation allowance increase of $2.3 million in 2014 is primarily attributable to the decrease in deferred tax liabilities for amortization of certain tangible and intangible assets acquired in the Acquisition and cancellation of debt income, offset by a decrease in deferred tax assets due to the utilization of net operating loss carryforwards. Approximately $24.7 million of the valuation allowance as of December 31, 2015 , is attributable to the income tax benefits of share-based compensation, the benefit of which will be credited to stockholders' equity when, and if, realized. Not included in the deferred tax assets as of December 31, 2015 is approximately $10.1 million of tax benefits related to share-based compensation. When, and if, realized the tax benefit of these assets will be accounted for as a credit to stockholders' equity, rather than a reduction of the income tax provision. Of the total tax benefits realized from the share-based compensation, nominal amounts were recorded to stockholders' equity for the years ended December 31, 2015 and 2014, respectively. As of December 31, 2015 , the Company had federal net operating loss carryforwards of $160.3 million which begin to expire in 2022 if not utilized, and federal research and development tax credit carryforwards of approximately $26.7 million , which begin to expire in 2018 if not utilized. The Company also had California net operating loss carryforwards of $77.0 million which begin to expire in 2016 if not utilized, and California research and development tax credit and other tax credit carryforwards of $45.6 million , which can be carried forward indefinitely. As certain of the net operating loss and tax credit carryforwards were generated by entities previously acquired by the Company, they are subject to annual limitations due to the ownership change provision under the Internal Revenue Code Section 382 and similar state provisions. The limitations will not result in significant expirations of the net operating loss or research tax credit carryforwards before utilization. If the Company has an ownership change subsequent to December 31, 2015 , utilization of its net operating loss and tax credit carryforwards may be subject to an annual limitation against taxable income in future periods. The Company provides for U.S. income tax and foreign withholding taxes on the undistributed earnings of foreign subsidiaries unless the earnings are considered indefinitely reinvested outside the U.S. As of December 31, 2015 , the Company has approximately $2.0 million of previously untaxed earnings from its foreign subsidiaries which were indefinitely reinvested outside the U.S. Due to unutilized net operating loss carryforwards, the potential federal and state taxes on these repatriations is nominal. A portion of the Company's operations in Singapore operate under tax holidays and tax incentive programs, which expire by end of 2016 . There was a minimal net impact of these tax holidays and tax incentive programs for the year ended December 31, 2015 . The following table presents the Company's total amount of gross unrecognized tax benefits (in thousands): 2015 2014 2013 Unrecognized tax benefits, beginning of year $ 21,914 $ 22,372 $ 20,413 Additions for tax positions of prior years 4,465 1,025 2,003 Additions for tax positions of current year 2,164 778 718 Decreases for tax positions of prior years (849 ) (1,808 ) (5 ) Settlements (354 ) — — Lapse in statute of limitations (331 ) (453 ) (757 ) Impact of foreign currency, other (85 ) — — Unrecognized tax benefits, end of year $ 26,924 $ 21,914 $ 22,372 As of December 31, 2015 and 2014, if recognized, the amount of unrecognized tax benefits that would impact income tax expense is approximately $4.6 million and $5.0 million , respectively. The Company classifies interest and penalties related to tax positions as components of income tax expense. For the year ended December 31, 2015 , the amount of accrued interest and penalties related to tax uncertainties was approximately $0.1 million for a total cumulative amount included in non-current income taxes payable of approximately $1.2 million as of December 31, 2015 . The Company completed its California examination for the years 2006 through 2009 in 2015 with no additional tax exposure. Given the potential for statute expirations and finalization of current examinations, it is reasonably possible that the amount of unrecognized tax benefits could change in the next 12 months as a result, with an estimated range from zero to approximately $2.5 million . The Company files U.S. federal, state, and foreign income tax returns in jurisdictions with varying statutes of limitations. The Company's major tax jurisdictions are the U.S. federal, California, Singapore, the United Kingdom and Austria. The federal and California statute of limitations on assessments remain open for years after 2011 and 2008 respectively; however adjustments may be made to prior years due to the carryforward of unutilized net operating losses and research credit carryforwards. The major foreign jurisdictions statute of limitations remain open from tax years 2008. |
SEGMENT AND GEOGRAPHIC INFORMAT
SEGMENT AND GEOGRAPHIC INFORMATION | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
SEGMENT AND GEOGRAPHIC INFORMATION | SEGMENT AND GEOGRAPHIC INFORMATION The Company reports segment information on the "management" approach which designates the internal reporting used by management for making decisions and assessing performance as the source of the Company's reportable segments. The Company's chief operating decision maker ("CODM") is responsible for reviewing and approving investments in the Company's technology platforms and manufacturing infrastructure. The Company is organized into two reportable operating segments: Affymetrix Core and eBioscience. Affymetrix Core is divided into four business units, with each business unit having its own strategic marketing and research and development groups to better serve customers and respond quickly to market needs. Affymetrix Core manufacturing operations are based on platforms that are used to produce various Affymetrix Core products that serve multiple applications and markets and similar customer and economic characteristics. Additionally, the business units share certain research, development, commercial operations and common corporate services that provide capital, infrastructure and functional support. As such, the Company concluded that the four business units represent one reportable operating segment. The following describes the four business units that form Affymetrix Core: • Expression: This business unit markets the Company's GeneChip gene expression products and services; • Genetic Analysis and Clinical Applications: This business unit markets the Company's Axiom genotyping product line, as well as products with clinical diagnostic and research applications including CytoScan products, OncoScan products, and the ViewRNA in situ tissue hybridization platform for clinical translational research. In addition, the business unit is responsible for managing the PbA clinical partnering and licensing program which enables third-party diagnostic companies to access and develop DNA and RNA-based diagnostic tests based on Affymetrix technology platforms. This business unit also markets the CytoScan Dx product, an FDA cleared microarray system used as an aid for the post-natal diagnosis of children with developmental delays and intellectual disabilities; • Life Science Reagents: This business unit sells reagents, enzymes, purification kits and biochemicals used by life science researchers and other biological and health care manufacturers, including those developing and marketing Next Generation Sequencing (“NGS”) products and molecular diagnostics; and • Corporate : This business unit is comprised primarily of incidental revenue from royalty arrangements and field revenue from field-services provided to customers of the Company. The eBioscience business unit operates with its own manufacturing, research and development, and marketing groups. The business unit does utilize certain Corporate functions such as finance, legal, commercial operations and human resources. This reportable segment specializes in the areas of flow cytometry reagents, immunoassays, microscopic imaging, other protein-based analyses, QuantiGene single and multiplex RNA solution assays (not including the View RNA in situ tissue hybridization platform) and the ProcartaPlex™ multiplex immunoassay product lines. eBioscience began integrating the development and marketing of the QuantiGene (excluding the ViewRNA in-situ hybridization platform) and Procarta product lines during 2013 with full integration in 2014. These products were previously reported by the Expression Business Unit of the Affymetrix Core reportable segment. Accordingly, segment information for prior periods has been restated to reflect these changes for purposes of comparability. During 2015, the commercial organization and general and administrative functions were fully integrated. The Company no longer reports these operating expenses at a segment level and began evaluating the performance of its reportable segments based on revenue and gross profit. Revenue is allocated to each business unit based on product codes. The amounts for prior periods have been recast to conform to the current presentation. The following table shows revenue and income (loss) from operations by reportable operating segment for the years ended December 31, 2015 , 2014 , or 2013 (in thousands): Year Ended December 31, 2015 2014 2013 Revenue: Affymetrix Core $ 261,733 $ 256,525 $ 241,450 eBioscience 98,053 92,494 88,949 Total revenue $ 359,786 $ 349,019 $ 330,399 Gross Profit Affymetrix Core $ 168,526 $ 155,786 $ 144,160 eBioscience 60,715 50,075 36,878 Total gross profit $ 229,241 $ 205,861 $ 181,038 The Company reported total revenue by region as follows (in thousands): Year Ended December 31, 2015 2014 (1) 2013 (1) Customer location: United States $ 193,785 $ 172,607 $ 163,366 Europe 92,546 109,959 109,228 APAC 53,833 47,863 41,063 Other 19,622 18,590 16,742 Total $ 359,786 $ 349,019 $ 330,399 (1) The revenue by region for the years ended December 31, 2014 and 2013 have been corrected from amounts previously reported. There were no customers representing 10% or more of total revenue in 2015 , 2014 or 2013 . The Company's long-lived assets other than purchased intangible assets, which the Company does not allocate to specific geographic locations as it is impracticable to do so, are composed principally of net property and equipment. Net property and equipment, classified by major geographic areas in which the Company operates was as follows (in thousands): Year Ended December 31, 2015 2014 Net property and equipment: United States $ 17,443 $ 14,023 Singapore 2,476 2,549 Europe 890 1,265 Other countries 191 250 Total $ 21,000 $ 18,087 |
DEFINED-CONTRIBUTION SAVINGS PL
DEFINED-CONTRIBUTION SAVINGS PLANS | 12 Months Ended |
Dec. 31, 2015 | |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |
DEFINED-CONTRIBUTION SAVINGS PLANS | DEFINED‑CONTRIBUTION SAVINGS PLANS The Company maintains a defined‑contribution savings plan which is qualified under Section 401(k) of the Internal Revenue Code. The plan covers substantially all full-time U.S. employees. Participating employees may defer a portion of their pretax earnings, up to the Internal Revenue Service annual contribution limit. The Company's expense associated with matching employee contributions, including eBioscience, for the years ended December 31, 2015 , 2014 and 2013 totaled $3.5 million , $2.7 million , and $2.8 million respectively. Company contributions to employees vest ratably over four years . |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS In December 2011, the Company entered into an agreement under which it assigned one patent application and related know-how to Cellular Research, Inc. ("Cellular Research"), a company founded by the Company's former Chairman, Dr. Stephen P.A. Fodor. Dr. Fodor also owns a majority of the shares of Cellular Research. Pursuant to the agreement, Cellular Research shall pay single digit royalties to Affymetrix on sales of products covered by the assigned technology, and starting in December 2015, an annual minimum fee of $100,000 . Affymetrix shall also have a right of first refusal to collaborate with Cellular Research for the development of certain new products and to supply arrays to Cellular Research under certain terms and conditions. During the year ended December 31, 2015 , the Company received a $1.0 million one-time payment in connection with the change in control of Cellular Research. |
RESTRUCTURING
RESTRUCTURING | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING | RESTRUCTURING During the fourth quarter of 2012, the Company initiated a cost reduction action that included downsizing its workforce to realign the Company's organization to support its strategy to stabilize its core business and position the Company for growth. In January 2013, approximately 100 employees were notified of their involuntary termination. The total restructuring charge associated with the plan was $6.3 million , substantially all of which is compensation and benefits afforded to terminated employees. Restructuring charges of $4.5 million were recognized during the year ended December 31, 2013. The restructuring activities were completed in the second quarter of 2013. |
UNAUDITED QUARTERLY FINANCIAL I
UNAUDITED QUARTERLY FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
UNAUDITED QUARTERLY FINANCIAL INFORMATION | UNAUDITED QUARTERLY FINANCIAL INFORMATION 2015 2014 Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter (in thousands, except per share amounts) Total revenue $ 95,573 $ 86,530 $ 88,966 $ 88,717 $ 93,530 $ 87,086 $ 85,432 $ 82,971 Total cost of goods sold 33,762 31,017 31,887 33,879 34,588 35,566 36,588 36,416 Net income (loss) 4,057 (5,336 ) 7,006 4,386 5,167 2,384 (911 ) (10,474 ) Basic net income (loss) per common share $ 0.05 $ (0.07 ) $ 0.09 $ 0.06 $ 0.07 $ 0.03 $ (0.01 ) $ (0.14 ) Diluted net income (loss) per common share $ 0.05 $ (0.07 ) $ 0.08 $ 0.06 $ 0.05 $ 0.03 $ (0.01 ) $ (0.14 ) |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On January 8, 2016 , the Company entered into a Merger Agreement with Thermo Fisher and Merger Sub, providing for, subject to the satisfaction or waiver of specified conditions, the acquisition of the Company by Thermo Fisher at a price of $14.00 per share in cash. Subject to the terms and conditions of the Merger Agreement, the closing of the merger is expected to occur during the second quarter of 2016. In November 2015, the Company amended its Change of Control Policy and Executive Severance Policy as part of its periodic review of practices in compensation matters, which will be triggered upon the closing of the merger. Upon termination of the Merger Agreement under certain circumstances, the Company may be obligated to pay Thermo Fisher a termination fee of $55.0 million . |
Schedule II-Valuation and Quali
Schedule II-Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II-Valuation and Qualifying Accounts | Schedule II—Valuation and Qualifying Accounts (in thousands) Balance at Beginning of Period Additions Charged to Operations or Other Accounts Write-offs, net of recoveries Balance at End of Period Allowance for Doubtful Accounts: Year Ended December 31, 2015 $ 443 $ (89 ) $ (13 ) $ 341 Year Ended December 31, 2014 $ 601 $ (112 ) $ (46 ) $ 443 Year Ended December 31, 2013 $ 691 $ 142 $ (232 ) $ 601 |
SUMMARY OF SIGNIFICANT ACCOUN33
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The consolidated financial statements include the accounts of Affymetrix and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. The consolidated financial statements include the results of companies acquired by us from the date of each acquisition for the applicable reporting periods. |
USE OF ESTIMATES | USE OF ESTIMATES The preparation of the consolidated financial statements is in conformity with U.S. generally accepted accounting principles ("US GAAP") which require management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Actual results could differ materially from those estimates. |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS The Company's consolidated financial statements include the operations of an acquired business after the completion of the acquisition. The Company accounts for acquired businesses using the acquisition method of accounting which requires, among other things, that assets acquired and liabilities assumed be recognized at their estimated fair values as of the acquisition date, while transaction costs are expensed as incurred, except for any debt and equity issuance costs. The measurement of the fair value of assets acquired and liabilities assumed requires significant judgment. Any excess of the purchase price over the fair value of the net assets acquired is recorded as goodwill. |
FOREIGN CURRENCY | FOREIGN CURRENCY Certain operations from foreign subsidiaries of the Company have a functional currency other than the U.S. dollar. All other subsidiaries have the U.S. dollar as their functional currency. Assets and liabilities of non-U.S. subsidiaries that use the local currency as their functional currency are translated to U.S. dollars at exchange rates in effect at the balance sheet date with the resulting translation adjustments directly recorded to a separate component of accumulated other comprehensive income (loss) within stockholders' equity. Income and expense accounts are translated at average exchange rates during the year. Foreign currency transaction gains and losses are recognized, net of hedging activity, in interest income and other, net and were comprised of net loss of $1.0 million for the year ended December 31, 2015 , net loss of $2.5 million for the year ended December 31, 2014 , and net gain of $0.1 million for the year ended December 31, 2013 . The Company's subsidiaries that use the U.S. dollar as their functional currency re-measure monetary assets and liabilities at exchange rates in effect at the end of each period, and inventories, property and other nonmonetary assets and liabilities at historical rates. Gains and losses from these re-measurements were insignificant and have been included in the Company's results of operations. |
CASH EQUIVALENTS, AVAILABLE-FOR-SALE SECURITIES AND INVESTMENTS | CASH EQUIVALENTS, AVAILABLE-FOR-SALE SECURITIES AND INVESTMENTS Marketable Securities During 2015, the Company purchased interests in a money market fund. The Company reported all securities with maturities at the date of purchase of 90 days or less that were readily convertible into cash and have insignificant interest rate risk as cash equivalents. The Company's investments in marketable securities were carried at fair value with unrealized gains and losses reported in accumulated other comprehensive income (loss) in stockholders' equity. The cost of marketable securities is adjusted for the amortization of premiums and discounts to maturity and is included in interest income and other, net. Realized gains and losses, as well as interest income, on marketable securities are also included in interest income and other, net. The fair values of securities are based on quoted market prices. As of December 31, 2015 , the Company held $30.0 million in money market fund. As of December 31, 2014, the Company did not hold any marketable securities. Other-than-temporary Impairment All of the Company's non-marketable securities are subject to quarterly reviews for impairment that is deemed to be other-than-temporary ("OTTI"). An investment is considered other-than-temporarily impaired when its fair value is below its amortized cost and (1) the Company intends to sell the security; (2) it is "more likely than not" that the Company will be required to sell the security before recovery of its amortized cost basis; or (3) the present value of expected cash flows is not expected to recover the entire amortized cost basis. Below is a summary of the Company's analysis: During the years ended December 31, 2015 , 2014 and 2013, the Company recorded no impairment charges on its marketable securities. Refer to Note 6. "Financial Instruments" for further information. The Company monitors the liquidity and financing activities of its non-marketable securities to determine if any impairment exists and accordingly writes down, to the extent necessary, the carrying value of the non-marketable equity securities to their estimated fair values. In order to determine whether a decline in value is other-than-temporary, the Company evaluates, among other factors: the duration and extent to which the fair value has been less than the carrying value; the financial condition of and business outlook of the issuer, including key operational and cash flow metrics, current market conditions; and the Company's intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in estimated fair value. The Company recognized impairment changes of less than $0.1 million , $0.1 million and $0.5 million on its non-marketable securities during the years ended December 31, 2015 , December 31, 2014 and 2013, respectively. Refer to Note 6. "Financial Instruments" for further information. |
ACCOUNTS RECEIVABLE | ACCOUNTS RECEIVABLE Trade accounts receivable are recorded at net invoice value. The Company considers amounts past due based on the related terms of the invoice. The Company reviews its exposure to amounts receivable and provides an allowance for specific amounts if collectability is no longer reasonably assured. The Company also provides an allowance for a percentage of the gross trade receivable balance (excluding any specifically reserved amounts) based on its collection history. The allowance for doubtful accounts was not significant at either December 31, 2015 or 2014 . |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS The Company accounts for its derivative instruments as either assets or liabilities and carries them at fair value. Derivatives that are not defined as hedges must be adjusted to fair value through earnings at each reporting date. For derivative instruments that hedge the exposure to variability in expected future cash flows that are designated as cash flow hedges, the Company measures the effectiveness of the derivative instruments by comparing the cumulative change in the hedge contract with the cumulative change in the hedged item. The effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income (loss) ("OCI") in stockholders' equity and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The ineffective portion of the gain or loss on the derivative instrument is recognized in current earnings. To receive hedge accounting treatment, cash flow hedges must be highly effective in offsetting changes to expected future cash flows on hedged transactions. The net gain or loss on the effective portion of a derivative instrument that is designated as an economic hedge of the foreign currency translation exposure of the net investment in a foreign operation is reported in the same manner as a foreign currency translation adjustment. Refer to Note 6. "Financial Instruments – Derivative Financial Instruments" for further information. |
INVENTORIES | INVENTORIES Inventory cost is computed on an adjusted standard basis (which approximates actual cost on a first-in, first-out basis). Provisions for slow moving, potentially excess and obsolete inventories are provided based on estimated demand requirements, product life cycle and development plans, component cost trends, product pricing, product expiration and quality issues. Inventory that is not expected to be utilized until more than 12 months from the balance sheet date is classified as long-term. Estimating the level of inventory utilization for the upcoming 12 months requires management to exercise significant judgment. The Company maintains inventory levels in excess of 12 months for certain components of work-in-progress that have useful lives of up to 10 years. Carrying such levels of inventory impacts the Company's liquidity and cash flows since the inventory will not be converted to cash for more than one year. |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment are recorded at cost and are depreciated using the straight-line method over the estimated useful lives of the assets or the lease term, whichever is shorter. Equipment and furniture is depreciated over useful lives generally ranging from 3 to 7 years and leasehold improvements are depreciated over the shorter of the expected life of the asset or lease terms generally ranging from 3 to 15 years. Maintenance and repair costs are expensed as incurred. The Company reassesses the useful life of its property and equipment on a periodic basis and may adjust the lives accordingly. |
GOODWILL, INTANGIBLE ASSETS AND OTHER LONG-LIVED ASSETS | GOODWILL, INTANGIBLE ASSETS AND OTHER LONG-LIVED ASSETS Goodwill represents the excess of the fair value of an acquired entity over the fair value of the net tangible and identifiable intangible assets acquired and liabilities assumed in a business combination. Finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives, which range from one to fifteen years , with the amortization recognized in either cost of revenue or operating expenses, as appropriate. Goodwill is not subject to amortization, but is tested for impairment on an annual basis during the third quarter or whenever events or changes in circumstances indicate the carrying amount of these assets may not be recoverable. Goodwill impairment testing is a two-step process and performed on a reporting unit level. In the first step, the Company conducts an assessment of qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company determines that it is more likely than not that the fair value of its reporting unit is less than its carrying amount, it then conducts the second step, a two-part test for impairment of goodwill. The Company first compares the fair value of its reporting units to their carrying values. If the fair values of the reporting units exceed the carrying value of the net assets, goodwill is not considered impaired and no further analysis is required. If the carrying values of the net assets exceed the fair values of the reporting units, then the second part of the impairment test must be performed in order to determine the implied fair value of the goodwill. If the carrying value of the goodwill exceeds the implied fair value, then an impairment loss equal to the difference would be recorded. During the third quarter of 2015 , the Company performed an analysis of the qualitative factors and concluded that it was not more likely than not that the fair value of its reporting units are less than their carrying amounts. For the years ended December 31, 2015 , 2014 and 2013 , no impairment charges on goodwill were recognized. Finite-lived intangible assets and other long-lived assets are reviewed for impairment when facts or circumstances suggest that the carrying value of such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. In the event that such cash flows are not expected to be sufficient to recover the carrying amount of the assets, the assets are written down to their estimated fair values. Additionally, during each period, the Company evaluates the estimated remaining useful lives of purchased finite-lived intangible assets and other long-lived assets to determine whether events or changes in circumstances warrant a revision to the remaining period of amortization. |
INCOME TAXES | INCOME TAXES Income tax expense is based on pre-tax financial accounting income. Under the liability method, deferred tax assets and liabilities are determined based on the differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The Company must then assess the likelihood that the resulting deferred tax assets will be realized. To the extent the Company believes that realization of the deferred tax assets is not more likely than not, the Company establishes a valuation allowance. Significant estimates are required in determining the Company's provision for income taxes, deferred tax assets and liabilities, any valuation allowance to be recorded against net deferred tax assets, and reserves for income tax related uncertainties. Some of these estimates are based on interpretations of existing tax laws or regulations. Various internal and external factors may have favorable or unfavorable effects on the Company's future effective tax rate. These factors include, but are not limited to, changes in overall levels of characterization and geographical mix of pretax earnings (losses), changes in tax laws, regulations and/or rates, changing interpretations of existing tax laws or regulations, changes in the valuation of deferred tax assets or liabilities, levels of research and development spending, nondeductible expenses, applicability of tax holidays, ultimate outcomes of income tax audits, income tax impacts of any business combination transactions, intraperiod tax allocation provisions, or changes in our equity structure. Relative to uncertain tax positions, the Company only recognizes the tax benefit if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the Company's financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. |
CONTINGENCIES | CONTINGENCIES The Company is subject to various legal proceedings principally related to intellectual property matters. Based on the information available at the most recent balance sheet date, the Company assesses the likelihood of any material adverse judgments or outcomes that may result from these matters, as well as the range of possible or probable loss, if any. If losses are probable and reasonably estimable, the Company will recognize a liability. Any liability recognized may change in the future due to new developments in each matter. |
REVENUE RECOGNITION | REVENUE RECOGNITION Overview The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable, and collectability is reasonably assured. In instances where final acceptance of the product or system is required or performance obligations remain, revenue is deferred until all the acceptance criteria or performance obligations have been met. The Company derives the majority of its revenue from product sales of probe arrays, reagents, and related instrumentation that may be sold individually or combined with any of the Company's products, services or other sources of revenue. When a sale combines multiple elements upon delivery or performance of multiple products, services and/or rights to use assets, the Company allocates revenue for transactions or collaborations that include multiple elements to each unit of accounting based on its relative fair value or best estimate of selling price, and recognizes revenue for each unit of accounting when all revenue recognition criteria have been met. The price charged when an element is sold separately generally determines fair value. Product Sales Product sales include sales of probe arrays, antibodies, reagents, kits and related instrumentation. Probe array, reagent and instrumentation revenue is recognized when earned, which is generally upon shipment and transfer of title to the customer and fulfillment of any significant post-delivery obligations. Accruals are provided for anticipated warranty expenses at the time the associated revenue is recognized. Services Services revenue includes equipment service revenue; scientific services revenue, which includes associated consumables; and revenue from custom probe array design fees. Revenue from equipment service contracts is recognized ratably over the life of the contract. Revenue from scientific and DNA analysis services is recognized upon shipment of the required data to the customer. Revenue from custom probe array design fees associated with the Company's GeneChip CustomExpress and CustomSeq products is recognized when the associated products are shipped. Royalties and Other Revenue Royalties and other revenue include license revenue; royalties earned from third party license agreements; milestones and royalties earned from collaborative product development and supply agreements; subscription fees earned under GeneChip array access programs; and research revenue, which mainly consists of amounts earned under government grants. License revenue is generally recognized upon the execution of an agreement or is recognized ratably over the period of expected performance. Revenue from royalties is recognized under the terms of the related agreement. The Company enters into collaborative arrangements which generally include a research and product development phase and a manufacturing and product supply phase. These arrangements may include up-front nonrefundable license fees, milestones, the rights to royalties based on the sale of final product by the partner, product supply agreements and distribution arrangements. Any up-front, nonrefundable payments from collaborative product development agreements are recognized ratably over the research and product development period and at-risk based milestones are recognized when earned. Any payments received which are not yet earned are included in deferred revenue. Transactions with Distributors The Company recognizes revenue from transactions with distributors when the product is delivered either to customers or distributors. The Company's agreements with distributors do not include rights of return. |
RESEARCH AND DEVELOPMENT EXPENSES | RESEARCH AND DEVELOPMENT EXPENSES Research and development expenses consist of costs incurred for internal, collaborative and grant‑sponsored research and development. Research and development expenses include salaries, contractor fees, building costs, utilities and allocations of shared corporate services. In addition, the Company funds research and development at other companies and research institutions under agreements which are generally cancelable. All such costs are charged to research and development expense as incurred. |
ADVERTISING COSTS | ADVERTISING COSTS The Company expenses advertising costs as incurred. |
SHARE-BASED COMPENSATION | SHARE‑BASED COMPENSATION The Company estimates the fair value of its option grants and shares sold under its Employee Stock Purchase Plan using the BSM option pricing model. This model requires the use of certain estimates and assumptions such as the expected term of options, estimated forfeitures, expected volatility of the Company's stock price, expected dividends and the risk-free interest rate at the grant date to determine the fair value of stock-based payments. The fair value of restricted stock awards, restricted stock units and performance based restricted stock units, collectively referred to as restricted stock, is based on the market price of the Company's common stock on the grant date. The Company recognizes the fair value of its share-based compensation as expense on a straight-line basis over the requisite service period of each award, generally four years . Refer to Note 14. "Stockholders' Equity and Share-Based Compensation Expense" for further information. Performance-Based Awards The Company's share-based awards program includes performance-based restricted stock awards ("PRSUs") that vest based upon the achievement of certain performance criteria and a service vesting criteria following the achievement of performance criteria. Performance criteria include various operational criteria of the Company such as revenues, earnings before interest, taxes, depreciation and amortization, product launches, and similar criteria, either on a Company-wide or business unit specific basis. The service vesting criteria ranges from six months to four years. The Company recognizes the fair value of these awards to the extent the achievement of the related performance criteria is estimated to be probable. If a performance criteria is subsequently determined to not be probable of achievement, any related expense is reversed in the period such determination is made. Conversely, if a performance criteria is not currently expected to be achieved but is later determined to be probable of achievement, a “catch-up” entry is recorded in the period such determination is made for the expense that would have been recognized had the performance criteria been probable of achievement since the grant of the award. |
COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Comprehensive income (loss) is comprised of net loss and other comprehensive income (loss). Other comprehensive income (loss) includes foreign currency translation adjustments, unrealized gains and losses on the Company's non-marketable securities that are excluded from net loss and unrealized gains and losses on cash flow hedges. Total comprehensive income (loss) has been disclosed in the Company's Consolidated Statements of Comprehensive Loss. |
NET INCOME (LOSS) PER COMMON SHARE | NET INCOME (LOSS) PER COMMON SHARE Basic net income (loss) per common share is calculated using the weighted‑average number of common shares outstanding during the period less the weighted‑average shares subject to repurchase. Diluted net income (loss) per common share gives effect to dilutive restricted stock, stock options (calculated based on the treasury stock method), shares purchased under the employee stock purchase plan and convertible debt (calculated using an as-if-converted method). Diluted earnings per share, if any, include certain potential dilutive securities from restricted stock, outstanding stock options (on the treasury stock method), shares purchased under the employee stock purchase plan and convertible notes (on the as-if-converted basis). |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09) to provide guidance on revenue recognition. ASU 2014-09 requires a company to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under today’s guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. In August 2015, the FASB issued Accounting Standards Update No. 2015-14, Revenue from Contracts with Customers (ASU 2015-14) to defer the effective date for ASU 2014-09 to the first quarter of 2018 for public companies. Early adoption up to the first quarter of 2017 is permitted. Upon adoption, ASU 2014-09 can be applied retrospectively to all periods presented or only to the most current period presented with the cumulative effect of changes reflected in the opening balance of retained earnings in the most current period presented. The Company is currently evaluating the method of adoption and the impact of adopting ASU 2014-09 on its consolidated financial statements. In May 2015, the FASB issued Accounting Standards Update No. 2015-03, Interest - Imputation of Interest (ASU 2015-03) to provide guidance on the presentation of debt issuance costs. ASU 2015-03 requires a company to present debt issuance costs as a reduction from the carrying amount of the financial liability and not recorded as separate assets. ASU 2015-03 is effective for the Company in the first quarter of 2016. Early adoption is permitted. Upon adoption, ASU 2015-03 should be applied retrospectively to all periods presented. The Company's adoption of ASU 2015-03 would have resulted in a decrease in Other long-term assets, Convertible notes, and Term loan—long-term portion of $2.2 million as of December 31, 2015 . In July 2015, the FASB issued Accounting Standards Update No. 2015-11, Inventory (ASU 2015-11) to provide guidance on simplifying the measurement of inventory. ASU 2015-11 requires a company to measure inventory at the lower of cost and net realizable value. ASU 2015-11 is effective for the Company in the first quarter of 2017. Early adoption is permitted. Upon adoption, ASU 201511 should be applied prospectively. The Company is currently evaluating the method of adoption and the impact of adopting ASU 2015-11 on its consolidated financial statements. In November 2015, the FASB issued Accounting Standards Update No. 2015-17, Income Taxes (ASU 2015-17) to provide guidance on the presentation of deferred tax assets and liabilities. ASU 2015-17 requires a company to classify deferred tax assets and liabilities as non-current items. The Company adopted this ASU prospectively as of December 31, 2015 and reclassified Deferred tax assets - short-term portion of $3.8 million to Other long-term liabilities on its consolidated balance sheets. No prior periods were retrospectively adjusted. |
SUMMARY OF SIGNIFICANT ACCOUN34
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Components of accumulated other comprehensive income, net of tax | At December 31, 2015 and 2014 , the components of accumulated other comprehensive income (loss), net of tax, are as follows (in thousands): Year Ended December 31, 2015 2014 Foreign currency translation adjustment (10,606 ) (2,933 ) Unrealized change on non-marketable securities 1,151 1,219 Unrealized change on cash flow hedges 75 1,102 Total accumulated other comprehensive income (loss), net of tax $ (9,380 ) $ (612 ) |
Reclassification out of Accumulated Other Comprehensive Income | The following table summarizes the amounts reclassified out of accumulated other comprehensive income (loss), net of tax, for the year ended December 31, 2015 (in thousands): December 31, 2014 (Decrease) / Increase Reclassification Adjustment December 31, 2015 Foreign currency translation adjustment $ (2,933 ) $ (7,574 ) $ (99 ) $ (10,606 ) Unrealized change on non-marketable securities 1,219 (68 ) — 1,151 Unrealized change on cash flow hedges 1,102 2,162 (3,189 ) 75 Total accumulated other comprehensive income (loss), net of tax $ (612 ) $ (5,480 ) $ (3,288 ) $ (9,380 ) |
Antidilutive securities excluded from diluted earnings per common share | The potentially dilutive securities excluded from diluted earnings per common share on an actual outstanding basis, were as follows (in thousands): Year Ended December 31, 2015 2014 2013 Employee stock options 2,053 4,195 5,141 Employee stock purchase plan 25 121 153 Restricted stock and restricted stock units 1,716 3,118 4,161 Convertible notes 17,857 17,857 17,862 Total 21,651 25,291 27,317 |
ACQUISITION (Tables)
ACQUISITION (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Business Acquisition, Pro Forma Information | The following unaudited pro forma financial information presents the combined results of operations for the years ended December 31, 2015 and 2014 as if the Acquisition had been completed on January 1, 2014, with adjustments to give effect to pro forma events that are directly attributable to the Acquisition. The unaudited pro forma results do not reflect any operating efficiencies or potential cost savings that may result from the consolidation of the operations of the Company and Eureka. Accordingly, these unaudited pro forma results are presented for informational purposes only and are not necessarily indicative of what the actual results of operations of the combined company would have been if the Acquisition had occurred at the beginning of the period presented, nor are they indicative of future results of operations (in thousands, except per share data): Years Ended December 31, 2015 2014 Revenues $ 360,171 $ 349,386 Net income (loss) 9,347 (7,137 ) Basic earnings per share 0.12 (0.10 ) Diluted earnings per share 0.12 (0.10 ) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Financial assets and liabilities measured at fair value on a recurring basis | The following table represents the Company's fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 and 2014 (in thousands): December 31, 2015 December 31, 2014 Fair Value Measurements Using Input Types Fair Value Measurements Using Input Types Level 1 Level 2 Level 3 Total Level 2 Level 3 Total Assets: Money market fund $ 30,000 $ — $ — $ 30,000 $ — $ — $ — Derivative assets — 341 — 341 1,258 — 1,258 Non-marketable securities — — 2,753 2,753 — 3,384 3,384 Total assets $ 30,000 $ 341 $ 2,753 $ 33,094 $ 1,258 $ 3,384 $ 4,642 Liabilities: Derivative liabilities $ — 82 $ — $ 82 $ — $ — $ — |
Fair value of non-marketable securities | The following table summarizes the change in the fair value of the Company's non-marketable securities during the year ended December 31, 2015 (in thousands). Balance as of December 31, 2013 $ 4,383 Sales (3,133 ) Impairment (139 ) Realized gain 2,548 Unrealized gain (275 ) Balance as of December 31, 2014 $ 3,384 Sales (1,822 ) Impairment (47 ) Realized gain 1,383 Unrealized gain (145 ) Balance as of December 31, 2015 $ 2,753 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Notional values of entity's foreign currency forward contracts mature within 12 months | As of December 31, 2015 and 2014 , the total notional values of the Company's derivative assets and liabilities were as follows (in thousands): December 31, 2015 December 31, 2014 Euro $ 18,691 $ 15,982 British pound 4,296 1,784 Japanese yen 2,387 3,391 Total $ 25,374 $ 21,157 |
Entity's foreign currency derivatives measured at fair value | The following table shows the Company's derivatives as of December 31, 2015 and 2014 (in thousands): December 31, 2015 December 31, 2014 Balance Sheet Classification Derivative assets: Foreign exchange contracts $ 341 $ 1,258 Prepaid expenses and other current assets Derivative liabilities: Foreign exchange contracts 82 — Accounts payable and accrued liabilities |
Effect of entity's derivative instruments, net of tax, on Condensed Statements of Operations | The following table shows the effect, net of tax, of the Company's derivative instruments on the accompanying Consolidated Statements of Operations and OCI for the years ended December 31, 2015 , 2014 and 2013 (in thousands): Year ended December 31, 2015 2014 2013 Derivatives in cash flow hedging relationships: Net (loss) gain recognized in OCI, net of tax $ (1,027 ) $ 1,867 $ (796 ) Net gain reclassified from accumulated OCI into Revenue 3,701 1,303 800 Net gain reclassified from accumulated OCI into Other income, net — 55 158 Net gain recognized in Other income, net 130 11 74 Derivatives not designated as hedging relationships: Net gain (loss) recognized in Other income, net — 59 (122 ) |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consist of the following at December 31, 2015 and 2014 (in thousands): December 31, 2015 2014 Raw materials $ 10,525 $ 11,461 Work-in-process 17,756 18,147 Finished goods 28,057 27,024 Total $ 56,338 $ 56,632 Short-term portion $ 54,131 $ 50,676 Long-term portion $ 2,207 $ 5,956 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | Property and equipment consists of the following as of December 31, 2015 and 2014 (in thousands): December 31, 2015 2014 Property and equipment: Construction-in-progress (1) $ 2,433 $ 3,589 Equipment and furniture 133,215 124,789 Building and leasehold improvements 46,222 48,610 181,870 176,988 Less: accumulated depreciation and amortization (160,870 ) (158,901 ) Net property and equipment $ 21,000 $ 18,087 (1) Includes assets received but not yet in service. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Definite lived intangible assets | The gross carrying amounts and net book values of the Company's intangible assets are as follows (in thousands): Carrying Value, Gross Accumulated Amortization Intangible Assets, Net Weighted December 31, 2014 (Decrease)/Increase (1) December 31, 2015 December 31, 2014 (Increase)/Decrease (2) December 31, 2015 December 31, 2014 December 31, 2015 Average Useful Life Customer relationships $ 75,229 $ (1,006 ) $ 74,223 $ (27,301 ) $ (4,551 ) $ (31,852 ) $ 47,928 $ 42,371 11 years Developed technologies 75,194 (1,856 ) 73,338 (29,367 ) (4,592 ) (33,959 ) 45,827 39,379 10 years Trademarks and tradenames 17,793 (30 ) 17,763 (9,778 ) (3,365 ) (13,143 ) 8,015 4,620 5 years Other contractual agreements 2,978 (89 ) 2,889 (2,978 ) 89 (2,889 ) — — 2 years Licenses 81,762 546 82,308 (77,349 ) (931 ) (78,280 ) 4,413 4,028 14 years Total intangible assets subject to amortization 252,956 (2,435 ) 250,521 (146,773 ) (13,350 ) (160,123 ) 106,183 90,398 In-process research and development — 12,000 12,000 — — — — 12,000 N.A. Total intangible assets, net $ 252,956 $ 9,565 $ 262,521 $ (146,773 ) $ (13,350 ) $ (160,123 ) $ 106,183 $ 102,398 (1) Includes additions in connection with the Acquisition in 2015 and a decrease in carrying value of $3.9 million related to foreign currency translation. (2) The impact of foreign currency translation on accumulated amortization was a decrease of $1.0 million . |
Expected future annual amortization expense | The expected future annual amortization expense of the Company's intangible assets is as follows (in thousands): Amortization For the Year Ending December 31, Expense 2016 $ 13,433 2017 11,764 2018 10,189 2019 10,179 2020 10,179 Thereafter 34,654 Total $ 90,398 |
Schedule of Goodwill | Information in regards to changes in the Company's goodwill as of December 31, 2015 is as follows (in thousands): Balance at December 31, 2014 $ 156,178 Goodwill from acquisition 2,559 Effects of foreign currency change (4,198 ) Balance at December 31, 2015 $ 154,539 |
ACCOUNTS PAYABLE AND ACCRUED 41
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Accounts payable and accrued liabilities | Accounts payable and accrued liabilities as of December 31, 2015 and 2014 consist of the following (in thousands): December 31, 2015 2014 Accounts payable $ 10,904 $ 10,832 Accrued compensation and related liabilities 29,975 27,655 Accrued interest 102 111 Accrued taxes 4,574 5,725 Accrued legal 596 490 Accrued audit 750 343 Accrued warranties 1,243 913 Accrued royalties 2,527 2,600 Other 5,366 4,394 Total $ 56,037 $ 53,063 |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease obligations | Future minimum lease obligations, net of sublease income, at December 31, 2015 under all non-cancelable operating leases are as follows (in thousands): For the Year Ending December 31, Amount 2016 $ 9,435 2017 9,877 2018 8,948 2019 9,017 2020 9,223 Thereafter 20,073 Total $ 66,573 |
WARRANTIES (Tables)
WARRANTIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Product Warranties Disclosures [Abstract] | |
Changes in entity's product warranty liability | Information regarding changes in the Company's product warranty liability for the years ended December 31, 2015 and 2014 is as follows (in thousands): Amount Balance as of December 31, 2013 $ 1,697 Additions charged to cost of product sales 623 Repairs and replacements (1,225 ) Adjustments (183 ) Balance as of December 31, 2014 $ 912 Additions charged to cost of product sales 1,603 Repairs and replacements (1,272 ) Balance as of December 31, 2015 $ 1,243 |
LONG-TERM DEBT OBLIGATIONS (Tab
LONG-TERM DEBT OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table summarizes the carrying amount of the Company's borrowings (in thousands): December 31, 2015 December 31, 2014 Senior credit facility $ 19,088 $ — Term loan — 22,950 Convertible notes 105,000 105,000 Total debt 124,088 127,950 Less: current portion of long-term debt 4,000 4,000 Total long-term debt $ 120,088 $ 123,950 |
Schedule of Maturities of Long-term Debt | The Company incurred $0.1 million in interest expense under the Senior Credit Facility for the year ended December 31, 2015 . The principal amount of unpaid maturities per the Senior Credit Facility Agreement is as follows (in thousands): For the Year Ending December 31, 2016 $ — 2017 — 2018 — 2019 — 2020 19,088 Total $ 19,088 |
STOCKHOLDERS' EQUITY AND SHAR45
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION EXPENSE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders Equity And Share Based Compensation Expense [Abstract] | |
Share-based compensation expense | The following table sets forth the share-based compensation expense included in the accompanying Consolidated Statements of Operations (in thousands): Year Ended December 31, 2015 2014 2013 Costs of product sales $ 2,620 $ 2,500 $ 1,002 Research and development 1,951 2,266 1,331 Selling, general and administrative 10,414 7,645 5,394 Total share-based compensation expense $ 14,985 $ 12,411 $ 7,727 |
Fair value of options estimated at the date of grant with weighted-average assumptions | The fair value of options was estimated at the respective dates of grant using the BSM option pricing model with the following weighted‑average assumptions: Year Ended December 31, 2015 2014 2013 Risk free interest rate 1.4 % 1.6 % 1.0 % Expected dividend yield — % — % — % Expected volatility 58 % 72 % 68 % Expected option term (in years) 4.6 4.6 4.6 |
Stock options plan activity | Activity under the Company's stock plans for the year ended December 31, 2015 is as follows (in thousands, except per share amounts): Shares Weighted-Average Exercise Price Per Share Weighted-Average Remaining Contractual Terms Aggregate Intrinsic Value (in years) (in thousands) Outstanding at December 31, 2014 4,195 $ 6.23 Grants 504 11.00 Exercises (1,138 ) 7.24 Forfeitures or expirations (156 ) 9.36 Outstanding at December 31, 2015 3,405 $ 6.46 3.61 $ 13,662 Exercisable at December 31, 2015 2,091 $ 5.65 2.58 $ 9,995 Vested and expected to vest at December 31, 2015 3,178 $ 6.31 3.47 $ 13,184 |
Summary of outstanding and exercisable options | The following table summarizes information concerning currently outstanding and exercisable options at December 31, 2015 : Range of Exercise Prices Options Outstanding Options Exercisable Weighted-Average Weighted-Average Weighted-Average Remaining Exercise Price Exercise Price Lower Upper Number Contractual Life Per Share Number Per Share (in thousands) (in years) (in thousands) $ 2.93 $ 3.91 904 3.53 $ 3.72 574 $ 3.68 $ 4.16 $ 5.07 709 2.43 $ 4.45 642 $ 4.46 $ 5.21 $ 7.55 857 3.37 $ 6.48 573 $ 6.22 $ 7.62 $ 11.88 834 4.83 $ 9.62 266 $ 8.27 $ 12.24 $ 36.16 101 4.44 $ 18.56 36 $ 29.96 Total 3,405 3.61 $ 6.46 2,091 $ 5.65 |
Reserved shares | At December 31, 2015 , the Company has shares reserved for future issuance as follows (in thousands): Options outstanding 3,405 Options available for future grants 5,189 Convertible notes 17,857 Total at December 31, 2015 26,451 |
Summary of RSAs activity | The following tables summarize the Company's restricted stock activity for the year ended December 31, 2015 (in thousands, except per share amounts): Number of Shares Weighted-Average Grant Date Fair Value per Share Restricted stock units Outstanding at December 31, 2014 2,395 $ 6.30 Granted 1,396 10.04 Vested (1,000 ) 6.03 Forfeited (265 ) 7.39 Outstanding at December 31, 2015 2,526 $ 8.36 |
Performance shares award outstanding activity | The following table summarizes the Company's PRSU activity for the year ended December 31, 2015 (in thousands, except per share amounts): Number of Shares Weighted-Average Grant Date Fair Value per PRSU Performance based restricted stock awards Outstanding at December 31, 2014 723 $ 6.83 Granted 399 12.07 Vested (354 ) 6.85 Forfeited (65 ) 6.38 Outstanding at December 31, 2015 703 $ 9.84 |
Assumptions Used to Value Employees Stock Purchase Rights | During the years ended December 31, 2015 and 2014 , the fair value of shares issued under the ESPP was estimated using the following assumptions: 2015 2014 Risk free interest rate 0.23 % 0.07 % Expected dividend yield — % — % Expected volatility 58 % 72 % Expected term (in years) 0.74 0.75 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Components of consolidated loss before income taxes | The following table summarizes the U.S. and foreign components of consolidated income (loss) before income taxes (in thousands): Year Ended December 31, 2015 2014 2013 Income (loss) before income taxes: U.S. $ 11,156 $ (1,992 ) $ (11,240 ) Foreign (310 ) (1,606 ) (3,926 ) Income (loss) before income taxes $ 10,846 $ (3,598 ) $ (15,166 ) |
Provision (benefit) for income taxes | The provision for income taxes consisted of the following (in thousands): Year Ended December 31, 2015 2014 2013 Provision for income taxes: Current: Federal $ — $ (151 ) $ — State (261 ) (91 ) (383 ) Foreign 1,456 1,663 2,652 Subtotal 1,195 1,421 2,269 Deferred: Federal $ — — $ (268 ) State — — (21 ) Foreign (462 ) (1,185 ) (819 ) Subtotal (462 ) (1,185 ) (1,108 ) Income tax provision $ 733 $ 236 $ 1,161 |
Difference between the provision (benefit) for income taxes and the amount computed by federal statutory income tax rate | The difference between the provision for income taxes and the amount computed by applying the federal statutory income tax rate ( 35% ) to loss before taxes from continuing operations is explained as follows (in thousands): Year Ended December 31, 2015 2014 2013 Tax at federal statutory rate $ 3,796 $ (1,259 ) $ (5,308 ) State taxes, net 1,246 (1,285 ) (1,289 ) Non-deductible stock compensation 1,252 1,065 327 Foreign rate differential 1,078 1,567 3,245 Research credits (741 ) (548 ) (930 ) Change in valuation allowance (6,050 ) 556 4,961 Other 152 140 155 Income tax provision $ 733 $ 236 $ 1,161 |
Significant components of the deferred tax assets and liabilities | : December 31, 2015 2014 Deferred tax assets: Net operating loss carryforwards $ 49,313 $ 61,308 Tax credit carryforwards 60,524 56,575 Deferred revenue 1,036 1,849 Capitalized research and development costs 497 245 Intangibles 15,380 17,474 Share-based compensation 5,049 4,371 Accrued compensation 5,472 4,625 Accrued warranty 474 347 Inventory reserves 6,501 7,224 Reserves and other 8,239 7,178 Depreciation and amortization 5,202 6,080 Other, net 4,255 9,463 Total deferred tax assets 161,942 176,739 Valuation allowance for deferred tax assets (126,252 ) (137,957 ) Net deferred tax assets 35,690 38,782 Net deferred tax liabilities: Acquired intangible assets (29,587 ) (33,735 ) Acquired tangible assets — (78 ) Cancellation of debt (5,854 ) (7,701 ) Foreign earnings (4,520 ) (2,734 ) Other, net (1,457 ) (1,471 ) Total deferred tax liabilities (41,418 ) (45,719 ) Net deferred tax liabilities $ (5,728 ) $ (6,937 ) |
Unrecognized tax benefits | The following table presents the Company's total amount of gross unrecognized tax benefits (in thousands): 2015 2014 2013 Unrecognized tax benefits, beginning of year $ 21,914 $ 22,372 $ 20,413 Additions for tax positions of prior years 4,465 1,025 2,003 Additions for tax positions of current year 2,164 778 718 Decreases for tax positions of prior years (849 ) (1,808 ) (5 ) Settlements (354 ) — — Lapse in statute of limitations (331 ) (453 ) (757 ) Impact of foreign currency, other (85 ) — — Unrecognized tax benefits, end of year $ 26,924 $ 21,914 $ 22,372 |
SEGMENT AND GEOGRAPHIC INFORM47
SEGMENT AND GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information, by region | The following table shows revenue and income (loss) from operations by reportable operating segment for the years ended December 31, 2015 , 2014 , or 2013 (in thousands): Year Ended December 31, 2015 2014 2013 Revenue: Affymetrix Core $ 261,733 $ 256,525 $ 241,450 eBioscience 98,053 92,494 88,949 Total revenue $ 359,786 $ 349,019 $ 330,399 Gross Profit Affymetrix Core $ 168,526 $ 155,786 $ 144,160 eBioscience 60,715 50,075 36,878 Total gross profit $ 229,241 $ 205,861 $ 181,038 The Company reported total revenue by region as follows (in thousands): Year Ended December 31, 2015 2014 (1) 2013 (1) Customer location: United States $ 193,785 $ 172,607 $ 163,366 Europe 92,546 109,959 109,228 APAC 53,833 47,863 41,063 Other 19,622 18,590 16,742 Total $ 359,786 $ 349,019 $ 330,399 (1) The revenue by region for the years ended December 31, 2014 and 2013 have been corrected from amounts previously reported. |
Net property and equipment by major geographic areas | Net property and equipment, classified by major geographic areas in which the Company operates was as follows (in thousands): Year Ended December 31, 2015 2014 Net property and equipment: United States $ 17,443 $ 14,023 Singapore 2,476 2,549 Europe 890 1,265 Other countries 191 250 Total $ 21,000 $ 18,087 |
UNAUDITED QUARTERLY FINANCIAL48
UNAUDITED QUARTERLY FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | 2015 2014 Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter (in thousands, except per share amounts) Total revenue $ 95,573 $ 86,530 $ 88,966 $ 88,717 $ 93,530 $ 87,086 $ 85,432 $ 82,971 Total cost of goods sold 33,762 31,017 31,887 33,879 34,588 35,566 36,588 36,416 Net income (loss) 4,057 (5,336 ) 7,006 4,386 5,167 2,384 (911 ) (10,474 ) Basic net income (loss) per common share $ 0.05 $ (0.07 ) $ 0.09 $ 0.06 $ 0.07 $ 0.03 $ (0.01 ) $ (0.14 ) Diluted net income (loss) per common share $ 0.05 $ (0.07 ) $ 0.08 $ 0.06 $ 0.05 $ 0.03 $ (0.01 ) $ (0.14 ) |
NATURE OF OPERATIONS (Details)
NATURE OF OPERATIONS (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Business Acquisition [Line Items] | |
Payments to acquire businesses | $ 14 |
SUMMARY OF SIGNIFICANT ACCOUN50
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - FOREIGN CURRENCY (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounting Policies [Abstract] | |||
Foreign currency gains (losses) | $ (1) | $ (2.5) | $ 0.1 |
SUMMARY OF SIGNIFICANT ACCOUN51
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CASH EQUIVALENTS, AVAILABLE -FOR-SALE SECURITIES AND INVESTMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounting Policies [Abstract] | |||
Money market fund | $ 30,000 | $ 0 | |
Impairment of investment in limited partnership investment fund | $ 47 | $ 139 | $ 500 |
SUMMARY OF SIGNIFICANT ACCOUN52
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - INVENTORIES (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Inventory useful life maximum | 10 years |
SUMMARY OF SIGNIFICANT ACCOUN53
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - PROPERTY AND EQUIPMENT (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Equipment and furniture [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Equipment and furniture [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 7 years |
Leasehold Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Leasehold Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 15 years |
SUMMARY OF SIGNIFICATN ACCOUNTI
SUMMARY OF SIGNIFICATN ACCOUNTING POLICIES - GOODWILL, INTANGIBLE ASSETS AND OTHER LONG-LIVED ASSETS (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Accounting Policies [Abstract] | |
Weighted average period before next renewal or extension beginning | 1 year |
Weighted average period before next renewal or extension ending | 15 years |
Asset Impairment Charges | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN55
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ADVERTISING COSTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounting Policies [Abstract] | |||
Advertising costs recorded | $ 2.4 | $ 2.7 | $ 2.2 |
SUMMARY OF SIGNIFICANT ACCOUN56
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - SHARE-BASED COMPENSATION (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Requisite service period | 4 years |
SUMMARY OF SIGNIFICANT ACCOUN57
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - SALE OF PRODUCT LINE (Details) - USD ($) $ in Thousands | Oct. 11, 2013 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Accounting Policies [Abstract] | |||||
Proceeds from sale of product line | $ 11,800 | $ 0 | $ 0 | $ 11,832 | |
Carrying value of assets sold | $ 2,500 | ||||
Gain on sale of product line | $ 9,300 | $ 0 | $ 0 | $ 9,295 |
SUMMARY OF SIGNIFICANT ACCOUN58
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Components of accumulated other comprehensive income, net of tax [Abstract] | ||
Foreign currency translation adjustment | $ (10,606) | $ (2,933) |
Unrealized change on non-marketable securities | 1,151 | 1,219 |
Unrealized change on cash flow hedges | 75 | 1,102 |
Total accumulated other comprehensive income (loss), net of tax | $ (9,380) | $ (612) |
SUMMARY OF SIGNIFICANT ACCOUN59
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - RECLASSIFICATION OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |
Beginning balance | $ (612) |
(Decrease) / Increase | (5,480) |
Reclassification Adjustment | (3,288) |
Ending balance | (9,380) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |
Beginning balance | (612) |
Ending balance | (9,380) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Translation Adjustment [Member] | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |
Beginning balance | (2,933) |
(Decrease) / Increase | (7,574) |
Reclassification Adjustment | (99) |
Ending balance | (10,606) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member] | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |
Beginning balance | 1,219 |
(Decrease) / Increase | (68) |
Reclassification Adjustment | 0 |
Ending balance | 1,151 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |
Beginning balance | 1,102 |
(Decrease) / Increase | 2,162 |
Reclassification Adjustment | (3,189) |
Ending balance | $ 75 |
SUMMARY OF SIGNIFICANT ACCOUN60
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - NET LOSS PER COMMON SHARE (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Securities excluded from diluted earnings per common share (in shares) | 21,651 | 25,291 | 27,317 |
Employee stock options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Securities excluded from diluted earnings per common share (in shares) | 2,053 | 4,195 | 5,141 |
Employee stock purchase plan [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Securities excluded from diluted earnings per common share (in shares) | 25 | 121 | 153 |
Restricted stock and restricted stock units [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Securities excluded from diluted earnings per common share (in shares) | 1,716 | 3,118 | 4,161 |
Convertible notes [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Securities excluded from diluted earnings per common share (in shares) | 17,857 | 17,857 | 17,862 |
SUMMARY OF SIGNIFICANT ACCOUN61
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES NEW ACCOUNTING PRONOUNCEMENTS (Details) $ in Millions | Dec. 31, 2015USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 2.2 |
New Accounting Pronouncement, Early Adoption, Effect [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Deferred tax assets | $ 3.8 |
ACQUISITION (Narrative) (Detail
ACQUISITION (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2015 | May. 13, 2015 | Dec. 31, 2014 | |
Business Acquisition [Line Items] | ||||
Acquisition Date | May 13, 2015 | |||
Total purchase price | $ 15,000 | |||
Cash paid | 14,000 | |||
Holdback amount | $ 1,000 | |||
Intangible assets | $ 12,900 | |||
Net liabilities | (500) | |||
Goodwill | $ 154,539 | 2,600 | $ 156,178 | |
Acquisition-related costs | $ 500 | |||
In Process Research and Development [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 12,000 | |||
Useful life | 15 years | |||
Customer Relationships [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | $ 900 | |||
Useful life | 10 years |
ACQUISITION (Pro Forma Informat
ACQUISITION (Pro Forma Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Business Combinations [Abstract] | ||
Revenues | $ 360,171 | $ 349,386 |
Net income (loss) | $ 9,347 | $ (7,137) |
Basic earnings per share (in usd per share) | $ 0.12 | $ (0.10) |
Diluted earnings per share (in usd per share) | $ 0.12 | $ (0.10) |
CONCENTRATIONS OF RISK (Details
CONCENTRATIONS OF RISK (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Sales Revenue, Goods, Net [Member] | Geographic Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Revenue percentage from sales outside the U.S. | 46.00% | 51.00% | 51.00% |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Money market fund | $ 30,000 | $ 0 | |
Derivative assets | 341 | 1,258 | |
Non-marketable securities | 2,753 | 3,384 | $ 4,383 |
Total assets | 33,094 | 4,642 | |
Derivative liabilities | 82 | 0 | |
Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Money market fund | 30,000 | ||
Derivative assets | 0 | ||
Non-marketable securities | 0 | ||
Total assets | 30,000 | ||
Derivative liabilities | 0 | ||
Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Money market fund | 0 | 0 | |
Derivative assets | 341 | 1,258 | |
Non-marketable securities | 0 | 0 | |
Total assets | 341 | 1,258 | |
Derivative liabilities | 82 | 0 | |
Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Money market fund | 0 | 0 | |
Derivative assets | 0 | 0 | |
Non-marketable securities | 2,753 | 3,384 | |
Total assets | 2,753 | 3,384 | |
Derivative liabilities | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS FAIR VA
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS - Changes in Fair Value Measurement of Level 3 Items (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning Balance | $ 3,384 | $ 4,383 | |
Sales | (1,822) | (3,133) | |
Impairment | (47) | (139) | $ (500) |
Realized gain | 1,383 | 2,548 | |
Unrealized gain | (145) | (275) | |
Ending Balance | $ 2,753 | $ 3,384 | $ 4,383 |
FAIR VALUE MEASUREMENTS - Debt
FAIR VALUE MEASUREMENTS - Debt Obligations Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | |||
Impairment of investment in limited partnership investment fund | $ 47 | $ 139 | $ 500 |
4.00% Notes [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.00% | ||
Notes payable, fair value disclosure | $ 186,800 |
FINANCIAL INSTRUMENTS - Derivat
FINANCIAL INSTRUMENTS - Derivative Instruments Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Notional values of the Company's foreign currency forward contracts | $ 25,374 | $ 21,157 |
Maximum remaining maturity of foreign currency derivatives | 12 months | |
Maximum length of time hedged in cash flow hedge | 12 months | |
Unrealized change on cash flow hedges | $ 75 | $ 1,102 |
FINANCIAL INSTRUMENTS - Schedul
FINANCIAL INSTRUMENTS - Schedule of the Notional Amounts of Derivative Assets and Liabilities that Mature within 12 months (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Derivative [Line Items] | ||
Notional values of the Company's foreign currency forward contracts | $ 25,374 | $ 21,157 |
Euro [Member} | ||
Derivative [Line Items] | ||
Notional values of the Company's foreign currency forward contracts | 18,691 | 15,982 |
Japanese yen [Member] | ||
Derivative [Line Items] | ||
Notional values of the Company's foreign currency forward contracts | 2,387 | 3,391 |
British pound [Member] | ||
Derivative [Line Items] | ||
Notional values of the Company's foreign currency forward contracts | $ 4,296 | $ 1,784 |
FINANCIAL INSTRUMENTS - Sched70
FINANCIAL INSTRUMENTS - Schedule of Foreign Currency Derivatives Measured at Fair Value on the Consolidated Balance Sheets (Details) - Foreign Exchange Contract [Member] - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 341 | $ 1,258 |
Accrued expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | $ 82 | $ 0 |
FINANCIAL INSTRUMENTS - Gain (L
FINANCIAL INSTRUMENTS - Gain (Loss) by Hedging Relationship (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative designated as hedging instrument [Member] | |||
Effect of derivative instruments on statements of operations [Abstract] | |||
Net (loss) gain recognized in OCI, net of tax | $ (1,027) | $ 1,867 | $ (796) |
Net gain reclassified from accumulated OCI into Revenue | 3,701 | 1,303 | 800 |
Net gain reclassified from accumulated OCI into Other income, net | 0 | 55 | 158 |
Net gain recognized in Other income, net | 130 | 11 | 74 |
Derivative not designated as hedging instrument [Member] | |||
Effect of derivative instruments on statements of operations [Abstract] | |||
Net gain (loss) recognized in Other income, net | $ 0 | $ 59 | $ (122) |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Inventories [Abstract] | ||
Raw materials | $ 10,525 | $ 11,461 |
Work-in-process | 17,756 | 18,147 |
Finished goods | 28,057 | 27,024 |
Total | 56,338 | 56,632 |
Short-term portion | 54,131 | 50,676 |
Long-term portion | $ 2,207 | $ 5,956 |
INVENTORIES - Fair Value Step-U
INVENTORIES - Fair Value Step-Up in Basis (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2013 | |
Inventory Disclosure [Abstract] | ||
Amortization expense on the fair value step-up | $ 4.7 | $ 14.9 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment | $ 181,870 | $ 176,988 | ||
Less: accumulated depreciation and amortization | (160,870) | (158,901) | ||
Net property and equipment | 21,000 | 18,087 | ||
Depreciation expense | 7,000 | 8,500 | $ 13,800 | |
Construction-in-progress [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment | [1] | 2,433 | 3,589 | |
Equipment and furniture [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment | 133,215 | 124,789 | ||
Building and leasehold improvements [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment | $ 46,222 | $ 48,610 | ||
[1] | Includes assets received but not yet in service. |
GOODWILL AND INTANGIBLE ASSET75
GOODWILL AND INTANGIBLE ASSETS - Definite lived intangible assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Definite lived intangible assets [Abstract] | |||
Beginning Balance, Carrying Value, Gross | $ 252,956 | ||
(Decrease)/Increase, Carrying Value, Gross | [1] | (2,435) | |
Ending Balance, Carrying Value, Gross | 250,521 | ||
Beginning Balance, Accumulated Amortization | (146,773) | ||
(Increase)/Decrease, Accumulated Amortization | [2] | (13,350) | |
Ending Balance, Accumulated Amortization | (160,123) | ||
Beginning Balance, Intangible Assets, Net | 106,183 | ||
Ending Balance, Intangible Assets, Net | 90,398 | ||
Intangible Assets [Roll Forward] | |||
Beginning Balance, Carrying Value, Gross | 252,956 | ||
(Decrease)/Increase, Carrying Value, Gross | [1] | 9,565 | |
Ending Balance, Carrying Value, Gross | 262,521 | ||
Intangible assets, net | 102,398 | $ 106,183 | |
Decrease in carrying value related to foreign currency translation | 3,900 | ||
Decrease in accumulated amortization from foreign currency translation | 1,000 | ||
Customer Relationships [Member] | |||
Definite lived intangible assets [Abstract] | |||
Beginning Balance, Carrying Value, Gross | 75,229 | ||
(Decrease)/Increase, Carrying Value, Gross | [1] | (1,006) | |
Ending Balance, Carrying Value, Gross | 74,223 | ||
Beginning Balance, Accumulated Amortization | (27,301) | ||
(Increase)/Decrease, Accumulated Amortization | [2] | (4,551) | |
Ending Balance, Accumulated Amortization | (31,852) | ||
Beginning Balance, Intangible Assets, Net | 47,928 | ||
Ending Balance, Intangible Assets, Net | $ 42,371 | ||
Weighted Average Useful Life | 11 years | ||
Developed technologies [Member] | |||
Definite lived intangible assets [Abstract] | |||
Beginning Balance, Carrying Value, Gross | $ 75,194 | ||
(Decrease)/Increase, Carrying Value, Gross | [1] | (1,856) | |
Ending Balance, Carrying Value, Gross | 73,338 | ||
Beginning Balance, Accumulated Amortization | (29,367) | ||
(Increase)/Decrease, Accumulated Amortization | [2] | (4,592) | |
Ending Balance, Accumulated Amortization | (33,959) | ||
Beginning Balance, Intangible Assets, Net | 45,827 | ||
Ending Balance, Intangible Assets, Net | $ 39,379 | ||
Weighted Average Useful Life | 10 years | ||
Trademarks and tradenames [Member] | |||
Definite lived intangible assets [Abstract] | |||
Beginning Balance, Carrying Value, Gross | $ 17,793 | ||
(Decrease)/Increase, Carrying Value, Gross | [1] | (30) | |
Ending Balance, Carrying Value, Gross | 17,763 | ||
Beginning Balance, Accumulated Amortization | (9,778) | ||
(Increase)/Decrease, Accumulated Amortization | [2] | (3,365) | |
Ending Balance, Accumulated Amortization | (13,143) | ||
Beginning Balance, Intangible Assets, Net | 8,015 | ||
Ending Balance, Intangible Assets, Net | $ 4,620 | ||
Weighted Average Useful Life | 5 years | ||
Other contractual agreements [Member] | |||
Definite lived intangible assets [Abstract] | |||
Beginning Balance, Carrying Value, Gross | $ 2,978 | ||
(Decrease)/Increase, Carrying Value, Gross | [1] | (89) | |
Ending Balance, Carrying Value, Gross | 2,889 | ||
Beginning Balance, Accumulated Amortization | (2,978) | ||
(Increase)/Decrease, Accumulated Amortization | [2] | 89 | |
Ending Balance, Accumulated Amortization | (2,889) | ||
Beginning Balance, Intangible Assets, Net | 0 | ||
Ending Balance, Intangible Assets, Net | $ 0 | ||
Weighted Average Useful Life | 2 years | ||
Licenses [Member] | |||
Definite lived intangible assets [Abstract] | |||
Beginning Balance, Carrying Value, Gross | $ 81,762 | ||
(Decrease)/Increase, Carrying Value, Gross | [1] | 546 | |
Ending Balance, Carrying Value, Gross | 82,308 | ||
Beginning Balance, Accumulated Amortization | (77,349) | ||
(Increase)/Decrease, Accumulated Amortization | [2] | (931) | |
Ending Balance, Accumulated Amortization | (78,280) | ||
Beginning Balance, Intangible Assets, Net | 4,413 | ||
Ending Balance, Intangible Assets, Net | $ 4,028 | ||
Weighted Average Useful Life | 14 years | ||
In Process Research and Development [Member] | |||
Indefinite-lived Intangible Assets [Roll Forward] | |||
Beginning Balance, Carrying Value, Gross | $ 0 | ||
(Decrease)/Increase, Carrying Value, Gross | [1] | 12,000 | |
Ending Balance, Carrying Value, Gross | $ 12,000 | ||
[1] | Includes additions in connection with the Acquisition in 2015 and a decrease in carrying value of $3.9 million related to foreign currency translation. | ||
[2] | The impact of foreign currency translation on accumulated amortization was a decrease of $1.0 million. |
GOODWILL AND INTANGIBLE ASSET76
GOODWILL AND INTANGIBLE ASSETS - Expected future annual amortization expense (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,015 | $ 13,433 | |
2,016 | 11,764 | |
2,017 | 10,189 | |
2,018 | 10,179 | |
2,019 | 10,179 | |
Thereafter | 34,654 | |
Total | $ 90,398 | $ 106,183 |
GOODWILL AND INTANGIBLE ASSET77
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2012USD ($) | |
eBio [Member] | |
Goodwill [Line Items] | |
Goodwill acquired during period | $ 157.1 |
GOODWILL AND INTANGIBLE ASSET78
GOODWILL AND INTANGIBLE ASSETS GOODWILL AND INTANGIBLE ASSETS - Schedule of Goodwill (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Period Increase (Decrease) | $ 2,559 |
Goodwill [Roll Forward] | |
Beginning Balance | 156,178 |
Effects of foreign currency change | (4,198) |
Ending Balance | $ 154,539 |
ACCOUNTS PAYABLE AND ACCRUED 79
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 10,904 | $ 10,832 |
Accrued compensation and related liabilities | 29,975 | 27,655 |
Accrued interest | 102 | 111 |
Accrued taxes | 4,574 | 5,725 |
Accrued legal | 596 | 490 |
Accrued audit | 750 | 343 |
Accrued warranties | 1,243 | 913 |
Accrued royalties | 2,527 | 2,600 |
Other | 5,366 | 4,394 |
Total | $ 56,037 | $ 53,063 |
COMMITMENTS - Operating Lease N
COMMITMENTS - Operating Lease Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Renewal options period from | 2 years | ||
Renewal options period to | 5 years | ||
Rent expense related to operating leases | $ 10.3 | $ 10.1 | $ 10.6 |
Security Deposit | $ 1.4 |
COMMITMENTS - Schedule of futur
COMMITMENTS - Schedule of future minimum lease obligations (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,015 | $ 9,435 |
2,016 | 9,877 |
2,017 | 8,948 |
2,018 | 9,017 |
2,019 | 9,223 |
Thereafter | 20,073 |
Total | $ 66,573 |
COMMITMENTS - Non-Cancelable Su
COMMITMENTS - Non-Cancelable Supply Agreements (Details) $ in Millions | Dec. 31, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Inventory supply agreements | $ 11 |
WARRANTIES (Details)
WARRANTIES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Changes in Entity's Product Warranty Liability [Abstract] | ||
Balance at beginning of the period | $ 912 | $ 1,697 |
Additions charged to cost of product sales | 1,603 | 623 |
Repairs and replacements | (1,272) | (1,225) |
Adjustments | (183) | |
Balance at the end of the period | $ 1,243 | $ 912 |
LONG-TERM DEBT OBLIGATIONS LONG
LONG-TERM DEBT OBLIGATIONS LONG TERM OBLIGATIONS, Schedule of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Total debt | $ 124,088 | $ 127,950 |
Less: current portion of long-term debt | 4,000 | 4,000 |
Total long-term debt | 120,088 | 123,950 |
Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 19,088 | 0 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 0 | 22,950 |
Convertible Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 105,000 | $ 105,000 |
LONG-TERM DEBT OBLIGATIONS - Te
LONG-TERM DEBT OBLIGATIONS - Term Loan and Revolving Credit Facility - Narrative (Details) | Jul. 28, 2014USD ($) | Oct. 17, 2013USD ($) | Jun. 25, 2012USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Debt Instrument [Line Items] | |||||
Original aggregate principal amount of term loan | $ 85,000,000 | ||||
Original revolving credit facility | 15,000,000 | ||||
Total debt | $ 124,088,000 | $ 127,950,000 | |||
Debt Instrument, Covenant Compliance | As of December 31, 2014, the Company was in compliance with the covenants. | ||||
Debt issuance cost related to term loan | $ 4,500,000 | ||||
Amortization period for debt issuance cost term loan | 5 years | ||||
Interest expense incurred | $ 900,000 | 1,600,000 | |||
Outstanding principal balance of term loan as of balance sheet date | 4,000,000 | 4,000,000 | |||
Long-term Debt | $ 19,088,000 | ||||
Debt Instrument, Unused Borrowing Capacity, Amount | $ 50,000,000 | ||||
4.00% Convertible Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 4.00% | ||||
Refinanced Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Original aggregate principal amount of term loan | $ 38,000,000 | ||||
Debt issuance cost | $ 800,000 | ||||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt term | 5 years | ||||
Original aggregate principal amount of term loan | $ 10,000,000 | ||||
Total debt | $ 0 | 22,950,000 | |||
Long-term Debt | 10,000,000 | ||||
Senior Secured Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Minimum prepayment percentage of excess cash flow | 50.00% | ||||
Minimum prepayment percentage of net cash proceeds of issuances or incurrences of debt obligations | 100.00% | ||||
Minimum prepayment percentage of net proceeds of asset sales over threshold amount | 100.00% | ||||
Net proceeds of asset sales threshold to trigger prepayment | $ 2,500,000 | ||||
Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Amortization Year Two | 10.00% | ||||
Debt term | 5 years | ||||
Total debt | $ 19,088,000 | $ 0 | |||
Debt issuance cost | $ 2,500,000 | ||||
Annual amortization | 10.00% | ||||
Amortization fifth year | 60.00% | ||||
Long-term Debt | $ 38,000,000 | ||||
Debt Instrument, Amortization Year Three | 10.00% | ||||
Debt Instrument, Amortization Year Four | 10.00% | ||||
Term Loan and Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Original aggregate principal amount of term loan | $ 100,000,000 | ||||
Federal Funds Rate [Member] | Senior Secured Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.50% | ||||
London Interbank Offered Rate (LIBOR) [Member] | Debt Instrument, Redemption, Period One [Member] | |||||
Debt Instrument [Line Items] | |||||
Sum of LIBOR interest period advance determination | 1 month | ||||
London Interbank Offered Rate (LIBOR) [Member] | Debt Instrument, Redemption, Period Two [Member] | |||||
Debt Instrument [Line Items] | |||||
Sum of LIBOR interest period advance determination | 2 months | ||||
London Interbank Offered Rate (LIBOR) [Member] | Debt Instrument, Redemption, Period Three [Member] | |||||
Debt Instrument [Line Items] | |||||
Sum of LIBOR interest period advance determination | 3 months | ||||
London Interbank Offered Rate (LIBOR) [Member] | Debt Instrument, Redemption, Period Four [Member] | |||||
Debt Instrument [Line Items] | |||||
Sum of LIBOR interest period advance determination | 6 months | ||||
London Interbank Offered Rate (LIBOR) [Member] | Senior Secured Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.00% | ||||
Sum of LIBOR interest period | 1 month | ||||
Minimum [Member] | Senior Secured Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest coverage ratio | 3.5 | ||||
Senior Leverage Ratio | 1.20 | ||||
Minimum [Member] | Base Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.50% | ||||
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.50% | ||||
Maximum [Member] | Senior Secured Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior Leverage Ratio | 1.75 | ||||
Maximum [Member] | Base Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.75% | ||||
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.75% |
LONG-TERM DEBT OBLIGATIONS LO86
LONG-TERM DEBT OBLIGATIONS LONG-TERM DEBT OBLIGATIONS - Senior Credit Facility (Details) | Oct. 27, 2015USD ($) | Oct. 26, 2015USD ($) | Jul. 28, 2014 | Jun. 25, 2012USD ($) | Oct. 31, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 85,000,000 | |||||||
Original revolving credit facility | $ 15,000,000 | |||||||
Debt Instrument, Covenant Compliance | As of December 31, 2014, the Company was in compliance with the covenants. | |||||||
Interest expense | $ 6,609,000 | $ 6,373,000 | $ 12,711,000 | |||||
Line of Credit [Member] | Senior Credit Facility Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt term | 5 years | |||||||
Debt instrument, face amount | $ 100,000,000 | |||||||
Optional increase in maximum borrowing capacity | $ 50,000,000 | |||||||
Interest rate at period end | 2.07% | |||||||
Threshold trigger for mandatory prepayments | 105.00% | |||||||
Debt Instrument, Covenant Compliance | As of December 31, 2015, the Company was in compliance with the covenants. | |||||||
Proceeds from lines of credit | $ 20,000,000 | |||||||
Unamortized discount | 100,000 | |||||||
Deferred financing costs | $ 200,000 | |||||||
Interest expense | $ 100,000 | |||||||
Line of Credit [Member] | Senior Credit Facility Agreement [Member] | Federal Funds Effective Swap Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 0.50% | |||||||
Line of Credit [Member] | Senior Credit Facility Agreement [Member] | Eurodollar [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.00% | |||||||
Term Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt term | 5 years | |||||||
Write off of debt issuance costs | $ 700,000 | |||||||
Revolving Credit Facility [Member] | Line of Credit [Member] | Senior Credit Facility Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Original revolving credit facility | $ 100,000,000 | |||||||
Interest Rate Option One [Member] | Line of Credit [Member] | Senior Credit Facility Agreement [Member] | Base Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 0.50% | |||||||
Interest Rate Option One [Member] | Line of Credit [Member] | Senior Credit Facility Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.50% | |||||||
Interest Rate Option Two [Member] | Line of Credit [Member] | Senior Credit Facility Agreement [Member] | Base Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.00% | |||||||
Interest Rate Option Two [Member] | Line of Credit [Member] | Senior Credit Facility Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 2.00% | |||||||
Minimum [Member] | Base Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.50% | |||||||
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 2.50% | |||||||
Minimum [Member] | Line of Credit [Member] | Senior Credit Facility Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest coverage ratio | 3.50 | |||||||
Maximum [Member] | Base Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.75% | |||||||
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 2.75% | |||||||
Maximum [Member] | Line of Credit [Member] | Senior Credit Facility Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Initial consolidated leverage ratio | 3.50 | |||||||
Subsequent consolidated leverage ratio | 2.75 |
LONG-TERM DEBT OBLIGATIONS - Sc
LONG-TERM DEBT OBLIGATIONS - Schedule of Maturities of long-term Debt (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Debt Disclosure [Abstract] | |
2,015 | $ 0 |
2,016 | 0 |
2,017 | 0 |
2,018 | 0 |
2,019 | 19,088 |
Total | $ 19,088 |
LONG-TERM DEBT OBLIGATIONS - 4.
LONG-TERM DEBT OBLIGATIONS - 4.00% Convertible Senior Notes (Details) - 4.00% Convertible Senior Notes [Member] | Jun. 25, 2012USD ($)$ / sharesshares | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015USD ($) |
Debt Instrument [Line Items] | ||||
Senior Notes | $ 105,000,000 | $ 105,000,000 | ||
4.00%, Interest Rate, Stated Percentage | 4.00% | |||
Debt issuance costs | $ 3,900,000 | |||
Proceeds from issuance of 4.00% convertible senior notes | $ 101,100,000 | |||
Amortization period for debt issuance cost related to convertible notes | 7 years | |||
Conversion ration (in shares) | 170.0319 | |||
Principal amount of convertible notes | $ 1,000 | |||
Maximum number of shares upon conversion of the 4.00% Notes | shares | 17,857,143 | |||
Conversion price of convertible debt | $ / shares | $ 5.88 | |||
Percentage of common stock above conversion price (in hundredths) | 130.00% | |||
Number of consecutive trading days within measurement period | 20 days | |||
Number of consecutive trading days on which trading price is examined for triggering of conversion | 30 days | |||
Number of trading days to trigger measurement period within date company provides notice of redemption | 5 days | |||
Redemption price percentage of principal | 100.00% | |||
Interest expense | $ 4,800,000 | $ 4,800,000 |
STOCKHOLDERS' EQUITY AND SHAR89
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION EXPENSE - Convertible Preferred Stock Narrative (Details) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Stockholders Equity And Share Based Compensation Expense [Abstract] | ||
Convertible preferred stock, shares authorized (in share) | 5,000,000 | 5,000,000 |
Convertible preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Convertible stock, shares issued (in shares) | 0 | 0 |
Convertible preferred stock, shares outstanding (in shares) | 0 | 0 |
STOCKHOLDERS' EQUITY AND SHAR90
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION EXPENSE - At the Market Offering (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Nov. 18, 2014 | |
Stockholders Equity And Share Based Compensation Expense [Abstract] | ||||
Average Share Price | $ 12.05 | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Aggregate amount of offer | $ 50,000 | |||
Stockholders' Equity, Commission Expense on Sale of Stock | 3.00% | |||
Stock Issued During Period, Shares, New Issues | 3.8 | |||
Net Proceeds from Issuance of Common Stock | $ 44,700 | $ 44,773 |
STOCKHOLDERS' EQUITY AND SHAR91
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION EXPENSE - Share-based Compensation Plans Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Jun. 30, 2010 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options issue price as percentage of fair value | 100.00% | |
Stock options issue price as percentage of fair value, certain circumstances | 110.00% | |
Options available for future grants (in shares) | 5,189,000 | |
Unrecognized share-based compensation expense | $ 18.4 | |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition, Stock Options | 2 years 1 month 6 days | |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition, Restricted Stock | 2 years 1 month 25 days | |
Two Thousand Fifteen CEO Grants [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized share-based compensation expense | $ 1.1 | |
Stock Plan 1998 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiration period - ending | 10 years | |
Number of shares authorized under plan (in shares) | 3,600,000 | |
Stock Plan 2000 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized under plan (in shares) | 16,200,000 | |
Additional shares authorized (in shares) | 4,500,000 | |
Stock Plan 2012 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized under plan (in shares) | 2,000,000 | |
Employee stock options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiration period - beginning | 7 years | |
Expiration period - ending | 10 years | |
Vesting period | 4 years | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting rights (in shares) | 1 | |
Restricted Stock [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Restricted Stock [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 4 years | |
Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized share-based compensation expense | $ 2 | |
Performance Shares [Member] | Two Thousand Fifteen CEO Grants [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected grants to be achieved | 156,023 |
STOCKHOLDERS' EQUITY AND SHAR92
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION EXPENSE - Share-based compensation expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Recognized share-based compensation expense [Abstract] | |||
Total stock-based compensation expense | $ 14,985 | $ 12,411 | $ 7,727 |
Costs of product sales [Member] | |||
Recognized share-based compensation expense [Abstract] | |||
Total stock-based compensation expense | 2,620 | 2,500 | 1,002 |
Research and development [Member] | |||
Recognized share-based compensation expense [Abstract] | |||
Total stock-based compensation expense | 1,951 | 2,266 | 1,331 |
Selling, general and administrative [Member] | |||
Recognized share-based compensation expense [Abstract] | |||
Total stock-based compensation expense | $ 10,414 | $ 7,645 | $ 5,394 |
STOCKHOLDERS' EQUITY AND SHAR93
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION EXPENSE - Fair value of options estimated at the date of grant with weighted-average assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stockholders Equity And Share Based Compensation Expense [Abstract] | |||
Risk free interest rate | 1.40% | 1.60% | 1.00% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility | 58.00% | 72.00% | 68.00% |
Expected option term | 4 years 7 months 6 days | 4 years 7 months 6 days | 4 years 7 months 6 days |
STOCKHOLDERS' EQUITY AND SHAR94
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION EXPENSE - Stock Options Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stockholders Equity And Share Based Compensation Expense [Abstract] | |||
Term of historical trend | 10 years | ||
Weighted average grant date fair value of options granted (in dollars per share) | $ 5.31 | $ 4.59 | $ 2.42 |
Total intrinsic value of options exercised | $ 5.1 | $ 2.8 | $ 0.8 |
STOCKHOLDERS' EQUITY AND SHAR95
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION EXPENSE - Stock Options Plan Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Options, Outstanding [Roll Forward] | |
Outstanding at beginning of the period (in shares) | shares | 4,195 |
Grants (in shares) | shares | 504 |
Exercises (in shares) | shares | (1,138) |
Forfeitures or expirations (in shares) | shares | (156) |
Outstanding at end of the period (in shares) | shares | 3,405 |
Exercisable (in shares) | shares | 2,091 |
Vested and expected to vest (in shares) | shares | 3,178 |
Weighted Average Exercise Price Per Share [Roll Forward] | |
Outstanding at beginning of the period (in dollars per share) | $ / shares | $ 6.23 |
Grants (in dollars per share) | $ / shares | 11 |
Exercises (in dollars per share) | $ / shares | 7.24 |
Forfeitures or expirations (in dollars per share) | $ / shares | 9.36 |
Outstanding at end of the period (in dollars per share) | $ / shares | 6.46 |
Exercisable (in dollars per share) | $ / shares | 5.65 |
Vested and expected to vest (in dollars per share) | $ / shares | $ 6.31 |
Weighted-Average Remaining Contractual Terms [Abstract] | |
Outstanding at end of the period | 3 years 7 months 10 days |
Exercisable | 2 years 6 months 29 days |
Vested and expected to vest | 3 years 5 months 19 days |
Aggregate Intrinsic Value [Abstract] | |
Outstanding at end of the period | $ | $ 13,662 |
Exercisable | $ | 9,995 |
Vested and expected to vest | $ | $ 13,184 |
STOCKHOLDERS' EQUTIY AND SHARE-
STOCKHOLDERS' EQUTIY AND SHARE-BASED COMPENSATION EXPENSE - Summary of outstanding and exercisable options (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Options Outstanding (in shares) | shares | 3,405 |
Options Outstanding, Weighted-Average Remaining Contractual Life (in years) | 3 years 7 months 10 days |
Option Outstanding, Weighted-Average Exercise Price Per Share (in dollars per share) | $ 6.46 |
Number of Option Exercisable (in shares) | shares | 2,091 |
Option Exercisable, Weighted-Average Exercise Price Per Share (in dollars per share) | $ 5.65 |
Range $2.70 - 3.91 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range Exercise Price, Lower Range Limit (in dollars per share) | 2.93 |
Range of Exercise Price, Upper Range Limit (in dollars per share) | $ 3.91 |
Number of Options Outstanding (in shares) | shares | 904 |
Options Outstanding, Weighted-Average Remaining Contractual Life (in years) | 3 years 6 months 11 days |
Option Outstanding, Weighted-Average Exercise Price Per Share (in dollars per share) | $ 3.72 |
Number of Option Exercisable (in shares) | shares | 574 |
Option Exercisable, Weighted-Average Exercise Price Per Share (in dollars per share) | $ 3.68 |
Range $4.16 - 5.29 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range Exercise Price, Lower Range Limit (in dollars per share) | 4.16 |
Range of Exercise Price, Upper Range Limit (in dollars per share) | $ 5.07 |
Number of Options Outstanding (in shares) | shares | 709 |
Options Outstanding, Weighted-Average Remaining Contractual Life (in years) | 2 years 5 months 5 days |
Option Outstanding, Weighted-Average Exercise Price Per Share (in dollars per share) | $ 4.45 |
Number of Option Exercisable (in shares) | shares | 642 |
Option Exercisable, Weighted-Average Exercise Price Per Share (in dollars per share) | $ 4.46 |
Range $5.31 - 6.71 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range Exercise Price, Lower Range Limit (in dollars per share) | 5.21 |
Range of Exercise Price, Upper Range Limit (in dollars per share) | $ 7.55 |
Number of Options Outstanding (in shares) | shares | 857 |
Options Outstanding, Weighted-Average Remaining Contractual Life (in years) | 3 years 4 months 13 days |
Option Outstanding, Weighted-Average Exercise Price Per Share (in dollars per share) | $ 6.48 |
Number of Option Exercisable (in shares) | shares | 573 |
Option Exercisable, Weighted-Average Exercise Price Per Share (in dollars per share) | $ 6.22 |
Range $7.05 - 10.29 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range Exercise Price, Lower Range Limit (in dollars per share) | 7.62 |
Range of Exercise Price, Upper Range Limit (in dollars per share) | $ 11.88 |
Number of Options Outstanding (in shares) | shares | 834 |
Options Outstanding, Weighted-Average Remaining Contractual Life (in years) | 4 years 9 months 29 days |
Option Outstanding, Weighted-Average Exercise Price Per Share (in dollars per share) | $ 9.62 |
Number of Option Exercisable (in shares) | shares | 266 |
Option Exercisable, Weighted-Average Exercise Price Per Share (in dollars per share) | $ 8.27 |
Range $10.52 - 37.22 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range Exercise Price, Lower Range Limit (in dollars per share) | 12.24 |
Range of Exercise Price, Upper Range Limit (in dollars per share) | $ 36.16 |
Number of Options Outstanding (in shares) | shares | 101 |
Options Outstanding, Weighted-Average Remaining Contractual Life (in years) | 4 years 5 months 8 days |
Option Outstanding, Weighted-Average Exercise Price Per Share (in dollars per share) | $ 18.56 |
Number of Option Exercisable (in shares) | shares | 36 |
Option Exercisable, Weighted-Average Exercise Price Per Share (in dollars per share) | $ 29.96 |
STOCKHOLDERS' EQUITY AND SHAR97
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION EXPENSE - Reserved Shares Narrative (Details) - shares shares in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Stockholders Equity And Share Based Compensation Expense [Abstract] | ||
Options outstanding | 3,405 | 4,195 |
Options available for future grants | 5,189 | |
Convertible notes | 17,857 | |
Total at December 31, 2015 | 26,451 |
STOCKHOLDERS' EQUITY AND SHAR98
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION EXPENSE - Summary of Restricted Stock Awards Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Weighted Average Grant Date Fair Value [Roll Forward] | ||
Restricted stock awards vested, Fair value | $ 6 | $ 5.9 |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Non-vested stock outstanding at beginning of the period (in shares) | 2,395 | |
Granted (in shares) | 1,396 | |
Vested (in shares) | (1,000) | |
Forfeited (in shares) | (265) | |
Non-vested stock outstanding at end of the period (in shares) | 2,526 | 2,395 |
Weighted Average Grant Date Fair Value [Roll Forward] | ||
Non-vested stock outstanding at the beginning of the period (in dollars per share) | $ 6.30 | |
Granted (in dollars per share) | 10.04 | |
Vested (in dollars per share) | 6.03 | |
Forfeited (in dollars per share) | 7.39 | |
Non-vested stock outstanding at end of the period (in dollars per share) | $ 8.36 | $ 6.30 |
STOCKHOLDERS' EQUITY AND SHAR99
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION EXPENSE - Performance-Based Awards Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2011 | Nov. 18, 2014 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stockholders' Equity, Commission Expense on Sale of Stock | 3.00% | ||||||
Stock Issued During Period, Shares, New Issues | 3,800,000 | ||||||
Restricted stock awards vested, Fair value | $ 6,000 | $ 5,900 | |||||
Requisite service period | 4 years | ||||||
Unrecognized share-based compensation expense | $ 18,400 | ||||||
Average Share Price | $ 12.05 | ||||||
Issuance of common stock in connection with at the market offerings | $ 44,700 | 44,773 | |||||
Two Thousand Fifteen CEO Grants [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized share-based compensation expense | $ 1,100 | ||||||
2014 Program [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Requisite service period | 12 months | ||||||
Options granted | 564,100 | ||||||
Options fair value (in dollars per share) | $ 7.71 | ||||||
Expected grants to be achieved | 241,600 | 251,800 | |||||
Unrecognized share-based compensation expense | $ 100 | ||||||
2014 Program [Member] | Minimum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 2 years | ||||||
2014 Program [Member] | Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 4 years | ||||||
Performance Shares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock awards vested, Fair value | $ 2,400 | $ 1,600 | |||||
Unrecognized share-based compensation expense | $ 2,000 | ||||||
Recognition period | 4 years | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 9.84 | $ 6.83 | |||||
Performance Shares [Member] | Two Thousand Fifteen CEO Grants [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Requisite service period | 12 months | ||||||
Options granted | 156,023 | ||||||
Expected grants to be achieved | 156,023 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 12.37 | ||||||
Performance Shares [Member] | 2011 CEO Grants [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Requisite service period | 12 months | ||||||
Options granted | 42,000 | 25,000 | 60,000 | 240,000 | |||
Options fair value (in dollars per share) | $ 4.67 | $ 4.63 | $ 6.71 | ||||
Expected grants to be achieved | 27,000 | ||||||
Expected grants to be achieved fair value (in dollars per share) | $ 7.22 | ||||||
Performance Shares [Member] | 2013 Program [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Requisite service period | 12 months | ||||||
Options granted | 104,500 | 340,000 | |||||
Options fair value (in dollars per share) | $ 3.84 | ||||||
Expected grants to be achieved | 25,000 | 75,000 | |||||
Unrecognized share-based compensation expense | $ 100 | ||||||
Performance Shares [Member] | 2013 Program [Member] | Minimum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 2 years | ||||||
Performance Shares [Member] | 2013 Program [Member] | Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 4 years | ||||||
Performance Shares [Member] | Two Thousand Fifteen Program [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Requisite service period | 12 months | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not Yet Recognized Maximum Period for Recognition | 3 years | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 243,000 | ||||||
Expected grants to be achieved | 243,000 | ||||||
Unrecognized share-based compensation expense | $ 900 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 11.88 |
STOCKHOLDERS' EQUITY AND SHA100
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION EXPENSE - Performance shares award outstanding activity (Details) - Performance Shares [Member] shares in Thousands | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Non-vested stock outstanding at beginning of the period (in shares) | shares | 723 |
Granted (in shares) | shares | 399 |
Vested (in shares) | shares | (354) |
Forfeited (in shares) | shares | (65) |
Non-vested stock outstanding at end of the period (in shares) | shares | 703 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Non-vested stock outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 6.83 |
Granted (in dollars per share) | $ / shares | 12.07 |
Vested (in dollars per share) | $ / shares | 6.85 |
Forfeited (in dollars per share) | $ / shares | 6.38 |
Non-vested stock outstanding at end of the period (in dollars per share) | $ / shares | $ 9.84 |
STOCKHOLDERS' EQUITY AND SHA101
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION EXPENSE - Employee Stock Purchase Plan Narrative (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)participantpurchase_period$ / sharesshares | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Stockholders Equity And Share Based Compensation Expense [Abstract] | |||
Shares reserve for issuance under Employee stock purchase plan (in shares) | 7,000,000 | ||
ESPP purchase consideration as percentage of market value (in hundredths) | 85.00% | ||
ESPP offering period | 12 months | ||
ESPP number of purchase periods per offering period | purchase_period | 2 | ||
Number of months in each purchase period | 6 months | ||
Look-back period for ESPP | 12 months | ||
Percentage of gross compensation through payroll deductions employees can invest (in hundredths) | 15.00% | ||
Number of shares of common stock employee permitted to purchase (in shares) | 750 | ||
Number of participants in ESPP | participant | 485 | ||
Number of shares issued ESPP (in shares) | 400,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased | $ / shares | $ 7.24 | ||
Allocated Share-based Compensation Expense | $ | $ 1.5 | $ 1.8 | $ 0.7 |
STOCKHOLDERS' EQUITY AND SHA102
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION EXPENSE - Assumptions Used to Value Employees Stock Purchase Rights (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Stockholders Equity And Share Based Compensation Expense [Abstract] | ||
Risk free interest rate | 0.23% | 0.07% |
Expected dividend yield | 0.00% | 0.00% |
Expected volatility | 58.00% | 72.00% |
Expected term (in years) | 8 months 27 days | 9 months |
LEGAL PROCEEDINGS Legal Proceed
LEGAL PROCEEDINGS Legal Proceedings (Details) - Settled Litigation [Member] - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2015 | Mar. 31, 2014 | |
Southern District of New York [Member] | ||
Loss Contingencies [Line Items] | ||
Litigation Settlement, Amount | $ 5.1 | |
Delaware [Member] | ||
Loss Contingencies [Line Items] | ||
Litigation Settlement, Amount | $ 10 |
INCOME TAXES - Components of co
INCOME TAXES - Components of consolidated loss before income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
(Loss) Income Before Income Taxes: | |||
U.S. | $ 11,156 | $ (1,992) | $ (11,240) |
Foreign | (310) | (1,606) | (3,926) |
Income (loss) before income taxes | $ 10,846 | $ (3,598) | $ (15,166) |
INCOME TAXES - Provision (benef
INCOME TAXES - Provision (benefit) for income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | |||
Federal | $ 0 | $ (151) | $ 0 |
State | (261) | (91) | (383) |
Foreign | 1,456 | 1,663 | 2,652 |
Subtotal | 1,195 | 1,421 | 2,269 |
Deferred: | |||
Federal | 0 | 0 | (268) |
State | 0 | 0 | (21) |
Foreign | (462) | (1,185) | (819) |
Subtotal | (462) | (1,185) | (1,108) |
Income tax provision | $ 733 | $ 236 | $ 1,161 |
INCOME TAXES - Effective Tax Ra
INCOME TAXES - Effective Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory income tax rate (in hundredths) | 35.00% | ||
Income tax reconciliation [Abstract] | |||
Tax at federal statutory rate | $ 3,796 | $ (1,259) | $ (5,308) |
State taxes, net | 1,246 | (1,285) | (1,289) |
Non-deductible stock compensation | 1,252 | 1,065 | 327 |
Foreign rate differential | 1,078 | 1,567 | 3,245 |
Research credits | (741) | (548) | (930) |
Change in valuation allowance | (6,050) | 556 | 4,961 |
Other | 152 | 140 | 155 |
Income tax provision | 733 | 236 | $ 1,161 |
Change in valuation amount | $ 0 | $ 200 |
INCOME TAXES - Significant comp
INCOME TAXES - Significant components of the deferred tax assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 49,313 | $ 61,308 |
Tax credit carryforwards | 60,524 | 56,575 |
Deferred revenue | 1,036 | 1,849 |
Capitalized research and development costs | 497 | 245 |
Intangibles | 15,380 | 17,474 |
Share-based compensation | 5,049 | 4,371 |
Accrued compensation | 5,472 | 4,625 |
Accrued warranty | 474 | 347 |
Inventory reserves | 6,501 | 7,224 |
Reserves and other | 8,239 | 7,178 |
Depreciation and amortization | 5,202 | 6,080 |
Other, net | 4,255 | 9,463 |
Total deferred tax assets | 161,942 | 176,739 |
Valuation allowance for deferred tax assets | (126,252) | (137,957) |
Net deferred tax assets | 35,690 | 38,782 |
Net deferred tax liabilities: | ||
Acquired intangible assets | (29,587) | (33,735) |
Acquired tangible assets | 0 | (78) |
Cancellation of debt | (5,854) | (7,701) |
Foreign earnings | (4,520) | (2,734) |
Other, net | (1,457) | (1,471) |
Total deferred tax liabilities | (41,418) | (45,719) |
Net deferred tax liabilities | $ (5,728) | $ (6,937) |
INCOME TAXES - Operating Loss C
INCOME TAXES - Operating Loss Carryforwards Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 160,300 | |
Increase (decrease) in valuation allowance | 0 | $ (200) |
Valuation allowance attributable to tax benefits of share based compensation | 24,700 | |
Valuation allowance | 126,252 | 137,957 |
Tax benefits related to share based compensation not included in the deferred tax assets | 10,100 | |
Undistributed earnings of foreign subsidiaries | $ 2,000 | |
Tax holidays and tax incentive programs expiration | 12/31/2016 | |
United States and Certain Foreign [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Increase (decrease) in valuation allowance | $ 11,700 | $ 2,300 |
Federal [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Research and development tax credit carryforwards | 26,700 | |
State [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 77,000 | |
Research and development tax credit carryforwards | $ 45,600 |
INCOME TAXES - Uncertain Tax Po
INCOME TAXES - Uncertain Tax Positions (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Unrecognized tax benefits [Abstract] | |||
Unrecognized tax benefits, beginning of year | $ 21,914,000 | $ 22,372,000 | $ 20,413,000 |
Additions for tax positions of prior years | 4,465,000 | 1,025,000 | 2,003,000 |
Additions for tax positions of current year | 2,164,000 | 778,000 | 718,000 |
Decreases for tax positions of prior years | (849,000) | (1,808,000) | (5,000) |
Settlements | (354,000) | 0 | 0 |
Lapse in statute of limitations | (331,000) | (453,000) | (757,000) |
Impact of foreign currency, other | (85,000) | 0 | 0 |
Unrecognized tax benefits, end of year | 26,924,000 | 21,914,000 | $ 22,372,000 |
Unrecognized tax benefits that would impact income tax expense | 4,600,000 | $ 5,000,000 | |
Accrued interest and penalties | 100,000 | ||
Income taxes payable noncurrent | 1,200,000 | ||
Minimum [Member] | |||
Unrecognized tax benefits [Abstract] | |||
Reserves reversed related to uncertain tax positions | 0 | ||
Maximum [Member] | |||
Unrecognized tax benefits [Abstract] | |||
Reserves reversed related to uncertain tax positions | $ 2,500,000 |
SEGMENT AND GEOGRAPHIC INFOR110
SEGMENT AND GEOGRAPHIC INFORMATION - Revenue and Income (Loss) From Operations (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015USD ($)segmentbusiness_unit | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |||
Segment Reporting Information [Line Items] | |||||
Number of reportable segments | segment | 2 | ||||
Number of business units | business_unit | 4 | ||||
Revenue | $ 359,786 | $ 349,019 | [1] | $ 330,399 | [1] |
Gross Profit | 229,241 | 205,861 | 181,038 | ||
Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 359,786 | 349,019 | 330,399 | ||
Operating Segments [Member] | Affymetrix Core [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 261,733 | 256,525 | 241,450 | ||
Gross Profit | 168,526 | 155,786 | 144,160 | ||
Operating Segments [Member] | eBioscience [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 98,053 | 92,494 | 88,949 | ||
Gross Profit | $ 60,715 | $ 50,075 | $ 36,878 | ||
[1] | The revenue by region for the years ended December 31, 2014 and 2013 have been corrected from amounts previously reported. |
SEGMENT AND GEOGRAPHIC INFOR111
SEGMENT AND GEOGRAPHIC INFORMATION - Revenue by Geographic Region (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | [1] | Dec. 31, 2013 | [1] | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenue | $ 359,786 | $ 349,019 | $ 330,399 | ||
United States [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenue | 193,785 | 172,607 | 163,366 | ||
Europe [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenue | 92,546 | 109,959 | 109,228 | ||
APAC [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenue | 53,833 | 47,863 | 41,063 | ||
Other [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenue | $ 19,622 | $ 18,590 | $ 16,742 | ||
[1] | The revenue by region for the years ended December 31, 2014 and 2013 have been corrected from amounts previously reported. |
SEGMENT AND GEOGRAPHIC INFOR112
SEGMENT AND GEOGRAPHIC INFORMATION - Long-Lived Assets by Geographic Region (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net property and equipment | $ 21,000 | $ 18,087 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net property and equipment | 17,443 | 14,023 |
Singapore [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net property and equipment | 2,476 | 2,549 |
Europe [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net property and equipment | 890 | 1,265 |
Other countries [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net property and equipment | $ 191 | $ 250 |
DEFINED-CONTRIBUTION SAVINGS113
DEFINED-CONTRIBUTION SAVINGS PLANS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |||
Expense associated with employee contributions | $ 3.5 | $ 2.7 | $ 2.8 |
Contributions to employees, Vesting period | 4 years |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Related Party Transactions [Abstract] | |
Minimum royalty fee from related party | $ 100,000 |
ProceedsfromRelatedParty | $ 1,000,000 |
RESTRUCTURING (Details)
RESTRUCTURING (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2013employee | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Restructuring and Related Activities [Abstract] | ||||
Number of positions eliminated | employee | 100 | |||
Restructuring cost | $ 6,300 | |||
Restructuring charges | $ 0 | $ 0 | $ 4,490 |
UNAUDITED QUARTERLY FINANCIA116
UNAUDITED QUARTERLY FINANCIAL INFORMATION (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenue | $ 95,573 | $ 86,530 | $ 88,966 | $ 88,717 | $ 93,530 | $ 87,086 | $ 85,432 | $ 82,971 | $ 359,786 | $ 349,019 | $ 330,399 |
Total cost of goods sold | 33,762 | 31,017 | 31,887 | 33,879 | 34,588 | 35,566 | 36,588 | 36,416 | |||
Net income (loss) | $ 4,057 | $ (5,336) | $ 7,006 | $ 4,386 | $ 5,167 | $ 2,384 | $ (911) | $ (10,474) | $ 10,113 | $ (3,834) | $ (16,327) |
Basic net (loss) income per common share (in dollars per share) | $ 0.05 | $ (0.07) | $ 0.09 | $ 0.06 | $ 0.07 | $ 0.03 | $ (0.01) | $ (0.14) | |||
Diluted net (loss) income per common share (in dollars per share) | $ 0.05 | $ (0.07) | $ 0.08 | $ 0.06 | $ 0.05 | $ 0.03 | $ (0.01) | $ (0.14) |
SUBSEQUENT EVENTS - Narrative (
SUBSEQUENT EVENTS - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 08, 2016 | Sep. 30, 2015 |
Subsequent Event [Line Items] | ||
Acquisition Date | May 13, 2015 | |
Thermo Fisher [Member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Acquisition Date | Jan. 8, 2016 | |
Share price | $ 14 | |
TerminationFee | $ 55 |
Schedule II-Valuation and Qu118
Schedule II-Valuation and Qualifying Accounts (Details) - Allowance for Doubtful Accounts [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $ 443 | $ 601 | $ 691 |
Additions Charged to Operations or Other Accounts | (89) | (112) | 142 |
Write-offs, net of recoveries | (13) | (46) | (232) |
Balance at End of Period | $ 341 | $ 443 | $ 601 |