Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 24, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 000-33043 | |
Entity Registrant Name | OMNICELL, INC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 94-3166458 | |
Entity Address, Address Line One | 590 East Middlefield Road | |
Entity Address, City or Town | Mountain View | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94043 | |
City Area Code | 650 | |
Local Phone Number | 251-6100 | |
Title of 12(b) Security | Common Stock, $0.001 par value | |
Trading Symbol | OMCL | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 42,763,115 | |
Entity Central Index Key | 0000926326 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 133,583 | $ 127,210 |
Accounts receivable and unbilled receivables, net of allowances of $3,204 and $3,227, respectively | 188,918 | 218,362 |
Inventories | 114,245 | 108,011 |
Prepaid expenses | 13,297 | 14,478 |
Other current assets | 15,122 | 15,177 |
Total current assets | 465,165 | 483,238 |
Property and equipment, net | 57,866 | 54,246 |
Long-term investment in sales-type leases, net | 20,961 | 19,750 |
Operating lease right-of-use assets | 52,537 | 56,130 |
Goodwill | 335,034 | 336,539 |
Intangible assets, net | 115,710 | 124,867 |
Long-term deferred tax assets | 14,154 | 14,142 |
Prepaid commissions | 44,822 | 48,862 |
Other long-term assets | 116,197 | 103,036 |
Total assets | 1,222,446 | 1,240,810 |
Current liabilities: | ||
Accounts payable | 34,587 | 46,380 |
Accrued compensation | 41,057 | 44,155 |
Accrued Liabilities, Current | 52,979 | 55,567 |
Deferred revenues, net | 107,940 | 90,894 |
Total current liabilities | 236,563 | 236,996 |
Long-term deferred revenues | 6,101 | 7,083 |
Long-term deferred tax liabilities | 29,561 | 39,090 |
Long-term operating lease liabilities | 46,690 | 50,669 |
Other long-term liabilities | 16,070 | 11,718 |
Long-term debt | 0 | 50,000 |
Total liabilities | 334,985 | 395,556 |
Commitments and contingencies (Note 11) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value, 5,000 shares authorized; no shares issued | 0 | 0 |
Common stock, $0.001 par value, 100,000 shares authorized; 51,902 and 51,277 shares issued; 42,757 and 42,132 shares outstanding, respectively | 52 | 51 |
Treasury stock at cost, 9,145 shares outstanding, respectively | (185,074) | (185,074) |
Additional paid-in capital | 820,632 | 780,931 |
Retained earnings | 265,540 | 258,792 |
Accumulated other comprehensive loss | (13,689) | (9,446) |
Total stockholders’ equity | 887,461 | 845,254 |
Total liabilities and stockholders’ equity | $ 1,222,446 | $ 1,240,810 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowances for accounts receivable and unbilled receivables | $ 3,204 | $ 3,227 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares, issued (in shares) | 0 | 0 |
Preferred stock, shares, authorized (in shares) | 5,000,000 | 5,000,000 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares, authorized (in shares) | 100,000,000 | 100,000,000 |
Common Stock, shares, issued (in shares) | 51,902,000 | 51,277,000 |
Common stock, balance (in shares) | 42,757,000 | 42,132,000 |
Treasury stock, shares (in shares) | 9,145,000 | 9,145,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues | $ 199,621 | $ 217,413 | $ 429,307 | $ 419,930 |
Cost of revenues | 116,396 | 113,368 | 236,460 | 218,768 |
Gross profit | 83,225 | 104,045 | 192,847 | 201,162 |
Operating expenses: | ||||
Research and development | 20,830 | 16,848 | 39,482 | 32,926 |
Selling, general, and administrative | 69,386 | 68,434 | 148,205 | 136,712 |
Total operating expenses | 90,216 | 85,282 | 187,687 | 169,638 |
Income (loss) from operations | (6,991) | 18,763 | 5,160 | 31,524 |
Interest and other income (expense), net | 174 | (1,629) | (648) | (3,039) |
Income (loss) before provision for income taxes | (6,817) | 17,134 | 4,512 | 28,485 |
Provision for (benefit from) income taxes | (2,518) | 1,158 | (2,500) | 9,225 |
Net income (loss) | $ (4,299) | $ 15,976 | $ 7,012 | $ 19,260 |
Net income (loss) per share: | ||||
Net income (loss) per share - basic (in dollars per share) | $ (0.10) | $ 0.39 | $ 0.16 | $ 0.47 |
Net income (loss) per share - diluted (in dollars per share) | $ (0.10) | $ 0.37 | $ 0.16 | $ 0.45 |
Weighted-average shares outstanding: | ||||
Weighted-average shares outstanding — basic (in shares) | 42,659 | 41,371 | 42,509 | 41,033 |
Weighted-average shares outstanding — diluted (in shares) | 42,659 | 42,945 | 43,616 | 42,646 |
Product revenues | ||||
Revenues | $ 138,942 | $ 158,379 | $ 309,015 | $ 303,989 |
Cost of revenues | 85,779 | 84,583 | 176,051 | 163,394 |
Services and other revenues | ||||
Revenues | 60,679 | 59,034 | 120,292 | 115,941 |
Cost of revenues | $ 30,617 | $ 28,785 | $ 60,409 | $ 55,374 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (4,299) | $ 15,976 | $ 7,012 | $ 19,260 |
Other comprehensive income (loss), net of reclassification adjustments and taxes: | ||||
Unrealized losses on interest rate swap contracts | 0 | (103) | 0 | (420) |
Foreign currency translation adjustments | 451 | (971) | (4,243) | (302) |
Other comprehensive income (loss) | 451 | (1,074) | (4,243) | (722) |
Comprehensive income (loss) | $ (3,848) | $ 14,902 | $ 2,769 | $ 18,538 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect of a Change in Accounting Principle | Common Stock | Treasury Stock | Additional Paid-In Capital | Accumulated Earnings | Accumulated EarningsCumulative Effect of a Change in Accounting Principle | Accumulated Other Comprehensive Income (Loss) |
Beginning balance (in shares) at Dec. 31, 2018 | 49,480 | |||||||
Treasury stock (in shares) at Dec. 31, 2018 | (9,145) | |||||||
Beginning balance at Dec. 31, 2018 | $ 679,617 | $ 50 | $ (185,074) | $ 678,041 | $ 197,454 | $ (10,854) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 3,284 | 3,284 | ||||||
Other comprehensive income (loss) | 352 | 352 | ||||||
At the market equity offering, net of costs (in shares) | 243 | |||||||
At the market equity offering, net of costs | 20,216 | 20,216 | ||||||
Share-based compensation | 8,410 | 8,410 | ||||||
Issuance of common stock under employee stock plans (in shares) | 628 | |||||||
Issuance of common stock under employee stock plans | 20,526 | $ 0 | 20,526 | |||||
Tax payments related to restricted stock units | (1,920) | (1,920) | ||||||
Ending balance (in shares) at Mar. 31, 2019 | 50,351 | |||||||
Treasury stock (in shares) at Mar. 31, 2019 | (9,145) | |||||||
Ending balance at Mar. 31, 2019 | 730,485 | $ 50 | $ (185,074) | 725,273 | 200,738 | (10,502) | ||
Beginning balance (in shares) at Dec. 31, 2018 | 49,480 | |||||||
Treasury stock (in shares) at Dec. 31, 2018 | (9,145) | |||||||
Beginning balance at Dec. 31, 2018 | 679,617 | $ 50 | $ (185,074) | 678,041 | 197,454 | (10,854) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 19,260 | |||||||
Other comprehensive income (loss) | (722) | |||||||
Ending balance (in shares) at Jun. 30, 2019 | 50,784 | |||||||
Treasury stock (in shares) at Jun. 30, 2019 | (9,145) | |||||||
Ending balance at Jun. 30, 2019 | 773,242 | $ 51 | $ (185,074) | 753,127 | 216,714 | (11,576) | ||
Beginning balance (in shares) at Dec. 31, 2018 | 49,480 | |||||||
Treasury stock (in shares) at Dec. 31, 2018 | (9,145) | |||||||
Beginning balance at Dec. 31, 2018 | $ 679,617 | $ 50 | $ (185,074) | 678,041 | 197,454 | (10,854) | ||
Ending balance (in shares) at Dec. 31, 2019 | 42,132 | 51,277 | ||||||
Treasury stock (in shares) at Dec. 31, 2019 | (9,145) | (9,145) | ||||||
Ending balance at Dec. 31, 2019 | $ 845,254 | $ 51 | $ (185,074) | 780,931 | 258,792 | (9,446) | ||
Ending balance (Accounting Standards Update 2016-13) at Dec. 31, 2019 | $ (264) | $ (264) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | |||||||
Beginning balance (in shares) at Mar. 31, 2019 | 50,351 | |||||||
Treasury stock (in shares) at Mar. 31, 2019 | (9,145) | |||||||
Beginning balance at Mar. 31, 2019 | $ 730,485 | $ 50 | $ (185,074) | 725,273 | 200,738 | (10,502) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 15,976 | 15,976 | ||||||
Other comprehensive income (loss) | (1,074) | (1,074) | ||||||
At the market equity offering, net of costs (in shares) | 217 | |||||||
At the market equity offering, net of costs | 17,590 | $ 0 | 17,590 | |||||
Share-based compensation | 8,260 | 8,260 | ||||||
Issuance of common stock under employee stock plans (in shares) | 216 | |||||||
Issuance of common stock under employee stock plans | 4,807 | $ 1 | 4,806 | |||||
Tax payments related to restricted stock units | (2,802) | (2,802) | ||||||
Ending balance (in shares) at Jun. 30, 2019 | 50,784 | |||||||
Treasury stock (in shares) at Jun. 30, 2019 | (9,145) | |||||||
Ending balance at Jun. 30, 2019 | $ 773,242 | $ 51 | $ (185,074) | 753,127 | 216,714 | (11,576) | ||
Beginning balance (in shares) at Dec. 31, 2019 | 42,132 | 51,277 | ||||||
Treasury stock (in shares) at Dec. 31, 2019 | (9,145) | (9,145) | ||||||
Beginning balance at Dec. 31, 2019 | $ 845,254 | $ 51 | $ (185,074) | 780,931 | 258,792 | (9,446) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 11,311 | 11,311 | ||||||
Other comprehensive income (loss) | (4,694) | (4,694) | ||||||
Share-based compensation | 10,659 | 10,659 | ||||||
Issuance of common stock under employee stock plans (in shares) | 474 | |||||||
Issuance of common stock under employee stock plans | 17,659 | $ 1 | 17,658 | |||||
Tax payments related to restricted stock units | (1,425) | (1,425) | ||||||
Ending balance (in shares) at Mar. 31, 2020 | 51,751 | |||||||
Treasury stock (in shares) at Mar. 31, 2020 | (9,145) | |||||||
Ending balance at Mar. 31, 2020 | $ 878,500 | $ 52 | $ (185,074) | 807,823 | 269,839 | (14,140) | ||
Beginning balance (in shares) at Dec. 31, 2019 | 42,132 | 51,277 | ||||||
Treasury stock (in shares) at Dec. 31, 2019 | (9,145) | (9,145) | ||||||
Beginning balance at Dec. 31, 2019 | $ 845,254 | $ 51 | $ (185,074) | 780,931 | 258,792 | (9,446) | ||
Beginning balance (Accounting Standards Update 2016-13) at Dec. 31, 2019 | $ (264) | $ (264) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 7,012 | |||||||
Other comprehensive income (loss) | $ (4,243) | |||||||
Ending balance (in shares) at Jun. 30, 2020 | 42,757 | 51,902 | ||||||
Treasury stock (in shares) at Jun. 30, 2020 | (9,145) | (9,145) | ||||||
Ending balance at Jun. 30, 2020 | $ 887,461 | $ 52 | $ (185,074) | 820,632 | 265,540 | (13,689) | ||
Beginning balance (in shares) at Mar. 31, 2020 | 51,751 | |||||||
Treasury stock (in shares) at Mar. 31, 2020 | (9,145) | |||||||
Beginning balance at Mar. 31, 2020 | 878,500 | $ 52 | $ (185,074) | 807,823 | 269,839 | (14,140) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (4,299) | (4,299) | ||||||
Other comprehensive income (loss) | 451 | 451 | ||||||
Share-based compensation | 11,351 | 11,351 | ||||||
Issuance of common stock under employee stock plans (in shares) | 151 | |||||||
Issuance of common stock under employee stock plans | 3,503 | $ 0 | 3,503 | |||||
Tax payments related to restricted stock units | $ (2,045) | (2,045) | ||||||
Ending balance (in shares) at Jun. 30, 2020 | 42,757 | 51,902 | ||||||
Treasury stock (in shares) at Jun. 30, 2020 | (9,145) | (9,145) | ||||||
Ending balance at Jun. 30, 2020 | $ 887,461 | $ 52 | $ (185,074) | $ 820,632 | $ 265,540 | $ (13,689) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Operating Activities | ||
Net income | $ 7,012 | $ 19,260 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 28,779 | 25,874 |
Loss on disposal of property and equipment | 0 | 399 |
Share-based compensation expense | 22,010 | 16,670 |
Deferred income taxes | (9,409) | 3,810 |
Amortization of operating lease right-of-use assets | 5,157 | 5,226 |
Amortization of debt issuance costs | 482 | 1,145 |
Changes in operating assets and liabilities: | ||
Accounts receivable and unbilled receivables | 28,236 | (9,244) |
Inventories | (7,271) | (4,466) |
Prepaid expenses | 1,181 | 1,021 |
Other current assets | 219 | (830) |
Investment in sales-type leases | (1,375) | (4,412) |
Prepaid commissions | 4,040 | 1,536 |
Other long-term assets | (4,580) | 3,061 |
Accounts payable | (11,254) | 2,066 |
Accrued compensation | (3,098) | (8,041) |
Accrued liabilities | (2,824) | 1,810 |
Deferred revenues | 16,264 | 253 |
Operating lease liabilities | (5,186) | (5,269) |
Other long-term liabilities | 4,352 | 3,891 |
Net cash provided by operating activities | 72,735 | 53,760 |
Investing Activities | ||
Software development for external use | (20,002) | (22,581) |
Purchases of property and equipment | (13,211) | (9,369) |
Net cash used in investing activities | (33,213) | (31,950) |
Financing Activities | ||
Repayment of debt and revolving credit facility | (50,000) | (60,000) |
At the market equity offering, net of offering costs | 0 | 37,806 |
Proceeds from issuances under stock-based compensation plans | 21,162 | 25,333 |
Employees’ taxes paid related to restricted stock units | (3,470) | (4,722) |
Net cash used in financing activities | (32,308) | (1,583) |
Effect of exchange rate changes on cash and cash equivalents | (841) | 63 |
Net increase in cash and cash equivalents | 6,373 | 20,290 |
Cash and cash equivalents at beginning of period | 127,210 | 67,192 |
Cash and cash equivalents at end of period | 133,583 | 87,482 |
Supplemental disclosure of non-cash activities | ||
Unpaid purchases of property and equipment | 366 | 711 |
Transfers between inventory and property and equipment, net | 0 | 1,428 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 1,335 | $ 557 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Organization and Summary of Significant Accounting Policies | Organization and Summary of Significant Accounting Policies Business Omnicell, Inc. was incorporated in California in 1992 under the name Omnicell Technologies, Inc. and reincorporated in Delaware in 2001 as Omnicell, Inc. The Company’s major products are medication management automation solutions and adherence tools for healthcare systems and pharmacies, which are sold in its principal market, the healthcare industry. The Company’s market is primarily located in the United States and Europe. “Omnicell” or the “Company” collectively refer to Omnicell, Inc. and its subsidiaries. Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements reflect, in the opinion of management, all adjustments, consisting of normal recurring adjustments and accruals, necessary to present fairly the financial position of the Company as of June 30, 2020 and December 31, 2019, the results of operations and comprehensive income (loss) for the three and six months ended June 30, 2020 and 2019, and cash flows for the six months ended June 30, 2020 and 2019. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) have been condensed or omitted in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and accompanying Notes included in the Company’s annual report on Form 10-K for the year ended December 31, 2019 filed with the SEC on February 26, 2020, except as discussed in the sections entitled “Allowance for Credit Losses” and “Recently Adopted Authoritative Guidance” below. The Company’s results of operations and comprehensive income (loss) for the three and six months ended June 30, 2020 and cash flows for the six months ended June 30, 2020 are not necessarily indicative of results that may be expected for the year ending December 31, 2020, or for any future period. Principles of Consolidation The Condensed Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Reclassifications and Adjustments Certain prior-year amounts have been reclassified to conform with current-period presentation. This reclassification was a change in the presentation of certain items in the disaggregation of product revenues for the three and six months ended June 30, 2019 in Note 2, Revenues , of the Notes to Condensed Consolidated Financial Statements. This change was not deemed material and was included to conform with current-period classification and presentation. Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Company’s Condensed Consolidated Financial Statements and accompanying Notes. Management bases its estimates on historical experience and various other assumptions believed to be reasonable, including any potential impacts arising from the novel coronavirus (“COVID-19”) pandemic. Although these estimates are based on management’s best knowledge of current events and actions that may impact the Company in the future, actual results may be different from the estimates. The Company’s critical accounting policies are those that affect its financial statements materially and involve difficult, subjective or complex judgments by management. As of June 30, 2020, the Company is not aware of any events or circumstances that would require an update to its estimates, judgments, or revisions to the carrying value of its assets or liabilities. Given the ongoing uncertainty surrounding the COVID-19 pandemic, events or circumstances may arise that could result in a change in estimates, judgments, or revisions to the carrying value of the Company’s assets or liabilities. Segment Reporting The Company manages its operations as a single segment for the purposes of assessing performance and making operating decisions. The Company's Chief Operating Decision Maker ("CODM") is its Chief Executive Officer. The CODM allocates resources and evaluates the performance of the Company at the consolidated level using information about its revenues, gross profit, income from operations, and other key financial data. All significant operating decisions are based upon an analysis of the Company as one operating segment, which is the same as its reporting segment. Allowance for Credit Losses The Company is exposed to credit losses primarily through sales of its products and services, as well as its sales-type leasing arrangements. The Company performs credit evaluations of its customers’ financial condition in order to assess each customer’s ability to pay. These evaluations require significant judgment and are based on a variety of factors including, but not limited to, current economic trends, payment history, and a financial review of the customer. The Company continues to monitor customers’ creditworthiness on an ongoing basis. The Company maintains an allowance for credit losses for accounts receivable, unbilled receivables, and net investment in sales-type leases based on expected credit losses resulting from the inability of its customers to make required payments. The allowance for credit losses is measured using a loss rate method, considering factors such as customers’ credit risk, historical loss experience, current conditions, and forecasts. The allowance for credit losses is measured on a collective (pool) basis by aggregating customer balances with similar risk characteristics. The Company also records a specific allowance based on an analysis of individual past due balances or customer-specific information, such as a decline in creditworthiness or bankruptcy. Actual collection losses may differ from management’s estimates, and such differences could be material to the Company’s financial position and results of operations. The allowance for credit losses is presented in the Condensed Consolidated Balance Sheets as a deduction from the respective asset balance. The following table summarizes the Company’s allowance for credit losses by asset type: June 30, December 31, (In thousands) Allowance for credit losses: Accounts receivable and unbilled receivables $ 3,204 $ 3,227 Long-term unbilled receivables (1) 33 — Net investment in sales-type leases (2) 248 225 _________________________________________________ (1) Included in other long-term assets in the Condensed Consolidated Balance Sheets. (2) Includes both current and long-term portions presented in other current assets and long-term investment in sales-type leases, net, respectively. Changes in the allowances for credit losses were not significant for the three and six months ended June 30, 2020 and 2019. Recently Adopted Authoritative Guidance In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract , to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The Company adopted ASU 2018-15 on January 1, 2020 on a prospective basis. The adoption of this guidance did not have a material impact on the Company’s Condensed Consolidated Financial Statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments , that modifies or replaces existing models for trade and other receivables, debt securities, loans, and certain other financial instruments. For instruments measured at amortized cost, including trade and lease receivables, loans, and held-to-maturity debt securities, the standard replaced the current “incurred loss” approach with an “expected loss” model. Entities are required to estimate expected credit losses over the life of the instrument, considering available relevant information about the collectibility of cash flows, including information about past events, current conditions, and reasonable and supportable forecasts. The Company adopted the new standard on January 1, 2020 using the modified retrospective transition method, which resulted in the recognition of an immaterial cumulative-effect adjustment to retained earnings. Recently Issued Authoritative Guidance There was no recently issued and effective authoritative guidance that is expected to have a material impact on the Company’s Condensed Consolidated Financial Statements through the reporting date. |
Revenues
Revenues | 6 Months Ended |
Jun. 30, 2020 | |
Revenue Recognition [Abstract] | |
Revenues | Revenues Revenue Recognition The Company earns revenues from sales of its products and related services, which are sold in the healthcare industry, its principal market. The Company’s customer arrangements typically include one or more of the following performance obligations: Products. Software-enabled equipment that manages and regulates the storage and dispensing of pharmaceuticals, consumable blister cards and packaging equipment and other medical supplies. Software. On premise or cloud-based subscription solutions that improve medication management and adherence outcomes or enable incremental functionality of the Company’s equipment. Installation. Installation of equipment as integrated systems at customer sites. Post-installation technical support. Phone support, on-site service, parts, and access to unspecified software updates and enhancements, if and when available. Professional services. Other customer services, such as technology-enabled services, training, and consulting. A portion of the Company’s sales are made to customers who are members of Group Purchasing Organizations (“GPOs”). GPOs are often owned fully or in part by the Company’s customers, and the Company pays fees to the GPO on completed contracts. The Company considers these fees consideration paid to customers and records them as reductions to revenue. Fees to GPOs were $1.7 million and $2.6 million for the three months ended June 30, 2020 and 2019, respectively, and $4.6 million and $4.8 million for the six months ended June 30, 2020 and 2019, respectively. Disaggregation of Revenues The following table summarizes the Company’s product revenues disaggregated by revenue type for the three and six months ended June 30, 2020 and 2019: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Hardware and software $ 116,919 $ 133,005 $ 259,352 $ 251,819 Consumables 18,063 21,795 41,333 45,502 Other 3,960 3,579 8,330 6,668 Total product revenues $ 138,942 $ 158,379 $ 309,015 $ 303,989 The following table summarizes the Company’s revenues disaggregated by geographic region, which is determined based on customer location, for the three and six months ended June 30, 2020 and 2019: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) United States $ 178,052 $ 195,811 $ 385,786 $ 375,831 Rest of world (1) 21,569 21,602 43,521 44,099 Total revenues $ 199,621 $ 217,413 $ 429,307 $ 419,930 _________________________________________________ (1) No individual country represented more than 10% of total revenues. Contract Assets and Contract Liabilities The following table reflects the Company’s contract assets and contract liabilities: June 30, December 31, (In thousands) Short-term unbilled receivables, net (1) $ 9,602 $ 11,707 Long-term unbilled receivables, net (2) 16,132 12,260 Total contract assets $ 25,734 $ 23,967 Short-term deferred revenues, net $ 107,940 $ 90,894 Long-term deferred revenues 6,101 7,083 Total contract liabilities $ 114,041 $ 97,977 _________________________________________________ (1) Included in accounts receivable and unbilled receivables in the Condensed Consolidated Balance Sheets. (2) Included in other long-term assets in the Condensed Consolidated Balance Sheets. The portion of the transaction price allocated to the Company’s unsatisfied performance obligations for which invoicing has occurred is recorded as deferred revenues. Short-term deferred revenues of $107.9 million and $90.9 million include deferred revenues from product sales and service contracts, net of deferred cost of sales of $19.6 million and $13.1 million, as of June 30, 2020 and December 31, 2019, respectively. The short-term deferred revenues from product sales relate to delivered and invoiced products, pending installation and acceptance, expected to occur within the next twelve months. During the three and six months ended June 30, 2020, the Company recognized revenues of $20.9 million and $64.3 million, respectively, that were included in the corresponding gross short-term deferred revenues balance of $104.0 million as of December 31, 2019. Long-term deferred revenues include deferred revenues from service contracts of $6.1 million and $7.1 million as of June 30, 2020 and December 31, 2019, respectively. Remaining performance obligations primarily relate to maintenance contracts and are recognized ratably over the remaining term of the contract, generally not more than five years. Significant Customers There were no customers that accounted for more than 10% of the Company’s total revenues for the three and six months ended June 30, 2020 and 2019. Also, there were no customers that accounted for more than 10% of the Company’s accounts receivable balance as of June 30, 2020 and December 31, 2019. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per ShareBasic net income (loss) per share is computed by dividing net income (loss) for the period by the weighted-average number of shares outstanding during the period. In periods of net loss, all potential common shares are anti-dilutive, so diluted net loss per share equals the basic net loss per share. In periods of net income, diluted net income per share is computed by dividing net income for the period by the basic weighted-average number of shares plus any dilutive potential common stock outstanding during the period. Potential common stock includes the effect of outstanding dilutive stock options, restricted stock awards, and restricted stock units computed using the treasury stock method. Any anti-dilutive weighted-average dilutive shares related to stock award plans are excluded from the computation of the diluted net income per share. The basic and diluted net income (loss) per share calculations for the three and six months ended June 30, 2020 and 2019 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands, except per share data) Net income (loss) $ (4,299) $ 15,976 $ 7,012 $ 19,260 Weighted-average shares outstanding — basic 42,659 41,371 42,509 41,033 Effect of dilutive securities from stock award plans — 1,574 1,107 1,613 Weighted-average shares outstanding — diluted 42,659 42,945 43,616 42,646 Net income (loss) per share - basic $ (0.10) $ 0.39 $ 0.16 $ 0.47 Net income (loss) per share - diluted $ (0.10) $ 0.37 $ 0.16 $ 0.45 Anti-dilutive weighted-average shares related to stock award plans 4,931 741 1,929 748 |
Cash and Cash Equivalents and F
Cash and Cash Equivalents and Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Cash and Cash Equivalents and Fair Value of Financial Instruments | Cash and Cash Equivalents and Fair Value of Financial Instruments Cash and cash equivalents of $133.6 million and $127.2 million as of June 30, 2020 and December 31, 2019, respectively, consisted of bank accounts with major financial institutions. Fair Value Hierarchy The Company measures its financial instruments at fair value. The Company’s cash and cash equivalents are classified within Level 1 of the fair value hierarchy as they are valued primarily using quoted market prices utilizing market observable inputs. The Company's interest rate swap contracts and debt are classified within Level 2 as the valuation inputs are based on quoted prices or market observable data of similar instruments. Refer to Note 8, Debt and Credit Agreements, of the Notes to Condensed Consolidated Financial Statements for further information regarding the Company’s credit facilities. Interest Rate Swap Contracts The Company uses interest rate swap agreements to protect the Company against adverse fluctuations in interest rates by reducing its exposure to variability in cash flows relating to interest payments on a portion of its outstanding debt. The Company’s interest rate swaps, which are designated as cash flow hedges, involve the receipt of variable amounts from counterparties in exchange for the Company making fixed-rate payments over the life of the agreements. The Company does not hold or issue any derivative financial instruments for speculative trading purposes. During 2016, the Company entered into an interest rate swap agreement with a combined notional amount of $100.0 million with one counterparty that became effective on June 30, 2016 and matured on April 30, 2019. The swap agreement required the Company to pay a fixed rate of 0.8% and provided that the Company received a variable rate based on the one month London Interbank Offered Rate (“LIBOR”), subject to a LIBOR floor of 0.0%. Amounts payable by or due to the Company were net settled with the respective counterparty on the last business day of each month, commencing July 31, 2016. |
Balance Sheet Components
Balance Sheet Components | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Components | Balance Sheet Components Balance sheet details as of June 30, 2020 and December 31, 2019 are presented in the tables below: June 30, December 31, (In thousands) Inventories: Raw materials $ 32,101 $ 31,331 Work in process 7,833 7,620 Finished goods 74,311 69,060 Total inventories $ 114,245 $ 108,011 Other long-term assets: Capitalized software, net $ 94,166 $ 85,070 Unbilled receivables, net 16,132 12,260 Deferred debt issuance costs 4,218 4,700 Other assets 1,681 1,006 Total other long-term assets $ 116,197 $ 103,036 Accrued liabilities: Operating lease liabilities, current portion $ 10,463 $ 10,058 Advance payments from customers 4,651 4,006 Rebates and lease buyouts 18,690 14,911 Group purchasing organization fees 4,250 5,934 Taxes payable 2,963 3,744 Other accrued liabilities 11,962 16,914 Total accrued liabilities $ 52,979 $ 55,567 The following tables summarize the changes in accumulated balances of other comprehensive income (loss) for the three and six months ended June 30, 2020 and 2019: Three Months Ended June 30, 2020 2019 Foreign currency translation adjustments Unrealized gain (loss) on interest rate swap hedges Total Foreign currency translation adjustments Unrealized gain (loss) on interest rate swap hedges Total (In thousands) Beginning balance $ (14,140) $ — $ (14,140) $ (10,605) $ 103 $ (10,502) Other comprehensive income (loss) before reclassifications 451 — 451 (971) 48 (923) Amounts reclassified from other comprehensive income (loss), net of tax — — — — (151) (151) Net current-period other comprehensive income (loss), net of tax 451 — 451 (971) (103) (1,074) Ending balance $ (13,689) $ — $ (13,689) $ (11,576) $ — $ (11,576) Six Months Ended June 30, 2020 2019 Foreign currency translation adjustments Unrealized gain (loss) on interest rate swap hedges Total Foreign currency translation adjustments Unrealized gain (loss) on interest rate swap hedges Total (In thousands) Beginning balance $ (9,446) $ — $ (9,446) $ (11,274) $ 420 $ (10,854) Other comprehensive income (loss) before reclassifications (4,243) — (4,243) (302) 148 (154) Amounts reclassified from other comprehensive income (loss), net of tax — — — — (568) (568) Net current-period other comprehensive income (loss), net of tax (4,243) — (4,243) (302) (420) (722) Ending balance $ (13,689) $ — $ (13,689) $ (11,576) $ — $ (11,576) |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment The following table represents the property and equipment balances as of June 30, 2020 and December 31, 2019: June 30, December 31, (In thousands) Equipment $ 98,691 $ 88,569 Furniture and fixtures 7,878 7,925 Leasehold improvements 19,839 18,979 Software 49,424 48,309 Construction in progress 6,428 6,179 Property and equipment, gross 182,260 169,961 Accumulated depreciation and amortization (124,394) (115,715) Total property and equipment, net $ 57,866 $ 54,246 Depreciation and amortization expense of property and equipment was $4.7 million and $4.4 million for the three months ended June 30, 2020 and 2019, respectively, and $9.0 million and $8.4 million for the six months ended June 30, 2020 and 2019, respectively. The geographic location of the Company's property and equipment, net, is based on the physical location in which it is located. The following table summarizes the geographic information for property and equipment, net, as of June 30, 2020 and December 31, 2019: June 30, December 31, (In thousands) United States $ 51,811 $ 48,769 Rest of world (1) 6,055 5,477 Total property and equipment, net $ 57,866 $ 54,246 _________________________________________________ (1) No individual country represented more than 10% of total property and equipment, net. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The following table represents changes in the carrying amount of goodwill: December 31, Additions Foreign currency exchange rate fluctuations June 30, (In thousands) Goodwill $ 336,539 $ — $ (1,505) $ 335,034 Intangible Assets, Net The carrying amounts and useful lives of intangible assets as of June 30, 2020 and December 31, 2019 were as follows: June 30, 2020 Gross carrying amount (1) Accumulated Foreign currency exchange rate fluctuations Net carrying Useful life (In thousands, except for years) Customer relationships $ 134,889 $ (58,871) $ (1,360) $ 74,658 10 - 30 Acquired technology 77,029 (40,033) 5 37,001 5 - 20 Backlog 1,150 (934) — 216 4 Trade names 7,650 (5,374) 10 2,286 6 - 12 Patents 3,217 (1,669) 1 1,549 2 - 20 Total intangibles assets, net $ 223,935 $ (106,881) $ (1,344) $ 115,710 December 31, 2019 Gross carrying amount (1) Accumulated Foreign currency exchange rate fluctuations Net carrying Useful life (In thousands, except for years) Customer relationships $ 135,234 $ (54,860) $ (1,058) $ 79,316 10 - 30 Acquired technology 77,142 (36,194) 5 40,953 3 - 20 Backlog 1,150 (791) — 359 4 Trade names 7,650 (5,037) 11 2,624 6 - 12 Patents 3,217 (1,603) 1 1,615 2 - 20 Total intangibles assets, net $ 224,393 $ (98,485) $ (1,041) $ 124,867 _________________________________________________ (1) The differences in gross carrying amounts between periods are primarily due to the write-off of certain fully amortized intangible assets. Amortization expense of intangible assets was $4.4 million and $4.7 million for the three months ended June 30, 2020 and 2019, respectively, and $8.9 million and $9.5 million for the six months ended June 30, 2020 and 2019, respectively. The estimated future amortization expenses for amortizable intangible assets were as follows: June 30, (In thousands) Remaining six months of 2020 $ 8,592 2021 16,120 2022 14,770 2023 13,675 2024 7,916 Thereafter 54,637 Total $ 115,710 |
Debt and Credit Agreements
Debt and Credit Agreements | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt and Credit Agreements | Debt and Credit Agreements 2016 Senior Credit Facility On January 5, 2016, the Company entered into a $400.0 million senior secured credit facility pursuant to a credit agreement with certain lenders, Wells Fargo Securities, LLC as sole lead arranger, and Wells Fargo Bank, National Association as administrative agent (as subsequently amended as discussed below, the “Prior Credit Agreement”). The Prior Credit Agreement provided for (a) a five-year revolving credit facility of $200.0 million, which was subsequently increased pursuant to the amendment discussed below (the “Prior Revolving Credit Facility”) and (b) a five-year $200.0 million term loan facility (the “Prior Term Loan Facility” and together with the Prior Revolving Credit Facility, the “Prior Facilities”). In addition, the Prior Credit Agreement included a letter of credit sub-limit of up to $10.0 million and a swing line loan sub-limit of up to $10.0 million. The Prior Credit Agreement had an expiration date of January 5, 2021, upon which date all remaining outstanding borrowings were due and payable. Loans under the Prior Facilities bore interest, at the Company’s option, at a rate equal to either (a) LIBOR, plus an applicable margin ranging from 1.50% to 2.25% per annum based on the Company’s Consolidated Total Net Leverage Ratio (as defined in the Prior Credit Agreement), or (b) an alternate base rate equal to the highest of (i) the prime rate, (ii) the federal funds rate plus 0.50%, and (iii) LIBOR for an interest period of one month, plus an applicable margin ranging from 0.50% to 1.25% per annum based on the Company’s Consolidated Total Net Leverage Ratio (as defined in the Prior Credit Agreement). Undrawn commitments under the Prior Revolving Credit Facility were subject to a commitment fee ranging from 0.20% to 0.35% per annum based on the Company’s Consolidated Total Net Leverage Ratio on the average daily unused portion of the Prior Revolving Credit Facility. On each of April 11, 2017 and December 26, 2017, the parties entered into amendments to the Prior Credit Agreement. Under these amendments, the Prior Revolving Credit Facility was increased from $200.0 million to $315.0 million, and certain other modifications were made. In connection with the December 2017 amendment, the Company incurred and capitalized an additional $2.1 million of debt issuance costs. 2019 Revolving Credit Facility On November 15, 2019, the Company refinanced the Prior Credit Agreement and entered into an Amended and Restated Credit Agreement (the “A&R Credit Agreement”) with the lenders from time to time party thereto, Wells Fargo Securities, LLC, Citizens Bank, N.A., and JPMorgan Chase Bank, N.A., as joint lead arrangers and Wells Fargo Bank, National Association, as administrative agent. The A&R Credit Agreement replaced the Prior Credit Agreement and provides for (a) a five-year revolving credit facility of $500.0 million (the “Current Revolving Credit Facility”) and (b) an uncommitted incremental loan facility of up to $250.0 million (the “Incremental Facility”). In addition, the A&R Credit Agreement includes a letter of credit sub-limit of up to $15.0 million and a swing line loan sub-limit of up to $25.0 million. The A&R Credit Agreement has an expiration date of November 15, 2024, upon which date all remaining outstanding borrowings will be due and payable. On November 15, 2019, the $80.0 million outstanding term loan balance under the Prior Facilities was transferred to the Current Revolving Credit Facility. Loans under the Current Revolving Credit Facility bear interest, at the Company’s option, at a rate equal to either (a) LIBOR, plus an applicable margin ranging from 1.25% to 2.00% per annum based on the Company’s Consolidated Total Net Leverage Ratio (as defined in the A&R Credit Agreement), or (b) an alternate base rate equal to the highest of (i) the prime rate, (ii) the federal funds rate plus 0.50%, and (iii) LIBOR for an interest period of one month plus 1.00%, plus an applicable margin ranging from 0.25% to 1.00% per annum based on the Company’s Consolidated Total Net Leverage Ratio. Undrawn commitments under the Current Revolving Credit Facility are subject to a commitment fee ranging from 0.15% to 0.30% per annum based on the Company’s Consolidated Total Net Leverage Ratio on the average daily unused portion of the Current Revolving Credit Facility. The applicable margin for and certain other terms of any term loans under the Incremental Facility will be determined prior to the incurrence of such loans. The Company is permitted to make voluntary prepayments at any time without payment of a premium or penalty. The A&R Credit Agreement contains customary representations and warranties and customary affirmative and negative covenants applicable to the Company and its subsidiaries, including, among other things, restrictions on indebtedness, liens, investments, mergers, dispositions, dividends, and other distributions. The A&R Credit Agreement contains financial covenants that require the Company and its subsidiaries to not exceed a maximum consolidated total net leverage ratio and maintain a minimum interest coverage ratio. In addition, the A&R Credit Agreement contains certain customary events of default including, but not limited to, failure to pay interest, principal and fees or other amounts when due, material misrepresentations or misstatements in any representation or warranty, covenant defaults, certain cross defaults to other material indebtedness, certain judgment defaults and events of bankruptcy. The Company’s obligations under the A&R Credit Agreement and any swap obligations and banking services obligations owing to a lender (or an affiliate of a lender) are guaranteed by certain of its domestic subsidiaries and secured by substantially all of its and such subsidiary guarantors’ assets. In connection with entering into the A&R Credit Agreement, and as a condition precedent to borrowing loans thereunder, the Company and certain of the Company’s other direct and indirect subsidiaries have entered into certain ancillary agreements, including, but not limited to, a reaffirmation agreement, which amends certain terms of the existing collateral agreement and reaffirms their obligations under the existing guaranty agreement. The Company was in full compliance with all covenants as of June 30, 2020. The refinancing of the Prior Credit Agreement was evaluated in accordance with Accounting Standards Codification (“ASC”) 470-50, Debt - Modifications and Extinguishments . In determining whether the refinancing was to be accounted for as a debt extinguishment or a debt modification, the Company considered whether lenders within the syndicate remained the same or changed and whether the changes in debt terms were substantial. This assessment was performed on an individual lender basis within the syndicate. As a result, the refinancing was accounted for as a modification with the exception of certain lenders that exited the syndicate. The exit of certain lenders resulted in an immaterial write-off of existing unamortized debt issuance costs. The remaining unamortized debt issuance costs related to debt modification, along with the new deferred costs, will be amortized over the remaining term of the A&R Credit Agreement. In connection with the A&R Credit Agreement, the Company incurred and capitalized an additional $2.3 million of debt issuance costs. The debt issuance costs are being amortized to interest expense using the straight-line method through 2024. Amortization expense related to debt issuance costs was approximately $0.2 million and $0.6 million for the three months ended June 30, 2020 and 2019, respectively, and approximately $0.5 million and $1.1 million for the six months ended June 30, 2020 and 2019, respectively. Interest expense (exclusive of fees and debt issuance cost amortization) was approximately $0.9 million for the three months ended June 30, 2019, and approximately $0.2 million and $2.2 million for the six months ended June 30, 2020 and 2019, respectively. No interest expense was incurred during the three months ended June 30, 2020 as there was no outstanding balance under the Current Revolving Credit Facility during the three months ended June 30, 2020. The following table represents changes in the carrying amount of the Company’s debt obligations: Current Revolving Credit Facility (In thousands) Balance as of December 31, 2019 $ 50,000 Proceeds — Repayments (50,000) Balance as of June 30, 2020 $ — The following table represents changes in the balance of the Company's deferred debt issuance costs: (In thousands) Balance as of December 31, 2019 $ 4,700 Additions — Amortization (482) Balance as of June 30, 2020 $ 4,218 |
Lessor Leases
Lessor Leases | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Lessor Leases | Lessor Leases Sales-Type Leases On a recurring basis, the Company enters into multi-year, sales-type lease agreements, with the majority varying in length from one The following table presents the Company’s income recognized from sales-type leases for the three and six months ended June 30, 2020 and 2019: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Sales-type lease revenues $ 6,612 $ 13,309 $ 13,004 $ 24,816 Cost of sales-type lease revenues (2,655) (5,575) (5,224) (10,395) Selling profit on sales-type lease revenues $ 3,957 $ 7,734 $ 7,780 $ 14,421 Interest income on sales-type lease receivables $ 526 $ 399 $ 987 $ 808 The receivables as a result of these types of transactions are collateralized by the underlying equipment leased and consist of the following components at June 30, 2020 and December 31, 2019: June 30, December 31, (In thousands) Net minimum lease payments to be received $ 33,750 $ 32,360 Less: Unearned interest income portion (2,855) (2,840) Net investment in sales-type leases 30,895 29,520 Less: Current portion (1) (9,934) (9,770) Long-term investment in sales-type leases, net $ 20,961 $ 19,750 _________________________________________________ (1) The current portion of the net investment in sales-type leases is included in other current assets in the Condensed Consolidated Balance Sheets. The carrying amount of the Company’s sales-type lease receivables is a reasonable estimate of fair value. The maturity schedule of future minimum lease payments under sales-type leases retained in-house and the reconciliation to the net investment in sales-type leases reported on the Condensed Consolidated Balance Sheets was as follows: June 30, (In thousands) Remaining six months of 2020 $ 6,838 2021 8,769 2022 8,005 2023 5,802 2024 3,031 Thereafter 1,305 Total future minimum sales-type lease payments 33,750 Present value adjustment (2,855) Total net investment in sales-type leases $ 30,895 Operating Leases The Company entered into certain leasing agreements that were classified as operating leases prior to the adoption of ASC 842, Leases , on January 1, 2019. These agreements in place prior to January 1, 2019 will continue to be treated as operating leases, however any new leasing agreements entered into on or after January 1, 2019 under these programs are classified and accounted for as sales-type leases in accordance with ASC 842. The operating lease arrangements generally have initial terms of one The following table represents the Company’s income recognized from operating leases for the three and six months ended June 30, 2020 and 2019: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Rental income $ 3,024 $ 3,365 $ 6,001 $ 6,652 |
Lessor Leases | Lessor Leases Sales-Type Leases On a recurring basis, the Company enters into multi-year, sales-type lease agreements, with the majority varying in length from one The following table presents the Company’s income recognized from sales-type leases for the three and six months ended June 30, 2020 and 2019: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Sales-type lease revenues $ 6,612 $ 13,309 $ 13,004 $ 24,816 Cost of sales-type lease revenues (2,655) (5,575) (5,224) (10,395) Selling profit on sales-type lease revenues $ 3,957 $ 7,734 $ 7,780 $ 14,421 Interest income on sales-type lease receivables $ 526 $ 399 $ 987 $ 808 The receivables as a result of these types of transactions are collateralized by the underlying equipment leased and consist of the following components at June 30, 2020 and December 31, 2019: June 30, December 31, (In thousands) Net minimum lease payments to be received $ 33,750 $ 32,360 Less: Unearned interest income portion (2,855) (2,840) Net investment in sales-type leases 30,895 29,520 Less: Current portion (1) (9,934) (9,770) Long-term investment in sales-type leases, net $ 20,961 $ 19,750 _________________________________________________ (1) The current portion of the net investment in sales-type leases is included in other current assets in the Condensed Consolidated Balance Sheets. The carrying amount of the Company’s sales-type lease receivables is a reasonable estimate of fair value. The maturity schedule of future minimum lease payments under sales-type leases retained in-house and the reconciliation to the net investment in sales-type leases reported on the Condensed Consolidated Balance Sheets was as follows: June 30, (In thousands) Remaining six months of 2020 $ 6,838 2021 8,769 2022 8,005 2023 5,802 2024 3,031 Thereafter 1,305 Total future minimum sales-type lease payments 33,750 Present value adjustment (2,855) Total net investment in sales-type leases $ 30,895 Operating Leases The Company entered into certain leasing agreements that were classified as operating leases prior to the adoption of ASC 842, Leases , on January 1, 2019. These agreements in place prior to January 1, 2019 will continue to be treated as operating leases, however any new leasing agreements entered into on or after January 1, 2019 under these programs are classified and accounted for as sales-type leases in accordance with ASC 842. The operating lease arrangements generally have initial terms of one The following table represents the Company’s income recognized from operating leases for the three and six months ended June 30, 2020 and 2019: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Rental income $ 3,024 $ 3,365 $ 6,001 $ 6,652 |
Lessee Leases
Lessee Leases | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Lessee Leases | Lessee Leases The Company has operating leases for office buildings, data centers, office equipment, and vehicles. The Company’s leases have initial terms of one The maturity schedule of future minimum lease payments under operating leases and the reconciliation to the operating lease liabilities reported on the Condensed Consolidated Balance Sheets was as follows: June 30, (In thousands) Remaining six months of 2020 $ 6,890 2021 13,572 2022 12,296 2023 8,660 2024 8,059 Thereafter 20,170 Total operating lease payments 69,647 Present value adjustment (12,494) Total operating lease liabilities (1) $ 57,153 _________________________________________________ (1) Amount consists of a current and long-term portion of operating lease liabilities of $10.5 million and $46.7 million, respectively. The short-term portion of the operating lease liabilities is included in accrued liabilities in the Condensed Consolidated Balance Sheets. Operating lease costs were $3.4 million and $3.6 million for the three months ended June 30, 2020 and 2019, respectively, and $7.0 million and $7.3 million for the six months ended June 30, 2020 and 2019, respectively. Short-term lease costs and variable lease costs were immaterial for the three and six months ended June 30, 2020 and 2019. The following table summarizes supplemental cash flow information related to the Company’s operating leases for the six months ended June 30, 2020 and 2019: Six Months Ended June 30, 2020 2019 (In thousands) Cash paid for amounts included in the measurement of lease liabilities $ 7,067 $ 7,391 Right-of-use assets obtained in exchange for new lease liabilities $ 1,335 $ 557 The following table summarizes the weighted-average remaining lease term and weighted-average discount rate related to the Company’s operating leases as of June 30, 2020 and December 31, 2019: June 30, December 31, Weighted-average remaining lease term, years 6.1 6.4 Weighted-average discount rate, % 6.4 % 6.4 % |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Obligations In the ordinary course of business, the Company issues purchase orders based on its current manufacturing needs. As of June 30, 2020, the Company had non-cancelable purchase commitments of $66.3 million, of which $64.7 million are expected to be paid within the year ending December 31, 2020. Legal Proceedings The Company is currently involved in various legal proceedings. As required under ASC 450, Contingencies , the Company accrues for contingencies when it believes that a loss is probable and that it can reasonably estimate the amount of any such loss. The Company has not recorded any accrual for contingent liabilities associated with the legal proceedings described below based on its belief that any potential loss, while reasonably possible, is not probable. Further, any possible range of loss in these matters cannot be reasonably estimated at this time. The Company believes that it has valid defenses with respect to legal proceedings pending against it. However, litigation is inherently unpredictable, and it is possible that cash flows or results of operations could be materially affected in any particular period by the unfavorable resolution of this contingency or because of the diversion of management’s attention and the creation of significant expenses. On January 10, 2018, a lawsuit was filed against a number of individuals, governmental agencies, and corporate entities, including the Company and one of its former subsidiaries, Aesynt Incorporated (“Aesynt”), which, through a series of mergers, has been merged into the Company, in the Circuit Court for the City of Richmond, Virginia, captioned Ruth Ann Warner, as Guardian of Jonathan James Brewster Warner v. Centra Health, Inc., et al., Case No. CL18-152-1 . The complaint sought monetary recovery of compensatory and punitive damages in addition to certain declaratory relief based upon, as against the individuals, governmental agencies, and corporate entities other than the Company and Aesynt, allegations of the use of excessive force, unlawful detention, false imprisonment, battery, simple and gross negligence and negligent hiring, detention, and training; and, as against the Company and Aesynt, claims of product liability, negligence, and breach of implied warranties. The Company and Aesynt were never served with the complaint. Upon motion of the plaintiff, the Court issued an order on February 21, 2019 nonsuiting (dismissing) the case without prejudice. On August 21, 2019, a new lawsuit was filed against the Company and Aesynt, in the Circuit Court for the County of Albemarle, Virginia, captioned Ruth Ann Warner, as Guardian of Jonathan James Brewster Warner v. Aesynt Incorporated, et al., Case No CL19-1301 . The complaint seeks monetary recovery of damages based upon claims of product liability, negligence, and breach of implied warranties. The Company and Aesynt have not been served with the complaint. The Company intends to defend the lawsuit vigorously. A declaratory judgment action was filed against the Company, on August 30, 2018, in the United States District Court for the Northern District of California, captioned Zurich American Insurance Company; American Guarantee & Liability Company v. Omnicell, Inc. and Does 1-10, inclusive, Case No. 3:18-CV-05345 . The complaint seeks a declaration that the plaintiffs have no duty to defend or indemnify the Company in connection with the underlying litigation, Yana Mazya, et al. v. Northwestern Lake Forest Hospital, et al., Case No. 2018-CH-07161 pending in the Circuit Court of Cook County, Illinois, Chancery Division (a class action lawsuit filed against a customer of the Company, the customer’s parent company, and two vendors of medication dispensing systems, one of which is the Company, seeking statutory damages and certain declaratory, injunctive, and other relief based on causes of action directed to allegations of violation of the Illinois Biometric Information Privacy Act (“BIPA”) and of negligence by the defendants from which the Company was subsequently dismissed without prejudice) (“Mazya Action”), together with claims for reimbursement and unjust enrichment relating to the defense of the Mazya Action in the form of attorneys’ fees and other related costs. The Company has not responded to the complaint. On February 12, 2019, the Court stayed the action pending the outcome of the Mazya Action and administratively closed the case. On October 15, 2019, the plaintiffs filed a notice advising the Court of the dismissal of the Company from the Mazya Action and requesting that the Court lift the stay in the case and set dates for filing a responsive pleading by the Company and initial discovery and scheduling matters. By order dated November 13, 2019, the Court (i) lifted the stay in the case, (ii) set a case management conference for February 5, 2020, and (iii) ordered the parties to file a joint case management statement by January 29, 2020. The parties subsequently reached a settlement of the case in principle and the Court, after notice of the parties, continued the case management conference until April 29, 2020. The parties entered into a written settlement agreement on April 9, 2020. Since the conditions precedent in the settlement agreement to dismissing the case had not yet been fulfilled, the Court, upon the petition of the parties, again continued the case management conference until May 27, 2020. Upon fulfillment of the conditions precedent to finalizing the settlement, the plaintiffs filed a notice of dismissal with prejudice on May 4, 2020, thereby finally terminating the action. A class action lawsuit was filed against the Company, on June 5, 2019, in the Circuit Court of Cook County, Illinois, Chancery Division, captioned Corey Heard, individually and on behalf of all others similarly situated, v. Omnicell, Inc., Case No. 2019-CH-06817 . The complaint seeks class certification, monetary damages in the form of statutory damages for willful and/or reckless or, in the alternative, negligent violation of BIPA, and certain declaratory, injunctive, and other relief based on causes of action directed to allegations of violation of BIPA by the Company. The complaint was served on the Company on June 13, 2019. On July 31, 2019, the Company filed a motion to stay or consolidate the case with the Mazya Action. The Court subsequently, on October 10, 2019, denied the motion, without prejudice, as being moot in view of the Company’s dismissal from the Mazya Action. The Company filed a motion to dismiss the complaint on October 31, 2019. The motion to dismiss is fully-briefed. The hearing on the Company’s motion to dismiss was previously set for March 16, 2020, was continued to May 27, 2020, and then was subsequently continued again to September 2, 2020. The Company intends to defend the lawsuit vigorously. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company generally provides for income taxes in interim periods based on the estimated annual effective tax rate for the year, adjusting for discrete items in the quarter in which they arise. The annual effective tax rate before discrete items was 28.0% and 24.8% for the six months ended June 30, 2020 and 2019, respectively. The Company’s effective tax rate for the six months ended June 30, 2020 was based on best estimates, which may fluctuate through the remainder of the year due to the volatility and uncertainty of global economic conditions in connection with the COVID-19 pandemic. Due to continuing global operational centralization activities and legal entity rationalization, the Company recognized gain on the sale of certain intellectual property rights by Aesynt B.V. to Omnicell, Inc., which resulted in a tax expense, net of tax benefit, of $9.6 million during the six months ended June 30, 2019. In March 2020, Aesynt B.V. subsequently merged with and into Aesynt Holding B.V., with Aesynt Holding B.V. surviving and changing its name to Omnicell B.V. The Company did not recognize a gain or loss from such activities during the six months ended June 30, 2020. The Company also recognized a discrete tax benefit related to equity compensation in the amount of $3.3 million and $7.0 million for the six months ended June 30, 2020 and 2019, respectively. The 2020 annual effective tax rate before discrete items differed from the statutory rate of 21% primarily due to the unfavorable impact of state income taxes, non-deductible compensation and equity charges, and non-deductible expenses, partially offset by the favorable impact of research and development credits and foreign derived intangible income (“FDII”) benefit deduction. The 2019 annual effective tax rate before discrete items differed from the statutory rate of 21% primarily due to the unfavorable impact of state income taxes, non-deductible equity charges, and non-deductible expenses, partially offset by the favorable impact of research and development credits, foreign rate differential, and FDII benefit deduction. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) was signed into law in response to the COVID-19 pandemic. The CARES Act, among other provisions, includes provisions related to refundable payroll tax credits, deferment of the employer portion of certain payroll taxes, net operation losses carryback periods, alternative minimum tax credit refunds, modification to net interest expense deduction limitation, and technical amendments to tax depreciation methods for qualified improvement property placed in service after December 31, 2017. The provisions of the CARES Act did not have a material impact on the Company’s income taxes. As of June 30, 2020 and December 31, 2019, the Company had gross unrecognized tax benefits of $17.3 million and $16.8 million, respectively. It is the Company’s policy to classify accrued interest and penalties as part of the unrecognized tax benefits, but to record interest and penalties in interest and other income (expense), net in the Condensed Consolidated Statements of Operations. As of June 30, 2020 and December 31, 2019, the amount of accrued interest and penalties was $1.1 million and $1.0 million, respectively. The Company files income tax returns in the United States and various states and foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities, including major jurisdictions such as the United States, Germany, Italy, Netherlands, and the United Kingdom. With few exceptions, as of June 30, 2020, the Company was no longer subject to United States, state, and foreign examination for years before 2016, 2015, and 2015, respectively. Although the Company believes it has adequately provided for uncertain tax positions, the provisions on these positions may change as revised estimates are made or the underlying matters are settled or otherwise resolved. It is not possible at this time to reasonably estimate changes in the unrecognized tax benefits within the next twelve months. |
Employee Benefits and Share-Bas
Employee Benefits and Share-Based Compensation | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Employee Benefits and Share-Based Compensation | Employee Benefits and Share-Based Compensation Stock-Based Plans For a detailed explanation of the Company's stock plans, refer to Note 13, Employee Benefits and Share-Based Compensation , of the Company's annual report on Form 10-K for the year ended December 31, 2019 filed with the SEC on February 26, 2020. Share-Based Compensation Expense The following table sets forth the total share-based compensation expense recognized in the Company’s Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2020 and 2019: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Cost of product and service revenues $ 2,130 $ 1,416 $ 3,900 $ 2,878 Research and development 1,854 1,584 3,622 3,286 Selling, general, and administrative 7,367 5,260 14,488 10,506 Total share-based compensation expense $ 11,351 $ 8,260 $ 22,010 $ 16,670 Stock Options and ESPP Shares The following assumptions were used to value stock options and Employee Stock Purchase Plan (“ESPP”) shares granted pursuant to the Company’s equity incentive plans for the three and six months ended June 30, 2020 and 2019: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Stock options Expected life, years 4.7 4.3 4.7 4.4 Expected volatility, % 42.2 % 33.2 % 37.9 % 33.2 % Risk-free interest rate, % 0.5 % 2.1 % 0.9 % 2.3 % Estimated forfeiture rate, % 5.7 % 7.2 % 5.7 % 7.2 % Dividend yield, % — % — % — % — % Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Employee stock purchase plan shares Expected life, years 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 Expected volatility, % 30.4% - 39.9% 28.2% - 38.4% 30.4% - 39.9% 28.2% - 38.4% Risk-free interest rate, % 1.4% - 2.7% 1.3% - 2.7% 1.4% - 2.7% 1.3% - 2.7% Dividend yield, % — % — % — % — % Stock Options Activity The following table summarizes the share option activity under the Company’s equity incentive plans during the six months ended June 30, 2020: Number of Weighted-Average Weighted-Average Aggregate (In thousands, except per share data) Outstanding at December 31, 2019 3,902 $ 52.75 7.7 $ 113,198 Granted 674 80.63 Exercised (315) 37.28 Expired (7) 56.83 Forfeited (126) 62.61 Outstanding at June 30, 2020 4,128 $ 58.17 7.4 $ 65,499 Exercisable at June 30, 2020 1,699 $ 41.50 6.0 $ 50,644 Vested and expected to vest at June 30, 2020 and thereafter 3,945 $ 57.46 7.3 $ 64,859 The weighted-average fair value per share of options granted during the three months ended June 30, 2020 and 2019 was $26.03 and $24.40, respectively, and the weighted-average fair value per share of options granted during the six months ended June 30, 2020 and 2019 was $26.21 and $24.20, respectively. The intrinsic value of options exercised during the three months ended June 30, 2020 and 2019 was $2.5 million and $7.2 million, respectively, and during the six months ended June 30, 2020 and 2019 was $12.4 million and $24.3 million, respectively. As of June 30, 2020, total unrecognized compensation cost related to unvested stock options was $47.4 million, which is expected to be recognized over a weighted-average vesting period of 2.8 years. Employee Stock Purchase Plan Activity For the six months ended June 30, 2020 and 2019, employees purchased approximately 217,000 and 210,000 shares of common stock, respectively, under the ESPP at weighted average prices of $43.51 and $40.20, respectively. As of June 30, 2020, the unrecognized compensation cost related to the shares to be purchased under the ESPP was approximately $5.5 million and is expected to be recognized over a weighted-average period of 1.2 years. Restricted Stock Units (“RSUs”) and Restricted Stock Awards (“RSAs”) Summaries of the restricted stock activity under the Company’s 2009 Equity Incentive Plan, as amended (the “2009 Plan”) are presented below for the six months ended June 30, 2020: Number of Weighted-Average Weighted-Average Aggregate (In thousands, except per share data) Restricted stock units Outstanding at December 31, 2019 544 $ 66.65 1.6 $ 44,492 Granted (Awarded) 89 81.25 Vested (Released) (81) 56.57 Forfeited (41) 63.67 Outstanding and unvested at June 30, 2020 511 $ 71.03 1.5 $ 36,062 As of June 30, 2020, total unrecognized compensation cost related to RSUs was $32.5 million, which is expected to be recognized over the remaining weighted-average vesting period of 2.9 years. Number of Weighted-Average (In thousands, except per share data) Restricted stock awards Outstanding at December 31, 2019 17 $ 81.92 Granted (Awarded) 21 68.11 Vested (Released) (17) 81.92 Outstanding and unvested at June 30, 2020 21 $ 68.11 As of June 30, 2020, total unrecognized compensation cost related to RSAs was $1.2 million, which is expected to be recognized over the remaining weighted-average vesting period of 0.9 years. Performance-Based Restricted Stock Units (“PSUs”) A summary of the performance-based restricted stock activity under the 2009 Plan is presented below for the six months ended June 30, 2020: Number of Weighted-Average (In thousands, except per share data) Outstanding at December 31, 2019 134 $ 55.82 Granted 63 82.41 Vested (44) 54.25 Forfeited (5) 81.72 Outstanding and unvested at June 30, 2020 148 $ 66.69 As of June 30, 2020, total unrecognized compensation cost related to PSUs was approximately $5.4 million, which is expected to be recognized over the remaining weighted-average vesting period of 1.4 years. Summary of Shares Reserved for Future Issuance under Equity Incentive Plans The Company had the following ordinary shares reserved for future issuance under its equity incentive plans as of June 30, 2020: Number of Shares (In thousands) Share options outstanding 4,128 Non-vested restricted stock awards 680 Shares authorized for future issuance 2,029 ESPP shares available for future issuance 1,322 Total shares reserved for future issuance 8,159 Stock Repurchase Program On August 2, 2016, the Company's Board of Directors (the “Board”) authorized a stock repurchase program providing for the repurchase of up to $50.0 million of the Company’s common stock (the “2016 Repurchase Program”). The 2016 Repurchase Program is in addition to the stock repurchase program approved by the Board on November 4, 2014. As of June 30, 2020, the maximum dollar value of shares that may yet be purchased under the two repurchase programs was $54.9 million. The stock repurchase programs do not obligate the Company to repurchase any specific number of shares, and the Company may terminate or suspend the repurchase programs at any time. |
Equity Offerings
Equity Offerings | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Equity Offerings | Equity Offerings On November 3, 2017, the Company entered into a Distribution Agreement (the “Distribution Agreement”) with J.P. Morgan Securities LLC, Wells Fargo Securities, LLC, and HSBC Securities (USA) Inc., as its sales agents, pursuant to which the Company may offer and sell from time to time through the sales agents up to $125.0 million maximum aggregate offering price of the Company’s common stock. Sales of the common stock pursuant to the Distribution Agreement may be made in negotiated transactions or transactions that are deemed to be “at the market” offerings as defined in Rule 415 under the Securities Act of 1933, including sales made directly on the Nasdaq Stock Market, or sales made to or through a market maker other than on an exchange. For the three and six months ended June 30, 2020, the Company did not sell any of its common stock under the Distribution Agreement. For the three months ended June 30, 2019, the Company received gross proceeds of $17.9 million from sales of its common stock under the Distribution Agreement and incurred issuance costs of $0.3 million on sales of approximately 217,000 shares of its common stock at an average price of approximately $82.51 per share. For the six months ended June 30, 2019, the Company received gross proceeds of $38.5 million from sales of its common stock under the Distribution Agreement and incurred issuance costs of $0.7 million on sales of approximately 460,000 shares of its common stock at an average price of approximately $83.81 per share. As of June 30, 2020, the Company had an aggregate of $31.5 million available to be offered under the Distribution Agreement. |
Restructuring Expenses
Restructuring Expenses | 6 Months Ended |
Jun. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Expenses | Restructuring ExpensesIn the first quarter of 2020, the Company announced a company-wide organizational realignment initiative in order to more effectively align its organizational infrastructure and operations with the strategic vision of the autonomous pharmacy. In the second quarter of 2020, the Company continued its organizational realignment initiative, as well as initiated a restructuring plan to help mitigate the adverse impact of the COVID-19 pandemic on its business and financial results. During the three and six months ended June 30, 2020, the Company incurred and accrued $6.4 million and $10.0 million, respectively, of employee severance costs and related expenses. As of June 30, 2020, the unpaid balance related to this restructuring plan was $6.6 million. The following table summarizes the total restructuring expense recognized in the Company’s Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2020: Three Months Ended Six Months Ended (In thousands) Cost of product and service revenues $ 2,489 $ 2,564 Research and development 2,918 3,716 Selling, general, and administrative 949 3,681 Total restructuring expense $ 6,356 $ 9,961 |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements reflect, in the opinion of management, all adjustments, consisting of normal recurring adjustments and accruals, necessary to present fairly the financial position of the Company as of June 30, 2020 and December 31, 2019, the results of operations and comprehensive income (loss) for the three and six months ended June 30, 2020 and 2019, and cash flows for the six months ended June 30, 2020 and 2019. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) have been condensed or omitted in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and accompanying Notes included in the Company’s annual report on Form 10-K for the year ended December 31, 2019 filed with the SEC on February 26, 2020, except as discussed in the sections entitled “Allowance for Credit Losses” and “Recently Adopted Authoritative Guidance” below. The Company’s results of operations and comprehensive income (loss) for the three and six months ended June 30, 2020 and cash flows for the six months ended June 30, 2020 are not necessarily indicative of results that may be expected for the year ending December 31, 2020, or for any future period. |
Principles of Consolidation | Principles of Consolidation The Condensed Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Reclassifications and Adjustments | Reclassifications and AdjustmentsCertain prior-year amounts have been reclassified to conform with current-period presentation. |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Company’s Condensed Consolidated Financial Statements and accompanying Notes. Management bases its estimates on historical experience and various other assumptions believed to be reasonable, including any potential impacts arising from the novel coronavirus (“COVID-19”) pandemic. Although these estimates are based on management’s best knowledge of current events and actions that may impact the Company in the future, actual results may be different from the estimates. |
Segment Reporting | Segment Reporting The Company manages its operations as a single segment for the purposes of assessing performance and making operating decisions. The Company's Chief Operating Decision Maker ("CODM") is its Chief Executive Officer. The CODM allocates resources and evaluates the performance of the Company at the consolidated level using information about its revenues, gross profit, income from operations, and other key financial data. All significant operating decisions are based upon an analysis of the Company as one operating segment, which is the same as its reporting segment. |
Allowance for Credit Losses | Allowance for Credit Losses The Company is exposed to credit losses primarily through sales of its products and services, as well as its sales-type leasing arrangements. The Company performs credit evaluations of its customers’ financial condition in order to assess each customer’s ability to pay. These evaluations require significant judgment and are based on a variety of factors including, but not limited to, current economic trends, payment history, and a financial review of the customer. The Company continues to monitor customers’ creditworthiness on an ongoing basis. The Company maintains an allowance for credit losses for accounts receivable, unbilled receivables, and net investment in sales-type leases based on expected credit losses resulting from the inability of its customers to make required payments. The allowance for credit losses is measured using a loss rate method, considering factors such as customers’ credit risk, historical loss experience, current conditions, and forecasts. The allowance for credit losses is measured on a collective (pool) basis by aggregating customer balances with similar risk characteristics. The Company also records a specific allowance based on an analysis of individual past due balances or customer-specific information, such as a decline in creditworthiness or bankruptcy. Actual collection losses may differ from management’s estimates, and such differences could be material to the Company’s financial position and results of operations. |
Recently Adopted and Issued Authoritative Guidance | Recently Adopted Authoritative Guidance In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract , to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The Company adopted ASU 2018-15 on January 1, 2020 on a prospective basis. The adoption of this guidance did not have a material impact on the Company’s Condensed Consolidated Financial Statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments , that modifies or replaces existing models for trade and other receivables, debt securities, loans, and certain other financial instruments. For instruments measured at amortized cost, including trade and lease receivables, loans, and held-to-maturity debt securities, the standard replaced the current “incurred loss” approach with an “expected loss” model. Entities are required to estimate expected credit losses over the life of the instrument, considering available relevant information about the collectibility of cash flows, including information about past events, current conditions, and reasonable and supportable forecasts. The Company adopted the new standard on January 1, 2020 using the modified retrospective transition method, which resulted in the recognition of an immaterial cumulative-effect adjustment to retained earnings. Recently Issued Authoritative Guidance There was no recently issued and effective authoritative guidance that is expected to have a material impact on the Company’s Condensed Consolidated Financial Statements through the reporting date. |
Revenue Recognition | Revenue Recognition The Company earns revenues from sales of its products and related services, which are sold in the healthcare industry, its principal market. The Company’s customer arrangements typically include one or more of the following performance obligations: Products. Software-enabled equipment that manages and regulates the storage and dispensing of pharmaceuticals, consumable blister cards and packaging equipment and other medical supplies. Software. On premise or cloud-based subscription solutions that improve medication management and adherence outcomes or enable incremental functionality of the Company’s equipment. Installation. Installation of equipment as integrated systems at customer sites. Post-installation technical support. Phone support, on-site service, parts, and access to unspecified software updates and enhancements, if and when available. Professional services. Other customer services, such as technology-enabled services, training, and consulting. |
Net Income (Loss) Per Share | Basic net income (loss) per share is computed by dividing net income (loss) for the period by the weighted-average number of shares outstanding during the period. In periods of net loss, all potential common shares are anti-dilutive, so diluted net loss per share equals the basic net loss per share. In periods of net income, diluted net income per share is computed by dividing net income for the period by the basic weighted-average number of shares plus any dilutive potential common stock outstanding during the period. Potential common stock includes the effect of outstanding dilutive stock options, restricted stock awards, and restricted stock units computed using the treasury stock method. Any anti-dilutive weighted-average dilutive shares related to stock award plans are excluded from the computation of the diluted net income per share. |
Fair Value Hierarchy | The Company measures its financial instruments at fair value. The Company’s cash and cash equivalents are classified within Level 1 of the fair value hierarchy as they are valued primarily using quoted market prices utilizing market observable inputs. The Company's interest rate swap contracts and debt are classified within Level 2 as the valuation inputs are based on quoted prices or market observable data of similar instruments |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Allowance for Credit Losses by Asset Type | The following table summarizes the Company’s allowance for credit losses by asset type: June 30, December 31, (In thousands) Allowance for credit losses: Accounts receivable and unbilled receivables $ 3,204 $ 3,227 Long-term unbilled receivables (1) 33 — Net investment in sales-type leases (2) 248 225 _________________________________________________ (1) Included in other long-term assets in the Condensed Consolidated Balance Sheets. |
Revenues (Tables)
Revenues (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue Recognition [Abstract] | |
Disaggregation of Revenues by Revenue Type | The following table summarizes the Company’s product revenues disaggregated by revenue type for the three and six months ended June 30, 2020 and 2019: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Hardware and software $ 116,919 $ 133,005 $ 259,352 $ 251,819 Consumables 18,063 21,795 41,333 45,502 Other 3,960 3,579 8,330 6,668 Total product revenues $ 138,942 $ 158,379 $ 309,015 $ 303,989 |
Disaggregation of Revenues by Geographical Location | The following table summarizes the Company’s revenues disaggregated by geographic region, which is determined based on customer location, for the three and six months ended June 30, 2020 and 2019: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) United States $ 178,052 $ 195,811 $ 385,786 $ 375,831 Rest of world (1) 21,569 21,602 43,521 44,099 Total revenues $ 199,621 $ 217,413 $ 429,307 $ 419,930 _________________________________________________ (1) No individual country represented more than 10% of total revenues. |
Contract Asset and Liabilities | The following table reflects the Company’s contract assets and contract liabilities: June 30, December 31, (In thousands) Short-term unbilled receivables, net (1) $ 9,602 $ 11,707 Long-term unbilled receivables, net (2) 16,132 12,260 Total contract assets $ 25,734 $ 23,967 Short-term deferred revenues, net $ 107,940 $ 90,894 Long-term deferred revenues 6,101 7,083 Total contract liabilities $ 114,041 $ 97,977 _________________________________________________ (1) Included in accounts receivable and unbilled receivables in the Condensed Consolidated Balance Sheets. |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Income (Loss) Per Share | The basic and diluted net income (loss) per share calculations for the three and six months ended June 30, 2020 and 2019 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands, except per share data) Net income (loss) $ (4,299) $ 15,976 $ 7,012 $ 19,260 Weighted-average shares outstanding — basic 42,659 41,371 42,509 41,033 Effect of dilutive securities from stock award plans — 1,574 1,107 1,613 Weighted-average shares outstanding — diluted 42,659 42,945 43,616 42,646 Net income (loss) per share - basic $ (0.10) $ 0.39 $ 0.16 $ 0.47 Net income (loss) per share - diluted $ (0.10) $ 0.37 $ 0.16 $ 0.45 Anti-dilutive weighted-average shares related to stock award plans 4,931 741 1,929 748 |
Balance Sheet Components - (Tab
Balance Sheet Components - (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Components | Balance sheet details as of June 30, 2020 and December 31, 2019 are presented in the tables below: June 30, December 31, (In thousands) Inventories: Raw materials $ 32,101 $ 31,331 Work in process 7,833 7,620 Finished goods 74,311 69,060 Total inventories $ 114,245 $ 108,011 Other long-term assets: Capitalized software, net $ 94,166 $ 85,070 Unbilled receivables, net 16,132 12,260 Deferred debt issuance costs 4,218 4,700 Other assets 1,681 1,006 Total other long-term assets $ 116,197 $ 103,036 Accrued liabilities: Operating lease liabilities, current portion $ 10,463 $ 10,058 Advance payments from customers 4,651 4,006 Rebates and lease buyouts 18,690 14,911 Group purchasing organization fees 4,250 5,934 Taxes payable 2,963 3,744 Other accrued liabilities 11,962 16,914 Total accrued liabilities $ 52,979 $ 55,567 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables summarize the changes in accumulated balances of other comprehensive income (loss) for the three and six months ended June 30, 2020 and 2019: Three Months Ended June 30, 2020 2019 Foreign currency translation adjustments Unrealized gain (loss) on interest rate swap hedges Total Foreign currency translation adjustments Unrealized gain (loss) on interest rate swap hedges Total (In thousands) Beginning balance $ (14,140) $ — $ (14,140) $ (10,605) $ 103 $ (10,502) Other comprehensive income (loss) before reclassifications 451 — 451 (971) 48 (923) Amounts reclassified from other comprehensive income (loss), net of tax — — — — (151) (151) Net current-period other comprehensive income (loss), net of tax 451 — 451 (971) (103) (1,074) Ending balance $ (13,689) $ — $ (13,689) $ (11,576) $ — $ (11,576) Six Months Ended June 30, 2020 2019 Foreign currency translation adjustments Unrealized gain (loss) on interest rate swap hedges Total Foreign currency translation adjustments Unrealized gain (loss) on interest rate swap hedges Total (In thousands) Beginning balance $ (9,446) $ — $ (9,446) $ (11,274) $ 420 $ (10,854) Other comprehensive income (loss) before reclassifications (4,243) — (4,243) (302) 148 (154) Amounts reclassified from other comprehensive income (loss), net of tax — — — — (568) (568) Net current-period other comprehensive income (loss), net of tax (4,243) — (4,243) (302) (420) (722) Ending balance $ (13,689) $ — $ (13,689) $ (11,576) $ — $ (11,576) |
Property and Equipment - (Table
Property and Equipment - (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Balances | The following table represents the property and equipment balances as of June 30, 2020 and December 31, 2019: June 30, December 31, (In thousands) Equipment $ 98,691 $ 88,569 Furniture and fixtures 7,878 7,925 Leasehold improvements 19,839 18,979 Software 49,424 48,309 Construction in progress 6,428 6,179 Property and equipment, gross 182,260 169,961 Accumulated depreciation and amortization (124,394) (115,715) Total property and equipment, net $ 57,866 $ 54,246 |
Summary of the Geographic Information for Property and Equipment, Net | The following table summarizes the geographic information for property and equipment, net, as of June 30, 2020 and December 31, 2019: June 30, December 31, (In thousands) United States $ 51,811 $ 48,769 Rest of world (1) 6,055 5,477 Total property and equipment, net $ 57,866 $ 54,246 _________________________________________________ (1) No individual country represented more than 10% of total property and equipment, net. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the Carrying Amount of Goodwill | The following table represents changes in the carrying amount of goodwill: December 31, Additions Foreign currency exchange rate fluctuations June 30, (In thousands) Goodwill $ 336,539 $ — $ (1,505) $ 335,034 |
Carrying Amounts and Useful Lives of Intangible Assets | The carrying amounts and useful lives of intangible assets as of June 30, 2020 and December 31, 2019 were as follows: June 30, 2020 Gross carrying amount (1) Accumulated Foreign currency exchange rate fluctuations Net carrying Useful life (In thousands, except for years) Customer relationships $ 134,889 $ (58,871) $ (1,360) $ 74,658 10 - 30 Acquired technology 77,029 (40,033) 5 37,001 5 - 20 Backlog 1,150 (934) — 216 4 Trade names 7,650 (5,374) 10 2,286 6 - 12 Patents 3,217 (1,669) 1 1,549 2 - 20 Total intangibles assets, net $ 223,935 $ (106,881) $ (1,344) $ 115,710 December 31, 2019 Gross carrying amount (1) Accumulated Foreign currency exchange rate fluctuations Net carrying Useful life (In thousands, except for years) Customer relationships $ 135,234 $ (54,860) $ (1,058) $ 79,316 10 - 30 Acquired technology 77,142 (36,194) 5 40,953 3 - 20 Backlog 1,150 (791) — 359 4 Trade names 7,650 (5,037) 11 2,624 6 - 12 Patents 3,217 (1,603) 1 1,615 2 - 20 Total intangibles assets, net $ 224,393 $ (98,485) $ (1,041) $ 124,867 _________________________________________________ |
Estimated Future Amortization Expense for Intangible Assets | The estimated future amortization expenses for amortizable intangible assets were as follows: June 30, (In thousands) Remaining six months of 2020 $ 8,592 2021 16,120 2022 14,770 2023 13,675 2024 7,916 Thereafter 54,637 Total $ 115,710 |
Debt and Credit Agreement (Tabl
Debt and Credit Agreement (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Changes in the Carrying Amount of Debt Obligations | The following table represents changes in the carrying amount of the Company’s debt obligations: Current Revolving Credit Facility (In thousands) Balance as of December 31, 2019 $ 50,000 Proceeds — Repayments (50,000) Balance as of June 30, 2020 $ — |
Changes in the Balance of Deferred Debt Issuance Costs | The following table represents changes in the balance of the Company's deferred debt issuance costs: (In thousands) Balance as of December 31, 2019 $ 4,700 Additions — Amortization (482) Balance as of June 30, 2020 $ 4,218 |
Lessor Leases (Tables)
Lessor Leases (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Income Recognized from Sales-Type Leases | The following table presents the Company’s income recognized from sales-type leases for the three and six months ended June 30, 2020 and 2019: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Sales-type lease revenues $ 6,612 $ 13,309 $ 13,004 $ 24,816 Cost of sales-type lease revenues (2,655) (5,575) (5,224) (10,395) Selling profit on sales-type lease revenues $ 3,957 $ 7,734 $ 7,780 $ 14,421 Interest income on sales-type lease receivables $ 526 $ 399 $ 987 $ 808 |
Components of Sales-Type Lease Receivables | The receivables as a result of these types of transactions are collateralized by the underlying equipment leased and consist of the following components at June 30, 2020 and December 31, 2019: June 30, December 31, (In thousands) Net minimum lease payments to be received $ 33,750 $ 32,360 Less: Unearned interest income portion (2,855) (2,840) Net investment in sales-type leases 30,895 29,520 Less: Current portion (1) (9,934) (9,770) Long-term investment in sales-type leases, net $ 20,961 $ 19,750 _________________________________________________ (1) The current portion of the net investment in sales-type leases is included in other current assets in the Condensed Consolidated Balance Sheets. |
Maturity Schedule of Future Minimum Lease Payments under Sales-Type Leases | The maturity schedule of future minimum lease payments under sales-type leases retained in-house and the reconciliation to the net investment in sales-type leases reported on the Condensed Consolidated Balance Sheets was as follows: June 30, (In thousands) Remaining six months of 2020 $ 6,838 2021 8,769 2022 8,005 2023 5,802 2024 3,031 Thereafter 1,305 Total future minimum sales-type lease payments 33,750 Present value adjustment (2,855) Total net investment in sales-type leases $ 30,895 |
Income Recognized from Operating Leases | The following table represents the Company’s income recognized from operating leases for the three and six months ended June 30, 2020 and 2019: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Rental income $ 3,024 $ 3,365 $ 6,001 $ 6,652 |
Lessee Leases (Tables)
Lessee Leases (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Maturity Schedule of Future Minimum Lease Payments under Operating Leases and the Reconciliation to the Operating Lease Liabilities | The maturity schedule of future minimum lease payments under operating leases and the reconciliation to the operating lease liabilities reported on the Condensed Consolidated Balance Sheets was as follows: June 30, (In thousands) Remaining six months of 2020 $ 6,890 2021 13,572 2022 12,296 2023 8,660 2024 8,059 Thereafter 20,170 Total operating lease payments 69,647 Present value adjustment (12,494) Total operating lease liabilities (1) $ 57,153 _________________________________________________ (1) Amount consists of a current and long-term portion of operating lease liabilities of $10.5 million and $46.7 million, respectively. The short-term portion of the operating lease liabilities is included in accrued liabilities in the Condensed Consolidated Balance Sheets. |
Supplemental Cash Flow Information Related to Operating Leases | The following table summarizes supplemental cash flow information related to the Company’s operating leases for the six months ended June 30, 2020 and 2019: Six Months Ended June 30, 2020 2019 (In thousands) Cash paid for amounts included in the measurement of lease liabilities $ 7,067 $ 7,391 Right-of-use assets obtained in exchange for new lease liabilities $ 1,335 $ 557 |
Weighted-Average Remaining Lease Term and Weighted-Average Discount Rate | The following table summarizes the weighted-average remaining lease term and weighted-average discount rate related to the Company’s operating leases as of June 30, 2020 and December 31, 2019: June 30, December 31, Weighted-average remaining lease term, years 6.1 6.4 Weighted-average discount rate, % 6.4 % 6.4 % |
Employee Benefits and Share-B_2
Employee Benefits and Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation Expense | The following table sets forth the total share-based compensation expense recognized in the Company’s Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2020 and 2019: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Cost of product and service revenues $ 2,130 $ 1,416 $ 3,900 $ 2,878 Research and development 1,854 1,584 3,622 3,286 Selling, general, and administrative 7,367 5,260 14,488 10,506 Total share-based compensation expense $ 11,351 $ 8,260 $ 22,010 $ 16,670 |
Assumptions Used to Value Stock Options Granted | The following assumptions were used to value stock options and Employee Stock Purchase Plan (“ESPP”) shares granted pursuant to the Company’s equity incentive plans for the three and six months ended June 30, 2020 and 2019: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Stock options Expected life, years 4.7 4.3 4.7 4.4 Expected volatility, % 42.2 % 33.2 % 37.9 % 33.2 % Risk-free interest rate, % 0.5 % 2.1 % 0.9 % 2.3 % Estimated forfeiture rate, % 5.7 % 7.2 % 5.7 % 7.2 % Dividend yield, % — % — % — % — % |
Assumptions Used to Value ESPP Shares Granted | Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Employee stock purchase plan shares Expected life, years 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 0.5 - 2.0 Expected volatility, % 30.4% - 39.9% 28.2% - 38.4% 30.4% - 39.9% 28.2% - 38.4% Risk-free interest rate, % 1.4% - 2.7% 1.3% - 2.7% 1.4% - 2.7% 1.3% - 2.7% Dividend yield, % — % — % — % — % |
Summary of Share Option Activity | The following table summarizes the share option activity under the Company’s equity incentive plans during the six months ended June 30, 2020: Number of Weighted-Average Weighted-Average Aggregate (In thousands, except per share data) Outstanding at December 31, 2019 3,902 $ 52.75 7.7 $ 113,198 Granted 674 80.63 Exercised (315) 37.28 Expired (7) 56.83 Forfeited (126) 62.61 Outstanding at June 30, 2020 4,128 $ 58.17 7.4 $ 65,499 Exercisable at June 30, 2020 1,699 $ 41.50 6.0 $ 50,644 Vested and expected to vest at June 30, 2020 and thereafter 3,945 $ 57.46 7.3 $ 64,859 |
Summary of Restricted Stock Unit Activity | Summaries of the restricted stock activity under the Company’s 2009 Equity Incentive Plan, as amended (the “2009 Plan”) are presented below for the six months ended June 30, 2020: Number of Weighted-Average Weighted-Average Aggregate (In thousands, except per share data) Restricted stock units Outstanding at December 31, 2019 544 $ 66.65 1.6 $ 44,492 Granted (Awarded) 89 81.25 Vested (Released) (81) 56.57 Forfeited (41) 63.67 Outstanding and unvested at June 30, 2020 511 $ 71.03 1.5 $ 36,062 |
Summary of Restricted Stock Awards Activity | Number of Weighted-Average (In thousands, except per share data) Restricted stock awards Outstanding at December 31, 2019 17 $ 81.92 Granted (Awarded) 21 68.11 Vested (Released) (17) 81.92 Outstanding and unvested at June 30, 2020 21 $ 68.11 |
Summary of Performance-Based Restricted Stock Activity | A summary of the performance-based restricted stock activity under the 2009 Plan is presented below for the six months ended June 30, 2020: Number of Weighted-Average (In thousands, except per share data) Outstanding at December 31, 2019 134 $ 55.82 Granted 63 82.41 Vested (44) 54.25 Forfeited (5) 81.72 Outstanding and unvested at June 30, 2020 148 $ 66.69 |
Ordinary Shares Reserved for Future Issuance Under Equity Incentive Plans | The Company had the following ordinary shares reserved for future issuance under its equity incentive plans as of June 30, 2020: Number of Shares (In thousands) Share options outstanding 4,128 Non-vested restricted stock awards 680 Shares authorized for future issuance 2,029 ESPP shares available for future issuance 1,322 Total shares reserved for future issuance 8,159 |
Restructuring Expenses (Tables)
Restructuring Expenses (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Total Restructuring Expense Recognized in the Condensed Consolidated Statements of Operations | The following table summarizes the total restructuring expense recognized in the Company’s Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2020: Three Months Ended Six Months Ended (In thousands) Cost of product and service revenues $ 2,489 $ 2,564 Research and development 2,918 3,716 Selling, general, and administrative 949 3,681 Total restructuring expense $ 6,356 $ 9,961 |
Organization and Summary of S_4
Organization and Summary of Significant Accounting Policies - Narrative (Details) | 6 Months Ended |
Jun. 30, 2020segment | |
Accounting Policies [Abstract] | |
Number of operating segments | 1 |
Number of reportable segments | 1 |
Organization and Summary of S_5
Organization and Summary of Significant Accounting Policies - Summary of Allowance for Credit Losses by Asset Type (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||
Allowances for accounts receivable and unbilled receivables | $ 3,204 | $ 3,227 |
Long-term unbilled receivables | 33 | 0 |
Net investment in sales-type leases | $ 248 | $ 225 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Revenue Recognition [Abstract] | |||||
Fees to GPOs | $ 1,700 | $ 2,600 | $ 4,600 | $ 4,800 | |
Short-term deferred revenues, net | 107,940 | 107,940 | $ 90,894 | ||
Deferred cost of sales | 19,600 | 19,600 | 13,100 | ||
Deferred revenues recognized | 20,900 | 64,300 | |||
Short-term deferred revenues, gross | 104,000 | ||||
Long-term deferred revenues | $ 6,101 | $ 6,101 | $ 7,083 |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenues by Revenue Type (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenue from External Customer [Line Items] | ||||
Revenues | $ 199,621 | $ 217,413 | $ 429,307 | $ 419,930 |
Product revenues | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 138,942 | 158,379 | 309,015 | 303,989 |
Hardware and software | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 116,919 | 133,005 | 259,352 | 251,819 |
Consumables | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 18,063 | 21,795 | 41,333 | 45,502 |
Other | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | $ 3,960 | $ 3,579 | $ 8,330 | $ 6,668 |
Revenues - Disaggregation of _2
Revenues - Disaggregation of Revenues by Geographic Location (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenue from External Customer [Line Items] | ||||
Revenues | $ 199,621 | $ 217,413 | $ 429,307 | $ 419,930 |
United States | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 178,052 | 195,811 | 385,786 | 375,831 |
Rest of world | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | $ 21,569 | $ 21,602 | $ 43,521 | $ 44,099 |
Revenues - Contract Asset and L
Revenues - Contract Asset and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Revenue Recognition [Abstract] | ||
Short-term unbilled receivables, net | $ 9,602 | $ 11,707 |
Long-term unbilled receivables, net | 16,132 | 12,260 |
Total contract assets | 25,734 | 23,967 |
Short-term deferred revenues, net | 107,940 | 90,894 |
Long-term deferred revenues | 6,101 | 7,083 |
Total contract liabilities | $ 114,041 | $ 97,977 |
Net Income (Loss) Per Share (De
Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | ||||||
Net income (loss) | $ (4,299) | $ 11,311 | $ 15,976 | $ 3,284 | $ 7,012 | $ 19,260 |
Weighted-average shares outstanding — basic (in shares) | 42,659 | 41,371 | 42,509 | 41,033 | ||
Effect of dilutive securities from stock award plans (in shares) | 0 | 1,574 | 1,107 | 1,613 | ||
Weighted-average shares outstanding — diluted (in shares) | 42,659 | 42,945 | 43,616 | 42,646 | ||
Net income (loss) per share - basic (in dollars per share) | $ (0.10) | $ 0.39 | $ 0.16 | $ 0.47 | ||
Net income (loss) per share - diluted (in dollars per share) | $ (0.10) | $ 0.37 | $ 0.16 | $ 0.45 | ||
Anti-dilutive weighted-average shares related to stock award plans (in shares) | 4,931 | 741 | 1,929 | 748 |
Cash and Cash Equivalents and_2
Cash and Cash Equivalents and Fair Value of Financial Instruments (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | $ 133,583,000 | $ 127,210,000 | |
Interest Rate Swap | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Notional amount | $ 100,000,000 | ||
Fixed interest rate | 0.80% | ||
Interest Rate Swap | LIBOR | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Variable rate floor | 0.00% |
Balance Sheet Components - Bala
Balance Sheet Components - Balance Sheet Details (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Inventories: | ||
Raw materials | $ 32,101 | $ 31,331 |
Work in process | 7,833 | 7,620 |
Finished goods | 74,311 | 69,060 |
Total inventories | 114,245 | 108,011 |
Other long-term assets: | ||
Capitalized software, net | 94,166 | 85,070 |
Unbilled receivables, net | 16,132 | 12,260 |
Deferred debt issuance costs | 4,218 | 4,700 |
Other assets | 1,681 | 1,006 |
Total other long-term assets | 116,197 | 103,036 |
Accrued liabilities: | ||
Operating lease liabilities, current portion | 10,463 | 10,058 |
Advance payments from customers | 4,651 | 4,006 |
Rebates and lease buyouts | 18,690 | 14,911 |
Group purchasing organization fees | 4,250 | 5,934 |
Taxes payable | 2,963 | 3,744 |
Other accrued liabilities | 11,962 | 16,914 |
Total accrued liabilities | $ 52,979 | $ 55,567 |
Balance Sheet Components - Accu
Balance Sheet Components - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 878,500 | $ 730,485 | $ 845,254 | $ 679,617 |
Other comprehensive income (loss) before reclassifications | 451 | (923) | (4,243) | (154) |
Amounts reclassified from other comprehensive income (loss), net of tax | 0 | (151) | 0 | (568) |
Net current-period other comprehensive income (loss), net of tax | 451 | (1,074) | (4,243) | (722) |
Ending balance | 887,461 | 773,242 | 887,461 | 773,242 |
Total | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (14,140) | (10,502) | (9,446) | (10,854) |
Ending balance | (13,689) | (11,576) | (13,689) | (11,576) |
Foreign currency translation adjustments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (14,140) | (10,605) | (9,446) | (11,274) |
Other comprehensive income (loss) before reclassifications | 451 | (971) | (4,243) | (302) |
Amounts reclassified from other comprehensive income (loss), net of tax | 0 | 0 | 0 | 0 |
Net current-period other comprehensive income (loss), net of tax | 451 | (971) | (4,243) | (302) |
Ending balance | (13,689) | (11,576) | (13,689) | (11,576) |
Unrealized gain (loss) on interest rate swap hedges | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 0 | 103 | 0 | 420 |
Other comprehensive income (loss) before reclassifications | 0 | 48 | 0 | 148 |
Amounts reclassified from other comprehensive income (loss), net of tax | 0 | (151) | 0 | (568) |
Net current-period other comprehensive income (loss), net of tax | 0 | (103) | 0 | (420) |
Ending balance | $ 0 | $ 0 | $ 0 | $ 0 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation | $ 4.7 | $ 4.4 | $ 9 | $ 8.4 |
Property and Equipment - Proper
Property and Equipment - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 182,260 | $ 169,961 |
Accumulated depreciation and amortization | (124,394) | (115,715) |
Total property and equipment, net | 57,866 | 54,246 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 98,691 | 88,569 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 7,878 | 7,925 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 19,839 | 18,979 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 49,424 | 48,309 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 6,428 | $ 6,179 |
Property and Equipment - Summar
Property and Equipment - Summary of Geographic Information for Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | $ 57,866 | $ 54,246 |
United States | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | 51,811 | 48,769 |
Rest of world | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | $ 6,055 | $ 5,477 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Goodwill Rollforward | |
Beginning balance | $ 336,539 |
Additions | 0 |
Foreign currency exchange rate fluctuations | (1,505) |
Ending balance | $ 335,034 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Intangible Assets [Line Items] | ||
Gross carrying amount | $ 223,935 | $ 224,393 |
Accumulated amortization | (106,881) | (98,485) |
Foreign currency exchange rate fluctuations | (1,344) | (1,041) |
Net carrying amount | 115,710 | 124,867 |
Customer relationships | ||
Intangible Assets [Line Items] | ||
Gross carrying amount | 134,889 | 135,234 |
Accumulated amortization | (58,871) | (54,860) |
Foreign currency exchange rate fluctuations | (1,360) | (1,058) |
Net carrying amount | $ 74,658 | $ 79,316 |
Customer relationships | Minimum | ||
Intangible Assets [Line Items] | ||
Useful life (in years) | 10 years | 10 years |
Customer relationships | Maximum | ||
Intangible Assets [Line Items] | ||
Useful life (in years) | 30 years | 30 years |
Acquired technology | ||
Intangible Assets [Line Items] | ||
Gross carrying amount | $ 77,029 | $ 77,142 |
Accumulated amortization | (40,033) | (36,194) |
Foreign currency exchange rate fluctuations | 5 | 5 |
Net carrying amount | $ 37,001 | $ 40,953 |
Acquired technology | Minimum | ||
Intangible Assets [Line Items] | ||
Useful life (in years) | 5 years | 3 years |
Acquired technology | Maximum | ||
Intangible Assets [Line Items] | ||
Useful life (in years) | 20 years | 20 years |
Backlog | ||
Intangible Assets [Line Items] | ||
Gross carrying amount | $ 1,150 | $ 1,150 |
Accumulated amortization | (934) | (791) |
Foreign currency exchange rate fluctuations | 0 | 0 |
Net carrying amount | $ 216 | $ 359 |
Useful life (in years) | 4 years | 4 years |
Trade names | ||
Intangible Assets [Line Items] | ||
Gross carrying amount | $ 7,650 | $ 7,650 |
Accumulated amortization | (5,374) | (5,037) |
Foreign currency exchange rate fluctuations | 10 | 11 |
Net carrying amount | $ 2,286 | $ 2,624 |
Trade names | Minimum | ||
Intangible Assets [Line Items] | ||
Useful life (in years) | 6 years | 6 years |
Trade names | Maximum | ||
Intangible Assets [Line Items] | ||
Useful life (in years) | 12 years | 12 years |
Patents | ||
Intangible Assets [Line Items] | ||
Gross carrying amount | $ 3,217 | $ 3,217 |
Accumulated amortization | (1,669) | (1,603) |
Foreign currency exchange rate fluctuations | 1 | 1 |
Net carrying amount | $ 1,549 | $ 1,615 |
Patents | Minimum | ||
Intangible Assets [Line Items] | ||
Useful life (in years) | 2 years | 2 years |
Patents | Maximum | ||
Intangible Assets [Line Items] | ||
Useful life (in years) | 20 years | 20 years |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense of intangible assets | $ 4.4 | $ 4.7 | $ 8.9 | $ 9.5 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Future Amortization Expense for Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remaining six months of 2020 | $ 8,592 | |
2021 | 16,120 | |
2022 | 14,770 | |
2023 | 13,675 | |
2024 | 7,916 | |
Thereafter | 54,637 | |
Net carrying amount | $ 115,710 | $ 124,867 |
Debt and Credit Agreements - Na
Debt and Credit Agreements - Narrative (Details) - USD ($) | Nov. 15, 2019 | Jan. 05, 2016 | Nov. 30, 2019 | Dec. 31, 2017 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 26, 2017 |
Debt Instrument [Line Items] | |||||||||
Debt issuance costs incurred and capitalized | $ 0 | ||||||||
Amortization of debt issuance costs | $ 200,000 | $ 600,000 | 482,000 | $ 1,145,000 | |||||
Interest expense | 0 | $ 900,000 | $ 200,000 | $ 2,200,000 | |||||
Letter of Credit | Wells Fargo Bank | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $ 10,000,000 | ||||||||
Swing Line Loan | Wells Fargo Bank | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | 10,000,000 | ||||||||
Line of Credit | Wells Fargo Securities, Citizens Bank and JP Morgan Chase Bank | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt issuance costs incurred and capitalized | $ 2,300,000 | ||||||||
Line of Credit | Wells Fargo Securities, Citizens Bank and JP Morgan Chase Bank | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Commitment fee rate on undrawn commitments | 0.15% | ||||||||
Line of Credit | Wells Fargo Securities, Citizens Bank and JP Morgan Chase Bank | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Commitment fee rate on undrawn commitments | 0.30% | ||||||||
Line of Credit | Wells Fargo Securities, Citizens Bank and JP Morgan Chase Bank | LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Spread on variable interest rate | 1.00% | ||||||||
Line of Credit | Wells Fargo Securities, Citizens Bank and JP Morgan Chase Bank | LIBOR | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Spread on variable interest rate | 1.25% | ||||||||
Line of Credit | Wells Fargo Securities, Citizens Bank and JP Morgan Chase Bank | LIBOR | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Spread on variable interest rate | 2.00% | ||||||||
Line of Credit | Wells Fargo Securities, Citizens Bank and JP Morgan Chase Bank | Federal Funds | |||||||||
Debt Instrument [Line Items] | |||||||||
Spread on variable interest rate | 0.50% | ||||||||
Line of Credit | Wells Fargo Securities, Citizens Bank and JP Morgan Chase Bank | LIBOR Plus 1.00% | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Spread on variable interest rate | 0.25% | ||||||||
Line of Credit | Wells Fargo Securities, Citizens Bank and JP Morgan Chase Bank | LIBOR Plus 1.00% | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Spread on variable interest rate | 1.00% | ||||||||
Line of Credit | Secured Credit Facility | Wells Fargo Bank | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $ 400,000,000 | ||||||||
Line of Credit | Secured Credit Facility | Wells Fargo Bank | LIBOR | Interest Rate Option One | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Spread on variable interest rate | 1.50% | ||||||||
Line of Credit | Secured Credit Facility | Wells Fargo Bank | LIBOR | Interest Rate Option One | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Spread on variable interest rate | 2.25% | ||||||||
Line of Credit | Secured Credit Facility | Wells Fargo Bank | LIBOR | Interest Rate Option Two | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Spread on variable interest rate | 0.50% | ||||||||
Line of Credit | Secured Credit Facility | Wells Fargo Bank | LIBOR | Interest Rate Option Two | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Spread on variable interest rate | 1.25% | ||||||||
Line of Credit | Secured Credit Facility | Wells Fargo Bank | Federal Funds | Interest Rate Option Two | |||||||||
Debt Instrument [Line Items] | |||||||||
Spread on variable interest rate | 0.50% | ||||||||
Line of Credit | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Balance transfer | $ 80,000,000 | ||||||||
Outstanding loan balance | $ 0 | ||||||||
Line of Credit | Revolving Credit Facility | Wells Fargo Bank | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $ 200,000,000 | $ 315,000,000 | |||||||
Term of debt instrument | 5 years | ||||||||
Debt issuance costs incurred and capitalized | $ 2,100,000 | ||||||||
Line of Credit | Revolving Credit Facility | Wells Fargo Bank | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Commitment fee rate on undrawn commitments | 0.20% | ||||||||
Line of Credit | Revolving Credit Facility | Wells Fargo Bank | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Commitment fee rate on undrawn commitments | 0.35% | ||||||||
Line of Credit | Revolving Credit Facility | Wells Fargo Securities, Citizens Bank and JP Morgan Chase Bank | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $ 500,000,000 | ||||||||
Term of debt instrument | 5 years | ||||||||
Line of Credit | Term Loan Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Balance transfer | $ (80,000,000) | ||||||||
Line of Credit | Term Loan Facility | Wells Fargo Bank | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $ 200,000,000 | ||||||||
Term of debt instrument | 5 years | ||||||||
Line of Credit | Letter of Credit | Wells Fargo Securities, Citizens Bank and JP Morgan Chase Bank | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | 15,000,000 | ||||||||
Line of Credit | Swing Line Loan | Wells Fargo Securities, Citizens Bank and JP Morgan Chase Bank | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | 25,000,000 | ||||||||
Line of Credit | Incremental Loan Facility | Wells Fargo Securities, Citizens Bank and JP Morgan Chase Bank | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $ 250,000,000 |
Debt and Credit Agreements - Ch
Debt and Credit Agreements - Changes in the Carrying Amount of Debt Obligations (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Long-term Debt [Roll Forward] | ||
Balance | $ 50,000 | |
Proceeds | 0 | |
Repayments | (50,000) | $ (60,000) |
Balance | $ 0 |
Debt and Credit Agreements - _2
Debt and Credit Agreements - Changes in the Balance of Deferred Debt Issuance Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Change In Debt Issuance Costs, Net [Roll Forward] | ||||
Balance | $ 4,700 | |||
Additions | 0 | |||
Amortization | $ (200) | $ (600) | (482) | $ (1,145) |
Balance | $ 4,218 | $ 4,218 |
Lessor Leases - Narrative (Deta
Lessor Leases - Narrative (Details) | 6 Months Ended |
Jun. 30, 2020 | |
Lease Receivable | Customer Concentration Risk | |
Lessor, Lease, Description [Line Items] | |
Concentration risk percentage | 61.00% |
Minimum | |
Lessor, Lease, Description [Line Items] | |
Term of sales-type leases | 1 year |
Term of operating leases | 1 year |
Maximum | |
Lessor, Lease, Description [Line Items] | |
Term of sales-type leases | 5 years |
Term of operating leases | 7 years |
Lessor Leases - Income Recogniz
Lessor Leases - Income Recognized from Sales-Type Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Leases [Abstract] | ||||
Sales-type lease revenues | $ 6,612 | $ 13,309 | $ 13,004 | $ 24,816 |
Cost of sales-type lease revenues | (2,655) | (5,575) | (5,224) | (10,395) |
Selling profit on sales-type lease revenues | 3,957 | 7,734 | 7,780 | 14,421 |
Interest income on sales-type lease receivables | $ 526 | $ 399 | $ 987 | $ 808 |
Lessor Leases - Components of S
Lessor Leases - Components of Sales-Type Lease Receivables (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Net minimum lease payments to be received | $ 33,750 | $ 32,360 |
Less: Unearned interest income portion | (2,855) | (2,840) |
Net investment in sales-type leases | 30,895 | 29,520 |
Less: Current portion | (9,934) | (9,770) |
Long-term investment in sales-type leases, net | $ 20,961 | $ 19,750 |
Lessor Leases - Maturity Schedu
Lessor Leases - Maturity Schedule of Future Minimum Lease Payments under Sales-Type Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Remaining six months of 2020 | $ 6,838 | |
2021 | 8,769 | |
2022 | 8,005 | |
2023 | 5,802 | |
2024 | 3,031 | |
Thereafter | 1,305 | |
Net minimum lease payments to be received | 33,750 | $ 32,360 |
Present value adjustment | (2,855) | $ (2,840) |
Total net investment in sales-type leases | $ 30,895 |
Lessor Leases - Income Recogn_2
Lessor Leases - Income Recognized from Operating Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Leases [Abstract] | ||||
Rental income | $ 3,024 | $ 3,365 | $ 6,001 | $ 6,652 |
Lessee Leases - Narrative (Deta
Lessee Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Lessee, Lease, Description [Line Items] | ||||
Operating lease cost | $ 3.4 | $ 3.6 | $ 7 | $ 7.3 |
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Term of operating leases | 1 year | 1 year | ||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Term of operating leases | 12 years | 12 years |
Lessee Leases - Maturity Schedu
Lessee Leases - Maturity Schedule of Future Minimum Lease Payments under Operating Leases and the Reconciliation to the Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Remaining six months of 2020 | $ 6,890 | |
2021 | 13,572 | |
2022 | 12,296 | |
2023 | 8,660 | |
2024 | 8,059 | |
Thereafter | 20,170 | |
Total operating lease payments | 69,647 | |
Present value adjustment | (12,494) | |
Total operating lease liabilities | 57,153 | |
Current portion of operating lease liabilities | 10,463 | $ 10,058 |
Long-term portion of operating lease liabilities | $ 46,690 | $ 50,669 |
Location of current operating lease liabilities in the Condensed Consolidated Balance Sheets | us-gaap:AccruedLiabilitiesCurrent |
Lessee Leases - Supplemental Ca
Lessee Leases - Supplemental Cash Flow Information Related to Operating Leases (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of lease liabilities | $ 7,067 | $ 7,391 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 1,335 | $ 557 |
Lessee Leases - Weighted-Averag
Lessee Leases - Weighted-Average Remaining Lease Term and Weighted-Average Discount Rate (Details) | Jun. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Weighted-average remaining lease term | 6 years 1 month 6 days | 6 years 4 months 24 days |
Weighted-average discount rate | 6.40% | 6.40% |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Jun. 30, 2020USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Non-cancelable purchase commitments | $ 66.3 |
Non-cancelable purchase commitments expected to be paid within the year | $ 64.7 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Income Tax Contingency [Line Items] | |||||
Annual effective tax rate | 28.00% | 24.80% | |||
Net tax expense on sale of intellectual property rights | $ 9,600 | ||||
Discrete tax benefit | $ 2,518 | $ (1,158) | $ 2,500 | (9,225) | |
Unrecognized tax benefits | 17,300 | 17,300 | $ 16,800 | ||
Accrued interest and penalties | $ 1,100 | 1,100 | $ 1,000 | ||
Equity Compensation | |||||
Income Tax Contingency [Line Items] | |||||
Discrete tax benefit | $ 3,300 | $ 7,000 |
Employee Benefits and Share-B_3
Employee Benefits and Share-Based Compensation - Shared-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based compensation expense | $ 11,351 | $ 8,260 | $ 22,010 | $ 16,670 |
Cost of product and service revenues | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based compensation expense | 2,130 | 1,416 | 3,900 | 2,878 |
Research and development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based compensation expense | 1,854 | 1,584 | 3,622 | 3,286 |
Selling, general, and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based compensation expense | $ 7,367 | $ 5,260 | $ 14,488 | $ 10,506 |
Employee Benefits and Share-B_4
Employee Benefits and Share-Based Compensation - Assumptions Used to Value Stock Options Granted (Details) - Stock Options | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected life | 4 years 8 months 12 days | 4 years 3 months 18 days | 4 years 8 months 12 days | 4 years 4 months 24 days |
Expected volatility, % | 42.20% | 33.20% | 37.90% | 33.20% |
Risk-free interest rate, % | 0.50% | 2.10% | 0.90% | 2.30% |
Estimated forfeiture rate, % | 5.70% | 7.20% | 5.70% | 7.20% |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Employee Benefits and Share-B_5
Employee Benefits and Share-Based Compensation - Assumptions Used to Value ESPP Shares Granted (Details) - ESPP - 1997 Plan | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expected volatility (minimum) | 30.40% | 28.20% | 30.40% | 28.20% | |
Expected volatility (maximum) | 39.90% | 38.40% | 39.90% | 38.40% | |
Risk-free interest rate (minimum) | 1.40% | 1.30% | 1.40% | 1.30% | |
Risk-free interest rate (maximum) | 2.70% | 2.70% | 2.70% | 2.70% | |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% | |
Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expected life | 6 months | 6 months | 6 months | 6 months | |
Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expected life | 2 years | 2 years | 2 years | 2 years |
Employee Benefits and Share-B_6
Employee Benefits and Share-Based Compensation - Summary of Share Option Activity (Details) - Stock Options - 2009 Plan - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Number of Shares | ||
Outstanding at beginning of period (in shares) | 3,902 | |
Granted (in shares) | 674 | |
Exercised (in shares) | (315) | |
Expired (in shares) | (7) | |
Forfeited (in shares) | (126) | |
Outstanding at end of period (in shares) | 4,128 | 3,902 |
Exercisable at end of period (in shares) | 1,699 | |
Vested and expected to vest at end of period (in shares) | 3,945 | |
Weighted-Average Exercise Price | ||
Outstanding beginning balance (in dollars per share) | $ 52.75 | |
Granted (in dollars per share) | 80.63 | |
Exercised (in dollars per share) | 37.28 | |
Expired (in dollars per share) | 56.83 | |
Forfeited (in dollars per share) | 62.61 | |
Outstanding ending balance (in dollars per share) | 58.17 | $ 52.75 |
Exercisable at end of period (in dollars per share) | 41.50 | |
Vested and expected to vest at end of period (in dollars per share) | $ 57.46 | |
Weighted-Average Remaining Years | ||
Outstanding | 7 years 4 months 24 days | 7 years 8 months 12 days |
Exercisable | 6 years | |
Vested and expected to vest | 7 years 3 months 18 days | |
Aggregate Intrinsic Value | ||
Outstanding | $ 65,499 | $ 113,198 |
Exercisable | 50,644 | |
Vested and expected to vest | $ 64,859 |
Employee Benefits and Share-B_7
Employee Benefits and Share-Based Compensation - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Aug. 02, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 11,351,000 | $ 8,260,000 | $ 22,010,000 | $ 16,670,000 | |
Number of shares repurchased (in shares) | 0 | 0 | 0 | 0 | |
2016 and 2014 Share Repurchase Programs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Remaining value of shares authorized for repurchase under stock repurchase programs | $ 54,900,000 | $ 54,900,000 | |||
The 2016 Repurchase Program | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Value of shares authorized for repurchase under stock repurchase programs | $ 50,000,000 | ||||
2009 Plan | Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted-average fair value of options granted (in dollars per share) | $ 26.03 | $ 24.40 | $ 26.21 | $ 24.20 | |
Intrinsic value of options exercised | $ 2,500,000 | $ 7,200,000 | $ 12,400,000 | $ 24,300,000 | |
Unrecognized compensation cost of unvested stock options | 47,400,000 | $ 47,400,000 | |||
Weighted average period of compensation cost not yet recognized (in years) | 2 years 9 months 18 days | ||||
2009 Plan | RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average period of compensation cost not yet recognized (in years) | 2 years 10 months 24 days | ||||
Unrecognized compensation cost | 32,500,000 | $ 32,500,000 | |||
2009 Plan | RSAs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average period of compensation cost not yet recognized (in years) | 10 months 24 days | ||||
Unrecognized compensation cost | 1,200,000 | $ 1,200,000 | |||
2009 Plan | PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average period of compensation cost not yet recognized (in years) | 1 year 4 months 24 days | ||||
Unrecognized compensation cost | 5,400,000 | $ 5,400,000 | |||
1997 Plan | ESPP | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average period of compensation cost not yet recognized (in years) | 1 year 2 months 12 days | ||||
Shares purchased under ESPP (in shares) | 217,000 | 210,000 | |||
Weighted-average price of shares purchased (in dollars per share) | $ 43.51 | $ 40.20 | |||
Unrecognized compensation cost | $ 5,500,000 | $ 5,500,000 |
Employee Benefits and Share-B_8
Employee Benefits and Share-Based Compensation - Summary of Restricted Stock Unit Activity (Details) - RSUs - 2009 Plan - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Number of Shares | ||
Outstanding at beginning of period (in shares) | 544 | |
Granted (Awarded) (in shares) | 89 | |
Vested (Released) (in shares) | (81) | |
Forfeited (in shares) | (41) | |
Outstanding and unvested at end of period (in shares) | 511 | 544 |
Weighted-Average Grant Date Fair Value | ||
Outstanding and unvested (in dollars per share) | $ 66.65 | |
Granted (Awarded) (in dollars per share) | 81.25 | |
Vested (Released) (in dollars per share) | 56.57 | |
Forfeited (in dollars per share) | 63.67 | |
Outstanding and unvested (in dollars per share) | $ 71.03 | $ 66.65 |
Weighted-Average Remaining Years | ||
Outstanding and unvested | 1 year 6 months | 1 year 7 months 6 days |
Aggregate Intrinsic Value | ||
Outstanding and unvested | $ 36,062 | $ 44,492 |
Employee Benefits and Share-B_9
Employee Benefits and Share-Based Compensation - Summary of Restricted Stock Award Activity (Details) - RSAs - 2009 Plan shares in Thousands | 6 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Number of Shares | |
Outstanding at beginning of period (in shares) | shares | 17 |
Granted (Awarded) (in shares) | shares | 21 |
Vested (Released) (in shares) | shares | (17) |
Outstanding and unvested at end of period (in shares) | shares | 21 |
Weighted-Average Grant Date Fair Value | |
Outstanding and unvested (in dollars per share) | $ / shares | $ 81.92 |
Granted (Awarded) (in dollars per share) | $ / shares | 68.11 |
Vested (Released) (in dollars per share) | $ / shares | 81.92 |
Outstanding and unvested (in dollars per share) | $ / shares | $ 68.11 |
Employee Benefits and Share-_10
Employee Benefits and Share-Based Compensation - Summary of Performance-Based Restricted Stock Activity (Details) - Performance-Based Restricted Stock - 2009 Plan shares in Thousands | 6 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Number of Shares | |
Outstanding at beginning of period (in shares) | shares | 134 |
Granted (Awarded) (in shares) | shares | 63 |
Vested (Released) (in shares) | shares | (44) |
Forfeited (in shares) | shares | (5) |
Outstanding and unvested at end of period (in shares) | shares | 148 |
Weighted-Average Grant Date Fair Value | |
Outstanding and unvested (in dollars per share) | $ / shares | $ 55.82 |
Granted (Awarded) (in dollars per share) | $ / shares | 82.41 |
Vested (Released) (in dollars per share) | $ / shares | 54.25 |
Forfeited (in dollars per share) | $ / shares | 81.72 |
Outstanding and unvested (in dollars per share) | $ / shares | $ 66.69 |
Employee Benefits and Share-_11
Employee Benefits and Share-Based Compensation - Summary of Shares Reserved for Future Issuance Under Equity Incentive Plans (Details) shares in Thousands | Jun. 30, 2020shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares reserved for future issuance (in shares) | 8,159 |
Share options outstanding | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares reserved for future issuance (in shares) | 4,128 |
Non-vested restricted stock awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares reserved for future issuance (in shares) | 680 |
Shares authorized for future issuance | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares reserved for future issuance (in shares) | 2,029 |
ESPP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares reserved for future issuance (in shares) | 1,322 |
Equity Offerings - Narrative (D
Equity Offerings - Narrative (Details) - Distribution Agreement - USD ($) $ / shares in Units, shares in Thousands | Nov. 03, 2017 | Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2020 |
Subsidiary, Sale of Stock [Line Items] | ||||
Maximum aggregate offering price | $ 125,000,000 | |||
Gross proceeds from sales of common stock | $ 17,900,000 | $ 38,500,000 | ||
Issuance costs on sales of common stock | $ 300,000 | $ 700,000 | ||
Number of shares sold (in shares) | 217 | 460 | ||
Price per share sold (in dollars per share) | $ 82.51 | $ 83.81 | ||
Aggregate value of shares available to be offered | $ 31,500,000 |
Restructuring Expenses - Narrat
Restructuring Expenses - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020USD ($) | Jun. 30, 2020USD ($) | |
Restructuring and Related Activities [Abstract] | ||
Restructuring expenses | $ 6,356 | $ 9,961 |
Unpaid balance related to restructuring plan | $ 6,600 | $ 6,600 |
Restructuring Expenses - Total
Restructuring Expenses - Total Restructuring Expense Recognized in the Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | $ 6,356 | $ 9,961 |
Cost of product and service revenues | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 2,489 | 2,564 |
Research and development | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 2,918 | 3,716 |
Selling, general, and administrative | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | $ 949 | $ 3,681 |