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Summary of Significant Accounting Policies (Tables) | 12 Months Ended
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Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Restatement to Previously Reported Income | The effects of these prior period corrections on the statement of operations and comprehensive income are as follows (in thousands except for per share data):
| Year ended December 31, 2015
| As Reported |  | Adjustments |  | As Restated
Income tax benefit | $ | 219,596 |  |  | $ | (27,481 | ) |  | $ | 192,115 |
Net income | 257,305 |  |  | (27,481 | ) |  | 229,824 |
Comprehensive income | 257,273 |  |  | (27,481 | ) |  | 229,792 |
Basic earnings per share | 13.00 |  |  | (1.39 | ) |  | 11.61 |
Diluted earnings per share data | 12.12 |  |  | (1.29 | ) |  | 10.83 |
The effects of these prior period corrections on the condensed consolidated statement of operations and comprehensive income are as follows
| Nine months ended September 30, 2015
| As Previously Reported in 10-K(1) |  | Adjustments |  | As Restated
Income tax benefit | $ | 219,083 |  |  | $ | (27,481 | ) |  | $ | 191,602 |
Net income | 250,964 |  |  | (27,481 | ) |  | 223,483 |
Comprehensive income | 251,351 |  |  | (27,481 | ) |  | 223,870 |
Basic earnings per share | 12.71 |  |  | (1.38 | ) |  | 11.33 |
Diluted earnings per share data | 11.88 |  |  | (1.30 | ) |  | 10.58 |
Basic | 19,887 |  |  | — |  |  | 19,887 |
Diluted | 21,122 |  |  | — |  |  | 21,122 |
| Three months ended September 30, 2015
| As Previously Reported in 10-K(1) |  | Adjustments |  | As Restated
Income tax benefit (expense) | $ | 219,362 |  |  | $ | (27,481 | ) |  | $ | 191,881 |
Net income | 226,646 |  |  | (27,481 | ) |  | 199,165 |
Comprehensive income | 222,981 |  |  | (27,481 | ) |  | 195,500 |
Basic earnings per share | 11.40 |  |  | (1.39 | ) |  | 10.01 |
Diluted earnings per share data | 10.56 |  |  | (1.28 | ) |  | 9.28 |
The restated amounts are set forth in the following tables (in thousands, except share data):
| Three months ended, |  | Nine months ended,
| September 30, 2015 |  | September 30, 2015
| Previously Reported in 10-Q |  | Restated |  | Previously Reported in 10-Q |  | Restated
Income tax benefit | $ | 217,255 |  |  | $ | 219,362 |  |  | $ | 216,976 |  |  | $ | 219,083 |
Net income | 224,539 |  |  | 226,646 |  |  | 248,857 |  |  | 250,964 |
Basic net income per share | $ | 11.29 |  |  | $ | 11.40 |  |  | $ | 12.61 |  |  | $ | 12.71 |
Diluted net income per share | $ | 10.46 |  |  | $ | 10.56 |  |  | $ | 11.78 |  |  | $ | 11.88 |
Restatement of Previously Reported Balance Sheet Information | The effects of these prior period corrections on the consolidated balance sheet is as follows:
| As of December 31, 2015
| As Reported |  | Adoption of ASU 2015-03(1) |  | Adjustments |  | As Restated
Current debt issuance costs | $ | 860 |  |  | $ | (860 | ) |  | $ | — |  |  | $ | — |
Long-term debt issuance costs | $ | 2,527 |  |  | $ | (2,527 | ) |  | $ | — |  |  | $ | — |
Deferred income taxes | $ | 216,564 |  |  | $ | — |  |  | $ | (27,481 | ) |  | $ | 189,083 |
Total assets | 533,929 |  |  | (3,387 | ) |  | (27,481 | ) |  | 503,061 |
2019 convertible senior notes, net - current | — |  |  | (3,387 | ) |  | 205,372 |  |  | 201,985 |
Total current liabilities | 20,836 |  |  | (3,387 | ) |  | 205,372 |  |  | 222,821 |
2019 convertible senior notes, net - long term(1) | 205,372 |  |  | — |  |  | (205,372 | ) |  | — |
Total liabilities | 229,538 |  |  | (3,387 | ) |  | — |  |  | 226,151 |
Equity component of currently redeemable convertible notes (Note 5) | — |  |  | — |  |  | 39,628 |  |  | 39,628 |
Additional paid-in capital | 701,478 |  |  | — |  |  | (39,628 | ) |  | 661,850 |
Accumulated deficit | (402,010 | ) |  | — |  |  | (27,481 | ) |  | (429,491 | )
Total stockholders' equity | 304,391 |  |  | — |  |  | (67,109 | ) |  | 237,282 |
Total liabilities and stockholders' equity | 533,929 |  |  | (3,387 | ) |  | (27,481 | ) |  | 503,061 |
(1) Unamortized issuance cost was reclassified to debt discount in this 10-K/A form due to that it is filed after the Company's retrospective adoption of ASU 2015-03, Interest-Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs in Q1 2016.
Upon the occurrence of certain circumstances, holders of the 2019 Convertible Senior Notes may require us to purchase all or a portion of their notes for cash, which may require the use of a substantial amount of cash. If such cash is not available, we may be required to sell other assets or enter into alternate financing arrangements at terms that may or may not be desirable. The existence of the 2019 Convertible Senior Notes and the obligations that we incurred by issuing them may restrict our ability to take advantage of certain future opportunities, such as engaging in future debt or equity financing activities.
| As of September 30, 2015
| Previously Reported in 10-Q |  | Restated
Long-term deferred tax assets | $ | 206,423 |  |  | $ | 208,530 |
Accumulated deficit | (410,458 | ) |  | (408,351 | )
The effects of these prior period corrections on the condensed consolidated balance sheet is as follows
| As of September 30, 2015
| As Previously Reported in 10-K(1) |  | Adjustments |  | As Restated
Deferred income taxes | $ | 208,530 |  |  | $ | (27,481 | ) |  | $ | 181,049 |
Total assets | 523,807 |  |  | (27,481 | ) |  | 496,326 |
Accumulated deficit | (408,351 | ) |  | (27,481 | ) |  | (435,832 | )
Total stockholders' equity | 294,288 |  |  | (27,481 | ) |  | 266,807 |
Total liabilities and stockholders' equity | 523,807 |  |  | (27,481 | ) |  | 496,326 |
(1) The Company opted to restate certain amounts in the previously reported financial statements as of and for the three and nine months ended September 30, 2015 to correct an immaterial error in the calculation of certain capital loss carry-forwards at September 30, 2015 related to the sale of the Avinza product line, which amounted to $2.1 million.
Summary of computation of basic and diluted net income (loss) per share | The following table presents the computation of basic and diluted net income per share for the periods indicated (in thousands, except per share amounts):
| Year Ended December 31,
| Restated |  |  |  |
EPS Attributable to Common Shareholders | 2015 |  | 2014 |  | 2013
Net income from continuing operations | $ | 229,824 |  |  | $ | 12,024 |  |  | $ | 8,832 |
Discontinued operations | — |  |  | — |  |  | 2,588 |
Net income | $ | 229,824 |  |  | $ | 12,024 |  |  | $ | 11,420 |
Shares used to compute basic income per share | 19,790 |  |  | 20,419 |  |  | 20,312 |
Dilutive potential common shares: |  |  |  |  |
Restricted stock | 56 |  |  | 36 |  |  | 80 |
Stock options | 882 |  |  | 978 |  |  | 353 |
2019 Convertible Senior Notes | 499 |  |  | — |  |  | — |
Shares used to compute diluted income per share | 21,228 |  |  | 21,433 |  |  | 20,745 |
Basic per share amounts: |  |  |  |  |
Income from continuing operations | $ | 11.61 |  |  | $ | 0.59 |  |  | $ | 0.43 |
Discontinued operations | — |  |  | — |  |  | 0.13 |
Net income | $ | 11.61 |  |  | $ | 0.59 |  |  | $ | 0.56 |
Diluted per share amounts: |  |  |  |  |
Income from continuing operations | $ | 10.83 |  |  | $ | 0.56 |  |  | $ | 0.43 |
Discontinued operations | — |  |  | — |  |  | 0.12 |
Net income | $ | 10.83 |  |  | $ | 0.56 |  |  | $ | 0.55 |
Summary of investment categories | The following table summarizes the various investment categories at December 31, 2015 and 2014 (in thousands):
| Cost |  | Gross unrealized gains |  | Gross unrealized losses |  | Estimated fair value
December 31, 2015 |  |  |  |  |  |  |
Short-term investments |  |  |  |  |  |  |
Bank deposits | 43,043 |  |  | — |  |  | (4 | ) |  | 43,039 |
Corporate bonds | 41,238 |  |  | — |  |  | (35 | ) |  | 41,203 |
Commercial paper | 1,747 |  |  | — |  |  | — |  |  | 1,747 |
Asset backed securities | 10,020 |  |  | — |  |  | (5 | ) |  | 10,015 |
Corporate equity securities | 1,843 |  |  | 4,944 |  |  | — |  |  | 6,787 |
| $ | 97,891 |  |  | $ | 4,944 |  |  | $ | (44 | ) |  | $ | 102,791 |
December 31, 2014 |  |  |  |  |  |  |
Short-term investments (Corporate equity securities) | 2,179 |  |  | 4,954 |  |  | $ | — |  |  | $ | 7,133 |
Certificates of deposit-restricted | 1,261 |  |  | — |  |  | — |  |  | 1,261 |
| $ | 3,440 |  |  | $ | 4,954 |  |  | $ | — |  |  | $ | 8,394 |
Schedule of major customers | A relatively small number of partners accounts for a significant percentage of our revenue. Revenue from significant partners, which is defined as 10% or more of our total revenue, was as follows:
| December 31,
| 2015 |  | 2014 |  | 2013
Partner A | 27 | % |  | 37 | % |  | 33 | %
Partner B | 23 | % |  | 31 | % |  | 28 | %
Partner C | 18 | % |  | 10 | % |  | 14 | %
Summary of goodwill and other identifiable intangible assets | Goodwill and other identifiable intangible assets consist of the following (in thousands):
| December 31,
| 2015 |  | 2014
Indefinite lived intangible assets |  |  |
IPR&D | $ | 12,556 |  |  | $ | 12,556 |
Goodwill | 12,238 |  |  | 12,238 |
Definite lived intangible assets |  |  |
Complete technology | 15,267 |  |  | 15,267 |
Less: Accumulated amortization | (3,762 | ) |  | (2,999 | )
Trade name | 2,642 |  |  | 2,642 |
Less: Accumulated amortization | (652 | ) |  | (519 | )
Customer relationships | 29,600 |  |  | 29,600 |
Less: Accumulated amortization | (7,304 | ) |  | (5,824 | )
Total goodwill and other identifiable intangible assets, net | $ | 60,585 |  |  | $ | 62,961 |
Summary of property and equipment | Property and equipment is stated at cost and consists of the following (in thousands):
| December 31,
| 2015 |  | 2014
Lab and office equipment | $ | 2,248 |  |  | $ | 2,232 |
Leasehold improvements | 273 |  |  | 273 |
Computer equipment and software | 632 |  |  | 624 |
| 3,153 |  |  | 3,129 |
Less accumulated depreciation and amortization | (2,781 | ) |  | (2,643 | )
| $ | 372 |  |  | $ | 486 |
Stock option weighted average assumptions | The fair-value for options that were awarded to employees and directors was estimated at the date of grant using the Black-Scholes option valuation model with the following weighted average assumptions:
| Year Ended December 31,
| 2015 |  | 2014 |  | 2013 |
Risk-free interest rate | 1.7%-2.0% |  | 1.9% |  | 1.13%-1.82% |
Expected volatility | 50%-58% |  | 62%-69% |  | 69% |
Expected term | 6.5 years |  | 6 years |  | 6 years |
Forfeiture rate | 8.52% |  | 8.6%-9.7% |  | 8.4%-9.8% |
Schedule for accounting for share-based compensation | The following table summarizes stock-based compensation expense recorded as components of research and development expenses and general and administrative expenses for the periods indicated (in thousands):
| December 31,
| 2015 |  | 2014 |  | 2013
Stock-based compensation expense as a component of: |  |  |  |  |
Research and development expenses | $ | 4,080 |  |  | $ | 3,595 |  |  | $ | 1,705 |
General and administrative expenses | 8,378 |  |  | 7,675 |  |  | 3,961 |
| $ | 12,458 |  |  | $ | 11,270 |  |  | $ | 5,666 |

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