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Summary of Significant Accounting Policies (Tables)
 12 Months Ended
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