XML 33 R20.htm IDEA: XBRL DOCUMENT
v3.6.0.2

Stock-Based Compensation | 12 Months Ended
--- | ---
Dec. 31, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] |
Stock-Based Compensation | Note 11 — Stock-Based Compensation We issue stock-based awards from our equity incentive plans, which are more fully described in Note 9. Stock-based compensation expense was recognized as follows (in thousands):
|  | Year Ended December 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
Cost of goods sold |  | $ | 1,620 |  |  | $ | 1,142 |  |  | $ | 1,161 |
Research and development |  |  | 13,093 |  |  |  | 9,207 |  |  |  | 7,528 |
General and administrative |  |  | 11,137 |  |  |  | 9,320 |  |  |  | 8,328 |
Total stock-based compensation |  | $ | 25,850 |  |  | $ | 19,669 |  |  | $ | 17,017 |
As of December 31, 2016, total unrecognized compensation costs of $71.2 million related to unvested stock-based compensation arrangements are expected to be recognized as expense over a weighted-average period of 1.8 years. Black-Scholes Assumptions The following table lists the Black-Scholes option-pricing model assumptions used to calculate the fair value of employee and director stock options.
|  | Year Ended December 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
Average risk-free interest rate |  |  | 1.4 | % |  |  | 1.6 | % |  |  | 1.6 | %
Dividend yield |  |  | 0.0 | % |  |  | 0.0 | % |  |  | 0.0 | %
Average volatility factor |  |  | 51.7 | % |  |  | 50.8 | % |  |  | 51.6 | %
Average weighted average expected life |  | 5.3 years |  |  | 5.3 years |  |  | 5.2 years |
The average risk-free interest rate is based on the U.S. treasury yield curve in effect at the time of grant for periods commensurate with the expected life of the stock-based award. We have never paid dividends, nor do we expect to pay dividends in the foreseeable future; therefore, we used a dividend yield of 0.0%. Our estimate of expected volatility is based on the daily historical trading data of our common stock at the time of grant over a historical period commensurate with the expected life of the stock-based award. We estimated the weighted-average expected life based on the contractual and vesting terms of the stock options, as well as historical cancellation and exercise data. Stock-based compensation expense resulting from our ESPP was not material in the years ended December 31, 2016, 2015, and 2014. Summary of Stock Option Activity The table below presents a summary of stock option activity under our equity incentive plans (in thousands, except for price per share and contractual life information):
|  | Number of Shares |  |  | Weighted- Average Exercise Price per Share |  |  | Weighted- Average Remaining Contractual Life (in Years) |  |  | Aggregate Intrinsic Value(1) |
Outstanding at December 31, 2015 |  |  | 18,782 |  |  | $ | 11.22 |  |  |  |  |  |  |  |  |
Options granted |  |  | 3,368 |  |  |  | 13.92 |  |  |  |  |  |  |  |  |
Options exercised |  |  | (2,337 | ) |  |  | 8.03 |  |  |  |  |  |  |  |  |
Options forfeited & canceled |  |  | (400 | ) |  |  | 13.97 |  |  |  |  |  |  |  |  |
Outstanding at December 31, 2016 |  |  | 19,413 |  |  | $ | 12.01 |  |  |  | 4.61 |  |  | $ | 26,513 |
Vested and expected to vest at December 31, 2016 |  |  | 18,970 |  |  | $ | 11.97 |  |  |  | 4.55 |  |  | $ | 26,485 |
Exercisable at December 31, 2016 |  |  | 12,783 |  |  | $ | 10.94 |  |  |  | 3.49 |  |  | $ | 25,684 |
(1) | Aggregate intrinsic value represents the difference between the exercise price of the option and the closing market price of our common stock on December 31, 2016.
The weighted-average grant-date fair value per share of options granted during the years ended December 31, 2016, 2015, and 2014 was $6.54, $6.55, and $6.50, respectively. The total intrinsic value of options exercised during the years ended December 31, 2016, 2015, and 2014 was $17.9 million, $20.5 million, and $25.9 million, respectively. The estimated fair value of options vested during the years ended December 31, 2016, 2015, and 2014 was $16.7 million, $16.8 million, and $15.2 million, respectively. Summary of RSU Activity During the years ended December 31, 2016 and 2015, we granted RSUs to officers, employees and non-employee directors. No RSUs vested during 2015 and no RSUs were granted during 2014. Most of our RSU awards have a strictly time-based vesting schedule while some RSU awards vest upon achievement of pre-determined performance milestones along with a time-based vesting schedule. We expense the grant date fair value of the RSUs expected to vest ratably over the expected service or performance period. The fair value of an RSU is equal to the closing price of our common stock on the grant date. A summary of RSU award activity is as follows (in thousands except for per share amounts):
|  | Units Issued |  |  | Weighted- Average Grant Date Fair Value |  |  | Aggregate Intrinsic Value(1) |
Balance at December 31, 2015 |  |  | 1,306 |  |  | $ | 15.30 |  |  |  |  |
Granted |  |  | 1,493 |  |  |  | 12.50 |  |  |  |  |
Vested and released |  |  | (491 | ) |  |  | 14.96 |  |  |  |  |
Forfeited and canceled |  |  | (60 | ) |  |  | 14.87 |  |  |  |  |
Balance at December 31, 2016 |  |  | 2,248 |  |  | $ | 13.53 |  |  | $ | 27,593 |
(1) | Aggregate intrinsic value represents the difference between the grant price of the award, which is zero, and the closing market price of our common stock on December 31, 2016.

X
- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=65895303&loc=d3e17540-113929 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68057994&loc=d3e25284-112666 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 14) -URI http://asc.fasb.org/extlink&oid=27013229&loc=d3e301413-122809 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration