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Document and Entity Information - USD ($) $ in Billions	12 Months Ended
Document and Entity Information - USD ($) $ in Billions	Dec. 31, 2017	Feb. 16, 2018	Jun. 30, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	Emergent BioSolutions Inc.
Entity Central Index Key	0001367644
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 1.1
Entity Common Stock, Shares Outstanding		49,494,612
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	FY
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2017

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 178,292	$ 271,513
Restricted cash	1,043	0
Accounts receivable, net	143,653	138,478
Inventories	142,812	74,002
Income tax receivable, net	2,432	9,996
Prepaid expenses and other current assets	17,157	16,229
Total current assets	485,389	510,218
Property, plant and equipment, net	407,210	376,448
Intangible assets, net	119,597	33,865
Goodwill	49,130	41,001
Deferred tax assets, net	2,834	6,096
Other assets	6,046	2,483
Total assets	1,070,206	970,111
Current liabilities:
Accounts payable	41,751	34,649
Accrued expenses and other current liabilities	4,831	6,368
Accrued compensation	37,882	34,537
Notes payable	0	20,000
Contingent consideration, current portion	2,372	3,266
Deferred revenue, current portion	13,232	7,036
Total current liabilities	100,068	105,856
Contingent consideration, net of current portion	9,902	9,919
Long-term indebtedness	13,457	248,094
Income taxes payable, net of current	12,500	0
Deferred revenue, net of current portion	17,259	8,433
Other liabilities	4,675	1,604
Total liabilities	157,861	373,906
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.001 par value; 15,000,000 shares authorized, 0 shares issued and outstanding at both December 31, 2017 and December 31, 2016	0	0
Common stock, $0.001 par value; 200,000,000 shares authorized, 50,619,808 shares issued and 49,405,365 shares outstanding at December 31, 2017; 40,996,890 shares issued and 40,574,060 shares outstanding at December 31, 2016	50	41
Treasury stock, at cost, 1,214,443 and 422,830 common shares at December 31, 2017 and December 31, 2016, respectively	(39,497)	(6,420)
Additional paid-in capital	618,416	352,435
Accumulated other comprehensive loss	(3,698)	(4,331)
Retained earnings	337,074	254,480
Total stockholders' equity	912,345	596,205
Total liabilities and stockholders' equity	$ 1,070,206	$ 970,111

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2017	Dec. 31, 2016
Stockholders' equity:
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	15,000,000	15,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	50,619,808	40,996,890
Common stock, shares outstanding (in shares)	49,405,365	40,574,060
Treasury stock (in shares)	1,214,443	422,830

Consolidated Statements of Operations - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Revenues:

Product sales

$ 421,516

$ 296,278

$ 328,969

Contract manufacturing

68,935

49,138

42,968

Contracts and grants

70,422

143,366

117,394

Total revenues

560,873

488,782

489,331

Operating expenses:

Cost of product sales and contract manufacturing

195,707

131,284

107,486

Research and development

97,384

108,290

119,186

Selling, general and administrative

143,497

143,686

121,145

Income from operations

124,285

105,522

141,514

Other income (expense):

Interest income

1,753

1,053

572

Interest expense

(6,590)

(7,617)

(6,523)

Other income (expense), net

(815)

263

153

Total other expense, net

(5,652)

(6,301)

(5,798)

Income from continuing operations before provision for income taxes

118,633

99,221

135,716

Provision for income taxes

36,039

36,697

44,300

Net Income from continuing operations

82,594

62,524

91,416

Net loss from discontinued operations

(10,748)

(28,546)

Net income

$ 82,594

$ 51,776

$ 62,870

Net income (loss) per share - basic:

Net income per share from continuing operations-basic (in dollars per share)

$ 1.98

$ 1.56

$ 2.37

Net loss per share from discontinued operations-basic (in dollars per share)

(0.27)

(0.74)

Net income per share-basic (in dollars per share)

1.98

1.29

1.63

Net income (loss) per share - diluted:

Net income from continuing operations-diluted (in dollars per share)

1.71

1.35

2.02

Net loss per share from discontinued operations-diluted (in dollars per share)

(0.22)

(0.61)

Net income per share-diluted (in dollars per share)

^[1]

$ 1.71

$ 1.13

$ 1.41

Weighted-average number of shares - basic (in shares)

41,816,431

40,184,159

38,595,435

Weighted-average number of shares - diluted (in shares)

50,327,937

49,335,112

47,255,842

[1]	See "Earnings per share" footnote for details on calculation.

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Consolidated Statements of Comprehensive Income [Abstract]
Net income	$ 82,594	$ 51,776	$ 62,870
Foreign currency translations, net of tax	633	(1,618)	295
Comprehensive income	$ 83,227	$ 50,158	$ 63,165

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities:
Net income	$ 82,594	$ 51,776	$ 62,870
Adjustments to reconcile to net cash provided by (used in) operating activities:
Stock-based compensation expense	15,213	18,477	15,848
Depreciation and amortization	42,572	38,229	35,335
Income taxes	3,259	5,190	3,464
Change in fair value of contingent obligations	7,830	(10,838)	(10,599)
Impairment of intangible assets (including IPR&D)	0	701	9,827
Impairment and abandonment of long-lived assets	1,936	5,569	1,147
Bad debt expense	0	0	3,481
Excess tax benefits from stock-based compensation	0	(10,619)	(11,281)
Other	1,011	452	271
Changes in operating assets and liabilities:
Accounts receivable	(4,810)	(22,446)	(64,351)
Inventories	6,066	(9,026)	(11,262)
Income taxes	20,067	(3,424)	(5,492)
Prepaid expenses and other assets	(3,730)	(2,089)	2,319
Accounts payable	16,134	(14,791)	4,749
Accrued expenses and other liabilities	1,626	624	45
Accrued compensation	3,349	2,236	2,680
Provision for chargebacks	0	0	(8)
Deferred revenue	15,022	4,602	3,474
Net cash provided by operating activities	208,139	54,623	42,517
Cash flows from investing activities:
Purchases of property, plant and equipment	(54,828)	(76,257)	(44,812)
Acquisitions	(195,104)	0	(650)
Net cash used in investing activities	(249,932)	(76,257)	(45,462)
Cash flows from financing activities:
Proceeds from long-term debt obligations	0	0	2,000
Issuance of common stock upon exercise of stock options	19,346	17,125	25,961
Excess tax benefits from stock-based compensation	0	10,619	11,281
Debt issuance costs	(1,426)	0	0
Taxes paid on behalf of employees for equity activity	(4,260)	(1,136)	1,942
Payments of notes payable	(20,000)	0	0
Distribution to Aptevo	0	(45,000)	0
Contingent consideration payments	(10,941)	(1,385)	(5,693)
Restricted cash	(1,043)	0	0
Purchase of treasury stock	(33,077)	0	(100)
Net cash (used in) provided by financing activities	(51,401)	(19,777)	35,391
Effect of exchange rate changes on cash and cash equivalents	(27)	129	(150)
Net (decrease) increase in cash and cash equivalents	(93,221)	(41,282)	32,296
Cash and cash equivalents at beginning of year	271,513	312,795	280,499
Cash and cash equivalents at end of year	178,292	271,513	312,795
Supplemental disclosure of cash flow information:
Cash paid during the year for interest	8,416	8,210	7,751
Cash paid during the year for income taxes	11,977	10,081	28,271
Supplemental information on non-cash investing and financing activities:
Purchases of property, plant and equipment unpaid at year end	$ 4,587	$ 13,459	$ 4,379

Consolidated Statement of Changes in Stockholders' Equity - USD ($) $ in Thousands	$0.001 Par Value Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Loss [Member]	Retained Earnings [Member]	Total
Balance at Dec. 31, 2014	$ 38	$ 274,222	$ (6,320)	$ (3,008)	$ 288,269	$ 553,201
Balance (in shares) at Dec. 31, 2014	38,129,872		(420,189)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Employee equity plans activity	$ 2	43,749		0	0	43,751
Employee equity plans activity (in shares)	1,699,536
Treasury stock			$ (100)	0		(100)
Treasury stock (in shares)			(2,641)
Net income					62,870	62,870
Foreign currency translation, net of tax				295	0	295
Balance at Dec. 31, 2015	$ 40	317,971	$ (6,420)	(2,713)	351,139	660,017
Balance (in shares) at Dec. 31, 2015	39,829,408		(422,830)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Employee equity plans activity	$ 1	34,464		0	0	34,465
Employee equity plans activity (in shares)	1,167,482
Separation of Aptevo					(148,435)	(148,435)
Treasury stock			$ 0	0		0
Treasury stock (in shares)			0
Net income				0	51,776	51,776
Foreign currency translation, net of tax				(1,618)	0	(1,618)
Balance at Dec. 31, 2016	$ 41	352,435	$ (6,420)	(4,331)	254,480	$ 596,205
Balance (in shares) at Dec. 31, 2016	40,996,890		(422,830)			40,574,060
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Employee equity plans activity	$ 1	27,951		0	0	$ 27,952
Employee equity plans activity (in shares)	1,114,830
Shares issued to extinguish convertible notes	$ 8	238,030				$ 238,038
Shares issued to extinguish convertible notes (in shares)	8,508,088					8,508,088
Treasury stock			$ (33,077)	0		$ (33,077)
Treasury stock (in shares)			(791,613)			(800,000)
Net income				0	82,594	$ 82,594
Foreign currency translation, net of tax				633	0	633
Balance at Dec. 31, 2017	$ 50	$ 618,416	$ (39,497)	$ (3,698)	$ 337,074	$ 912,345
Balance (in shares) at Dec. 31, 2017	50,619,808		(1,214,443)			49,405,365

Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) - $ / shares	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Consolidated Statement of Changes in Stockholders' Equity [Abstract]
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001	$ 0.001	$ 0.001

Nature of the business and organization

12 Months Ended

Dec. 31, 2017

Nature of the business and organization [Abstract]

Nature of the business and organization

1. Nature of the business and organization

Organization and business

Emergent BioSolutions Inc. (the "Company" or "Emergent") is a global life sciences company focused on providing specialty products for civilian and military populations that address accidental, intentional and naturally occurring public health threats.

Within the category of the Company's specialty products, it is focused on developing, manufacturing and commercializing medical countermeasures ("MCMs"), that address public health and national security threats, which the Company collectively refer to as PHTs. The PHTs that the Company is addressing fall into two categories: Chemical, Biological, Radiological, Nuclear and Explosives ("CBRNE"); and emerging infectious diseases ("EID"). The Company has a portfolio of eight products through which it generates most of its revenue, a fully-integrated portfolio of contract development and manufacturing services and a research and development pipeline of various investigational-stage product candidates.

Our MCM products are:

BioThrax^® (Anthrax Vaccine Adsorbed), the only vaccine licensed by the U.S. Food and Drug Administration ("FDA"), for the general use prophylaxis and post-exposure prophylaxis of anthrax disease;

ACAM2000^® (Smallpox (Vaccinia) Vaccine, Live), the only smallpox vaccine licensed by the FDA for active immunization against smallpox disease for persons determined to be at high risk for smallpox infection (acquired from Sanofi Pasteur Biologics, LLC in October 2017);

Raxibacumab (Anthrax Monoclonal), the first fully human monoclonal antibody therapeutic licensed by the FDA for the treatment and prophylaxis of inhalational anthrax (acquired from GlaxoSmithKline LLC in October 2017);

Anthrasil^® [Anthrax Immune Globulin Intravenous (Human)], the only polyclonal antibody therapeutic licensed by the FDA and Health Canada for the treatment of inhalational anthrax;

BAT® [Botulism Antitoxin Heptavalent (A,B,C,D,E,F,G)-(Equine)], the only heptavalent antibody therapeutic licensed by the FDA and Health Canada for the treatment of botulism;

VIGIV [Vaccinia Immune Globulin Intravenous (Human)], the only therapeutic licensed by the FDA and Health Canada to address certain complications from smallpox vaccination;

RSDL^® (Reactive Skin Decontamination Lotion Kit), the only medical device cleared by the FDA to remove or neutralize the following chemical warfare agents from the skin: tabun, sarin, soman, cyclohexyl sarin, VR, VX, mustard gas and T-2 toxin; and

Trobigard™ (atropine sulfate, obidoxime chloride), an auto-injector device designed for intramuscular self-injection of atropine sulfate and obidoxime chloride, as a nerve agent countermeasure. This product is not currently approved or cleared by the FDA or any similar regulatory body, and is only distributed to authorized government buyers for use outside the United States. This product is not distributed in the United States.

Aptevo spin-off

On August 1, 2016, the Company completed the spin-off of Aptevo Therapeutics Inc. ("Aptevo") and has classified the results of operations of Aptevo as discontinued operations for the years ended December 31, 2016 and 2015. The historical financial statements and footnotes have been revised accordingly.

Summary of significant accounting policies

12 Months Ended

Dec. 31, 2017

Summary of significant accounting policies [Abstract]

Summary of significant accounting policies

2. Summary of significant accounting policies

Basis of presentation and consolidation

The accompanying consolidated financial statements include the accounts of Emergent and its wholly owned and majority owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.

In anticipation of the spin-off, the Company realigned certain components of its biosciences business to the new Aptevo segment to be consistent with how the Company's chief operating decision maker ("CODM") allocates resources and makes decisions about the operations of the Company. Effective January 1, 2016, the Company changed its segment presentation to reflect this new structure, and recast all prior periods presented to conform to the new presentation. On August 1, 2016, the Company completed the spin-off of Aptevo. As of December 31, 2017, the results of operations and financial position of Aptevo are reflected as discontinued operations for all periods presented through the date of the spin-off. The historical financial statements and footnotes have been revised accordingly. See Note 3. "Discontinued operations" for further details regarding the spin-off. For periods following the spin-off, the Company reports financial results under one operating segment which is also a single reportable segment.

Use of estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Cash and cash equivalents

Cash equivalents are highly liquid investments with a maturity of 90 days or less at the date of purchase and consist of time deposits and investments in money market funds with commercial banks and financial institutions. Also, the Company maintains cash balances with financial institutions in excess of insured limits. The Company does not anticipate any losses with such cash balances.

Fair value of measurements

The Company measures and records cash equivalents and investment securities considered available-for-sale at fair value in the accompanying financial statements. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability, an exit price, in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value include:

Level 1 —

Observable inputs for identical assets or liabilities such as quoted prices in active markets;

Level 2 —

Inputs other than quoted prices in active markets that are either directly or indirectly observable; and

Level 3 —

Unobservable inputs in which little or no market data exists, which are therefore developed by the Company using estimates and assumptions that reflect those that a market participant would use.

The carrying amounts of the Company's short-term financial instruments, which include cash and cash equivalents, accounts receivable and accounts payable, approximate their fair values due to their short maturities.

Significant customers and accounts receivable

The Company has derived a majority of its revenue from sales of BioThrax under contracts with the U.S. government. The Company's current Centers for Disease Control ("CDC") contract does not necessarily increase the likelihood that it will secure future comparable contracts with the U.S. government. The Company expects that a significant portion of the business that it will seek in the near future, in particular for BioThrax, will be under government contracts that present a number of risks that are not typically present in the commercial contracting process. U.S. government contracts for BioThrax are subject to unilateral termination or modification by the government. The Company may fail to achieve significant sales of BioThrax to customers in addition to the U.S. government, which would harm its growth opportunities. The Company may not be able to sustain or increase profitability. The Company may not be able to manufacture BioThrax consistently in accordance with FDA specifications.

Accounts receivable are stated at invoice amounts and consist primarily of amounts due from the U.S. government, as well as amounts due under reimbursement contracts with other government entities and non-government organizations. If necessary, the Company records a provision for doubtful receivables to allow for any amounts which may be unrecoverable. This provision is based upon an analysis of the Company's prior collection experience, customer creditworthiness and current economic trends.

Concentrations of credit risk and uncertainties

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company places its cash and cash equivalents with high quality financial institutions. Management believes that the financial risks associated with its cash and cash equivalents are minimal. Because accounts receivable consists primarily of amounts due from the U.S. government for product sales and from government agencies under government grants and development contracts, management does not deem the credit risk to be significant.

Inventories

Inventories are stated at the lower of cost or net realizable value with cost being determined using a standard cost method, which approximates average cost. Average cost consists primarily of material, labor and manufacturing overhead expenses (including fixed production-overhead costs) and includes the services and products of third party suppliers. The Company analyzes its inventory levels quarterly and writes down, in the applicable period, inventory that has become obsolete, inventory that has a cost basis in excess of its expected net realizable value and inventory in excess of expected customer demand. The Company also writes off, in the applicable period, the costs related to expired inventory. Costs of purchased inventories are recorded using weighted-average costing. The Company determines normal capacity for each production facility and allocates fixed production-overhead costs on that basis.

Property, plant and equipment

Property, plant and equipment are stated at cost. Depreciation is computed using the straight-line method over the following estimated useful lives:

Buildings	31-39 years
Building improvements	10-39 years
Furniture and equipment	3-15 years
Software	3-7 years or product life
Leasehold improvements	Lesser of the asset life or lease term

Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is credited or charged to operations. Repairs and maintenance costs are expensed as incurred.

The Company capitalizes internal-use software when both (a) the software is internally developed, acquired, or modified solely to meet the entity's internal needs and (b) during the software's development or modification, no substantive plan either exists or is being developed to market the software externally. Capitalization of qualifying internal-use software costs begins when the preliminary project stage is completed, management with the relevant authority, implicitly or explicitly, authorizes and commits to the funding of the software project, and it is probable that the project will be completed and the software will be used to perform the function intended.

Income taxes

Income taxes are accounted for using the liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases and net operating loss and research and development tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled.

Deferred income tax effects of transactions reported in different periods for financial reporting and income tax return purposes are recognized under the asset and liability method of accounting for income taxes. This method gives consideration to the future tax consequences of the deferred income tax items and immediately recognizes changes in income tax laws in the year of enactment. On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act (the "Tax Reform Act"). Further information on the tax impacts of the Tax Reform Act is included in Note 12 of the Company's consolidated financial statements.

The Company's ability to realize deferred tax assets depends upon future taxable income as well as the limitations discussed below. For financial reporting purposes, a deferred tax asset must be reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized prior to expiration. The Company considers future taxable income and ongoing tax planning strategies in assessing the need for valuation allowances. In general, if the Company determines that it is more likely than not to realize more than the recorded amounts of net deferred tax assets in the future, the Company will reverse all or a portion of the valuation allowance established against its deferred tax assets, resulting in a decrease to the provision for income taxes in the period in which the determination is made. Likewise, if the Company determines that it is not more likely than not to realize all or part of the net deferred tax asset in the future, the Company will establish a valuation allowance against deferred tax assets, with an offsetting increase to the provision for income taxes, in the period in which the determination is made.

Under sections 382 and 383 of the Internal Revenue Code, if an ownership change occurs with respect to a "loss corporation", as defined therein, there are annual limitations on the amount of net operating losses and deductions that are available. The Company believes the use of net operating losses and research and development tax credits acquired in the Trubion acquisition will not be significantly limited. Due to the acquisition of Microscience in 2005 and the Company's initial public offering, the Company believes the use of the operating losses incurred prior to 2005 will be significantly limited.

Because tax laws are complex and subject to different interpretations, significant judgment is required. As a result, the Company makes certain estimates and assumptions, in (1) calculating the Company's income tax expense, deferred tax assets and deferred tax liabilities, (2) determining any valuation allowance recorded against deferred tax assets and (3) evaluating the amount of unrecognized tax benefits, as well as the interest and penalties related to such uncertain tax positions. The Company's estimates and assumptions may differ significantly from tax benefits ultimately realized.

Revenue recognition

The Company recognizes revenues from product sales and contract manufacturing if four basic criteria have been met:



there is persuasive evidence of an arrangement;



delivery has occurred or title has passed to the Company's customer;



the fee is fixed or determinable; and



collectability is reasonably assured.

Under the Company's contracts with the CDC, the Company invoices the CDC and recognizes the related revenue upon acceptance by the government at delivery site, at which time title to the product passes to the CDC.

Agreements with multiple components ("deliverables" or "items") are evaluated to determine if the deliverables can be divided into more than one unit of accounting. An item can generally be considered a separate unit of accounting if both of the following criteria are met:

(1) the delivered item or items have value to the customer on a standalone basis. The item or items have value on a standalone basis if they are sold separately by any vendor or the customer could resell the delivered item(s) on a standalone basis. In the context of a customer's ability to resell the delivered item(s), this criterion does not require the existence of an observable market for the deliverable(s); and

(2) if the arrangement includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in control of the Company. Items that cannot be divided into separate units are combined with other units of accounting, as appropriate. Consideration received is allocated among the separate units based on the relative selling price of each deliverable. The Company deems service to have been rendered if no continuing obligation exists on the part of the Company.

The Company's contract with the Biomedical Advanced Research and Development Authority ("BARDA") to establish a Center for Innovation in Advanced Development and Manufacturing ("CIADM") is a service arrangement that includes multiple elements. The CIADM contract requires the Company to provide a flexible infrastructure to supply medical countermeasures to the U.S. government over the contract period and includes such items as construction and facility design, workforce development and licensure of a pandemic flu vaccine. Since none of the individual elements by themselves satisfy the purpose of the contract, the Company has concluded that the CIADM contract elements cannot be separated as they do not have stand-alone value to the U.S. government. Therefore, the Company has concluded that there is a single unit of accounting associated with the CIADM contract. The Company recognizes revenue under the CIADM contract on a straight-line basis, based upon its estimate of the total payments to be received under the contract. The Company analyzes the estimated payments to be received on a quarterly basis to determine if an adjustment to revenue is required. Changes in estimates attributed to modifications in the estimate of total payments to be received are recorded prospectively.

The Company's BAT contract with BARDA is a service arrangement that includes multiple elements. The deliverables to BARDA include supplying product to the SNS, performing stability testing for the product, achievement of extended product expiry dating, maintenance of horse populations and plasma extraction. The Company has determined that each of the deliverables above represents a separate unit of accounting as they have standalone value to the U.S. government. The Company allocated the value of the contract to the undelivered elements based on best estimate of selling price ("BESP"). BESP methodology for the deliverables, excluding the product sales, was developed using a cost build-up for internal and external costs, plus a specified mark-up. The allocation of value to the product sales was based on the remaining unallocated value. The Company completed the final delivery of the BAT product in 2017. The Company recognizes revenue for:

BAT product sales upon delivery to the SNS;

stability testing based on the required testing schedule of the product;

extended product expiry based on achievement of the extension;

horse maintenance based on a per horse basis; and

plasma collection on a per liter basis.

The Company's contracts for VIGIV with the CDC and for Anthrasil with BARDA are service arrangements that include multiple elements. The deliverables to BARDA include to supply product to the SNS, perform stability testing for the product, achievement of extended product expiry dating and plasma extraction. The Company has determined that each of the deliverables above represents separate units of accounting as they have standalone value to the U.S. government. The Company allocated the value of the contract to the undelivered elements based on BESP. BESP methodology for the deliverables, excluding the product sales, was developed using a cost build-up for internal and external costs, plus a specified mark-up. The allocation of value to the product sales was based on the remaining unallocated value. The Company recognizes revenue for:

VIGIV and Anthrasil product sales upon delivery to the CDC;

stability testing based on the required testing schedule of the product;

extended product expiry based on achievement of the extension; and

plasma collection on a per liter basis.

The Company's contract for the NuThrax product candidate with BARDA, which was entered into on September 30, 2016 is a service arrangement that includes multiple elements. The deliverables to BARDA are the completion of development for NuThrax and the procurement of product for the SNS. The Company has determined that each of the deliverables above are a separate unit of accounting as they have standalone value to the U.S. government. The Company allocated the value of the contract to the undelivered elements based on best estimate of selling price ("BESP"). BESP methodology for the development deliverable was developed using a cost build-up for internal and external costs, plus a specified mark-up.

The Company has determined that the procurement of NuThrax under the BARDA NuThrax Contract is a contingent deliverable, as it is dependent upon successful completion of development; therefore, the Company has excluded this from the allocation of the contract consideration. The Company has allocated $147.5 million to the development services deliverable and will recognize revenue as the services are provided.

On March 16, 2017, the Company entered into a contract with BARDA, valued at $100 million, for the delivery of BioThrax to the SNS over a two-year period of performance. In conjunction with the signing of this contract, the Company entered into a modification to its BARDA NuThrax Contract that increases the number of doses of NuThrax to be delivered under the base period from two million to three million doses with a commensurate reduction in dose price for the initial deliveries. The modification also provides for a discount on the sales price for doses to be procured during the option period up to $100 million. As a result of the modification of the BARDA NuThrax Contract, in conjunction with execution of the BARDA BioThrax Contract, the Company has determined that the two agreements are linked under the revenue recognition requirements of the Financial Accounting Standards Board ("FASB") Topic 605, Revenue Recognition. The Company analyzed these agreements and determined that the units of accounting under the linked agreements are:

·	development services for the NuThrax product candidate under the BARDA NuThrax Contract; and

·	procurement of BioThrax under the BARDA BioThrax Contract.

The Company's allocation of contract consideration for the development services was updated based on the services provided prior to March 17, 2017. The allocation of contract consideration for the BioThrax doses to be sold under the BARDA BioThrax Contract was determined based on similar pricing provided to other customers. The Company's determination of the amount of contract consideration to be allocated to the discounts was based on an undiscounted probability adjusted model, which factored in the expected timing of regulatory approval for the NuThrax product candidate, expected levels of procurement of the NuThrax product candidate upon regulatory approval and the market conditions for these types of medical countermeasures. The Company allocated the contract consideration to the two units of accounting as follows:

·	$137.1 million was allocated to the development services for the NuThrax product candidate under the BARDA NuThrax Contract; and

·	$93.6 million was allocated to the procurement of BioThrax under the BARDA BioThrax Contract.

The Company deferred a portion of the consideration received for doses delivered under the BARDA BioThrax Contract and the development services for the NuThrax product candidate. The Company will recognize the deferred revenue upon the delivery of NuThrax doses under the BARDA NuThrax Contract, or upon the future extinguishment of the Company's obligation to deliver NuThrax doses to which the discount applies.

Revenue associated with non-refundable upfront license fees under arrangements where the license fees and research and development activities cannot be accounted for as separate units of accounting is deferred and recognized as revenue either on a straight-line basis over the Company's continued involvement in the research and development process or based on the proportional performance of the Company's expected future obligation under the contract. Revenues from the achievement of research and development milestones, if deemed substantive, are recognized as revenue when the milestones are achieved, and the milestone payments are due and collectible. If not deemed substantive, the Company recognizes such milestone as revenue on a straight-line basis over the remaining expected term of continued involvement in the research and development process.

Milestones are considered substantive if all of the following conditions are met: (1) the milestone is non-refundable, (2) achievement of the milestone was not reasonably assured at the inception of the arrangement, (3) substantive effort is involved to achieve the milestone, and (4) the amount of the milestone appears reasonable in relation to the effort expended. Payments received in advance of work performed are recorded as deferred revenue.

The Company generates contracts and grants revenue from cost-plus-fee contracts. Revenues from reimbursable contracts are recognized as costs are incurred, generally based on allowable costs incurred during the period, plus any recognizable earned fee. The Company considers fixed fees under cost-plus-fee contracts to be earned in proportion to the allowable costs incurred in performance of the contract. The Company analyzes costs for contracts and reimbursable grants to ensure reporting of revenues gross versus net is appropriate. For each of the three years in the period ended December 31, 2017, the costs incurred under the contracts and grants approximated the revenue earned.

Acquisitions

In determining whether an acquisition is a business combination versus an asset acquisition, the accounting guidance requires an entity to first evaluate whether substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. If that threshold is met, the set of assets and activities is not a business and therefore treated as an asset acquisition. If it's not met, the entity evaluates whether the set meets the definition of a business. If an acquired asset or asset group does not meet the definition of a business, the transaction is accounted for as an asset acquisition. Otherwise, the acquisition is treated as a business combination.

In a business combination, the acquisition method of accounting requires that the assets acquired and liabilities assumed be recorded as of the date of the merger or acquisition at their respective fair values with limited exceptions. Assets acquired and liabilities assumed in a business combination that arise from contingencies are recognized at fair value if fair value can reasonably be estimated. If the acquisition date fair value of an asset acquired or liability assumed that arises from a contingency cannot be determined, the asset or liability is recognized if probable and reasonably estimable; if these criteria are not met, no asset or liability is recognized. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Accordingly, the Company may be required to value assets at fair value measures that do not reflect the Company's intended use of those assets. Any excess of the purchase price (consideration transferred) over the estimated fair values of net assets acquired is recorded as goodwill. Transaction costs and costs to restructure the acquired company are expensed as incurred. The operating results of the acquired business are reflected in the Company's consolidated financial statements after the date of the merger or acquisition. If the Company determines the assets acquired do not meet the definition of a business under the acquisition method of accounting, the transaction will be accounted for as an acquisition of assets rather than a business combination and, therefore, no goodwill will be recorded.

The fair values of intangible assets, including acquired in-process research and development ("IPR&D"), are determined utilizing information available at or near the merger or acquisition date based on expectations and assumptions that are deemed reasonable by management. Given the considerable judgment involved in determining fair values, the Company typically obtains assistance from third-party valuation specialists for significant items. Amounts allocated to acquired IPR&D are capitalized and accounted for as indefinite-lived intangible assets. Upon successful completion of each project, the Company will make a separate determination as to the remaining useful life of the asset and begin amortization. The judgments made in determining estimated fair values assigned to assets acquired and liabilities assumed in a business combination, as well as asset lives, can materially affect the Company's results of operations.

The fair values of identifiable intangible assets related to current products and product rights are primarily determined by using an "income approach" through which fair value is estimated based on each asset's discounted projected net cash flows. The Company's estimates of market participant net cash flows consider historical and projected pricing, margins and expense levels, the performance of competing products where applicable, relevant industry and therapeutic area growth drivers and factors, current and expected trends in technology and product life cycles, the time and investment that will be required to develop products and technologies, the ability to obtain marketing and regulatory approvals, the ability to manufacture and commercialize the products, the extent and timing of potential new product introductions by the Company's competitors, and the life of each asset's underlying patent, if any. The net cash flows are then probability-adjusted where appropriate to consider the uncertainties associated with the underlying assumptions, as well as the risk profile of the net cash flows utilized in the valuation. The probability-adjusted future net cash flows of each product are then discounted to present value utilizing an appropriate discount rate.

The fair values of identifiable intangible assets related to IPR&D are determined using an income approach, through which fair value is estimated based on each asset's probability-adjusted future net cash flows, which reflect the different stages of development of each product and the associated probability of successful completion. The net cash flows are then discounted to present value using an appropriate discount rate. Indefinite-lived intangible assets are tested for impairment annually or whenever events or changes in circumstances indicate that its carrying amount may not be recoverable.

Intangible assets and long-lived assets

The Company assesses intangible assets for impairment on an annual basis or more frequently if indicators of impairment are present. The Company's annual assessment includes a comparison of the fair value of intangible assets to existing carrying value, and recognizes an impairment when the carrying value is greater than the determined fair value. The Company believes that the assumptions used in valuing the intangible assets are reasonable and are based upon its best estimate of likely outcomes of sales and clinical development. The underlying assumptions and estimates used to value these assets are subject to change in the future, and actual results may differ significantly from the assumptions and estimates. The Company has selected October 1 as its annual impairment test date for indefinite-lived intangible assets.

The Company assesses the recoverability of its long-lived assets or asset groups for which an indicator of impairment exists by determining whether the carrying value of such assets can be recovered through undiscounted future operating cash flows. If the Company concludes that the carrying value will not be recovered, the Company measures the amount of such impairment by comparing the fair value to the carrying value of the assets or asset groups.

Goodwill

The Company assesses the carrying value of goodwill on an annual basis, or whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable, to determine whether any impairment in this asset may exist and, if so, the extent of such impairment. The provisions of the relevant accounting guidance require that the Company perform a two-step impairment test. In the first step, the Company compares the fair value of its reporting unit to the carrying value of the reporting unit. If the carrying value of the reporting unit exceeds the fair value of the reporting unit, then the second step of the impairment test is performed in order to determine the implied fair value of the reporting unit's goodwill. If the carrying value of the reporting unit's goodwill exceeds its implied fair value, an impairment loss equal to the difference is recognized. The Company calculates the fair value of the reporting unit utilizing the income approach. The income approach utilizes a discounted cash flow model, using a discount rate based on the Company's estimated weighted average cost of capital. The Company also evaluates goodwill for all reporting units using the qualitative assessment method, which permits companies to qualitatively assess whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount. The Company considers developments in its operations, the industry in which it operates and overall macroeconomic factors that could have affected the fair value of the reporting unit since the date of the most recent quantitative analysis of a reporting unit's fair value.

The determination of the fair value of a reporting unit is judgmental in nature and involves the use of significant estimates and assumptions. The estimates and assumptions used in calculating fair value include identifying future cash flows, which requires that the Company makes a number of critical legal, economic, market and business assumptions that reflect best estimates as of the testing date. The Company's assumptions and estimates may differ significantly from actual results, or circumstances could change that would cause the Company to conclude that an impairment now exists or that it previously understated the extent of impairment. The Company selected October 1 as its annual goodwill impairment test date.

Contingent Consideration

The Company records contingent consideration associated with (a) sales based royalties and (b) development and regulatory milestones at fair value. The fair value model used to calculate this obligation is based on the income approach (a discounted cash flow model) that has been risk adjusted based on the probability of achievement of net sales and achievement of the milestones. The inputs the Company uses for determining the fair value of the contingent consideration associated with sales based royalties and development and regulatory milestones are Level 3 fair value measurements. The Company re-evaluates the fair value on a quarterly basis. Changes in the fair value can result from adjustments to the discount rates and updates in the assumed timing of or achievement of net sales. Any future increase in the fair value of the contingent consideration associated with sales based royalties along with development and regulatory milestones are based on an increased likelihood that the underlying net sales or milestones will be achieved.

The associated payment or payments which will become due and payable for sales based royalties associated with products will result in a charge to cost of product sales and contract manufacturing in the period in which the increase is determined. Similarly, any future decrease in the fair value of contingent consideration associated with sales based royalties will result in a reduction in cost of product sales and contract manufacturing. The changes in fair value for potential future sales based royalties associated with product candidates in development will result in a charge to selling, general and administrative expense in the period in which the increase is determined. Similarly, any future decrease in the fair value of contingent consideration associated with potential future sales based royalties for products candidates will result in a reduction in selling, general and administrative expense.

The associated payment or payments which will become due and payable for development and regulatory milestones will result in a charge to research and development expense in the period in which the increase is determined. Similarly, any future decrease in the fair value for development and regulatory milestones will result in a reduction in research and development expense.

Research and development

We expense research and development costs as incurred. Our research and development expenses consist primarily of:

personnel-related expenses;

fees to professional service providers for, among other things, analytical testing, independent monitoring or other administration of our clinical trials and obtaining and evaluating data from our clinical trials and non-clinical studies;

costs of contract manufacturing services for clinical trial material; and

costs of materials used in clinical trials and research and development.

In many cases, we plan to seek funding for development activities from external sources and third parties, such as governments and non-governmental organizations, or through collaborative partnerships. We expect our research and development spending will be dependent upon such factors as the results from our clinical trials, the availability of reimbursement of research and development spending, the number of product candidates under development, the size, structure and duration of any clinical programs that we may initiate, the costs associated with manufacturing our product candidates on a large-scale basis for later stage clinical trials, and our ability to use or rely on data generated by government agencies, such as studies involving BioThrax conducted by the CDC.

Comprehensive income

Comprehensive income is comprised of net income and other changes in equity that are excluded from net income. The Company includes translation gains and losses incurred when converting its subsidiaries' financial statements from their functional currency to the U.S. dollar in accumulated other comprehensive income.

Foreign currencies

Except for the Company's Canadian subsidiaries, the local currency is the functional currency for the Company's foreign subsidiaries and, as such, assets and liabilities are translated into U.S. dollars at year-end exchange rates. Income and expense items are translated at average exchange rates during the year. Translation adjustments resulting from this process are charged or credited to other comprehensive income. The Company's Canadian subsidiaries functional currency is U.S. dollars due primarily to a significant amount of the transactions of the subsidiaries being denominated in U.S. dollars.

Capitalized interest

The Company capitalizes interest based on the cost of major ongoing capital projects which have not yet been placed in service. For the years ended December 31, 2017, 2016, and 2015, the Company incurred interest of $7.0 million, $8.3 million and $7.8 million, respectively. Of these amounts, the Company capitalized $2.2 million, $2.2 million and $2.9 million, respectively.

Earnings per share

The Company calculates basic earnings per share by dividing net income by the weighted average number of shares of common stock outstanding during the period.

For the years ended December 31, 2017, 2016, and 2015, the Company calculated diluted earnings per share using the if-converted method by dividing the adjusted net income by the adjusted weighted average number of shares of common stock outstanding during the period. The adjusted net income is adjusted for interest expense and amortization of debt issuance cost, both net of tax, associated with the Company's 2.875% Convertible Senior Notes due 2021 (the "Notes"). The weighted average number of diluted shares is adjusted for the potential dilutive effect of the exercise of stock options and the vesting of restricted stock units along with the assumption of the conversion of the Notes, each at the beginning of the period. During the fourth quarter of 2017, the Company issued a notice of termination of conversion rights related to the Notes and issued 8.5 million shares of common stock due to conversions that occurred in 2017.

Accounting for stock-based compensation

The Company has one stock-based employee compensation plan, the Fourth Amended and Restated Emergent BioSolutions Inc. 2006 Stock Incentive Plan (the "2006 Plan"), which includes both stock options and restricted stock units.

As of December 31, 2017, an aggregate of 18.9 million shares of common stock were authorized for issuance under the 2006 Plan, of which a total of approximately 4.9 million shares of common stock remain available for future awards to be made to plan participants. The exercise price of each option must be not less than 100% of the fair market value of the shares underlying such option on the date of grant. Awards granted under the 2006 Plan have a contractual life of no more than 10 years. The terms and conditions of equity awards (such as price, vesting schedule, term and number of shares) under the 2006 Plan is determined by the compensation committee of the Company's board of directors, which administers the 2006 Plan. Each equity award granted under the 2006 Plan vests as specified in the relevant agreement with the award recipient and no option can be exercised after ten years from the date of grant.

The Company determines the fair value of restricted stock units using the closing market price of the Company's common stock on the day prior to the date of grant. The Company utilizes the Black-Scholes valuation model for estimating the fair value of all stock options granted. Set forth below are the assumptions used in valuing the stock options granted and a discussion of the Company's methodology for developing each of the assumptions used:

	Year Ended December 31,
		2017	2016	2015
Expected dividend yield		0%	0%	0%
Expected volatility		37-40%	31-33%	34-35%
Risk-free interest rate		1.66-1.88%	0.93-1.22%	1.27-1.61%
Expected average life of options		4.3 years	4.3 years	4.3 years



Expected dividend yield — the Company does not pay regular dividends on its common stock and does not anticipate paying any dividends in the foreseeable future.



Expected volatility — a measure of the amount by which a financial variable, such as share price, has fluctuated (historical volatility) or is expected to fluctuate (implied volatility) during a period. The Company analyzed its own historical volatility to estimate expected volatility over the same period as the expected average life of the options.



Risk-free interest rate — the range of U.S. Treasury rates with a term that most closely resembles the expected life of the option as of the date on which the option is granted.



Expected average life of options — the period of time that options granted are expected to remain outstanding, based primarily on the Company's expectation of optionee exercise behavior subsequent to vesting of options.

Recently issued accounting standards

ASU 2014-09, Revenue from Contracts with Customers (Topic 606)

In May 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU No. 2014-09"). ASU No. 2014-09 supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, as well as most industry-specific guidance, and significantly enhances comparability of revenue recognition practices across entities and industries by providing a principles-based, comprehensive framework for addressing revenue recognition issues. In order for a provider of promised goods or services to recognize as revenue the consideration that it expects to receive in exchange for the promised goods or services, the provider should apply the following five steps: (1) identify the contract with a customer(s); (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. ASU No. 2014-09 also specifies the accounting for some costs to obtain or fulfill a contract with a customer and provides enhanced disclosure requirements. The standard will be effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The Company will adopt the requirements of the new standard in the first quarter of 2018 using the modified retrospective method. The modified retrospective method requires companies to recognize the cumulative effect of initially applying the new standard as an adjustment to opening retained earnings.

The Company used a cross functional team to identify and organize its contracts for analysis. The Company has finalized its review of its revenue contract portfolio and made its determination of its revenue streams as well as completed extensive contract specific reviews to determine the impacts of the new standard on its historical and prospective revenue recognition. Because many of the Company's contracts with customers have unique contract terms, the Company reviewed all of its non-standard agreements in order to determine the effect of adoption. As a result, it has determined the BARDA BioThrax Contract and BARDA NuThrax Contract will have a material change in revenue recognition that will likely increase the amount of deferred revenue on the adoption date. The Company is in the process of finalizing its analysis of the CIADM contract but expects that the revenue recognition policy and possibly the cumulative effect could be material. The Company is also finalizing its accounting policy; related income tax effects for these contracts; evaluating costs that may need to be capitalized or expensed; and designing and implementing the necessary changes to processes and controls in order to account for revenue under the new standard. Based on the Company's timeline and planned resources, the Company anticipates completing its implementation in connection with its first quarter 2018 interim financial statements.

ASU 2016-02, Leases (Topic 842)

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) ("ASU No. 2016-02"). ASU No. 2016-02 increases transparency and comparability among organizations by requiring the recognition of lease assets and lease liabilities on the balance sheet and disclosure of key information about leasing arrangements for both lessees and lessors. The standard will be effective January 1, 2019 for the Company, with early adoption permitted. The standard will be applied using a modified retrospective approach to the beginning of the earliest period presented in the financial statements. The Company is currently evaluating the expected impact to its consolidated financial statements and related disclosures.

ASU No. 2016-09, Compensation - Stock Compensation (Topic 718)

In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718) ("ASU No. 2016-09"). ASU No. 2016-09 simplifies several aspects of the accounting for share-based payment award transactions, including: (1) the income tax consequences, (2) classification of awards as either equity or liabilities, and (3) classification on the statement of cash flows. As of January 1, 2017, the Company adopted and performed the evaluation required by the standard and did not identify any conditions or events that would have a material impact on the current disclosures in the financial statements. The Company has retrospectively adjusted the operating and financing sections within the statement of cash flows for the classification of employee taxes paid associated with equity award activities for the year ended December 31, 2016. In addition, the Company prospectively adopted the provisions related to the excess tax benefits, and as a result prior periods were not adjusted. If the Company had adopted this provision retrospectively, there would have been approximately 4% change to the estimated effective annual tax rate for the year ended December 31, 2016, but for the year ended December 31, 2016, there would have been a tax benefit associated with stock option activity of $3.3 million recorded in the provision for income taxes on the Company's statement of operations.

ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business

In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business ("ASU No. 2017-01"). ASU No. 2017-01 provides clarification for the definition of a business with the objective of adding guidance and providing a more robust framework to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The new standard will be effective for all annual periods beginning after December 15, 2017. During the fourth quarter of 2017, the Company early adopted ASU 2017-01 and determined the acquisition of Raxibacumab is an asset acquisition. See Note 4. "Acquisitions" for further details regarding this acquisition.

ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 250): Simplifying the Test for Goodwill Impairment

In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 250): Simplifying the Test for Goodwill Impairment ("ASU No. 2017-04"). The standard eliminates the second step in the goodwill impairment test, which requires an entity to determine the implied fair value of the reporting unit's goodwill. Instead, an entity should recognize an impairment loss if the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, with the impairment loss not to exceed the amount of goodwill allocated to the reporting unit. The standard is effective for annual and interim goodwill impairment tests conducted in fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company does not believe that the new standard will have a material impact on its consolidated financial statements.

ASU No. 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting

In May 2017, the FASB issued ASU No. 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting ("ASU No. 2017-09"). ASU No. 2017-09 clarifies which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The standard is effective for interim and annual reporting periods beginning after December 15, 2017, with early adoption permitted. The Company has not determined the impact that adoption of this guidance will have on its consolidated financial statements.

There are no other recently issued accounting pronouncements that are expected to have a material effect on the Company's financial position, results of operations or cash flows.

Discontinued operations

12 Months Ended

Dec. 31, 2017

Discontinued operations [Abstract]

Discontinued operations

3. Discontinued operations

On August 1, 2016, the Company completed the spin-off of Aptevo through the distribution of 100% of the outstanding shares of common stock of Aptevo to the Company's shareholders (the "Distribution"). The Distribution was made to the Company's shareholders of record as of the close of business on July 22, 2016 (the "Record Date"), who received one share of Aptevo common stock for every two shares of Emergent common stock held as of the Record Date. The Distribution was intended to qualify as a tax-free distribution for federal income tax purposes in the United States. In the aggregate, approximately 20.2 million shares of Aptevo common stock were distributed to the Company's shareholders of record as of the Record Date in the Distribution. After the Distribution, the Company no longer holds shares of Aptevo's common stock. In addition, on August 1, 2016, the Company entered into a non-negotiable, unsecured promissory note with Aptevo to provide an additional $20 million in funding, which the Company paid in January 2017.

The historical statements of operations of Aptevo have been presented as discontinued operations in the consolidated financial statements and the prior period has been restated. Discontinued operations include results of Aptevo's business except for certain allocated corporate overhead costs and certain costs associated with transition services provided by the Company to Aptevo. These allocated costs remain part of continuing operations. Due to differences between the basis of presentation for discontinued operations and the basis of presentation as a stand-alone company, the financial results of Aptevo included within discontinued operations for the Company may not be indicative of actual financial results of Aptevo.

The following table summarizes results from discontinued operations of Aptevo included in the consolidated statements of operations for the year ended December 31, 2016 and 2015:

	Years ended December 31,
(in thousands)	2016			2015

Revenues:
Product sales	$	21,183		$	27,947
Collaborations		187			5,511
Total revenues		21,370			33,458

Operating expense:
Cost of product sales		11,556			16,809
Research and development		18,024			34,811
Selling, general and administrative		23,792			27,313
Loss from operations		(32,002	)		(45,475	)

Other income (expense), net:		(41	)		(472	)

Loss from discontinued operations before benefit from income taxes		(32,043	)		(45,947	)
Benefit from income taxes		(21,295	)		(17,401	)
Net loss from discontinued operations	$	(10,748	)	$	(28,546	)

The following table summarizes the cash flows of Aptevo included in the years ended December 31, 2016 and 2015 consolidated statements of cash flows:

	Years ended December 31,
(in thousands)	2016			2015
Net cash used in operating activities	$	(10,299	)	$	(12,716	)
Net cash used in investing activities		(1,926	)		(1,518	)
Net cash provided by financing activities		7,733			15,012

Net increase (decrease) in cash and cash equivalents	$	(4,492	)	$	778

Acquisitions

12 Months Ended

Dec. 31, 2017

Acquisitions [Abstract]

Acquisitions

4. Acquisitions

Acquisition of ACAM2000 business

On October 6, 2017, the Company completed the acquisition of the ACAM2000® (Smallpox (Vaccinia) Vaccine, Live) business of Sanofi Pasteur Biologics, LLC ("Sanofi"). This acquisition includes ACAM2000, the only smallpox vaccine licensed by the FDA, a current good manufacturing practices ("cGMP") live viral manufacturing facility and office and warehouse space, both in Canton, Massachusetts, and a cGMP viral fill/finish facility in Rockville, Maryland. With this acquisition, the Company also acquired an existing 10-year contract with the Centers for Disease Control and Prevention ("CDC"), which will expire and be up for renewal or extension in March 2018. This contract had a stated value up to $425 million, with a remaining contract value of up to approximately $160 million as of the acquisition date, for the delivery of ACAM2000 to the SNS and establishing U.S.-based manufacturing of ACAM2000. This acquisition added to the Company's product portfolio and expanded the Company's manufacturing capabilities.

At the closing, the Company paid $97.5 million in an upfront payment and $20 million in milestone payments earned as of the closing date tied to the achievement of certain regulatory and manufacturing-related milestones, for a total payment in cash of $117.5 million. The agreement includes an additional milestone payment of up to $7.5 million upon achievement of a regulatory milestone, which was achieved in November 2017. The $7.5 million milestone payment was made during the fourth quarter of 2017. This transaction will be accounted for by the Company under the acquisition method of accounting, with the Company as the acquirer. Under the acquisition method of accounting, the assets and liabilities of the ACAM2000 business will be recorded as of October 6, 2017, the acquisition date, at their respective fair values, and combined with those of the Company.

The contingent purchase consideration obligation is based on a regulatory milestone. At October 6, 2017, the contingent purchase consideration obligation related to the regulatory milestone was recorded at a fair value of $2.2 million. The Level 3 fair value of this obligation is based on a present value model of management's assessment of the probability of achievement of the regulatory milestone as of the acquisition date. This assessment is based on inputs that have no observable market.

The total purchase price is summarized below:

(in thousands)
Amount of cash paid to Sanofi	$	117,500
Fair value of contingent purchase consideration		2,200
Total purchase price	$	119,700

The table below summarizes the preliminary allocation of the purchase price based upon estimated fair values of assets acquired and liabilities assumed at October 6, 2017. The allocation is preliminary based upon the finalization of valuation reports.

(in thousands)
Fair value of tangible assets acquired and liabilities assumed:
Inventory	$	74,876
Property, plant and equipment		19,995
Total fair value of tangible assets acquired and liabilities assumed		94,871

Acquired intangible asset		16,700
Goodwill		8,129
Total purchase price	$	119,700

The Company determined the fair value of the intangible asset using the income approach, which is based on the present value of future cash flows. The fair value measurements are based on significant unobservable inputs that are developed by the Company using estimates and assumptions of the respective market and market penetration of the Company's products. The Company determined the fair value of the ACAM2000 intangible asset using the income approach with a present value discount rate of 15.5%, based on the estimated weighted-average cost of capital for substantially similar companies. This is comparable to the estimated internal rate of return for the acquisition and represents the rate that market participants would use to value these intangible assets. The projected cash flows from ACAM2000 intangible asset were based on key assumptions, including: estimates of revenues and operating profits, the life of the potential commercialized product and associated risks, and risks related to the viability of and potential alternative treatments in any future target markets. The Company has determined the ACAM2000 intangible asset will be amortized over 10 years.

The Company determined the fair value of the inventory using the probability adjusted comparative sales method, which estimates the expected sales price reduced for all costs expected to be incurred to complete/dispose of the inventory with a profit on those costs.

The Company determined the fair value of the property, plant and equipment utilizing either the cost approach or the sales comparison approach. The cost approach is determined by determining replacement cost of the asset and then subtracting any value that has been lost due to economic obsolescence, functional obsolescence, or physical deterioration. The sales comparison approach determines an asset is equal to the market price of an asset of comparable features such as design, location, size, construction, materials, use, capacity, specification, operational characteristics and other features or descriptions.

The Company recorded approximately $8.1 million in goodwill related to the ACAM2000 acquisition, representing the purchase price paid in the acquisition that was in excess of the fair value of the tangible and intangible assets acquired. There is no goodwill for tax purposes.

The Company has incurred transaction costs related to the ACAM2000 acquisition of approximately $2.5 million for the year ended December 31, 2017, which has been recorded in selling, general and administrative expenses.

The Company has determined the historical results for ACAM2000 were not significant to the Company's results of operations, and as such no proforma disclosures have been presented.

Acquisition of Raxibacumab asset

On October 2, 2017, the Company completed the acquisition of Raxibacumab, a fully human monoclonal antibody therapeutic product approved by the U.S. Food and Drug Administration ("FDA") for the treatment and prophylaxis of inhalational anthrax, from Human Genome Sciences, Inc. and GlaxoSmithKline LLC (collectively referred to as "GSK"). The all-cash transaction consists of a $76 million upfront payment and up to $20 million in product sale and manufacturing-related milestone payments. None of the milestones have been achieved as of December 31, 2017.

The Company has determined that substantially all of the value of Raxibacumab is attributed to the Raxibacumab asset and therefore the Raxibacumab acquisition is considered an asset acquisition. In addition, the Company has capitalized $1.6 million of transaction costs associated with the acquisition. The Company has determined the Raxibacumab asset will be amortized over 10 years.

Fair value measurements

12 Months Ended

Dec. 31, 2017

Fair value measurements [Abstract]

Fair value measurements

5. Fair value measurements

Contingent consideration are liabilities measured at fair value on a recurring basis. For the year ended December 31, 2017, the contingent consideration for ACAM2000 increased by $5.3 million and the remaining $7.5 million regulatory milestone was paid. For the year ended December 31, 2017 and 2016, the contingent consideration obligation associated with the EV-035 series of molecules and the broad spectrum antiviral platform program decreased by $0.2 million and $5.4 million, respectively. The changes are primarily due to the estimated timing and probability of success for certain development and regulatory milestones of the program, which are inputs that have no observable market (Level 3). These changes are classified in the Company's statement of operations as both selling, general and administrative expense and research and development expense.

For the years ended December 31, 2017 and 2016, the contingent consideration obligations associated with RSDL increased by $2.7 million and decreased by $5.4 million, respectively. The changes in the fair value of the RSDL contingent consideration obligations are primarily due to the expected amount and timing of future net sales, which are inputs that have no observable market (Level 3). These changes are classified in the Company's statement of operations as cost of product sales and contract manufacturing.

The following table is a reconciliation of the beginning and ending balance of the liabilities measured at fair value using significant unobservable inputs (Level 3) during the years ended December 31, 2017 and 2016.

(in thousands)
Balance at December 31, 2015	$	25,155
(Income) expense included in earnings		(10,857	)
Settlements		(1,113	)
Balance at December 31, 2016	$	13,185
(Income) expense included in earnings		7,830
Settlements		(10,941	)
Purchases, sales and issuances		2,200
Balance at December 31, 2017	$	12,274

Separate disclosure is required for assets and liabilities measured at fair value on a recurring basis from those measured at fair value on a non-recurring basis. As of December 31, 2017 and 2016, there were no assets or liabilities measured at fair value on a non-recurring basis.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Accounts receivable

12 Months Ended

Dec. 31, 2017

Accounts receivable [Abstract]

Accounts receivable

6. Accounts receivable

Accounts receivable consist of the following:

	December 31,
(in thousands)	2017			2016
Billed		$	118,918		$	90,439
Unbilled			24,735			48,039
Total		$	143,653		$	138,478

As of December 31, 2017 and 2016, the Company's accounts receivable balances were comprised of 89% and 83%, respectively, from the U.S. government. The overall increase in the percentage of accounts receivable attributed to U.S. government was due primarily to the timing of shipments of product and payments received for BioThrax product sales under the Company's contract with the CDC. Unbilled accounts receivable relates to various service contracts for which work has been performed, though invoicing has not yet occurred. Unbilled accounts receivable has decreased by $23.3 million due primarily to the timing of billings under our contract with the U.S. government related to the Company's CIADM program.

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References + Details

Inventories

12 Months Ended

Dec. 31, 2017

Inventories [Abstract]

Inventories

7. Inventories

Inventories consist of the following:

	December 31,
(in thousands)	2017		2016
Raw materials and supplies	$	36,069	$	30,687
Work-in-process		76,610		19,821
Finished goods		30,133		23,494
Total inventories	$	142,812	$	74,002

The increase in inventories for the year ended December 31, 2017 was primarily due to the acquisition of ACAM2000 in October 2017.

Property, plant and equipment

12 Months Ended

Dec. 31, 2017

Property, plant and equipment [Abstract]

Property, plant and equipment

8. Property, plant and equipment

Property, plant and equipment consist of the following:

	December 31,
(in thousands)	2017			2016
Land and improvements	$	21,843		$	20,340
Buildings, building improvements and leasehold improvements		160,005			147,130
Furniture and equipment		206,819			190,157
Software		50,829			52,564
Construction-in-progress		100,088			77,813
		539,584			488,004
Less: Accumulated depreciation and amortization		(132,374	)		(111,556	)
Total property, plant and equipment, net	$	407,210		$	376,448

For the year ended December 31, 2017 and 2016, construction-in-progress primarily includes costs related to the build out of the Company's CIADM manufacturing facility.

Depreciation and amortization expense was $32.2 million, $28.0 million and $23.7 million for the years ended December 31, 2017, 2016, and 2015, respectively.

Intangible assets and goodwill

12 Months Ended

Dec. 31, 2017

Intangible assets and goodwill [Abstract]

Intangible assets and goodwill

9. Intangible assets and goodwill

As of October 1, 2017 and 2016, the Company performed a qualitative assessment of goodwill associated with the Therapeutics and Vaccines reporting unit, Contract Manufacturing reporting unit, and the Devices reporting unit and determined there were no indicators of impairment.

Intangible assets consisted of the following:


(in thousands)	Total
Cost basis
Balance at December 31, 2016	$	57,099
Additions		94,304
Balance at December 31, 2017	$	151,403

Accumulated amortization
Balance at December 31, 2016	$	(23,234	)
Amortization		(8,572	)
Balance at December 31, 2017	$	(31,806	)

Net book value at December 31, 2017	$	119,597

For the years ended December 31, 2017, 2016 and 2015, the Company recorded amortization expense of $8.6 million, $6.9 million and $7.4 million, respectively, for intangible assets, which has been recorded in operating expenses, specifically selling, general and administrative and cost of product sales and contract manufacturing. As of December 31, 2017, the weighted average amortization period remaining for intangible assets is 105 months.

Future amortization expense as of December 31, 2017 is as follows:

(in thousands)
2018	$	15,647
2019		15,168
2020		15,087
2021		13,596
2022 and beyond		60,099
Total remaining amortization	$	119,597

The following table is a summary of changes in goodwill by reporting unit:

(in thousands)	Therapeutics and vaccines		Contract manufacturing		Devices		Total
Cost Basis
Balance at December 31, 2016	$	24,349	$	6,736	$	9,916	$	41,001
Additions		8,129		-		-		8,129
Balance at December 31, 2017	$	32,478	$	6,736	$	9,916	$	49,130

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Long-term debt	12 Months Ended
Long-term debt	Dec. 31, 2017
Long-term debt [Abstract]
Long-term debt	10. Long-term debt 2.875% Convertible senior notes due 2021 On January 29, 2014, the Company issued $250.0 million aggregate principal amount of 2.875% Convertible Senior Notes due 2021 (the "Notes"). The Notes bear interest at a rate of 2.875% per year, payable semi-annually in arrears on January 15 and July 15 of each year. The Notes mature on January 15, 2021, unless earlier purchased by the Company or converted. The original conversion rate is equal to 30.8821 shares of common stock per $1,000 principal amount of notes (which is equivalent to a conversion price of approximately $32.38 per share of common stock). The conversion rate is subject to adjustment upon the occurrence of certain specified events but will not be adjusted for accrued and unpaid interest. The Company incurred approximately $8.3 million in debt issuance costs associated with the Notes, which has been capitalized on the consolidated balance sheets and is being amortized over seven years. As of August 1, 2016, certain conversion features were triggered due to the completion of the Aptevo spin-off. The conversion rate under the Notes was adjusted in accordance with the terms of the indenture. Effective August 12, 2016, the conversion rate was adjusted to 32.3860 shares of common stock per $1,000 principal amount of notes (which is equivalent to a conversion price of approximately $30.88 per share of common stock). On November 14, 2017, the Company issued a notice of termination of conversion rights for its outstanding Notes, of which $250.0 million was outstanding as of the notice date. In connection with the notice of termination, bondholders were given the option to convert their notes into the Company's stock at a rate of 32.386 per $1,000 of principal outstanding, plus a make-whole of an additional 3.1556 shares per $1,000 principal outstanding, in accordance with the terms of the indenture. The Company was not obligated to pay accrued or unpaid interest on converted notes, and bondholders who did not convert by the deadline of December 28, 2017 would retain their bonds but lose the conversion rights associated with the Notes and be paid interest of 2.875% until the earlier of maturity of the Notes in 2021 or the bonds being called and repaid in full by the Company. Between July 15, 2017 and the notification of termination of conversion rights, the Company accrued interest on the converted Notes of $2.4 million which was recorded as an increase in additional paid-in-capital on the balance sheet. Between November 14, 2017 and December 28, 2017 (the "conversion period"), approximately $239.4 million of bonds were converted into 8.5 million shares of the Company's common stock, inclusive of shares issued as part of the make-whole provision. In addition, the Company recorded a reduction in additional paid-in-capital on the Company's balance sheet of $3.6 million associated with debt issuance costs attributable to the converted notes. After giving effect to the converted bonds, the outstanding principal balance of the Notes as of December 31, 2017 was $10.6 million. Senior secured credit agreement On September 29, 2017, the Company entered into a senior secured credit agreement (the "2017 Credit Agreement") with four lending financial institutions, which replaced the Company's prior senior secured credit agreement (the "2013 Credit Agreement"). The 2017 Credit Agreement provides for a senior secured credit facility of up to $200 million through September 29, 2022. The 2017 Credit Agreement also includes a $100 million accordion feature, which could provide an additional $100 million in revolver or incremental term loans, at the option of the Company, resulting in a potential aggregate commitment of up to $300 million, subject to certain conditions and requirements set forth in the 2017 Credit Agreement. As of December 31, 2017, no amounts were drawn under the 2017 Credit Agreement. The Company's payment obligations under the 2017 Credit Agreement are secured by a lien on substantially all of the Company's assets, including the stock of all the Company's domestic subsidiaries, and the assets of the subsidiary guarantors. Borrowings under the 2017 Credit Agreement will bear interest at a rate per annum equal to (a) a eurocurrency rate plus a margin ranging from 1.50% to 2.50% per annum, depending on the Company's consolidated net leverage ratio or (b) a base rate (which is the highest of the prime rate, the federal funds rate plus 0.50% and a eurocurrency rate for an interest period of one month plus 1%) plus a margin ranging from 0.50% to 1.50%, depending on the Company's consolidated net leverage ratio. The Company is required to make quarterly payments under the 2017 Credit Agreement of accrued and unpaid interest on the outstanding principal balance, based on the above interest rates. In addition, the Company is required to pay commitment fees ranging from 0.25% to 0.40% per annum, depending on the Company's consolidated net leverage ratio, in respect of daily unused commitments under the 2017 Credit Agreement. The 2017 Credit Agreement contains affirmative and negative covenants customary for financings of this type. Negative covenants in the 2017 Credit Agreement, among other things, limit the Company's ability to incur indebtedness and liens; dispose of assets; make investments including loans, advances, guarantees, or acquisitions (other than permitted acquisitions, subject to compliance with the financial covenants and certain other conditions); and enter into certain mergers or consolidation transactions. The 2017 Credit Agreement also contains financial covenants, tested quarterly and in connection with any triggering events under the 2017 Credit Agreement: (1) a minimum consolidated debt service coverage ratio of 2.50 to 1.00, and (2) a maximum consolidated net leverage ratio of 3.50 to 1.00, which may be adjusted to 4.00 to 1.00 for a four-quarter period in connection with a permitted acquisition, subject to the terms and conditions of the 2017 Credit Agreement. Each of the ratios referred to in the foregoing clauses (1) and (2) is calculated on a consolidated basis for each consecutive four fiscal quarter periods. As of December 31, 2017, the Company is compliance with affirmative and negative covenants. The Company entered into a standby letter of credit and guarantee arrangement with a bank in the amount of $1.0 million that is fully collateralized by cash, which is classified as restricted cash in the Company's consolidated balance sheet.

Stockholders' equity

12 Months Ended

Dec. 31, 2017

Stockholders' equity [Abstract]

Stockholders' equity

11. Stockholders' equity

Preferred stock

The Company is authorized to issue up to 15.0 million shares of preferred stock, $0.001 par value per share ("Preferred Stock"). Any Preferred Stock issued may have dividend rights, voting rights, conversion privileges, redemption characteristics, and sinking fund requirements as approved by the Company's board of directors.

Common stock

The Company currently has one class of common stock, $0.001 par value per share common stock ("Common Stock"), authorized and outstanding. The Company is authorized to issue up to 200.0 million shares of Common Stock. Holders of Common Stock are entitled to one vote for each share of Common Stock held on all matters, except as may be provided by law.

Stock options and restricted stock units

As of December 31, 2017, the Company had one equity award plan, the Fourth Amended and Restated Emergent BioSolutions Inc. 2006 Stock Incentive Plan (the "2006 Plan"), which includes both stock options and restricted stock units.

In connection with the Separation on August 1, 2016 and in accordance with the employee matters agreement and the Emergent Plans, the Company made certain adjustments to the exercise price and number of equity awards. Continuing Emergent employees with equity awards issued prior to Distribution received an equitable adjustment reflecting a revised exercise price and number of equity awards granted. Continuing Aptevo employees who had been granted Emergent equity awards had their grants canceled and reissued as Aptevo equity awards with an adjusted exercise price.

The following is a summary of stock option award activity under the 2006 Plan:

	2006 Plan
	Number of Shares			Weighted-Average Exercise Price		Aggregate Intrinsic Value
Outstanding at December 31, 2016		2,559,331		$	22.94	$	25,348,245
Granted		427,821			31.13
Exercised		(792,795	)		19.95
Forfeited		(72,952	)		29.30
Outstanding at December 31, 2017		2,121,405		$	25.48	$	44,518,585
Exercisable at December 31, 2017		1,307,330		$	22.63	$	31,170,967
Options expected to vest at December 31, 2017		632,954		$	29.91	$	10,480,716

The following is a summary of restricted stock unit award activity under the 2006 Plan:

	Number of Shares			Weighted-Average Grant Price		Aggregate Intrinsic Value
Outstanding at December 31, 2016		875,584		$	28.94	$	28,754,179
Granted		480,959			31.49
Vested		(423,840	)		30.52
Forfeited		(80,983	)		29.21
Outstanding at December 31, 2017		851,720		$	30.84	$	39,579,428

The weighted average remaining contractual term of options outstanding as of December 31, 2017 and 2016 was 4.0 years and 4.0 years, respectively. The weighted average remaining contractual term of options exercisable as of December 31, 2017 and 2016 was 3.2 years and 3.2 years, respectively.

The weighted average grant date fair value of options granted during the years ended December 31, 2017, 2016, and 2015 was $10.53, $9.24 and $8.66, respectively. The total intrinsic value of options exercised during the years ended December 31, 2017, 2016, and 2015 was $13.9 million, $15.6 million and $20.2 million, respectively. The total fair value of awards vested during 2017, 2016 and 2015 was $17.9 million, $16.9 million and $14.4 million, respectively. As of the year ended December 31, 2017, the total compensation cost and weighted average period over which total compensation is expected to be recognized related to unvested equity awards was $17.9 million and 2.0 years, respectively.

Stock-based compensation expense was recorded in the following financial statement line items:

	Year Ended December 31,
(in thousands)	2017		2016		2015
Cost of product sales	$	1,076	$	997	$	1,183
Research and development		2,526		2,297		2,324
Selling, general and administrative		11,611		14,062		11,234
Continuing operations		15,213		17,356		14,741
Discontinued operations		-		1,121		1,107
Total stock-based compensation expense	$	15,213	$	18,477	$	15,848

On July 14, 2016, the Company's board of directors authorized management to repurchase, from time to time, up to an aggregate of $50 million of the Company's common stock under a board-approved share repurchase program. The term of the board authorization of the repurchase program is until December 31, 2017. Any repurchased shares will be available for use in connection with the Company's stock plans and for other corporate purposes. During the year ended December 31, 2017, the Company has repurchased 0.8 million shares of common stock for $33.1 million.

Income taxes

12 Months Ended

Dec. 31, 2017

Income taxes [Abstract]

Income taxes

12. Income taxes

On December 22, 2017, the President of the United States signed into law the Tax Reform Act. The legislation significantly changes U.S. tax law by, among other things, lowering corporate income tax rates, implementing a territorial tax system and imposing a repatriation tax on deemed repatriated earnings of foreign subsidiaries. The Tax Reform Act permanently reduces the U.S. corporate income tax rate from a maximum of 35% to a flat 21% rate, effective January 1, 2018.

The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse. Valuation allowances are recorded as appropriate to reduce deferred tax assets to the amount considered likely to be realized. As a result of the reduction in the U.S. corporate income tax rate from 35% to 21% under the Tax Reform Act, the Company revalued its ending net deferred tax liabilities in the United States at December 31, 2017 and recognized a provisional $13.4 million tax benefit in the Company's consolidated statement of income for the year ended December 31, 2017.

The Tax Reform Act provided for a one-time deemed mandatory repatriation of post-1986 undistributed foreign subsidiary earnings and profits ("E&P") through the year ended December 31, 2017. The Company had an estimated $95.4 million of undistributed foreign E&P subject to the deemed mandatory repatriation and recognized a provisional transition tax of $13.6 million of income tax expense in the Company's consolidated statement of income for the year ended December 31, 2017. The Company expects to pay U.S. federal cash taxes on the deemed mandatory repatriation over eight years.

While the Tax Reform Act provides for a territorial tax system, beginning in 2018, it includes two new U.S. tax base erosion provisions, the global intangible low-taxed income ("GILTI") provisions and the base-erosion and anti-abuse tax ("BEAT") provisions.

The GILTI provisions require the Company to include in its U.S. income tax return foreign subsidiary earnings in excess of an allowable return on the foreign subsidiary's tangible assets. The Company expects that it will be subject to incremental U.S. tax on GILTI income beginning in 2018, due to Company's overall foreign loss position. The Company has elected to account for GILTI tax in the period in which it is incurred, and therefore has not provided any deferred tax impacts of GILTI in its consolidated financial statements for the year ended December 31, 2017.

On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 ("SAB 118") to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Reform Act. The Company has recognized the provisional tax impacts related to deemed repatriated earnings and the revaluation of deferred tax assets and liabilities and included these amounts in its consolidated financial statements for the year ended December 31, 2017. The ultimate impact may differ from these provisional amounts, possibly materially, due to, among other things, additional analysis, changes in interpretations and assumptions the Company has made, additional regulatory guidance that may be issued, and actions the Company may take as a result of the Tax Reform Act. The Company's estimates are provisional based upon utilization of foreign tax credits and validation of E&P. The accounting is expected to be complete when the 2017 U.S. corporate income tax return is filed in 2018.

Significant components of the provisions for income taxes attributable to operations consist of the following:

	Year Ended December 31,
(in thousands)	2017			2016			2015
Current
Federal	$	29,441		$	29,244		$	38,957
State		2,983			2,331			2,221
International		356			1,002			2,029
Total current		32,780			32,577			43,207
Deferred
Federal		(6,045	)		9,979			(119	)
State		(592	)		(272	)		(111	)
International		9,896			(5,587	)		1,323
Total deferred		3,259			4,120			1,093
Total provision for income taxes	$	36,039		$	36,697		$	44,300

The Company's net deferred tax asset (liability) consists of the following:

	December 31,
(in thousands)	2017			2016
Federal losses carryforward	$	1,603		$	4,130
State losses carryforward		17,234			13,682
Research and development carryforward		3,534			3,647
Scientific research and experimental development credit carryforward		16,493			16,594
Stock compensation		5,344			8,389
Foreign deferrals		34,072			58,647
Inventory reserves		1,607			2,273
Other		3,889			5,569
Deferred tax asset		83,776			112,931
Fixed assets		(23,121	)		(30,728	)
Intangible assets		(2,229	)		(5,882	)
Other		(10,451	)		(16,047	)
Deferred tax liability		(35,801	)		(52,657	)
Valuation allowance		(45,141	)		(54,178	)
Net deferred tax asset	$	2,834		$	6,096

As of December 31, 2017, the Company has a net U.S. deferred tax liability in the amount of $13.1 million and a foreign net deferred tax asset in the amount of $15.9 million. The Company had a net U.S. deferred tax liability in the amount of $18.3 million and a foreign net deferred tax asset in the amount of $24.4 as of December 31, 2016.

As of December 31, 2017, the Company currently has approximately $7.6 million ($1.6 million tax effected) in net operating loss carryforwards along with $3.5 million in research and development tax credit carryforwards for U.S. federal tax purposes that will begin to expire in 2027 and 2024, respectively. The U.S. federal tax carryforwards are recorded with no valuation allowance. The Company has $264.1 million ($17.2 million tax effected) in state net operating loss carryforwards, primarily in Maryland, that will begin to expire in 2019. The U.S. state tax loss carryforwards are recorded with a valuation allowance of $193.5 million ($12.6 million tax effected). The Company has approximately $168.7 million ($32.5 million tax effected) in net operating losses from foreign jurisdictions (excluding Canada) that will have an indefinite life unless the foreign entities have a change in the nature or conduct of the business in the three years following a change in ownership. A valuation allowance in respect to these foreign losses has been recorded in the amount of $32.5 million. During the year the Company has utilized approximately $41.8 million ($11.3 million tax effected) in Canadian loss carryforwards. The Company currently has approximately $16.5 million in Manitoba scientific research and experimental development credit carryforwards that will begin to expire in 2025. The use of any of these net operating losses and research and development tax credit carryforwards may be restricted due to future changes in the Company's ownership.

The provision for income taxes differs from the amount of taxes determined by applying the U.S. federal statutory rate to income before the provision for income taxes as a result of the following:

	Year ended December 31,
(in thousands)	2017			2016			2015
US	$	80,690		$	63,330		$	117,385
International		37,943			35,891			18,331
Earnings before taxes on income		118,633			99,221			135,716

Federal tax at statutory rates	$	41,522		$	34,738		$	47,475
State taxes, net of federal benefit		1,274			529			852
Impact of foreign operations		(2,168	)		(9,937	)		(1,640	)
Change in valuation allowance		314			10,458			(950	)
Tax credits		(1,918	)		(1,572	)		(2,088	)
Transition tax		13,585			-			-
Change in U.S. tax rate		(13,403	)		-			-
Stock compensation		(3,978	)		-			-
Other differences		(118	)		1,103			733
Permanent differences		929			1,378			(82	)
Provision for income taxes	$	36,039		$	36,697		$	44,300

The effective annual tax rate for the years ended December 31, 2017, 2016, and 2015 was 30%, 37% and 33%, respectively.

The effective annual tax rate of 30% in 2017 differs from statutory rate primarily due to the jurisdictional mix of earnings. Due to the impact of the Tax Reform Act enacted on December 22, 2017, the Company recognized a $13.4 million tax benefit as a result of revaluing the U.S. ending net deferred tax liabilities from 35% to the newly enacted U.S. corporate income tax rate of 21%. The tax benefit was fully offset by tax expense of $13.6 million for the transition tax on the deemed mandatory repatriation of undistributed earnings.

The increase in the effective annual tax rate in 2016 was primarily related to tax on the sale, within the Company's consolidated group, of assets from Canadian subsidiaries to U.S. subsidiaries in preparation of the spin-off of Aptevo, and a valuation allowance charge recorded in its continuing operations related to Aptevo deferred tax assets prior to the distribution. The Company determined that upon spin-off, the deferred tax assets of Aptevo would be unrealizable.

The Company recognizes interest in interest expense and recognizes potential penalties related to unrecognized tax benefits in selling, general and administrative expense. Of the total unrecognized tax benefits recorded at December 31, 2017 and 2016, $0.8 million and $0.5 million, respectively, is classified as a current liability and $1.2 million and $1.3 million, respectively, is classified as a non-current liability on the balance sheet.

The table below presents the gross unrecognized tax benefits activity for 2017, 2016 and 2015:

(in thousands)
Gross unrecognized tax benefits at December 31, 2014	$	1,248
Increases for tax positions for prior years		150
Decreases for tax positions for prior years		-
Increases for tax positions for current year		59
Settlements		-
Lapse of statute of limitations		-
Gross unrecognized tax benefits at December 31, 2015		1,457
Increases for tax positions for prior years		5
Decreases for tax positions for prior years		-
Increases for tax positions for current year		299
Settlements		-
Lapse of statute of limitations		-
Gross unrecognized tax benefits at December 31, 2016		1,761
Increases for tax positions for prior years		-
Decreases for tax positions for prior years		-
Increases for tax positions for current year		531
Settlements		(318	)
Lapse of statute of limitations		-
Gross unrecognized tax benefits at December 31, 2017	$	1,974

When resolved, substantially all of these reserves would impact the effective tax rate.

The Company's federal and state income tax returns for the tax years 2013 to 2016 remain open to examination. The Company's tax returns in the United Kingdom remain open to examination for the tax years 2008 to 2016, and tax returns in Germany remain open indefinitely. The Company's tax returns for Canada remains open to examination for the tax years 2010 to 2016.

As of December 31, 2017, the Company's Canadian 2016 Scientific Research and Experimental Development Claim is under audit. As of December 31, 2017, the Company's 2011 and 2012 federal income tax returns that were under audit are now resolved and closed.

401(k) savings plan	12 Months Ended
401(k) savings plan	Dec. 31, 2017
401(k) savings plan [Abstract]
401(k) savings plan	13. 401(k) savings plan The Company has established a defined contribution savings plan under Section 401(k) of the Internal Revenue Code. The 401(k) Plan covers substantially all U.S. employees. Under the 401(k) Plan, employees may make elective salary deferrals. The Company currently provides for matching of qualified deferrals up to 50% of the first 6% of the employee's salary. During the years ended December 31, 2017, 2016, and 2015, the Company made matching contributions of approximately $2.7 million, $2.5 million and $2.2 million, respectively.

Leases

12 Months Ended

Dec. 31, 2017

Leases [Abstract]

Leases

14. Leases

The Company leases fill/finish, manufacturing, laboratory, warehouse and office facilities, office equipment and vehicles under various operating lease agreements. The Company leases a fill/finish space in Rockville, Maryland under an operating lease that contains no escalation clause, which expires in May 2027. The Company leases office and warehouse space in Baltimore, Maryland under an operating lease that contains a 2.75% escalation clause, which expires in July 2027. The Company leases office and warehouse space in Canton, Massachusetts, under an operating lease that contains a 3.0% escalation clause, which expires in April 2023. The Company leases office space in Washington, D.C. under an operating lease that contains a 2.5% escalation clause, which expires in March 2027. For the years ended December 31, 2017, 2016, and 2015, total lease expense was $1.6 million, $1.4 million and $1.3 million, respectively.

Future minimum lease payments under operating lease obligations as of December 31, 2017 were as follows:

(in thousands)
2017	$	1,626
2018		1,391
2019		1,339
2020		1,343
2021		1,346
2022 and beyond		3,685
Total minimum lease payments	$	10,730

Related party transactions	12 Months Ended
Related party transactions	Dec. 31, 2017
Related party transactions [Abstract]
Related party transactions	15. Related party transactions In November 2015, the Company entered into a consulting arrangement with a member of the Company's Board of Directors, amended in July 2016, to provide assistance in connection with the planned spin-off of Aptevo. The total compensation under the agreement was approximately $0.2 million per year. The consulting agreement terminated on August 1, 2016. The Company entered into an agreement in February 2009 with an entity controlled by family members of the Company's Executive Chairman to sell BioThrax. The agreement was effective as of November 2008 and requires payment based on a percentage of net sales of biodefense products of 17.5% in Saudi Arabia and 15% in Qatar and United Arab Emirates, and reimbursement of certain expenses. No expenses were incurred under this agreement during the years ended December 31, 2017, 2016 and 2015.

Earnings per share

12 Months Ended

Dec. 31, 2017

Earnings per share [Abstract]

Earnings per share

16. Earnings per share

The following table presents the calculation of basic and diluted net income per share:

	Years ended December 31,
(in thousands, except share and per share data)	2017		2016			2015
Numerator:
Net income from continuing operations	$	82,594	$	62,524		$	91,416
Interest expense, net of tax		2,606		3,255			3,019
Amortization of debt issuance costs, net of tax		681		781			868
Net income, adjusted from continuing operations		85,881		66,560			95,303
Net loss from discontinued operations		-		(10,748	)		(28,546	)
Net income, adjusted	$	85,881	$	55,812		$	66,757

Denominator:
Weighted-average number of shares-basic		41,816,431		40,184,159			38,595,435
Dilutive securities-equity awards		1,115,244		1,054,453			939,882
Dilutive securities-convertible debt		7,396,262		8,096,500			7,720,525
Weighted-average number of shares-diluted		50,327,937		49,335,112			47,255,842

Net income per share-basic from continuing operations	$	1.98	$	1.56		$	2.37
Net loss per share-basic from discontinued operations		-		(0.27	)		(0.74	)
Net income per share-basic	$	1.98	$	1.29		$	1.63

Net income per share-diluted from continuing operations	$	1.71	$	1.35		$	2.02
Net loss per share-diluted from discontinued operations		-		(0.22	)		(0.61	)
Net income per share-diluted	$	1.71	$	1.13		$	1.41

For the year ending December 31, 2017 and 2016, substantially all of the outstanding stock options to purchase shares of common stock were included in the calculation of diluted earnings per share. For the years ending December 31, 2015, outstanding stock options to purchase approximately 1.4 million shares of common stock, respectively, are not considered in the diluted earnings per share calculation because the exercise price of these options is greater than the average per share closing price during the year and their effect would be anti-dilutive.

Restructuring

12 Months Ended

Dec. 31, 2017

Restructuring [Abstract]

Restructuring

17. Restructuring

In August 2016, the Company adopted a plan to restructure and reprioritize the operations of one of our facilities at the Emergent BioDefense Operations Lansing LLC ("EBOL") site due to the Company's large-scale manufacturing facility at EBOL commencing manufacturing operations. Severance and other related costs and asset-related charges are reflected within the Company's consolidated statement of income as a component of selling, general and administrative expense.

The Company has completed the EBOL restructuring. The costs of the EBOL restructuring for the year ended December 31, 2017 and recognized to date are detailed below:

	Incurred in		Inception
(in thousands)	2017		To Date
Termination benefits	$	40	$	5,286
Abandonment of equipment		-		3,749
Other costs		-		691
Total	$	40	$	9,726

During the year ended December 31, 2016, the Company abandoned certain equipment and associated assets at its EBOL facility related to the manufacturing process at Building 12 ("manufacturing process") asset group. During the third quarter of 2016, the Company recorded a charge for the manufacturing process asset group of $3.7 million. The additional expense is classified in the Company's statements of operations as selling, general and administrative expense.

The following is a summary of the activity for the liabilities related to the EBOL restructuring:

	Termination
(in thousands)	Benefits
Balance at December 31, 2016	$	4,357
Expenses incurred		40
Amount paid		(4,387	)
Balance at December 31, 2017	$	10

Segment information	12 Months Ended
Segment information	Dec. 31, 2017
Segment information [Abstract]
Segment information	18. Segment information On August 6, 2015, the Company announced its plan to separate into two independent publicly-traded companies. In anticipation of the spin-off, the Company realigned certain components of its biosciences business to the new Aptevo segment to be consistent with how the chief operating decision maker ("CODM"), allocates resources and makes decisions about the operations of the Company. Effective January 1, 2016, the Company changed its segment presentation to reflect this new structure, and recast all prior periods presented to conform to the new presentation. On August 1, 2016, the Company completed the spin-off of Aptevo. The results of operations and financial position of Aptevo are reflected as discontinued operations for all periods presented through the date of the spin-off. For financial reporting purposes, in the periods following the spin-off of Aptevo, the Company reports financial information for one reportable segment. This reportable segment engages in business activities for which discrete financial information is provided to and resources are allocated by the CODM. The accounting policies of the reportable segment is the same as those described in the summary of significant accounting policies. For the years ended December 31, 2017, 2016, and 2015, the Company's revenues within the United States comprised 89%, 94% and 96%, respectively, of total revenues. For the years ended December 31, 2017, 2016, and 2015, product revenues from BioThrax to the U.S. government comprised approximately 67%, 80% and 89%, respectively, of total product revenues. As of December 31, 2017, 2016, and 2015, there were no other product sales to an individual customer or for an individual product in excess of 10% of total product sales revenues. For years ended December 31, 2017 and 2016, the Company had long-lived assets outside of the United States of approximately $28.6 million and $28.4 million, respectively, which are primarily located within Canada.

Quarterly financial data (unaudited)

12 Months Ended

Dec. 31, 2017

Quarterly financial data (unaudited) [Abstract]

Quarterly financial data (unaudited)

19. Quarterly financial data (unaudited)

Quarterly financial information for the years ended December 31, 2017 and 2016 is presented in the following tables:

	Quarter Ended
(in thousands, except per share data)	March 31,			June 30,			September 30,		December 31,
2017:
Revenue	$	116,858		$	100,772		$	149,434	$	193,809
Income from operations		14,910			8,529			47,769		53,077
Net income		10,485			4,616			33,551		33,942

Net income per share-basic	$	0.26		$	0.11		$	0.81	$	0.77
Net income per share-diluted	$	0.23		$	0.11		$	0.68	$	0.67

2016:
Revenue	$	102,964		$	91,241		$	142,914	$	151,663
Income (loss) from operations		21,157			(2,042	)		35,478		50,929
Net income (loss) from continuing operations		11,889			(2,042	)		20,388		32,289
Net income (loss) from discontinued operations (1)		(7,898	)		(8,905	)		952		5,103
Net income (loss)		3,991			(10,947	)		21,340		37,392

Net income (loss) per share from continuing operations-basic	$	0.30		$	(0.05	)	$	0.50	$	0.80
Net income (loss) per share from discontinued operations-basic		(0.20	)		(0.22	)		0.02		0.13
Net income (loss) per share-basic	$	0.10		$	(0.27	)	$	0.52	$	0.93

Net income (loss) per share from continuing operations-diluted	$	0.26		$	(0.05	)	$	0.43	$	0.67
Net income (loss) per share from discontinued operations-diluted		(0.16	)		(0.22	)		0.02		0.10
Net income (loss) per share-diluted	$	0.10		$	(0.27	)	$	0.45	$	0.77

(1) Reflects a change in estimate attributed to higher pretax income within continuing operations. According to the ordering rules of intraperiod tax allocation, the residual amount of change after determining the effective rate for continuing operations is allocated to discontinued operations.

Litigation	12 Months Ended
Litigation	Dec. 31, 2017
Litigation [Abstract]
Litigation	20. Litigation On July 19, 2016, Plaintiff William Sponn, or Sponn, filed a putative class action complaint in the United States District Court for the District of Maryland on behalf of purchasers of the Company's common stock between January 11, 2016 and June 21, 2016, inclusive, or the Class Period, seeking to pursue remedies under the Securities Exchange Act of 1934 against the Company and certain of its senior officers and directors, collectively, the Defendants. The complaint alleges, among other things, that the Company made materially false and misleading statements about the government's demand for BioThrax and expectations that the Company's five-year exclusive procurement contract with HHS would be renewed and omitted certain material facts. Sponn is seeking unspecified damages, including legal costs. On October 25, 2016, the Court added City of Cape Coral Municipal Firefighters' Retirement Plan and City of Sunrise Police Officers' Retirement Plan as plaintiffs and appointed them Lead Plaintiffs and Robins Geller Rudman & Dowd LLP as Lead Counsel. On December 27, 2016, the Plaintiffs filed an amended complaint that cites the same class period, names the same defendants and makes similar allegations to the original complaint. The Company filed a Motion to Dismiss on February 27, 2017. The Plaintiffs filed an opposition brief on April 28, 2017. The Company's Motion to Dismiss was heard and denied on July 6, 2017. The Company filed its answer on July 28, 2017. The parties are currently in the process of exchanging discovery. The Plaintiffs' filed an amended motion for class certification and appointment of Sponn and Geoffrey L. Flagstad as lead plaintiffs on December 20, 2017. A hearing on that motion is set for May 2, 2018. The Defendants believe that the allegations in the complaint are without merit and intend to defend themselves vigorously against those claims. As of the date of this filing, the range of potential loss cannot be determined or estimated.

Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2017

Schedule II - Valuation and Qualifying Accounts [Abstract]

Schedule II - Valuation and Qualifying Accounts

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

(in thousands)	Beginning Balance		Charged to costs and expenses		Deductions			Ending Balance
Year Ended December 31, 2017
Inventory allowance	$	3,535	$	8,846	$	(8,532	)	$	3,849
Prepaid expenses and other current assets allowance		4,868		466		-			5,334

Year Ended December 31, 2016
Inventory allowance	$	1,637	$	9,950	$	(8,052	)	$	3,535
Prepaid expenses and other current assets allowance		1,981		2,887		-			4,868

Year Ended December 31, 2015
Inventory allowance	$	1,314	$	6,258	$	(5,935	)	$	1,637
Prepaid expenses and other current assets allowance		1,885		96		-			1,981

Summary of significant accounting policies (Policies)

12 Months Ended

Dec. 31, 2017

Summary of significant accounting policies [Abstract]

Basis of presentation and consolidation

Use of estimates

Cash and cash equivalents

Fair value of measurements

Level 1 —

Observable inputs for identical assets or liabilities such as quoted prices in active markets;

Level 2 —

Inputs other than quoted prices in active markets that are either directly or indirectly observable; and

Level 3 —

Unobservable inputs in which little or no market data exists, which are therefore developed by the Company using estimates and assumptions that reflect those that a market participant would use.

Significant customers and accounts receivable

Concentrations of credit risk and uncertainties

Inventories

Property, plant and equipment

Property, plant and equipment are stated at cost. Depreciation is computed using the straight-line method over the following estimated useful lives:

Buildings	31-39 years
Building improvements	10-39 years
Furniture and equipment	3-15 years
Software	3-7 years or product life
Leasehold improvements	Lesser of the asset life or lease term

Income taxes

Revenue recognition

The Company recognizes revenues from product sales and contract manufacturing if four basic criteria have been met:



there is persuasive evidence of an arrangement;



delivery has occurred or title has passed to the Company's customer;



the fee is fixed or determinable; and



collectability is reasonably assured.

BAT product sales upon delivery to the SNS;

stability testing based on the required testing schedule of the product;

extended product expiry based on achievement of the extension;

horse maintenance based on a per horse basis; and

plasma collection on a per liter basis.

VIGIV and Anthrasil product sales upon delivery to the CDC;

stability testing based on the required testing schedule of the product;

extended product expiry based on achievement of the extension; and

plasma collection on a per liter basis.

·	development services for the NuThrax product candidate under the BARDA NuThrax Contract; and

·	procurement of BioThrax under the BARDA BioThrax Contract.

·	$137.1 million was allocated to the development services for the NuThrax product candidate under the BARDA NuThrax Contract; and

·	$93.6 million was allocated to the procurement of BioThrax under the BARDA BioThrax Contract.

Acquisitions

Intangible assets and long-lived assets

Goodwill

Contingent Consideration

Research and development

We expense research and development costs as incurred. Our research and development expenses consist primarily of:

personnel-related expenses;

costs of contract manufacturing services for clinical trial material; and

costs of materials used in clinical trials and research and development.

The Company calculates basic earnings per share by dividing net income by the weighted average number of shares of common stock outstanding during the period.

Accounting for stock-based compensation

	Year Ended December 31,
		2017	2016	2015
Expected dividend yield		0%	0%	0%
Expected volatility		37-40%	31-33%	34-35%
Risk-free interest rate		1.66-1.88%	0.93-1.22%	1.27-1.61%
Expected average life of options		4.3 years	4.3 years	4.3 years



Expected dividend yield — the Company does not pay regular dividends on its common stock and does not anticipate paying any dividends in the foreseeable future.



Risk-free interest rate — the range of U.S. Treasury rates with a term that most closely resembles the expected life of the option as of the date on which the option is granted.



Recently issued accounting standards

ASU 2014-09, Revenue from Contracts with Customers (Topic 606)

ASU 2016-02, Leases (Topic 842)

ASU No. 2016-09, Compensation - Stock Compensation (Topic 718)

ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business

ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 250): Simplifying the Test for Goodwill Impairment

ASU No. 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting

There are no other recently issued accounting pronouncements that are expected to have a material effect on the Company's financial position, results of operations or cash flows.

Summary of significant accounting policies (Tables)

12 Months Ended

Dec. 31, 2017

Summary of significant accounting policies [Abstract]

Estimated useful lives of property, plant and equipment

Property, plant and equipment are stated at cost. Depreciation is computed using the straight-line method over the following estimated useful lives:

Buildings	31-39 years
Building improvements	10-39 years
Furniture and equipment	3-15 years
Software	3-7 years or product life
Leasehold improvements	Lesser of the asset life or lease term

Assumptions used in valuing stock options granted

	Year Ended December 31,
		2017	2016	2015
Expected dividend yield		0%	0%	0%
Expected volatility		37-40%	31-33%	34-35%
Risk-free interest rate		1.66-1.88%	0.93-1.22%	1.27-1.61%
Expected average life of options		4.3 years	4.3 years	4.3 years

Discontinued operations (Tables)

12 Months Ended

Dec. 31, 2017

Discontinued operations [Abstract]

Summarized results of discontinued operations included in consolidated statements of income

The following table summarizes results from discontinued operations of Aptevo included in the consolidated statements of operations for the year ended December 31, 2016 and 2015:

	Years ended December 31,
(in thousands)	2016			2015

Revenues:
Product sales	$	21,183		$	27,947
Collaborations		187			5,511
Total revenues		21,370			33,458

Operating expense:
Cost of product sales		11,556			16,809
Research and development		18,024			34,811
Selling, general and administrative		23,792			27,313
Loss from operations		(32,002	)		(45,475	)

Other income (expense), net:		(41	)		(472	)

Loss from discontinued operations before benefit from income taxes		(32,043	)		(45,947	)
Benefit from income taxes		(21,295	)		(17,401	)
Net loss from discontinued operations	$	(10,748	)	$	(28,546	)

Summary of disposal groups including discontinued operations cash flows

The following table summarizes the cash flows of Aptevo included in the years ended December 31, 2016 and 2015 consolidated statements of cash flows:

	Years ended December 31,
(in thousands)	2016			2015
Net cash used in operating activities	$	(10,299	)	$	(12,716	)
Net cash used in investing activities		(1,926	)		(1,518	)
Net cash provided by financing activities		7,733			15,012

Net increase (decrease) in cash and cash equivalents	$	(4,492	)	$	778

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=65878427&loc=SL51721533-107759

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 20
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 20
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721683-107760

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=84176398&loc=SL51724579-110230

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
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-Paragraph 5C
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721675-107760

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
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-Paragraph 4A
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721663-107760

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=84176398&loc=d3e2941-110230

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5B
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721673-107760

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721659-107760

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
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-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721671-107760

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
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-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721677-107760

+ Details

Acquisitions (Tables)

12 Months Ended

Dec. 31, 2017

Acquisitions [Abstract]

Summary of total purchase price

The total purchase price is summarized below:

(in thousands)
Amount of cash paid to Sanofi	$	117,500
Fair value of contingent purchase consideration		2,200
Total purchase price	$	119,700

Allocation of purchase price based upon estimated fair values of assets acquired and liabilities assumed

(in thousands)
Fair value of tangible assets acquired and liabilities assumed:
Inventory	$	74,876
Property, plant and equipment		19,995
Total fair value of tangible assets acquired and liabilities assumed		94,871

Acquired intangible asset		16,700
Goodwill		8,129
Total purchase price	$	119,700

Fair value measurements (Tables)

12 Months Ended

Dec. 31, 2017

Fair value measurements [Abstract]

Reconciliation of Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3)

(in thousands)
Balance at December 31, 2015	$	25,155
(Income) expense included in earnings		(10,857	)
Settlements		(1,113	)
Balance at December 31, 2016	$	13,185
(Income) expense included in earnings		7,830
Settlements		(10,941	)
Purchases, sales and issuances		2,200
Balance at December 31, 2017	$	12,274

Accounts receivable (Tables)

12 Months Ended

Dec. 31, 2017

Accounts receivable [Abstract]

Accounts receivable

Accounts receivable consist of the following:

	December 31,
(in thousands)	2017			2016
Billed		$	118,918		$	90,439
Unbilled			24,735			48,039
Total		$	143,653		$	138,478

Inventories (Tables)

12 Months Ended

Dec. 31, 2017

Inventories [Abstract]

Inventories

Inventories consist of the following:

	December 31,
(in thousands)	2017		2016
Raw materials and supplies	$	36,069	$	30,687
Work-in-process		76,610		19,821
Finished goods		30,133		23,494
Total inventories	$	142,812	$	74,002

The increase in inventories for the year ended December 31, 2017 was primarily due to the acquisition of ACAM2000 in October 2017.

Property, plant and equipment (Tables)

12 Months Ended

Dec. 31, 2017

Property, plant and equipment [Abstract]

Property, plant and equipment

Property, plant and equipment consist of the following:

	December 31,
(in thousands)	2017			2016
Land and improvements	$	21,843		$	20,340
Buildings, building improvements and leasehold improvements		160,005			147,130
Furniture and equipment		206,819			190,157
Software		50,829			52,564
Construction-in-progress		100,088			77,813
		539,584			488,004
Less: Accumulated depreciation and amortization		(132,374	)		(111,556	)
Total property, plant and equipment, net	$	407,210		$	376,448

Intangible assets and goodwill (Tables)

12 Months Ended

Dec. 31, 2017

Intangible assets and goodwill [Abstract]

Intangible Assets

Intangible assets consisted of the following:


(in thousands)	Total
Cost basis
Balance at December 31, 2016	$	57,099
Additions		94,304
Balance at December 31, 2017	$	151,403

Accumulated amortization
Balance at December 31, 2016	$	(23,234	)
Amortization		(8,572	)
Balance at December 31, 2017	$	(31,806	)

Net book value at December 31, 2017	$	119,597

Future Amortization Expense

Future amortization expense as of December 31, 2017 is as follows:

(in thousands)
2018	$	15,647
2019		15,168
2020		15,087
2021		13,596
2022 and beyond		60,099
Total remaining amortization	$	119,597

Goodwill

The following table is a summary of changes in goodwill by reporting unit:

(in thousands)	Therapeutics and vaccines		Contract manufacturing		Devices		Total
Cost Basis
Balance at December 31, 2016	$	24,349	$	6,736	$	9,916	$	41,001
Additions		8,129		-		-		8,129
Balance at December 31, 2017	$	32,478	$	6,736	$	9,916	$	49,130

Stockholders' equity (Tables)

12 Months Ended

Dec. 31, 2017

Stockholders' equity [Abstract]

Option award activity

The following is a summary of stock option award activity under the 2006 Plan:

	2006 Plan
	Number of Shares			Weighted-Average Exercise Price		Aggregate Intrinsic Value
Outstanding at December 31, 2016		2,559,331		$	22.94	$	25,348,245
Granted		427,821			31.13
Exercised		(792,795	)		19.95
Forfeited		(72,952	)		29.30
Outstanding at December 31, 2017		2,121,405		$	25.48	$	44,518,585
Exercisable at December 31, 2017		1,307,330		$	22.63	$	31,170,967
Options expected to vest at December 31, 2017		632,954		$	29.91	$	10,480,716

Restricted stock units activity

The following is a summary of restricted stock unit award activity under the 2006 Plan:

	Number of Shares			Weighted-Average Grant Price		Aggregate Intrinsic Value
Outstanding at December 31, 2016		875,584		$	28.94	$	28,754,179
Granted		480,959			31.49
Vested		(423,840	)		30.52
Forfeited		(80,983	)		29.21
Outstanding at December 31, 2017		851,720		$	30.84	$	39,579,428

Allocated stock-based compensation expense

Stock-based compensation expense was recorded in the following financial statement line items:

	Year Ended December 31,
(in thousands)	2017		2016		2015
Cost of product sales	$	1,076	$	997	$	1,183
Research and development		2,526		2,297		2,324
Selling, general and administrative		11,611		14,062		11,234
Continuing operations		15,213		17,356		14,741
Discontinued operations		-		1,121		1,107
Total stock-based compensation expense	$	15,213	$	18,477	$	15,848

Income taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income taxes [Abstract]

Components of the provision for income taxes attributable to operations

Significant components of the provisions for income taxes attributable to operations consist of the following:

	Year Ended December 31,
(in thousands)	2017			2016			2015
Current
Federal	$	29,441		$	29,244		$	38,957
State		2,983			2,331			2,221
International		356			1,002			2,029
Total current		32,780			32,577			43,207
Deferred
Federal		(6,045	)		9,979			(119	)
State		(592	)		(272	)		(111	)
International		9,896			(5,587	)		1,323
Total deferred		3,259			4,120			1,093
Total provision for income taxes	$	36,039		$	36,697		$	44,300

Net deferred tax asset

The Company's net deferred tax asset (liability) consists of the following:

	December 31,
(in thousands)	2017			2016
Federal losses carryforward	$	1,603		$	4,130
State losses carryforward		17,234			13,682
Research and development carryforward		3,534			3,647
Scientific research and experimental development credit carryforward		16,493			16,594
Stock compensation		5,344			8,389
Foreign deferrals		34,072			58,647
Inventory reserves		1,607			2,273
Other		3,889			5,569
Deferred tax asset		83,776			112,931
Fixed assets		(23,121	)		(30,728	)
Intangible assets		(2,229	)		(5,882	)
Other		(10,451	)		(16,047	)
Deferred tax liability		(35,801	)		(52,657	)
Valuation allowance		(45,141	)		(54,178	)
Net deferred tax asset	$	2,834		$	6,096

Reconciliation of taxes determined by applying U.S. federal statutory rate to loss before provision for income taxes

The provision for income taxes differs from the amount of taxes determined by applying the U.S. federal statutory rate to income before the provision for income taxes as a result of the following:

	Year ended December 31,
(in thousands)	2017			2016			2015
US	$	80,690		$	63,330		$	117,385
International		37,943			35,891			18,331
Earnings before taxes on income		118,633			99,221			135,716

Federal tax at statutory rates	$	41,522		$	34,738		$	47,475
State taxes, net of federal benefit		1,274			529			852
Impact of foreign operations		(2,168	)		(9,937	)		(1,640	)
Change in valuation allowance		314			10,458			(950	)
Tax credits		(1,918	)		(1,572	)		(2,088	)
Transition tax		13,585			-			-
Change in U.S. tax rate		(13,403	)		-			-
Stock compensation		(3,978	)		-			-
Other differences		(118	)		1,103			733
Permanent differences		929			1,378			(82	)
Provision for income taxes	$	36,039		$	36,697		$	44,300

Gross unrecognized tax benefits activity

The table below presents the gross unrecognized tax benefits activity for 2017, 2016 and 2015:

(in thousands)
Gross unrecognized tax benefits at December 31, 2014	$	1,248
Increases for tax positions for prior years		150
Decreases for tax positions for prior years		-
Increases for tax positions for current year		59
Settlements		-
Lapse of statute of limitations		-
Gross unrecognized tax benefits at December 31, 2015		1,457
Increases for tax positions for prior years		5
Decreases for tax positions for prior years		-
Increases for tax positions for current year		299
Settlements		-
Lapse of statute of limitations		-
Gross unrecognized tax benefits at December 31, 2016		1,761
Increases for tax positions for prior years		-
Decreases for tax positions for prior years		-
Increases for tax positions for current year		531
Settlements		(318	)
Lapse of statute of limitations		-
Gross unrecognized tax benefits at December 31, 2017	$	1,974

Leases (Tables)

12 Months Ended

Dec. 31, 2017

Leases [Abstract]

Future Minimum Lease Payments under Operating Lease Obligations

Future minimum lease payments under operating lease obligations as of December 31, 2017 were as follows:

(in thousands)
2017	$	1,626
2018		1,391
2019		1,339
2020		1,343
2021		1,346
2022 and beyond		3,685
Total minimum lease payments	$	10,730

Earnings per share (Tables)

12 Months Ended

Dec. 31, 2017

Earnings per share [Abstract]

Summary of basic and diluted net income per share

The following table presents the calculation of basic and diluted net income per share:

	Years ended December 31,
(in thousands, except share and per share data)	2017		2016			2015
Numerator:
Net income from continuing operations	$	82,594	$	62,524		$	91,416
Interest expense, net of tax		2,606		3,255			3,019
Amortization of debt issuance costs, net of tax		681		781			868
Net income, adjusted from continuing operations		85,881		66,560			95,303
Net loss from discontinued operations		-		(10,748	)		(28,546	)
Net income, adjusted	$	85,881	$	55,812		$	66,757

Denominator:
Weighted-average number of shares-basic		41,816,431		40,184,159			38,595,435
Dilutive securities-equity awards		1,115,244		1,054,453			939,882
Dilutive securities-convertible debt		7,396,262		8,096,500			7,720,525
Weighted-average number of shares-diluted		50,327,937		49,335,112			47,255,842

Net income per share-basic from continuing operations	$	1.98	$	1.56		$	2.37
Net loss per share-basic from discontinued operations		-		(0.27	)		(0.74	)
Net income per share-basic	$	1.98	$	1.29		$	1.63

Net income per share-diluted from continuing operations	$	1.71	$	1.35		$	2.02
Net loss per share-diluted from discontinued operations		-		(0.22	)		(0.61	)
Net income per share-diluted	$	1.71	$	1.13		$	1.41

Restructuring (Tables)

12 Months Ended

Dec. 31, 2017

Restructuring [Abstract]

Costs of the restructuring

The Company has completed the EBOL restructuring. The costs of the EBOL restructuring for the year ended December 31, 2017 and recognized to date are detailed below:

	Incurred in		Inception
(in thousands)	2017		To Date
Termination benefits	$	40	$	5,286
Abandonment of equipment		-		3,749
Other costs		-		691
Total	$	40	$	9,726

Summary of the activity for liabilities related to EBOL restructuring

The following is a summary of the activity for the liabilities related to the EBOL restructuring:

	Termination
(in thousands)	Benefits
Balance at December 31, 2016	$	4,357
Expenses incurred		40
Amount paid		(4,387	)
Balance at December 31, 2017	$	10

Quarterly financial data (unaudited) (Tables)

12 Months Ended

Dec. 31, 2017

Quarterly financial data (unaudited) [Abstract]

Quarterly financial information

Quarterly financial information for the years ended December 31, 2017 and 2016 is presented in the following tables:

	Quarter Ended
(in thousands, except per share data)	March 31,			June 30,			September 30,		December 31,
2017:
Revenue	$	116,858		$	100,772		$	149,434	$	193,809
Income from operations		14,910			8,529			47,769		53,077
Net income		10,485			4,616			33,551		33,942

Net income per share-basic	$	0.26		$	0.11		$	0.81	$	0.77
Net income per share-diluted	$	0.23		$	0.11		$	0.68	$	0.67

2016:
Revenue	$	102,964		$	91,241		$	142,914	$	151,663
Income (loss) from operations		21,157			(2,042	)		35,478		50,929
Net income (loss) from continuing operations		11,889			(2,042	)		20,388		32,289
Net income (loss) from discontinued operations (1)		(7,898	)		(8,905	)		952		5,103
Net income (loss)		3,991			(10,947	)		21,340		37,392

Net income (loss) per share from continuing operations-basic	$	0.30		$	(0.05	)	$	0.50	$	0.80
Net income (loss) per share from discontinued operations-basic		(0.20	)		(0.22	)		0.02		0.13
Net income (loss) per share-basic	$	0.10		$	(0.27	)	$	0.52	$	0.93

Net income (loss) per share from continuing operations-diluted	$	0.26		$	(0.05	)	$	0.43	$	0.67
Net income (loss) per share from discontinued operations-diluted		(0.16	)		(0.22	)		0.02		0.10
Net income (loss) per share-diluted	$	0.10		$	(0.27	)	$	0.45	$	0.77

Nature of the business and organization (Details)	12 Months Ended
Nature of the business and organization (Details)	Dec. 31, 2017 Category Product
Nature of the business and organization [Abstract]
Number of categories of public health threats \| Category	2
Number of revenue generating products \| Product	8

Summary of significant accounting policies, Part 1 (Details)	12 Months Ended
	Dec. 31, 2017 Segment
Basis of presentation and consolidation [Abstract]
Number of reportable segments	1

Summary of significant accounting policies, Part 2 (Details)	12 Months Ended
	Dec. 31, 2017
Buildings [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	31 years
Buildings [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	39 years
Building Improvements [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	10 years
Building Improvements [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	39 years
Furniture and Equipment [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	3 years
Furniture and Equipment [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	15 years
Software [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	3-7 years or product life
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	Lesser of the asset life or lease term

Summary of significant accounting policies, Part 3 (Details) - BARDA [Member] Dose in Millions, $ in Millions	Mar. 16, 2017 USD ($) Dose	Sep. 30, 2016 USD ($)
BioThrax [Member]
Product Information [Line Items]
Amount of contract	$ 100.0
Period of performance	2 years
Consideration allocated to procurement	$ 93.6
NuThrax [Member]
Product Information [Line Items]
Consideration allocated to development activities	$ 137.1	$ 147.5
NuThrax [Member] \| Minimum [Member]
Product Information [Line Items]
Number of doses to be delivered \| Dose	2
NuThrax [Member] \| Maximum [Member]
Product Information [Line Items]
Number of doses to be delivered \| Dose	3
Discount on purchase price for doses to be procured	$ 100.0

Summary of significant accounting policies, Part 4 (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Capitalized interest [Abstract]
Interest costs incurred	$ 7.0	$ 8.3	$ 7.8
Interest costs capitalized	$ 2.2	$ 2.2	$ 2.9
Earnings Per Share [Abstract]
Interest rate, stated percentage	2.875%
Shares issued to extinguish convertible notes	8,508,088

Summary of significant accounting policies, Part 5 (Details) shares in Millions	12 Months Ended
	Dec. 31, 2017 Plan shares	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
2006 Plan [Member] \| Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock authorized for issuance under the plan (in shares)	18.9
Common stock available for future awards (in shares)	4.9
Assumptions used in valuing the stock options granted [Abstract]
Expected dividend yield	0.00%	0.00%	0.00%
Expected average life of options	4 years 3 months 18 days	4 years 3 months 18 days	4 years 3 months 18 days
2006 Plan [Member] \| Stock Options [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price of option as percentage of fair market value at grant date, minimum	100.00%
Assumptions used in valuing the stock options granted [Abstract]
Expected volatility	37.00%	31.00%		34.00%
Risk-free interest rate	1.66%	0.93%	1.27%
2006 Plan [Member] \| Stock Options [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contractual life of awards	10 years
Exercise period of options	10 years
Assumptions used in valuing the stock options granted [Abstract]
Expected volatility	40.00%	33.00%		35.00%
Risk-free interest rate	1.88%	1.22%	1.61%
Emergent Plans [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock based employee compensation plans \| Plan	1

Summary of significant accounting policies, Part 6 (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Increase (decrease) in deferred revenue	$ 15,022	$ 4,602	$ 3,474
Income tax expense (benefit)	$ 36,039	$ 36,697	$ 44,300
Accounting Standards Update 2016-09 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Change to estimated effective annual tax rate		4.00%
Income tax expense (benefit)		$ (3,300)

Discontinued operations (Details) - USD ($) $ in Thousands		12 Months Ended
Discontinued operations (Details) - USD ($) $ in Thousands	Aug. 01, 2016	Dec. 31, 2016	Dec. 31, 2015
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Percentage of outstanding shares distributed	100.00%
Record date for distribution	Jul. 22, 2016
Number of shares received (in shares)	1
Number of shares held (in shares)	2
Number of common stock distributed (in shares)	20,230,000
Aptevo [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Unsecured debt	$ 20,000
Revenues [Abstract]
Product sales		$ 21,183	$ 27,947
Collaborations		187	5,511
Total revenues		21,370	33,458
Operating expense [Abstract]
Cost of product sales		11,556	16,809
Research and development		18,024	34,811
Selling, general and administrative		23,792	27,313
Loss from operations		(32,002)	(45,475)
Other income (expense), net [Abstract]
Other income (expense), net		(41)	(472)
Loss from discontinued operations before benefit from income taxes		(32,043)	(45,947)
Benefit from income taxes		(21,295)	(17,401)
Net loss from discontinued operations		(10,748)	(28,546)
Net Cash Provided by (Used in) Discontinued Operations [Abstract]
Net cash used in operating activities		(10,299)	(12,716)
Net cash used in investing activities		(1,926)	(1,518)
Net cash provided by financing activities		7,733	15,012
Net increase (decrease) in cash and cash equivalents		$ (4,492)	$ 778

Acquisitions (Details) - USD ($) $ in Thousands			12 Months Ended
Acquisitions (Details) - USD ($) $ in Thousands	Oct. 06, 2017	Oct. 02, 2017	Dec. 31, 2017	Dec. 31, 2016
Fair value of tangible assets acquired and liabilities assumed [Abstract]
Goodwill			$ 49,130	$ 41,001
Sanofi [Member]
Summary of total purchase price [Abstract]
Amount of cash paid to Sanofi	$ 117,500
Fair value of contingent purchase consideration	2,200
Total purchase price	119,700
Fair value of tangible assets acquired and liabilities assumed [Abstract]
Inventory	74,876
Property, plant and equipment	19,995
Total fair value of tangible assets acquired and liabilities assumed	94,871
Acquired intangible asset	16,700
Goodwill	8,129
Total purchase price	$ 119,700
ACAM2000 [Member]
Business Acquisition [Line Items]
Term of contract under acquisition	10 years
Value of contract	$ 425,000
Amount for deliveries of product to the SNS	160,000
Upfront cash payment	97,500
Amount of payment for manufacturing related milestones	20,000
Amount of payment for regulatory related milestones	$ 7,500		7,500
Fair value of tangible assets acquired and liabilities assumed [Abstract]
Present value discount rate	15.50%
Amortization period of intangible asset	10 years
Transaction costs related to acquisition			$ 2,500
Raxibacumab [Member]
Business Acquisition [Line Items]
Upfront cash payment		$ 76,000
Amount of payment for manufacturing related milestones		20,000
Capitalized transaction costs		$ 1,600
Fair value of tangible assets acquired and liabilities assumed [Abstract]
Amortization period of intangible asset		10 years

Fair value measurements (Details) - USD ($) $ in Thousands	12 Months Ended
Fair value measurements (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Unobservable Input Reconciliation [Roll Forward]
Balance, beginning of period	$ 13,185	$ 25,155
(Income) expense included in earnings	7,830	(10,857)
Settlements	(10,941)	(1,113)
Purchases, sales and issuances	2,200
Balance, end of period	12,274	13,185
RSDL [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value adjustment for contingent obligations	2,700	(5,400)
Evolva Holding SA 035 & Unither [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value adjustment for contingent obligations	(200)	$ (5,400)
ACAM2000 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value adjustment for contingent obligations	5,300
Amount of payment for regulatory related milestones	$ 7,500

Accounts receivable (Details) - USD ($) $ in Thousands	12 Months Ended
Accounts receivable (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, net	$ 143,653	$ 138,478
Accounts Receivable [Member] \| U.S. Government [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk percentage	89.00%	83.00%
Billed [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, net	$ 118,918	$ 90,439
Unbilled [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, net	24,735	$ 48,039
Decrease in unbilled accounts receivable	$ (23,300)

Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Inventories [Abstract]
Raw materials and supplies	$ 36,069	$ 30,687
Work-in-process	76,610	19,821
Finished goods	30,133	23,494
Total inventories	$ 142,812	$ 74,002

Property, plant and equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 539,584	$ 488,004
Less: Accumulated depreciation and amortization	(132,374)	(111,556)
Total Property, plant and equipment, net	407,210	376,448
Depreciation and amortization	32,242	28,023	$ 23,737
Land and Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	21,843	20,340
Buildings, Building Improvements and Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	160,005	147,130
Furniture and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	206,819	190,157
Software [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	50,829	52,564
Construction-in-progress [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 100,088	$ 77,813

Intangible assets and goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cost Basis [Abstract]
Intangible Assets, Beginning Balance	$ 57,099
Additions	94,304
Intangible Assets, Ending Balance	151,403	$ 57,099
Accumulated Amortization [Abstract]
Accumulated Amortization, Beginning Balance	(23,234)
Amortization	8,572	6,893	$ 7,376
Accumulated Amortization, Ending balance	(31,806)	(23,234)
Net book value of intangible assets	$ 119,597
Intangible assets, weighted average useful life	105 months
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract]
2018	$ 15,647
2019	15,168
2020	15,087
2021	13,596
2022 and beyond	60,099
Net book value of intangible assets	119,597
Goodwill, Cost Basis [Abstract]
Goodwill, Beginning Balance	41,001
Goodwill, Additions	8,129
Goodwill, Ending Balance	49,130	41,001
Therapeutics and Vaccines [Member]
Goodwill, Cost Basis [Abstract]
Goodwill, Beginning Balance	24,349
Goodwill, Additions	8,129
Goodwill, Ending Balance	32,478	24,349
Contract Manufacturing [Member]
Goodwill, Cost Basis [Abstract]
Goodwill, Beginning Balance	6,736
Goodwill, Additions	0
Goodwill, Ending Balance	6,736	6,736
Medical Devices [Member]
Goodwill, Cost Basis [Abstract]
Goodwill, Beginning Balance	9,916
Goodwill, Additions	0
Goodwill, Ending Balance	$ 9,916	$ 9,916

Long-term debt (Details) $ / shares in Units, $ in Millions				1 Months Ended		12 Months Ended
Long-term debt (Details) $ / shares in Units, $ in Millions	Nov. 14, 2017 USD ($) shares	Aug. 12, 2016 shares $ / shares	Dec. 11, 2013	Dec. 28, 2017 USD ($) shares	Jan. 29, 2014 USD ($) shares $ / shares	Dec. 31, 2017 USD ($) Institution
Long-Term Debt [Line Items]
Interest rate percentage						2.875%
Debt instrument amortization period					7 years
Letter of credit, outstanding amount						$ 1.0
Eurocurrency [Member]
Long-Term Debt [Line Items]
Debt instrument, basis spread on variable rate						1.00%
Eurocurrency [Member] \| Minimum [Member]
Long-Term Debt [Line Items]
Debt instrument, basis spread on variable rate						1.50%
Eurocurrency [Member] \| Maximum [Member]
Long-Term Debt [Line Items]
Debt instrument, basis spread on variable rate						2.50%
Base Rate [Member] \| Minimum [Member]
Long-Term Debt [Line Items]
Debt instrument, basis spread on variable rate						0.50%
Base Rate [Member] \| Maximum [Member]
Long-Term Debt [Line Items]
Debt instrument, basis spread on variable rate						1.50%
Federal Funds Rate [Member]
Long-Term Debt [Line Items]
Debt instrument, basis spread on variable rate						0.50%
Revolving Credit Facility [Member]
Long-Term Debt [Line Items]
Outstanding credit facility						$ 0.0
BAML Revolving Credit Facility [Member]
Long-Term Debt [Line Items]
Maturity date			Dec. 11, 2018
Credit Agreement [Member]
Long-Term Debt [Line Items]
Maturity date						Sep. 29, 2022
Number of lending institutions \| Institution						4
Current borrowing capacity						$ 200.0
Borrowing capacity with accordion feature						100.0
Maximum borrowing capacity						$ 300.0
Debt covenant, consolidated debt service coverage ratio, minimum						2.50
Debt covenant, leverage ratio, maximum						3.50
Credit Agreement [Member] \| Minimum [Member]
Long-Term Debt [Line Items]
Commitment fee percentage						0.25%
Credit Agreement [Member] \| Maximum [Member]
Long-Term Debt [Line Items]
Commitment fee percentage						0.40%
Debt covenant, leverage ratio, maximum						4.00
2.875% Convertible Senior Notes Due 2021 [Member]
Long-Term Debt [Line Items]
Face amount of debt instrument	$ 250.0			$ 239.4	$ 250.0	$ 10.6
Interest rate percentage	2.875%				2.875%
Maturity date					Jan. 15, 2021
Conversion rate of notes per $1,000 principal amount (in shares) \| shares	32.386	32.3860		8.5	30.8821
Additional conversion rate of notes per $1,000 principal amount (in shares) \| shares	3.1556
Accrued interest on converted notes	$ 2.4
Conversion price per share (in dollars per share) \| $ / shares		$ 30.88			$ 32.38
Debt issuance costs				$ 3.6	$ 8.3

Stockholders' equity, Preferred stock and Common stock (Details) - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Preferred stock [Abstract]
Preferred stock, shares authorized (in shares)	15,000,000	15,000,000
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock [Abstract]
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, voting rights	1

Stockholders' equity, Stock options and restricted stock units (Details)	12 Months Ended
	Dec. 31, 2017 USD ($) Plan $ / shares shares	Dec. 31, 2016 USD ($) $ / shares shares	Dec. 31, 2015 USD ($) $ / shares	Jul. 14, 2016 USD ($)
Aggregate intrinsic value [Abstract]
Weighted average period expected to be recognized related to unvested equity awards	2 years
Compensation cost expected to be recognized related to unvested equity awards	$ 17,900,000
Authorized amount for the repurchase program				$ 50,000,000
Repurchased common stock (in shares) \| shares	800,000
Repurchased common stock	$ 33,077,000	$ 0	$ 100,000
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	15,213,000	18,477,000	15,848,000
Continuing Operations [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	15,213,000	17,356,000	14,741,000
Discontinued Operations [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 0	$ 1,121,000	$ 1,107,000
Stock Options [Member]
Aggregate intrinsic value [Abstract]
Weighted average remaining contractual term of options outstanding	4 years	4 years
Weighted average remaining contractual term of options exercisable	3 years 2 months 12 days	3 years 2 months 12 days
Weighted average grant date fair value of options granted (in dollars per share) \| $ / shares	$ 10.53	$ 9.24	$ 8.66
Total intrinsic value of options exercised	$ 13,900,000	$ 15,600,000	$ 20,200,000
Total fair value of awards vested	$ 17,900,000	$ 16,900,000	14,400,000
2006 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of equity award plans \| Plan	1
2006 Plan [Member] \| Stock Options [Member]
Options outstanding [Roll Forward]
Outstanding, beginning of period (in shares) \| shares	2,559,331
Granted (in shares) \| shares	427,821
Exercised (in shares) \| shares	(792,795)
Forfeited (in shares) \| shares	(72,952)
Outstanding, end of period (in shares) \| shares	2,121,405	2,559,331
Exercisable, end of period (in shares) \| shares	1,307,330
Options expected to vest, end of period (in shares) \| shares	632,954
Weighted-Average Exercise Price [Roll Forward]
Outstanding, beginning of period (in dollars per share) \| $ / shares	$ 22.94
Granted (in dollars per share) \| $ / shares	31.13
Exercised (in dollars per share) \| $ / shares	19.95
Forfeited (in dollars per share) \| $ / shares	29.30
Outstanding, end of period (in dollars per share) \| $ / shares	25.48	$ 22.94
Exercisable, end of period (in dollars per share) \| $ / shares	22.63
Options expected to vest, end of period (in dollars per share) \| $ / shares	$ 29.91
Aggregate Intrinsic Value [Abstract]
Outstanding, beginning of period	$ 25,348,245
Outstanding, end of period	44,518,585	$ 25,348,245
Exercisable, end of period	31,170,967
Options expected to vest, end of period	$ 10,480,716
2006 Plan [Member] \| Restricted Stock Units (RSUs) [Member]
Restricted stock unit award activity [Roll Forward]
Outstanding, beginning of period (in shares) \| shares	875,584
Granted (in shares) \| shares	480,959
Vested (in shares) \| shares	(423,840)
Forfeited (in shares) \| shares	(80,983)
Outstanding, end of period (in shares) \| shares	851,720	875,584
Weighted-Average Grant Price [Roll Forward]
Outstanding, beginning of period (in dollars per share) \| $ / shares	$ 28.94
Granted (in dollars per share) \| $ / shares	31.49
Vested (in dollars per share) \| $ / shares	30.52
Forfeited (in dollars per share) \| $ / shares	29.21
Outstanding, end of period (in dollars per share) \| $ / shares	$ 30.84	$ 28.94
Aggregate intrinsic value [Abstract]
Outstanding, beginning of period	$ 28,754,179
Outstanding, end of period	$ 39,579,428	$ 28,754,179
2004 Plan [Member] \| Stock Options [Member]
Options outstanding [Roll Forward]
Options expected to vest, end of period (in shares) \| shares	0
Weighted-Average Exercise Price [Roll Forward]
Options expected to vest, end of period (in dollars per share) \| $ / shares	$ 0
Cost of Product Sales [Member] \| Continuing Operations [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 1,076,000	997,000	1,183,000
Research and Development [Member] \| Continuing Operations [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	2,526,000	2,297,000	2,324,000
Selling, General and Administrative [Member] \| Continuing Operations [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 11,611,000	$ 14,062,000	$ 11,234,000

Income taxes, Components of the provisions for income taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Line Items]
Federal corporate tax rate		35.00%
Provisional tax benefit		$ (13,400)
Estimated undistributed foreign E&P		95,400
Provisional tax expense		$ 13,600
U.S. federal cash taxes on deemed mandatory repatriation period		8 years
Current [Abstract]
Federal		$ 29,441	$ 29,244	$ 38,957
State		2,983	2,331	2,221
International		356	1,002	2,029
Total current		32,780	32,577	43,207
Deferred [Abstract]
Federal		(6,045)	9,979	(119)
State		(592)	(272)	(111)
International		9,896	(5,587)	1,323
Total deferred		3,259	4,120	1,093
Total provision for income taxes		$ 36,039	$ 36,697	$ 44,300
Forecast [Member]
Income Tax Disclosure [Line Items]
Federal corporate tax rate	21.00%

Income taxes, Net deferred tax asset (liability) and tax credit carryforwards (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Net deferred tax asset (liability) [Abstract]
Federal losses carryforward	$ 1,603	$ 4,130
State losses carryforward	17,234	13,682
Research and development carryforward	3,534	3,647
Scientific research and experimental development credit carryforward	16,493	16,594
Stock compensation	5,344	8,389
Foreign deferrals	34,072	58,647
Inventory reserves	1,607	2,273
Other	3,889	5,569
Deferred tax asset	83,776	112,931
Fixed assets	(23,121)	(30,728)
Intangible assets	(2,229)	(5,882)
Other	(10,451)	(16,047)
Deferred tax liability	(35,801)	(52,657)
Valuation allowance	(45,141)	(54,178)
Net deferred tax (liabilities)/ asset	2,834	6,096
Operating Loss Carryforwards [Line Items]
Deferred tax assets, valuation allowance	45,141	54,178
Research and Development Tax Credit [Member]
Tax Credit Carryforward [Line Items]
Tax credit carryforward, amount	$ 3,500
Tax credit carryforwards, expiration date	Dec. 31, 2024
Manitoba Scientific Research And Experimental Development [Member]
Tax Credit Carryforward [Line Items]
Tax credit carryforward, amount	$ 16,500
Tax credit carryforwards, expiration date	Dec. 31, 2025
U.S. Federal Tax Authority [Member]
Net deferred tax asset (liability) [Abstract]
Valuation allowance	$ 0
Operating Loss Carryforwards [Line Items]
Deferred tax liabilities, net	(13,100)	(18,300)
Net operating loss carryforwards	$ 7,600
Operating loss carryforwards, expiration year	Dec. 31, 2027
Deferred tax assets, valuation allowance	$ 0
State and Local Jurisdiction [Member]
Net deferred tax asset (liability) [Abstract]
Valuation allowance	(193,500)
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	264,100
Deferred tax assets, valuation allowance	193,500
Foreign Tax Authority [Member]
Operating Loss Carryforwards [Line Items]
Deferred tax assets, net	15,900	$ 24,400
Net operating loss carryforwards	$ 168,700
Period of change in the nature or conduct of business following change in ownership	3 years
U.S. Federal Tax Authority - Tax Effected [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	$ 1,600
State and Local Jurisdiction - Tax Effected [Member]
Net deferred tax asset (liability) [Abstract]
Valuation allowance	(12,600)
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	17,200
Deferred tax assets, valuation allowance	12,600
Canadian Federal Gross [Member]
Net deferred tax asset (liability) [Abstract]
Valuation allowance	(41,800)
Operating Loss Carryforwards [Line Items]
Deferred tax assets, valuation allowance	41,800
Canadian Federal Tax Effected [Member]
Net deferred tax asset (liability) [Abstract]
Valuation allowance	(11,300)
Operating Loss Carryforwards [Line Items]
Deferred tax assets, valuation allowance	11,300
Foreign Tax Authority Tax Effected Excluding Canada [Member]
Net deferred tax asset (liability) [Abstract]
Valuation allowance	(32,500)
Operating Loss Carryforwards [Line Items]
Deferred tax assets, valuation allowance	32,500
Foreign Tax Authority Tax Effected [Member]
Net deferred tax asset (liability) [Abstract]
Valuation allowance	(32,500)
Operating Loss Carryforwards [Line Items]
Deferred tax assets, valuation allowance	$ 32,500

Income taxes, Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income tax reconciliation [Abstract]
US		$ 80,690	$ 63,330	$ 117,385
International		37,943	35,891	18,331
Earnings before taxes on income		118,633	99,221	135,716
Federal tax at statutory rates		41,522	34,738	47,475
State taxes, net of federal benefit		1,274	529	852
Impact of foreign operations		(2,168)	(9,937)	(1,640)
Change in valuation allowance		314	10,458	(950)
Tax credits		(1,918)	(1,572)	(2,088)
Transition Tax		13,585	0	0
Change in U.S. Tax Rate		(13,403)	0	0
Stock Compensation		(3,978)	0	0
Other differences		(118)	1,103	733
Permanent differences		929	1,378	(82)
Total provision for income taxes		$ 36,039	$ 36,697	$ 44,300
Income Tax Disclosure [Line Items]
Effective annual tax rate		30.00%	37.00%	33.00%
Provisional tax benefit		$ (13,400)
Provisional tax expense		$ 13,600
Federal corporate tax rate		35.00%
Forecast [Member]
Income Tax Disclosure [Line Items]
Federal corporate tax rate	21.00%

Income taxes, Unrecognized tax benefits (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Tax Contingency [Line Items]
Unrecognized tax benefits, current	$ 800,000	$ 500,000
Unrecognized tax benefits, noncurrent	1,200,000	1,300,000
Gross unrecognized tax benefits activity [Roll Forward]
Gross unrecognized tax benefits, beginning balance	1,761,000	1,457,000	$ 1,248,000
Increases for tax positions for prior years	0	5,000	150,000
Decreases for tax positions for prior years	0	0	0
Increases for tax positions for current year	531,000	299,000	59,000
Settlements	(318,000)	0	0
Lapse of statute of limitations	0	0	0
Gross unrecognized tax benefits, ending balance	$ 1,974,000	$ 1,761,000	$ 1,457,000
U.S. Federal Tax Authority [Member] \| Minimum [Member]
Gross unrecognized tax benefits activity [Roll Forward]
Open tax year	2013
Federal income tax year selected for audit	2011
U.S. Federal Tax Authority [Member] \| Maximum [Member]
Gross unrecognized tax benefits activity [Roll Forward]
Open tax year	2016
Federal income tax year selected for audit	2012
United Kingdom Tax Authority [Member] \| Minimum [Member]
Gross unrecognized tax benefits activity [Roll Forward]
Open tax year	2008
United Kingdom Tax Authority [Member] \| Maximum [Member]
Gross unrecognized tax benefits activity [Roll Forward]
Open tax year	2016
Canada Revenue Agency [Member] \| Minimum [Member]
Gross unrecognized tax benefits activity [Roll Forward]
Open tax year	2010
Canada Revenue Agency [Member] \| Maximum [Member]
Gross unrecognized tax benefits activity [Roll Forward]
Open tax year	2016

401(k) savings plan (Details) - USD ($) $ in Millions	12 Months Ended
401(k) savings plan (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
401(k) savings plan [Abstract]
Matching of qualified deferrals by employer, maximum	50.00%
Percentage of employee's gross salary subject to employer's matching contribution	6.00%
Matching contributions made by employer	$ 2.7	$ 2.5	$ 2.2

Leases (Details) - USD ($) $ in Thousands	12 Months Ended
Leases (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Operating Leased Assets [Line Items]
Total lease expense	$ 1,600	$ 1,400	$ 1,300
Future minimum lease payments under operating lease [Abstract]
2017	1,626
2018	1,391
2019	1,339
2020	1,343
2021	1,346
2022 and beyond	3,685
Total minimum lease payments	$ 10,730
Fill/Finish Space - Rockville [Member]
Operating Leased Assets [Line Items]
Operating lease expiration date	May 31, 2027
Office and Warehouse Space - Baltimore [Member]
Operating Leased Assets [Line Items]
Operating lease expiration date	Jul. 31, 2027
Annual escalation percentage	2.75%
Office and Warehouse Space - Canton [Member]
Operating Leased Assets [Line Items]
Operating lease expiration date	Apr. 30, 2023
Annual escalation percentage	3.00%
Office Space - Washington, DC [Member]
Operating Leased Assets [Line Items]
Operating lease expiration date	Mar. 31, 2027
Annual escalation percentage	2.50%

Related party transactions (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Related Party Transaction [Line Items]
Costs incurred from services rendered under marketing/consulting agreement	$ 0.2
Expenses incurred under agreement	$ 0.0	$ 0.0	$ 0.0
Saudi Arabia [Member]
Related Party Transaction [Line Items]
Percentage of net sales of biodefense products subject to payment to related party	17.50%
Qatar [Member]
Related Party Transaction [Line Items]
Percentage of net sales of biodefense products subject to payment to related party	15.00%
United Arab Emirates [Member]
Related Party Transaction [Line Items]
Percentage of net sales of biodefense products subject to payment to related party	15.00%

Earnings per share (Details) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2017

Sep. 30, 2017

Jun. 30, 2017

Mar. 31, 2017

Dec. 31, 2016

Sep. 30, 2016

Jun. 30, 2016

Mar. 31, 2016

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Numerator [Abstract]

Net Income from continuing operations

$ 33,942

$ 33,551

$ 4,616

$ 10,485

$ 32,289

$ 20,388

$ (2,042)

$ 11,889

$ 82,594

$ 62,524

$ 91,416

Interest expense, net of tax

2,606

3,255

3,019

Amortization of debt issuance costs, net of tax

681

781

868

Net income, adjusted from continuing operations

85,881

66,560

95,303

Net loss from discontinued operations

$ 5,103

^[1]

$ 952

^[1]

$ (8,905)

^[1]

$ (7,898)

^[1]

(10,748)

(28,546)

Net income, adjusted

$ 85,881

$ 55,812

$ 66,757

Denominator [Abstract]

Weighted-average number of shares-basic (in shares)

41,816,431

40,184,159

38,595,435

Dilutive securities-equity awards (in shares)

1,115,244

1,054,453

939,882

Dilutive securities-convertible debt (in shares)

7,396,262

8,096,500

7,720,525

Weighted-average number of shares-diluted (in shares)

50,327,937

49,335,112

47,255,842

Net income per share from continuing operations-basic (in dollars per share)

$ 0.77

$ 0.81

$ 0.11

$ 0.26

$ 0.80

$ 0.50

$ (0.05)

$ 0.30

$ 1.98

$ 1.56

$ 2.37

Net loss per share from discontinued operations-basic (in dollars per share)

0.13

0.02

(0.22)

(0.20)

(0.27)

(0.74)

Net income per share-basic (in dollars per share)

0.93

0.52

(0.27)

0.10

1.98

1.29

1.63

Net income per share-diluted from continuing operations (in dollars per share)

$ 0.67

$ 0.68

$ 0.11

$ 0.23

0.67

0.43

(0.05)

0.26

1.71

1.35

2.02

Net loss per share-diluted from discontinued operations (in dollars per share)

0.10

0.02

(0.22)

(0.16)

(0.22)

(0.61)

Net income per share-diluted (in dollars per share)

$ 0.77

$ 0.45

$ (0.27)

$ 0.10

$ 1.71

^[2]

$ 1.13

^[2]

$ 1.41

^[2]

Stock Options [Member]

Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]

Antidilutive shares excluded from calculation (in shares)

1,400,000

[1]	Reflects a change in estimate attributed to higher pretax income within continuing operations. According to the ordering rules of intraperiod tax allocation, the residual amount of change after determining the effective rate for continuing operations is allocated to discontinued operations.
[2]	See "Earnings per share" footnote for details on calculation.

Restructuring (Details) $ in Thousands	3 Months Ended	12 Months Ended	16 Months Ended
Restructuring (Details) $ in Thousands	Sep. 30, 2016 USD ($) Facility	Dec. 31, 2017 USD ($)	Dec. 31, 2017 USD ($)
Summary of activity for liabilities [Roll Forward]
Number of facilities \| Facility	1
Selling, General and Administrative Expenses [Member]
Summary of activity for liabilities [Roll Forward]
Abandonment of equipment charge	$ 3,700
EBOL Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Incurred costs		$ 40	$ 9,726
Termination Benefits [Member]
Summary of activity for liabilities [Roll Forward]
Balance, beginning of period		4,357
Expenses incurred		40
Amount paid		(4,387)
Balance, end of period		10	10
Termination Benefits [Member] \| EBOL Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Incurred costs		40	5,286
Abandonment of Equipment [Member] \| EBOL Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Incurred costs		0	3,749
Other Costs [Member] \| EBOL Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Incurred costs		$ 0	$ 691

Segment information (Details) $ in Thousands	12 Months Ended
Segment information (Details) $ in Thousands	Dec. 31, 2017 USD ($) Segment	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Aug. 06, 2015 Segment
Segment Reporting Information [Line Items]
Number of independent publicly-traded companies \| Segment				2
Number of business segments \| Segment	1
Long-lived assets \| $	$ 1,070,206	$ 970,111
Revenue [Member] \| United States [Member]
Segment Reporting Information [Line Items]
Concentration risk percentage	89.00%	94.00%	96.00%
Revenue [Member] \| Biothrax [Member]
Segment Reporting Information [Line Items]
Concentration risk percentage	67.00%	80.00%	89.00%
Foreign Jurisdictions [Member]
Segment Reporting Information [Line Items]
Long-lived assets \| $		$ 28,600	$ 28,400

Quarterly financial data (unaudited) (Details) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2017

Sep. 30, 2017

Jun. 30, 2017

Mar. 31, 2017

Dec. 31, 2016

Sep. 30, 2016

Jun. 30, 2016

Mar. 31, 2016

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Quarterly financial data (unaudited) [Abstract]

Revenue

$ 193,809

$ 149,434

$ 100,772

$ 116,858

$ 151,663

$ 142,914

$ 91,241

$ 102,964

$ 560,873

$ 488,782

$ 489,331

Income (loss) from operations

53,077

47,769

8,529

14,910

50,929

35,478

(2,042)

21,157

Net income from continuing operations

$ 33,942

$ 33,551

$ 4,616

$ 10,485

32,289

20,388

(2,042)

11,889

82,594

62,524

91,416

Net loss from discontinued operations

5,103

^[1]

952

^[1]

(8,905)

^[1]

(7,898)

^[1]

$ 0

$ (10,748)

$ (28,546)

Net income (loss)

$ 37,392

$ 21,340

$ (10,947)

$ 3,991

Net income (loss) per share from continuing operations-basic (in dollars per share)

$ 0.77

$ 0.81

$ 0.11

$ 0.26

$ 0.80

$ 0.50

$ (0.05)

$ 0.30

$ 1.98

$ 1.56

$ 2.37

Net loss per share from discontinued operations-basic (in dollars per share)

0.13

0.02

(0.22)

(0.20)

(0.27)

(0.74)

Net income per share-basic (in dollars per share)

0.93

0.52

(0.27)

0.10

1.98

1.29

1.63

Net income per share from continuing operations-diluted (in dollars per share)

$ 0.67

$ 0.68

$ 0.11

$ 0.23

0.67

0.43

(0.05)

0.26

1.71

1.35

2.02

Net income (loss) per share from discontinued operations-diluted (in dollars per share)

0.10

0.02

(0.22)

(0.16)

(0.22)

(0.61)

Net income per share-diluted (in dollars per share)

$ 0.77

$ 0.45

$ (0.27)

$ 0.10

$ 1.71

^[2]

$ 1.13

^[2]

$ 1.41

^[2]

[1]	Reflects a change in estimate attributed to higher pretax income within continuing operations. According to the ordering rules of intraperiod tax allocation, the residual amount of change after determining the effective rate for continuing operations is allocated to discontinued operations.
[2]	See "Earnings per share" footnote for details on calculation.

Litigation (Details)	Jul. 19, 2016
Litigation [Abstract]
Term of procurement contract	5 years

Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Inventory Allowance [Member]
Movement in Valuation Allowances and Reserves [Roll Forward]
Beginning Balance	$ 3,535	$ 1,637	$ 1,314
Charged to costs and expenses	8,846	9,950	6,258
Deductions	(8,532)	(8,052)	(5,935)
Ending Balance	3,849	3,535	1,637
Prepaid Expenses and Other Current Assets Allowance [Member]
Movement in Valuation Allowances and Reserves [Roll Forward]
Beginning Balance	4,868	1,981	1,885
Charged to costs and expenses	466	2,887	96
Deductions	0	0	0
Ending Balance	$ 5,334	$ 4,868	$ 1,981