0001367644
2018-01-01
2018-06-30
0001367644
2018-07-27
0001367644
2017-12-31
0001367644
2018-06-30
0001367644
us-gaap:ProductMember
2018-04-01
2018-06-30
0001367644
2018-04-01
2018-06-30
0001367644
2017-04-01
2017-06-30
0001367644
2017-01-01
2017-06-30
0001367644
us-gaap:ProductMember
2018-01-01
2018-06-30
0001367644
ebs:ContractManufacturingMember
2017-04-01
2017-06-30
0001367644
ebs:ContractManufacturingMember
2017-01-01
2017-06-30
0001367644
ebs:ContractManufacturingMember
2018-04-01
2018-06-30
0001367644
ebs:ContractManufacturingMember
2018-01-01
2018-06-30
0001367644
ebs:ContractsAndGrantsMember
2018-01-01
2018-06-30
0001367644
ebs:ContractsAndGrantsMember
2018-04-01
2018-06-30
0001367644
ebs:ContractsAndGrantsMember
2017-04-01
2017-06-30
0001367644
ebs:ContractsAndGrantsMember
2017-01-01
2017-06-30
0001367644
us-gaap:ProductMember
2017-04-01
2017-06-30
0001367644
us-gaap:ProductMember
2017-01-01
2017-06-30
0001367644
2016-12-31
0001367644
2017-06-30
0001367644
us-gaap:TreasuryStockMember
2017-12-31
0001367644
us-gaap:RetainedEarningsMember
us-gaap:AccountingStandardsUpdate201409Member
2017-12-31
0001367644
us-gaap:RetainedEarningsMember
2017-12-31
0001367644
us-gaap:AccountingStandardsUpdate201409Member
us-gaap:TreasuryStockMember
2017-12-31
0001367644
us-gaap:AccumulatedOtherComprehensiveIncomeMember
us-gaap:AccountingStandardsUpdate201409Member
2017-12-31
0001367644
us-gaap:AccountingStandardsUpdate201409Member
2017-12-31
0001367644
us-gaap:AdditionalPaidInCapitalMember
2017-12-31
0001367644
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2017-12-31
0001367644
us-gaap:CommonStockMember
2017-12-31
0001367644
us-gaap:AccountingStandardsUpdate201409Member
us-gaap:AdditionalPaidInCapitalMember
2017-12-31
0001367644
us-gaap:AccountingStandardsUpdate201409Member
us-gaap:CommonStockMember
2017-12-31
0001367644
us-gaap:AdditionalPaidInCapitalMember
2018-01-01
2018-06-30
0001367644
us-gaap:CommonStockMember
2018-01-01
2018-06-30
0001367644
us-gaap:TreasuryStockMember
2018-01-01
2018-06-30
0001367644
us-gaap:RetainedEarningsMember
2018-01-01
2018-06-30
0001367644
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2018-01-01
2018-06-30
0001367644
us-gaap:AdditionalPaidInCapitalMember
2018-06-30
0001367644
us-gaap:CommonStockMember
2018-06-30
0001367644
us-gaap:TreasuryStockMember
2018-06-30
0001367644
us-gaap:RetainedEarningsMember
2018-06-30
0001367644
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2018-06-30
0001367644
us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member
ebs:CIADMMember
us-gaap:AccountingStandardsUpdate201409Member
2017-12-31
0001367644
ebs:CIADMMember
2018-01-01
2018-06-30
0001367644
us-gaap:CalculatedUnderRevenueGuidanceInEffectBeforeTopic606Member
2017-12-31
0001367644
us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member
us-gaap:AccountingStandardsUpdate201409Member
2017-12-31
0001367644
ebs:ContractsAndGrantsMember
country:US
2018-04-01
2018-06-30
0001367644
us-gaap:NonUsMember
2018-01-01
2018-06-30
0001367644
country:US
2018-01-01
2018-06-30
0001367644
ebs:ContractManufacturingMember
country:US
2018-01-01
2018-06-30
0001367644
us-gaap:ProductMember
us-gaap:NonUsMember
2018-01-01
2018-06-30
0001367644
ebs:ContractManufacturingMember
us-gaap:NonUsMember
2018-01-01
2018-06-30
0001367644
country:US
ebs:ContractsAndGrantsMember
2018-01-01
2018-06-30
0001367644
country:US
2018-04-01
2018-06-30
0001367644
us-gaap:NonUsMember
2018-04-01
2018-06-30
0001367644
us-gaap:NonUsMember
ebs:ContractManufacturingMember
2018-04-01
2018-06-30
0001367644
ebs:ContractsAndGrantsMember
us-gaap:NonUsMember
2018-01-01
2018-06-30
0001367644
us-gaap:ProductMember
country:US
2018-04-01
2018-06-30
0001367644
ebs:ContractsAndGrantsMember
us-gaap:NonUsMember
2018-04-01
2018-06-30
0001367644
us-gaap:ProductMember
country:US
2018-01-01
2018-06-30
0001367644
us-gaap:NonUsMember
us-gaap:ProductMember
2018-04-01
2018-06-30
0001367644
ebs:ContractManufacturingMember
country:US
2018-04-01
2018-06-30
0001367644
2018-04-01
2018-06-30
0001367644
ebs:ACAM2000Member
2017-10-06
2017-10-06
0001367644
ebs:ACAM2000Member
2017-10-06
0001367644
ebs:ACAM2000Member
2017-12-31
0001367644
ebs:SanofiMember
2017-10-06
2017-10-06
0001367644
ebs:SanofiMember
2017-10-06
0001367644
ebs:ACAM2000Member
us-gaap:MeasurementInputDiscountRateMember
2017-10-06
2017-10-06
0001367644
ebs:RsdlMember
2017-04-01
2017-06-30
0001367644
ebs:RsdlMember
2018-04-01
2018-06-30
0001367644
ebs:RsdlMember
2017-01-01
2017-06-30
0001367644
ebs:RsdlMember
2018-01-01
2018-06-30
0001367644
us-gaap:BuildingAndBuildingImprovementsMember
2018-06-30
0001367644
us-gaap:FurnitureAndFixturesMember
2018-06-30
0001367644
us-gaap:ConstructionInProgressMember
2018-06-30
0001367644
us-gaap:BuildingAndBuildingImprovementsMember
2017-12-31
0001367644
us-gaap:ComputerSoftwareIntangibleAssetMember
2017-12-31
0001367644
us-gaap:FurnitureAndFixturesMember
2017-12-31
0001367644
us-gaap:LandAndLandImprovementsMember
2018-06-30
0001367644
us-gaap:LandAndLandImprovementsMember
2017-12-31
0001367644
us-gaap:ComputerSoftwareIntangibleAssetMember
2018-06-30
0001367644
us-gaap:ConstructionInProgressMember
2017-12-31
0001367644
us-gaap:EmployeeStockOptionMember
ebs:EmergentBiosolutionsInc2006StockIncentivePlanMember
2018-01-01
2018-06-30
0001367644
ebs:EmergentBiosolutionsInc2006StockIncentivePlanMember
us-gaap:RestrictedStockUnitsRSUMember
2018-01-01
2018-06-30
0001367644
ebs:EmergentBiosolutionsInc2006StockIncentivePlanMember
2018-06-30
0001367644
ebs:EmergentBiosolutionsInc2006StockIncentivePlanMember
2018-05-24
2018-05-24
0001367644
ebs:EmergentBiosolutionsInc2006StockIncentivePlanMember
2018-05-24
0001367644
2017-01-01
2017-12-31
0001367644
us-gaap:EmployeeStockOptionMember
2017-06-30
0001367644
us-gaap:StockCompensationPlanMember
2017-04-01
2017-06-30
0001367644
us-gaap:StockCompensationPlanMember
2017-01-01
2017-06-30
xbrli:shares
iso4217:USD
iso4217:USD
xbrli:shares
ebs:Period
ebs:Segment
xbrli:pure
ebs:Installment
false
--12-31
2018-06-30
Yes
No
Yes
Large Accelerated Filer
Emergent BioSolutions Inc.
0001367644
50019935
2018
Q2
10-Q
41629000
41751000
143653000
189489000
4831000
10552000
12500000
12500000
152575000
132374000
-4415000
-3698000
P8Y3M18D
632569000
618416000
7800000
3100000
3900000
1600000
400000
400000
1070206000
1138891000
541308000
485389000
16700000
119700000
2200000
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: left; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">3.</font> <font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Acquisitions</font></div><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div><div style="text-align: left; text-indent: 18pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; font-style: italic;">Acquisition of ACAM2000 business</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">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 included 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 under the terms expired in March 2018. This contract had a stated value of 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 <font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">U.S. Strategic National Stockpile ("SNS")</font> and the establishment of U.S.-based manufacturing of ACAM2000. <font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">This acquisition added to the Company's product portfolio and expanded the Company's manufacturing capabilities.</font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">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 included 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 was 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 were preliminarily recorded as of October 6, 2017, the acquisition date, at their respective fair values, and combined with those of the Company.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">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 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 (Level 3).</div><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">The total purchase price is summarized below:</div><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">(in thousands)</font> </div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"> </td><td colspan="2" valign="bottom" style="vertical-align: middle; border-bottom: #000000 solid 2px;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; border-bottom: #000000 solid 2px;"> </td></tr><tr><td valign="bottom" style="vertical-align: middle; width: 88%; background-color: #CCEEFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Amount of cash paid to Sanofi</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">117,500</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: middle; width: 88%; padding-bottom: 2px; background-color: #FFFFFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Fair value of contingent purchase consideration</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2,200</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: middle; width: 88%; padding-bottom: 4px; background-color: #CCEEFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Total purchase price</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">119,700</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;"> </td></tr></table><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">The table below summarizes the preliminary allocation of the purchase price based upon estimated fair values of assets acquired at October 6, 2017. The Company did not assume any liabilities in the acquisition. This preliminary allocation is based upon the finalization of valuation reports and as management gathers additional information on the acquired assets.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">(in thousands)</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; border-bottom: #000000 solid 2px;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Fair value of tangible assets acquired:</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 88%; background-color: #CCEEFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Inventory</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">74,876</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 88%; padding-bottom: 2px; background-color: #FFFFFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Property, plant and equipment</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">19,995</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 88%; background-color: #CCEEFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Total fair value of tangible assets acquired</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">94,871</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 88%; background-color: #FFFFFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;"> </div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 88%; background-color: #CCEEFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Acquired intangible asset</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">16,700</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 88%; padding-bottom: 2px; background-color: #FFFFFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Goodwill</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">8,129</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 88%; padding-bottom: 4px; background-color: #CCEEFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Total purchase price</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">119,700</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;"> </td></tr></table><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">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%; this discount rate is derived from the estimated weighted-average cost of capital for substantially similar companies and assets. 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 the 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.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">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 and dispose of the inventory with a profit on those costs.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">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 derived 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 is derived by the determination that 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.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">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.</div><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div></div>
94871000
74876000
19995000
44114000
11945000
178292000
190237000
179335000
271513000
191280000
315627000
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: justify; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">10. Purchase commitments</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">During the first quarter of 2018, the Company entered into a three year contract with Norwood Laboratories Inc. ("Norwood") to purchase approximately $12.0 million of raw materials related to the Company's RSDL product. As of June 30, 2018, the Company had not purchased any materials under this commitment.</div><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div></div>
200000000
200000000
0.001
0.001
51231814
50619808
50014528
49405365
-1214443
50619808
-1214443
50619808
-1217286
51231814
51000
50000
4844000
51309000
44519000
15913000
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Basis of presentation and consolidation</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">The accompanying unaudited condensed consolidated financial statements include the accounts of Emergent BioSolutions Inc. ("Emergent" or the "Company") and its wholly owned and majority owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The unaudited consolidated financial statements included herein have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X issued by the Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the SEC.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">In the opinion of the Company's management, any adjustments contained in the accompanying unaudited condensed consolidated financial statements are of a normal recurring nature and are necessary to present fairly the financial position of the Company as of June 30, 2018. Interim results are not necessarily indicative of results that may be expected for any other interim period or for an entire year.</div><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; font-style: italic;">Significant accounting policies</div><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">During the six months ended June 30, 2018, there have been no significant changes to the Company's summary of significant accounting policies contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the SEC, except for the new revenue recognition standard the Company adopted effective January 1, 2018. See Note 2. "Revenue recognition" for further details.</div><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div></div>
-15343000
63255000
17259000
42400000
30491000
72870000
42379000
73005000
13232000
9750000
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">When performance obligations are not transferred to a customer at the end of a reporting period, the amount allocated to those performance obligations are deferred until control of these performance obligations is transferred to the customer. The following table presents the rollforward of the contract liabilities,<font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"> </font>which is included in the Company's current and long-term deferred revenue line items in the condensed consolidated balance sheets:</div><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">(in thousands)</font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"> </font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; border-bottom: #000000 solid 2px;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 88%; background-color: #CCEEFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Balance at December 31, 2017</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">30,491</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 88%; padding-bottom: 2px; background-color: #FFFFFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Adoption of new accounting standard (ASC 606)</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">42,379</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 88%; background-color: #CCEEFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Balance at January 1, 2018</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">72,870</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 88%; background-color: #FFFFFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Deferral of revenue</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">15,478</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 88%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Recognition of revenue included in beginning of year contract liability</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(15,343</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</div></td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 88%; padding-bottom: 4px; background-color: #FFFFFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Balance at June 30, 2018</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">73,005</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td></tr></table><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div></div>
34624000
80946000
89173000
147217000
-32527000
-32527000
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">We operate in one business segment. Therefore, results of our operations are reported on a consolidated basis for purposes of segment reporting, consistent with internal management reporting.<font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"> </font>For the three and six months ended June 30, 2018, there was a nominal difference between revenues recognized under ASC 606 and revenues recognized based on the prior revenue recognition guidance for the same period. For the three and six months ended June 30, 2018, the Company's<font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"> </font>revenues disaggregated by the major sources was as follows:</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="text-align: left; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">(in thousands)</font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"> </font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="10" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Three Months Ended June 30, 2018</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="10" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Six Months Ended June 30, 2018</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom;"><div style="text-align: center; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">U.S </div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom;"><div style="text-align: center; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Non-U.S. </div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom;"><div style="text-align: center; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">U.S </div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom;"><div style="text-align: center; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Non-U.S. </div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Government</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Government</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Total</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Government</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Government</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Total</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 28%; background-color: #CCEEFF;"><div style="text-align: left; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Product sales</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">169,897</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">10,178</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">180,075</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">235,922</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">19,924</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">255,846</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 28%; background-color: #FFFFFF;"><div style="text-align: left; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Contract manufacturing</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">-</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">23,613</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">23,613</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">-</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">49,791</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">49,791</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 28%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="text-align: left; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Contracts and grants</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">15,250</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,262</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">16,512</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">30,055</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2,322</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">32,377</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 28%; padding-bottom: 4px; background-color: #FFFFFF;"><div style="text-align: left; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Total revenues</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">185,147</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">35,053</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">220,200</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">265,977</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">72,037</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">338,014</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td></tr></table><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div></div>
0.02875
3400000
2900000
8475000
4951000
2834000
12654000
9900000
20097000
24713000
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: justify; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">11. Earnings per share</div><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">The following table presents the calculation of basic and diluted net income per share:</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="6" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Three Months Ended June 30,</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="6" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Six Months Ended June 30,</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">(in thousands, except share and per share data)</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">2018</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">2017</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">2018</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">2017</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Numerator:</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #CCEEFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Net income</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">50,144</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">4,616</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">45,236</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">15,101</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #FFFFFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Interest expense on convertible debt, net of tax</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">-</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">835</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">-</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,742</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Amortization of convertible debt issuance costs, net of tax</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">-</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">195</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">-</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">391</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #FFFFFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Net income, adjusted</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">50,144</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">5,646</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">45,236</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">17,234</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #FFFFFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Denominator:</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Weighted-average number of shares—basic</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">49,896,124</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">41,013,764</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">49,738,980</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">40,871,540</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #FFFFFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Dilutive securities—equity awards</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,266,785</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">968,354</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,300,215</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">931,263</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Dilutive securities—convertible debt</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">-</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">8,096,476</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">-</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">8,096,488</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; padding-bottom: 2px; background-color: #FFFFFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Weighted-average number of shares—diluted</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">51,162,909</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">50,078,594</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">51,039,195</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">49,899,291</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #FFFFFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Net income per share - basic</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1.00</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.11</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.91</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.37</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #CCEEFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Net income per share - diluted</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.98</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.11</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.89</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.35</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td></tr></table><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div><div style="line-height: 0pt;"><br style="line-height: 0pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; margin-top: 3pt; margin-bottom: 3pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">For the three and six months ended June 30, 2018 and 2017, basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period.</div><div style="line-height: 10.25pt; margin-top: 3pt; margin-bottom: 3pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; margin-top: 3pt; margin-bottom: 3pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">For the three and six months ended June 30, 2018, diluted earnings per share was computed using the "treasury method" by dividing the net income by the weighted average number of shares of common stock outstanding during the period. The weighted average number of shares is adjusted for the potential dilutive effect of the exercise of stock options, and the vesting of restricted stock units and performance stock units.</div><div style="line-height: 10.25pt; margin-top: 3pt; margin-bottom: 3pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; margin-top: 3pt; margin-bottom: 3pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">For the three and six months ended June 30, 2017, diluted earnings per share is computed using the "if-converted" method by dividing the net income adjusted for interest expense and amortization of debt issuance cost, both net of tax, associated with the 2.875% Convertible Senior Notes due 2021 (the "Notes") by the weighted average number of shares of common stock outstanding during the period. The weighted average number of shares is adjusted for the potential dilutive effect of the exercise of stock options; and the vesting of restricted stock units and performance stock units along with the assumption of the conversion of the Notes, at the beginning of the period.</div><div style="line-height: 10.25pt; margin-top: 3pt; margin-bottom: 3pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; margin-top: 3pt; margin-bottom: 3pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">For the three and six months ended June 30, 2018, there were no stock options excluded from the calculation of diluted earnings per share. For the three and six months ended June 30, 2017, approximately 0.4 million stock options were excluded from the calculation of diluted earnings per share due to the fact that the exercise prices were in excess of the average per share closing price during the period.</div><div style="line-height: 10.25pt; margin-top: 3pt; margin-bottom: 3pt;"><br style="line-height: 10.25pt;" /></div></div>
0.11
1.00
0.37
0.91
0.98
0.11
0.89
0.35
-96000
-12000
0.21
0.35
0.31
0.25
37882000
29259000
3200000
1100000
1257000
12274000
12691000
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: left; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">4.</font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"> </font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Fair value measurements</font></div><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Contingent consideration consists of liabilities measured at fair value on a recurring basis. For the three and six months ended June 30, 2018, the contingent purchase consideration obligations associated with RSDL increased by $0.7 million and $1.6 million, respectively. During the three and six months ended June 30, 2017, the contingent purchase consideration obligations associated with RSDL increased by $0.2 million and $0.5 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.</div><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">The following table is a reconciliation of the beginning and ending balance of the liabilities, consisting only of contingent consideration, measured at fair value, using significant unobservable inputs (Level 3) during the six months ended June 30, 2018.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">(in thousands)</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; border-bottom: #000000 solid 2px;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 88%; background-color: #CCEEFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Balance at December 31, 2017</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">12,274</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 88%; background-color: #FFFFFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Expense included in earnings</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,674</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 88%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Settlements</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(1,257</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</div></td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 88%; padding-bottom: 4px; background-color: #FFFFFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Balance at June 30, 2018</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">12,691</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td></tr></table><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">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 June 30, 2018 and 2017 and for the quarters then ended, the Company had no significant assets or liabilities that were measured at fair value on a non-recurring basis.</div><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div></div>
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">The following table is a reconciliation of the beginning and ending balance of the liabilities, consisting only of contingent consideration, measured at fair value, using significant unobservable inputs (Level 3) during the six months ended June 30, 2018.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">(in thousands)</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; border-bottom: #000000 solid 2px;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 88%; background-color: #CCEEFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Balance at December 31, 2017</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">12,274</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 88%; background-color: #FFFFFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Expense included in earnings</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,674</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 88%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Settlements</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(1,257</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</div></td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 88%; padding-bottom: 4px; background-color: #FFFFFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Balance at June 30, 2018</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">12,691</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td></tr></table><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div></div>
1674000
P10Y
49130000
49130000
8129000
0
263000
6721000
65821000
56398000
20366000
2105000
15677000
11162000
5265000
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: justify; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">9. Income taxes</div><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">The estimated effective annual tax rate for the Company, which excludes discrete adjustments, was 25% and 31% for the six months ended June 30, 2018 and 2017, respectively. The decrease in the estimated effective annual tax rate is primarily due to the impact of the Tax Reform Act enacted on December 22, 2017 which reduced the U.S. federal corporate income tax rate from 35% to 21%</font>, offset by state taxes, non-deductible expenses, international provisions from the U.S. tax reform and the impact of a change in the Company's jurisdictional mix of earnings. <font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">For the six months ended June 30, 2018 and 2017, the Company recorded a discrete tax benefit primarily associated with equity awards activity of $3.2 million and $1.1 million, respectively.</font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 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. For the six months ended June 30, 2018, the Company did not change the provisional estimates recognized in 2017. Additional work is necessary for a more detailed analysis of the Company's deferred tax assets and liabilities and its historical foreign earnings as well as potential correlative adjustments. Any adjustment to these amounts will be recorded to current tax expense in the quarter of 2018 when the analysis is complete.</div><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div></div>
0
2432000
4616000
15101000
50144000
45236000
134000
17035000
-36160000
46251000
-4394000
4245000
-4386000
5607000
0
3239000
-3439000
-3473000
-8621000
-10194000
-276000
6120000
1266785
968354
931263
1300215
0
8096476
8096488
0
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: justify; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">7.</font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"> </font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Intangible assets</font></div><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;"> During the three months ended June 30, 2018 and 2017, the Company recorded amortization expense for intangible assets of $3.9 million and $1.6 million, respectively. During the six months ended June 30, 2018 and 2017, the Company recorded amortization expense for intangible assets of $7.8 million and $3.1 million, respectively. Amortization expense has been recorded in operating expenses, specifically selling, general and administrative and cost of product sales and contract manufacturing. As of June 30, 2018, the weighted average amortization period remaining for intangible assets was 8.3 years.</div><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div></div>
111773000
119597000
1805000
1008000
1242000
3743000
835000
0
0
1742000
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: left; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">5.</font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"> </font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Inventories</font></div><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Inventories consisted of the following:</div><div style="line-height: 13.7pt;"><br style="line-height: 13.7pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: top;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom;"><div style="text-align: center; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">June 30,</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom;"><div style="text-align: center; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">December 31,</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">(in thousands)</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">2018</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">2017</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #CCEEFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Raw materials and supplies</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">34,426</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">36,069</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #FFFFFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Work-in-process</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">79,546</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">76,610</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Finished goods</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">25,401</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">30,133</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 4px; background-color: #FFFFFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Total inventories</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">139,373</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">142,812</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td></tr></table><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div></div>
25401000
30133000
139373000
142812000
36069000
34426000
79546000
76610000
583000
306000
956000
528000
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: left; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">12. Litigation</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">On July 19, 2016, Plaintiff William Sponn ("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 (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 was heard on May 2, 2018. </font>On June 8, 2018 the Court granted class certification with a shortened class period, May 5, 2016 to June 21, 2016. <font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">The Defendants believe that the allegations in the complaint are without merit and intend to defend themselves vigorously against those claims.</font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;"> </font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">As of the date of this filing, the range of potential loss cannot be determined or estimated.</font></div><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="line-height: 0pt;"><br style="line-height: 0pt;" /></div><div style="line-height: 10.25pt; margin-top: 4.5pt;"><br style="line-height: 10.25pt;" /></div></div></div>
200545000
157861000
1138891000
1070206000
96813000
100068000
13457000
13482000
-21942000
1043000
-29605000
-22593000
95673000
33591000
50144000
4616000
45236000
15101000
45236000
32500000
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; font-style: italic;">Recently issued accounting standards</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><u>ASU No. 2018-07, </u></font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;"><u>Compensation-Stock Compensation (Topic 718):</u></font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><u> </u></font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;"><u>Improvements to Nonemployee Share-based Payment Accounting</u></font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">In June 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") No. 2018-07, <font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-based Payment Accounting </font>("ASU No. 2018-07"). ASU No. 2018-07 expands the scope of Topic 718 to include share-based payments issued to nonemployees for goods and services. ASU No. 2018-07 is intended to reduce cost and complexity and to improve financial reporting for share-based payments issued to nonemployees (for example, service providers, external legal counsel, suppliers, etc.). The standard will be effective after December 15, 2018 for the Company, with early adoption permitted, but no earlier than the Company's adoption date of Topic 606. The Company early adopted the new standard effective April 1, 2018. The adoption of this standard did not have a material impact on the Company's condensed consolidated financial statements.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><u>ASU No. 2017-09, </u></font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;"><u>Compensation-Stock Compensation (Topic 718):</u></font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><u> </u></font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;"><u>Scope of Modification Accounting</u></font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">In May 2017, the FASB issued ASU No. 2017-09, <font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting </font>("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 Company adopted the new standard effective January 1, 2018, which did not have a material impact on its condensed consolidated financial statements.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><u>ASU 2016-18, </u></font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;"><u>Restricted Cash (Topic 230): Statement of Cash Flows</u></font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">In November 2016, the FASB issued ASU No. 2016-18, <font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">Restricted Cash (Topic 230): Statement of Cash Flows </font>(<font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">"</font>ASU No. 2016-18"). ASU No. 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. Restricted cash and restricted cash equivalents will be included with cash and cash equivalents when reconciling the beginning of period and end of period balances on the statement of cash flows upon adoption of this standard. The Company adopted the new standard effective January 1, 2018. Restricted cash primarily consists of collateralized cash for a standby letter of credit and guarantee arrangement with a bank.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><u>ASU 2016-15,</u></font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;"><u> Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments</u></font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">In August 2016, the FASB issued ASU No. 2016-15, <font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments </font>(<font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">"</font>ASU No. 2016-15").  ASU No. 2016-15 eliminates the diversity in practice related to the classification of certain cash receipts and payments for debt prepayments or extinguishment costs, the maturing of a zero-coupon bond, the settlement of contingent liabilities arising from a business combination, proceeds from insurance settlements, distributions from certain equity method investees and beneficial interests obtained in a financial asset securitization. ASU No. 2016-15 designates the appropriate cash flow classification, including requirements to allocate certain components of these cash receipts and payments among operating, investing and financing activities. The Company adopted the new standard effective January 1, 2018 and has determined the impact of ASU No. 2016-15 on its condensed consolidated financial statements will be related to the settlement of contingent liabilities arising from a business combination.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><u>ASU 2016-02, </u></font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;"><u>Leases (Topic 842)</u></font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><u> </u></font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">In February 2016, the FASB issued ASU 2016-02,<font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;"> Leases (Topic 842)</font> (<font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">"</font>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's implementation efforts are primarily focused on the review of its existing lease contracts, identification of other contracts that may fall under the scope of the new guidance and performing a gap analysis on the current state of lease-related activities compared with the future state of lease-related activities. The Company has identified the lease agreements that will be impacted by the new standard and is currently evaluating the overall impact on its condensed consolidated financial statements and related disclosures.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: left; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">There are no other recently issued accounting pronouncements that are expected to have a material impact on the Company's financial position, results of operations or cash flows.</div><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div></div>
-1808000
-955000
-893000
-3073000
1
66776000
8529000
23439000
57291000
228000
1165000
-717000
812000
-717000
-464000
-966000
4869000
6046000
4675000
4656000
-586000
-253000
-179000
-286000
6020000
4059000
145000
83000
117500000
29605000
25217000
0.001
0.001
15000000
15000000
0
0
0
0
0
0
17157000
21166000
0
2624000
4605000
8465000
45236000
15101000
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: left; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">6. Property, plant and equipment</div><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Property, plant and equipment consisted of the following:</div><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: top;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom;"><div style="text-align: center; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">June 30,</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom;"><div style="text-align: center; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">December 31,</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">(in thousands)</font> </div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">2018</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">2017</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #CCEEFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Land and improvements</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">21,848</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">21,843</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #FFFFFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Buildings, building improvements and leasehold improvements</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">159,264</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">160,005</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #CCEEFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Furniture and equipment</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">213,445</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">206,819</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #FFFFFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Software</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">52,343</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">50,829</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Construction-in-progress</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">124,832</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">100,088</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #FFFFFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Property, plant and equipment, gross</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">571,732</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">539,584</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Less: Accumulated depreciation and amortization</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(152,575</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(132,374</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</div></td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 4px; background-color: #FFFFFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Total property, plant and equipment, net</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">419,157</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">407,210</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td></tr></table><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">In the table presented above, as of June 30, 2018 and December 31, 2017, construction-in-progress primarily includes costs related to construction of the Company's CIADM facility.</div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"></font><br style="line-height: 10.25pt;" /></div></div>
539584000
159264000
213445000
124832000
160005000
50829000
206819000
21848000
21843000
52343000
100088000
571732000
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Property, plant and equipment consisted of the following:</div><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: top;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom;"><div style="text-align: center; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">June 30,</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom;"><div style="text-align: center; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">December 31,</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">(in thousands)</font> </div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">2018</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">2017</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #CCEEFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Land and improvements</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">21,848</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">21,843</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #FFFFFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Buildings, building improvements and leasehold improvements</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">159,264</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">160,005</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #CCEEFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Furniture and equipment</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">213,445</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">206,819</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #FFFFFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Software</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">52,343</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">50,829</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Construction-in-progress</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">124,832</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">100,088</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #FFFFFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Property, plant and equipment, gross</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">571,732</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">539,584</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Less: Accumulated depreciation and amortization</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(152,575</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(132,374</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</div></td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 4px; background-color: #FFFFFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Total property, plant and equipment, net</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">419,157</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">407,210</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td></tr></table><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div></div>
407210000
419157000
12000000
20000000
0
24745000
25751000
46227000
53796000
1043000
1043000
337074000
349783000
180075000
220200000
338014000
100772000
217630000
255846000
16160000
33788000
23613000
49791000
32377000
16512000
21002000
38263000
63610000
145579000
15250000
72037000
265977000
0
19924000
49791000
30055000
185147000
35053000
23613000
2322000
169897000
1262000
235922000
10178000
0
630000000
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: justify; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">2.</font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">  </font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Revenue recognition</font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">In May 2014, the FASB issued ASU No. 2014-09, <font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">Revenue from Contracts with Customers (Topic 606) </font>(<font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">"</font>ASU No. 2014-09"). ASU No. 2014-09 (known as ASC 606) supersedes the revenue recognition requirements in <font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">Topic 605, Revenue Recognition</font>, 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 Company adopted the requirements of the new standard as of January 1, 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.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">A performance obligation is a promise in a contract to transfer a distinct product or service to a customer and is the unit of account under ASC 606. For contracts with multiple performance obligations, the Company allocates the contract's transaction price to each performance obligation on a relative standalone selling price basis using the Company's best estimate of the standalone selling price of each distinct product or service in the contract. The primary method used to estimate standalone selling price is the price observed in standalone sales to customers, however when prices in standalone sales are not available the Company may use third-party pricing for similar products or services or estimate the standalone selling price. Allocation of the transaction price is determined at the contracts' inception.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Once the performance obligations in the contract have been identified, the Company estimates the transaction price of the contract. The estimate includes amounts that are fixed as well as those that can vary based on expected outcomes of the activities or contractual terms. The Company's variable consideration primarily includes consideration transferred under its development contracts with the U.S. government as consideration received can vary based on developmental progression of the product candidate(s). When a contract's transaction price includes variable consideration, the Company evaluates the estimate of the variable consideration to determine whether the estimate needs to be constrained; therefore, the Company includes the variable consideration in the transaction price only to the extent that it is probable that a significant reversal of the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Variable consideration estimates are updated at each reporting date. There were no constraints or material changes to the Company's variable consideration estimates as of or during the six months ended June 30, 2018.</div><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">To indicate the transfer of control for the Company's product sales and contract manufacturing services, it must have a present right to payment, legal title must have passed to the customer, and the customer must have the significant risks and rewards of ownership. Revenue for long-term development contracts is generally recognized based upon the cost-to-cost measure of progress, provided that the Company meets the criteria associated with transferring control of the good or service over time.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">The Company derives revenues primarily from the sale of its marketed medical countermeasures ("MCMs") products and contract revenues associated with development of its MCMs. The primary customer for the Company's MCM products and the development of the Company's MCM product candidate portfolio is the U.S. government. The Company's contracts for the sale of its MCM products generally have single performance obligation. Certain product sales contracts with the U.S. government include multiple performance obligations, which generally include the marketed product, stability testing associated with that product, expiry extensions and plasma collection. The Company's development contracts for its MCM product candidates generally are cost plus fixed fee arrangements, which the Company treats a single performance obligation with variable consideration. The U.S. government contracts for the sale and development of the Company's MCM products and product candidates are normally multi-year contracts.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">In addition, the Company performs contract manufacturing services for third parties, which includes pharmaceutical product process development, manufacturing and filling services for injectable and other sterile products, inclusive of process design, technical transfer, manufacturing validations, laboratory analytical development support, aseptic filling, lyophilization, final packaging and accelerated and ongoing stability studies. These contracts generally include a single performance obligation with a duration that is less than one-year.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">The Company finalized the review of its portfolio of revenue contracts that were not complete as of the adoption date and made its determination of its revenue streams as well as completed extensive contract specific reviews to determine the impact 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.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">The Company determined its Centers for Innovation in Advanced Development and Manufacturing ("CIADM") contract with the ​​Biomedical Advanced Research and Development Authority ("BARDA") will have a material change in revenue recognition under the new guidance. Under ASC 606, the Company determined that there is one performance obligation to provide ongoing manufacturing capability to the U.S. government and will recognize the consideration received in the base period on a straight-line basis over a 24-year period as the capability being created during the base period of the contract is being provided to the customer over both the base period contract term as well as 17 additional option periods. In addition, the Company determined the CIADM contract includes a significant financing component which is included in the transaction price. The Company calculated the financing component using an interest rate the Company had on its other debt obligations at inception of the contract. Prior to the adoption of ASC 606, the Company recognized 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 analyzed the estimated payments to be received on a quarterly basis to determine if an adjustment to revenue was required. As a result of the adoption of ASC 606, as of January 1, 2018, there was an increase in the deferred revenue liability of $42.4 million and an increase in deferred tax assets of $9.9 million<font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"> </font>with an offsetting reduction to retained earnings of $32.5 million.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">The Company considers accounts receivables and deferred costs associated with revenue generating contracts, that are not included in inventory or property, plant and equipment, as contract assets. As of June 30, 2018 and December 31, 2017, the Company had $189.5 million and $143.7 million, respectively, in contract assets associated with accounts receivable<font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"> </font>which is included in accounts receivable on the company's condensed consolidated balance sheets. As of June 30, 2018 and December 31, 2017, the Company had contract assets associated with deferred costs of $3.4 million and $2.9 million, respectively, <!--Anchor-->which is included in prepaid and other current assets on the Company's condensed consolidated balance sheets.</div><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">When performance obligations are not transferred to a customer at the end of a reporting period, the amount allocated to those performance obligations are deferred until control of these performance obligations is transferred to the customer. The following table presents the rollforward of the contract liabilities,<font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"> </font>which is included in the Company's current and long-term deferred revenue line items in the condensed consolidated balance sheets:</div><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">(in thousands)</font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"> </font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; border-bottom: #000000 solid 2px;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 88%; background-color: #CCEEFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Balance at December 31, 2017</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">30,491</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 88%; padding-bottom: 2px; background-color: #FFFFFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Adoption of new accounting standard (ASC 606)</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">42,379</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 88%; background-color: #CCEEFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Balance at January 1, 2018</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">72,870</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 88%; background-color: #FFFFFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Deferral of revenue</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">15,478</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 88%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Recognition of revenue included in beginning of year contract liability</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(15,343</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</div></td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 88%; padding-bottom: 4px; background-color: #FFFFFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Balance at June 30, 2018</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">73,005</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td></tr></table><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">We operate in one business segment. Therefore, results of our operations are reported on a consolidated basis for purposes of segment reporting, consistent with internal management reporting.<font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"> </font>For the three and six months ended June 30, 2018, there was a nominal difference between revenues recognized under ASC 606 and revenues recognized based on the prior revenue recognition guidance for the same period. For the three and six months ended June 30, 2018, the Company's<font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"> </font>revenues disaggregated by the major sources was as follows:</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="text-align: left; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">(in thousands)</font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"> </font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="10" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Three Months Ended June 30, 2018</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="10" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Six Months Ended June 30, 2018</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom;"><div style="text-align: center; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">U.S </div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom;"><div style="text-align: center; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Non-U.S. </div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom;"><div style="text-align: center; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">U.S </div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom;"><div style="text-align: center; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Non-U.S. </div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Government</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Government</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Total</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Government</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Government</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Total</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 28%; background-color: #CCEEFF;"><div style="text-align: left; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Product sales</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">169,897</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">10,178</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">180,075</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">235,922</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">19,924</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">255,846</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 28%; background-color: #FFFFFF;"><div style="text-align: left; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Contract manufacturing</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">-</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">23,613</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">23,613</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">-</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">49,791</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">49,791</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 28%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="text-align: left; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Contracts and grants</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">15,250</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,262</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">16,512</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">30,055</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2,322</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">32,377</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 28%; padding-bottom: 4px; background-color: #FFFFFF;"><div style="text-align: left; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Total revenues</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">185,147</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">35,053</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">220,200</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">265,977</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">72,037</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">338,014</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td></tr></table><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><!--Anchor-->As of June 30, 2018, the Company had expected future revenues associated with performance obligations that have not been satisfied of approximately $630 million. The Company expects to recognize a majority of its revenues within the next 24 months with the remainder recognized thereafter. However, the amount and timing of recognition of revenue for unsatisfied performance obligations can materially change due to timing of funding appropriations from the U.S. government and the overall success of the Company's development activities associated with its MCM product candidates. In addition, the amount of future revenues associated with unsatisfied performance obligations excludes the value associated with unexercised option periods in the Company's contracts (which are not performance obligations as of June 30, 2018).</div><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div></div>
P24M
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Inventories consisted of the following:</div><div style="line-height: 13.7pt;"><br style="line-height: 13.7pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: top;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom;"><div style="text-align: center; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">June 30,</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom;"><div style="text-align: center; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">December 31,</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">(in thousands)</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">2018</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">2017</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #CCEEFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Raw materials and supplies</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">34,426</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">36,069</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #FFFFFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Work-in-process</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">79,546</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">76,610</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Finished goods</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">25,401</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">30,133</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 4px; background-color: #FFFFFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Total inventories</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">139,373</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">142,812</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"> </td></tr></table><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div></div>
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">The following table presents the calculation of basic and diluted net income per share:</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="6" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Three Months Ended June 30,</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="6" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Six Months Ended June 30,</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">(in thousands, except share and per share data)</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">2018</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">2017</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">2018</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">2017</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Numerator:</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #CCEEFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Net income</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">50,144</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">4,616</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">45,236</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">15,101</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #FFFFFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Interest expense on convertible debt, net of tax</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">-</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">835</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">-</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,742</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Amortization of convertible debt issuance costs, net of tax</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">-</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">195</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">-</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">391</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #FFFFFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Net income, adjusted</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">50,144</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">5,646</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">45,236</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">17,234</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #FFFFFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Denominator:</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Weighted-average number of shares—basic</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">49,896,124</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">41,013,764</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">49,738,980</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">40,871,540</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #FFFFFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Dilutive securities—equity awards</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,266,785</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">968,354</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,300,215</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">931,263</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Dilutive securities—convertible debt</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">-</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">8,096,476</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">-</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">8,096,488</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; padding-bottom: 2px; background-color: #FFFFFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Weighted-average number of shares—diluted</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">51,162,909</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">50,078,594</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">51,039,195</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">49,899,291</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #FFFFFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Net income per share - basic</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1.00</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.11</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.91</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.37</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #CCEEFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Net income per share - diluted</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.98</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.11</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.89</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.35</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td></tr></table><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div></div>
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">The table below summarizes the preliminary allocation of the purchase price based upon estimated fair values of assets acquired at October 6, 2017. The Company did not assume any liabilities in the acquisition. This preliminary allocation is based upon the finalization of valuation reports and as management gathers additional information on the acquired assets.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">(in thousands)</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; border-bottom: #000000 solid 2px;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Fair value of tangible assets acquired:</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="2" valign="bottom" style="vertical-align: bottom;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 88%; background-color: #CCEEFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Inventory</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">74,876</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 88%; padding-bottom: 2px; background-color: #FFFFFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Property, plant and equipment</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">19,995</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 88%; background-color: #CCEEFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Total fair value of tangible assets acquired</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">94,871</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 88%; background-color: #FFFFFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;"> </div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 88%; background-color: #CCEEFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Acquired intangible asset</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">16,700</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 88%; padding-bottom: 2px; background-color: #FFFFFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Goodwill</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">8,129</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 88%; padding-bottom: 4px; background-color: #CCEEFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Total purchase price</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">119,700</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;"> </td></tr></table><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div></div>
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">The total purchase price is summarized below:</div><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">(in thousands)</font> </div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"> </td><td colspan="2" valign="bottom" style="vertical-align: middle; border-bottom: #000000 solid 2px;"> </td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; border-bottom: #000000 solid 2px;"> </td></tr><tr><td valign="bottom" style="vertical-align: middle; width: 88%; background-color: #CCEEFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Amount of cash paid to Sanofi</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">117,500</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: middle; width: 88%; padding-bottom: 2px; background-color: #FFFFFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Fair value of contingent purchase consideration</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"> </td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2,200</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;"> </td></tr><tr><td valign="bottom" style="vertical-align: middle; width: 88%; padding-bottom: 4px; background-color: #CCEEFF;"><div style="text-align: left; line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Total purchase price</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;"> </td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 9.1pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">119,700</div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;"> </td></tr></table><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div></div>
31868000
39506000
79710000
67018000
3000000
2028-05-23
8018000
11709000
400000
400000
21900000
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: justify; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">1.</font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"> </font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Summary of significant accounting policies</font></div><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Basis of presentation and consolidation</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">The accompanying unaudited condensed consolidated financial statements include the accounts of Emergent BioSolutions Inc. ("Emergent" or the "Company") and its wholly owned and majority owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The unaudited consolidated financial statements included herein have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X issued by the Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the SEC.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">In the opinion of the Company's management, any adjustments contained in the accompanying unaudited condensed consolidated financial statements are of a normal recurring nature and are necessary to present fairly the financial position of the Company as of June 30, 2018. Interim results are not necessarily indicative of results that may be expected for any other interim period or for an entire year.</div><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; font-style: italic;">Significant accounting policies</div><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">During the six months ended June 30, 2018, there have been no significant changes to the Company's summary of significant accounting policies contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the SEC, except for the new revenue recognition standard the Company adopted effective January 1, 2018. See Note 2. "Revenue recognition" for further details.</div><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; font-style: italic;">Recently issued accounting standards</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><u>ASU No. 2018-07, </u></font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;"><u>Compensation-Stock Compensation (Topic 718):</u></font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><u> </u></font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;"><u>Improvements to Nonemployee Share-based Payment Accounting</u></font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">In June 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") No. 2018-07, <font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-based Payment Accounting </font>("ASU No. 2018-07"). ASU No. 2018-07 expands the scope of Topic 718 to include share-based payments issued to nonemployees for goods and services. ASU No. 2018-07 is intended to reduce cost and complexity and to improve financial reporting for share-based payments issued to nonemployees (for example, service providers, external legal counsel, suppliers, etc.). The standard will be effective after December 15, 2018 for the Company, with early adoption permitted, but no earlier than the Company's adoption date of Topic 606. The Company early adopted the new standard effective April 1, 2018. The adoption of this standard did not have a material impact on the Company's condensed consolidated financial statements.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><u>ASU No. 2017-09, </u></font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;"><u>Compensation-Stock Compensation (Topic 718):</u></font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><u> </u></font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;"><u>Scope of Modification Accounting</u></font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">In May 2017, the FASB issued ASU No. 2017-09, <font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting </font>("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 Company adopted the new standard effective January 1, 2018, which did not have a material impact on its condensed consolidated financial statements.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><u>ASU 2016-18, </u></font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;"><u>Restricted Cash (Topic 230): Statement of Cash Flows</u></font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">In November 2016, the FASB issued ASU No. 2016-18, <font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">Restricted Cash (Topic 230): Statement of Cash Flows </font>(<font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">"</font>ASU No. 2016-18"). ASU No. 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. Restricted cash and restricted cash equivalents will be included with cash and cash equivalents when reconciling the beginning of period and end of period balances on the statement of cash flows upon adoption of this standard. The Company adopted the new standard effective January 1, 2018. Restricted cash primarily consists of collateralized cash for a standby letter of credit and guarantee arrangement with a bank.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><u>ASU 2016-15,</u></font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;"><u> Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments</u></font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">In August 2016, the FASB issued ASU No. 2016-15, <font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments </font>(<font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">"</font>ASU No. 2016-15").  ASU No. 2016-15 eliminates the diversity in practice related to the classification of certain cash receipts and payments for debt prepayments or extinguishment costs, the maturing of a zero-coupon bond, the settlement of contingent liabilities arising from a business combination, proceeds from insurance settlements, distributions from certain equity method investees and beneficial interests obtained in a financial asset securitization. ASU No. 2016-15 designates the appropriate cash flow classification, including requirements to allocate certain components of these cash receipts and payments among operating, investing and financing activities. The Company adopted the new standard effective January 1, 2018 and has determined the impact of ASU No. 2016-15 on its condensed consolidated financial statements will be related to the settlement of contingent liabilities arising from a business combination.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><u>ASU 2016-02, </u></font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;"><u>Leases (Topic 842)</u></font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><u> </u></font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">In February 2016, the FASB issued ASU 2016-02,<font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;"> Leases (Topic 842)</font> (<font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">"</font>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's implementation efforts are primarily focused on the review of its existing lease contracts, identification of other contracts that may fall under the scope of the new guidance and performing a gap analysis on the current state of lease-related activities compared with the future state of lease-related activities. The Company has identified the lease agreements that will be impacted by the new standard and is currently evaluating the overall impact on its condensed consolidated financial statements and related disclosures.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: left; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">There are no other recently issued accounting pronouncements that are expected to have a material impact on the Company's financial position, results of operations or cash flows.</div><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div></div>
612006
145000
145000
2843
14153000
1000
14154000
912345000
938346000
-39497000
304547000
337074000
-39497000
-3698000
879818000
618416000
-3698000
50000
618416000
50000
632569000
51000
-39642000
349783000
-4415000
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: justify; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">8. </font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"> </font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Equity</font></div><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div><div style="text-align: justify; text-indent: 36pt; line-height: 10.25pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif;">During the six months ended June 30, 2018, the Company granted 0.4 million shares of stock options and 0.4 million shares of restricted stock units under the Fourth Amended and Restated Emergent BioSolutions Inc. 2006 Stock Incentive Plan (the "Plan"). The grants vest over three equal annual installments beginning on the day prior to the anniversary of the grant date. On May 24, 2018, the Company's stockholders approved an increase in the number of shares issuable under the Plan by 3.0 million shares, to a total of 21.9 million shares, and extended the plan term to May 23, 2028.</div><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div></div>
2771000
0
39642000
39497000
1217286
1214443
49896124
41013764
49738980
40871540
51162909
50078594
49899291
51039195
433000
1674000
1257000
2405000
3
2372000
2852000
9839000
9902000
P24Y
17
15478000
200000
700000
500000
1600000
50144000
5646000
45236000
17234000
0
195000
391000
0
P10Y
425000000
160000000
97500000
20000000
7500000
7500000
0.1550
As of December 31, 2017 and June 30, 2018, the balance includes $1,043 of restricted cash.
See "Earnings per share" footnote for details on calculation.