PENUMBRA INC, 10-K filed on 2/23/2023
Annual Report
v3.22.4
Cover Page - USD ($)
$ in Billions
12 Months Ended
Dec. 31, 2022
Feb. 09, 2023
Jun. 30, 2022
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Current Fiscal Year End Date --12-31    
Document Period End Date Dec. 31, 2022    
Document Transition Report false    
Entity File Number 001-37557    
Entity Registrant Name Penumbra, Inc.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 05-0605598    
Entity Address, Address Line One One Penumbra Place    
Entity Address, City or Town Alameda    
Entity Address, State or Province CA    
Entity Address, Postal Zip Code 94502    
City Area Code 510    
Local Phone Number 748-3200    
Title of 12(b) Security Common Stock, Par value $0.001 per share    
Trading Symbol PEN    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Entity Shell Company false    
Entity Public Float     $ 4.5
Entity Common Stock, Shares Outstanding   38,178,925  
Documents Incorporated by Reference Portions of the registrant’s definitive proxy statement for its 2023 annual meeting of stockholders, which is to be filed not more than 120 days after the registrant’s fiscal year ended December 31, 2022, are incorporated by reference into Part III of this Annual Report on Form 10-K.    
Entity Central Index Key 0001321732    
Document Fiscal Year Focus 2022    
Document Fiscal Period Focus FY    
Amendment Flag false    
v3.22.4
Audit Information
12 Months Ended
Dec. 31, 2022
Auditor Information [Abstract]  
Auditor Firm ID 34
Auditor Name Deloitte & Touche LLP
Auditor Location San Francisco, California
v3.22.4
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Current assets:    
Cash and cash equivalents $ 69,858 $ 59,379
Marketable investments 118,172 195,496
Accounts receivable, net of allowance for credit losses of $862 and $2,092 at December 31, 2022 and 2021, respectively 203,384 133,940
Inventories 334,006 263,504
Prepaid expenses and other current assets 30,279 29,155
Total current assets 755,699 681,474
Property and equipment, net 65,015 58,856
Operating lease right-of-use assets 192,636 131,955
Finance lease right-of-use assets 33,323 36,276
Intangible assets, net 81,161 90,618
Goodwill 166,046 166,388
Deferred taxes 64,213 65,698
Other non-current assets 12,793 12,985
Total assets 1,370,886 1,244,250
Current liabilities:    
Accounts payable 26,679 13,421
Accrued liabilities 106,300 99,796
Current operating lease liabilities 10,033 8,267
Current finance lease liabilities 1,920 1,713
Total current liabilities 144,932 123,197
Non-current operating lease liabilities 198,955 137,045
Non-current finance lease liabilities 24,865 26,523
Other non-current liabilities 3,276 3,558
Total liabilities 372,028 290,323
Commitments and contingencies (Note 10)
Stockholders’ equity:    
Preferred stock, $.001 par value per share - 5,000,000 shares authorized, none issued and outstanding at December 31, 2022 and December 31, 2021 0 0
Common stock, $0.001 par value per share - 300,000,000 shares authorized, 38,107,977 issued and outstanding at December 31, 2022; 300,000,000 shares authorized, 37,578,483 issued and outstanding at December 31, 2021 38 37
Additional paid-in capital 963,040 910,614
Accumulated other comprehensive loss (8,124) (2,630)
Retained earnings 43,904 45,906
Total stockholders’ equity 998,858 953,927
Total liabilities and stockholders’ equity $ 1,370,886 $ 1,244,250
v3.22.4
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Statement of Financial Position [Abstract]    
Allowance for doubtful accounts $ 862 $ 2,092
Preferred stock, par value (in dollars per share) $ 0.001 $ 0.001
Preferred stock, shares authorized (in shares) 5,000,000 5,000,000
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
Common stock, shares authorized (in shares) 300,000,000 300,000,000
Common stock, shares issued (in shares) 38,107,977 37,578,483
Common stock, shares outstanding (in shares) 38,107,977 37,578,483
v3.22.4
Consolidated Statements of Operations - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income Statement [Abstract]      
Revenue $ 847,133 $ 747,590 $ 560,412
Cost of revenue 311,926 272,208 222,237
Gross profit 535,207 475,382 338,175
Operating expenses:      
Research and development 79,407 104,552 90,049
Sales, general and administrative 449,718 378,331 287,068
Total operating expenses 529,125 482,883 377,117
Income (loss) from operations 6,082 (7,501) (38,942)
Interest income, net 137 938 1,267
Other expense, net (2,327) (3,939) (343)
Income (loss) before income taxes 3,892 (10,502) (38,018)
Provision for (benefit from) income taxes 5,894 (13,125) (18,761)
Consolidated net (loss) income (2,002) 2,623 (19,257)
Net loss attributable to non-controlling interest 0 (2,661) (3,555)
Net (loss) income attributable to Penumbra, Inc. $ (2,002) $ 5,284 $ (15,702)
Net (loss) income attributable to Penumbra, Inc. per share:      
Net income (loss) attributable to Penumbra, Inc. per share: Basic (in dollars per share) $ (0.05) $ 0.14 $ (0.44)
Net income (loss) attributable to Penumbra, Inc. per share: Diluted (in dollars per share) $ (0.05) $ 0.14 $ (0.44)
Weighted average shares outstanding:      
Weighted average shares outstanding: Basic (in shares) 37,841,874 36,764,290 35,766,892
Weighted average shares outstanding: Diluted (in shares) 37,841,874 37,881,180 35,766,892
v3.22.4
Consolidated Statements of Comprehensive (Loss) Income - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Statement of Comprehensive Income [Abstract]      
Consolidated net (loss) income $ (2,002) $ 2,623 $ (19,257)
Other comprehensive (loss) income, net of tax:      
Foreign currency translation adjustments, net of tax (2,589) (3,929) 4,456
Net change in unrealized (losses) gains on available-for-sale securities, net of tax (2,905) (1,242) 409
Total other comprehensive (loss) income, net of tax (5,494) (5,171) 4,865
Consolidated comprehensive loss (7,496) (2,548) (14,392)
Net loss attributable to non-controlling interest 0 (2,661) (3,555)
Comprehensive (loss) income attributable to Penumbra, Inc. $ (7,496) $ 113 $ (10,837)
v3.22.4
Consolidated Statements of Stockholders' Equity - USD ($)
$ in Thousands
Total
Cumulative Effect, Period of Adoption, Adjustment
[1]
Common Stock
Additional Paid-in Capital
Accumulated Other Comprehensive (Loss) Income
Retained Earnings (Accumulated Deficit)
Retained Earnings (Accumulated Deficit)
Cumulative Effect, Period of Adoption, Adjustment
[1]
Total Penumbra, Inc. Stockholders’ Equity
Total Penumbra, Inc. Stockholders’ Equity
Cumulative Effect, Period of Adoption, Adjustment
[1]
Non-Controlling Interest
Beginning balance (in shares) at Dec. 31, 2019     35,001,581              
Beginning balance at Dec. 31, 2019 $ 485,613 $ (1,198) $ 35 $ 430,659 $ (2,324) $ 57,522 $ (1,198) $ 485,892 $ (1,198) $ (279)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                    
Issuance of common stock (in shares)     520,185              
Issuance of common stock $ 5,239     5,115       5,115   124
Issuance of common stock under employee stock purchase plan (in shares) 77,528   77,528              
Issuance of common stock under employee stock purchase plan $ 11,300     11,300       11,300    
Issuance of common stock upon underwritten public offering, net of issuance cost (in shares)     865,963              
Issuance of common stock upon underwritten public offering, net of issuance cost 134,759   $ 1 134,758       134,759    
Shares held for tax withholdings (in shares)     (50,525)              
Shares held for tax withholding (10,066)     (10,066)       (10,066)    
Stock-based compensation 26,533     26,533       26,533    
Other comprehensive income 4,865       4,865     4,865    
Net (loss) income (19,257)         (15,702)        
Net income (loss) attributable to Penumbra, Inc. (15,702)             (15,702)    
Net loss attributable to non-controlling interest (3,555)                 (3,555)
Ending balance (in shares) at Dec. 31, 2020     36,414,732              
Ending balance at Dec. 31, 2020 637,788   $ 36 598,299 2,541 40,622   641,498   (3,710)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                    
Issuance of common stock (in shares)     498,185              
Issuance of common stock $ 4,664     4,507       4,507   157
Issuance of common stock under employee stock purchase plan (in shares) 64,852   64,852              
Issuance of common stock under employee stock purchase plan $ 13,705     13,705       13,705    
Issuance of common stock in connection with Sixense acquisition (in shares) [2]     661,877              
Issuance of common stock in connection with Sixense acquisition [2] 174,134   $ 1 174,133       174,134    
Replacement share-based awards issued in connection with Sixense acquisition [2] 80,693     80,693       80,693    
Acquisition of subsidiary stock from noncontrolling interests [2] (4,161)     (10,375)       (10,375)   6,214
Shares held for tax withholdings (in shares)     (61,163)              
Shares held for tax withholding (15,832)     (15,832)       (15,832)    
Stock-based compensation 65,484     65,484       65,484    
Other comprehensive income (5,171)       (5,171)     (5,171)    
Net (loss) income 2,623         5,284        
Net income (loss) attributable to Penumbra, Inc. 5,284             5,284    
Net loss attributable to non-controlling interest (2,661)                 (2,661)
Ending balance (in shares) at Dec. 31, 2021     37,578,483              
Ending balance at Dec. 31, 2021 953,927   $ 37 910,614 (2,630) 45,906   953,927   0
Increase (Decrease) in Stockholders' Equity [Roll Forward]                    
Issuance of common stock (in shares)     460,177              
Issuance of common stock $ 7,787   $ 1 7,786       7,787    
Issuance of common stock under employee stock purchase plan (in shares) 113,893   113,893              
Issuance of common stock under employee stock purchase plan $ 13,766     13,766       13,766    
Shares held for tax withholdings (in shares)     (44,576)              
Shares held for tax withholding (8,042)     (8,042)       (8,042)    
Stock-based compensation 38,916     38,916       38,916    
Other comprehensive income (5,494)       (5,494)     (5,494)    
Net (loss) income (2,002)         (2,002)        
Net income (loss) attributable to Penumbra, Inc. (2,002)             (2,002)    
Net loss attributable to non-controlling interest 0                  
Ending balance (in shares) at Dec. 31, 2022     38,107,977              
Ending balance at Dec. 31, 2022 $ 998,858   $ 38 $ 963,040 $ (8,124) $ 43,904   $ 998,858   $ 0
[1] (1) Cumulative effect adjustments relate to the adoption of Accounting Standard Update (“ASU”) No. 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.
[2] (2) Refer to Note "5. Business Combinations” and “11. Stockholders’ Equity” for more information on the impact of the acquisition of Sixense Enterprises Inc. during the year ended December 31, 2021.
v3.22.4
Consolidated Statements of Cash Flows - USD ($)
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:      
Net (loss) income $ (2,002,000) $ 2,623,000 $ (19,257,000)
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:      
Depreciation and amortization 24,321,000 16,408,000 12,891,000
Stock-based compensation 37,378,000 65,763,000 25,541,000
Inventory write-offs and write-downs 3,445,000 2,818,000 10,571,000
Deferred taxes 1,458,000 (14,091,000) (18,818,000)
Impairment of intangible asset 0 0 2,500,000
Other 1,274,000 2,692,000 4,520,000
Changes in operating assets and liabilities:      
Accounts receivable (69,857,000) (21,344,000) (8,295,000)
Inventories (74,631,000) (51,554,000) (56,981,000)
Prepaid expenses and other current and non-current assets (1,237,000) (13,032,000) (8,865,000)
Accounts payable 13,385,000 (1,565,000) (308,000)
Accrued expenses and other non-current liabilities 10,542,000 17,076,000 23,259,000
Proceeds from lease incentives 263,000 3,708,000 0
Net cash (used in) provided by operating activities (55,661,000) 9,502,000 (33,242,000)
CASH FLOWS FROM INVESTING ACTIVITIES:      
Cash acquired in a business combination 0 2,919,000 0
Purchases of marketable investments 0 (126,794,000) (153,061,000)
Proceeds from sales of marketable investments 1,180,000 2,000,000 7,897,000
Proceeds from maturities of marketable investments 72,908,000 121,720,000 68,831,000
Purchases of property and equipment (19,298,000) (21,180,000) (24,756,000)
Other 0 (400,000) (3,060,000)
Net cash provided by (used in) investing activities 54,790,000 (21,735,000) (104,149,000)
CASH FLOWS FROM FINANCING ACTIVITIES:      
Proceeds from issuance of common stock upon underwritten public offering, net of issuance cost 0 0 134,759,000
Proceeds from exercises of stock options 7,786,000 4,664,000 5,239,000
Proceeds from issuance of stock under employee stock purchase plan 13,766,000 13,705,000 11,300,000
Payment of employee taxes related to vested common and restricted stock (8,042,000) (15,832,000) (10,066,000)
Payments of finance lease obligations (1,751,000) (1,451,000) (3,418,000)
Payment of acquisition-related obligations 0 0 (683,000)
Other (137,000) (250,000) (2,214,000)
Net cash provided by financing activities 11,622,000 836,000 134,917,000
Effect of foreign exchange rate changes on cash and cash equivalents (272,000) 1,106,000 (635,000)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 10,479,000 (10,291,000) (3,109,000)
CASH AND CASH EQUIVALENTS—Beginning of period 59,379,000 69,670,000 72,779,000
CASH AND CASH EQUIVALENTS—End of period 69,858,000 59,379,000 69,670,000
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:      
Cash paid for income taxes 2,919,000 1,496,000 1,414,000
NONCASH INVESTING AND FINANCING ACTIVITIES:      
Right-of-use assets obtained in exchange for operating lease obligations 72,279,000 101,510,000 1,515,000
Right-of-use assets obtained in exchange for finance lease obligations 305,000 1,346,000 1,632,000
Purchase of property and equipment funded through accounts payable and accrued liabilities 2,293,000 2,330,000 1,407,000
Shares      
NONCASH INVESTING AND FINANCING ACTIVITIES:      
Fair value of stock issued in connection with acquisition 0 174,133,000 0
Stock Options      
NONCASH INVESTING AND FINANCING ACTIVITIES:      
Fair value of stock issued in connection with acquisition $ 0 $ 80,693,000 $ 0
v3.22.4
Organization and Description of Business
12 Months Ended
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization and Description of Business
1. Organization and Description of Business
Penumbra, Inc. (the “Company”) is a global healthcare company focused on innovative therapies. The Company designs, develops, manufactures and markets novel products and has a broad portfolio that addresses challenging medical conditions in markets with significant unmet need. The Company focuses on developing, manufacturing and marketing novel products for use by specialist physicians and other healthcare providers to drive improved clinical and health outcomes. The Company believes that the cost-effectiveness of our products is attractive to our customers.
v3.22.4
Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies
2. Summary of Significant Accounting Policies
Basis of Presentation and Consolidation
The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”).
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and equity accounts; disclosure of contingent assets and liabilities at the date of the financial statements; and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including those related to marketable investments, allowances for credit losses, standalone selling prices used to allocate revenue to performance obligations which are not directly observable, the amount of variable consideration included in the transaction price, warranty reserve, valuation of inventories, useful lives of intangible assets and property and equipment, operating and finance lease right-of-use (“ROU”) assets and liabilities, income taxes, contingent consideration and other contingencies, among others. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other data. Actual results could differ from those estimates.
Segments
The Company determined its operating segment on the same basis that it uses to evaluate its performance internally. The Company has one business activity: the design, development, manufacturing and marketing of innovative medical products, and operates as one operating segment. The Company’s chief operating decision-maker (“CODM”), its Chief Executive Officer, reviews its consolidated operating results for the purpose of allocating resources and evaluating financial performance. The Company’s entity-wide disclosures are included in Note “16. Revenues.”
Foreign Currency Translation
The Company’s consolidated financial statements are prepared in United States Dollars (“USD”). Its foreign subsidiaries use their local currency as their functional currency and maintain their records in the local currency. Accordingly, the assets and liabilities of these subsidiaries are translated into USD using the current exchange rates in effect at the balance sheet date and equity accounts are translated into USD using historical rates. Revenues are translated using the exchange rate as of the date of transaction and expenses are translated using the average exchange rates in effect for the year involved. The resulting foreign currency translation adjustments are recorded in accumulated other comprehensive income (loss) in the consolidated balance sheets. Transactions denominated in currencies other than the respective functional currencies are translated at exchange rates as of the date of transaction with foreign currency gains and losses recorded in other expense, net in the consolidated statements of operations. The Company realized net foreign currency transaction losses of $3.2 million, $0.5 million and a nominal amount during the years ended December 31, 2022, 2021, and 2020, respectively.
As the Company’s international operations grow, its risks associated with fluctuation in currency rates will become greater, and the Company will continue to reassess its approach to managing this risk. In addition, currency fluctuations or a weakening USD can increase the costs of the Company’s international expansion. To date, the Company has not entered into any foreign currency hedging contracts.
Concentration of Credit Risk
Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash and cash equivalents, marketable investments (as described in greater detail in this footnote under the header “Cash, Cash Equivalents and Marketable Investments” below) and accounts receivable. The majority of the Company’s cash is held by one financial institution in the U.S. in excess of federally insured limits. The Company maintained investments in money market funds that were not federally insured during the year ended December 31, 2022 and held cash in foreign entities of approximately $14.8 million and $20.2 million at December 31, 2022 and 2021, respectively, which was not federally insured.
The Company’s revenue has been derived from sales of its products in the United States and international markets. The Company uses both its own salesforce and independent distributors to sell its products. Concentrations of credit risk with respect to accounts receivable are limited due to the large number of entities comprising the Company’s customer base. The Company performs ongoing credit evaluations of its customers, including its distributors, does not require collateral, and maintains allowances for potential credit losses on customer accounts when deemed necessary.
During the years ended December 31, 2022, 2021, and 2020, no customer accounted for greater than 10% of the Company’s revenue. During the year ended December 31, 2022, one customer accounted for greater than 10% of the Company’s receivable balance while no customer accounted for greater than 10% of the Company’s accounts receivable balance as of December 31, 2021.
Significant Risks and Uncertainties
The Company is subject to risks common to medical device companies including, but not limited to, new technological innovations, dependence on key personnel, protection of proprietary technology, compliance with government regulations, product liability, uncertainty of market acceptance of products and the potential need to obtain additional financing. The Company is dependent on third-party suppliers, in some cases single-source suppliers.
There can be no assurance that the Company’s products will continue to be accepted in the marketplace, nor can there be any assurance that any future products can be developed or manufactured at an acceptable cost and with appropriate performance characteristics, or that such products will be successfully marketed, if at all.
The Company’s products require approval or clearance from the FDA prior to commencing commercial sales in the United States. There can be no assurance that the Company’s products will receive all of the required approvals or clearances. Approvals or clearances are also required in foreign jurisdictions in which the Company sells its products. If the Company is denied such approvals or clearances or such approvals or clearances are delayed, it may have a material adverse impact on the Company’s results of operations, financial position and liquidity.
Fair Value of Financial Instruments
Carrying amounts of certain of the Company’s financial instruments, including cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable and accrued liabilities, approximate fair value due to their relatively short maturities.
Cash, Cash Equivalents and Marketable Investments
The Company invests its cash primarily in highly liquid corporate debt securities, debt instruments of U.S. federal, state and municipal governments, and their agencies, in money market funds and in commercial paper. All highly liquid investments with stated maturities of three months or less from the date of purchase are classified as cash equivalents; all highly liquid investments with stated maturities of greater than three months are classified as marketable investments. The majority of the Company’s cash and investments are held in U.S. banks.
The Company determines the appropriate classification of its investments in marketable investments at the time of purchase and re-evaluates such designation at each balance sheet date. The Company’s marketable investments have been classified and accounted for as available-for-sale. Investments with remaining maturities of more than one year are viewed by the Company as available to support current operations and are classified as current assets under the caption marketable investments in the accompanying consolidated balance sheets. Investments in marketable investments are carried at fair value, with the unrealized gains and losses reported as a component of accumulated other comprehensive loss. Any realized gains or losses on the sale of marketable investments are determined on a specific identification method, and such gains and losses are reflected as a component of other income (expense), net.
Impairment of Marketable Investments
As a result of the of the adoption of ASU No. 2016-13, Financial Instruments—Credit Losses (“ASU 2016-13”) during the year ended December 31, 2020, the Company is exposed to credit losses through its investments in available-for-sale securities. An investment is impaired if the fair value of the investment is less than its amortized cost basis. The Company reviews each impaired available-for-sale security held in its portfolio to determine whether the decline in fair value below its amortized cost basis is the result of credit losses or other factors. An allowance for credit losses is to be recorded as a charge to net income in an amount equal to the difference between the impaired security’s amortized cost basis and the amount expected to be collected over the lifetime of security, limited by the amount that the fair value is less than its amortized cost basis. Any remaining difference between its amortized cost basis and fair value is deemed not to be due to expected credit losses and is recorded as a component of accumulated other comprehensive loss. The Company’s impairment review considers several factors to determine if an expected credit loss is present including the discounted present value of expected cash flows of the security, the capacity to hold a security or sell a security before recovery of the decline in amortized cost, the credit rating of the security and forecasted and historical factors that affect the value of the security.
In fiscal years prior to the adoption of ASU 2016-13, unrealized gains or losses on these securities were recorded to accumulated other comprehensive loss until either the security was sold or the Company determined that the decline in value was other-than-temporary. The primary differentiating factors the Company considered when classifying impairments as either temporary or other-than-temporary impairments was the intent and ability to retain the investment in the issuer for a period of time sufficient to allow for any anticipated recovery in market value, the length of the time and the extent to which the market value of the investment had been less than cost, the financial condition, and near-term prospects of the issuer.
During the years ended December 31, 2022, 2021 and 2020, the Company reviewed its impaired available-for-sale securities and concluded that the decline in fair value was not related to credit losses and is recoverable. Accordingly, no allowance for credit losses was recorded and instead the unrealized losses are reported as a component of accumulated other comprehensive loss.
Accounts Receivable
As a result of the adoption of ASU 2016-13 on January 1, 2020, accounts receivable are measured at amortized cost less the allowance for credit losses. The Company measures expected credit losses for its accounts receivables utilizing a loss-rate approach. The allowance for expected credit losses assessment requires a degree of estimation and judgement. The expected loss-rate is calculated by utilizing historical credit losses incurred as a percentage of the Company’s historical accounts receivable balances, pooled by customers with similar geographic credit risk characteristics. The loss-rate is adjusted for management’s expectations regarding current conditions and forecasts about future conditions which impact expected credit losses. The Company considers factors such as customers credit risk, geographic related risks and economic conditions that may affect a customer’s credit quality classification.
Prior to the adoption of ASU 2016-13, the Company recognized losses when a loss was incurred or deemed probable by recording a specific allowance against amounts due, and thereby reducing the net recognized receivable to the amount reasonably believed to be collectible. In fiscal years prior to the adoption of ASU 2016-13, accounts receivable were stated at invoice value less estimated allowances for doubtful accounts. The Company recognized losses when a loss was incurred or deemed probable by recording a specific allowance against amounts due, and thereby reducing the net recognized receivable to the amount reasonably believed to be collectible. The Company monitored customer payments and maintained a reserve for estimated losses resulting from its customers’ inability to make required payments considering factors such as historical experience, credit quality, age of the accounts receivable balances, geographic related risks and economic conditions that may affect a customer’s ability to pay.
Inventories
Inventories are stated at the lower of cost (determined under the first-in first-out method) or net realizable value. Write-downs are provided for raw materials, components or finished goods that are determined to be excessive or obsolete. The Company regularly reviews inventory quantities in consideration of actual loss experience, projected future demand and remaining shelf life to record a provision for excess and obsolete inventory when appropriate. As a result of these evaluations, the Company recognized total write-offs and write-downs of $3.4 million, $2.8 million, and $10.6 million for the years ended December 31, 2022, 2021 and 2020, respectively.
Property and Equipment, net
Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or estimated useful life. Machinery and equipment and furniture and fixtures are depreciated over a five to ten year period and computers and software are depreciated over two to seven years. Upon retirement or sale, the cost and the related accumulated depreciation are removed from the consolidated balance sheet and the resulting gain or loss is reflected in operations. Maintenance and repairs are charged to consolidated statements of operations as incurred.
Impairment of Long-Lived Assets
The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When such an event occurs, management determines whether there has been impairment by comparing the anticipated undiscounted future net cash flows to the related asset group’s carrying value. If an asset is considered impaired, the asset is written down to fair value, which is determined based either on discounted cash flows or appraised value, depending on the nature of the asset. There was no impairment of long-lived assets during the years ended December 31, 2022, 2021 or 2020.
Contingent Consideration
Certain agreements the Company enters into involve the potential payment of future consideration that is contingent upon certain performance and revenue milestones being achieved. Contingent consideration obligations incurred in connection with a business combination are recorded at their fair values on the acquisition date and remeasured at their fair values each subsequent reporting period until the related contingencies are resolved. The resulting changes in fair values are recognized generally within sales, general and administrative expense, depending on the nature of the contingent consideration liability, in the consolidated statements of operations. Asset acquisitions are accounted for using a cost accumulation and allocation model and the cost of the acquisition is allocated to the assets acquired and liabilities assumed. Contingent consideration obligations incurred in connection with an asset acquisition are recorded when it is probable that they will occur and they can be reasonably estimated.
Intangible Assets
Intangible assets primarily consist of developed technology, in-process research and development, purchased rights to licensed technology, customer relationships, and trade secrets and processes.
Indefinite-lived intangible assets consist of in-process research and development as of December 31, 2021. Indefinite-lived intangible assets are tested for impairment at least annually, in the fourth quarter, or more frequently if events or circumstances indicate that it is more likely than not that the asset is impaired. In conducting the annual impairment test for its indefinite-lived intangible assets, the Company may first perform a qualitative assessment to determine whether it is more likely than not (i.e. greater than 50% likelihood) that an indefinite-lived intangible asset is impaired. In accordance with the authoritative guidance, the Company may elect to bypass the qualitative assessment and proceed directly to the quantitative test to compare the fair value of the indefinite-lived intangible asset to the carrying amount. If the fair value of the asset is less than the carrying amount, an impairment loss would be recognized in an amount equal to the difference between the carrying amount and the fair value.
During the third quarter of 2022, the in-process research and development indefinite-lived intangible asset acquired in the fourth quarter of 2021 in connection with the Sixense acquisition was reclassified to a finite-lived developed technology intangible asset upon the completion of the in-process research and development project. In the second quarter of 2020, due to a triggering event, the acquired exclusive right to licensed technology indefinite-lived intangible asset was determined to be impaired and the Company wrote-off the full carrying amount of the asset. Refer to Note “6. Intangible Assets” for more information on the Company’s intangible assets.
Finite-lived intangible assets are amortized over the estimated economic useful lives of the assets, which is the period during which expected cash flows support the fair value of such intangible assets. The Company reviews finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets or asset group may not be recoverable. If such an event occurs, the Company determines whether there has been impairment by comparing the anticipated undiscounted future net cash flows to the related asset group’s carrying value. If an asset is considered impaired, the asset will be written down to the determined fair value based on discounted cash flows. The Company also periodically reviews the useful lives assigned to our intangible assets to ensure that our initial estimates do not exceed any revised estimated periods from which we expect to realize cash flows from the underlying intangible asset. If a change were to
occur in any of the above-mentioned factors or estimates, the likelihood of a material change in our reported results would increase. Refer to Note “6. Intangible Assets” for more information on the Company’s intangible assets.
Goodwill
Goodwill represents the excess of the purchase price of an acquired business or assets over the fair value of the identifiable assets acquired and liabilities assumed. Goodwill is not amortized, but is tested for impairment annually in the fourth quarter, or more frequently if events or circumstances indicate the carrying value may no longer be recoverable and that an impairment loss may have occurred. The Company operates as one segment, which is considered to be the sole reporting unit, and therefore goodwill is tested for impairment at the consolidated level.
The authoritative guidance allows an entity to assess qualitative factors to determine whether it is necessary to perform the quantitative goodwill impairment test. If an entity determines that as a result of the qualitative assessment that it is more likely than not (i.e. greater than 50% likelihood) that the fair value of a reporting unit is less than its carrying amount, then the quantitative test is required. Otherwise, no further testing is required. The quantitative goodwill impairment test requires the Company to estimate and compare the fair value of its reporting unit with its carrying value.
Application of the goodwill impairment test requires judgments, including: identification of the reporting units, assigning goodwill to reporting units, a qualitative assessment to determine whether there are any impairment indicators, and determining the fair value of each reporting unit. Qualitative factors may include, but are not limited to, macroeconomic conditions, industry conditions, the competitive environment, changes in the market for the Company’s products and services, regulatory and political developments, cost factors, and entity specific factors such as strategies, overall financial performance (both current and projected) and market capitalization. In the fourth quarter of 2022 and 2021, the Company performed qualitative assessments for goodwill impairment and determined there were no indicators of impairment. Refer to Note “5. Business Combinations” and Note “7. Goodwill” for more information.
Revenue Recognition
Revenue is primarily comprised of product revenue net of returns, discounts, administration fees and sales rebates. Under ASC 606, the Company recognizes revenue when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Revenue from product sales is recognized either on the date of shipment or the date of receipt by the customer, but is deferred for certain transactions when control has not yet transferred. With respect to products that the Company consigns to hospitals, which primarily consist of coils, the Company recognizes revenue at the time hospitals utilize products in a procedure.
Certain arrangements with customers contain multiple performance obligations. For these contracts, revenue is allocated to each performance obligation based on its relative standalone selling price. Standalone selling prices are based on observable prices at which the Company separately sells the products or services. If a standalone selling price is not directly observable, then the Company estimates the standalone selling prices considering entity-specific factors including, but not limited to, the expected cost and margin of the products and services, geographies, and other market conditions. The use of alternative estimates could result in a different amount of revenue deferral.
Deferred revenue represents amounts that the Company has already invoiced and are ultimately expected to be recognized as revenue, but for which not all revenue recognition criteria have been met. As of December 31, 2022 and December 31, 2021, respectively, the Company's deferred revenue balance was primarily relating to the license agreement revenue with our partner in China.
Revenue is recorded at the net sales price, which includes estimates of variable consideration such as product returns utilizing historical return rates, rebates, discounts, and other adjustments to net revenue. To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price. Variable consideration is included in revenue only to the extent that it is probable that a significant reversal of the revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved.
The Company’s terms and conditions permit product returns and exchanges. The Company bases its estimates for sales returns on actual historical returns over the prior three years and they are recorded as reductions in revenue at the time of sale. Upon recognition, the Company reduces revenue and cost of revenue for the estimated return. Return rates can fluctuate over time, but are sufficiently predictable to allow the Company to estimate expected future product returns.
For more information and disclosures on the Company’s revenue, refer to Note “16. Revenues.”
Shipping Costs
Shipping and handling costs charged to customers are recorded as revenue. Shipping and handling costs are included in cost of revenue.
Research and Development (“R&D”) Costs
R&D costs primarily consist of product development, clinical and regulatory expenses, materials, depreciation and other costs associated with the development of the Company’s products. R&D costs also include related personnel and consultants’ salaries, benefits and related costs, including stock-based compensation. The Company expenses R&D costs as they are incurred.
The Company’s clinical trial accruals are based on estimates of patient enrollment and related costs at clinical investigator sites. The Company estimates preclinical and clinical trial expenses based on the services performed pursuant to contracts with research institutions and clinical research organizations that conduct and manage preclinical studies and clinical trials on its behalf. In accruing service fees, the Company estimates the time period over which services will be performed and the level of patient enrollment and activity expended in each period. If the actual timing of the performance of services or the level of effort varies from the estimate, the Company will adjust the accrual accordingly. Payments made to third parties under these arrangements in advance of the receipt of the related services are recorded as prepaid expenses until the services are rendered.
Internal Use Software
The Company capitalizes certain costs incurred for the development of computer software for internal use. These costs generally relate to third-party software as well as the internal development of software associated with our REAL Immersive System offerings. The Company capitalizes these costs when it is determined that it is probable that the project will be completed and the software will be used to perform the function intended, and the preliminary project stage is completed. Capitalized internal use software development costs are included in Property and equipment, net within the consolidated balance sheets.
Capitalized internal use software is amortized on a straight-line basis over its estimated useful life. For software that supports our REAL Immersive System, the amortization expense is recorded in cost of revenue within the consolidated statements of operations. Costs related to the preliminary project stage, post-implementation, training and maintenance are expensed as incurred.
Cloud Computing Arrangements
The Company capitalizes certain implementation costs incurred in agreements that qualify as cloud computing arrangements. The cost expenditures for implementation, set-up, and other upfront costs incurred in a cloud computing arrangement that is hosted by the vendor are capitalized and are recorded in prepaid expenses and other current assets and other non-current assets in our consolidated balance sheets. Such costs are amortized over the life of the related cloud computing arrangement.
As of December 31, 2022 and 2021, approximately $4.6 million and $2.4 million, associated with these arrangements are included in prepaids and other current assets in our consolidated balance sheets, respectively, while approximately $5.1 million and $5.8 million are included in other non-current assets in our consolidated balance sheets, respectively.
Advertising Costs
Advertising costs are included in sales, general and administrative expenses and are expensed as incurred. Advertising costs were $1.1 million, $1.1 million and $0.6 million for the years ended December 31, 2022, 2021 and 2020, respectively.
Stock-Based Compensation
The Company recognizes the cost of stock-based compensation in the financial statements based upon fair value. The fair value of restricted stock and restricted stock unit (“RSU”) awards is determined based on the number of units granted and the closing price of the Company’s common stock as of the grant date. The fair value of each purchase under the employee stock purchase plan (“ESPP”) is estimated at the beginning of the offering period using the Black-Scholes option pricing model. The fair value of stock options is determined as of the grant date using the Black-Scholes option pricing model. The Company’s determination of the fair value of equity-settled awards is impacted by the price of the Company’s common stock as well as changes in assumptions regarding a number of complex and subjective variables. These variables include, but are not limited to,
the expected term that awards will remain outstanding, expected common stock price volatility over the term of the awards, risk-free interest rates and expected dividends.
The fair value of an award is recognized over the requisite service period (usually the vesting period) on a straight-line basis. Stock-based compensation expense recognized at fair value includes the impact of estimated forfeitures. The Company estimates future forfeitures at the date of grant and revises the estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates. To the extent actual forfeiture results differ from the estimates, the difference is recorded as a cumulative adjustment in the period forfeiture estimates are revised. No compensation cost is recorded for awards that do not vest.
The Company accounts for stock-based compensation issued to non-employees by recognizing the fair value of non-employee awards over the requisite service period (usually the vesting period) on a straight-line basis. Therefore, equity instruments issued to non-employees are recorded at their fair value on the grant date in the same manner as employee awards. The fair value of these equity instruments is expensed over the service period.
Estimates of the fair value of equity-settled awards as of the grant date using valuation models, such as the Black-Scholes option pricing model, are affected by assumptions regarding a number of complex variables. Changes in the assumptions can materially affect the fair value of the award and ultimately how much stock-based compensation expense is recognized. These inputs are subjective and generally require significant analysis and judgment to develop. For all stock options granted prior to the Company’s IPO, the Company estimated the volatility data based on a study of publicly traded industry peer companies. For purposes of identifying these peer companies, the Company considered the industry, stage of development, size and financial leverage of potential comparable companies. The risk-free interest rate is based on the yield available on U.S. Treasury zero-coupon issues similar in duration to the expected term of the equity-settled award. For all stock options granted prior to the IPO, the Company used the Staff Accounting Bulletin, No. 110 (“SAB 110”) simplified method to calculate the expected term, which is the average of the contractual term and vesting period. For stock options granted post-IPO, the Company used its historical data to calculate the expected term and volatility used in the valuation of options.
Income Taxes
The Company accounts for income taxes using the asset and liability method, whereby deferred tax asset (“DTA”) and liability account balances are determined based on differences between the financial reporting and tax bases of assets and liabilities, and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance to reduce the net DTAs to their estimated realizable value.
The calculation of the Company’s current provision for income taxes involves the use of estimates, assumptions and judgments while taking into account current tax laws, interpretation of current tax laws and possible outcomes of future tax audits. The Company has established reserves to address potential exposures related to tax positions that could be challenged by tax authorities. Although the Company believes its estimates, assumptions and judgments to be reasonable, any changes in tax law or its interpretation of tax laws and the resolutions of potential tax audits could significantly impact the amounts provided for income taxes in the Company’s consolidated financial statements.
The calculation of the Company’s DTA balance involves the use of estimates, assumptions and judgments while taking into account estimates of the amounts and type of future taxable income. Actual future operating results and the underlying amount and type of income could differ materially from the Company’s estimates, assumptions and judgments thereby impacting the Company’s financial position and results of operations.
The Company follows the guidance relating to accounting for uncertainty in income taxes, which prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of uncertain tax positions taken or expected to be taken in the Company’s income tax return, and also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods and disclosure.
The Company includes interest and penalties related to unrecognized tax benefits within income tax expense in the accompanying consolidated statements of operations.
Comprehensive Loss
Comprehensive (loss) income consists of net (loss) income, unrealized gains or losses on available-for-sale investments and the effects of foreign currency translation adjustments. The Company presents comprehensive (loss) income and its components in the consolidated statements of comprehensive (loss) income.
Net (Loss) Income Per Share of Common Stock
The Company’s basic net (loss) income attributable to Penumbra, Inc. per share is calculated by dividing the net (loss) income attributable to Penumbra, Inc. per share by the weighted average number of shares of common stock outstanding for the period. The diluted net (loss) income per share attributable to Penumbra, Inc. is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period. For purposes of this calculation, options to purchase common stock, restricted stock and restricted stock units are considered common stock equivalents.
Leases
The Company determines if an arrangement is a lease at inception. In addition, the Company determines whether leases meet the classification criteria of a finance or operating lease at the lease commencement date considering: (1) whether the lease transfers ownership of the underlying asset to the lessee at the end of the lease term, (2) whether the lease contains a bargain purchase option, (3) whether the lease term is for a major part of the remaining economic life of the underlying asset, (4) whether the present value of the sum of the lease payments and residual value guaranteed by the lessee equals or exceeds substantially all of the fair value of the underlying asset, and (5) whether the underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. As of December 31, 2022, the Company's lease population consisted of operating and finance real estate, equipment and vehicle leases.
Operating leases are included in operating lease right-of-use assets, current operating lease liabilities, and non-current operating lease liabilities in our consolidated balance sheet. Finance leases are included in finance lease right-of-use assets, current finance lease liabilities, and non-current finance lease liabilities in our consolidated balance sheet. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. In determining the present value of lease payments, the Company uses its incremental borrowing rate which requires management’s judgement as the rate implicit in the lease is generally not readily determinable. The determination of the Company’s incremental borrowing rate requires management judgment including, the development of a synthetic credit rating and cost of debt as the Company currently does not carry any debt. The operating lease ROU assets also include adjustments for prepayments, accrued lease payments and exclude lease incentives. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. Operating lease cost is recognized on a straight-line basis over the expected lease term. Finance lease cost is recognized as depreciation expense on a straight-line basis over the expected lease term and interest expense using the accelerated interest method of recognition. Lease agreements that include lease and non-lease components are accounted for as a single lease component. Lease agreements with a non-cancelable term of less than 12 months are not recorded on the Company’s consolidated balance sheet. For more information about the impact of adoption and disclosures on the Company’s leases, refer to Note “9. Leases.”
v3.22.4
Investments and Fair Value of Financial Instruments
12 Months Ended
Dec. 31, 2022
Fair Value Disclosures [Abstract]  
Investments and Fair Value of Financial Instruments
3. Investments and Fair Value of Financial Instruments
Marketable Investments
The Company’s marketable investments have been classified and accounted for as available-for-sale. The Company’s marketable investments as of December 31, 2022 and 2021 were as follows (in thousands):
December 31, 2022
Securities with net gains or losses in accumulated other comprehensive income (loss)
 Cost
Gross Unrealized Gains
Gross Unrealized LossesAllowance for Credit LossFair Value
U.S. treasury14,482 — (478)— 14,004 
U.S. agency and government sponsored securities6,999 — (176)— 6,823 
U.S. states and municipalities23,460 — (501)— 22,959 
Corporate bonds76,731 — (2,345)— 74,386 
Total$121,672 $— $(3,500)$— $118,172 
December 31, 2021
Securities with net gains or losses in accumulated other comprehensive income (loss)
CostGross Unrealized
Gains
Gross Unrealized
Losses
Allowance for Credit LossFair Value
Commercial paper$20,286 $— $(10)$— $20,276 
U.S. treasury14,464 — (77)— 14,387 
U.S. agency securities and government sponsored securities11,553 (19)— 11,535 
U.S. states and municipalities39,436 39 (89)— 39,386 
Corporate bonds110,354 49 (491)— 109,912 
Total$196,093 $89 $(686)$— $195,496 
As of December 31, 2022, the total amortized cost basis of the Company’s available-for-sale securities in an unrealized loss position exceeded its fair value by $3.5 million. The Company reviewed its available-for-sale securities in an unrealized loss position and concluded that the decline in fair value was not related to credit losses and is recoverable. During the year ended December 31, 2022, no allowance for credit losses was recorded and instead the unrealized losses are reported as a component of accumulated other comprehensive loss.
The following tables present the gross unrealized losses and the fair value for those marketable investments that were in an unrealized loss position for less than and more than twelve months as of December 31, 2022 and 2021 (in thousands):
December 31, 2022
Less than 12 monthsMore than 12 monthsTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
U.S. treasury— — 14,004 (478)14,004 (478)
U.S. agency securities and government sponsored securities— — 6,823 (176)6,823 (176)
U.S. states and municipalities4,567 (68)13,772 (433)18,339 (501)
Corporate bonds15,327 (101)59,059 (2,244)74,386 (2,345)
Total$19,894 $(169)$93,658 $(3,331)$113,552 $(3,500)
December 31, 2021
Less than 12 monthsMore than 12 monthsTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Commercial paper$16,977 $(10)$— $— $16,977 $(10)
U.S. treasury14,387 (77)— — 14,387 (77)
U.S. agency securities and government sponsored securities6,985 (19)— — 6,985 (19)
U.S. states and municipalities21,924 (89)— — 21,924 (89)
Corporate bonds85,513 (491)— — 85,513 (491)
Total$145,786 $(686)$— $— $145,786 $(686)
The contractual maturities of the Company’s marketable investments as of December 31, 2022 were as follows (in thousands):
December 31, 2022
Marketable InvestmentsAmortized CostFair Value
Due in one year$58,033 $56,791 
Due in one to five years63,639 61,381 
Total$121,672 $118,172 
Fair Value of Financial Instruments
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The accounting guidance establishes a three-tiered hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:
Level 1 - Quoted prices in active markets for identical assets or liabilities.
Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
The categorization of a financial instrument within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement.
The Company classifies its cash equivalents and marketable investments within Level 1 and Level 2, as it uses quoted market prices or alternative pricing sources and models utilizing market observable inputs.
The Company determined the fair value of its Level 1 financial instruments, which are traded in active markets, using quoted market prices for identical instruments.
Marketable investments classified within Level 2 of the fair value hierarchy are valued based on other observable inputs, including broker or dealer quotations or alternative pricing sources. When quoted prices in active markets for identical assets or liabilities are not available, the Company relies on non-binding quotes from its investment managers, which are based on proprietary valuation models of independent pricing services. These models generally use inputs such as observable market data, quoted market prices for similar instruments, historical pricing trends of a security as relative to its peers. To validate the fair value determination provided by its investment managers, the Company reviews the pricing movement in the context of overall market trends and trading information from its investment managers. In addition, the Company assesses the inputs and methods used in determining the fair value in order to determine the classification of securities in the fair value hierarchy.
The Company did not hold any Level 3 marketable investments as of December 31, 2022 or December 31, 2021. Additionally, the Company did not have any financial assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2022 and 2021.
The following tables set forth the Company’s financial assets and liabilities measured at fair value by level within the fair value hierarchy (in thousands):
 As of December 31, 2022
 Level 1Level 2Level 3Fair Value
Financial Assets
Cash equivalents:
Money market funds$21,521 $— $— $21,521 
Marketable investments:
U.S. treasury14,004 — — 14,004 
U.S. agency and government sponsored securities— 6,823 — 6,823 
U.S. states and municipalities— 22,959 — 22,959 
Corporate bonds— 74,386 — 74,386 
Total$35,525 $104,168 $— $139,693 

 As of December 31, 2021
 Level 1Level 2Level 3Fair Value
Financial Assets
Cash equivalents:
Money market funds10,509 — — 10,509 
Marketable investments:
Commercial paper— 20,276 — 20,276 
U.S. treasury14,387 — — 14,387 
U.S. agency and government sponsored securities— 11,535 — 11,535 
U.S. states and municipalities— 39,386 — 39,386 
Corporate bonds— 109,912 — 109,912 
Total$24,896 $181,109 $— $206,005 
v3.22.4
Balance Sheet Components
12 Months Ended
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Balance Sheet Components
4. Balance Sheet Components
Accounts Receivable, Net
The Company’s allowance for credit losses related to accounts receivable balances was comprised of the following (in thousands):
Balance At
Beginning Of Year
Write-offs
Provision for (Benefit from) Expected Credit Losses (1)
RecoveriesBalance At
End Of Year
For the year ended:
December 31, 20202,946 (2,361)$1,613 — 2,198 
December 31, 20212,198 — $— (106)2,092 
December 31, 20222,092 — $(1,230)— 862 
(1) On January 1, 2020, the Company recorded a $1.3 million adjustment to opening retained earnings upon the adoption of ASU 2016-13.
 Inventories
The components of inventories consisted of the following (in thousands):
December 31,
20222021
Raw materials$90,786 $68,374 
Work in process26,793 18,678 
Finished goods216,427 176,452 
Inventories$334,006 $263,504 
In the fourth quarter of 2020, the Company reclassified $17.7 million of REAL Immersive System products and components from Property and equipment, net to Inventories as a result of changes in its go to market strategy. The Company classified cash flows associated with its REAL Immersive System prior to its change in its go to market strategy during the fourth quarter of 2020 as investing activities, which is consistent with the Company's intent when the cash flows occurred.
Property and Equipment, Net
Property and equipment, net consisted of the following (in thousands):
December 31,
20222021
Machinery and equipment$37,160 $30,429 
Furniture and fixtures16,042 14,360 
Leasehold improvements25,611 23,934 
Software16,863 7,989 
Computers9,841 9,457 
Construction in progress7,523 11,101 
Total property and equipment113,040 97,270 
Less: Accumulated depreciation and amortization(48,025)(38,414)
Property and equipment, net$65,015 $58,856 
Depreciation and amortization expense, excluding intangible assets and software, was $9.8 million, $9.3 million and $8.0 million for the years ended December 31, 2022, 2021 and 2020, respectively. Software amortization expense was $1.7 million, $1.0 million and $1.0 million for the years ended December 31, 2022, 2021 and 2020, respectively. The Company had accumulated software amortization of $6.3 million and $4.9 million for the years ended December 31, 2022 and 2021, respectively.
Accrued Liabilities
The following table shows the components of accrued liabilities as of December 31, 2022 and 2021 (in thousands):
 December 31, 2022December 31, 2021
Payroll and employee-related expenses$60,480 $60,015 
Accrued expenses10,902 12,245 
Deferred revenue9,158 — 
Other accrued liabilities25,760 27,536 
Total accrued liabilities$106,300 $99,796 
The following table shows the changes in the Company’s estimated product warranty accrual, included in accrued liabilities, as of December 31, 2022, 2021 and 2020 (in thousands):
December 31,
202220212020
Balance at the beginning of the year$4,310 $2,896 $2,318 
Accruals of warranties issued2,451 2,973 1,589 
Settlements of warranty claims(1,391)(1,559)(1,011)
Balance at the end of the year$5,370 $4,310 $2,896 
v3.22.4
Business Combinations
12 Months Ended
Dec. 31, 2022
Business Combination and Asset Acquisition [Abstract]  
Business Combinations
5. Business Combinations
Acquisition of Sixense Enterprises Inc.
Transaction Overview
On October 1, 2021 (the “Closing Date”), the Company closed the acquisition of Sixense Enterprises Inc. (“Sixense”) pursuant to the Agreement and Plan of Merger, dated September 17, 2021 (the “Merger Agreement”), among the Company, Sixense, Seychelles Merger Corporation, a wholly owned subsidiary of the Company, and a stockholders’ agent (the “Merger”). Sixense, a privately held company, specializes in enterprise use of virtual reality hardware and software and has been an integral partner on the development of the Company’s REAL Immersive System portfolio. The Merger allows the Company to streamline its efforts and collaborate more closely on its Immersive healthcare offerings.
The Company and Sixense formed a joint venture, MVI Health Inc. (“MVI”), in 2017 for the purpose of exploring healthcare applications of virtual reality technology. At the time of MVI’s formation, the Company contributed cash and in-kind services to MVI and Sixense contributed an exclusive license to use its technology for healthcare applications, each for a 50% equity interest in MVI. In 2018, the Company acquired 40% of the outstanding shares of MVI from Sixense and consolidated the financial results of MVI into the accompanying consolidated financial statements, with the amounts attributable to the non-controlling interest classified separately. As of the Closing Date, the Company and Sixense owned a 90% and 10% equity interest in MVI, respectively.
As a result of the Merger, Sixense became a wholly owned subsidiary of the Company and the Company acquired, among other things, the remaining 10% equity interest in MVI held by Sixense.
The Company accounted for the acquired assets and liabilities assumed from Sixense in accordance with ASC 805 and for its changes in ownership interest in MVI as an equity transaction in accordance with ASC 810. The carrying amount of the noncontrolling interest was adjusted to zero, and the difference between the acquisition date fair value of the equity interest acquired of $4.2 million and its carrying amount of $(6.2) million was recognized within additional paid in capital.
Fair Value of Consideration Transferred
The following table summarizes the Closing Date fair value of the consideration transferred (in thousands):
Fair value of common stock issued (1)
$174,133 
Fair value of replacement stock options(2)
80,693 
Consideration for settlement of pre-existing liabilities due to Sixense(3)
(3,810)
Total purchase price$251,016 
(1) The fair value of the 661,877 shares of common stock issued as part of consideration transferred was determined based on the acquisition date closing market price of the Company’s common stock of $263.09.
(2) Per ASC 805, the replacement of stock options or other share-based payment awards in conjunction with a business combination represents a modification of share-based payment awards that must be accounted for in accordance with ASC 718. As a result of the Company’s obligation to issue replacement awards, a portion of the fair-value-based measure of replacement awards is included in measuring the purchase consideration transferred in the business combination. To determine the portion of the replacement awards that is part of the purchase consideration, the Company measured the fair value of both the replacement awards and the historical awards as of the Closing Date, in accordance with ASC 718. The fair value of the replacement awards, whether vested or unvested, was included in the purchase consideration to the extent that pre-acquisition services had been
rendered. The fair value of replacement stock options assumed for which pre-acquisition services were rendered of $80.7 million was allocated to the purchase consideration and $25.8 million was recognized immediately in the post-combination financial statements as pre-acquisition services were not rendered but the vesting of all stock options was accelerated in connection with the Merger. Refer to Note “11. Stockholders’ Equity” for more information.
(3) In the connection with the Merger, the Company effectively settled pre-existing liabilities due to or on behalf of Sixense.
Fair Value of Consideration Transferred
The purchase price measurement period was closed as of September 30, 2022. The following table presents the allocation of the purchase price, reflecting immaterial measurement period adjustments recorded during the three months ended September 30, 2022 (in thousands):
Acquisition-Date Fair ValueEstimated Useful Life of Finite-Lived Intangible Assets
Tangible assets acquired and (liabilities) assumed:
Cash and cash equivalents$2,919 
Prepaid expenses and other current and non-current assets1,971 
Deferred tax assets20,678 
Deferred tax liabilities(19,398)
Accrued liabilities and other current liabilities(1,341)
Intangible assets acquired:
Developed technology62,466 8.75 years
In-process research and development20,823 
Net assets acquired88,118 
Fair value of subsidiary stock indirectly acquired through the Merger4,161 
Total net assets acquired92,279 
Goodwill158,737 
Total purchase price$251,016 
The intangible assets acquired and the fair value of the privately-held subsidiary stock indirectly acquired are Level 3 fair value measurements for which fair value is derived from valuations using inputs that are unobservable and significant to the overall fair value measurement.
The value of the intangible assets was determined based on the replacement cost method, assuming the highest and best use by a market participant which was determined to be a company outside of the healthcare industry due to the intangibles acquired relating to non-healthcare applications. This is due to Sixense having previously licensed the healthcare rights prior to the acquisition to MVI. Since there were no standalone forecasts available due to the early stage of the non-healthcare business, the Company determined the cost approach provides the most reasonable approach to determine fair value of the intangible assets. The fair value of the intangible assets acquired was based on the following significant inputs: (i) total cost and time to reconstruct a substitute asset of comparable utility adjusted for any obsolescence; (ii) a developer’s expected profit margin; and (iii) the opportunity cost lost over the period to reconstruct the substitute asset.
The acquired in-process research and development (“IPR&D”) intangible asset is accounted for as an indefinite-lived asset until the completion or abandonment of the associated research and development effort. If the research and development effort associated with the IPR&D is successfully completed and commercial feasibility is reached, then the IPR&D intangible asset will be amortized over its estimated useful life to be determined at the date the effort is completed. At the time of acquisition, we expected the acquired IPR&D would reach technological feasibility, but there can be no assurance that the commercial viability of these products will actually be achieved. During the three months ended September 30, 2022, the Company reclassified the $20.8 million in-process research and development (“IPR&D”) asset from the Sixense acquisition to a finite-lived developed technology intangible asset upon the completion of the IPR&D project and began amortizing the intangible asset over its useful life of 8.8 years. Refer to Note “6. Intangible Assets” for more information.
The finite lived developed technology intangible assets are amortized on a straight-line basis over their assigned estimated useful lives. The acquired intangible assets will not be amortized for tax purposes. As a result, a $19.4 million deferred tax liability was recorded as of December 31, 2021.
The goodwill arising from the Sixense acquisition is primarily attributed to the assembled workforce and expected synergies from future growth, which does not qualify for separate recognition as an identifiable intangible asset. Goodwill will not be deductible for tax purposes.
The fair value of the noncontrolling interest of $4.2 million was valued using the income approach and an option pricing model. The fair value of the noncontrolling interest was based on the following significant inputs: (i) the amount and timing of projected future cash flows; (ii) the discount rate used to discount those cash flows to present value; and (iii) the discount for lack of marketability.
The amount of Sixense’s net revenue and net loss included in the Company’s consolidated statements of operations was not material for the year ended December 31, 2022.
The following table presents certain unaudited pro forma information, for illustrative purposes only, for the years ended December 31, 2021 and 2020, as if Sixense had been acquired on January 1, 2020 (“Pro Forma Closing Date”). The unaudited estimated pro forma information combines the historical results of Sixense with the Company’s consolidated historical results and includes the following pro forma adjustments for the respective periods, net of tax effects: (i) the elimination of pre-acquisition transactions between Sixense and the Company; (ii) the reclassification of MVI’s losses historically presented in “Net loss attributable to non-controlling interest” to “Net loss attributable to Penumbra, Inc.,” (iii) adjustments to reflect the immediately recognized stock-based compensation expense related to the fair value of fully vested replacement stock options outstanding but for which services had not been rendered as of the Pro Forma Closing Date; and (iv) intangible asset amortization. Additionally, transaction costs incurred are assumed to have occurred on the Pro Forma Closing Date.
The pro forma information may not be indicative of what would have occurred had the acquisition taken place on January 1, 2020, and may not be indicative of the Company’s future consolidated results. Additionally, the pro forma financial information does not include the impact of possible business model changes and does not reflect the impact of synergies or business integration costs. The unaudited pro forma information is presented below (unaudited, in thousands):
Year Ended December 31, 2021Year Ended December 31, 2020
(unaudited, in thousands)
Pro forma revenues$747,840 $560,779 
Proforma net income (loss) attributable to Penumbra, Inc.$17,552 $(30,188)
Proforma net loss attributable to non-controlling interest$— $— 
Payments Related to the 2017 Crossmed Acquisition
On July 3, 2017, the Company completed the acquisition of Crossmed, a joint stock company organized under the laws of Italy, engaged in the business of distributing medical supplies and equipment in Italy, San Marino, Vatican City and Switzerland. In connection with the acquisition of Crossmed, the Company was obligated to pay additional consideration in the form of milestone payments based on Crossmed’s net revenue and incremental net revenue for each of the years ended December 31, 2017, 2018, and 2019. There was no limit on the milestone payments that could be paid out.
During the year ended December 31, 2020, the Company made its final milestone payment of $1.2 million, of which $0.5 million is presented in operating activities and $0.7 million is presented in financing activities in the consolidated statements of cash flows.
v3.22.4
Intangible Assets
12 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets
6. Intangible Assets
The following table presents details of the Company’s acquired intangible assets as of December 31, 2022 and 2021 (in thousands, except weighted-average amortization period):
As of December 31, 2022Weighted-Average Amortization PeriodGross Carrying AmountAccumulated AmortizationNet
Finite-lived intangible assets:
Developed technology8.8 years$83,289 $(10,113)$73,176 
Customer relationships15.0 years6,383 (2,340)4,043 
Trade secrets and processes20.0 years5,256 (1,314)3,942 
Other5.0 years1,646 (1,646)— 
Total intangible assets
9.6 years$96,574 $(15,413)$81,161 
As of December 31, 2021Weighted-Average
Amortization Period
Gross Carrying AmountAccumulated AmortizationNet
Finite-lived intangible assets:
Developed technology8.8 years$62,466 $(1,784)$60,682 
Customer relationships15.0 years6,762 (2,029)4,733 
Trade secrets and processes20.0 years5,256 (1,051)4,205 
Other5.0 years1,744 (1,569)175 
Total intangible assets subject to amortization9.8 years$76,228 $(6,433)$69,795 
Indefinite-lived intangible assets:
In-process research and development$20,823 $— $20,823 
Total intangible assets$97,051 $(6,433)$90,618 
The gross carrying amount and accumulated amortization of the customer relationships and other intangible assets are subject to foreign currency translation effects. The Company’s $5.3 million trade secrets and processes intangible asset was recognized in connection with a royalty buyout agreement during the first quarter of 2018, which is discussed further in Note “10. Commitments and Contingencies” and Note “11. Stockholders’ Equity.”
The Company reviews indefinite-lived intangible assets for impairment annually during the fourth quarter or more frequently if events or circumstances indicate that an impairment loss may have occurred. During the three months ended September 30, 2022, the Company reclassified a $20.8 million in-process research and development (“IPR&D”) asset from the Sixense acquisition to a finite-lived developed technology intangible asset upon the completion of the IPR&D project and began amortizing the intangible asset over its useful life of 8.8 years. Prior to reclassifying the IPR&D asset to a finite-lived intangible asset during the three months ended September 30, 2022, the Company performed an impairment analysis and determined that the IPR&D asset was not impaired.
The following table presents the amortization recorded related to the Company’s finite-lived intangible assets for the years ended December 31, 2022, 2021 and 2020 (in thousands):
 Year Ended December 31,
 202220212020
Cost of revenue$263 $263 $263 
Sales, general and administrative8,917 2,618 804 
Total$9,180 $2,881 $1,067 
As of December 31, 2022, expected amortization expense for the unamortized acquired intangible assets for the next five years and thereafter is as follows (in thousands):
Amortization Expense
2023$10,207 
202410,207 
202510,207 
202610,207 
202710,207 
Thereafter30,126 
Total amortization$81,161 
Licensed technology
During 2017, the Company entered into an exclusive technology license agreement (the “License Agreement”) that required the Company to pay an upfront payment to the licensor of $2.5 million and future revenue milestone-based payments on sales of products covered by the licensed intellectual property. The Company accounted for the transaction as an asset acquisition and recorded an indefinite-lived intangible asset as it was determined to have alternative future use. The Company recorded an indefinite-lived intangible asset equal to the total payments made and expected to be made under the License Agreement and a corresponding contingent liability for the probable future milestone payments not yet paid.
At the end of each reporting period the Company adjusted the contingent liability to reflect the amount of future milestone payments that were probable to be paid. Prior to the commercialization of products utilizing the underlying technology, any changes in the contingent liability were recorded as an adjustment between the liability balances and the gross carrying amount of the indefinite-lived intangible asset. As of December 31, 2020, there was no contingent liability balance related to probable future milestone payments under the License Agreement. As of December 31, 2019, the balance of the contingent liability related to probable future milestone payments under the License Agreement was $11.7 million, of which $0.8 million and $10.9 million were included in accrued liabilities and other non-current liabilities on the consolidated balance sheet, respectively.
Indefinite-lived intangible assets are tested for impairment at least annually during the fourth quarter or more frequently if events or changes in circumstances between annual tests indicate that it is more likely than not that the asset is impaired. During the fourth quarter of 2019, the Company completed an annual impairment analysis of the indefinite-lived intangible asset and determined that there was no impairment. The Company determined that an impairment existed in the second quarter of 2020 as a result of a triggering event in July that provided additional information about a condition that existed as of the June 30, 2020 balance sheet date. As a result, in the second quarter of 2020, the Company wrote-off the full carrying value of the indefinite-lived intangible asset and its related contingent liability, and recognized an impairment loss of $2.5 million in research and development expense in the consolidated statement of operations.
v3.22.4
Goodwill
12 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill
7. Goodwill
The following table presents the changes in goodwill during the year ended December 31, 2022 (in thousands):
Total Company
Balance as of December 31, 2021$166,388 
Foreign currency translation and other adjustments1
(342)
Balance as of December 31, 2022$166,046 
(1) Other adjustments represent measurement period adjustments to the preliminary purchase price allocation in connection with the Sixense acquisition. Refer to Note “5. Business Combinations” for more information.
Goodwill Impairment Review
The Company reviews goodwill for impairment annually during the fourth quarter, or more frequently if events or circumstances indicate that an impairment loss may have occurred. During the fourth quarter of 2022 and 2021, the Company reviewed goodwill for impairment and no impairment was identified.
v3.22.4
Indebtedness
12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
Indebtedness 8. Indebtedness
Credit Agreement
On April 24, 2020, the Company entered into a Credit Agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A., as administrative agent and lender, and Bank of America, N.A. and Citibank, N.A. as lenders. The Credit Agreement is secured and provides for up to $100 million in available revolving borrowing capacity with an option, subject to certain conditions, for the Company to increase the aggregate borrowing capacity to up to $150 million, and originally matured on April 23, 2021. During the three months ended March 31, 2021, 2022 and 2023, the Credit Agreement was amended to extend the maturity date and make other changes to the terms of the Credit Agreement. The Credit agreement currently matures on February 16, 2024. Refer to Part II, Item 9B “Other Information” in this Annual Report on Form 10-K for more information.
The revolving loans under the Credit Agreement will be available for general corporate purposes, including working capital and capital expenditures. In addition to allowing borrowings in US dollars, the Credit Agreement provides for borrowings in euros, Pounds Sterling and any other currency that is subsequently approved by JPMorgan and each lender. The initial commitment of the lenders under the Credit Agreement is $100 million. Subject to customary conditions and the approval of any lender whose commitment would be increased, the Company has the option to increase the maximum principal amount available under the Credit Agreement by up to an additional $50 million, resulting in a maximum available principal amount under the Credit Agreement of $150 million. The Credit Agreement provides a sublimit of up to $10 million for letters of credit, a sublimit of up to $10 million for swing-line loans, and a sublimit of up to $15 million for borrowings in available foreign currencies.
The Credit Agreement requires the Company to maintain a minimum fixed charge coverage ratio and to not exceed a maximum leverage ratio. As of December 31, 2022, the Company was in compliance with these requirements. As of December 31, 2022, there were no borrowings outstanding under the Credit Agreement.
v3.22.4
Leases
12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Leases
9. Leases
As of December 31, 2022, 2021 and 2020, the Company’s contracts that contained a lease consisted of real estate, equipment and vehicle leases.
The Company leases real estate for office and warehouse space under non-cancelable operating and finance leases that expire at various dates through 2036, subject to the Company’s option to renew certain leases for an additional five to fifteen years. The Company also leases other equipment and vehicles primarily under non-cancelable operating and finance leases that expire at various dates through 2027.
The following table presents the components of the Company’s lease cost, lease term and discount rate during the years ended December 31, 2022, 2021 and 2020 (in thousands, except years and percentages):
Year Ended December 31,
202220212020
Lease Cost
Operating lease cost$20,305 $11,646 $7,602 
Finance lease cost:
Amortization of right-of-use assets
3,253 3,082 2,787 
Interest on lease liabilities1,439 1,495 1,517 
Variable lease cost(1)
10,012 6,699 5,139 
Total lease costs$35,009 $22,922 $17,045 
Weighted Average Remaining Lease Term
Operating leases13.4 years13.1 years9.1 years
Finance leases11.4 years12.2 years13.5 years
Weighted Average Discount Rate
Operating leases4.94 %4.92 %6.16 %
Finance leases5.30 %5.30 %5.36 %
(1) Variable lease costs represent payments that are dependent on usage, a rate or index. Variable lease cost primarily relates to common area maintenance charges for its real estate leases as the Company does not separate lease from non-lease components.
In the second quarter of 2021, the fifteen-year term 1310 Harbor Bay Lease commenced once the building was made ready and available for its intended use. The Company determined that the 1310 Harbor Bay lease is a non-cancelable operating lease which will expire in 2036.
During the third quarter of 2021, we signed a lease for approximately thirteen years for additional space located at 620 Roseville Parkway, Roseville, California. Per the terms of the lease, improvements will be constructed and permanently affixed to the property in two phases. Phase 1 of the 620 Roseville Parkway Lease commenced once the Phase 1 premises were made ready and available for their intended use, which occurred during the first quarter of 2022. Phase 2 has not yet commenced as of December 31, 2022, and it is not anticipated to be completed in 2023 The Company determined that the 620 Roseville Parkway Lease is a non-cancelable operating lease which will expire in 2035. Upon completion of the second phase (“Phase 2”) of improvements, the Phase 2 premises will be added to the 620 Roseville Parkway Lease.
During the year ending December 31, 2022, additional office space was made available for the Company’s use at its headquarters and certain existing property leases were modified. This resulted in an increase of right-of-use (“ROU”) assets in exchange for operating leases liabilities.
The following table is a schedule, by years, of maturities of the Company's operating and finance lease liabilities as of December 31, 2022 (in thousands):
Operating Lease Payments(1)
Finance Lease Payments
Year Ending December 31:
2023$19,760 $3,277 
202419,986 3,288 
202519,827 3,216 
202619,931 2,848 
202719,828 2,739 
Thereafter192,639 20,807 
Total undiscounted lease payments291,971 36,175 
Less imputed interest(82,983)(9,390)
Present value of lease liabilities$208,988 $26,785 
(1) The table above excludes the estimated future minimum lease payments of Phase 2 of the 620 Roseville Parkway Lease due to uncertainty around when Phase 2 lease will commence and payments will be due. The total estimated lease payments of the Phase 2 lease is approximately $10.3 million.
Supplemental cash flow information related to leases during the years ended December 31, 2022, 2021 and 2020 are as follows (in thousands):
Year Ended December 31,
202220212020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$17,554 $9,690 $7,561 
Financing cash flows from finance leases$1,751 $1,451 $3,418 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$72,279 $101,510 $1,515 
Finance leases$305 $1,346 $1,632 
Leases
9. Leases
As of December 31, 2022, 2021 and 2020, the Company’s contracts that contained a lease consisted of real estate, equipment and vehicle leases.
The Company leases real estate for office and warehouse space under non-cancelable operating and finance leases that expire at various dates through 2036, subject to the Company’s option to renew certain leases for an additional five to fifteen years. The Company also leases other equipment and vehicles primarily under non-cancelable operating and finance leases that expire at various dates through 2027.
The following table presents the components of the Company’s lease cost, lease term and discount rate during the years ended December 31, 2022, 2021 and 2020 (in thousands, except years and percentages):
Year Ended December 31,
202220212020
Lease Cost
Operating lease cost$20,305 $11,646 $7,602 
Finance lease cost:
Amortization of right-of-use assets
3,253 3,082 2,787 
Interest on lease liabilities1,439 1,495 1,517 
Variable lease cost(1)
10,012 6,699 5,139 
Total lease costs$35,009 $22,922 $17,045 
Weighted Average Remaining Lease Term
Operating leases13.4 years13.1 years9.1 years
Finance leases11.4 years12.2 years13.5 years
Weighted Average Discount Rate
Operating leases4.94 %4.92 %6.16 %
Finance leases5.30 %5.30 %5.36 %
(1) Variable lease costs represent payments that are dependent on usage, a rate or index. Variable lease cost primarily relates to common area maintenance charges for its real estate leases as the Company does not separate lease from non-lease components.
In the second quarter of 2021, the fifteen-year term 1310 Harbor Bay Lease commenced once the building was made ready and available for its intended use. The Company determined that the 1310 Harbor Bay lease is a non-cancelable operating lease which will expire in 2036.
During the third quarter of 2021, we signed a lease for approximately thirteen years for additional space located at 620 Roseville Parkway, Roseville, California. Per the terms of the lease, improvements will be constructed and permanently affixed to the property in two phases. Phase 1 of the 620 Roseville Parkway Lease commenced once the Phase 1 premises were made ready and available for their intended use, which occurred during the first quarter of 2022. Phase 2 has not yet commenced as of December 31, 2022, and it is not anticipated to be completed in 2023 The Company determined that the 620 Roseville Parkway Lease is a non-cancelable operating lease which will expire in 2035. Upon completion of the second phase (“Phase 2”) of improvements, the Phase 2 premises will be added to the 620 Roseville Parkway Lease.
During the year ending December 31, 2022, additional office space was made available for the Company’s use at its headquarters and certain existing property leases were modified. This resulted in an increase of right-of-use (“ROU”) assets in exchange for operating leases liabilities.
The following table is a schedule, by years, of maturities of the Company's operating and finance lease liabilities as of December 31, 2022 (in thousands):
Operating Lease Payments(1)
Finance Lease Payments
Year Ending December 31:
2023$19,760 $3,277 
202419,986 3,288 
202519,827 3,216 
202619,931 2,848 
202719,828 2,739 
Thereafter192,639 20,807 
Total undiscounted lease payments291,971 36,175 
Less imputed interest(82,983)(9,390)
Present value of lease liabilities$208,988 $26,785 
(1) The table above excludes the estimated future minimum lease payments of Phase 2 of the 620 Roseville Parkway Lease due to uncertainty around when Phase 2 lease will commence and payments will be due. The total estimated lease payments of the Phase 2 lease is approximately $10.3 million.
Supplemental cash flow information related to leases during the years ended December 31, 2022, 2021 and 2020 are as follows (in thousands):
Year Ended December 31,
202220212020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$17,554 $9,690 $7,561 
Financing cash flows from finance leases$1,751 $1,451 $3,418 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$72,279 $101,510 $1,515 
Finance leases$305 $1,346 $1,632 
v3.22.4
Commitments and Contingencies
12 Months Ended
Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
10. Commitments and Contingencies
Purchase Commitments
As of December 31, 2022, the Company had non-cancelable purchase obligations of $7.0 million, which primarily consisted of contracts with suppliers to purchase raw materials to be used to manufacture products, of which $6.4 million were due within one year.
Royalty Obligations
In March 2005, the Company entered into a license agreement that requires the Company to make minimum royalty payments to the licensor on a quarterly basis. As of December 31, 2018, the license agreement requires minimum annual royalty payments of $0.1 million in equal quarterly installments. In July 2019, the Company amended the license agreement to extend its term for an additional ten years and to increase the required minimum annual royalty payments by $0.2 million for a required minimum annual royalty payment of $0.3 million payable in equal quarterly installments. Unless terminated earlier, the term of the amended license agreement shall expire June 30, 2029.
 In April 2012, the Company entered into an agreement that requires the Company to pay, on a quarterly basis, a 5% royalty on sales of products covered under applicable patents. The first commercial sale of covered products occurred in April 2014. Unless terminated earlier, the royalty term for each applicable product shall continue for fifteen years following the first commercial sale of such patented product, or when the applicable patent covering such product has expired, whichever is sooner.
In April 2015, the Company entered into a royalty agreement that required the Company to pay a 2% royalty on sales of certain products covered by the agreement, on a quarterly basis, in exchange for certain trade secrets and processes which were used to develop such covered products. The Company began the first commercial sale of the covered products in July 2015. In the first quarter of 2018, the Company entered into a buyout of this agreement (the “Buyout Agreement”) in which future royalty payments were canceled in exchange for shares of the Company’s common stock with a fair value of $5.3 million. The Company recorded an intangible asset equal to the $5.3 million buyout amount which will be amortized into cost of revenue over the period in which the Company receives future economic benefit. After determining that the pattern of future cash flows associated with this intangible asset could not be reliably estimated with a high level of precision, the Company concluded that the intangible asset will be amortized on a straight-line basis over its estimated useful life.
Royalty expense included in cost of sales for the years ended December 31, 2022, 2021 and 2020 was $2.5 million, $2.3 million and $2.5 million, respectively.
Contingencies
From time to time, the Company may have certain contingent liabilities that arise in the ordinary course of business. The Company accrues a liability for such matters when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. Refer to Note “3. Investments and Fair Value of Financial Instruments,” Note “5. Business Combinations” and Note “6. Intangible Assets” for more information on contingent liabilities recorded on the consolidated balance sheet.
Indemnification
The Company enters into standard indemnification arrangements in the ordinary course of business. In many such arrangements, the Company agrees to indemnify, hold harmless, and reimburse the indemnified parties for losses suffered or incurred by the indemnified parties in connection with any trade secret, copyright, patent or other intellectual property infringement claim by any third-party with respect to the Company’s technology. The Company also agrees to indemnify many indemnified parties for product defect and similar claims. The term of these indemnification agreements is generally perpetual. The maximum potential amount of future payments the Company could be required to make under these agreements is not determinable because it involves claims that may be made against the Company in the future, but have not yet been made.
The Company has entered into indemnification agreements with its directors and officers that may require the Company to indemnify its directors and officers against liabilities that may arise by reason of their status or service as directors or officers, other than liabilities arising from willful misconduct of the individual.
The Company has not incurred costs to defend lawsuits or settle claims related to these indemnification agreements. No liability associated with any of these indemnification requirements has been recorded to date.
Litigation
From time to time, the Company is subject to other claims and assessments in the ordinary course of business. The Company is not currently a party to any such litigation matter that, individually or in the aggregate, is expected to have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows.
v3.22.4
Stockholders' Equity
12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Stockholders' Equity
11. Stockholders’ Equity
Stockholders’ Equity
Preferred Stock
The Company has 5,000,000 of authorized preferred stock issuable. There is no preferred stock outstanding as of December 31, 2022 and 2021.
Common Stock
Each share of common stock is entitled to one vote. The holders of common stock are also entitled to receive dividends whenever funds are legally available and when declared by the board of directors, subject to the prior rights of holders of all classes of stock outstanding.
Issuance of Common Stock in Public Offerings
In June 2020, the Company issued and sold an aggregate of 865,963 shares of common stock at a public offering price of $166.00 per share, less the underwriters’ discounts and commissions, pursuant to an underwritten public offering. The Company received approximately $134.8 million in net cash proceeds after deducting underwriting discounts and commissions of $8.6 million and other offering expenses of $0.4 million.
Issuance of Common Stock in Connection with the Acquisition of Sixense
As consideration for the acquisition of Sixense, the Company issued 661,877 shares of its common stock as partial consideration. Additionally, on October 1, 2021, the Company converted all stock options held by Sixense service providers that would continue as service providers after the Merger into fully vested options to purchase an aggregate amount of 447,017 shares of the Company’s common stock. Please see Note “5. Business Combinations” for more information.
Stock-Based Benefit Plans
2005 Stock Plan
The Company adopted the Penumbra, Inc. 2005 Stock Plan (the “2005 Plan”) in January 2005. The 2005 Plan was subsequently amended and restated in 2006, 2007, 2008 and 2010. Under the 2005 Plan, the board of directors could grant incentive stock options (“ISOs”), non-qualified stock options (“NSOs”), and/or stock awards to eligible persons, including employees, non-employees, directors, consultants and other independent advisors who provide services to the Company. Stock purchase rights could also be granted under the 2005 Plan. The board of directors had the authority to determine to whom options would be granted, the number of options, the term and the exercise price. ISOs could only be granted to Company employees, which include officers and directors of the Company. NSOs and stock purchase rights could be granted to employees and consultants. For individuals holding more than 10% of the voting rights of all classes of stock, the exercise price for an ISO could not be less than 110% of the fair market value of a share of common stock on the date of grant. Options granted under the 2005 Plan permitted an optionee to exercise options immediately upon grant irrespective of the vesting term. Options generally vest annually at a rate of 1/4 after the first year and 1/48 per month thereafter. The term of the options is no longer than five years for ISOs, for which the grantee owns greater than 10% of the voting power of all classes of stock and no longer than 10 years for all other options. On September 17, 2015, the Penumbra, Inc. 2014 Equity Incentive Plan (as amended and restated, the “2014 Plan”) replaced the 2005 Plan and no further equity awards may be granted under the 2005 Plan. The remaining 564 shares of common stock available for issuance from the 2005 Plan were transferred to and may be granted under the 2014 Plan. As of December 31, 2022, 8,622 shares of common stock were reserved for issuance under the 2005 Plan.
2011 Equity Incentive Plan
The Company adopted the Penumbra, Inc. 2011 Equity Incentive Plan (the “2011 Plan”) in October 2011. Under the 2011 Plan, the board of directors could grant ISOs, NSOs, restricted stock, and/or RSUs to eligible persons, including employees, directors and consultants who provide services to the Company. Stock Appreciation Rights (“SAR”) could also be granted under the 2011 Plan. The board of directors had the authority to determine to whom options would be granted, the number of options, the term and the exercise price. ISOs could only be granted to Company employees, which include officers and directors of the Company. NSOs, SARs, restricted stock and RSUs could be granted to employees and consultants. For individuals holding more than 10% of the voting rights of all classes of stock, the exercise price for an ISO could not be less than 110% of the fair market value of a share of common stock on the date of grant. Stock options granted under the 2011 Plan generally have a contractual life of ten years, and generally vest over a period of four years. On September 17, 2015, the 2014
Plan replaced the 2011 Plan and no further equity awards may be granted under the 2011 Plan. The remaining 89,559 shares of common stock available for issuance under the 2011 Plan were transferred to and may be granted under the 2014 Plan. As of December 31, 2022, 58,000 shares of common stock were reserved for issuance under the 2011 Plan.
Amended and Restated 2014 Equity Incentive Plan
The Company adopted the Penumbra, Inc. 2014 Equity Incentive Plan in May 2014. The plan was amended and restated as of September 17, 2015 (as amended and restated, the “2014 Plan”). The 2014 Plan replaced the 2011 Plan and the 2005 Plan and no further equity awards may be granted under the 2011 Plan or the 2005 Plan. As of December 31, 2022, 7,321,161 shares of common stock were reserved for issuance and 6,050,161 shares of common stock were available for grant under the 2014 Plan.
Employee Stock Purchase Plan
The Penumbra, Inc. Employee Stock Purchase Plan (the “ESPP”), became effective on September 17, 2015. The ESPP initially reserved 600,000 shares of common stock for purchase under the ESPP, with the number of shares reserved for purchase increasing each year pursuant to an “evergreen” provision set forth in the ESPP. As of December 31, 2022, 839,422 shares of common stock were reserved and available for issuance under the plan. All qualifying employees of the Company and its designated subsidiaries are eligible to participate in the ESPP. Each offering to the Company’s employees to purchase stock under the ESPP will begin on each May 20 and November 20 and will end on the following November 19 and May 19, respectively, each referred to as offering periods except that the first offering period under the ESPP began on September 17, 2015 and ended on May 19, 2016. Under the ESPP, each employee may purchase shares by authorizing payroll deductions at a minimum of 1% and up to 15% of his or her eligible compensation for each pay period during the offering period. Unless the participating employee withdraws from the offering, his or her accumulated payroll deductions will be used to purchase the Company’s common stock on the last business day of the offering period at a price equal to 85% of the fair market value of the common stock on either the first or the last day of the offering period, whichever is lower, provided that no more than 2,000 shares of the Company’s common stock or such other lesser maximum number established by the ESPP administrator may be purchased by any one employee during each offering period. Under applicable tax rules, an employee may purchase no more than $25,000 worth of common stock, valued at the start of the purchase period (corresponding to an offering period), under the ESPP in any calendar year.
Early Exercises
The 2005 Plan and 2011 Plan allowed the board of directors to grant stock options that provide employee option holders the right to elect to exercise unvested options in exchange for restricted common stock. As of December 31, 2022 and 2021, there were no such early exercised unvested shares.
Stock-Based Benefit Plan Activity and Stock-Based Compensation
Stock Options
Activity of stock options under the 2005 Plan, 2011 Plan and 2014 Plan (collectively, the “Plans”) is set forth below:
Number of SharesWeighted-Average
Exercise Price
Weighted Average Remaining Contractual Life (in years)Aggregate Intrinsic Value
(in thousands)
Balance at December 31, 20211,141,814 $27.02 
Grants10,120 $197.74 
Exercised(309,004)$25.25 
Canceled/Forfeited(1,157)$22.04 
Balance at December 31, 2022841,773 $29.73 
Vested and expected to vest—December 31, 2022841,046 $29.59 2.85$162,213 
Exercisable—December 31, 2022829,678 $27.38 2.77$161,856 
The total intrinsic value of stock options exercised during the years ended December 31, 2022, 2021 and 2020 was $48.2 million, $81.1 million and $70.1 million, respectively. The intrinsic value is calculated as the difference between the estimated fair value of the Company’s common stock at the exercise date and the exercise price of the stock option.
The weighted average grant date fair value of stock options for the years ended December 31, 2022 and 2021 was $197.74 and $263.09 per share, respectively. The Company did not grant stock options during the year ended December 31, 2020.
Restricted Stock and Restricted Stock Units
The activity of unvested restricted stock units (“RSU”) under the Plans is set forth below:
Number
of Shares
Weighted Average
Grant Date
Fair Value
Unvested at December 31, 2021409,482 $210.41 
Granted275,910 187.38 
Released/Vested (151,173)192.66 
Canceled/Forfeited(38,370)212.44 
Unvested at December 31, 2022495,849 $202.84 
The fair value of the RSUs that vested during the years ended December 31, 2022, 2021 and 2020 was $28.1 million, $44.5 million and $32.1 million, respectively. As of December 31, 2022, 468,337 RSUs are expected to vest.
Employee Stock Purchase Plan
Under the ESPP, employees purchased 113,893 shares, 64,852 shares, and 77,528 shares for $13.8 million, $13.7 million, and $11.3 million during the years ended December 31, 2022, 2021, and 2020, respectively.
Stock-based Compensation
The Company uses the Black-Scholes option pricing model to determine the fair value of stock options and ESPP rights. The valuation model for stock compensation expense requires the Company to make assumptions and judgments about the variables used in the calculation including the expected term (weighted average period of time that the options granted are expected to be outstanding); expected volatility of the Company’s common stock and an assumed risk-free interest rate.
The Company used the following assumptions in its Black-Scholes option pricing model to determine the fair value of stock options and ESPP rights:
Stock OptionsESPP Rights
Year Ended December 31,Year Ended December 31,
20222021202220212020
Expected term (in years)5.622.850.500.500.50
Expected volatility42 %42 %46%43%48%
Risk-free interest rate2.76 %0.38 %1.30%0.10%0.70%
Expected dividend yield— %— %0%0%0%
The Company did not grant stock options during the year ended December 31, 2020. All stock options granted by the Company during the year ended December 31, 2021, were granted as replacement stock options in connection with the Merger. Refer to Note “5. Business Combinations” for more information.
Weighted Average Expected Term. The Company’s expected term for stock options and ESPP rights is based on historical data.
Volatility. In 2022, 2021 and 2020, volatility assumptions used in the valuation of options and ESPP rights were calculated based on the historical volatility of the Company’s stock.
Risk-Free Interest Rate. The risk-free interest rate is based upon U.S. Treasury zero-coupon issues with remaining terms similar to the expected term of the stock options or ESPP rights.
Dividend Yield. The Company has never paid any dividends and does not plan to pay dividends in the foreseeable future, and therefore, used an expected dividend yield of zero in the valuation model.
Forfeitures. The Company estimates forfeitures at the time of grant, and revises those estimates in subsequent periods if actual forfeitures differ from those estimates. The Company uses historical data to estimate pre-vesting forfeitures and record
stock-based compensation expense only for those awards that are expected to vest. To the extent actual forfeitures differ from the estimates, the difference will be recorded as a cumulative adjustment in the period that the estimates are revised.
The following table sets forth the stock-based compensation expense included in the consolidated statements of operations (in thousands):
 Year Ended December 31,
 2022
2021(1)
2020
Cost of sales$3,882 $2,898 $2,304 
Research and development5,908 30,037 3,686 
Sales, general and administrative27,588 32,828 19,551 
$37,378 $65,763 $25,541 
(1) The Company recorded a $25.8 million charge to stock-based compensation related to the acceleration of vesting of all replacement stock options in connection with the Merger. Refer to Note “5. Business Combinations” for more information.
As of December 31, 2022, total unrecognized compensation cost was $101.5 million related to unvested stock-based compensation arrangements which is expected to be recognized over a weighted average period of 3.1 years.
The total stock-based compensation cost capitalized in inventory was $2.2 million, $1.8 million and $1.2 million as of December 31, 2022, 2021 and 2020, respectively.
v3.22.4
Accumulated Other Comprehensive Loss
12 Months Ended
Dec. 31, 2022
Equity [Abstract]  
Accumulated Other Comprehensive Loss
Other comprehensive (loss) income consists of two components: unrealized gains or losses on the Company’s available-for-sale marketable investments and gains or losses from foreign currency translation adjustments. Until realized and reported as a component of consolidated net (loss) income, these comprehensive loss items accumulate and are included within accumulated other comprehensive loss. Unrealized gains and losses on our marketable investments are reclassified from accumulated other comprehensive loss into earnings when realized upon sale, and are determined based on specific identification of securities sold. Gains and losses from the translation of assets and liabilities denominated in non-U.S. dollar functional currencies are included in accumulated other comprehensive loss.
The following table summarizes the changes in the accumulated balances during the period, and includes information regarding the manner in which the reclassifications out of accumulated other comprehensive loss into earnings affect our consolidated statements of comprehensive loss (in thousands):
Year Ended December 31, 2022Year Ended December 31, 2021
 Marketable
Investments
 Currency Translation
Adjustments
 Total Marketable
Investments
 Currency Translation
Adjustments
 Total
Balance, beginning of the year$(595)$(2,035)$(2,630)$647 $1,894 $2,541 
Other comprehensive (loss) income before reclassifications:
Unrealized (losses) gains — marketable investments(2,905)— (2,905)(1,437)— (1,437)
Foreign currency translation losses— (2,590)(2,590)— (3,930)(3,930)
Income tax effect — expense— 195 196 
Net of tax(2,905)(2,589)(5,494)(1,242)(3,929)(5,171)
Amounts reclassified from accumulated other comprehensive loss to consolidated net income:
Realized (loss) gain — marketable investments— — — — — — 
Income tax effect — (expense) benefit— — — — — — 
Net of tax— — — — — — 
Net current-year other comprehensive loss(2,905)(2,589)(5,494)(1,242)(3,929)(5,171)
Balance, end of the year$(3,500)$(4,624)$(8,124)$(595)$(2,035)$(2,630)
v3.22.4
Employee Benefit Plan
12 Months Ended
Dec. 31, 2022
Retirement Benefits [Abstract]  
Employee Benefit Plan 13. Employee Benefit Plan The Company offers a retirement savings plan under Section 401(k) of the Internal Revenue Code (“IRC”) to its eligible U.S. employees whereby they may contribute up to the maximum amount permitted by the IRC. The Company makes 401(k) matching contributions of eligible compensation under the plan, subject to a maximum dollar threshold. Contribution expense was $6.7 million, $5.6 million, and $4.5 million for the years ended December 31, 2022, 2021 and 2020, respectively.
v3.22.4
Income Taxes
12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes
14. Income Taxes
The Company’s income tax (benefit) expense, deferred tax assets and liabilities, and reserves for unrecognized tax benefits reflect management’s best assessment of estimated current and future taxes to be paid. The Company is subject to income taxes in both the United States and foreign jurisdictions. Significant judgments and estimates are required in determining the consolidated income tax (benefit) expense.
The Company is incorporated in the United States and operates in various countries with different tax laws and rates. A portion of the Company’s income or (loss) before taxes and the (benefit from) provision for income taxes are generated from international operations.
Income (loss) before income taxes and equity in losses of unconsolidated investee for the years ended December 31, 2022, 2021 and 2020 is summarized as follows (in thousands):
Year Ended December 31,
202220212020
United States$(1,837)$(15,155)$(40,278)
Foreign5,729 4,653 2,260 
Total income (loss) before income taxes$3,892 $(10,502)$(38,018)
Income tax (benefit) or provision in 2022, 2021 and 2020 is comprised of federal, state, and foreign taxes.
The components of the (benefit from) provision for income taxes are summarized as follows (in thousands):
Year Ended December 31,
202220212020
Current:
Federal$1,672 $44 $(302)
State1,428 439 357 
Foreign1,725 1,345 907 
Total current$4,825 $1,828 $962 
Deferred:
Federal1,905 (13,698)(18,129)
State(360)(1,131)(1,488)
Foreign(476)(124)(106)
Total deferred$1,069 $(14,953)$(19,723)
Provision for (benefit from) income taxes$5,894 $(13,125)$(18,761)
The Company’s actual (benefit from) or provision for tax differed from the amounts computed by applying the Company’s U.S. federal statutory income tax rate to pretax income as a result of the following:
Year Ended December 31,
2022
2021(1)
2020(1)
Income tax at federal statutory rate21.0 %21.0 %21.0 %
State income taxes, net of federal benefit15.9 7.6 3.2 
Rate differential on foreign operations(11.7)(2.7)(0.3)
Foreign taxes(6.9)1.3 (1.0)
Mutual agreement procedure adjustment— 2.1 — 
Prepaid tax ASC 810-1051.9 (0.3)0.8 
Stock-based compensation72.9 86.1 26.8 
Global intangible low-taxed income (“GILTI”)
— (6.5)— 
Non-deductible parking expenses6.9 (1.5)(0.4)
Permanent differences(3.3)(1.2)(1.5)
Other4.7 0.9 0.7 
Change in valuation allowance— 18.2 — 
Effective tax rate151.4 %125.0 %49.3 %
(1) The 2020 and 2021 effective tax rate reconciliations have been updated to conform to the 2022 presentation.
Deferred income tax assets and liabilities consist of the following (in thousands):
December 31,
20222021
Deferred tax assets:
Net operating loss carryforwards$37,290 $55,461 
Tax credits41,934 31,969 
Accruals and reserves9,236 9,521 
Capitalized research expenses22,960 — 
Stock-based compensation12,478 21,886 
Translation adjustment174 173 
UNICAP adjustments10,810 8,715 
ASC 842 Lease Liabilities57,161 41,919 
Other2,727 1,688 
Gross deferred tax assets194,770 171,332 
Valuation allowance(46,693)(37,110)
Total deferred tax assets148,077 134,222 
Deferred tax liabilities:
Depreciation and amortization(29,781)(28,159)
ASC 842 Lease ROU Assets(54,786)(40,645)
Other(257)(1,171)
Total deferred tax liabilities(84,824)(69,975)
Net deferred tax assets$63,253 $64,247 
As of December 31, 2022, the Company had approximately $148.9 million and $93.6 million of federal and state net operating loss (“NOL”) carryforwards, respectively, available to offset future taxable income. The federal NOL has an indefinite carryforward period but is limited to offset 80% of taxable income in the year utilized. The state NOL carryforwards have various carryover periods and will begin to expire as early as 2023. As of December 31, 2022, the Company had federal research and development tax credits of $27.1 million which are generally carried forward for 20 years. The Company maintained a full valuation allowance against its federal research and development tax credit DTAs net of ASC 740-10 reserve.
The Company had California state research and development tax credits of $24.9 million that may be carried forward indefinitely.
The Company generated significant domestic DTAs in recent years, primarily due to the excess tax benefits from stock option exercises and vesting of restricted stock, as well as operating expenditures including research and development. The Company assessed its ability to realize the benefits of its domestic DTAs by evaluating all available positive and negative evidence, objective and subjective in nature, including (1) cumulative results of operations in recent years, (2) sources of recent pre-tax income, (3) estimates of future taxable income, (4) respective carryback and/or carryforward periods of tax attributes available to date, and (5) limitations on NOL utilization against taxable income. Despite the domestic pretax loss in the year ended December 31, 2022, the Company determined that it would be in a three-year cumulative adjusted taxable income position, had it not been for the impact of excess tax deductions from stock-based compensation. The Company also measured its current DTA balances against estimates of future income based on objectively verifiable operating results from the Company’s recent history.
The Company considered its projections of future taxable income in conjunction with relevant provisions of the Tax Reform Act, including but not limited to, the indefinite carryforward period for NOL generated in years beginning on or after January 1, 2018. After an evaluation of all available qualitative and quantitative evidence, both positive and negative in nature, the Company concluded that sufficient future taxable income will be generated to realize the benefits of its federal DTAs prior to expiration other than its federal research and development tax credit DTAs. The tax attribute ordering rules provide that NOL must be used to offset taxable income prior to the utilization of tax credits. NOL utilization will be limited to 80% of taxable income, which may provide an opportunity to use a portion of the tax credits. Accordingly, the Company could not assert, at the required more-likely-than-not level of certainty, that it will be able to realize the full benefit of its federal research and development tax credit DTAs, with a limited 20-year carryforward period that will begin to expire in 2026. As a result, the Company maintained a full valuation allowance against its federal research and development tax credit DTAs net of ASC 740-10 reserve as of December 31, 2022. The Company intends to continue maintaining this full valuation allowance until there is sufficient evidence to support the reversal of all or some portion of these allowances. However, due to the change of IRC Section 174 requiring qualified research expenditures to be capitalized and amortized over 5 or 15 years for tax purposes, in the future, the Company may accelerate their NOL utilization. As a consequence, the Company determined there is a reasonable possibility that a portion of this valuation allowance may no longer be needed. The exact timing and amount of the valuation allowance release is highly dependent on the level of taxable income in future years. The Company will continue to closely monitor the need for this valuation allowance in each subsequent reporting period.
For years ended December 31, 2022, 2021 and 2020, a full valuation allowance remains against the Company’s California DTA balances.
The change in the Company’s deferred tax valuation allowance against net DTAs from January 1, 2020 to December 31, 2022, is as follows (in thousands):
Beginning Balance
Additions Charged To Expenses or Other Accounts(1)
Deductions Credited to Expenses or Other Accounts(2)
Ending Balance
For the year ended:
December 31, 2020$21,558 $7,322 $(112)$28,768 
December 31, 202128,768 10,386 (2,044)37,110 
December 31, 202237,110 9,583 — 46,693 
(1) Additions include current year additions charged to expenses and current year build due to increases in net DTAs, return to provision true-ups, and other adjustments.
(2) Deductions include current year releases credited to expenses and current year reductions due to decreases in net DTAs, return to provision true-ups, and other adjustments.
The Company maintains that all foreign earnings, with the exception of a portion of the earnings of its German subsidiary, are permanently reinvested outside the U.S. and therefore deferred taxes attributable to such are not provided for in the Company’s financial statements as of December 31, 2022.
IRC Sections 382 and 383 limit the use of NOL and business credits if there is a change in ownership. In 2009, the Company determined there were changes in ownership in 2004 and 2008, which did not cause any impairment of tax attributes. The NOL and tax credits gained from the 2021 Sixense Acquisition would be subject to IRC Section 382 and 383 limitations.
The Company does not believe such limitations would cause any impairment of those tax attributes. Their full tax benefit is anticipated to be realized in future years.
A reconciliation of the change in the gross unrecognized tax benefits from January 1, 2020 to December 31, 2022, is as follows (in thousands):
December 31,
202220212020
Beginning Balance$9,026 $8,625 $6,075 
Gross increase for tax positions of current year1,842 1,935 2,389 
Gross increase for tax positions of prior years481 216 304 
Gross decrease for tax positions of prior years(112)(1,411)(143)
Settlement with taxing authority— (339)— 
Ending Balance$11,237 $9,026 $8,625 

The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. As of December 31, 2022, 2021 and 2020, the Company had approximately $0.2 million, $0.2 million, and $0.3 million, respectively, of accrued interest and penalties attributable to uncertain tax positions. Included in the $11.2 million balance of unrecognized tax benefits as of December 31, 2022 is $0.9 million of tax benefit that, if recognized, would affect the effective tax rate.
The Company files U.S., state and foreign income tax returns in jurisdictions with varying statutes of limitations. Due to NOL and tax credit carryovers, the tax years ending December 31, 2004 through December 31, 2022 remain subject to examination by federal and state tax authorities. In Australia and Canada, tax years ending December 31, 2009 through December 31, 2022 generally remain subject to examination by tax authorities. In Germany, tax years ending December 31, 2018 through December 31, 2022 remain subject to examination by tax authorities.
The Company does not anticipate significant changes in the balance of gross unrecognized tax benefits over the next 12 months.
v3.22.4
Net (Loss) Income Attributable to Penumbra, Inc.
12 Months Ended
Dec. 31, 2022
Earnings Per Share [Abstract]  
Net (Loss) Income Attributable to Penumbra, Inc.
15. Net (Loss) Income Attributable to Penumbra, Inc.
The Company computed basic net (loss) income attributable to Penumbra, Inc. per share based on the weighted average number of shares of common stock outstanding during the period. The Company computed diluted net (loss) income attributable to Penumbra, Inc. per share based on the weighted average number of shares of common stock outstanding plus potentially dilutive common stock equivalents outstanding during the period. For the purposes of this calculation, stock options, restricted stock, restricted stock units and stock sold through the ESPP are considered common stock equivalents.
A reconciliation of the numerator and denominator used in the calculation of the basic and diluted net (loss) income attributable to Penumbra, Inc. is as follows (in thousands, except share and per share amounts):
Year Ended December 31,
202220212020
Numerator:
Net (loss) income attributable to Penumbra, Inc.$(2,002)$5,284 $(15,702)
Denominator:
Weighted average shares used to compute net (loss) income attributable to common stockholders:
Basic37,841,874 36,764,290 35,766,892 
Potential dilutive stock-based options and awards, as calculated using treasury stock method— 1,116,890 — 
Diluted37,841,874 37,881,180 35,766,892 
Net (loss) income attributable to Penumbra, Inc. per share from:
Basic$(0.05)$0.14 $(0.44)
Diluted$(0.05)$0.14 $(0.44)
For the years ended December 31, 2022 and 2020, outstanding stock-based awards of 2.0 million and 2.0 million shares, respectively, were excluded from the computation of diluted net loss attributable to Penumbra, Inc. per share because their effect would have been anti-dilutive. For the year ended December 31, 2021 outstanding stock-based awards of 15.0 thousand shares were excluded from the computation of diluted net income attributable to Penumbra, Inc. per share because their effect would have been anti-dilutive.
v3.22.4
Revenues
12 Months Ended
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]  
Revenues
16. Revenues
Revenue Recognition
Revenue is recognized in an amount that reflects the consideration we expect to be entitled to in exchange for goods or services. All revenue recognized in the consolidated statements of operations is considered to be revenue from contracts with customers.
The Company’s revenues, disaggregated by geography, based on the destination to which the Company ships its products, for the years ended December 31, 2022, 2021 and 2020 was as follows (in thousands):
 Year Ended December 31,
 202220212020
United States$591,715 $527,789 $400,270 
International255,418 219,801 160,142 
Total$847,133 $747,590 $560,412 
The Company’s revenues disaggregated by product category, for the years ended December 31, 2022, 2021 and 2020 was as follows (in thousands):
 Year Ended December 31,
 202220212020
Vascular$499,389 $408,878 $267,783 
Neuro347,744 338,712 292,629 
Total$847,133 $747,590 $560,412 
China Distribution and Technology Licensing Agreement
In December 2020, the Company entered into a distribution and technology licensing arrangement (the “China Distribution and Technology Licensing Agreement”) with its existing distribution partner in China. In addition to modifying the Company’s standard distribution agreement with its partner in China, the Company agreed to license the technology for certain products to its partner in China to permit the manufacturing and commercialization of such products in China as well as provide certain regulatory support. During the three months ended March 31, 2022, the Company further amended the distribution agreement and entered into an additional license agreement, pursuant to which the Company agreed to license the technology for additional products to its partner in China on substantially the same terms as the existing license agreement. Apart from the standard distribution agreement, the Company will receive fixed payments upon transferring its distinct licensed technology and providing related regulatory support and receive royalty payments on the downstream sales of the licensed products. During the years ended December 31, 2022 and 2021 the Company recognized $48.6 million and $46.9 million, respectively, under the China Distribution and Technology Licensing Agreement based on the relative standalone fair value of the performance obligations satisfied.
Performance Obligations
Delivery of products - The Company’s contracts with customers typically contain a single performance obligation, delivery of the Company’s products. Satisfaction of that performance obligation occurs when control of the promised goods transfers to the customer, which is generally upon shipment for non-consignment sale agreements and upon utilization for consignment sale agreements.
Payment terms - Our payment terms vary by the type and location of our customer. The timing between fulfillment of performance obligations and when payment is due is not significant and does not give rise to financing transactions. The Company did not have any contracts with significant financing components as of December 31, 2022.
Product returns - The Company may allow customers to return products purchased at the Company’s discretion. The Company estimates the amount of its product sales that may be returned by its customers and records this estimate as a reduction of revenue in the period in which the related product revenue is recognized. The Company currently estimates product return liabilities using its own historic sales information, trends, industry data, and other relevant data points.
Warranties - The Company offers its standard warranty to all customers and it is not available for sale on a standalone basis. The Company’s standard warranty represents its guarantee that its products function as intended, are free from defects, and comply with agreed-upon specifications and quality standards. This assurance does not constitute a service and is not a separate performance obligation.
Transaction Price
Revenue is recorded at the net sales price, which includes estimates of variable consideration such as product returns utilizing historical return rates, rebates, discounts, and other adjustments to net revenue. To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price. When determining if variable consideration should be constrained, management considers whether there are factors that could result in a significant reversal of revenue and the likelihood of a potential reversal. Variable consideration is included in revenue only to the extent that it is probable that a significant reversal of the revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. These estimates are reassessed each reporting period as required. During the year ended December 31, 2022, the Company made no material changes in estimates for variable consideration. When the Company performs shipping and handling activities after control of goods is transferred to the customer, they are considered as fulfillment activities, and costs are accrued for when the related revenue is recognized. Taxes collected from customers relating to product sales and remitted to governmental authorities are excluded from revenues.
Contract liabilities, net
The following information summarizes the Company’s contract assets and liabilities (in thousands):
December 31,
20222021
Contract liabilities, net$8,783 $5,671 
Contract liabilities represents amounts that the Company has already invoiced and are ultimately expected to be recognized as revenue, but for which not all revenue recognition criteria have been met and is recognized as the associated performance obligations are satisfied. Contract assets for the periods presented primarily represent the difference between the revenue that was recognized based on the relative standalone selling price of the related performance obligations satisfied and the contractual billing terms in the arrangements. Revenue recognized during the year ended December 31, 2022 relating to contract liabilities as of December 31, 2021 was $5.7 million.
v3.22.4
Selected Quarterly Financial Data (Unaudited)
12 Months Ended
Dec. 31, 2022
Quarterly Financial Information Disclosure [Abstract]  
Selected Quarterly Financial Data (Unaudited)
17. Selected Quarterly Financial Data (Unaudited)
The following tables provide the selected quarterly financial data for 2022 and 2021 (in thousands, except share and per share amounts):
2022 Quarters Ended
Selected Statement of Operations Data:
March 31(1)
June 30
September 30
December 31
Revenue$203,895 $208,344 $213,678 $221,216 
Cost of revenue 76,477 74,309 78,351 82,789 
Gross profit127,418 134,035 135,327 138,427 
Total operating expenses131,464 134,174 129,893 133,594 
Loss before (benefit from) for income taxes(5,104)(1,167)3,035 7,128 
Provision for (benefit from) income taxes(5,183)2,520 5,306 3,251 
Consolidated net income (loss)79 (3,687)(2,271)3,877 
Net loss attributable to non-controlling interest— — — — 
Net income (loss) attributable to Penumbra, Inc.$79 $(3,687)$(2,271)$3,877 
Net income (loss) attributable to Penumbra, Inc. per share:
Basic$— $(0.10)$(0.06)$0.10 
Diluted$— $(0.10)$(0.06)$0.10 
Weighted average shares used to compute net income (loss) per share:
Basic37,646,122 37,767,519 37,918,452 38,030,344 
Diluted38,708,657 37,767,519 37,918,452 38,896,940 
2021 Quarters Ended
Selected Statement of Operations Data:March 31June 30September 30
December 31
Revenue$169,204 $184,258 $190,117 $204,011 
Cost of revenue 57,867 65,572 70,205 78,564 
Gross profit111,337 118,686 119,912 125,447 
Total operating expenses97,874 108,374 111,131 165,504 
Income before provision for (benefit from) income taxes12,467 10,203 7,782 (40,954)
(Benefit from) income taxes1,541 1,904 (249)(16,321)
Consolidated net income 10,926 8,299 8,031 (24,633)
Net loss attributable to non-controlling interest(910)(932)(819)— 
Net income attributable to Penumbra, Inc.$11,836 $9,231 $8,850 $(24,633)
Net income per share:
Basic$0.32 $0.25 $0.24 $(0.66)
Diluted$0.32 $0.25 $0.24 $(0.66)
Weighted average shares used to compute net income (loss) per share:
Basic36,455,712 36,523,011 36,617,961 37,451,145 
Diluted37,533,520 37,582,348 37,611,355 37,451,145 
v3.22.4
Summary of Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Basis of Presentation and Consolidation Basis of Presentation and ConsolidationThe accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”).
Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and equity accounts; disclosure of contingent assets and liabilities at the date of the financial statements; and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including those related to marketable investments, allowances for credit losses, standalone selling prices used to allocate revenue to performance obligations which are not directly observable, the amount of variable consideration included in the transaction price, warranty reserve, valuation of inventories, useful lives of intangible assets and property and equipment, operating and finance lease right-of-use (“ROU”) assets and liabilities, income taxes, contingent consideration and other contingencies, among others. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other data. Actual results could differ from those estimates.
Segments Segments The Company determined its operating segment on the same basis that it uses to evaluate its performance internally. The Company has one business activity: the design, development, manufacturing and marketing of innovative medical products, and operates as one operating segment. The Company’s chief operating decision-maker (“CODM”), its Chief Executive Officer, reviews its consolidated operating results for the purpose of allocating resources and evaluating financial performance.
Foreign Currency Translation
Foreign Currency Translation
The Company’s consolidated financial statements are prepared in United States Dollars (“USD”). Its foreign subsidiaries use their local currency as their functional currency and maintain their records in the local currency. Accordingly, the assets and liabilities of these subsidiaries are translated into USD using the current exchange rates in effect at the balance sheet date and equity accounts are translated into USD using historical rates. Revenues are translated using the exchange rate as of the date of transaction and expenses are translated using the average exchange rates in effect for the year involved. The resulting foreign currency translation adjustments are recorded in accumulated other comprehensive income (loss) in the consolidated balance sheets. Transactions denominated in currencies other than the respective functional currencies are translated at exchange rates as of the date of transaction with foreign currency gains and losses recorded in other expense, net in the consolidated statements of operations. The Company realized net foreign currency transaction losses of $3.2 million, $0.5 million and a nominal amount during the years ended December 31, 2022, 2021, and 2020, respectively.
As the Company’s international operations grow, its risks associated with fluctuation in currency rates will become greater, and the Company will continue to reassess its approach to managing this risk. In addition, currency fluctuations or a weakening USD can increase the costs of the Company’s international expansion. To date, the Company has not entered into any foreign currency hedging contracts.
Concentration of Credit Risk
Concentration of Credit Risk
Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash and cash equivalents, marketable investments (as described in greater detail in this footnote under the header “Cash, Cash Equivalents and Marketable Investments” below) and accounts receivable. The majority of the Company’s cash is held by one financial institution in the U.S. in excess of federally insured limits. The Company maintained investments in money market funds that were not federally insured during the year ended December 31, 2022 and held cash in foreign entities of approximately $14.8 million and $20.2 million at December 31, 2022 and 2021, respectively, which was not federally insured.
The Company’s revenue has been derived from sales of its products in the United States and international markets. The Company uses both its own salesforce and independent distributors to sell its products. Concentrations of credit risk with respect to accounts receivable are limited due to the large number of entities comprising the Company’s customer base. The Company performs ongoing credit evaluations of its customers, including its distributors, does not require collateral, and maintains allowances for potential credit losses on customer accounts when deemed necessary.
Significant Risks and Uncertainties
Significant Risks and Uncertainties
The Company is subject to risks common to medical device companies including, but not limited to, new technological innovations, dependence on key personnel, protection of proprietary technology, compliance with government regulations, product liability, uncertainty of market acceptance of products and the potential need to obtain additional financing. The Company is dependent on third-party suppliers, in some cases single-source suppliers.
There can be no assurance that the Company’s products will continue to be accepted in the marketplace, nor can there be any assurance that any future products can be developed or manufactured at an acceptable cost and with appropriate performance characteristics, or that such products will be successfully marketed, if at all.
The Company’s products require approval or clearance from the FDA prior to commencing commercial sales in the United States. There can be no assurance that the Company’s products will receive all of the required approvals or clearances. Approvals or clearances are also required in foreign jurisdictions in which the Company sells its products. If the Company is denied such approvals or clearances or such approvals or clearances are delayed, it may have a material adverse impact on the Company’s results of operations, financial position and liquidity.
Fair Value of Financial Instruments Fair Value of Financial Instruments Carrying amounts of certain of the Company’s financial instruments, including cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable and accrued liabilities, approximate fair value due to their relatively short maturities.
Cash and Cash Equivalents Cash, Cash Equivalents and Marketable Investments The Company invests its cash primarily in highly liquid corporate debt securities, debt instruments of U.S. federal, state and municipal governments, and their agencies, in money market funds and in commercial paper. All highly liquid investments with stated maturities of three months or less from the date of purchase are classified as cash equivalents; all highly liquid investments with stated maturities of greater than three months are classified as marketable investments. The majority of the Company’s cash and investments are held in U.S. banks.
Marketable Investments The Company determines the appropriate classification of its investments in marketable investments at the time of purchase and re-evaluates such designation at each balance sheet date. The Company’s marketable investments have been classified and accounted for as available-for-sale. Investments with remaining maturities of more than one year are viewed by the Company as available to support current operations and are classified as current assets under the caption marketable investments in the accompanying consolidated balance sheets. Investments in marketable investments are carried at fair value, with the unrealized gains and losses reported as a component of accumulated other comprehensive loss. Any realized gains or losses on the sale of marketable investments are determined on a specific identification method, and such gains and losses are reflected as a component of other income (expense), net.
Impairment of Marketable Investments
As a result of the of the adoption of ASU No. 2016-13, Financial Instruments—Credit Losses (“ASU 2016-13”) during the year ended December 31, 2020, the Company is exposed to credit losses through its investments in available-for-sale securities. An investment is impaired if the fair value of the investment is less than its amortized cost basis. The Company reviews each impaired available-for-sale security held in its portfolio to determine whether the decline in fair value below its amortized cost basis is the result of credit losses or other factors. An allowance for credit losses is to be recorded as a charge to net income in an amount equal to the difference between the impaired security’s amortized cost basis and the amount expected to be collected over the lifetime of security, limited by the amount that the fair value is less than its amortized cost basis. Any remaining difference between its amortized cost basis and fair value is deemed not to be due to expected credit losses and is recorded as a component of accumulated other comprehensive loss. The Company’s impairment review considers several factors to determine if an expected credit loss is present including the discounted present value of expected cash flows of the security, the capacity to hold a security or sell a security before recovery of the decline in amortized cost, the credit rating of the security and forecasted and historical factors that affect the value of the security.
In fiscal years prior to the adoption of ASU 2016-13, unrealized gains or losses on these securities were recorded to accumulated other comprehensive loss until either the security was sold or the Company determined that the decline in value was other-than-temporary. The primary differentiating factors the Company considered when classifying impairments as either temporary or other-than-temporary impairments was the intent and ability to retain the investment in the issuer for a period of time sufficient to allow for any anticipated recovery in market value, the length of the time and the extent to which the market value of the investment had been less than cost, the financial condition, and near-term prospects of the issuer.
Accounts Receivable
Accounts Receivable
As a result of the adoption of ASU 2016-13 on January 1, 2020, accounts receivable are measured at amortized cost less the allowance for credit losses. The Company measures expected credit losses for its accounts receivables utilizing a loss-rate approach. The allowance for expected credit losses assessment requires a degree of estimation and judgement. The expected loss-rate is calculated by utilizing historical credit losses incurred as a percentage of the Company’s historical accounts receivable balances, pooled by customers with similar geographic credit risk characteristics. The loss-rate is adjusted for management’s expectations regarding current conditions and forecasts about future conditions which impact expected credit losses. The Company considers factors such as customers credit risk, geographic related risks and economic conditions that may affect a customer’s credit quality classification.
Prior to the adoption of ASU 2016-13, the Company recognized losses when a loss was incurred or deemed probable by recording a specific allowance against amounts due, and thereby reducing the net recognized receivable to the amount reasonably believed to be collectible. In fiscal years prior to the adoption of ASU 2016-13, accounts receivable were stated at invoice value less estimated allowances for doubtful accounts. The Company recognized losses when a loss was incurred or deemed probable by recording a specific allowance against amounts due, and thereby reducing the net recognized receivable to the amount reasonably believed to be collectible. The Company monitored customer payments and maintained a reserve for estimated losses resulting from its customers’ inability to make required payments considering factors such as historical experience, credit quality, age of the accounts receivable balances, geographic related risks and economic conditions that may affect a customer’s ability to pay.
Inventories InventoriesInventories are stated at the lower of cost (determined under the first-in first-out method) or net realizable value. Write-downs are provided for raw materials, components or finished goods that are determined to be excessive or obsolete. The Company regularly reviews inventory quantities in consideration of actual loss experience, projected future demand and remaining shelf life to record a provision for excess and obsolete inventory when appropriate.
Property and Equipment, net Property and Equipment, net Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or estimated useful life. Machinery and equipment and furniture and fixtures are depreciated over a five to ten year period and computers and software are depreciated over two to seven years. Upon retirement or sale, the cost and the related accumulated depreciation are removed from the consolidated balance sheet and the resulting gain or loss is reflected in operations. Maintenance and repairs are charged to consolidated statements of operations as incurred.
Impairment of Long-Lived Assets Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When such an event occurs, management determines whether there has been impairment by comparing the anticipated undiscounted future net cash flows to the related asset group’s carrying value. If an asset is considered impaired, the asset is written down to fair value, which is determined based either on discounted cash flows or appraised value, depending on the nature of the asset.
Contingent Consideration
Contingent Consideration
Certain agreements the Company enters into involve the potential payment of future consideration that is contingent upon certain performance and revenue milestones being achieved. Contingent consideration obligations incurred in connection with a business combination are recorded at their fair values on the acquisition date and remeasured at their fair values each subsequent reporting period until the related contingencies are resolved. The resulting changes in fair values are recognized generally within sales, general and administrative expense, depending on the nature of the contingent consideration liability, in the consolidated statements of operations. Asset acquisitions are accounted for using a cost accumulation and allocation model and the cost of the acquisition is allocated to the assets acquired and liabilities assumed. Contingent consideration obligations incurred in connection with an asset acquisition are recorded when it is probable that they will occur and they can be reasonably estimated.
Intangible Assets
Intangible Assets
Intangible assets primarily consist of developed technology, in-process research and development, purchased rights to licensed technology, customer relationships, and trade secrets and processes.
Indefinite-lived intangible assets consist of in-process research and development as of December 31, 2021. Indefinite-lived intangible assets are tested for impairment at least annually, in the fourth quarter, or more frequently if events or circumstances indicate that it is more likely than not that the asset is impaired. In conducting the annual impairment test for its indefinite-lived intangible assets, the Company may first perform a qualitative assessment to determine whether it is more likely than not (i.e. greater than 50% likelihood) that an indefinite-lived intangible asset is impaired. In accordance with the authoritative guidance, the Company may elect to bypass the qualitative assessment and proceed directly to the quantitative test to compare the fair value of the indefinite-lived intangible asset to the carrying amount. If the fair value of the asset is less than the carrying amount, an impairment loss would be recognized in an amount equal to the difference between the carrying amount and the fair value.
During the third quarter of 2022, the in-process research and development indefinite-lived intangible asset acquired in the fourth quarter of 2021 in connection with the Sixense acquisition was reclassified to a finite-lived developed technology intangible asset upon the completion of the in-process research and development project. In the second quarter of 2020, due to a triggering event, the acquired exclusive right to licensed technology indefinite-lived intangible asset was determined to be impaired and the Company wrote-off the full carrying amount of the asset. Refer to Note “6. Intangible Assets” for more information on the Company’s intangible assets.
Finite-lived intangible assets are amortized over the estimated economic useful lives of the assets, which is the period during which expected cash flows support the fair value of such intangible assets. The Company reviews finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets or asset group may not be recoverable. If such an event occurs, the Company determines whether there has been impairment by comparing the anticipated undiscounted future net cash flows to the related asset group’s carrying value. If an asset is considered impaired, the asset will be written down to the determined fair value based on discounted cash flows. The Company also periodically reviews the useful lives assigned to our intangible assets to ensure that our initial estimates do not exceed any revised estimated periods from which we expect to realize cash flows from the underlying intangible asset. If a change were to
occur in any of the above-mentioned factors or estimates, the likelihood of a material change in our reported results would increase.
Goodwill
Goodwill
Goodwill represents the excess of the purchase price of an acquired business or assets over the fair value of the identifiable assets acquired and liabilities assumed. Goodwill is not amortized, but is tested for impairment annually in the fourth quarter, or more frequently if events or circumstances indicate the carrying value may no longer be recoverable and that an impairment loss may have occurred. The Company operates as one segment, which is considered to be the sole reporting unit, and therefore goodwill is tested for impairment at the consolidated level.
The authoritative guidance allows an entity to assess qualitative factors to determine whether it is necessary to perform the quantitative goodwill impairment test. If an entity determines that as a result of the qualitative assessment that it is more likely than not (i.e. greater than 50% likelihood) that the fair value of a reporting unit is less than its carrying amount, then the quantitative test is required. Otherwise, no further testing is required. The quantitative goodwill impairment test requires the Company to estimate and compare the fair value of its reporting unit with its carrying value.
Application of the goodwill impairment test requires judgments, including: identification of the reporting units, assigning goodwill to reporting units, a qualitative assessment to determine whether there are any impairment indicators, and determining the fair value of each reporting unit. Qualitative factors may include, but are not limited to, macroeconomic conditions, industry conditions, the competitive environment, changes in the market for the Company’s products and services, regulatory and political developments, cost factors, and entity specific factors such as strategies, overall financial performance (both current and projected) and market capitalization.
Revenue Recognition
Revenue Recognition
Revenue is primarily comprised of product revenue net of returns, discounts, administration fees and sales rebates. Under ASC 606, the Company recognizes revenue when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Revenue from product sales is recognized either on the date of shipment or the date of receipt by the customer, but is deferred for certain transactions when control has not yet transferred. With respect to products that the Company consigns to hospitals, which primarily consist of coils, the Company recognizes revenue at the time hospitals utilize products in a procedure.
Certain arrangements with customers contain multiple performance obligations. For these contracts, revenue is allocated to each performance obligation based on its relative standalone selling price. Standalone selling prices are based on observable prices at which the Company separately sells the products or services. If a standalone selling price is not directly observable, then the Company estimates the standalone selling prices considering entity-specific factors including, but not limited to, the expected cost and margin of the products and services, geographies, and other market conditions. The use of alternative estimates could result in a different amount of revenue deferral.
Deferred revenue represents amounts that the Company has already invoiced and are ultimately expected to be recognized as revenue, but for which not all revenue recognition criteria have been met. As of December 31, 2022 and December 31, 2021, respectively, the Company's deferred revenue balance was primarily relating to the license agreement revenue with our partner in China.
Revenue is recorded at the net sales price, which includes estimates of variable consideration such as product returns utilizing historical return rates, rebates, discounts, and other adjustments to net revenue. To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price. Variable consideration is included in revenue only to the extent that it is probable that a significant reversal of the revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved.
The Company’s terms and conditions permit product returns and exchanges. The Company bases its estimates for sales returns on actual historical returns over the prior three years and they are recorded as reductions in revenue at the time of sale. Upon recognition, the Company reduces revenue and cost of revenue for the estimated return. Return rates can fluctuate over time, but are sufficiently predictable to allow the Company to estimate expected future product returns.
Shipping Costs Shipping Costs Shipping and handling costs charged to customers are recorded as revenue. Shipping and handling costs are included in cost of revenue.
Research and Development (R&D) Costs
Research and Development (“R&D”) Costs
R&D costs primarily consist of product development, clinical and regulatory expenses, materials, depreciation and other costs associated with the development of the Company’s products. R&D costs also include related personnel and consultants’ salaries, benefits and related costs, including stock-based compensation. The Company expenses R&D costs as they are incurred.
The Company’s clinical trial accruals are based on estimates of patient enrollment and related costs at clinical investigator sites. The Company estimates preclinical and clinical trial expenses based on the services performed pursuant to contracts with research institutions and clinical research organizations that conduct and manage preclinical studies and clinical trials on its behalf. In accruing service fees, the Company estimates the time period over which services will be performed and the level of patient enrollment and activity expended in each period. If the actual timing of the performance of services or the level of effort varies from the estimate, the Company will adjust the accrual accordingly. Payments made to third parties under these arrangements in advance of the receipt of the related services are recorded as prepaid expenses until the services are rendered.
Internal Use Software
The Company capitalizes certain costs incurred for the development of computer software for internal use. These costs generally relate to third-party software as well as the internal development of software associated with our REAL Immersive System offerings. The Company capitalizes these costs when it is determined that it is probable that the project will be completed and the software will be used to perform the function intended, and the preliminary project stage is completed. Capitalized internal use software development costs are included in Property and equipment, net within the consolidated balance sheets.
Capitalized internal use software is amortized on a straight-line basis over its estimated useful life. For software that supports our REAL Immersive System, the amortization expense is recorded in cost of revenue within the consolidated statements of operations. Costs related to the preliminary project stage, post-implementation, training and maintenance are expensed as incurred.
Cloud Computing Arrangements Cloud Computing ArrangementsThe Company capitalizes certain implementation costs incurred in agreements that qualify as cloud computing arrangements. The cost expenditures for implementation, set-up, and other upfront costs incurred in a cloud computing arrangement that is hosted by the vendor are capitalized and are recorded in prepaid expenses and other current assets and other non-current assets in our consolidated balance sheets. Such costs are amortized over the life of the related cloud computing arrangement.
Advertising Costs Advertising CostsAdvertising costs are included in sales, general and administrative expenses and are expensed as incurred.
Stock-Based Compensation
Stock-Based Compensation
The Company recognizes the cost of stock-based compensation in the financial statements based upon fair value. The fair value of restricted stock and restricted stock unit (“RSU”) awards is determined based on the number of units granted and the closing price of the Company’s common stock as of the grant date. The fair value of each purchase under the employee stock purchase plan (“ESPP”) is estimated at the beginning of the offering period using the Black-Scholes option pricing model. The fair value of stock options is determined as of the grant date using the Black-Scholes option pricing model. The Company’s determination of the fair value of equity-settled awards is impacted by the price of the Company’s common stock as well as changes in assumptions regarding a number of complex and subjective variables. These variables include, but are not limited to,
the expected term that awards will remain outstanding, expected common stock price volatility over the term of the awards, risk-free interest rates and expected dividends.
The fair value of an award is recognized over the requisite service period (usually the vesting period) on a straight-line basis. Stock-based compensation expense recognized at fair value includes the impact of estimated forfeitures. The Company estimates future forfeitures at the date of grant and revises the estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates. To the extent actual forfeiture results differ from the estimates, the difference is recorded as a cumulative adjustment in the period forfeiture estimates are revised. No compensation cost is recorded for awards that do not vest.
The Company accounts for stock-based compensation issued to non-employees by recognizing the fair value of non-employee awards over the requisite service period (usually the vesting period) on a straight-line basis. Therefore, equity instruments issued to non-employees are recorded at their fair value on the grant date in the same manner as employee awards. The fair value of these equity instruments is expensed over the service period.
Estimates of the fair value of equity-settled awards as of the grant date using valuation models, such as the Black-Scholes option pricing model, are affected by assumptions regarding a number of complex variables. Changes in the assumptions can materially affect the fair value of the award and ultimately how much stock-based compensation expense is recognized. These inputs are subjective and generally require significant analysis and judgment to develop. For all stock options granted prior to the Company’s IPO, the Company estimated the volatility data based on a study of publicly traded industry peer companies. For purposes of identifying these peer companies, the Company considered the industry, stage of development, size and financial leverage of potential comparable companies. The risk-free interest rate is based on the yield available on U.S. Treasury zero-coupon issues similar in duration to the expected term of the equity-settled award. For all stock options granted prior to the IPO, the Company used the Staff Accounting Bulletin, No. 110 (“SAB 110”) simplified method to calculate the expected term, which is the average of the contractual term and vesting period. For stock options granted post-IPO, the Company used its historical data to calculate the expected term and volatility used in the valuation of options.
Income Taxes
Income Taxes
The Company accounts for income taxes using the asset and liability method, whereby deferred tax asset (“DTA”) and liability account balances are determined based on differences between the financial reporting and tax bases of assets and liabilities, and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance to reduce the net DTAs to their estimated realizable value.
The calculation of the Company’s current provision for income taxes involves the use of estimates, assumptions and judgments while taking into account current tax laws, interpretation of current tax laws and possible outcomes of future tax audits. The Company has established reserves to address potential exposures related to tax positions that could be challenged by tax authorities. Although the Company believes its estimates, assumptions and judgments to be reasonable, any changes in tax law or its interpretation of tax laws and the resolutions of potential tax audits could significantly impact the amounts provided for income taxes in the Company’s consolidated financial statements.
The calculation of the Company’s DTA balance involves the use of estimates, assumptions and judgments while taking into account estimates of the amounts and type of future taxable income. Actual future operating results and the underlying amount and type of income could differ materially from the Company’s estimates, assumptions and judgments thereby impacting the Company’s financial position and results of operations.
The Company follows the guidance relating to accounting for uncertainty in income taxes, which prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of uncertain tax positions taken or expected to be taken in the Company’s income tax return, and also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods and disclosure.
The Company includes interest and penalties related to unrecognized tax benefits within income tax expense in the accompanying consolidated statements of operations.
Comprehensive Loss Comprehensive (loss) income consists of net (loss) income, unrealized gains or losses on available-for-sale investments and the effects of foreign currency translation adjustments. The Company presents comprehensive (loss) income and its components in the consolidated statements of comprehensive (loss) income.
Net (Loss) Income Per Share of Common Stock
Net (Loss) Income Per Share of Common Stock
The Company’s basic net (loss) income attributable to Penumbra, Inc. per share is calculated by dividing the net (loss) income attributable to Penumbra, Inc. per share by the weighted average number of shares of common stock outstanding for the period. The diluted net (loss) income per share attributable to Penumbra, Inc. is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period. For purposes of this calculation, options to purchase common stock, restricted stock and restricted stock units are considered common stock equivalents.
Leases
Leases
The Company determines if an arrangement is a lease at inception. In addition, the Company determines whether leases meet the classification criteria of a finance or operating lease at the lease commencement date considering: (1) whether the lease transfers ownership of the underlying asset to the lessee at the end of the lease term, (2) whether the lease contains a bargain purchase option, (3) whether the lease term is for a major part of the remaining economic life of the underlying asset, (4) whether the present value of the sum of the lease payments and residual value guaranteed by the lessee equals or exceeds substantially all of the fair value of the underlying asset, and (5) whether the underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. As of December 31, 2022, the Company's lease population consisted of operating and finance real estate, equipment and vehicle leases.
Operating leases are included in operating lease right-of-use assets, current operating lease liabilities, and non-current operating lease liabilities in our consolidated balance sheet. Finance leases are included in finance lease right-of-use assets, current finance lease liabilities, and non-current finance lease liabilities in our consolidated balance sheet. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. In determining the present value of lease payments, the Company uses its incremental borrowing rate which requires management’s judgement as the rate implicit in the lease is generally not readily determinable. The determination of the Company’s incremental borrowing rate requires management judgment including, the development of a synthetic credit rating and cost of debt as the Company currently does not carry any debt. The operating lease ROU assets also include adjustments for prepayments, accrued lease payments and exclude lease incentives. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. Operating lease cost is recognized on a straight-line basis over the expected lease term. Finance lease cost is recognized as depreciation expense on a straight-line basis over the expected lease term and interest expense using the accelerated interest method of recognition. Lease agreements that include lease and non-lease components are accounted for as a single lease component. Lease agreements with a non-cancelable term of less than 12 months are not recorded on the Company’s consolidated balance sheet.
v3.22.4
Investments and Fair Value of Financial Instruments (Tables)
12 Months Ended
Dec. 31, 2022
Fair Value Disclosures [Abstract]  
Schedule of Marketable Investments
The Company’s marketable investments have been classified and accounted for as available-for-sale. The Company’s marketable investments as of December 31, 2022 and 2021 were as follows (in thousands):
December 31, 2022
Securities with net gains or losses in accumulated other comprehensive income (loss)
 Cost
Gross Unrealized Gains
Gross Unrealized LossesAllowance for Credit LossFair Value
U.S. treasury14,482 — (478)— 14,004 
U.S. agency and government sponsored securities6,999 — (176)— 6,823 
U.S. states and municipalities23,460 — (501)— 22,959 
Corporate bonds76,731 — (2,345)— 74,386 
Total$121,672 $— $(3,500)$— $118,172 
December 31, 2021
Securities with net gains or losses in accumulated other comprehensive income (loss)
CostGross Unrealized
Gains
Gross Unrealized
Losses
Allowance for Credit LossFair Value
Commercial paper$20,286 $— $(10)$— $20,276 
U.S. treasury14,464 — (77)— 14,387 
U.S. agency securities and government sponsored securities11,553 (19)— 11,535 
U.S. states and municipalities39,436 39 (89)— 39,386 
Corporate bonds110,354 49 (491)— 109,912 
Total$196,093 $89 $(686)$— $195,496 
Schedule of the Fair Value of Marketable Investments in an Unrealized Loss Position for Less than Twelve Months
The following tables present the gross unrealized losses and the fair value for those marketable investments that were in an unrealized loss position for less than and more than twelve months as of December 31, 2022 and 2021 (in thousands):
December 31, 2022
Less than 12 monthsMore than 12 monthsTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
U.S. treasury— — 14,004 (478)14,004 (478)
U.S. agency securities and government sponsored securities— — 6,823 (176)6,823 (176)
U.S. states and municipalities4,567 (68)13,772 (433)18,339 (501)
Corporate bonds15,327 (101)59,059 (2,244)74,386 (2,345)
Total$19,894 $(169)$93,658 $(3,331)$113,552 $(3,500)
December 31, 2021
Less than 12 monthsMore than 12 monthsTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Commercial paper$16,977 $(10)$— $— $16,977 $(10)
U.S. treasury14,387 (77)— — 14,387 (77)
U.S. agency securities and government sponsored securities6,985 (19)— — 6,985 (19)
U.S. states and municipalities21,924 (89)— — 21,924 (89)
Corporate bonds85,513 (491)— — 85,513 (491)
Total$145,786 $(686)$— $— $145,786 $(686)
Schedule of Contractual Maturities of Marketable Investments
The contractual maturities of the Company’s marketable investments as of December 31, 2022 were as follows (in thousands):
December 31, 2022
Marketable InvestmentsAmortized CostFair Value
Due in one year$58,033 $56,791 
Due in one to five years63,639 61,381 
Total$121,672 $118,172 
Schedule of Fair Value of Assets and Liabilities
The following tables set forth the Company’s financial assets and liabilities measured at fair value by level within the fair value hierarchy (in thousands):
 As of December 31, 2022
 Level 1Level 2Level 3Fair Value
Financial Assets
Cash equivalents:
Money market funds$21,521 $— $— $21,521 
Marketable investments:
U.S. treasury14,004 — — 14,004 
U.S. agency and government sponsored securities— 6,823 — 6,823 
U.S. states and municipalities— 22,959 — 22,959 
Corporate bonds— 74,386 — 74,386 
Total$35,525 $104,168 $— $139,693 

 As of December 31, 2021
 Level 1Level 2Level 3Fair Value
Financial Assets
Cash equivalents:
Money market funds10,509 — — 10,509 
Marketable investments:
Commercial paper— 20,276 — 20,276 
U.S. treasury14,387 — — 14,387 
U.S. agency and government sponsored securities— 11,535 — 11,535 
U.S. states and municipalities— 39,386 — 39,386 
Corporate bonds— 109,912 — 109,912 
Total$24,896 $181,109 $— $206,005 
v3.22.4
Balance Sheet Components (Tables)
12 Months Ended
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Allowance for Doubtful Accounts
The Company’s allowance for credit losses related to accounts receivable balances was comprised of the following (in thousands):
Balance At
Beginning Of Year
Write-offs
Provision for (Benefit from) Expected Credit Losses (1)
RecoveriesBalance At
End Of Year
For the year ended:
December 31, 20202,946 (2,361)$1,613 — 2,198 
December 31, 20212,198 — $— (106)2,092 
December 31, 20222,092 — $(1,230)— 862 
(1) On January 1, 2020, the Company recorded a $1.3 million adjustment to opening retained earnings upon the adoption of ASU 2016-13.
Schedule of Inventories The components of inventories consisted of the following (in thousands):
December 31,
20222021
Raw materials$90,786 $68,374 
Work in process26,793 18,678 
Finished goods216,427 176,452 
Inventories$334,006 $263,504 
Schedule of Property and Equipment, Net Property and equipment, net consisted of the following (in thousands):
December 31,
20222021
Machinery and equipment$37,160 $30,429 
Furniture and fixtures16,042 14,360 
Leasehold improvements25,611 23,934 
Software16,863 7,989 
Computers9,841 9,457 
Construction in progress7,523 11,101 
Total property and equipment113,040 97,270 
Less: Accumulated depreciation and amortization(48,025)(38,414)
Property and equipment, net$65,015 $58,856 
Schedule of Accrued Liabilities The following table shows the components of accrued liabilities as of December 31, 2022 and 2021 (in thousands):
 December 31, 2022December 31, 2021
Payroll and employee-related expenses$60,480 $60,015 
Accrued expenses10,902 12,245 
Deferred revenue9,158 — 
Other accrued liabilities25,760 27,536 
Total accrued liabilities$106,300 $99,796 
Schedule of Estimated Product Warranty Accrual The following table shows the changes in the Company’s estimated product warranty accrual, included in accrued liabilities, as of December 31, 2022, 2021 and 2020 (in thousands):
December 31,
202220212020
Balance at the beginning of the year$4,310 $2,896 $2,318 
Accruals of warranties issued2,451 2,973 1,589 
Settlements of warranty claims(1,391)(1,559)(1,011)
Balance at the end of the year$5,370 $4,310 $2,896 
v3.22.4
Business Combinations (Tables)
12 Months Ended
Dec. 31, 2022
Business Combination and Asset Acquisition [Abstract]  
Schedule of Business Acquisition Consideration Transferred
The following table summarizes the Closing Date fair value of the consideration transferred (in thousands):
Fair value of common stock issued (1)
$174,133 
Fair value of replacement stock options(2)
80,693 
Consideration for settlement of pre-existing liabilities due to Sixense(3)
(3,810)
Total purchase price$251,016 
(1) The fair value of the 661,877 shares of common stock issued as part of consideration transferred was determined based on the acquisition date closing market price of the Company’s common stock of $263.09.
(2) Per ASC 805, the replacement of stock options or other share-based payment awards in conjunction with a business combination represents a modification of share-based payment awards that must be accounted for in accordance with ASC 718. As a result of the Company’s obligation to issue replacement awards, a portion of the fair-value-based measure of replacement awards is included in measuring the purchase consideration transferred in the business combination. To determine the portion of the replacement awards that is part of the purchase consideration, the Company measured the fair value of both the replacement awards and the historical awards as of the Closing Date, in accordance with ASC 718. The fair value of the replacement awards, whether vested or unvested, was included in the purchase consideration to the extent that pre-acquisition services had been
rendered. The fair value of replacement stock options assumed for which pre-acquisition services were rendered of $80.7 million was allocated to the purchase consideration and $25.8 million was recognized immediately in the post-combination financial statements as pre-acquisition services were not rendered but the vesting of all stock options was accelerated in connection with the Merger. Refer to Note “11. Stockholders’ Equity” for more information.
(3) In the connection with the Merger, the Company effectively settled pre-existing liabilities due to or on behalf of Sixense.
Schedule of Purchase Price Allocation The following table presents the allocation of the purchase price, reflecting immaterial measurement period adjustments recorded during the three months ended September 30, 2022 (in thousands):
Acquisition-Date Fair ValueEstimated Useful Life of Finite-Lived Intangible Assets
Tangible assets acquired and (liabilities) assumed:
Cash and cash equivalents$2,919 
Prepaid expenses and other current and non-current assets1,971 
Deferred tax assets20,678 
Deferred tax liabilities(19,398)
Accrued liabilities and other current liabilities(1,341)
Intangible assets acquired:
Developed technology62,466 8.75 years
In-process research and development20,823 
Net assets acquired88,118 
Fair value of subsidiary stock indirectly acquired through the Merger4,161 
Total net assets acquired92,279 
Goodwill158,737 
Total purchase price$251,016 
Pro Forma Information The unaudited pro forma information is presented below (unaudited, in thousands):
Year Ended December 31, 2021Year Ended December 31, 2020
(unaudited, in thousands)
Pro forma revenues$747,840 $560,779 
Proforma net income (loss) attributable to Penumbra, Inc.$17,552 $(30,188)
Proforma net loss attributable to non-controlling interest$— $— 
v3.22.4
Intangible Assets (Tables)
12 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Finite-lived Intangible Assets
The following table presents details of the Company’s acquired intangible assets as of December 31, 2022 and 2021 (in thousands, except weighted-average amortization period):
As of December 31, 2022Weighted-Average Amortization PeriodGross Carrying AmountAccumulated AmortizationNet
Finite-lived intangible assets:
Developed technology8.8 years$83,289 $(10,113)$73,176 
Customer relationships15.0 years6,383 (2,340)4,043 
Trade secrets and processes20.0 years5,256 (1,314)3,942 
Other5.0 years1,646 (1,646)— 
Total intangible assets
9.6 years$96,574 $(15,413)$81,161 
As of December 31, 2021Weighted-Average
Amortization Period
Gross Carrying AmountAccumulated AmortizationNet
Finite-lived intangible assets:
Developed technology8.8 years$62,466 $(1,784)$60,682 
Customer relationships15.0 years6,762 (2,029)4,733 
Trade secrets and processes20.0 years5,256 (1,051)4,205 
Other5.0 years1,744 (1,569)175 
Total intangible assets subject to amortization9.8 years$76,228 $(6,433)$69,795 
Indefinite-lived intangible assets:
In-process research and development$20,823 $— $20,823 
Total intangible assets$97,051 $(6,433)$90,618 
Schedule of Indefinite-lived Intangible Assets
The following table presents details of the Company’s acquired intangible assets as of December 31, 2022 and 2021 (in thousands, except weighted-average amortization period):
As of December 31, 2022Weighted-Average Amortization PeriodGross Carrying AmountAccumulated AmortizationNet
Finite-lived intangible assets:
Developed technology8.8 years$83,289 $(10,113)$73,176 
Customer relationships15.0 years6,383 (2,340)4,043 
Trade secrets and processes20.0 years5,256 (1,314)3,942 
Other5.0 years1,646 (1,646)— 
Total intangible assets
9.6 years$96,574 $(15,413)$81,161 
As of December 31, 2021Weighted-Average
Amortization Period
Gross Carrying AmountAccumulated AmortizationNet
Finite-lived intangible assets:
Developed technology8.8 years$62,466 $(1,784)$60,682 
Customer relationships15.0 years6,762 (2,029)4,733 
Trade secrets and processes20.0 years5,256 (1,051)4,205 
Other5.0 years1,744 (1,569)175 
Total intangible assets subject to amortization9.8 years$76,228 $(6,433)$69,795 
Indefinite-lived intangible assets:
In-process research and development$20,823 $— $20,823 
Total intangible assets$97,051 $(6,433)$90,618 
Finite-lived Intangible Assets Amortization Expense The following table presents the amortization recorded related to the Company’s finite-lived intangible assets for the years ended December 31, 2022, 2021 and 2020 (in thousands):
 Year Ended December 31,
 202220212020
Cost of revenue$263 $263 $263 
Sales, general and administrative8,917 2,618 804 
Total$9,180 $2,881 $1,067 
Schedule of Future Amortization Expense As of December 31, 2022, expected amortization expense for the unamortized acquired intangible assets for the next five years and thereafter is as follows (in thousands):
Amortization Expense
2023$10,207 
202410,207 
202510,207 
202610,207 
202710,207 
Thereafter30,126 
Total amortization$81,161 
v3.22.4
Goodwill (Tables)
12 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill
The following table presents the changes in goodwill during the year ended December 31, 2022 (in thousands):
Total Company
Balance as of December 31, 2021$166,388 
Foreign currency translation and other adjustments1
(342)
Balance as of December 31, 2022$166,046 
(1) Other adjustments represent measurement period adjustments to the preliminary purchase price allocation in connection with the Sixense acquisition. Refer to Note “5. Business Combinations” for more information.
v3.22.4
Leases (Tables)
12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Schedule of Lease Cost The following table presents the components of the Company’s lease cost, lease term and discount rate during the years ended December 31, 2022, 2021 and 2020 (in thousands, except years and percentages):
Year Ended December 31,
202220212020
Lease Cost
Operating lease cost$20,305 $11,646 $7,602 
Finance lease cost:
Amortization of right-of-use assets
3,253 3,082 2,787 
Interest on lease liabilities1,439 1,495 1,517 
Variable lease cost(1)
10,012 6,699 5,139 
Total lease costs$35,009 $22,922 $17,045 
Weighted Average Remaining Lease Term
Operating leases13.4 years13.1 years9.1 years
Finance leases11.4 years12.2 years13.5 years
Weighted Average Discount Rate
Operating leases4.94 %4.92 %6.16 %
Finance leases5.30 %5.30 %5.36 %
(1) Variable lease costs represent payments that are dependent on usage, a rate or index. Variable lease cost primarily relates to common area maintenance charges for its real estate leases as the Company does not separate lease from non-lease components.
Schedule of Maturities of Operating Lease Liabilities
The following table is a schedule, by years, of maturities of the Company's operating and finance lease liabilities as of December 31, 2022 (in thousands):
Operating Lease Payments(1)
Finance Lease Payments
Year Ending December 31:
2023$19,760 $3,277 
202419,986 3,288 
202519,827 3,216 
202619,931 2,848 
202719,828 2,739 
Thereafter192,639 20,807 
Total undiscounted lease payments291,971 36,175 
Less imputed interest(82,983)(9,390)
Present value of lease liabilities$208,988 $26,785 
(1) The table above excludes the estimated future minimum lease payments of Phase 2 of the 620 Roseville Parkway Lease due to uncertainty around when Phase 2 lease will commence and payments will be due. The total estimated lease payments of the Phase 2 lease is approximately $10.3 million.
Schedule of Maturities of Finance Lease Liabilities
The following table is a schedule, by years, of maturities of the Company's operating and finance lease liabilities as of December 31, 2022 (in thousands):
Operating Lease Payments(1)
Finance Lease Payments
Year Ending December 31:
2023$19,760 $3,277 
202419,986 3,288 
202519,827 3,216 
202619,931 2,848 
202719,828 2,739 
Thereafter192,639 20,807 
Total undiscounted lease payments291,971 36,175 
Less imputed interest(82,983)(9,390)
Present value of lease liabilities$208,988 $26,785 
(1) The table above excludes the estimated future minimum lease payments of Phase 2 of the 620 Roseville Parkway Lease due to uncertainty around when Phase 2 lease will commence and payments will be due. The total estimated lease payments of the Phase 2 lease is approximately $10.3 million.
Schedule of Supplemental Cash Flow Disclosures Supplemental cash flow information related to leases during the years ended December 31, 2022, 2021 and 2020 are as follows (in thousands):
Year Ended December 31,
202220212020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$17,554 $9,690 $7,561 
Financing cash flows from finance leases$1,751 $1,451 $3,418 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$72,279 $101,510 $1,515 
Finance leases$305 $1,346 $1,632 
v3.22.4
Stockholders' Equity (Tables)
12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Summary of Stock Option Activity Activity of stock options under the 2005 Plan, 2011 Plan and 2014 Plan (collectively, the “Plans”) is set forth below:
Number of SharesWeighted-Average
Exercise Price
Weighted Average Remaining Contractual Life (in years)Aggregate Intrinsic Value
(in thousands)
Balance at December 31, 20211,141,814 $27.02 
Grants10,120 $197.74 
Exercised(309,004)$25.25 
Canceled/Forfeited(1,157)$22.04 
Balance at December 31, 2022841,773 $29.73 
Vested and expected to vest—December 31, 2022841,046 $29.59 2.85$162,213 
Exercisable—December 31, 2022829,678 $27.38 2.77$161,856 
Summary of Unvested Restricted Stock Activity The activity of unvested restricted stock units (“RSU”) under the Plans is set forth below:
Number
of Shares
Weighted Average
Grant Date
Fair Value
Unvested at December 31, 2021409,482 $210.41 
Granted275,910 187.38 
Released/Vested (151,173)192.66 
Canceled/Forfeited(38,370)212.44 
Unvested at December 31, 2022495,849 $202.84 
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions The Company used the following assumptions in its Black-Scholes option pricing model to determine the fair value of stock options and ESPP rights:
Stock OptionsESPP Rights
Year Ended December 31,Year Ended December 31,
20222021202220212020
Expected term (in years)5.622.850.500.500.50
Expected volatility42 %42 %46%43%48%
Risk-free interest rate2.76 %0.38 %1.30%0.10%0.70%
Expected dividend yield— %— %0%0%0%
Schedule of Stock-based Compensation Expense
The following table sets forth the stock-based compensation expense included in the consolidated statements of operations (in thousands):
 Year Ended December 31,
 2022
2021(1)
2020
Cost of sales$3,882 $2,898 $2,304 
Research and development5,908 30,037 3,686 
Sales, general and administrative27,588 32,828 19,551 
$37,378 $65,763 $25,541 
(1) The Company recorded a $25.8 million charge to stock-based compensation related to the acceleration of vesting of all replacement stock options in connection with the Merger. Refer to Note “5. Business Combinations” for more information.
v3.22.4
Accumulated Other Comprehensive Loss (Tables)
12 Months Ended
Dec. 31, 2022
Equity [Abstract]  
Schedule of Accumulated Other Comprehensive (Loss) Income The following table summarizes the changes in the accumulated balances during the period, and includes information regarding the manner in which the reclassifications out of accumulated other comprehensive loss into earnings affect our consolidated statements of comprehensive loss (in thousands):
Year Ended December 31, 2022Year Ended December 31, 2021
 Marketable
Investments
 Currency Translation
Adjustments
 Total Marketable
Investments
 Currency Translation
Adjustments
 Total
Balance, beginning of the year$(595)$(2,035)$(2,630)$647 $1,894 $2,541 
Other comprehensive (loss) income before reclassifications:
Unrealized (losses) gains — marketable investments(2,905)— (2,905)(1,437)— (1,437)
Foreign currency translation losses— (2,590)(2,590)— (3,930)(3,930)
Income tax effect — expense— 195 196 
Net of tax(2,905)(2,589)(5,494)(1,242)(3,929)(5,171)
Amounts reclassified from accumulated other comprehensive loss to consolidated net income:
Realized (loss) gain — marketable investments— — — — — — 
Income tax effect — (expense) benefit— — — — — — 
Net of tax— — — — — — 
Net current-year other comprehensive loss(2,905)(2,589)(5,494)(1,242)(3,929)(5,171)
Balance, end of the year$(3,500)$(4,624)$(8,124)$(595)$(2,035)$(2,630)
v3.22.4
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule of Income or (Loss) before Income Taxes Income (loss) before income taxes and equity in losses of unconsolidated investee for the years ended December 31, 2022, 2021 and 2020 is summarized as follows (in thousands):
Year Ended December 31,
202220212020
United States$(1,837)$(15,155)$(40,278)
Foreign5,729 4,653 2,260 
Total income (loss) before income taxes$3,892 $(10,502)$(38,018)
Components of the (Benefit from) Provision for Income Taxes The components of the (benefit from) provision for income taxes are summarized as follows (in thousands):
Year Ended December 31,
202220212020
Current:
Federal$1,672 $44 $(302)
State1,428 439 357 
Foreign1,725 1,345 907 
Total current$4,825 $1,828 $962 
Deferred:
Federal1,905 (13,698)(18,129)
State(360)(1,131)(1,488)
Foreign(476)(124)(106)
Total deferred$1,069 $(14,953)$(19,723)
Provision for (benefit from) income taxes$5,894 $(13,125)$(18,761)
Schedule of Effective Income Tax Reconciliation
The Company’s actual (benefit from) or provision for tax differed from the amounts computed by applying the Company’s U.S. federal statutory income tax rate to pretax income as a result of the following:
Year Ended December 31,
2022
2021(1)
2020(1)
Income tax at federal statutory rate21.0 %21.0 %21.0 %
State income taxes, net of federal benefit15.9 7.6 3.2 
Rate differential on foreign operations(11.7)(2.7)(0.3)
Foreign taxes(6.9)1.3 (1.0)
Mutual agreement procedure adjustment— 2.1 — 
Prepaid tax ASC 810-1051.9 (0.3)0.8 
Stock-based compensation72.9 86.1 26.8 
Global intangible low-taxed income (“GILTI”)
— (6.5)— 
Non-deductible parking expenses6.9 (1.5)(0.4)
Permanent differences(3.3)(1.2)(1.5)
Other4.7 0.9 0.7 
Change in valuation allowance— 18.2 — 
Effective tax rate151.4 %125.0 %49.3 %
(1) The 2020 and 2021 effective tax rate reconciliations have been updated to conform to the 2022 presentation.
Schedule of Deferred Tax Assets and Liabilities Deferred income tax assets and liabilities consist of the following (in thousands):
December 31,
20222021
Deferred tax assets:
Net operating loss carryforwards$37,290 $55,461 
Tax credits41,934 31,969 
Accruals and reserves9,236 9,521 
Capitalized research expenses22,960 — 
Stock-based compensation12,478 21,886 
Translation adjustment174 173 
UNICAP adjustments10,810 8,715 
ASC 842 Lease Liabilities57,161 41,919 
Other2,727 1,688 
Gross deferred tax assets194,770 171,332 
Valuation allowance(46,693)(37,110)
Total deferred tax assets148,077 134,222 
Deferred tax liabilities:
Depreciation and amortization(29,781)(28,159)
ASC 842 Lease ROU Assets(54,786)(40,645)
Other(257)(1,171)
Total deferred tax liabilities(84,824)(69,975)
Net deferred tax assets$63,253 $64,247 
Summary of Valuation Allowance
The change in the Company’s deferred tax valuation allowance against net DTAs from January 1, 2020 to December 31, 2022, is as follows (in thousands):
Beginning Balance
Additions Charged To Expenses or Other Accounts(1)
Deductions Credited to Expenses or Other Accounts(2)
Ending Balance
For the year ended:
December 31, 2020$21,558 $7,322 $(112)$28,768 
December 31, 202128,768 10,386 (2,044)37,110 
December 31, 202237,110 9,583 — 46,693 
(1) Additions include current year additions charged to expenses and current year build due to increases in net DTAs, return to provision true-ups, and other adjustments.
(2) Deductions include current year releases credited to expenses and current year reductions due to decreases in net DTAs, return to provision true-ups, and other adjustments.
Schedule of Unrecognized Tax Benefits A reconciliation of the change in the gross unrecognized tax benefits from January 1, 2020 to December 31, 2022, is as follows (in thousands):
December 31,
202220212020
Beginning Balance$9,026 $8,625 $6,075 
Gross increase for tax positions of current year1,842 1,935 2,389 
Gross increase for tax positions of prior years481 216 304 
Gross decrease for tax positions of prior years(112)(1,411)(143)
Settlement with taxing authority— (339)— 
Ending Balance$11,237 $9,026 $8,625 
v3.22.4
Net (Loss) Income Attributable to Penumbra, Inc. (Tables)
12 Months Ended
Dec. 31, 2022
Earnings Per Share [Abstract]  
Reconciliation of the Numerator and Denominator used in the Calculation of the Basic and Diluted Earnings per Share A reconciliation of the numerator and denominator used in the calculation of the basic and diluted net (loss) income attributable to Penumbra, Inc. is as follows (in thousands, except share and per share amounts):
Year Ended December 31,
202220212020
Numerator:
Net (loss) income attributable to Penumbra, Inc.$(2,002)$5,284 $(15,702)
Denominator:
Weighted average shares used to compute net (loss) income attributable to common stockholders:
Basic37,841,874 36,764,290 35,766,892 
Potential dilutive stock-based options and awards, as calculated using treasury stock method— 1,116,890 — 
Diluted37,841,874 37,881,180 35,766,892 
Net (loss) income attributable to Penumbra, Inc. per share from:
Basic$(0.05)$0.14 $(0.44)
Diluted$(0.05)$0.14 $(0.44)
v3.22.4
Revenues (Tables)
12 Months Ended
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue The Company’s revenues, disaggregated by geography, based on the destination to which the Company ships its products, for the years ended December 31, 2022, 2021 and 2020 was as follows (in thousands):
 Year Ended December 31,
 202220212020
United States$591,715 $527,789 $400,270 
International255,418 219,801 160,142 
Total$847,133 $747,590 $560,412 
The Company’s revenues disaggregated by product category, for the years ended December 31, 2022, 2021 and 2020 was as follows (in thousands):
 Year Ended December 31,
 202220212020
Vascular$499,389 $408,878 $267,783 
Neuro347,744 338,712 292,629 
Total$847,133 $747,590 $560,412 
Summary of Contract Assets and Liabilities
The following information summarizes the Company’s contract assets and liabilities (in thousands):
December 31,
20222021
Contract liabilities, net$8,783 $5,671 
v3.22.4
Selected Quarterly Financial Data (Unaudited) (Tables)
12 Months Ended
Dec. 31, 2022
Quarterly Financial Information Disclosure [Abstract]  
Schedule of Quarterly Financial Information The following tables provide the selected quarterly financial data for 2022 and 2021 (in thousands, except share and per share amounts):
2022 Quarters Ended
Selected Statement of Operations Data:
March 31(1)
June 30
September 30
December 31
Revenue$203,895 $208,344 $213,678 $221,216 
Cost of revenue 76,477 74,309 78,351 82,789 
Gross profit127,418 134,035 135,327 138,427 
Total operating expenses131,464 134,174 129,893 133,594 
Loss before (benefit from) for income taxes(5,104)(1,167)3,035 7,128 
Provision for (benefit from) income taxes(5,183)2,520 5,306 3,251 
Consolidated net income (loss)79 (3,687)(2,271)3,877 
Net loss attributable to non-controlling interest— — — — 
Net income (loss) attributable to Penumbra, Inc.$79 $(3,687)$(2,271)$3,877 
Net income (loss) attributable to Penumbra, Inc. per share:
Basic$— $(0.10)$(0.06)$0.10 
Diluted$— $(0.10)$(0.06)$0.10 
Weighted average shares used to compute net income (loss) per share:
Basic37,646,122 37,767,519 37,918,452 38,030,344 
Diluted38,708,657 37,767,519 37,918,452 38,896,940 
2021 Quarters Ended
Selected Statement of Operations Data:March 31June 30September 30
December 31
Revenue$169,204 $184,258 $190,117 $204,011 
Cost of revenue 57,867 65,572 70,205 78,564 
Gross profit111,337 118,686 119,912 125,447 
Total operating expenses97,874 108,374 111,131 165,504 
Income before provision for (benefit from) income taxes12,467 10,203 7,782 (40,954)
(Benefit from) income taxes1,541 1,904 (249)(16,321)
Consolidated net income 10,926 8,299 8,031 (24,633)
Net loss attributable to non-controlling interest(910)(932)(819)— 
Net income attributable to Penumbra, Inc.$11,836 $9,231 $8,850 $(24,633)
Net income per share:
Basic$0.32 $0.25 $0.24 $(0.66)
Diluted$0.32 $0.25 $0.24 $(0.66)
Weighted average shares used to compute net income (loss) per share:
Basic36,455,712 36,523,011 36,617,961 37,451,145 
Diluted37,533,520 37,582,348 37,611,355 37,451,145 
v3.22.4
Summary of Significant Accounting Policies - Narrative (Details)
12 Months Ended
Dec. 31, 2022
USD ($)
segment
activity
financial_instituion
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Schedule of Equity Method Investments [Line Items]        
Number of business activities | activity 1      
Number of operating segments | segment 1      
Foreign currency transaction losses $ 3,200,000 $ 500,000 $ 0  
Allowance for Credit Loss 0 0 0  
Inventory write-offs and write-downs 3,445,000 2,818,000 10,571,000  
Impairment of long-lived assets $ 0 0 0  
Sales returns on actual historical returns, period 3 years      
Advertising expense $ 1,100,000 1,100,000 600,000  
Cumulative-effective adjustment recorded to retained earnings $ 998,858,000 953,927,000 637,788,000 $ 485,613,000
One Customer | Accounts Receivable | Customer Concentration Risk        
Schedule of Equity Method Investments [Line Items]        
Concentration risk (as a percent) 10.00%      
Prepaid Expenses and Other Current Assets        
Schedule of Equity Method Investments [Line Items]        
Capitalized cloud computing arrangement costs $ 4,600,000 2,400,000    
Other Assets        
Schedule of Equity Method Investments [Line Items]        
Capitalized cloud computing arrangement costs 5,100,000 5,800,000    
Retained Earnings (Accumulated Deficit)        
Schedule of Equity Method Investments [Line Items]        
Cumulative-effective adjustment recorded to retained earnings $ 43,904,000 45,906,000 $ 40,622,000 57,522,000
Cumulative Effect, Period of Adoption, Adjustment        
Schedule of Equity Method Investments [Line Items]        
Cumulative-effective adjustment recorded to retained earnings [1]       (1,198,000)
Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings (Accumulated Deficit)        
Schedule of Equity Method Investments [Line Items]        
Cumulative-effective adjustment recorded to retained earnings [1]       $ (1,198,000)
United States        
Schedule of Equity Method Investments [Line Items]        
Number of financial institutions holding cash in excess of federally insured limits | financial_instituion 1      
International        
Schedule of Equity Method Investments [Line Items]        
Cash that is not federally insured $ 14,800,000 $ 20,200,000    
Machinery and Equipment and Furniture and Fixtures | Minimum        
Schedule of Equity Method Investments [Line Items]        
Useful life of property and equipment 5 years      
Machinery and Equipment and Furniture and Fixtures | Maximum        
Schedule of Equity Method Investments [Line Items]        
Useful life of property and equipment 10 years      
Computers and Software | Minimum        
Schedule of Equity Method Investments [Line Items]        
Useful life of property and equipment 2 years      
Computers and Software | Maximum        
Schedule of Equity Method Investments [Line Items]        
Useful life of property and equipment 7 years      
[1] (1) Cumulative effect adjustments relate to the adoption of Accounting Standard Update (“ASU”) No. 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.
v3.22.4
Investments and Fair Value of Financial Instruments - Gains and Losses of Marketable Investments (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Schedule of Available-for-sale Securities [Line Items]      
Cost $ 121,672 $ 196,093  
Gross Unrealized Gains 0 89  
Gross Unrealized Losses (3,500) (686)  
Allowance for Credit Loss 0 0 $ 0
Fair Value 118,172 195,496  
Commercial paper      
Schedule of Available-for-sale Securities [Line Items]      
Cost   20,286  
Gross Unrealized Gains   0  
Gross Unrealized Losses   (10)  
Allowance for Credit Loss   0  
Fair Value   20,276  
U.S. treasury      
Schedule of Available-for-sale Securities [Line Items]      
Cost 14,482 14,464  
Gross Unrealized Gains 0 0  
Gross Unrealized Losses (478) (77)  
Allowance for Credit Loss 0 0  
Fair Value 14,004 14,387  
U.S. agency and government sponsored securities      
Schedule of Available-for-sale Securities [Line Items]      
Cost 6,999 11,553  
Gross Unrealized Gains 0 1  
Gross Unrealized Losses (176) (19)  
Allowance for Credit Loss 0 0  
Fair Value 6,823 11,535  
U.S. states and municipalities      
Schedule of Available-for-sale Securities [Line Items]      
Cost 23,460 39,436  
Gross Unrealized Gains 0 39  
Gross Unrealized Losses (501) (89)  
Allowance for Credit Loss 0 0  
Fair Value 22,959 39,386  
Corporate bonds      
Schedule of Available-for-sale Securities [Line Items]      
Cost 76,731 110,354  
Gross Unrealized Gains 0 49  
Gross Unrealized Losses (2,345) (491)  
Allowance for Credit Loss 0 0  
Fair Value $ 74,386 $ 109,912  
v3.22.4
Investments and Fair Value of Financial Instruments - Narrative (Details) - USD ($)
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Gross Unrealized Losses $ 3,500,000 $ 686,000
Allowance for credit losses $ 0  
v3.22.4
Investments and Fair Value of Financial Instruments - Marketable Securities in an Unrealized Loss Position (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Schedule of Available-for-sale Securities [Line Items]    
Less than 12 months: Fair Value $ 19,894 $ 145,786
Less than 12 months: Gross Unrealized Losses (169) (686)
12 months or more: Fair Value 93,658 0
12 months or more: Gross Unrealized Losses (3,331) 0
Total: Fair Value 113,552 145,786
Total: Gross Unrealized Losses (3,500) (686)
Commercial paper    
Schedule of Available-for-sale Securities [Line Items]    
Less than 12 months: Fair Value   16,977
Less than 12 months: Gross Unrealized Losses   (10)
12 months or more: Fair Value   0
12 months or more: Gross Unrealized Losses   0
Total: Fair Value   16,977
Total: Gross Unrealized Losses   (10)
U.S. treasury    
Schedule of Available-for-sale Securities [Line Items]    
Less than 12 months: Fair Value 0 14,387
Less than 12 months: Gross Unrealized Losses 0 (77)
12 months or more: Fair Value 14,004 0
12 months or more: Gross Unrealized Losses (478) 0
Total: Fair Value 14,004 14,387
Total: Gross Unrealized Losses (478) (77)
U.S. agency and government sponsored securities    
Schedule of Available-for-sale Securities [Line Items]    
Less than 12 months: Fair Value 0 6,985
Less than 12 months: Gross Unrealized Losses 0 (19)
12 months or more: Fair Value 6,823 0
12 months or more: Gross Unrealized Losses (176) 0
Total: Fair Value 6,823 6,985
Total: Gross Unrealized Losses (176) (19)
U.S. states and municipalities    
Schedule of Available-for-sale Securities [Line Items]    
Less than 12 months: Fair Value 4,567 21,924
Less than 12 months: Gross Unrealized Losses (68) (89)
12 months or more: Fair Value 13,772 0
12 months or more: Gross Unrealized Losses (433) 0
Total: Fair Value 18,339 21,924
Total: Gross Unrealized Losses (501) (89)
Corporate bonds    
Schedule of Available-for-sale Securities [Line Items]    
Less than 12 months: Fair Value 15,327 85,513
Less than 12 months: Gross Unrealized Losses (101) (491)
12 months or more: Fair Value 59,059 0
12 months or more: Gross Unrealized Losses (2,244) 0
Total: Fair Value 74,386 85,513
Total: Gross Unrealized Losses $ (2,345) $ (491)
v3.22.4
Investments and Fair Value of Financial Instruments - Contractual Maturities of Marketable Investments (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Amortized Cost    
Due in one year $ 58,033  
Due in one to five years 63,639  
Cost 121,672 $ 196,093
Fair Value    
Due in one year 56,791  
Due in one to five years 61,381  
Total $ 118,172 $ 195,496
v3.22.4
Investments and Fair Value of Financial Instruments - Financial Assets and Liabilities Measured at Fair Value (Details) - Fair Value, Measurements, Recurring - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Financial Assets    
Total $ 139,693 $ 206,005
Commercial paper    
Financial Assets    
Marketable investments:   20,276
U.S. treasury    
Financial Assets    
Marketable investments: 14,004 14,387
U.S. agency and government sponsored securities    
Financial Assets    
Marketable investments: 6,823 11,535
U.S. states and municipalities    
Financial Assets    
Marketable investments: 22,959 39,386
Corporate bonds    
Financial Assets    
Marketable investments: 74,386 109,912
Money market funds    
Financial Assets    
Cash equivalents: 21,521 10,509
Fair Value, Inputs, Level 1    
Financial Assets    
Total 35,525 24,896
Fair Value, Inputs, Level 1 | Commercial paper    
Financial Assets    
Marketable investments:   0
Fair Value, Inputs, Level 1 | U.S. treasury    
Financial Assets    
Marketable investments: 14,004 14,387
Fair Value, Inputs, Level 1 | U.S. agency and government sponsored securities    
Financial Assets    
Marketable investments: 0 0
Fair Value, Inputs, Level 1 | U.S. states and municipalities    
Financial Assets    
Marketable investments: 0 0
Fair Value, Inputs, Level 1 | Corporate bonds    
Financial Assets    
Marketable investments: 0 0
Fair Value, Inputs, Level 1 | Money market funds    
Financial Assets    
Cash equivalents: 21,521 10,509
Fair Value, Inputs, Level 2    
Financial Assets    
Total 104,168 181,109
Fair Value, Inputs, Level 2 | Commercial paper    
Financial Assets    
Marketable investments:   20,276
Fair Value, Inputs, Level 2 | U.S. treasury    
Financial Assets    
Marketable investments: 0 0
Fair Value, Inputs, Level 2 | U.S. agency and government sponsored securities    
Financial Assets    
Marketable investments: 6,823 11,535
Fair Value, Inputs, Level 2 | U.S. states and municipalities    
Financial Assets    
Marketable investments: 22,959 39,386
Fair Value, Inputs, Level 2 | Corporate bonds    
Financial Assets    
Marketable investments: 74,386 109,912
Fair Value, Inputs, Level 2 | Money market funds    
Financial Assets    
Cash equivalents: 0 0
Fair Value, Inputs, Level 3    
Financial Assets    
Total 0 0
Fair Value, Inputs, Level 3 | Commercial paper    
Financial Assets    
Marketable investments:   0
Fair Value, Inputs, Level 3 | U.S. treasury    
Financial Assets    
Marketable investments: 0 0
Fair Value, Inputs, Level 3 | U.S. agency and government sponsored securities    
Financial Assets    
Marketable investments: 0 0
Fair Value, Inputs, Level 3 | U.S. states and municipalities    
Financial Assets    
Marketable investments: 0 0
Fair Value, Inputs, Level 3 | Corporate bonds    
Financial Assets    
Marketable investments: 0 0
Fair Value, Inputs, Level 3 | Money market funds    
Financial Assets    
Cash equivalents: $ 0 $ 0
v3.22.4
Balance Sheet Components - Accounts Receivable, Net (Details) - USD ($)
$ in Thousands
12 Months Ended
Jan. 01, 2020
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Allowance for Doubtful Accounts Receivable [Roll Forward]        
Balance At Beginning Of Year $ 2,946 $ 2,092 $ 2,198 $ 2,946
Write-offs   0 0 (2,361)
Provision for Credit loss $ 1,300 (1,230) 0 1,613
Recoveries   0 (106) 0
Balance At End Of Year   $ 862 $ 2,092 $ 2,198
v3.22.4
Balance Sheet Components - Schedule of Inventories (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Raw materials $ 90,786 $ 68,374
Work in process 26,793 18,678
Finished goods 216,427 176,452
Inventories $ 334,006 $ 263,504
v3.22.4
Balance Sheet Components - Additional Information, Inventories (Details) - USD ($)
$ in Thousands
3 Months Ended
Dec. 31, 2020
Dec. 31, 2022
Dec. 31, 2021
Product Information [Line Items]      
Inventories   $ 334,006 $ 263,504
Property and equipment, net   $ 65,015 $ 58,856
Real System      
Product Information [Line Items]      
Property and equipment reclassified as inventory $ 17,700    
v3.22.4
Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Property, Plant and Equipment [Line Items]    
Total property and equipment $ 113,040 $ 97,270
Less: Accumulated depreciation and amortization (48,025) (38,414)
Property and equipment, net 65,015 58,856
Machinery and equipment    
Property, Plant and Equipment [Line Items]    
Total property and equipment 37,160 30,429
Furniture and fixtures    
Property, Plant and Equipment [Line Items]    
Total property and equipment 16,042 14,360
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Total property and equipment 25,611 23,934
Software    
Property, Plant and Equipment [Line Items]    
Total property and equipment 16,863 7,989
Less: Accumulated depreciation and amortization (6,300) (4,900)
Computers    
Property, Plant and Equipment [Line Items]    
Total property and equipment 9,841 9,457
Construction in progress    
Property, Plant and Equipment [Line Items]    
Total property and equipment $ 7,523 $ 11,101
v3.22.4
Balance Sheet Components - Additional Information, Property and Equipment, Net (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Property, Plant and Equipment [Line Items]      
Depreciation and amortization $ 24,321 $ 16,408 $ 12,891
Accumulated amortization 48,025 38,414  
Property, Plant and Equipment      
Property, Plant and Equipment [Line Items]      
Depreciation and amortization 9,800 9,300 8,000
Software      
Property, Plant and Equipment [Line Items]      
Depreciation and amortization 1,700 1,000 $ 1,000
Accumulated amortization $ 6,300 $ 4,900  
v3.22.4
Balance Sheet Components - Accrued Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Payroll and employee-related expenses $ 60,480 $ 60,015
Accrued expenses 10,902 12,245
Deferred revenue 9,158 0
Other accrued liabilities 25,760 27,536
Total accrued liabilities $ 106,300 $ 99,796
v3.22.4
Balance Sheet Components - Product Warranty (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Product Warranty, Increase (Decrease) [Roll Forward]      
Balance at the beginning of the year $ 4,310 $ 2,896 $ 2,318
Accruals of warranties issued 2,451 2,973 1,589
Settlements of warranty claims (1,391) (1,559) (1,011)
Balance at the end of the year $ 5,370 $ 4,310 $ 2,896
v3.22.4
Business Combinations - Acquisition of Sixense Enterprises, Inc. (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Oct. 01, 2021
Sep. 30, 2021
Business Acquisition [Line Items]      
Non-controlling interest   $ 0 $ (6,200)
MVI Health Inc.      
Business Acquisition [Line Items]      
Percentage of voting interests acquired 40.00%    
MVI Health Inc.      
Business Acquisition [Line Items]      
Ownership interest 50.00%    
Ownership by parent   90.00%  
MVI Health Inc. | Sixense Enterprises Inc.      
Business Acquisition [Line Items]      
Ownership by noncontrolling owners   10.00%  
MVI Health Inc. | Sixense Enterprises Inc.      
Business Acquisition [Line Items]      
Percentage of voting interests acquired   10.00%  
v3.22.4
Business Combinations - Schedule of Consideration Transferred (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Oct. 01, 2021
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Business Acquisition, Contingent Consideration [Line Items]        
Fair value of replacement stock options [1]     $ 80,693  
Stock-based compensation expense   $ 37,378 $ 65,763 $ 25,541
Sixense Enterprises Inc.        
Business Acquisition, Contingent Consideration [Line Items]        
Consideration for settlement of pre-existing liabilities due to Sixense $ (3,810)      
Total purchase price $ 251,016      
Shares issued for acquisition (in shares) 661,877      
Business acquisition, share price (in dollars per share) $ 263.09      
Stock-based compensation expense $ 25,800      
Sixense Enterprises Inc. | Shares        
Business Acquisition, Contingent Consideration [Line Items]        
Fair value of common stock issued 174,133      
Sixense Enterprises Inc. | Stock Options        
Business Acquisition, Contingent Consideration [Line Items]        
Fair value of replacement stock options $ 80,693      
[1] (2) Refer to Note "5. Business Combinations” and “11. Stockholders’ Equity” for more information on the impact of the acquisition of Sixense Enterprises Inc. during the year ended December 31, 2021.
v3.22.4
Business Combinations - Purchase Price Allocation (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Oct. 01, 2021
Sep. 30, 2022
Dec. 31, 2022
Dec. 31, 2021
Business Acquisition [Line Items]        
Goodwill     $ 166,046 $ 166,388
Useful life     9 years 7 months 6 days 9 years 9 months 18 days
Sixense Enterprises Inc.        
Business Acquisition [Line Items]        
Cash and cash equivalents $ 2,919      
Prepaid expenses and other current and non-current assets 1,971      
Deferred tax assets 20,678      
Deferred tax liabilities (19,398)     $ (19,400)
Accrued liabilities and other current liabilities (1,341)      
Net assets acquired 88,118      
Fair value of subsidiary stock indirectly acquired through the Merger 4,161      
Total net assets acquired 92,279      
Goodwill 158,737      
Total purchase price 251,016      
Sixense Enterprises Inc. | In-process research and development        
Business Acquisition [Line Items]        
In-process research and development 20,823      
Developed technology        
Business Acquisition [Line Items]        
Useful life   8 years 9 months 18 days 8 years 9 months 18 days 8 years 9 months 18 days
Developed technology | Sixense Enterprises Inc.        
Business Acquisition [Line Items]        
Developed technology $ 62,466      
Useful life 8 years 9 months      
v3.22.4
Business Combinations - Pro Forma (Details) - Sixense Enterprises Inc. - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Business Acquisition [Line Items]    
Pro forma revenues $ 747,840 $ 560,779
Proforma net income (loss) attributable to Penumbra, Inc. 17,552 (30,188)
Proforma net loss attributable to non-controlling interest $ 0 $ 0
v3.22.4
Business Combinations - Payments Related to the 2017 Crossmed Acquisition (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Business Acquisition [Line Items]      
Payment of milestone payments, financing activities $ 0 $ 0 $ 683
Crossmed      
Business Acquisition [Line Items]      
Payments of milestone payments     1,200
Payment of milestone payments, operating activities     500
Payment of milestone payments, financing activities     $ 700
v3.22.4
Intangible Assets - Intangible Assets, Net (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Sep. 30, 2022
Dec. 31, 2022
Dec. 31, 2021
Mar. 31, 2018
Finite-Lived Intangible Assets [Line Items]        
Weighted-Average Amortization Period (in years)   9 years 7 months 6 days 9 years 9 months 18 days  
Gross Carrying Amount   $ 96,574 $ 76,228  
Accumulated Amortization   (15,413) (6,433)  
Total amortization   81,161 69,795  
Intangible assets, gross     97,051  
Intangible assets, net   $ 81,161 90,618  
In-process research and development        
Finite-Lived Intangible Assets [Line Items]        
In-process research and development     $ 20,823  
Developed technology        
Finite-Lived Intangible Assets [Line Items]        
Weighted-Average Amortization Period (in years) 8 years 9 months 18 days 8 years 9 months 18 days 8 years 9 months 18 days  
Gross Carrying Amount   $ 83,289 $ 62,466  
Accumulated Amortization   (10,113) (1,784)  
Total amortization   $ 73,176 $ 60,682  
Customer relationships        
Finite-Lived Intangible Assets [Line Items]        
Weighted-Average Amortization Period (in years)   15 years 15 years  
Gross Carrying Amount   $ 6,383 $ 6,762  
Accumulated Amortization   (2,340) (2,029)  
Total amortization   $ 4,043 $ 4,733  
Trade secrets and processes        
Finite-Lived Intangible Assets [Line Items]        
Weighted-Average Amortization Period (in years)   20 years 20 years  
Gross Carrying Amount   $ 5,256 $ 5,256 $ 5,300
Accumulated Amortization   (1,314) (1,051)  
Total amortization   $ 3,942 $ 4,205  
Other        
Finite-Lived Intangible Assets [Line Items]        
Weighted-Average Amortization Period (in years)   5 years 5 years  
Gross Carrying Amount   $ 1,646 $ 1,744  
Accumulated Amortization   (1,646) (1,569)  
Total amortization   $ 0 $ 175  
v3.22.4
Intangible Assets - Narrative (Details) - USD ($)
3 Months Ended 12 Months Ended
Sep. 30, 2022
Jun. 30, 2020
Dec. 31, 2019
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2017
Mar. 31, 2018
Finite-Lived Intangible Assets [Line Items]                
Gross Carrying Amount       $ 96,574,000 $ 76,228,000      
Useful life       9 years 7 months 6 days 9 years 9 months 18 days      
Payments to acquire intangible assets             $ 2,500,000  
Impairment of intangible asset   $ 2,500,000 $ 0 $ 0 $ 0 $ 2,500,000    
Trade secrets and processes                
Finite-Lived Intangible Assets [Line Items]                
Gross Carrying Amount       $ 5,256,000 $ 5,256,000     $ 5,300,000
Useful life       20 years 20 years      
In-process research and development                
Finite-Lived Intangible Assets [Line Items]                
In-process research and development $ 20,800,000              
Loss contingency accrual     11,700,000     $ 0    
In-process research and development | Accrued Liabilities                
Finite-Lived Intangible Assets [Line Items]                
Loss contingency accrual     800,000          
In-process research and development | Noncurrent Liabilities                
Finite-Lived Intangible Assets [Line Items]                
Loss contingency accrual     $ 10,900,000          
Developed technology                
Finite-Lived Intangible Assets [Line Items]                
Gross Carrying Amount       $ 83,289,000 $ 62,466,000      
Useful life 8 years 9 months 18 days     8 years 9 months 18 days 8 years 9 months 18 days      
v3.22.4
Intangible Assets - Amortization (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]      
Amortization of intangible assets $ 9,180 $ 2,881 $ 1,067
Cost of revenue      
Finite-Lived Intangible Assets [Line Items]      
Amortization of intangible assets 263 263 263
Sales, general and administrative      
Finite-Lived Intangible Assets [Line Items]      
Amortization of intangible assets $ 8,917 $ 2,618 $ 804
v3.22.4
Intangible Assets - Future Amortization (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]    
2023 $ 10,207  
2024 10,207  
2025 10,207  
2026 10,207  
2027 10,207  
Thereafter 30,126  
Total amortization $ 81,161 $ 69,795
v3.22.4
Goodwill - Schedule of Goodwill (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2022
USD ($)
Goodwill [Roll Forward]  
Balance as of December 31, 2021 $ 166,388
Foreign currency translation and other adjustments (342)
Balance as of December 31, 2022 $ 166,046
v3.22.4
Goodwill - Narrative (Details) - USD ($)
3 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]    
Goodwill impairment $ 0 $ 0
v3.22.4
Indebtedness (Details) - USD ($)
Dec. 31, 2022
Apr. 24, 2020
Revolving credit facility    
Line of Credit Facility [Line Items]    
Maximum borrowing capacity   $ 100,000,000
Line of credit, increase limit   150,000,000
Line of credit, maximum principal increase limit   50,000,000
Borrowings outstanding $ 0  
Letter of Credit | Bank Of America And Citibank | Line of Credit    
Line of Credit Facility [Line Items]    
Maximum borrowing capacity   10,000,000
Bridge Loan | Bank Of America And Citibank | Line of Credit    
Line of Credit Facility [Line Items]    
Maximum borrowing capacity   10,000,000
Foreign Line of Credit | Bank Of America And Citibank | Line of Credit    
Line of Credit Facility [Line Items]    
Maximum borrowing capacity   $ 15,000,000
v3.22.4
Leases - Narrative (Details)
Dec. 31, 2022
Sep. 30, 2021
Jun. 30, 2021
1310 Harbor Bay Lease      
Lessee, Lease, Description [Line Items]      
Operating lease, term of contract     15 years
Roseville Lease      
Lessee, Lease, Description [Line Items]      
Operating lease, lease not yet commenced, term of contract   13 years  
Minimum      
Lessee, Lease, Description [Line Items]      
Lease, renewal term 5 years    
Maximum      
Lessee, Lease, Description [Line Items]      
Lease, renewal term 15 years    
v3.22.4
Leases - Summary of Lease Cost (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Lease Cost      
Operating lease cost $ 20,305 $ 11,646 $ 7,602
Amortization of right-of-use assets 3,253 3,082 2,787
Interest on lease liabilities 1,439 1,495 1,517
Variable lease cost 10,012 6,699 5,139
Total lease costs $ 35,009 $ 22,922 $ 17,045
Weighted Average Remaining Lease Term      
Operating leases 13 years 4 months 24 days 13 years 1 month 6 days 9 years 1 month 6 days
Finance leases 11 years 4 months 24 days 12 years 2 months 12 days 13 years 6 months
Weighted Average Discount Rate      
Operating leases 4.94% 4.92% 6.16%
Finance leases 5.30% 5.30% 5.36%
v3.22.4
Leases - Schedule of Maturity of Lease Liabilities (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Sep. 30, 2021
Operating Lease Payments    
2023 $ 19,760  
2024 19,986  
2025 19,827  
2026 19,931  
2027 19,828  
Thereafter 192,639  
Total undiscounted lease payments 291,971  
Less imputed interest (82,983)  
Present value of lease liabilities 208,988  
Finance Lease Payments    
2023 3,277  
2024 3,288  
2025 3,216  
2026 2,848  
2027 2,739  
Thereafter 20,807  
Total undiscounted lease payments 36,175  
Less imputed interest (9,390)  
Present value of lease liabilities 26,785  
Roseville Lease    
Lessee, Lease, Description [Line Items]    
Operating lease, lease not yet commenced, term of contract   13 years
Lease not yet commenced, estimated payments $ 10,300  
v3.22.4
Leases - Supplemental Cash Flow Information (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:      
Operating cash flows from operating leases $ 17,554 $ 9,690 $ 7,561
Financing cash flows from finance leases 1,751 1,451 3,418
Right-of-use assets obtained in exchange for lease obligations:      
Operating leases 72,279 101,510 1,515
Finance leases $ 305 $ 1,346 $ 1,632
v3.22.4
Commitments and Contingencies - Royalty Obligations (Details) - USD ($)
$ in Thousands
1 Months Ended 12 Months Ended
Jul. 31, 2019
Apr. 30, 2015
Apr. 30, 2012
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2018
Mar. 31, 2018
Other Commitments [Line Items]                
Purchase obligations       $ 7,000        
Purchase obligation due within one year       6,400        
Total undiscounted lease payments       291,971        
Gross Carrying Amount       96,574 $ 76,228      
Cost of revenue                
Other Commitments [Line Items]                
Royalty expense       2,500 2,300 $ 2,500    
Royalty Agreement March 2005                
Other Commitments [Line Items]                
Minimum annual royalty payments             $ 100  
Extended term of agreement 10 years              
Increase in minimum annual royalty payments $ 200              
Minimum quarterly royalty payments $ 300              
Royalty Agreement, April 2012                
Other Commitments [Line Items]                
Royalty as a percent of sales     5.00%          
Term of royalty agreement (in years)     15 years          
Royalty Agreement, April 2015                
Other Commitments [Line Items]                
Royalty as a percent of sales   2.00%            
Trade secrets and processes                
Other Commitments [Line Items]                
Gross Carrying Amount       $ 5,256 $ 5,256     $ 5,300
v3.22.4
Stockholders' Equity - Preferred Stock and Common Stock Narrative (Details)
12 Months Ended
Dec. 31, 2022
vote
shares
Dec. 31, 2021
shares
Share-Based Payment Arrangement [Abstract]    
Preferred stock, shares authorized (in shares) 5,000,000 5,000,000
Preferred stock, shares outstanding (in shares) 0 0
Common stock, number of votes per share | vote 1  
v3.22.4
Stockholders' Equity - Issuance of Stock Narrative (Details) - USD ($)
$ / shares in Units, $ in Thousands
1 Months Ended 12 Months Ended
Oct. 01, 2021
Jun. 30, 2020
Dec. 31, 2020
Class of Stock [Line Items]      
Net cash proceeds from shares issued and sold     $ 134,759
Sixense Enterprises Inc.      
Class of Stock [Line Items]      
Shares issued for acquisition (in shares) 661,877    
Options issued in connections with acquisition (in shares) 447,017    
Public Stock Offering      
Class of Stock [Line Items]      
Shares issued (in shares)   865,963  
Shares issued, price per share (in dollars per share)   $ 166.00  
Net cash proceeds from shares issued and sold   $ 134,800  
Underwriting discounts and commissions   8,600  
Other issuance costs   $ 400  
v3.22.4
Stockholders' Equity - Stock Plans Narrative (Details) - USD ($)
$ / shares in Units, $ in Thousands
1 Months Ended 12 Months Ended
Sep. 17, 2015
Oct. 31, 2011
Jan. 31, 2005
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Number of options unvested and subject to repurchase (in shares)       0 0  
Intrinsic value of options exercised in period       $ 48,200 $ 81,100 $ 70,100
Issuance of common stock under employee stock purchase plan (in shares)       113,893 64,852 77,528
Issuance of common stock under employee stock purchase plan       $ 13,766 $ 13,705 $ 11,300
Unrecognized compensation cost related to unvested share-based compensation arrangements       $ 101,500    
Unrecognized compensation cost, expected recognition period       3 years 1 month 6 days    
Share-based compensation expense capitalized in inventory       $ 2,200 $ 1,800 1,200
Stock Options            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Weighted average grant date fair value of stock options (in dollars per share)       $ 197.74 $ 263.09  
Restricted Stock and Restricted Stock Units (RSUs)            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Fair value of restricted stock vested       $ 28,100 $ 44,500 $ 32,100
Expected to vest (in shares)       468,337    
Employee Stock Purchase Plan            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Shares of common stock reserved for future issuance (in shares) 600,000     839,422    
Minimum percent of eligible compensation per pay period to be used to purchase shares under plan 1.00%          
Maximum percent of eligible compensation per pay period to be used to purchase shares under plan 15.00%          
Purchase price of common stock, percent of fair market value 85.00%          
Maximum number of shares that may be purchased by any one employee (in shares) 2,000          
Maximum value of shares that may be purchased by any one employee $ 25          
2005 Stock Plan | Stock Options | Vesting after 1 year            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Award vesting rate       25.00%    
2005 Stock Plan | Stock Options | Vesting thereafter, per month            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Award vesting rate       2.00%    
2005 Stock Plan | Incentive Stock Options (ISO)            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Minimum voting rights for determination of exercise price, percent     10.00%      
Minimum exercise price, percent over fair market value     110.00%      
Shares transferred to different plan (in shares) 564          
Shares of common stock reserved for future issuance (in shares)       8,622    
2005 Stock Plan | Incentive Stock Options (ISO) | Maximum            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Term of award (in years)     5 years      
2005 Stock Plan | Other Options | Maximum            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Term of award (in years)     10 years      
2011 Equity Incentive Plan | Stock Options            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Term of award (in years)   10 years        
Shares transferred to different plan (in shares) 89,559          
Shares of common stock reserved for future issuance (in shares)       58,000    
Award vesting period (in years)   4 years        
2011 Equity Incentive Plan | Incentive Stock Options (ISO)            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Minimum voting rights for determination of exercise price, percent   10.00%        
Minimum exercise price, percent over fair market value   110.00%        
2014 Equity Incentive Plan            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Shares of common stock reserved for future issuance (in shares)       7,321,161    
Number of shares available for grant (in shares)       6,050,161    
v3.22.4
Stockholders' Equity - Stock Option Activity (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]    
Beginning balance (in shares) 1,141,814  
Exercised (in shares) (309,004)  
Cancelled/Forfeited (in shares) (1,157)  
Ending balance (in shares) 841,773  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]    
Beginning balance (in dollars per share) $ 27.02  
Grants (in dollars per share) 197.74  
Exercised (in dollars per share) 25.25  
Cancelled/Forfeited (in dollars per share) 22.04  
Ending balance (in dollars per share) $ 29.73  
Options Vested and Expected to Vest    
Vested and expected to vest (in shares) 841,046  
Vested and expected to vest, Weighted Average Exercise Price (in dollars per share) $ 29.59  
Vested and expected to vest, Weighted average remaining contractual life (in years) 2 years 10 months 6 days  
Vested and expected to vest, aggregate intrinsic value $ 162,213  
Exercisable (in shares) 829,678  
Exercisable, weighted average exercise price (in dollars per share) $ 27.38  
Exercisable, weighted average remaining contractual life (in years) 2 years 9 months 7 days  
Exercisable, aggregate intrinsic value $ 161,856  
2014 Equity Incentive Plan    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]    
Grants (in shares) 10,120 0
v3.22.4
Stockholders' Equity - Restricted Stock Activity (Details) - Restricted Stock and Restricted Stock Units (RSUs)
12 Months Ended
Dec. 31, 2022
$ / shares
shares
Number of Shares  
Unvested beginning balance (in shares) | shares 409,482
Granted (in shares) | shares 275,910
Released/Vested (in shares) | shares (151,173)
Cancelled/Forfeited (in shares) | shares (38,370)
Unvested ending balance (in shares) | shares 495,849
Weighted Average Grant Date Fair Value  
Unvested beginning balance (in dollars per share) | $ / shares $ 210.41
Granted (in dollars per share) | $ / shares 187.38
Released/Vested (in dollars per share) | $ / shares 192.66
Cancelled/Forfeited (in dollars per share) | $ / shares 212.44
Unvested ending balance (in dollars per share) | $ / shares $ 202.84
v3.22.4
Stockholders' Equity - Stock Options Assumptions (Details)
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Stock Options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term (in years) 5 years 7 months 13 days 2 years 10 months 6 days  
Expected volatility (percent) 42.00% 42.00%  
Risk-free interest rate 2.76% 0.38%  
Expected dividend rate (percent) 0.00% 0.00%  
Employee Stock Purchase Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term (in years) 6 months 6 months 6 months
Expected volatility (percent) 46.00% 43.00% 48.00%
Risk-free interest rate 1.30% 0.10% 0.70%
Expected dividend rate (percent) 0.00% 0.00% 0.00%
v3.22.4
Stockholders' Equity - Stock-based Compensation Expense (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Stock-based compensation expense $ 37,378 $ 65,763 $ 25,541
Cost of sales      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Stock-based compensation expense 3,882 2,898 2,304
Research and development      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Stock-based compensation expense 5,908 30,037 3,686
Sales, general and administrative      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Stock-based compensation expense $ 27,588 $ 32,828 $ 19,551
v3.22.4
Accumulated Other Comprehensive Loss (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Amounts reclassified from accumulated other comprehensive loss to consolidated net income:      
Total other comprehensive (loss) income, net of tax $ (5,494) $ (5,171) $ 4,865
Marketable Investments      
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning balance (595) 647  
Other comprehensive (loss) income before reclassifications:      
Unrealized (losses) gains — marketable investments (2,905) (1,437)  
Foreign currency translation losses 0 0  
Income tax effect — expense 0 195  
Net of tax (2,905) (1,242)  
Amounts reclassified from accumulated other comprehensive loss to consolidated net income:      
Realized (loss) gain — marketable investments 0 0  
Income tax effect — (expense) benefit 0 0  
Net of tax 0 0  
Total other comprehensive (loss) income, net of tax (2,905) (1,242)  
Ending balance (3,500) (595) 647
Currency Translation Adjustments      
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning balance (2,035) 1,894  
Other comprehensive (loss) income before reclassifications:      
Unrealized (losses) gains — marketable investments 0 0  
Foreign currency translation losses (2,590) (3,930)  
Income tax effect — expense 1 1  
Net of tax (2,589) (3,929)  
Amounts reclassified from accumulated other comprehensive loss to consolidated net income:      
Realized (loss) gain — marketable investments 0 0  
Income tax effect — (expense) benefit 0 0  
Net of tax 0 0  
Total other comprehensive (loss) income, net of tax (2,589) (3,929)  
Ending balance (4,624) (2,035) 1,894
Accumulated Other Comprehensive (Loss) Income      
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning balance (2,630) 2,541  
Other comprehensive (loss) income before reclassifications:      
Unrealized (losses) gains — marketable investments (2,905)    
Foreign currency translation losses (2,590)    
Income tax effect — expense 1 196  
Net of tax (5,494) (5,171)  
Amounts reclassified from accumulated other comprehensive loss to consolidated net income:      
Realized (loss) gain — marketable investments 0 0  
Income tax effect — (expense) benefit 0 0  
Net of tax 0 0  
Total other comprehensive (loss) income, net of tax (5,494) (5,171) 4,865
Ending balance $ (8,124) $ (2,630) $ 2,541
v3.22.4
Employee Benefit Plan (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Retirement Benefits [Abstract]      
Employer contribution cost $ 6.7 $ 5.6 $ 4.5
v3.22.4
Income Taxes - Income (Loss) before Income Taxes (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income Tax Disclosure [Abstract]                      
United States                 $ (1,837) $ (15,155) $ (40,278)
Foreign                 5,729 4,653 2,260
Income (loss) before income taxes $ 7,128 $ 3,035 $ (1,167) $ (5,104) $ (40,954) $ 7,782 $ 10,203 $ 12,467 $ 3,892 $ (10,502) $ (38,018)
v3.22.4
Income Taxes - Provision for (Benefit from) for Income Taxes (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Current:                      
Federal                 $ 1,672 $ 44 $ (302)
State                 1,428 439 357
Foreign                 1,725 1,345 907
Total current                 4,825 1,828 962
Deferred:                      
Federal                 1,905 (13,698) (18,129)
State                 (360) (1,131) (1,488)
Foreign                 (476) (124) (106)
Total deferred                 1,069 (14,953) (19,723)
Provision for (benefit from) income taxes $ 3,251 $ 5,306 $ 2,520 $ (5,183) $ (16,321) $ (249) $ 1,904 $ 1,541 $ 5,894 $ (13,125) $ (18,761)
v3.22.4
Income Taxes - Effective Income Tax Reconciliation (Details)
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income Tax Disclosure [Abstract]      
Income tax at federal statutory rate 21.00% 21.00% 21.00%
State income taxes, net of federal benefit 15.90% 7.60% 3.20%
Rate differential on foreign operations (11.70%) (2.70%) (0.30%)
Foreign taxes (6.90%) 1.30% (1.00%)
Mutual agreement procedure adjustment 0.00% 2.10% 0.00%
Prepaid tax ASC 810-10 51.90% (0.30%) 0.80%
Stock-based compensation 72.90% 86.10% 26.80%
Global intangible low-taxed income (“GILTI”) 0.00% (6.50%) 0.00%
Non-deductible parking expenses 6.90% (1.50%) (0.40%)
Permanent differences (3.30%) (1.20%) (1.50%)
Other 4.70% 0.90% 0.70%
Change in valuation allowance 0.00% 18.20% 0.00%
Effective tax rate 151.40% 125.00% 49.30%
v3.22.4
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Deferred tax assets:        
Net operating loss carryforwards $ 37,290 $ 55,461    
Tax credits 41,934 31,969    
Accruals and reserves 9,236 9,521    
Capitalized research expenses 22,960 0    
Stock-based compensation 12,478 21,886    
Translation adjustment 174 173    
UNICAP adjustments 10,810 8,715    
ASC 842 Lease Liabilities 57,161 41,919    
Other 2,727 1,688    
Gross deferred tax assets 194,770 171,332    
Valuation allowance (46,693) (37,110) $ (28,768) $ (21,558)
Total deferred tax assets 148,077 134,222    
Deferred tax liabilities:        
Depreciation and amortization (29,781) (28,159)    
ASC 842 Lease ROU Assets (54,786) (40,645)    
Other (257) (1,171)    
Total deferred tax liabilities (84,824) (69,975)    
Net deferred tax assets $ 63,253 $ 64,247    
v3.22.4
Income Taxes - Operating Loss Carryforwards Narrative (Details)
$ in Millions
Dec. 31, 2022
USD ($)
Operating Loss Carryforwards [Line Items]  
Operating loss carryforwards, limited to offset taxable income in year utilized, percent 80.00%
Federal  
Operating Loss Carryforwards [Line Items]  
Operating loss carryforwards $ 148.9
State  
Operating Loss Carryforwards [Line Items]  
Operating loss carryforwards $ 93.6
v3.22.4
Income Taxes - Tax Credit Carryforwards Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2021
Dec. 31, 2022
Research Tax Credit | Federal    
Tax Credit Carryforward [Line Items]    
Tax credit carryforwards   $ 27.1
Research Tax Credit | State    
Tax Credit Carryforward [Line Items]    
Tax credit carryforwards   $ 24.9
Federal    
Tax Credit Carryforward [Line Items]    
Operating loss carryforwards, carryforward period 20 years  
v3.22.4
Income Taxes - Valuation Allowance (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Reconciliation of valuation allowance      
Beginning Balance $ 37,110 $ 28,768 $ 21,558
Additions Charged To Expenses or Other Accounts 9,583 10,386 7,322
Deductions Credited to Expenses or Other Accounts 0 (2,044) (112)
Ending Balance $ 46,693 $ 37,110 $ 28,768
v3.22.4
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Reconciliation of the change in gross unrecognized tax benefits      
Beginning balance $ 9,026 $ 8,625 $ 6,075
Gross increase for tax positions of current year 1,842 1,935 2,389
Gross increase for tax positions of prior years 481 216 304
Gross decrease for tax positions of prior years (112) (1,411) (143)
Settlement with taxing authority 0 (339) 0
Ending balance $ 11,237 $ 9,026 $ 8,625
v3.22.4
Income Taxes - Unrecognized Tax Benefits Narrative (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Tax Disclosure [Abstract]        
Accrued interest and penalties related to uncertain tax positions $ 200 $ 200 $ 300  
Unrecognized tax benefits 11,237 $ 9,026 $ 8,625 $ 6,075
Unrecognized tax benefits that would affect the effective tax rate if recognized $ 900      
v3.22.4
Net (Loss) Income Attributable to Penumbra, Inc. - Basic and Diluted Earnings per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Numerator:                      
Net income (loss) attributable to Penumbra, Inc. $ 3,877 $ (2,271) $ (3,687) $ 79 $ (24,633) $ 8,850 $ 9,231 $ 11,836 $ (2,002) $ 5,284 $ (15,702)
Denominator:                      
Weighted average shares outstanding: Basic (in shares) 38,030,344 37,918,452 37,767,519 37,646,122 37,451,145 36,617,961 36,523,011 36,455,712 37,841,874 36,764,290 35,766,892
Potential dilutive stock-based options and awards, as calculated using treasury stock method (in shares)                 0 1,116,890 0
Weighted average shares outstanding: Diluted (in shares) 38,896,940 37,918,452 37,767,519 38,708,657 37,451,145 37,611,355 37,582,348 37,533,520 37,841,874 37,881,180 35,766,892
Net income (loss) attributable to Penumbra, Inc. per share: Basic (in dollars per share) $ 0.10 $ (0.06) $ (0.10) $ 0 $ (0.66) $ 0.24 $ 0.25 $ 0.32 $ (0.05) $ 0.14 $ (0.44)
Net income (loss) attributable to Penumbra, Inc. per share: Diluted (in dollars per share) $ 0.10 $ (0.06) $ (0.10) $ 0 $ (0.66) $ 0.24 $ 0.25 $ 0.32 $ (0.05) $ 0.14 $ (0.44)
v3.22.4
Net (Loss) Income Attributable to Penumbra, Inc. - Antidilutive Securities Narrative (Details) - shares
shares in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Class of Stock [Line Items]      
Antidilutive securities excluded from the computation of earnings per share (in shares)   15 2,000
Employee Stock Purchase Plan      
Class of Stock [Line Items]      
Antidilutive securities excluded from the computation of earnings per share (in shares) 2,000    
v3.22.4
Revenues - Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Disaggregation of Revenue [Line Items]                      
Revenue $ 221,216 $ 213,678 $ 208,344 $ 203,895 $ 204,011 $ 190,117 $ 184,258 $ 169,204 $ 847,133 $ 747,590 $ 560,412
Vascular                      
Disaggregation of Revenue [Line Items]                      
Revenue                 499,389 408,878 267,783
Neuro                      
Disaggregation of Revenue [Line Items]                      
Revenue                 347,744 338,712 292,629
United States                      
Disaggregation of Revenue [Line Items]                      
Revenue                 591,715 527,789 400,270
International                      
Disaggregation of Revenue [Line Items]                      
Revenue                 $ 255,418 $ 219,801 $ 160,142
v3.22.4
Revenues - Narrative (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Disaggregation of Revenue [Line Items]                      
Revenue $ 221,216 $ 213,678 $ 208,344 $ 203,895 $ 204,011 $ 190,117 $ 184,258 $ 169,204 $ 847,133 $ 747,590 $ 560,412
Contract liabilities, net $ 8,783       $ 5,671       8,783 5,671  
Revenue recognized                 5,700    
China Distribution and Technology Licensing Agreement                      
Disaggregation of Revenue [Line Items]                      
Revenue                 $ 48,600 $ 46,900  
v3.22.4
Revenues - Summary of Contract Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]    
Contract liabilities, net $ 8,783 $ 5,671
v3.22.4
Selected Quarterly Financial Data (Unaudited) - Selected Statement of Operations (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                      
Revenue $ 221,216 $ 213,678 $ 208,344 $ 203,895 $ 204,011 $ 190,117 $ 184,258 $ 169,204 $ 847,133 $ 747,590 $ 560,412
Cost of revenue 82,789 78,351 74,309 76,477 78,564 70,205 65,572 57,867 311,926 272,208 222,237
Gross profit 138,427 135,327 134,035 127,418 125,447 119,912 118,686 111,337 535,207 475,382 338,175
Total operating expenses 133,594 129,893 134,174 131,464 165,504 111,131 108,374 97,874 529,125 482,883 377,117
Loss before (benefit from) for income taxes 7,128 3,035 (1,167) (5,104) (40,954) 7,782 10,203 12,467 3,892 (10,502) (38,018)
Provision for (benefit from) income taxes 3,251 5,306 2,520 (5,183) (16,321) (249) 1,904 1,541 5,894 (13,125) (18,761)
Consolidated net (loss) income 3,877 (2,271) (3,687) 79 (24,633) 8,031 8,299 10,926 (2,002) 2,623 (19,257)
Net loss attributable to non-controlling interest 0 0 0 0 0 (819) (932) (910) 0 (2,661) (3,555)
Net income (loss) attributable to Penumbra, Inc. $ 3,877 $ (2,271) $ (3,687) $ 79 $ (24,633) $ 8,850 $ 9,231 $ 11,836 $ (2,002) $ 5,284 $ (15,702)
Net (loss) income attributable to Penumbra, Inc. per share:                      
Net income (loss) attributable to Penumbra, Inc. per share: Basic (in dollars per share) $ 0.10 $ (0.06) $ (0.10) $ 0 $ (0.66) $ 0.24 $ 0.25 $ 0.32 $ (0.05) $ 0.14 $ (0.44)
Net income (loss) attributable to Penumbra, Inc. per share: Diluted (in dollars per share) $ 0.10 $ (0.06) $ (0.10) $ 0 $ (0.66) $ 0.24 $ 0.25 $ 0.32 $ (0.05) $ 0.14 $ (0.44)
Weighted average shares outstanding:                      
Basic (in shares) 38,030,344 37,918,452 37,767,519 37,646,122 37,451,145 36,617,961 36,523,011 36,455,712 37,841,874 36,764,290 35,766,892
Diluted (in shares) 38,896,940 37,918,452 37,767,519 38,708,657 37,451,145 37,611,355 37,582,348 37,533,520 37,841,874 37,881,180 35,766,892
Retained Earnings (Accumulated Deficit)                      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]                      
Consolidated net (loss) income                 $ (2,002) $ 5,284 $ (15,702)
v3.22.4
Label Element Value
Accounting Standards Update [Extensible Enumeration] us-gaap_AccountingStandardsUpdateExtensibleList Accounting Standards Update 2016-13 [Member]