0000939767-19-000190 | 10-Q | XBRL Viewer

Net unrealized gains or losses on available-for-sale securities, net of tax impact of $___, $0, $___ and $0, respectively

$ 97,452

$ 126,630

$ 252,269

$ 329,981

Other comprehensive income (loss):

^[1]

461

218

3,369

(166)

Total other comprehensive income (loss)

461

218

3,369

(166)

Comprehensive income

$ 97,913

$ 126,848

$ 255,638

$ 329,815

[1]	Reclassification adjustments to net income resulting from realized gains or losses on the sale of securities and the related tax impact were nominal or zero during the periods presented.

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

Balance (in shares) at Dec. 29, 2017

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2019	Sep. 28, 2018	Sep. 27, 2019	Sep. 28, 2018
Other comprehensive income (loss):
Unrealized gains or losses on available-for-sale securities, tax impact	$ (129)	$ 0	$ (936)	$ 0
Reclassification adjustments to net income resulting from realized gains or losses on sale of securities	$ 0	$ 0	$ 0	$ 0

Condensed Consolidated Statements of Stockholders' Equity - USD ($)
$ in Thousands

Total

Common Stock

Additional Paid-in Capital

Accumulated Other Comprehensive Income (Loss)

Accumulated Deficit

296,209,426

Balance at Dec. 29, 2017

$ 284,961

$ 296

$ 2,114,184

$ (347)

$ (1,829,172)

329,981

Issuance of common stock under equity incentive and stock purchase plans (in shares)

(166)

2,672,458

Issuance of common stock under equity incentive and stock purchase plans

14,121

$ 3

14,118

Balance (in shares) at Sep. 28, 2018

28,330

298,881,884

Balance at Sep. 28, 2018

915,966

$ 299

2,156,632

(513)

(1,240,452)

Balance (in shares) at Jun. 29, 2018

297,892,180

Balance at Jun. 29, 2018

775,202

$ 298

2,142,717

(731)

(1,367,082)

126,630

Issuance of common stock under equity incentive and stock purchase plans (in shares)

218

989,704

Issuance of common stock under equity incentive and stock purchase plans

4,174

$ 1

4,173

Balance (in shares) at Sep. 28, 2018

9,742

298,881,884

Balance at Sep. 28, 2018

$ 915,966

$ 299

2,156,632

(513)

(1,240,452)

Balance (in shares) at Dec. 28, 2018

299,876,080

^[1]

299,876,080

Balance at Dec. 28, 2018

$ 1,287,453

^[1]

$ 300

2,168,217

(701)

(880,363)

252,269

Issuance of common stock under equity incentive and stock purchase plans (in shares)

3,369

3,899,952

Issuance of common stock under equity incentive and stock purchase plans

19,879

$ 4

19,875

Balance (in shares) at Sep. 27, 2019

$ 40,747

40,747

303,776,032

Balance at Sep. 27, 2019

$ 1,603,717

$ 304

2,228,839

2,668

(628,094)

Balance (in shares) at Jun. 28, 2019

302,784,854

Balance at Jun. 28, 2019

1,488,632

$ 303

2,211,668

2,207

(725,546)

97,452

Issuance of common stock under equity incentive and stock purchase plans (in shares)

461

991,178

Issuance of common stock under equity incentive and stock purchase plans

4,033

$ 1

4,032

Balance (in shares) at Sep. 27, 2019

$ 13,139

13,139

303,776,032

Balance at Sep. 27, 2019

$ 1,603,717

$ 304

$ 2,228,839

$ 2,668

$ (628,094)

[1]	The Condensed Consolidated Balance Sheet as of December 31, 2018 has been derived from the audited financial statements as of that date.

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands

9 Months Ended

Sep. 27, 2019

Sep. 28, 2018

Statement of Cash Flows [Abstract]

Adjustments to reconcile net income to net cash provided by operating activities:

$ 252,269

$ 329,981

Depreciation and amortization

6,088

2,876

401(k) matching contributions made in common stock

40,747

28,330

4,079

3,232

Amortization and other changes in right-of-use assets

(6,367)

2,732

Deferred income taxes

56,339

Gain on other equity investments

(730)

(209)

Accretion of investments, net and other

(3,970)

(1,423)

Changes in operating assets and liabilities:

Trade receivables, net

(7,017)

(12,707)

Other receivables

2,469

(2,938)

Inventory, net

(3,528)

(3,776)

Current portion of unbilled collaboration revenue

(2,640)

(32,673)

Prepaid expenses and other current assets

527

(3,529)

Other long-term assets

(6,294)

(542)

Accounts payable

(2,708)

(1,248)

Accrued compensation and benefits

(429)

6,210

Accrued clinical trial liabilities

12,099

(891)

Rebates and fees due customers

1,828

4,124

Accrued collaboration liability

554

(577)

Current and long-term deferred revenue

3,592

(1,548)

Long-term portion of lease liabilities

6,087

(974)

Other current and long-term liabilities

15,940

(3,321)

Net cash provided by operating activities

368,935

311,129

Cash flows from investing activities:

Purchases of property and equipment

(5,575)

(30,403)

Proceeds from sale of property and equipment

308

Purchases of investments

(887,698)

(368,304)

Proceeds from maturities of investments

422,419

231,204

Proceeds from sale of investments

13,078

11,935

Proceeds from other equity investments

730

209

Net cash used in investing activities

(457,046)

(155,051)

Cash flows from financing activities:

Proceeds from exercise of stock options

14,811

10,390

Proceeds from employee stock purchase plan

4,145

3,650

(3,369)

(3,205)

Principal payments on financing lease obligation

(34)

Net cash provided by financing activities

15,553

10,835

Net (decrease) increase in cash, cash equivalents and restricted cash

(72,558)

166,913

Cash, cash equivalents and restricted cash at beginning of period

315,875

188,314

Cash, cash equivalents and restricted cash at end of period

243,317

355,227

Supplemental cash flow disclosure:

Right-of-use assets obtained in exchange for lease obligations

^[1]

12,944

17,180

Unpaid liabilities incurred to acquire Property and equipment

159

1,281

Unpaid liabilities incurred to acquire investments

$ 8,961

$ 0

[1]	Amounts for the nine months ended September 30, 2019 include receipt of a tenant incentive payment and an amendment to our existing lease for office and research space. Amounts for the nine months ended September 30, 2018 include the transition adjustment for the adoption of Topic 842.

Organization and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 27, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization Exelixis, Inc. (Exelixis, we, our or us) is an oncology-focused biotechnology company that strives to accelerate the discovery, development and commercialization of new medicines for difficult-to-treat cancers. Since we were founded in 1994, four products resulting from our discovery efforts have progressed through clinical development, received regulatory approval and have launched commercially. Two are derived from cabozantinib, an inhibitor of multiple tyrosine kinases including MET, AXL, VEGF receptors and RET. These are: CABOMETYX® (cabozantinib) tablets approved for advanced renal cell carcinoma (RCC) and previously treated hepatocellular carcinoma (HCC); and COMETRIQ® (cabozantinib) capsules approved for progressive, metastatic medullary thyroid cancer. The other two products resulting from our discovery efforts are: COTELLIC® (cobimetinib), an inhibitor of MEK, approved as part of a combination regimen to treat a specific form of advanced melanoma and marketed under a collaboration with Genentech, Inc. (a member of the Roche Group) (Genentech); and MINNEBRO® (esaxerenone), an oral, non-steroidal, selective blocker of the mineralocorticoid receptor (MR), approved for the treatment of hypertension in Japan and licensed to Daiichi Sankyo Company, Limited (Daiichi Sankyo). Basis of Consolidation The accompanying Condensed Consolidated Financial Statements include the accounts of Exelixis and those of our wholly-owned subsidiaries. These entities’ functional currency is the U.S. dollar. All intercompany balances and transactions have been eliminated. Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the U.S. for interim financial information and pursuant to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (SEC). Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In our opinion, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation of our financial statements for the periods presented have been included. We have adopted a 52- or 53-week fiscal year policy that generally ends on the Friday closest to December 31^st. Fiscal year 2019, which is a 53-week fiscal year, will end on January 3, 2020 and fiscal year 2018, which was a 52-week fiscal year, ended on December 28, 2018. For convenience, references in this report as of and for the fiscal periods ended September 27, 2019, June 28, 2019, September 28, 2018 and June 29, 2018, and as of and for the fiscal years ending January 3, 2020, and ended December 28, 2018 and December 29, 2017, are indicated as being as of and for the periods ended September 30, 2019, June 30, 2019, September 30, 2018 and June 30, 2018 and the years ending December 31, 2019, and ended December 31, 2018 and December 31, 2017, respectively. Similarly, references in this report to the first day of the fiscal year ended January 3, 2020 are indicated as being as of January 1, 2019 and the first day of the fiscal quarter ended September 27, 2019 are indicated as being as of July 1, 2019. Operating results for the three and nine months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 or for any future period. The accompanying Condensed Consolidated Financial Statements and Notes thereto should be read in conjunction with our Consolidated Financial Statements and Notes thereto for the year ended December 31, 2018, included in our Annual Report on Form 10-K filed with the SEC on February 22, 2019. Segment Information We operate in one business segment that focuses on the discovery, development and commercialization of new medicines for difficult-to-treat cancers. Our Chief Executive Officer, as the chief operating decision-maker, manages and allocates resources to our operations on a total consolidated basis. Consistent with this decision-making process, our Chief Executive Officer uses consolidated, single-segment financial information for purposes of evaluating performance, forecasting future period financial results, allocating resources and setting incentive targets. All of our long-lived assets are located in the U.S. See “Note 2. Revenues” for enterprise-wide disclosures about product sales, revenues from major customers and revenues by geographic region. Use of Estimates The preparation of the accompanying Condensed Consolidated Financial Statements conforms to accounting principles generally accepted in the U.S., which requires management to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities, equity, revenues and expenses, and related disclosures. On an ongoing basis, management evaluates its estimates including, but not limited to: those related to revenue recognition, including determining the nature and timing of satisfaction of performance obligations, and determining the standalone selling price of performance obligations, and variable consideration such as rebates, chargebacks, sales returns, sales allowances, and milestone payments included in collaboration arrangements; the amounts of revenues and expenses under our profit and loss sharing agreement; the recoverability of inventory; the amounts of operating lease right-of-use assets and lease liabilities; the amounts of deferred tax assets and liabilities including the related valuation allowance; the accrual for certain liabilities including accrued clinical trial liabilities; and valuations of equity awards used to determine stock-based compensation, including certain awards with vesting subject to market or performance conditions. We base our estimates on historical experience and on various other market-specific and other relevant assumptions that we believe 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 sources. Actual results could differ materially from those estimates. Recently Adopted Accounting Pronouncements On July 1, 2019, we adopted ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (ASU 2018-15). ASU 2018-15 requires a customer in a hosting arrangement that is a service contract to follow the guidance in Accounting Standards Codification (ASC) Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense and requires us to expense the capitalized implementation costs over the term of the hosting arrangement, which includes reasonably certain renewals. ASU 2018-15 was adopted using the prospective transition method in the accompanying Condensed Consolidated Financial Statements. The adoption of ASU 2018-15 did not have a material impact on our Condensed Consolidated Financial Statements. On January 1, 2019, we adopted ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220) (ASU 2018-02). There was no financial impact from the adoption of ASU 2018-02 and we did not make an election to reclassify the income tax effects of the Tax Cuts and Jobs Act of 2017 from Accumulated other comprehensive income (loss) to Accumulated deficit. In connection with the adoption of ASU 2018-02, we have adopted the individual unit of account approach for releasing income tax effects from Accumulated other comprehensive income (loss). On January 1, 2019, we also adopted ASU 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20) (ASU 2017-08). ASU 2017-08 shortens the amortization period for certain callable debt securities held at a premium. Specifically, ASU 2017-08 requires the premium to be amortized to the earliest call date. ASU 2017-08 does not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The financial impact from the adoption of ASU 2017-08 was nominal. Recent Accounting Pronouncements Not Yet Adopted In November 2018, the Financial Accounting Standards Board (FASB) issued ASU No. 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606 (ASU 2018-18). ASU 2018-18 clarifies that certain transactions between collaborative arrangement participants should be accounted for as revenue under Topic 606 when the counterparty is a customer for a distinct good or service (i.e. a unit of account). For units of account that are in the scope of Topic 606, all of the guidance in Topic 606 should be applied, including the guidance on recognition, measurement, presentation and disclosure. ASU 2018-18 also adds a reference in ASC Topic 808, Collaborative Arrangements (Topic 808) to the unit of account guidance in Topic 606 and requires that it be applied only to assess whether transactions in a collaborative arrangement are in the scope of Topic 606. ASU 2018-18 will preclude entities from presenting amounts related to transactions with a counterparty in a collaborative arrangement that is not a customer as revenue from contracts with customers. ASU 2018-18 is effective for us for all interim and annual reporting periods beginning after December 15, 2019. Early adoption is permitted. We are in the process of assessing the impact of ASU 2018-18 on our Condensed Consolidated Financial Statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (ASU 2017-04). ASU 2017-04 eliminated Step 2 from the goodwill impairment test. Instead, under the amendments in ASU 2017-04, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. ASU 2017-04 is effective for all interim and annual reporting periods beginning after December 15, 2019. Early adoption is permitted. We do not expect the adoption of ASU 2017-04 to have a material impact on our Condensed Consolidated Financial Statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326) (ASU 2016-13). ASU 2016-13 implements an impairment model, known as the current expected credit loss model that is based on expected losses rather than incurred losses. Under the new guidance, an entity will recognize as an allowance its estimate of expected credit losses. 2016-13 is effective for all interim and annual reporting periods beginning after December 15, 2019. Early adoption is permitted. We do not expect the adoption of ASU 2016-13 to have a material impact on our Condensed Consolidated Financial Statements.

Revenues

9 Months Ended

Sep. 27, 2019

Revenue from Contract with Customer [Abstract]

REVENUES

Revenues by disaggregated category were as follows (in thousands):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Product revenues:
Gross product revenues	$	239,916		$	193,356		$	704,084		$	525,438
Discounts and allowances	(48,148		)	(30,410		)	(139,060		)	(82,384		)
Net product revenues	191,768			162,946			565,024			443,054
Collaboration revenues:
License revenues⁽¹⁾	68,035			51,323			128,937			152,261
Research and development services revenues⁽²⁾	12,988			10,560			35,814			27,464
Other collaboration revenues⁽³⁾	(1,088		)	568			(2,310		)	2,445
Total collaboration revenues	79,935			62,451			162,441			182,170
Total revenues	$	271,703		$	225,397		$	727,465		$	625,224

____________________


(1)	License revenues included the recognition of the portion of milestones allocated to the transfer of intellectual property licenses for which it had become probable in the current period that the milestone would be achieved and a significant revenue reversal would not occur, as well as royalty revenues from Ipsen Pharma SAS (Ipsen), Genentech and Daiichi Sankyo.


(2)	Research and development services revenues included the recognition of deferred revenue for the portion of upfront and milestone payments that have been allocated to research and development services performance obligations, as well as development cost reimbursements earned on our collaboration agreements.


(3)	Other collaboration revenues included the profit on the U.S. commercialization of COTELLIC from Genentech and revenues on product supply services provided to Ipsen and Takeda Pharmaceutical Company Ltd. (Takeda), which were offset by the 3% royalty we are required to pay GlaxoSmithKline (GSK) on the net sales by Ipsen of any product incorporating cabozantinib.

Net product revenues, License revenues and Research and development services revenues were recorded in accordance with Topic 606 for all periods presented. Net product revenues and License revenues related to goods and intellectual property licenses transferred at a point in time and Research and development services revenues related to services performed over time. Other collaboration revenues, which included the profit on the U.S. commercialization of COTELLIC and net losses on product supply services, were recorded in accordance with Topic 808 for all periods presented.

Net product revenues disaggregated by product were as follows (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
CABOMETYX	$	187,410	$	158,262	$	552,315	$	428,317
COMETRIQ	4,358		4,684		12,709		14,737
Net product revenues	$	191,768	$	162,946	$	565,024	$	443,054

Total revenues disaggregated by significant customer were as follows (dollars in thousands):



	Three Months Ended September 30,
	2019				2018
	Dollars		Percent of Total		Dollars		Percent of Total
Ipsen	$	76,016	28	%	$	57,186	25	%
Caremark L.L.C.	35,703		13	%	30,707		14	%
Affiliates of McKesson Corporation	31,901		12	%	26,597		12	%
Affiliates of AmerisourceBergen Corporation	25,235		9	%	17,232		8	%
Others, individually less than 10% of Total revenues for all periods presented	102,848		38	%	93,675		41	%
Total revenues	$	271,703	100	%	$	225,397	100	%



	Nine Months Ended September 30,
	2019				2018
	Dollars		Percent of Total		Dollars		Percent of Total
Ipsen	$	120,133	17	%	$	145,038	23	%
Caremark L.L.C.	105,638		15	%	83,516		13	%
Affiliates of McKesson Corporation	88,496		12	%	71,249		11	%
Affiliates of AmerisourceBergen Corporation	70,503		10	%	49,995		8	%
Others, individually less than 10% of Total revenues for all periods presented	342,695		46	%	275,426		45	%
Total revenues	$	727,465	100	%	$	625,224	100	%

Total revenues disaggregated by geographic region were as follows (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
U.S.	$	194,484	$	166,270	$	572,957	$	453,342
Europe	76,017		57,186		120,134		145,038
Japan	1,202		1,941		34,374		26,844
Total revenues	$	271,703	$	225,397	$	727,465	$	625,224

Net product revenues are attributed to geographic region based on the ship-to location. Collaboration revenues are attributed to geographic region based on the location of our collaboration partners’ headquarters.

Product Sales Discounts and Allowances

The activities and ending reserve balances for each significant category of discounts and allowances (which constitute variable consideration) were as follows (in thousands):



	Chargebacks and Discounts for Prompt Payment			Other Customer Credits/Fees and Co-pay Assistance			Rebates			Total
Balance at December 31, 2018	$	2,322		$	3,038		$	11,916		$	17,276
Provision related to sales made in:
Current period	92,769			11,190			35,422			139,381
Prior periods	(130		)	(106		)	(85		)	(321		)
Payments and customer credits issued	(92,317		)	(11,466		)	(33,127		)	(136,910		)
Balance at September 30, 2019	$	2,644		$	2,656		$	14,126		$	19,426

Chargebacks and discounts for prompt payment are recorded as a reduction of trade receivables and the remaining reserve balances are classified as Other current liabilities in the accompanying Condensed Consolidated Balance Sheets.

Contract Assets and Liabilities

We receive payments from our licensees based on billing schedules established in each contract. Amounts are recorded as accounts receivable when our right to consideration is unconditional. We may also recognize revenue in advance of the contractual billing schedule and such amounts are recorded as unbilled collaboration revenue when recognized. Unbilled collaboration revenue was zero as of both September 30, 2019 and December 31, 2018. Upfront and milestone payments may require deferral of revenue recognition to a future period until we perform our obligations under these arrangements and are recorded as deferred revenue upon receipt or when due. Deferred revenue was $15.4 million and $15.9 million as of September 30, 2019 and December 31, 2018, respectively. The amount of revenues recognized during the nine months ended September 30, 2019 and 2018 that were included in the beginning deferred revenue balance as of December 31, 2018 and December 31, 2017 was $2.7 million and $6.1 million, respectively

During the three and nine months ended September 30, 2019, we recognized $67.7 million and $129.0 million, respectively, in revenues under Topic 606 for performance obligations satisfied in previous periods as compared to $48.2 million and $151.8 million during the same periods in 2018. Such revenues primarily related to milestone and royalty payments allocated to our license performance obligations of our collaborations with Ipsen, Takeda and Daiichi Sankyo.

Collaboration Agreements

9 Months Ended

Sep. 27, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

COLLABORATION AGREEMENTS

We have established multiple collaborations with leading pharmaceutical companies for the commercialization and further development of cabozantinib, as well as with smaller, discovery-focused biotechnology companies to expand our product pipeline. Additionally, in line with our business strategy prior to the commercialization of our first product, COMETRIQ, we entered into other collaborations with leading pharmaceutical companies including Genentech, Daiichi Sankyo and Bristol-Myers Squibb Company for other compounds and programs in our portfolio. See “Note 3. Collaboration Agreements” to our Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2018 for a description of each of our collaboration agreements.

Under these collaborations, we are generally entitled to receive milestone and royalty payments, and for certain collaborations, payments for product supply services, development cost reimbursements, and/or profit-sharing payments. See “Note 2. Revenues” for information on collaboration revenues recognized during the three and nine months ended September 30, 2019 and 2018.

Commercial Collaborations

Ipsen Collaboration

In February 2016, we entered into a collaboration and license agreement with Ipsen for the commercialization and further development of cabozantinib. Pursuant to the terms of the collaboration agreement, Ipsen received exclusive commercialization rights for current and potential future cabozantinib indications outside of the U.S., Canada and Japan. The collaboration agreement was subsequently amended on three occasions, including in December 2016 to include

commercialization rights in Canada. We have also agreed to collaborate with Ipsen on the development of cabozantinib for current and potential future indications. Collaboration revenues under the collaboration agreement with Ipsen were as follows (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Ipsen collaboration revenues	$	76,016	$	57,186	$	120,133	$	145,038

As of September 30, 2019, $47.1 million of the transaction price allocated to our research and development services performance obligation had not been satisfied. As of September 30, 2019, the net contract liability for the collaboration agreement with Ipsen was $7.2 million which was included in the Long-term portion of deferred revenue in the accompanying Condensed Consolidated Balance Sheets.

Takeda Collaboration

In January 2017, we entered into a collaboration and license agreement with Takeda. Pursuant to this collaboration agreement, Takeda has exclusive commercialization rights for current and potential future cabozantinib indications in Japan, and the parties have agreed to collaborate on the clinical development of cabozantinib in Japan. The collaboration agreement was subsequently amended in March 2018 and April 2019.

The second amendment to the collaboration agreement with Takeda, which was executed on April 29, 2019 and became effective on May 7, 2019 (the Amendment), among other things, reduced the amount of reimbursements we will receive from Takeda for costs associated with our required global pharmacovigilance activities and limits those reimbursements to $1.0 million per year. It also increased the total potential development, regulatory and first-sale milestone payments to be paid to us by Takeda for second-line RCC, first-line RCC and second-line HCC by $12.0 million to $102.0 million, including an increase from $10.0 million to $16.0 million for the milestone we received for the April 2019 submission of a regulatory application for cabozantinib as a treatment for patients with advanced RCC to the Japanese Ministry of Health, Labour and Welfare (MHLW). We continue to be eligible to receive additional development, regulatory and first-sale milestone payments for other potential future indications. The Amendment also increased the amount of Takeda’s total potential commercial milestones by $6.0 million to $89.0 million. We continue to be eligible to receive royalties on net sales of cabozantinib in Japan.

Collaboration revenues under the collaboration agreement with Takeda were as follows (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Takeda collaboration revenues	$	1,187	$	1,940	$	14,245	$	6,843

As of September 30, 2019, $18.7 million of the transaction price allocated to our research and development services performance obligation had not been satisfied. As of September 30, 2019, the net contract liability for the collaboration agreement with Takeda was $8.2 million which was included in the Long-term portion of deferred revenue in the accompanying Condensed Consolidated Balance Sheets.

Genentech Collaboration

In December 2006, we out-licensed the development and commercialization of cobimetinib to Genentech pursuant to a worldwide collaboration agreement. Under the terms of the collaboration agreement, we developed cobimetinib through the determination of the maximum tolerated dose in a phase 1 clinical trial, and Genentech had the option to co-develop cobimetinib, an option that Genentech exercised, and in March 2009, we granted to Genentech an exclusive worldwide revenue-bearing license to cobimetinib, at which point Genentech became responsible for completing the phase 1 clinical trial and the subsequent clinical development.

In November 2015, the U.S. Food and Drug Administration (FDA) approved cobimetinib, under the brand name COTELLIC, in combination with Genentech’s Zelboraf (vemurafenib) as a treatment for patients with BRAF V600E or V600K mutation-positive advanced melanoma. COTELLIC in combination with Zelboraf has also been approved in the European Union and multiple additional countries for use in the same indication. Profits on U.S. commercialization and Royalty revenues on ex-U.S. sales were as follows (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Profits on U.S. commercialization	$	1,102	$	1,935	$	3,507	$	6,004
Royalty revenues on ex-U.S. sales	$	1,614	$	1,390	$	4,426	$	4,285

Daiichi Sankyo

In March 2006, we entered into a collaboration agreement with Daiichi Sankyo pursuant to which we granted to Daiichi Sankyo an exclusive, worldwide license to certain intellectual property primarily relating to compounds that modulate MR, including esaxerenone, an oral, non-steroidal, selective MR antagonist. Daiichi Sankyo was responsible for all further preclinical and clinical development, regulatory, manufacturing and commercialization activities for the compounds.

In January 2019, the Japanese MHLW approved esaxerenone, under the brand name MINNEBRO, as a treatment for patients with hypertension and in May 2019, Daiichi Sankyo had its first commercial sale of MINNEBRO. As a result of the launch, we received a $20.0 million milestone payment from Daiichi Sankyo in June 2019. We are eligible for low double-digit royalties on sales of MINNEBRO. In addition, pursuant to a license agreement we entered into with Ligand Pharmaceuticals, Inc. (Ligand), we are required to pay a royalty of 0.5% to Ligand on net sales of MINNEBRO.

Collaboration revenues under the collaboration agreement with Daiichi Sankyo were as follows (in thousands):



	Nine Months Ended September 30,
	2019		2018
Daiichi Sankyo collaboration revenues	$	20,130	$	20,000

Such collaboration revenues were nominal or zero for the three months ended September 30, 2019 and 2018.

Iconic Therapeutics, Inc. (Iconic) Collaboration

In May 2019, we entered into an exclusive option and license agreement with Iconic. Under the terms of the agreement, we gained an exclusive option to license ICON-2, Iconic’s lead oncology antibody-drug conjugate program, in exchange for an upfront payment to Iconic of $7.5 million and a commitment for preclinical development funding. As of September 30, 2019, we accrued $6.6 million for the preclinical development funding commitment. Both the upfront payment and the accrual for the preclinical development funding commitment were included in Research and development expenses in the accompanying Condensed Consolidated Statements of Income.

If we exercise the option, we would be required to make an option exercise fee payment of $20.0 million to Iconic, we would assume responsibilities for all subsequent clinical development and commercialization activities, and Iconic would become eligible for up to $190.6 million in potential development, regulatory and first-sale milestone payments, $262.5 million in potential commercial milestone payments, as well as royalties on potential sales.

Aurigene Discovery Technologies Limited (Aurigene) Collaboration

In July 2019, we entered into an exclusive collaboration, option and license agreement with Aurigene, and India-based biotechnology company focused on oncology and inflammatory disorders, to in-license as many as six programs. Under the terms of the agreement, we made an upfront payment of $10.0 million for exclusive options to license three preexisting programs. In addition, we and Aurigene selected three additional Aurigene-led drug discovery programs on mutually agreed upon targets, in exchange for additional option payments totaling $7.5 million. We are also responsible for up to $32.6 million in research funding for the discovery and preclinical development work on these programs. As of September 30, 2019, we accrued $1.3 million for the discovery and preclinical development funding commitment.

For each option we decide to exercise, we would be required to pay an exercise fee of either $10.0 million or $12.0 million, depending on the program, and would assume responsibilities for all subsequent clinical development,

commercialization and global manufacturing of that program. Aurigene would then become eligible for up to $148.8 million per program in potential development and regulatory milestone payments, $280.0 million per program in potential commercial milestone payments, as well as royalties on potential sales. Under the terms of the agreement, Aurigene retains limited development and commercial rights for India and Russia.

GSK

In October 2002, we established a product development and commercialization collaboration agreement with GSK. Under the terms of the collaboration agreement, GSK had the right to choose cabozantinib for further development and commercialization, but notified us in October 2008 that it had waived its right to select the compound for such activities. Although the collaboration agreement was terminated in December 2014, we continue to be required to pay a 3% royalty to GSK on the net sales of any product incorporating cabozantinib by us and our collaboration partners. Royalties accruing to GSK in connection with the sales of cabozantinib are included in Cost of goods sold for sales by us and as a reduction of Collaboration revenues for sales by Ipsen. Such royalties accruing to GSK were as follows (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Royalties accruing to GSK	$	7,964	$	6,268	$	23,079	$	17,021

Cash and Investments

9 Months Ended

Sep. 27, 2019

Investments, Debt and Equity Securities [Abstract]

CASH AND INVESTMENTS

Cash, Cash Equivalents and Restricted Cash

A reconciliation of Cash, cash equivalents, and restricted cash reported within our Condensed Consolidated Balance Sheets to the amount reported within the accompanying Condensed Consolidated Statements of Cash Flows was as follows (in thousands):



	September 30, 2019		December 31, 2018		September 30, 2018		December 31, 2017
Cash and cash equivalents	$	242,317	$	314,775	$	353,623	$	183,164
Restricted cash included in short-term restricted cash and investments	—		—		504		504
Restricted cash included in long-term restricted cash and investments	1,000		1,100		1,100		4,646
Cash, cash equivalents, and restricted cash as reported within the accompanying Condensed Consolidated Statements of Cash Flows	$	243,317	$	315,875	$	355,227	$	188,314

Restricted cash includes certificates of deposit used to collateralize letters of credit and, in prior periods, a purchasing card program.

Cash and Investments

Cash and investments by security type were as follows (in thousands):



	September 30, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Investments available-for-sale:
Money market funds	$	26,641	$	—	$	—		$	26,641
Commercial paper	332,239		—		—			332,239
Corporate bonds	703,325		3,549		(67		)	706,807
U.S. Treasury and government sponsored enterprises	152,531		143		(24		)	152,650
Total investments available-for-sale	1,214,736		3,692		(91		)	1,218,337
Cash and restricted cash	901		—		—			901
Certificates of deposit	29,189		3		—			29,192
Total cash and investments	$	1,244,826	$	3,695	$	(91	)	$	1,248,430



	December 31, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Investments available-for-sale:
Money market funds	$	47,744	$	—	$	—		$	47,744
Commercial paper	381,134		—		(1		)	381,133
Corporate bonds	344,741		180		(857		)	344,064
U.S. Treasury and government sponsored enterprises	55,224		2		(25		)	55,201
Total investments available-for-sale	828,843		182		(883		)	828,142
Cash and restricted cash	6,883		—		—			6,883
Certificates of deposit	16,596		—		—			16,596
Total cash and investments	$	852,322	$	182	$	(883	)	$	851,621

Gains and losses on the sales of investments available-for-sale were nominal during the three and nine months ended September 30, 2019 and 2018.

The fair value and gross unrealized losses on investments available-for-sale in an unrealized loss position were as follows (in thousands):



	September 30, 2019
	In an Unrealized Loss Position Less than 12 Months					In an Unrealized Loss Position 12 Months or Greater					Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Corporate bonds	$	73,064	$	(66	)	$	4,398	$	(1	)	$	77,462	$	(67	)
U.S. Treasury and government sponsored enterprises	46,744		(24		)	—		—			46,744		(24		)
Total	$	119,808	$	(90	)	$	4,398	$	(1	)	$	124,206	$	(91	)



	December 31, 2018
	In an Unrealized Loss Position Less than 12 Months					In an Unrealized Loss Position 12 Months or Greater					Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Corporate bonds	$	236,162	$	(606	)	$	39,627	$	(251	)	$	275,789	$	(857	)
U.S. Treasury and government sponsored enterprises	28,105		(16		)	9,182		(9		)	37,287		(25		)
Commercial paper	7,091		(1		)	—		—			7,091		(1		)
Total	$	271,358	$	(623	)	$	48,809	$	(260	)	$	320,167	$	(883	)

There were 43 and 199 investments in an unrealized loss position as of September 30, 2019 and December 31, 2018, respectively. During the three and nine months ended September 30, 2019 and 2018 we did not record any other-than-temporary impairment charges on our available-for-sale securities. Based upon our quarterly impairment review, we determined that the unrealized losses were not attributed to credit risk, but were primarily associated with changes in interest rates. Based on the scheduled maturities of our investments and our determination that it was more likely than not that we will hold these investments for a period of time sufficient for a recovery of our cost basis, we concluded that the unrealized losses in our investment securities were not other-than-temporary.

The fair value of investments available-for-sale by contractual maturity were as follows (in thousands):



	September 30, 2019		December 31, 2018
Maturing in one year or less	$	743,768	$	674,455
Maturing after one year through five years	474,569		153,687
Total investments available-for-sale	$	1,218,337	$	828,142

Related Party Transactions

BlackRock, Inc. (BlackRock), a global provider of investment, advisory and risk management solutions, reported that as of December 31, 2018, the most recent date for which they reported ownership data, their beneficial ownership was more than 10% of our outstanding common stock. BlackRock manages a portion of our cash and investments portfolio. As of September 30, 2019 and December 31, 2018, respectively, the fair value of cash and investments managed by BlackRock was $470.8 million and $298.5 million, which included $1.9 million and $3.0 million invested in the BlackRock Liquidity Money Market Fund. As of September 30, 2019, we also had a $9.0 million payable to BlackRock for unsettled trades that was included in Other current liabilities in the accompanying Condensed Consolidated Balance Sheets. We incurred $0.2 million in fees for BlackRock advisory services performed during the nine months ended September 30, 2019.

Inventory

9 Months Ended

Sep. 27, 2019

Inventory Disclosure [Abstract]

INVENTORY

Inventory consisted of the following (in thousands):



	September 30, 2019		December 31, 2018
Raw materials	$	1,906	$	1,922
Work in process	11,035		6,170
Finished goods	7,311		3,836
Total	$	20,252	$	11,928

Balance Sheet classification:
Current portion included in Inventory	$	13,366	$	9,838
Long-term portion included in Other long-term assets	6,886		2,090
Total	$	20,252	$	11,928

Write-downs related to excess and expiring inventory are charged to Cost of goods sold or the cost of supplied product included in Collaboration revenues. Such write-downs were $0.4 million and $0.8 million for the nine months ended September 30, 2019 and 2018, respectively.

Inventory not expected to be used in production or sold in the next 12 months is classified as Other long-term assets in the accompanying Condensed Consolidated Balance Sheets. As of both September 30, 2019 and December 31, 2018, the long-term portion of inventory consisted of portions of our raw materials and finished goods, and as of September 30, 2019, also a portion of our work in process.

Property and Equipment

9 Months Ended

Sep. 27, 2019

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

Property and equipment consisted of the following (in thousands):



	September 30, 2019			December 31, 2018
Leasehold improvements	$	33,769		$	33,941
Computer equipment and software	17,017			15,022
Furniture and fixtures	13,053			12,709
Laboratory equipment	8,408			5,668
Construction in progress	617			866
	72,864			68,206
Less: accumulated depreciation and amortization	(23,397		)	(17,309		)
Property and equipment, net	$	49,467		$	50,897

Depreciation expense was $2.1 million and $6.1 million for the three and nine months ended September 30, 2019, respectively, as compared to $1.7 million and $2.9 million and for the comparable periods in 2018.

Stock-Based Compensation

9 Months Ended

Sep. 27, 2019

Share-based Payment Arrangement [Abstract]

STOCK-BASED COMPENSATION

We allocated the stock-based compensation expense for our equity incentive plans and our 2000 Employee Stock Purchase Plan (ESPP) as follows (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Research and development	$	4,301	$	3,169	$	13,745	$	9,102
Selling, general and administrative	8,838		6,573		27,002		19,228
Total stock-based compensation	$	13,139	$	9,742	$	40,747	$	28,330

We have several equity incentive plans under which we have granted stock options and restricted stock units (RSUs) to employees and directors. At September 30, 2019, 6,024,995 shares were available for grant under our equity incentive plans.

We used a Monte Carlo simulation pricing model to value stock options that include market vesting conditions and a Black-Scholes Merton option pricing model to value other stock options and ESPP purchases. The weighted average grant-date fair value per share of stock options and ESPP purchases were as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Stock options	$	7.71	$	8.67	$	8.57	$	9.13
ESPP	$	5.39	$	6.19	$	4.93	$	6.96

The grant-date fair value of stock option grants and ESPP purchases was estimated using the following assumptions:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Stock options:
Risk-free interest rate	1.57	%	2.91	%	1.82	%	2.83	%
Dividend yield	—	%	—	%	—	%	—	%
Volatility	48	%	55	%	48	%	55	%
Expected life	4.0 years		4.4 years		4.4 years		4.4 years
ESPP:
Risk-free interest rate	2.09	%	2.11	%	2.34	%	1.74	%
Dividend yield	—	%	—	%	—	%	—	%
Volatility	43	%	51	%	52	%	52	%
Expected life	6 months		6 months		6 months		6 months

We considered our implied volatility and our historical volatility in developing our estimates of expected volatility. The assumptions for the expected life of stock options were based on historical exercise patterns and post-vesting termination behavior. The risk-free interest rate is based on U.S. Treasury rates with the same or similar term as the underlying award. Our dividend rate is based on historical experience and our investors’ current expectations.

The fair value of RSUs was based on the closing price of the underlying common stock on the date of grant.

Activity for stock options during the nine months ended September 30, 2019 was as follows (dollars in thousands, except per share amounts):



	Shares		Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
Options outstanding at December 31, 2018	22,674,062		$	8.71
Granted	1,042,286		$	20.81
Exercised	(3,042,201	)	$	4.94
Forfeited	(160,241	)	$	16.76
Expired	(35,045	)	$	23.41
Options outstanding at September 30, 2019	20,478,861		$	9.80	3.4 years	$	186,407
Exercisable at September 30, 2019	15,860,131		$	7.02	2.8 years	$	181,542

As of September 30, 2019, there was $38.0 million of unrecognized compensation expense related to our unvested stock options. The compensation expense for the unvested stock options will be recognized over a weighted-average period of 2.3 years.

Activity for RSUs during the nine months ended September 30, 2019 was as follows (dollars in thousands, except per share amounts):



	Shares		Weighted Average Grant Date Fair Value Per Share		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
RSUs outstanding at December 31, 2018	4,857,334		$	18.42
Awarded	5,635,362		$	19.54
Vested and released	(484,731	)	$	12.33
Forfeited	(258,142	)	$	18.47
RSUs outstanding at September 30, 2019	9,749,823		$	19.37	2.2 years	$	175,448

As of September 30, 2019, there was $166.0 million of unrecognized compensation expense related to our unvested RSUs, including those RSUs granted in September 2018 and September 2019 that will vest upon the achievement of specific performance targets (PSUs) described below. The compensation expense for the unvested RSUs will be recognized over a weighted-average period of 2.8 years.

During 2019, in connection with our long-term incentive compensation program, we awarded 1,926,605 RSUs (the target amount) that will vest upon the achievement of a performance target related to a product approval by the FDA (the 2019 PSUs); employees may earn 150% of the target amount, or an additional 963,136 shares relative to the target amount, if the performance target is achieved before December 31, 2020 and may earn the full 200% of the target amount, or up to an additional 1,926,605 shares relative to the target amount, if we receive a second product approval. During 2018 we awarded 693,131 RSUs that will vest upon the achievement of certain product revenue, late-stage clinical development and pipeline expansion performance targets (the 2018 PSUs). The 2018 PSUs and 2019 PSUs were designed to drive the performance of our management team and employees toward the achievement of key corporate objectives and will be forfeited if the performance targets are not met by December 31, 2021.

Expense recognition for PSUs commences when it is determined that attainment of the performance target is probable. During the quarter ended June 30, 2019, we achieved one of the two product revenue related performance targets for 114,843 of the 2018 PSUs and determined that it was probable that we would achieve the second product revenue related performance target for 172,272 additional 2018 PSUs. During the quarter ended September 30, 2019, the second product revenue related performance target of the 2018 PSUs was achieved. Those 2018 PSUs will vest over various dates through February 2021. We recognized $0.9 million and $3.5 million in compensation expense related to those 2018 PSUs during the three and nine months ended September 30, 2019, respectively; the remaining unrecognized compensation expense for those 2018 PSUs was $1.7 million as of September 30, 2019. The total unrecognized compensation expense for both the 2019 PSUs and the remaining 2018 PSUs for which we have not yet determined that attainment of the performance target is probable was $82.4 million as of September 30, 2019.

Income Taxes	9 Months Ended
Income Taxes	Sep. 27, 2019
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES Our effective income tax rate was 20.5% and 19.4% during the three and nine months ended September 30, 2019, respectively, as compared to 1.8% and 1.7% during the three and nine months ended September 30, 2018, respectively. The Provision for income taxes relating to our pre-tax income for the three and nine months ended September 30, 2018 was largely offset by a valuation allowance against our net operating loss carryforwards and other deferred tax assets. At December 31, 2018, we released substantially all of our valuation allowance against our deferred tax assets, after we determined that it was more likely than not that these deferred tax assets would be realized. The effective tax rate for the three and nine months ended September 30, 2019 differed from the U.S. federal statutory rate of 21% primarily due to excess tax benefits related to the exercise of certain stock options during those periods.

Net Income Per Share

9 Months Ended

Sep. 27, 2019

Earnings Per Share [Abstract]

NET INCOME PER SHARE

The basic and diluted net income per share were computed as follows (in thousands, except per share amounts):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Numerator:
Net income	$	97,452	$	126,630	$	252,269	$	329,981
Denominator:
Weighted-average shares of common stock outstanding used in computing basic net income per share	303,268		298,416		301,999		297,700
Dilutive securities	12,185		13,930		13,047		15,500
Weighted-average shares of common stock outstanding and dilutive securities used in computing diluted net income per share	315,453		312,346		315,046		313,200

Net income per share, basic	$	0.32	$	0.42	$	0.84	$	1.11
Net income per share, diluted	$	0.31	$	0.41	$	0.80	$	1.05

Dilutive securities include outstanding stock options, unvested RSUs and ESPP contributions. Potential shares of common stock not included in the computation of diluted net income per share because to do so would be anti-dilutive, were as follows (in thousands):



	Three Months Ended September 30,		Nine Months Ended September 30,
	2019	2018	2019	2018
Potentially dilutive securities	6,153	5,687	5,740	2,938

Fair Value Measurements

9 Months Ended

Sep. 27, 2019

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

The classifications within the fair value hierarchy of our financial assets that were measured and recorded at fair value on a recurring basis were as follows (in thousands):



	September 30, 2019
	Level 1		Level 2		Total
Money market funds	$	26,641	$	—	$	26,641
Commercial paper	—		332,239		332,239
Corporate bonds	—		706,807		706,807
U.S. Treasury and government sponsored enterprises	—		152,650		152,650
Total investments available-for-sale	26,641		1,191,696		1,218,337
Certificates of deposit	—		29,192		29,192
Total financial assets carried at fair value	$	26,641	$	1,220,888	$	1,247,529



	December 31, 2018
	Level 1		Level 2		Total
Money market funds	$	47,744	$	—	$	47,744
Commercial paper	—		381,133		381,133
Corporate bonds	—		344,064		344,064
U.S. Treasury and government sponsored enterprises	—		55,201		55,201
Total investments available-for-sale	47,744		780,398		828,142
Certificates of deposit	—		16,596		16,596
Total financial assets carried at fair value	$	47,744	$	796,994	$	844,738

We did not have any financial liabilities measured and recorded at fair value on a recurring basis as of September 30, 2019 or December 31, 2018. We did not have any financial assets or liabilities classified as Level 3 in the fair value hierarchy as of September 30, 2019 or December 31, 2018. There were no transfers of financial assets or liabilities between Levels 1, 2 and 3 during the three and nine months ended September 30, 2019 or 2018.

When available, we value investments based on quoted prices for those financial instruments, which is a Level 1 input. Our remaining investments are valued using third-party pricing sources, which use observable market prices, interest rates and yield curves observable at commonly quoted intervals for similar assets as observable inputs for pricing, which is a Level 2 input.

See “Note 11. Leases” for a description of the determination of the amount of operating lease liabilities. Our remaining financial assets and liabilities include cash and restricted cash, Trade receivables, net, Other receivables, Accounts payable, Accrued compensation and benefits, Accrued clinical trial liabilities, Accrued collaboration liabilities and Rebates and fees due to customers. Those financial assets and liabilities are carried at cost, which approximates their fair values.

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

Revenue from Contract with Customer [Abstract]

Leases

9 Months Ended

Sep. 27, 2019

Leases [Abstract]

LEASES

In May 2017, we entered into a Lease Agreement (the Lease) for our corporate headquarters located at 1851, 1801 and 1751 Harbor Bay Parkway, Alameda, California (the Initial Premises). The Lease was subsequently amended in October 2017, June 2018 and April 2019, resulting in the addition of the building located at 1601 Harbor Bay Parkway and increasing the leased space to an aggregate of 169,606 square feet (the Current Premises) as of September 30, 2019. We have made certain tenant improvements to the space leased on the Initial Premises, for which we received $8.2 million in reimbursements in January 2019. The Lease’s initial term is through January 31, 2028. Rent payments began February 1, 2018, following the conclusion of a partial twelve-month rent abatement period. We have two five-year options to extend the Lease and a one-time option to terminate the Lease without cause on the last day of the 8^th year of the initial term (the Early Termination Right); none of these optional periods have been considered in the determination of the right-of-use asset or the lease liability for the Lease as we did not consider it reasonably certain that we would exercise any such options. The Lease further provides that we are obligated to pay the landlord certain variable costs, including taxes and operating expenses.

The April 2019 amendment to the Lease (the Third Lease Amendment) provides, among other things, for the (i) expansion of the Initial Premises by 37,544 square feet of office facilities located at 1601 Harbor Bay Parkway, Alameda, California (the 1601 Expansion Space) and (ii) surrender of 2,703 square feet of office facilities located at 1751 Harbor Bay Parkway, Alameda, California (the 1751 Space). The term for the 1601 Expansion Space will run coterminous with the term of the Lease for the existing space. We have been provided an allowance of $1.7 million for tenant improvements to the 1601 Expansion Space. As of September 30, 2019, we have surrendered the 1751 Space and we have taken possession of the 1601 Expansion Space, and accordingly we have adjusted our right-of-use asset and lease liability, and have begun to recognize lease costs for the Third Lease Amendment.

The balance sheet classification of our lease liabilities were as follows (in thousands):



	September 30, 2019		December 31, 2018
Operating lease liabilities:
Current portion included in Other current liabilities	$	2,695	$	2,738
Long-term portion of lease liabilities	23,661		12,099
Total operating lease liabilities	26,356		14,837
Financing lease liabilities:
Current portion included in Other current liabilities	50		49
Long-term portion of lease liabilities	44		79
Total financing lease liabilities	94		128
Total lease liabilities	$	26,450	$	14,965

The components of lease costs for operating leases, which were included in Selling, general and administrative expenses in our Condensed Consolidated Statements of Income, were as follows (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Operating lease cost	$	692	$	1,614	$	1,768	$	3,587
Variable lease cost	274		363		654		1,366
Total lease costs	$	966	$	1,977	$	2,422	$	4,953

Cash paid for amounts included in the measurement of lease liabilities for the nine months ended September 30, 2019 was $2.1 million and was included in Net cash provided by operating activities in our Condensed Consolidated Statements of Cash Flows.

As of September 30, 2019, the maturities of our operating lease liabilities were as follows (in thousands):



Remainder of 2019	$	745
Years ending December 31,
2020	3,625
2021	3,731
2022	3,852
2023	3,959
Thereafter	17,444
Total lease payments	33,356
Less:
Present value adjustment	(5,258		)
Tenant improvement reimbursements⁽¹⁾	(1,742		)
Operating lease liabilities	$	26,356

____________________


(1)	Represents anticipated tenant improvement reimbursements applicable to the portion of the 1601 Expansion Space.

Operating lease liabilities are based on the net present value of the remaining lease payments over the remaining lease term. In determining the present value of lease payments, we use our incremental borrowing rate. The weighted average discount rate used to determine the operating lease liability was 4.20%. As of September 30, 2019, the weighted average remaining lease term is 8.3 years.

LEASES

The balance sheet classification of our lease liabilities were as follows (in thousands):



	September 30, 2019		December 31, 2018
Operating lease liabilities:
Current portion included in Other current liabilities	$	2,695	$	2,738
Long-term portion of lease liabilities	23,661		12,099
Total operating lease liabilities	26,356		14,837
Financing lease liabilities:
Current portion included in Other current liabilities	50		49
Long-term portion of lease liabilities	44		79
Total financing lease liabilities	94		128
Total lease liabilities	$	26,450	$	14,965



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Operating lease cost	$	692	$	1,614	$	1,768	$	3,587
Variable lease cost	274		363		654		1,366
Total lease costs	$	966	$	1,977	$	2,422	$	4,953

As of September 30, 2019, the maturities of our operating lease liabilities were as follows (in thousands):



Remainder of 2019	$	745
Years ending December 31,
2020	3,625
2021	3,731
2022	3,852
2023	3,959
Thereafter	17,444
Total lease payments	33,356
Less:
Present value adjustment	(5,258		)
Tenant improvement reimbursements⁽¹⁾	(1,742		)
Operating lease liabilities	$	26,356

____________________


(1)	Represents anticipated tenant improvement reimbursements applicable to the portion of the 1601 Expansion Space.

Subsequent Events	9 Months Ended
Subsequent Events	Sep. 27, 2019
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 12. SUBSEQUENT EVENTS Build to Suit Lease On October 25, 2019, we entered into a build-to-suit Lease Agreement (the Build-to-Suit Lease) with Ernst Development Partners, Inc. (Ernst), for approximately 220,000 square feet of office space located in Alameda, California (the New Premises), adjacent to the Current Premises. The term of the Build-to-Suit Lease is for a period of 242 months (the Term), which will begin on the completion of the building and tenant improvements by Ernst. The Term is currently anticipated to begin on October 25, 2021. The monthly base rent under the Build-to-Suit Lease will equal to a percentage of the total development costs incurred in connection with the development of the New Premises (excluding the cost of the tenant improvements in excess of the allowance provided by Ernst and any development costs we pay) and is currently estimated to be about $726,000, subject to an annual increase of 3% during the Term. The monthly base rent will begin sixty days following commencement of the Term. We will also be responsible for paying operating expenses related to the New Premises. The Build-to-Suit Lease includes two five-year options to extend the term of the Build-to-Suit Lease, exercisable under certain conditions and at a market rate determined in accordance with the Build-to-Suit Lease. We have a one-time option to terminate the Build-to-Suit Lease without cause after the 180^th month of the Term, exercisable under certain conditions as described in the Build-to-Suit Lease and subject to a termination payment calculated in accordance with the Build-to-Suit Lease. See Part II, Item 5 of this Quarterly Report on Form 10-Q for more information about the Build to Suit Lease. Fourth Amendment to the Lease In the fourth quarter of 2019, Hillwood Enterprises, L.P. (Hillwood) is expected to purchase the project known as 1750 North Loop Road and 1601, 1701, 1751, 1801 and 1851 Harbor Bay Parkway, Alameda, California from Ascentris 105, LLC (the Purchase), which project includes the Current Premises. Effective upon the Purchase, Hillwood will become the landlord pursuant to the Lease. On August 30, 2019, we entered into an amendment to the Lease with Hillwood (the Fourth Lease Amendment), pursuant to which each of our rights and obligations are contingent upon the Purchase. Effective upon the Purchase, the Fourth Lease Amendment will provide for, among other things, the (i) expansion of the Current Premises by 59,335 square feet of laboratory facilities located at 1701 Harbor Bay Parkway, Alameda, California, (ii) extension of the Lease term through October 31, 2031 and (iii) elimination of the Early Termination Right. As of September 30, 2019, we have not yet recorded a right-of-use asset or lease liability for the Fourth Lease Amendment, and the remainder of the disclosures in this note do not reflect the impact of this amendment. See Part II, Item 5 of this Quarterly Report on Form 10-Q for more information about the Fourth Lease Amendment.

Organization and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 27, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Consolidation	Basis of Consolidation The accompanying Condensed Consolidated Financial Statements include the accounts of Exelixis and those of our wholly-owned subsidiaries. These entities’ functional currency is the U.S. dollar. All intercompany balances and transactions have been eliminated.
Basis of Presentation	Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the U.S. for interim financial information and pursuant to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (SEC). Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In our opinion, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation of our financial statements for the periods presented have been included.
Fiscal Period	We have adopted a 52- or 53-week fiscal year policy that generally ends on the Friday closest to December 31^st. Fiscal year 2019, which is a 53-week fiscal year, will end on January 3, 2020 and fiscal year 2018, which was a 52-week fiscal year, ended on December 28, 2018. For convenience, references in this report as of and for the fiscal periods ended September 27, 2019, June 28, 2019, September 28, 2018 and June 29, 2018, and as of and for the fiscal years ending January 3, 2020, and ended December 28, 2018 and December 29, 2017, are indicated as being as of and for the periods ended September 30, 2019, June 30, 2019, September 30, 2018 and June 30, 2018 and the years ending December 31, 2019, and ended December 31, 2018 and December 31, 2017, respectively. Similarly, references in this report to the first day of the fiscal year ended January 3, 2020 are indicated as being as of January 1, 2019 and the first day of the fiscal quarter ended September 27, 2019 are indicated as being as of July 1, 2019.
Segment Information	Segment Information We operate in one business segment that focuses on the discovery, development and commercialization of new medicines for difficult-to-treat cancers. Our Chief Executive Officer, as the chief operating decision-maker, manages and allocates resources to our operations on a total consolidated basis. Consistent with this decision-making process, our Chief Executive Officer uses consolidated, single-segment financial information for purposes of evaluating performance, forecasting future period financial results, allocating resources and setting incentive targets. All of our long-lived assets are located in the U.S.
Use of Estimates	Use of Estimates The preparation of the accompanying Condensed Consolidated Financial Statements conforms to accounting principles generally accepted in the U.S., which requires management to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities, equity, revenues and expenses, and related disclosures. On an ongoing basis, management evaluates its estimates including, but not limited to: those related to revenue recognition, including determining the nature and timing of satisfaction of performance obligations, and determining the standalone selling price of performance obligations, and variable consideration such as rebates, chargebacks, sales returns, sales allowances, and milestone payments included in collaboration arrangements; the amounts of revenues and expenses under our profit and loss sharing agreement; the recoverability of inventory; the amounts of operating lease right-of-use assets and lease liabilities; the amounts of deferred tax assets and liabilities including the related valuation allowance; the accrual for certain liabilities including accrued clinical trial liabilities; and valuations of equity awards used to determine stock-based compensation, including certain awards with vesting subject to market or performance conditions. We base our estimates on historical experience and on various other market-specific and other relevant assumptions that we believe 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 sources. Actual results could differ materially from those estimates.
Recently Adopted Accounting Pronouncements and Recent Accounting Pronouncements Not Yet Adopted	Recently Adopted Accounting Pronouncements On July 1, 2019, we adopted ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (ASU 2018-15). ASU 2018-15 requires a customer in a hosting arrangement that is a service contract to follow the guidance in Accounting Standards Codification (ASC) Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense and requires us to expense the capitalized implementation costs over the term of the hosting arrangement, which includes reasonably certain renewals. ASU 2018-15 was adopted using the prospective transition method in the accompanying Condensed Consolidated Financial Statements. The adoption of ASU 2018-15 did not have a material impact on our Condensed Consolidated Financial Statements. On January 1, 2019, we adopted ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220) (ASU 2018-02). There was no financial impact from the adoption of ASU 2018-02 and we did not make an election to reclassify the income tax effects of the Tax Cuts and Jobs Act of 2017 from Accumulated other comprehensive income (loss) to Accumulated deficit. In connection with the adoption of ASU 2018-02, we have adopted the individual unit of account approach for releasing income tax effects from Accumulated other comprehensive income (loss). On January 1, 2019, we also adopted ASU 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20) (ASU 2017-08). ASU 2017-08 shortens the amortization period for certain callable debt securities held at a premium. Specifically, ASU 2017-08 requires the premium to be amortized to the earliest call date. ASU 2017-08 does not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The financial impact from the adoption of ASU 2017-08 was nominal. Recent Accounting Pronouncements Not Yet Adopted In November 2018, the Financial Accounting Standards Board (FASB) issued ASU No. 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606 (ASU 2018-18). ASU 2018-18 clarifies that certain transactions between collaborative arrangement participants should be accounted for as revenue under Topic 606 when the counterparty is a customer for a distinct good or service (i.e. a unit of account). For units of account that are in the scope of Topic 606, all of the guidance in Topic 606 should be applied, including the guidance on recognition, measurement, presentation and disclosure. ASU 2018-18 also adds a reference in ASC Topic 808, Collaborative Arrangements (Topic 808) to the unit of account guidance in Topic 606 and requires that it be applied only to assess whether transactions in a collaborative arrangement are in the scope of Topic 606. ASU 2018-18 will preclude entities from presenting amounts related to transactions with a counterparty in a collaborative arrangement that is not a customer as revenue from contracts with customers. ASU 2018-18 is effective for us for all interim and annual reporting periods beginning after December 15, 2019. Early adoption is permitted. We are in the process of assessing the impact of ASU 2018-18 on our Condensed Consolidated Financial Statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (ASU 2017-04). ASU 2017-04 eliminated Step 2 from the goodwill impairment test. Instead, under the amendments in ASU 2017-04, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. ASU 2017-04 is effective for all interim and annual reporting periods beginning after December 15, 2019. Early adoption is permitted. We do not expect the adoption of ASU 2017-04 to have a material impact on our Condensed Consolidated Financial Statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326) (ASU 2016-13). ASU 2016-13 implements an impairment model, known as the current expected credit loss model that is based on expected losses rather than incurred losses. Under the new guidance, an entity will recognize as an allowance its estimate of expected credit losses. 2016-13 is effective for all interim and annual reporting periods beginning after December 15, 2019. Early adoption is permitted. We do not expect the adoption of ASU 2016-13 to have a material impact on our Condensed Consolidated Financial Statements.
Revenues	Chargebacks and discounts for prompt payment are recorded as a reduction of trade receivables and the remaining reserve balances are classified as Other current liabilities in the accompanying Condensed Consolidated Balance Sheets. Contract Assets and Liabilities We receive payments from our licensees based on billing schedules established in each contract. Amounts are recorded as accounts receivable when our right to consideration is unconditional. We may also recognize revenue in advance of the contractual billing schedule and such amounts are recorded as unbilled collaboration revenue when recognized. Unbilled collaboration revenue was zero as of both September 30, 2019 and December 31, 2018. Upfront and milestone payments may require deferral of revenue recognition to a future period until we perform our obligations under these arrangements and are recorded as deferred revenue upon receipt or when due. Net product revenues are attributed to geographic region based on the ship-to location. Collaboration revenues are attributed to geographic region based on the location of our collaboration partners’ headquarters. Net product revenues, License revenues and Research and development services revenues were recorded in accordance with Topic 606 for all periods presented. Net product revenues and License revenues related to goods and intellectual property licenses transferred at a point in time and Research and development services revenues related to services performed over time. Other collaboration revenues, which included the profit on the U.S. commercialization of COTELLIC and net losses on product supply services, were recorded in accordance with Topic 808 for all periods presented.

Revenues (Tables)

9 Months Ended

Sep. 27, 2019

Disaggregation of Revenue

Revenues by disaggregated category were as follows (in thousands):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Product revenues:
Gross product revenues	$	239,916		$	193,356		$	704,084		$	525,438
Discounts and allowances	(48,148		)	(30,410		)	(139,060		)	(82,384		)
Net product revenues	191,768			162,946			565,024			443,054
Collaboration revenues:
License revenues⁽¹⁾	68,035			51,323			128,937			152,261
Research and development services revenues⁽²⁾	12,988			10,560			35,814			27,464
Other collaboration revenues⁽³⁾	(1,088		)	568			(2,310		)	2,445
Total collaboration revenues	79,935			62,451			162,441			182,170
Total revenues	$	271,703		$	225,397		$	727,465		$	625,224

____________________


(1)	License revenues included the recognition of the portion of milestones allocated to the transfer of intellectual property licenses for which it had become probable in the current period that the milestone would be achieved and a significant revenue reversal would not occur, as well as royalty revenues from Ipsen Pharma SAS (Ipsen), Genentech and Daiichi Sankyo.


(2)	Research and development services revenues included the recognition of deferred revenue for the portion of upfront and milestone payments that have been allocated to research and development services performance obligations, as well as development cost reimbursements earned on our collaboration agreements.


(3)	Other collaboration revenues included the profit on the U.S. commercialization of COTELLIC from Genentech and revenues on product supply services provided to Ipsen and Takeda Pharmaceutical Company Ltd. (Takeda), which were offset by the 3% royalty we are required to pay GlaxoSmithKline (GSK) on the net sales by Ipsen of any product incorporating cabozantinib.

Net product revenues disaggregated by product were as follows (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
CABOMETYX	$	187,410	$	158,262	$	552,315	$	428,317
COMETRIQ	4,358		4,684		12,709		14,737
Net product revenues	$	191,768	$	162,946	$	565,024	$	443,054

Total revenues disaggregated by significant customer were as follows (dollars in thousands):



	Three Months Ended September 30,
	2019				2018
	Dollars		Percent of Total		Dollars		Percent of Total
Ipsen	$	76,016	28	%	$	57,186	25	%
Caremark L.L.C.	35,703		13	%	30,707		14	%
Affiliates of McKesson Corporation	31,901		12	%	26,597		12	%
Affiliates of AmerisourceBergen Corporation	25,235		9	%	17,232		8	%
Others, individually less than 10% of Total revenues for all periods presented	102,848		38	%	93,675		41	%
Total revenues	$	271,703	100	%	$	225,397	100	%



	Nine Months Ended September 30,
	2019				2018
	Dollars		Percent of Total		Dollars		Percent of Total
Ipsen	$	120,133	17	%	$	145,038	23	%
Caremark L.L.C.	105,638		15	%	83,516		13	%
Affiliates of McKesson Corporation	88,496		12	%	71,249		11	%
Affiliates of AmerisourceBergen Corporation	70,503		10	%	49,995		8	%
Others, individually less than 10% of Total revenues for all periods presented	342,695		46	%	275,426		45	%
Total revenues	$	727,465	100	%	$	625,224	100	%

Total revenues disaggregated by geographic region were as follows (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
U.S.	$	194,484	$	166,270	$	572,957	$	453,342
Europe	76,017		57,186		120,134		145,038
Japan	1,202		1,941		34,374		26,844
Total revenues	$	271,703	$	225,397	$	727,465	$	625,224

Activities and Ending Reserve Balances for Significant Categories of Discounts and Allowances

The activities and ending reserve balances for each significant category of discounts and allowances (which constitute variable consideration) were as follows (in thousands):



	Chargebacks and Discounts for Prompt Payment			Other Customer Credits/Fees and Co-pay Assistance			Rebates			Total
Balance at December 31, 2018	$	2,322		$	3,038		$	11,916		$	17,276
Provision related to sales made in:
Current period	92,769			11,190			35,422			139,381
Prior periods	(130		)	(106		)	(85		)	(321		)
Payments and customer credits issued	(92,317		)	(11,466		)	(33,127		)	(136,910		)
Balance at September 30, 2019	$	2,644		$	2,656		$	14,126		$	19,426

Collaboration Agreements (Tables)

9 Months Ended

Sep. 27, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Collaborative Revenues Under Collaboration Agreement

Collaboration revenues under the collaboration agreement with Takeda were as follows (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Takeda collaboration revenues	$	1,187	$	1,940	$	14,245	$	6,843

Collaboration revenues under the collaboration agreement with Ipsen were as follows (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Ipsen collaboration revenues	$	76,016	$	57,186	$	120,133	$	145,038

Profits on U.S. commercialization and Royalty revenues on ex-U.S. sales were as follows (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Profits on U.S. commercialization	$	1,102	$	1,935	$	3,507	$	6,004
Royalty revenues on ex-U.S. sales	$	1,614	$	1,390	$	4,426	$	4,285

Collaboration revenues under the collaboration agreement with Daiichi Sankyo were as follows (in thousands):



	Nine Months Ended September 30,
	2019		2018
Daiichi Sankyo collaboration revenues	$	20,130	$	20,000

Such royalties accruing to GSK were as follows (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Royalties accruing to GSK	$	7,964	$	6,268	$	23,079	$	17,021

Cash and Investments (Tables)

9 Months Ended

Sep. 27, 2019

Investments, Debt and Equity Securities [Abstract]

Reconciliation of Cash, Cash Equivalents, and Restricted Cash



	September 30, 2019		December 31, 2018		September 30, 2018		December 31, 2017
Cash and cash equivalents	$	242,317	$	314,775	$	353,623	$	183,164
Restricted cash included in short-term restricted cash and investments	—		—		504		504
Restricted cash included in long-term restricted cash and investments	1,000		1,100		1,100		4,646
Cash, cash equivalents, and restricted cash as reported within the accompanying Condensed Consolidated Statements of Cash Flows	$	243,317	$	315,875	$	355,227	$	188,314

Reconciliation of Cash, Cash Equivalents, and Restricted Cash



	September 30, 2019		December 31, 2018		September 30, 2018		December 31, 2017
Cash and cash equivalents	$	242,317	$	314,775	$	353,623	$	183,164
Restricted cash included in short-term restricted cash and investments	—		—		504		504
Restricted cash included in long-term restricted cash and investments	1,000		1,100		1,100		4,646
Cash, cash equivalents, and restricted cash as reported within the accompanying Condensed Consolidated Statements of Cash Flows	$	243,317	$	315,875	$	355,227	$	188,314

Investments by Security Type

Cash and investments by security type were as follows (in thousands):



	September 30, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Investments available-for-sale:
Money market funds	$	26,641	$	—	$	—		$	26,641
Commercial paper	332,239		—		—			332,239
Corporate bonds	703,325		3,549		(67		)	706,807
U.S. Treasury and government sponsored enterprises	152,531		143		(24		)	152,650
Total investments available-for-sale	1,214,736		3,692		(91		)	1,218,337
Cash and restricted cash	901		—		—			901
Certificates of deposit	29,189		3		—			29,192
Total cash and investments	$	1,244,826	$	3,695	$	(91	)	$	1,248,430



	December 31, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Investments available-for-sale:
Money market funds	$	47,744	$	—	$	—		$	47,744
Commercial paper	381,134		—		(1		)	381,133
Corporate bonds	344,741		180		(857		)	344,064
U.S. Treasury and government sponsored enterprises	55,224		2		(25		)	55,201
Total investments available-for-sale	828,843		182		(883		)	828,142
Cash and restricted cash	6,883		—		—			6,883
Certificates of deposit	16,596		—		—			16,596
Total cash and investments	$	852,322	$	182	$	(883	)	$	851,621

Fair Value and Gross Unrealized Losses of Investments Available-for-Sale in an Unrealized Loss Position

The fair value and gross unrealized losses on investments available-for-sale in an unrealized loss position were as follows (in thousands):



	September 30, 2019
	In an Unrealized Loss Position Less than 12 Months					In an Unrealized Loss Position 12 Months or Greater					Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Corporate bonds	$	73,064	$	(66	)	$	4,398	$	(1	)	$	77,462	$	(67	)
U.S. Treasury and government sponsored enterprises	46,744		(24		)	—		—			46,744		(24		)
Total	$	119,808	$	(90	)	$	4,398	$	(1	)	$	124,206	$	(91	)



	December 31, 2018
	In an Unrealized Loss Position Less than 12 Months					In an Unrealized Loss Position 12 Months or Greater					Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Corporate bonds	$	236,162	$	(606	)	$	39,627	$	(251	)	$	275,789	$	(857	)
U.S. Treasury and government sponsored enterprises	28,105		(16		)	9,182		(9		)	37,287		(25		)
Commercial paper	7,091		(1		)	—		—			7,091		(1		)
Total	$	271,358	$	(623	)	$	48,809	$	(260	)	$	320,167	$	(883	)

Fair Value of Cash Equivalents and Investments by Contractual Maturity

The fair value of investments available-for-sale by contractual maturity were as follows (in thousands):



	September 30, 2019		December 31, 2018
Maturing in one year or less	$	743,768	$	674,455
Maturing after one year through five years	474,569		153,687
Total investments available-for-sale	$	1,218,337	$	828,142

Inventory (Tables)

9 Months Ended

Sep. 27, 2019

Inventory Disclosure [Abstract]

Inventory

Inventory consisted of the following (in thousands):



	September 30, 2019		December 31, 2018
Raw materials	$	1,906	$	1,922
Work in process	11,035		6,170
Finished goods	7,311		3,836
Total	$	20,252	$	11,928

Balance Sheet classification:
Current portion included in Inventory	$	13,366	$	9,838
Long-term portion included in Other long-term assets	6,886		2,090
Total	$	20,252	$	11,928

Property and Equipment (Tables)

9 Months Ended

Sep. 27, 2019

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and equipment consisted of the following (in thousands):



	September 30, 2019			December 31, 2018
Leasehold improvements	$	33,769		$	33,941
Computer equipment and software	17,017			15,022
Furniture and fixtures	13,053			12,709
Laboratory equipment	8,408			5,668
Construction in progress	617			866
	72,864			68,206
Less: accumulated depreciation and amortization	(23,397		)	(17,309		)
Property and equipment, net	$	49,467		$	50,897

Stock-Based Compensation (Tables)

9 Months Ended

Sep. 27, 2019

Share-based Payment Arrangement [Abstract]

Allocated Employee Stock-Based Compensation Expense

We allocated the stock-based compensation expense for our equity incentive plans and our 2000 Employee Stock Purchase Plan (ESPP) as follows (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Research and development	$	4,301	$	3,169	$	13,745	$	9,102
Selling, general and administrative	8,838		6,573		27,002		19,228
Total stock-based compensation	$	13,139	$	9,742	$	40,747	$	28,330

Weighted Average Grant-Date Fair Value of Stock Options and ESPP Purchases

The weighted average grant-date fair value per share of stock options and ESPP purchases were as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Stock options	$	7.71	$	8.67	$	8.57	$	9.13
ESPP	$	5.39	$	6.19	$	4.93	$	6.96

Valuation Assumptions Used to Estimate Grant-Date Fair Value

The grant-date fair value of stock option grants and ESPP purchases was estimated using the following assumptions:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Stock options:
Risk-free interest rate	1.57	%	2.91	%	1.82	%	2.83	%
Dividend yield	—	%	—	%	—	%	—	%
Volatility	48	%	55	%	48	%	55	%
Expected life	4.0 years		4.4 years		4.4 years		4.4 years
ESPP:
Risk-free interest rate	2.09	%	2.11	%	2.34	%	1.74	%
Dividend yield	—	%	—	%	—	%	—	%
Volatility	43	%	51	%	52	%	52	%
Expected life	6 months		6 months		6 months		6 months

Stock Option Activity

Activity for stock options during the nine months ended September 30, 2019 was as follows (dollars in thousands, except per share amounts):



	Shares		Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
Options outstanding at December 31, 2018	22,674,062		$	8.71
Granted	1,042,286		$	20.81
Exercised	(3,042,201	)	$	4.94
Forfeited	(160,241	)	$	16.76
Expired	(35,045	)	$	23.41
Options outstanding at September 30, 2019	20,478,861		$	9.80	3.4 years	$	186,407
Exercisable at September 30, 2019	15,860,131		$	7.02	2.8 years	$	181,542

RSU Activity

Activity for RSUs during the nine months ended September 30, 2019 was as follows (dollars in thousands, except per share amounts):



	Shares		Weighted Average Grant Date Fair Value Per Share		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
RSUs outstanding at December 31, 2018	4,857,334		$	18.42
Awarded	5,635,362		$	19.54
Vested and released	(484,731	)	$	12.33
Forfeited	(258,142	)	$	18.47
RSUs outstanding at September 30, 2019	9,749,823		$	19.37	2.2 years	$	175,448

Net Income Per Share (Tables)

9 Months Ended

Sep. 27, 2019

Earnings Per Share [Abstract]

Computation of Basic and Diluted Net Income Per Share

The basic and diluted net income per share were computed as follows (in thousands, except per share amounts):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Numerator:
Net income	$	97,452	$	126,630	$	252,269	$	329,981
Denominator:
Weighted-average shares of common stock outstanding used in computing basic net income per share	303,268		298,416		301,999		297,700
Dilutive securities	12,185		13,930		13,047		15,500
Weighted-average shares of common stock outstanding and dilutive securities used in computing diluted net income per share	315,453		312,346		315,046		313,200

Net income per share, basic	$	0.32	$	0.42	$	0.84	$	1.11
Net income per share, diluted	$	0.31	$	0.41	$	0.80	$	1.05

Potential Shares of Common Stock Not Included in the Computation of Diluted Net Income (Loss) Per Share

Potential shares of common stock not included in the computation of diluted net income per share because to do so would be anti-dilutive, were as follows (in thousands):



	Three Months Ended September 30,		Nine Months Ended September 30,
	2019	2018	2019	2018
Potentially dilutive securities	6,153	5,687	5,740	2,938

Fair Value Measurements (Tables)

9 Months Ended

Sep. 27, 2019

Fair Value Disclosures [Abstract]

Classification of Financial Assets Measured and Recorded at Fair Value on a Recurring Basis

The classifications within the fair value hierarchy of our financial assets that were measured and recorded at fair value on a recurring basis were as follows (in thousands):



	September 30, 2019
	Level 1		Level 2		Total
Money market funds	$	26,641	$	—	$	26,641
Commercial paper	—		332,239		332,239
Corporate bonds	—		706,807		706,807
U.S. Treasury and government sponsored enterprises	—		152,650		152,650
Total investments available-for-sale	26,641		1,191,696		1,218,337
Certificates of deposit	—		29,192		29,192
Total financial assets carried at fair value	$	26,641	$	1,220,888	$	1,247,529



	December 31, 2018
	Level 1		Level 2		Total
Money market funds	$	47,744	$	—	$	47,744
Commercial paper	—		381,133		381,133
Corporate bonds	—		344,064		344,064
U.S. Treasury and government sponsored enterprises	—		55,201		55,201
Total investments available-for-sale	47,744		780,398		828,142
Certificates of deposit	—		16,596		16,596
Total financial assets carried at fair value	$	47,744	$	796,994	$	844,738

Leases (Tables)

9 Months Ended

Sep. 27, 2019

Leases [Abstract]

Balance Sheet Classification of Lease Liabilities

The balance sheet classification of our lease liabilities were as follows (in thousands):



	September 30, 2019		December 31, 2018
Operating lease liabilities:
Current portion included in Other current liabilities	$	2,695	$	2,738
Long-term portion of lease liabilities	23,661		12,099
Total operating lease liabilities	26,356		14,837
Financing lease liabilities:
Current portion included in Other current liabilities	50		49
Long-term portion of lease liabilities	44		79
Total financing lease liabilities	94		128
Total lease liabilities	$	26,450	$	14,965

Components of Lease Expense



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Operating lease cost	$	692	$	1,614	$	1,768	$	3,587
Variable lease cost	274		363		654		1,366
Total lease costs	$	966	$	1,977	$	2,422	$	4,953

Maturities of Operating Lease Liabilities

As of September 30, 2019, the maturities of our operating lease liabilities were as follows (in thousands):



Remainder of 2019	$	745
Years ending December 31,
2020	3,625
2021	3,731
2022	3,852
2023	3,959
Thereafter	17,444
Total lease payments	33,356
Less:
Present value adjustment	(5,258		)
Tenant improvement reimbursements⁽¹⁾	(1,742		)
Operating lease liabilities	$	26,356

____________________

(1)

Represents anticipated tenant improvement reimbursements applicable to the portion of the 1601 Expansion Space.

Organization and Summary of Significant Accounting Policies (Details)	9 Months Ended
	Sep. 27, 2019 segment product
Organization And Summary Of Significant Policies [Line Items]
Number of products that entered in the commercial marketplace	4
Number of business segments \| segment	1
Products Derived from Cabozantinib
Organization And Summary Of Significant Policies [Line Items]
Number of products that entered in the commercial marketplace	2
Resulting from Discovery Efforts
Organization And Summary Of Significant Policies [Line Items]
Number of products that entered in the commercial marketplace	2

Revenues - Revenues by Disaggregated Category (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2019	Sep. 28, 2018	Sep. 27, 2019	Sep. 28, 2018
Disaggregation of Revenue [Line Items]
Total revenues	$ 271,703	$ 225,397	$ 727,465	$ 625,224
Collaborative Arrangement with Ipsen
Disaggregation of Revenue [Line Items]
Total revenues	76,016	57,186	$ 120,133	145,038
GSK \| Collaborative Arrangement with Ipsen
Disaggregation of Revenue [Line Items]
Percent of royalty on net sale			3.00%
Net product revenues
Disaggregation of Revenue [Line Items]
Total revenues	191,768	162,946	$ 565,024	443,054
Gross product revenues
Disaggregation of Revenue [Line Items]
Total revenues	239,916	193,356	704,084	525,438
Discounts and allowances
Disaggregation of Revenue [Line Items]
Total revenues	48,148	30,410	139,060	82,384
Total collaboration revenues
Disaggregation of Revenue [Line Items]
Total revenues	79,935	62,451	162,441	182,170
License revenues
Disaggregation of Revenue [Line Items]
Total revenues	68,035	51,323	128,937	152,261
Research and development services revenues
Disaggregation of Revenue [Line Items]
Total revenues	12,988	10,560	35,814	27,464
Other collaboration revenues
Disaggregation of Revenue [Line Items]
Total revenues	$ (1,088)	$ 568	$ (2,310)	$ 2,445

Revenues - Net Product Revenues Disaggregated by Product (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2019	Sep. 28, 2018	Sep. 27, 2019	Sep. 28, 2018
Disaggregation of Revenue [Line Items]
Net product revenues	$ 271,703	$ 225,397	$ 727,465	$ 625,224
Net product revenues
Disaggregation of Revenue [Line Items]
Net product revenues	191,768	162,946	565,024	443,054
CABOMETYX
Disaggregation of Revenue [Line Items]
Net product revenues	187,410	158,262	552,315	428,317
COMETRIQ
Disaggregation of Revenue [Line Items]
Net product revenues	$ 4,358	$ 4,684	$ 12,709	$ 14,737

Revenues - Revenues Disaggregated by Significant Customer (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2019	Sep. 28, 2018	Sep. 27, 2019	Sep. 28, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	$ 271,703	$ 225,397	$ 727,465	$ 625,224
Revenue \| Customer Concentration Risk
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Percent of total revenues	100.00%	100.00%	100.00%	100.00%
Ipsen
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	$ 76,016	$ 57,186	$ 120,133	$ 145,038
Ipsen \| Revenue \| Customer Concentration Risk
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Percent of total revenues	28.00%	25.00%	17.00%	23.00%
Caremark L.L.C.
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	$ 35,703	$ 30,707	$ 105,638	$ 83,516
Caremark L.L.C. \| Revenue \| Customer Concentration Risk
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Percent of total revenues	13.00%	14.00%	15.00%	13.00%
Affiliates of McKesson Corporation
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	$ 31,901	$ 26,597	$ 88,496	$ 71,249
Affiliates of McKesson Corporation \| Revenue \| Customer Concentration Risk
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Percent of total revenues	12.00%	12.00%	12.00%	11.00%
Affiliates of AmerisourceBergen Corporation
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	$ 25,235	$ 17,232	$ 70,503	$ 49,995
Affiliates of AmerisourceBergen Corporation \| Revenue \| Customer Concentration Risk
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Percent of total revenues	9.00%	8.00%	10.00%	8.00%
Others, individually less than 10% of Total revenues for all periods presented
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	$ 102,848	$ 93,675	$ 342,695	$ 275,426
Others, individually less than 10% of Total revenues for all periods presented \| Revenue \| Customer Concentration Risk
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Percent of total revenues	38.00%	41.00%	46.00%	45.00%

Revenues - Revenues Disaggregated by Geographic Region (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2019	Sep. 28, 2018	Sep. 27, 2019	Sep. 28, 2018
Disaggregation of Revenue [Line Items]
Total revenues	$ 271,703	$ 225,397	$ 727,465	$ 625,224
U.S.
Disaggregation of Revenue [Line Items]
Total revenues	194,484	166,270	572,957	453,342
Europe
Disaggregation of Revenue [Line Items]
Total revenues	76,017	57,186	120,134	145,038
Japan
Disaggregation of Revenue [Line Items]
Total revenues	$ 1,202	$ 1,941	$ 34,374	$ 26,844

Revenues - Activities and Ending Reserve Balances for Significant Categories of Discounts and Allowances (Details) $ in Thousands	9 Months Ended
	Sep. 27, 2019 USD ($)
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at December 31, 2018	$ 17,276
Provision related to sales made in:
Current period	139,381
Prior periods	(321)
Payments and customer credits issued	(136,910)
Balance at September 30, 2019	19,426
Chargebacks and Discounts for Prompt Payment
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at December 31, 2018	2,322
Provision related to sales made in:
Current period	92,769
Prior periods	(130)
Payments and customer credits issued	(92,317)
Balance at September 30, 2019	2,644
Other Customer Credits/Fees and Co-pay Assistance
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at December 31, 2018	3,038
Provision related to sales made in:
Current period	11,190
Prior periods	(106)
Payments and customer credits issued	(11,466)
Balance at September 30, 2019	2,656
Rebates
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at December 31, 2018	11,916
Provision related to sales made in:
Current period	35,422
Prior periods	(85)
Payments and customer credits issued	(33,127)
Balance at September 30, 2019	$ 14,126

Revenues - Contract Assets and Liabilities under Topic 606 (Details) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Sep. 27, 2019

Sep. 28, 2018

Sep. 27, 2019

Sep. 28, 2018

Dec. 28, 2018

Revenue from Contract with Customer [Abstract]

Unbilled collaboration revenue

$ 0

Deferred revenue

15,399

$ 15,897

^[1]

Amount of revenues recognized included in the beginning contract liability balance

2,700

$ 6,100

Revenues recognized for performance obligations satisfied in previous periods

$ 67,700

$ 48,200

$ 129,000

$ 151,800

[1]	The Condensed Consolidated Balance Sheet as of December 31, 2018 has been derived from the audited financial statements as of that date.

Collaboration Agreements - Collaboration Revenues under the Collaboration Agreement with Ipsen (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2019	Sep. 28, 2018	Sep. 27, 2019	Sep. 28, 2018
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Total revenues	$ 271,703	$ 225,397	$ 727,465	$ 625,224
Collaborative Arrangement with Ipsen
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Total revenues	$ 76,016	$ 57,186	$ 120,133	$ 145,038

Collaboration Agreements - Ipsen Collaboration (Details) - USD ($)
$ in Thousands

Sep. 27, 2019

Dec. 28, 2018

^[1]

Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]

Net contract liability

$ 15,399

$ 15,897

Collaborative Arrangement with Ipsen

Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]

Remaining performance obligation

47,100

Net contract liability

$ 7,200

[1]	The Condensed Consolidated Balance Sheet as of December 31, 2018 has been derived from the audited financial statements as of that date.

Collaboration Agreements - Collaboration Revenues under the Collaboration Agreement with Takeda (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2019	Sep. 28, 2018	Sep. 27, 2019	Sep. 28, 2018
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Total revenues	$ 271,703	$ 225,397	$ 727,465	$ 625,224
Collaborative Arrangement with Takeda
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Total revenues	$ 1,187	$ 1,940	$ 14,245	$ 6,843

Collaboration Agreements - Takeda Collaboration (Details) - Collaborative Arrangement with Takeda - USD ($) $ in Millions	Apr. 29, 2019	Apr. 28, 2019	Sep. 27, 2019
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Limit on reimbursement per year	$ 1.0
Increase in maximum amount eligible for development and regulatory milestones	12.0
Maximum amount eligible for development and regulatory milestones	102.0
Milestone payments earned	16.0	$ 10.0
Increase in maximum amount eligible for commercial milestones under collaborations agreement	6.0
Maximum amount eligible for commercial milestones under collaborations agreement	$ 89.0
Remaining performance obligation			$ 18.7
Net contract liability			$ 8.2

Collaboration Agreements - Royalty Revenues under the Collaboration Agreement with Genentech (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2019	Sep. 28, 2018	Sep. 27, 2019	Sep. 28, 2018
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Royalty revenues on ex-U.S. sales	$ 271,703	$ 225,397	$ 727,465	$ 625,224
Collaborative Arrangement with Genentech
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Profits and losses on U.S. commercialization	1,102	1,935	3,507	6,004
Royalty revenues on ex-U.S. sales	$ 1,614	$ 1,390	$ 4,426	$ 4,285

Collaboration Agreements - Daiichi Sankyo (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Jun. 30, 2019	Sep. 27, 2019	Sep. 28, 2018	Sep. 27, 2019	Sep. 28, 2018
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Total revenues		$ 271,703	$ 225,397	$ 727,465	$ 625,224
Collaboration revenue
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Total revenues		79,935	62,451	162,441	182,170
Collaboration Agreement with Daiichi Sankyo
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Total revenues		$ 0	$ 0	$ 20,130	$ 20,000
Percent of royalty on net sale				0.50%
Collaboration Agreement with Daiichi Sankyo \| Collaboration revenue
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Total revenues	$ 20,000

Collaboration Agreements - Collaboration Revenues under the Collaboration Agreement with Daiichi Sankyo (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2019	Sep. 28, 2018	Sep. 27, 2019	Sep. 28, 2018
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Total revenues	$ 271,703	$ 225,397	$ 727,465	$ 625,224
Collaboration Agreement with Daiichi Sankyo
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Total revenues	$ 0	$ 0	$ 20,130	$ 20,000

Collaboration Agreements - Iconic Therapeutics, Inc. (Iconic) Collaboration (Details) - Collaboration Agreement with Iconic Therapeutics, Inc. - USD ($) $ in Millions	1 Months Ended
	May 31, 2019	Sep. 27, 2019
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Upfront payment	$ 7.5
Preclinical development funding commitment accrued		$ 6.6
Option exercise fee payment, if exercised		20.0
Maximum amount eligible for development, regulatory and first-sale milestones		190.6
Maximum amount eligible for commercial milestones under collaborations agreement		$ 262.5

Collaboration Agreements - Aurigene Discovery Technologies Limited (Aurigene) Collaboration (Details) $ in Millions	1 Months Ended
	Jul. 31, 2019 USD ($) program	Sep. 27, 2019 USD ($)
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Additional option payments	$ 7.5
Collaboration Agreement With Aurigene Discovery Technologies Limited Collaboration Agreement
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Collaboration agreement, number of programs \| program	6
Upfront payment	$ 10.0
Collaboration agreement, number of preexisting programs \| program	3
Collaboration agreement, number of drug discovery programs \| program	3
Research and development obligation	$ 32.6
Preclinical development funding commitment accrued		$ 1.3
Maximum amount eligible for development and regulatory milestones	148.8
Maximum amount eligible for commercial milestones under collaborations agreement	280.0
Collaboration Agreement With Aurigene Discovery Technologies Limited Collaboration Agreement \| Minimum
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Option exercise fee payment, if exercised	10.0
Collaboration Agreement With Aurigene Discovery Technologies Limited Collaboration Agreement \| Maximum
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Option exercise fee payment, if exercised	$ 12.0

Collaboration Agreements - Royalty Revenues under the Collaboration Agreement with GSK (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2019	Sep. 28, 2018	Sep. 27, 2019	Sep. 28, 2018
Collaboration Agreement with GlaxoSmithKline
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Royalties accruing to GSK	$ 7,964	$ 6,268	$ 23,079	$ 17,021
GSK \| Collaborative Arrangement with Ipsen
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Percent of royalty on net sale			3.00%

Cash and Investments - Reconciliation of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($)
$ in Thousands

Sep. 27, 2019

Dec. 28, 2018

Sep. 28, 2018

Dec. 29, 2017

Cash and Cash Equivalents [Abstract]

Cash and cash equivalents

$ 242,317

$ 314,775

^[1]

$ 353,623

$ 183,164

Restricted cash included in short-term restricted cash and investments

^[1]

504

Restricted cash included in long-term restricted cash and investments

1,000

1,100

^[1]

1,100

4,646

Cash, cash equivalents, and restricted cash as reported within the accompanying Condensed Consolidated Statements of Cash Flows

$ 243,317

$ 315,875

$ 355,227

$ 188,314

[1]	The Condensed Consolidated Balance Sheet as of December 31, 2018 has been derived from the audited financial statements as of that date.

Cash and Investments - Investments by Security Type (Details) - USD ($) $ in Thousands	Sep. 27, 2019	Dec. 28, 2018	Sep. 28, 2018	Dec. 29, 2017
Investment [Line Items]
Investments, available-for-sale, Amortized Cost	$ 1,214,736	$ 828,843
Investments available-for-sale, Gross Unrealized Gains	3,692	182
Investments available-for-sale, Gross Unrealized Losses	(91)	(883)
Investments available-for-sale, Fair Value	1,218,337	828,142
Cash, cash equivalents, and restricted cash as reported within the accompanying Condensed Consolidated Statements of Cash Flows	243,317	315,875	$ 355,227	$ 188,314
Total cash and investments, Amortized Cost	1,244,826	852,322
Total cash and investments, Gross Unrealized Gains	3,695	182
Total cash and investments, Gross Unrealized Losses	(91)	(883)
Total cash and investments, Fair Value	1,248,430	851,621
Money market funds
Investment [Line Items]
Investments, available-for-sale, Amortized Cost	26,641	47,744
Investments available-for-sale, Gross Unrealized Gains	0	0
Investments available-for-sale, Gross Unrealized Losses	0	0
Investments available-for-sale, Fair Value	26,641	47,744
Commercial paper
Investment [Line Items]
Investments, available-for-sale, Amortized Cost	332,239	381,134
Investments available-for-sale, Gross Unrealized Gains	0	0
Investments available-for-sale, Gross Unrealized Losses	0	(1)
Investments available-for-sale, Fair Value	332,239	381,133
Corporate bonds
Investment [Line Items]
Investments, available-for-sale, Amortized Cost	703,325	344,741
Investments available-for-sale, Gross Unrealized Gains	3,549	180
Investments available-for-sale, Gross Unrealized Losses	(67)	(857)
Investments available-for-sale, Fair Value	706,807	344,064
U.S. Treasury and government sponsored enterprises
Investment [Line Items]
Investments, available-for-sale, Amortized Cost	152,531	55,224
Investments available-for-sale, Gross Unrealized Gains	143	2
Investments available-for-sale, Gross Unrealized Losses	(24)	(25)
Investments available-for-sale, Fair Value	152,650	55,201
Cash and restricted cash
Investment [Line Items]
Investments available-for-sale, Gross Unrealized Gains		0
Investments available-for-sale, Gross Unrealized Losses		0
Cash, cash equivalents, and restricted cash as reported within the accompanying Condensed Consolidated Statements of Cash Flows	901	6,883
Cash, cash equivalents, and restricted cash, Gross Unrealized Gains	0
Cash, cash equivalents, and restricted cash, Gross Unrealized Losses	0
Cash, restricted cash and certificates of deposit, Fair Value	901	6,883
Certificates of deposit
Investment [Line Items]
Investments available-for-sale, Gross Unrealized Gains		0
Investments available-for-sale, Gross Unrealized Losses		0
Cash, cash equivalents, and restricted cash as reported within the accompanying Condensed Consolidated Statements of Cash Flows	29,189	16,596
Cash, cash equivalents, and restricted cash, Gross Unrealized Gains	3
Cash, cash equivalents, and restricted cash, Gross Unrealized Losses	0
Cash, restricted cash and certificates of deposit, Fair Value	$ 29,192	$ 16,596

Cash and Investments - Fair Value and Gross Unrealized Losses of Investments Available-for-Sale in an Unrealized Loss Position (Details) - USD ($) $ in Thousands	Sep. 27, 2019	Dec. 28, 2018
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract]
In an Unrealized Loss Position Less than 12 Months, Fair Value	$ 119,808	$ 271,358
In an Unrealized Loss Position Less than 12 Months, Gross Unrealized Losses	(90)	(623)
In an Unrealized Loss Position 12 Months or Greater, Fair Value	4,398	48,809
In an Unrealized Loss Position 12 Months or Greater, Gross Unrealized Losses	(1)	(260)
Total, Fair Value	124,206	320,167
Total, Gross Unrealized Losses	(91)	(883)
Corporate bonds
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract]
In an Unrealized Loss Position Less than 12 Months, Fair Value	73,064	236,162
In an Unrealized Loss Position Less than 12 Months, Gross Unrealized Losses	(66)	(606)
In an Unrealized Loss Position 12 Months or Greater, Fair Value	4,398	39,627
In an Unrealized Loss Position 12 Months or Greater, Gross Unrealized Losses	(1)	(251)
Total, Fair Value	77,462	275,789
Total, Gross Unrealized Losses	(67)	(857)
U.S. Treasury and government sponsored enterprises
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract]
In an Unrealized Loss Position Less than 12 Months, Fair Value	46,744	28,105
In an Unrealized Loss Position Less than 12 Months, Gross Unrealized Losses	(24)	(16)
In an Unrealized Loss Position 12 Months or Greater, Fair Value	0	9,182
In an Unrealized Loss Position 12 Months or Greater, Gross Unrealized Losses	0	(9)
Total, Fair Value	46,744	37,287
Total, Gross Unrealized Losses	$ (24)	(25)
Commercial paper
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss [Abstract]
In an Unrealized Loss Position Less than 12 Months, Fair Value		7,091
In an Unrealized Loss Position Less than 12 Months, Gross Unrealized Losses		(1)
In an Unrealized Loss Position 12 Months or Greater, Fair Value		0
In an Unrealized Loss Position 12 Months or Greater, Gross Unrealized Losses		0
Total, Fair Value		7,091
Total, Gross Unrealized Losses		$ (1)

Cash and Investments - Narrative (Details)	3 Months Ended		9 Months Ended
Cash and Investments - Narrative (Details)	Sep. 27, 2019 USD ($) investment	Sep. 28, 2018 USD ($)	Sep. 27, 2019 USD ($) investment	Sep. 28, 2018 USD ($)	Dec. 28, 2018 USD ($) investment
Investments, Debt and Equity Securities [Abstract]
Gain (loss) on sales of investments available-for-sale	$ 0	$ 0	$ 0	$ 0
Number of investments in an unrealized loss position \| investment	43		43		199
Other-than-temporary impairment charges on available-for-sale securities	$ 0	$ 0	$ 0
Beneficial ownership interest by BlackRock (more than)					10.00%
Fair value of cash and investments managed by BlackRock	470,800,000		470,800,000		$ 298,500,000
Fair value of cash and investments managed by BlackRock in the BlackRock Liquidity Money Market Fund	1,900,000		1,900,000		$ 3,000,000.0
Payable to BlackRock	$ 9,000,000.0		9,000,000.0
Fees for advisory services paid to BlackRock			$ 200,000

Cash and Investments - Fair Value of Cash Equivalents and Investments by Contractual Maturity (Details) - USD ($) $ in Thousands	Sep. 27, 2019	Dec. 28, 2018
Investments, Debt and Equity Securities [Abstract]
Maturing in one year or less	$ 743,768	$ 674,455
Maturing after one year through five years	474,569	153,687
Total investments available-for-sale	$ 1,218,337	$ 828,142

Inventory (Details) - USD ($) $ in Thousands	9 Months Ended
Inventory (Details) - USD ($) $ in Thousands	Sep. 27, 2019	Sep. 28, 2018	Dec. 28, 2018
Inventory [Line Items]
Raw materials	$ 1,906		$ 1,922
Work in process	11,035		6,170
Finished goods	7,311		3,836
Total	20,252		11,928
Write-downs on inventory	400	$ 800
Current portion included in Inventory
Inventory [Line Items]
Total	13,366		9,838
Long-term portion included in Other long-term assets
Inventory [Line Items]
Total	$ 6,886		$ 2,090

Property and Equipment (Details) - USD ($)
$ in Thousands

Sep. 27, 2019

Dec. 28, 2018

Less: accumulated depreciation and amortization

$ 72,864

$ 68,206

(23,397)

(17,309)

Property and equipment, net

49,467

50,897

^[1]

Leasehold improvements

Computer equipment and software

33,769

33,941

17,017

15,022

Furniture and fixtures

13,053

12,709

Laboratory equipment

8,408

5,668

Construction in progress

$ 617

$ 866

[1]	The Condensed Consolidated Balance Sheet as of December 31, 2018 has been derived from the audited financial statements as of that date.

Property and Equipment - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 27, 2019	Sep. 28, 2018	Sep. 27, 2019	Sep. 28, 2018
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 2.1	$ 1.7	$ 6.1	$ 2.9

Stock-Based Compensation - Allocated Employee Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2019	Sep. 28, 2018	Sep. 27, 2019	Sep. 28, 2018
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	$ 13,139	$ 9,742	$ 40,747	$ 28,330
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	4,301	3,169	13,745	9,102
Selling, general and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	$ 8,838	$ 6,573	$ 27,002	$ 19,228

Stock-Based Compensation - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 27, 2019	Sep. 28, 2018	Sep. 27, 2019	Sep. 28, 2018	Dec. 28, 2018	Jun. 28, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant (in shares)	6,024,995		6,024,995
Compensation expense	$ 13,139	$ 9,742	$ 40,747	$ 28,330
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense	38,000		$ 38,000
Weighted-average cost recognition period			2 years 3 months 18 days
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense	$ 166,000		$ 166,000
Weighted-average cost recognition period			2 years 9 months 18 days
RSUs awarded (in shares)			5,635,362
Product revenue related performance targets, shares vested and released (in shares)	9,749,823		9,749,823		4,857,334
PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSUs awarded (in shares)			1,926,605		693,131
Compensation expense	$ 900		$ 3,500
PSUs \| Achieved
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Product revenue related performance targets, shares vested and released (in shares)						114,843
PSUs \| Probable
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense	1,700		1,700
Product revenue related performance targets, shares vested and released (in shares)						172,272
PSUs \| Not Probable
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense	$ 82,400		$ 82,400
PSUs, achieved before December 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum potential to vest, percentage			150.00%
Maximum potential to vest (in shares)			963,136
PSUs, second product approval
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum potential to vest, percentage			200.00%
Maximum potential to vest (in shares)			1,926,605

Stock-Based Compensation - Weighted Average Grant-Date Fair Value of Stock Options and ESPP Purchases (Details) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 27, 2019	Sep. 28, 2018	Sep. 27, 2019	Sep. 28, 2018
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant-date fair value (in dollars per share)	$ 7.71	$ 8.67	$ 8.57	$ 9.13
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant-date fair value (in dollars per share)	$ 5.39	$ 6.19	$ 4.93	$ 6.96

Stock-Based Compensation - Valuation Assumptions Used to Estimate Grant-Date Fair Value (Details)	3 Months Ended		9 Months Ended
	Sep. 27, 2019	Sep. 28, 2018	Sep. 27, 2019	Sep. 28, 2018
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate	1.57%	2.91%	1.82%	2.83%
Dividend yield	0.00%	0.00%	0.00%	0.00%
Expected volatility	48.00%	55.00%	48.00%	55.00%
Expected life	4 years	4 years 4 months 24 days	4 years 4 months 24 days	4 years 4 months 24 days
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate	2.09%	2.11%	2.34%	1.74%
Dividend yield	0.00%	0.00%	0.00%	0.00%
Expected volatility	43.00%	51.00%	52.00%	52.00%
Expected life	6 months	6 months	6 months	6 months

Stock-Based Compensation - Stock Option Activity (Details) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 27, 2019 USD ($) $ / shares shares
Shares
Options outstanding at beginning of period (in shares) \| shares	22,674,062
Granted (in shares) \| shares	1,042,286
Exercised (in shares) \| shares	(3,042,201)
Forfeited (in shares) \| shares	(160,241)
Expired (in shares) \| shares	(35,045)
Options outstanding at end of period (in shares) \| shares	20,478,861
Exercisable at end of period (in shares) \| shares	15,860,131
Weighted Average Exercise Price Per Share
Options outstanding at beginning of period (in dollars per share) \| $ / shares	$ 8.71
Granted (in dollars per share) \| $ / shares	20.81
Exercised (in dollars per share) \| $ / shares	4.94
Forfeited (in dollars per share) \| $ / shares	16.76
Expired (in dollars per share) \| $ / shares	23.41
Options outstanding at end of period (in dollars per share) \| $ / shares	9.80
Exercisable at end of period (in dollars per share) \| $ / shares	$ 7.02
Weighted Average Remaining Contractual Term
Options outstanding at end of period	3 years 4 months 24 days
Exercisable at end of period	2 years 9 months 18 days
Aggregate Intrinsic Value
Options outstanding at end of period \| $	$ 186,407
Exercisable at end of period \| $	$ 181,542

Stock-Based Compensation - RSU Activity (Details) - RSUs $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 27, 2019 USD ($) $ / shares shares
Shares
RSUs outstanding at beginning of period (in shares) \| shares	4,857,334
Awarded (in shares) \| shares	5,635,362
Vested and released (in shares) \| shares	(484,731)
Forfeited (in shares) \| shares	(258,142)
RSUs outstanding at end of period (in shares) \| shares	9,749,823
Weighted Average Grant Date Fair Value Per Share
RSUs outstanding at beginning of period (in dollars per share) \| $ / shares	$ 18.42
Awarded (in dollars per share) \| $ / shares	19.54
Vested and released (in dollars per share) \| $ / shares	12.33
Forfeited (in dollars per share) \| $ / shares	18.47
RSUs outstanding at end of period (in dollars per share) \| $ / shares	$ 19.37
Weighted Average Remaining Contractual Term
RSUs outstanding at end of period	2 years 2 months 12 days
Aggregate Intrinsic Value
RSUs outstanding at end of period \| $	$ 175,448

Income Taxes (Details)	3 Months Ended			9 Months Ended
Income Taxes (Details)	Sep. 27, 2019	Sep. 29, 2018	Sep. 28, 2018	Sep. 27, 2019	Sep. 29, 2018	Sep. 28, 2018
Income Tax Disclosure [Abstract]
Effective income tax rate	20.50%		1.80%	19.40%		1.70%
U.S. federal statutory rate	21.00%	21.00%		21.00%	21.00%

Net Income Per Share - Computation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2019	Sep. 28, 2018	Sep. 27, 2019	Sep. 28, 2018
Numerator:
Net income	$ 97,452	$ 126,630	$ 252,269	$ 329,981
Denominator:
Weighted-average shares of common stock outstanding used in computing basic net income per share (in shares)	303,268	298,416	301,999	297,700
Dilutive securities (in shares)	12,185	13,930	13,047	15,500
Weighted-average shares of common stock outstanding and dilutive securities used in computing diluted net income per share (in shares)	315,453	312,346	315,046	313,200
Net income per share, basic (in dollars per share)	$ 0.32	$ 0.42	$ 0.84	$ 1.11
Net income per share, diluted (in dollars per share)	$ 0.31	$ 0.41	$ 0.80	$ 1.05

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=116637232&loc=SL114874131-224263

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=117326831&loc=d3e1337-109256

Reference 3: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=117327953&loc=d3e4984-109258

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(21))
-URI http://asc.fasb.org/extlink&oid=116634182&loc=SL114868664-224227

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=117326831&loc=d3e1252-109256

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(23))
-URI http://asc.fasb.org/extlink&oid=116637391&loc=SL114874048-224260

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=117326831&loc=SL5780133-109256

+ Details

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=117327953&loc=d3e4984-109258

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=117326831&loc=d3e1252-109256

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(23))
-URI http://asc.fasb.org/extlink&oid=116637391&loc=SL114874048-224260

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=117326831&loc=d3e1337-109256

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(21))
-URI http://asc.fasb.org/extlink&oid=116634182&loc=SL114868664-224227

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=117326831&loc=SL5780133-109256

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=116637232&loc=SL114874131-224263

+ Details

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.