Stockholders' Equity

3 Months Ended

Mar. 31, 2020

STOCKHOLDERS’ EQUITY

Convertible Notes Settlement Stock Issuance

In March 2019, the Company used cash of $494.1 million and an aggregate of 2.2 million shares of the Company’s common stock valued at $182.4 million for total consideration of $676.5 million to settle $493.4 million of the 2025 convertible notes. Refer to Note 15 for further discussion of this settlement transaction.

Genomic Health Combination Stock Issuance

In November 2019, the Company completed the combination with Genomic Health in a cash and stock transaction valued at $2.5 billion. Of the $2.5 billion purchase price, $1.4 billion was settled through the issuance of 17.0 million shares of common stock. The Company incurred $0.4 million in stock issuance costs as part of the transaction. Refer to Note 16 for further discussion of the consideration transferred as part of the combination with Genomic Health.

Paradigm and Viomics Acquisition Stock Issuance

In March 2020, the Company completed the acquisitions of Paradigm and Viomics. The purchase price for these acquisitions consisted of cash and stock valued at $40.5 million. Of the $40.5 million purchase price, $32.2 million is expected to be settled through the issuance of 0.4 million shares of common stock. Of the $32.2 million that will be settled through the issuance of common stock, $28.6 million was issued during the three months ended March 31, 2020 and the remainder was withheld and may become issuable as additional merger consideration on June 3, 2021 subject to the terms and conditions of the acquisition agreements.

Changes in Accumulated Other Comprehensive Income (Loss)

The amount recognized in accumulated other comprehensive income (loss) (“AOCI”) for the three months ended March 31, 2020 were as follows:


(In thousands)	Foreign Currency Translation Adjustments		Unrealized Gain (Loss) on Marketable Securities		Accumulated Other Comprehensive Income (Loss)
Balance at December 31, 2019	$	(25)	$	(75)	$	(100)
Other comprehensive income (loss) before reclassifications	—		(1,642)		(1,642)
Amounts reclassified from accumulated other comprehensive loss	25		—		25
Net current period change in accumulated other comprehensive loss	25		(1,642)		(1,617)
Balance at March 31, 2020	$	—	$	(1,717)	$	(1,717)

The amounts recognized in AOCI for the three months ended March 31, 2019 were as follows:


(In thousands)	Foreign Currency Translation Adjustments		Unrealized Gain (Loss) on Marketable Securities		Accumulated Other Comprehensive Income (Loss)
Balance at December 31, 2018	$	(25)	$	(1,397)	$	(1,422)
Other comprehensive loss before reclassifications	—		2,051		2,051
Amounts reclassified from accumulated other comprehensive loss	—		125		125
Net current period change in accumulated other comprehensive loss, before tax	—		2,176		2,176
Income tax expense related to items of other comprehensive income	—		(520)		(520)
Balance at March 31, 2019	$	(25)	$	259	$	234

Amounts reclassified from AOCI for the three months ended March 31, 2020 and 2019 were as follows:


	Affected Line Item in the Statements of Operations	Three Months Ended March 31,
Details about AOCI Components (In thousands)				2020			2019
Change in value of available-for-sale investments
Sales and maturities of available-for-sale investments	Investment income, net	$	—		$	125
Foreign currency adjustment	General and administrative	25			—
Total reclassifications		$	25		$	125