AtriCure (ATRC) DEF 14A10 Apr 23Definitive proxyFinancial data

Company Profile

Cover

Cover	12 Months Ended
Cover	Dec. 31, 2022
Document Information [Line Items]
Document Type	DEF 14A
Amendment Flag	false
Entity Information [Line Items]
Entity Registrant Name	AtriCure, Inc.
Entity Central Index Key	0001323885

Pay vs Performance Disclosure

Pay vs Performance Disclosure	12 Months Ended
Pay vs Performance Disclosure	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Pay vs Performance Disclosure [Table]
Pay vs Performance [Table Text Block]	Pay versus Performance CAP Table Value of Initial Fixed $100 Investment Based on: Year (1) SCT Total for PEO CAP to PEO (2)(3) Average SCT Total for non-PEO NEOs Average CAP to non-PEO NEOs (2)(3) Total Shareholder Return (4) Peer Group Total Shareholder Return (4) Net (Loss) Income Worldwide Revenue Growth (5) ($) ($) ($) ($) ($) ($) ($ in 000's) (%) 2022 8,346,968 248,184 2,256,022 798,083 136.51 86.04 (46,427) 20.4 % 2021 7,535,074 13,119,796 2,142,873 3,433,743 213.87 114.41 50,199 32.8 % 2020 5,569,045 13,745,774 1,437,778 2,820,165 171.24 127.18 (48,155) (10.5) %
Named Executive Officers, Footnote [Text Block]	Non-PEO Named Executive Officers include average of the following participants: 2022: Angela L. Wirick, Douglas J. Seith, Justin J. Noznesky, and Deborah Yount 2021: Angela L. Wirick, Douglas J. Seith, Justin J. Noznesky, and Vinayak Doraiswamy 2020: M. Andrew Wade, Angela L. Wirick, Douglas J. Seith, Justin J. Noznesky, and Salvatore Privitera
Peer Group Issuers, Footnote [Text Block]	Reflects the total shareholder return indexed to $100 per share for ATRC and the NASDAQ Health Care Index which is the industry peer group reported in our 2022 Form 10-K.
PEO Total Compensation Amount	$ 8,346,968	$ 7,535,074	$ 5,569,045
PEO Actually Paid Compensation Amount	$ 248,184	13,119,796	13,745,774
Adjustment To PEO Compensation, Footnote [Text Block]	The following amounts were deducted from and added to the SCT to arrive at the CAP for each applicable year: PEO Non-PEO NEOs Year Equity-Incentive Awards Deducted from SCT Equity-Incentive Awards Added to CAP Equity-Incentive Awards Deducted from SCT Equity-Incentive Awards Added to CAP 2022 6,722,916 (1,375,868) 1,555,800 97,861 2021 5,594,896 11,179,618 1,327,506 2,618,376 2020 4,469,079 12,645,808 962,837 2,345,224 (3) For purposes of determining the point-in-time CAP value, our equity-incentive awards are calculated as follows: (1) Unvested awards granted in the current year are valued at year-end fair value; (2) awards granted in prior years that are outstanding and unvested at the end of the year are valued at the difference between the year-end fair value and the immediately prior year-end fair value; (3) awards granted in prior years that vested during the year are valued at the difference between the fair value as of the vesting date and the immediately prior year-end fair value; (4) awards forfeited are calculated as the fair value on the forfeiture date (zero) less the fair value on the last day of the prior reporting year; and (5) modified awards are valued as the incremental fair value before and after modification date.
Non-PEO NEO Average Total Compensation Amount	$ 2,256,022	2,142,873	1,437,778
Non-PEO NEO Average Compensation Actually Paid Amount	$ 798,083	3,433,743	2,820,165
Adjustment to Non-PEO NEO Compensation Footnote [Text Block]	The following amounts were deducted from and added to the SCT to arrive at the CAP for each applicable year: PEO Non-PEO NEOs Year Equity-Incentive Awards Deducted from SCT Equity-Incentive Awards Added to CAP Equity-Incentive Awards Deducted from SCT Equity-Incentive Awards Added to CAP 2022 6,722,916 (1,375,868) 1,555,800 97,861 2021 5,594,896 11,179,618 1,327,506 2,618,376 2020 4,469,079 12,645,808 962,837 2,345,224 (3) For purposes of determining the point-in-time CAP value, our equity-incentive awards are calculated as follows: (1) Unvested awards granted in the current year are valued at year-end fair value; (2) awards granted in prior years that are outstanding and unvested at the end of the year are valued at the difference between the year-end fair value and the immediately prior year-end fair value; (3) awards granted in prior years that vested during the year are valued at the difference between the fair value as of the vesting date and the immediately prior year-end fair value; (4) awards forfeited are calculated as the fair value on the forfeiture date (zero) less the fair value on the last day of the prior reporting year; and (5) modified awards are valued as the incremental fair value before and after modification date.
Compensation Actually Paid vs. Total Shareholder Return [Text Block]	Cumulative TSR The chart below reflects the relationship between the compensation actually paid to the PEO and average compensation actually paid to the Non-PEO NEOs to AtriCure's TSR and the peer group TSR.
Compensation Actually Paid vs. Net Income [Text Block]	Net Income (Loss) Year CAP to PEO ∆ CAP to PEO Average CAP to non-PEO NEOs ∆ CAP to Non-PEO NEO Net (Loss) Income ∆ Net (Loss) Income 2022 248,184 (98.1) % 798,083 (76.8) % (46,427) (192.5) % 2021 13,119,796 (4.6) % 3,433,743 21.8 % 50,199 (204.2) % 2020 13,745,774 — 2,820,165 — (48,155) —
Compensation Actually Paid vs. Company Selected Measure [Text Block]	Worldwide Revenue Growth Year CAP to PEO ∆ CAP to PEO Average CAP to non-PEO NEOs ∆ CAP to Non-PEO NEO Worldwide Revenue Worldwide Revenue Growth ∆ Worldwide Revenue Growth 2022 248,184 (98.1) % 798,083 (76.8) % 330,379 20.4 % (12.4) % 2021 13,119,796 (4.6) % 3,433,743 21.8 % 274,329 32.8 % 43.3 % 2020 13,745,774 — 2,820,165 — 206,531 (10.5) % — Worldwide revenue growth is the most important company-selected measure. The Compensation Committee believes that at this time it is appropriate for the Company to utilize worldwide revenue growth as a performance metric for both the annual incentive plan and the long-term performance share awards because of the importance of this metric to the Company’s investors. The Company believes that many of its current and prospective investors view worldwide revenue growth as the single most important performance metric of the Company. Annual revenue growth is used as a metric for performance attainment of the annual incentive plan, while revenue CAGR over a three-year performance period is used for the performance share awards included in the long-term equity incentive plans. Due to the difference in performance period duration, as well as the significant impact of the Company's stock price on the valuation of the equity incentive awards included in the calculation of CAP, the CAP for the PEO and non-PEO NEO is not correlated in the periods presented. Non-PEO NEO CAP was also impacted by the shifting of non-PEO membership between the periods presented.
Total Shareholder Return Vs Peer Group [Text Block]	The Company's chosen peer group is the Nasdaq Heath Care Index constituents. This is the same peer group disclosed in the Form 10-K performance graph, as well as the same index used to measure the relative total shareholder return performance target for the performance share awards granted to our executive officers in 2021 and 2022. Over the three-year period shown in the table above, the Company's total shareholder return (TSR) exceeded the peer group's TSR. The Company's stock performance significantly impacts executive compensation as approximately 70% or greater of the PEO total compensation and over 50% of the non-PEO total compensation is comprised of equity incentive plan awards since 2020. Therefore, CAP for the PEO and non-PEO NEOs is positively correlated to fluctuations in the Company's stock performance as it has a significant impact on the valuation of the underlying equity incentive awards included in the calculation of CAP.
Tabular List [Table Text Block]	Most Important Performance Measures Worldwide Revenue Growth Gross Margin Shareholder Return
Total Shareholder Return Amount	$ 136.51	213.87	171.24
Peer Group Total Shareholder Return Amount	86.04	114.41	127.18
Net Income (Loss)	$ (46,427,000)	$ 50,199,000	$ (48,155,000)
Company Selected Measure Amount	0.204	0.328	(0.105)
Additional 402(v) Disclosure [Text Block]	As required by Section 953(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 402(v) of Regulation S-K, we are providing disclosures of the relationship between executive compensation paid and the Company's financial performance. Under the SEC's pay versus performance rules, the SEC has developed a new definition of pay, referred to as Compensation Actually Paid (“CAP”), which is compared to certain performance measures defined by the SEC. In the table below, totals for the Summary Compensation Table (“SCT”) and CAP values represent a mix of both compensation earned during the year (base salary and annual incentives) and estimated future pay opportunities (equity incentive awards). The difference between the SCT presentation and calculation of CAP is the value attributable to equity incentive awards. Within SCT values, equity incentive awards include the grant date fair value of equity incentive awards awarded during the year, reflecting the evaluation of the prior year's performance. Within CAP values, equity incentive awards represents the year-over-year change in the values of unvested equity incentive awards, awards that vested or forfeited during the year, as well as the year-end valuation of equity incentive awards granted during the year. The measures most important in determining pay during 2022 were those that impact achievement of our equity incentive awards and annual incentive plans.Worldwide revenue growth is calculated as the percentage change in worldwide revenue over the prior year. Worldwide revenue growth impacts both the achievement of our annual incentive plan objectives and performance targets of equity incentive awards. • Gross margin is calculated as the ratio of gross profit to worldwide revenue. Gross Margin impacts the achievement of our annual incentive plan objectives. • Shareholder return is calculated as the percentage change in stock price as of December 31 year over year. Shareholder return impacts the achievement of performance targets of equity incentive awards, as well as the value of stock awards realized by our named executive officers. Analysis of Information Presented in the Pay versus Performance Table Our compensation philosophy is to strongly link executive officer compensation to our performance and is intended to create long-term value for our stockholders. In accordance with Item 401(v) of Regulation S-K, we are providing the following description of relationships between information presented in the Pay versus Performance Table.
Change In PEO Actually Paid Compensation Amount	(0.981)	(0.046)	0
Change In Non-PEO NEO Average Compensation Actually Paid Amount	(0.768)	0.218	0
Change In Net Income (Loss)	(1.925)	(2.042)	0
Company Selected Measure Amount, Growth Rate	20.40%	32.80%	(10.50%)
Change In Company Selected Measure Amount	(0.124)	0.433	0
Measure [Axis]: 1
Pay vs Performance Disclosure [Table]
Measure Name	Worldwide Revenue Growth
Non-GAAP Measure Description [Text Block]	Company selected measure is annual worldwide revenue growth rate. Amount is calculated as a percentage change in worldwide revenue over the prior year.
Measure [Axis]: 2
Pay vs Performance Disclosure [Table]
Measure Name	Gross Margin
Measure [Axis]: 3
Pay vs Performance Disclosure [Table]
Measure Name	Shareholder Return
PEO [Member] \| Equity Incentive Award Deductions [Member]
Pay vs Performance Disclosure [Table]
Adjustment to Compensation Amount	$ 6,722,916	$ 5,594,896	$ 4,469,079
PEO [Member] \| Equity Incentive Award Additions [Member]
Pay vs Performance Disclosure [Table]
Adjustment to Compensation Amount	(1,375,868)	11,179,618	12,645,808
Non-PEO NEO [Member] \| Equity Incentive Award Deductions [Member]
Pay vs Performance Disclosure [Table]
Adjustment to Compensation Amount	1,555,800	1,327,506	962,837
Non-PEO NEO [Member] \| Equity Incentive Award Additions [Member]
Pay vs Performance Disclosure [Table]
Adjustment to Compensation Amount	$ 97,861	$ 2,618,376	$ 2,345,224