Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 04, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | INTEGER HOLDINGS CORPORATION | |
Entity Central Index Key | 1,114,483 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-29 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 31,298,606 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - Unaudited - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 30, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 54,881 | $ 52,116 |
Accounts receivable, net of allowance for doubtful accounts of $1.0 million and $0.7 million, respectively | 213,610 | 204,626 |
Inventories | 231,292 | 225,151 |
Refundable income taxes | 7,679 | 13,388 |
Prepaid expenses and other current assets | 20,664 | 22,026 |
Total current assets | 528,126 | 517,307 |
Property, plant and equipment, net | 371,933 | 372,042 |
Goodwill | 969,413 | 967,326 |
Other intangible assets, net | 931,595 | 940,060 |
Deferred income taxes | 3,978 | 3,970 |
Other assets | 31,840 | 31,838 |
Total assets | 2,836,885 | 2,832,543 |
Current liabilities: | ||
Current portion of long-term debt | 34,173 | 31,344 |
Accounts payable | 90,713 | 77,896 |
Income taxes payable | 3,873 | 3,699 |
Accrued expenses | 75,362 | 72,281 |
Total current liabilities | 204,121 | 185,220 |
Long-term debt | 1,668,239 | 1,698,819 |
Deferred income taxes | 208,542 | 208,579 |
Other long-term liabilities | 15,325 | 14,686 |
Total liabilities | 2,096,227 | 2,107,304 |
Stockholders’ equity: | ||
Common stock, $0.001 par value; 100,000,000 shares authorized; 31,401,759 and 31,059,038 shares issued, respectively; 31,298,606 and 30,925,496 shares outstanding, respectively | 31 | 31 |
Additional paid-in capital | 647,797 | 637,955 |
Treasury stock, at cost, 103,153 and 133,542 shares, respectively | (4,506) | (5,834) |
Retained earnings | 105,050 | 109,087 |
Accumulated other comprehensive loss | (7,714) | (16,000) |
Total stockholders’ equity | 740,658 | 725,239 |
Total liabilities and stockholders’ equity | $ 2,836,885 | $ 2,832,543 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets - Unaudited (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 30, 2016 |
Current assets: | ||
Allowance for doubtful accounts | $ 1 | $ 0.7 |
Stockholders’ equity: | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 31,401,759 | 31,059,038 |
Common stock, shares outstanding | 31,298,606 | 30,925,496 |
Treasury stock, shares | 103,153 | 133,542 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income - Unaudited - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Apr. 01, 2016 | |
Income Statement [Abstract] | ||
Sales | $ 345,413 | $ 332,238 |
Cost of sales | 254,187 | 240,770 |
Gross profit | 91,226 | 91,468 |
Operating expenses: | ||
Selling, general and administrative expenses | 39,499 | 41,888 |
Research, development and engineering costs, net | 13,411 | 17,306 |
Other operating expenses, net | 11,771 | 21,140 |
Total operating expenses | 64,681 | 80,334 |
Operating income | 26,545 | 11,134 |
Interest expense, net | 28,893 | 27,617 |
Other expense (income), net | 1,847 | (3,721) |
Loss before provision (benefit) for income taxes | (4,195) | (12,762) |
Provision (benefit) for income taxes | 144 | (102) |
Net loss | $ (4,339) | $ (12,660) |
Loss per share: | ||
Basic | $ (0.14) | $ (0.41) |
Diluted | $ (0.14) | $ (0.41) |
Weighted average shares outstanding: | ||
Basic | 31,016 | 30,718 |
Diluted | 31,016 | 30,718 |
Comprehensive Income | ||
Net loss | $ (4,339) | $ (12,660) |
Foreign currency translation gain | 6,536 | 18,760 |
Net change in cash flow hedges, net of tax | 1,750 | 367 |
Other comprehensive income | 8,286 | 19,127 |
Comprehensive income | $ 3,947 | $ 6,467 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - Unaudited - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Apr. 01, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (4,339) | $ (12,660) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 24,606 | 22,413 |
Debt related amortization included in interest expense | 3,437 | 1,773 |
Stock-based compensation | 4,669 | 2,835 |
Other non-cash (gains) losses | 1,499 | (3,522) |
Deferred income taxes | (1,753) | (2,445) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (8,700) | 23,856 |
Inventories | (5,956) | (14,444) |
Prepaid expenses and other current assets | 1,853 | 1,410 |
Accounts payable | 13,146 | 1,913 |
Accrued expenses | 4,401 | 7,844 |
Income taxes | 5,762 | 885 |
Net cash provided by operating activities | 38,625 | 29,858 |
Cash flows from investing activities: | ||
Acquisition of property, plant and equipment | (12,328) | (18,768) |
Purchase of cost and equity method investments | (260) | (648) |
Other investing activities | 0 | 285 |
Net cash used in investing activities | (12,588) | (19,131) |
Cash flows from financing activities: | ||
Principal payments of long-term debt | (79,151) | (7,250) |
Proceeds from issuance of long-term debt | 50,000 | 55,000 |
Proceeds from the exercise of stock options | 7,449 | 0 |
Payment of debt issuance costs | (1,789) | (781) |
Distribution of cash and cash equivalents to Nuvectra Corporation | 0 | (76,256) |
Purchase of non-controlling interests | 0 | (6,818) |
Other financing activities | 0 | (3,983) |
Net cash used in financing activities | (23,491) | (40,088) |
Effect of foreign currency exchange rates on cash and cash equivalents | 219 | 1,006 |
Net increase (decrease) in cash and cash equivalents | 2,765 | (28,355) |
Cash and cash equivalents, beginning of period | 52,116 | 82,478 |
Cash and cash equivalents, end of period | $ 54,881 | $ 54,123 |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Stockholders' Equity - Unaudited - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect adjustment of the adoption of ASU 2016-09 | $ (510) | $ (812) | $ 302 | |||
Balance, adjusted | 724,729 | $ 31 | 637,143 | $ (5,834) | 109,389 | $ (16,000) |
Balance, shares at Dec. 30, 2016 | 31,059 | (134) | ||||
Balance at Dec. 30, 2016 | 725,239 | $ 31 | 637,955 | $ (5,834) | 109,087 | (16,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (4,339) | (4,339) | ||||
Other comprehensive income, net | 8,286 | 8,286 | ||||
Stock-based compensation | 4,669 | 4,669 | ||||
Net shares issued, shares | 343 | 31 | ||||
Net shares issued | 7,313 | $ 0 | 5,985 | $ 1,328 | ||
Balance, shares at Mar. 31, 2017 | 31,402 | (103) | ||||
Balance at Mar. 31, 2017 | $ 740,658 | $ 31 | $ 647,797 | $ (4,506) | $ 105,050 | $ (7,714) |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION Integer Holdings Corporation (together with its consolidated subsidiaries, “Integer” or the “Company”) is a publicly traded corporation listed on the New York Stock Exchange under the symbol “ITGR.” Integer is one of the largest medical device outsource manufacturers in the world serving the cardiac, neuromodulation, orthopedics, vascular, advanced surgical and portable medical markets. The Company provides innovative, high-quality medical technologies that enhance the lives of patients worldwide. In addition, it develops batteries for high-end niche applications in the energy, military, and environmental markets. The Company’s reportable segments are: (1) Medical and (2) Non-Medical. The Company’s customers include large multi-national original equipment manufacturers (“OEMs”) and their affiliated subsidiaries. On March 14, 2016, Integer completed the spin-off of a portion of its former QiG segment through a tax-free distribution of all of the shares of its QiG Group, LLC (“QiG”) subsidiary to the stockholders of Integer on a pro rata basis (the “Spin-off”). See Note 2 “Divestiture” for further description of this transaction. The Company’s results include the financial and operating results of QiG until the Spin-off on March 14, 2016. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information (Accounting Standards Codification (“ASC”) 270, Interim Reporting) and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these financial statements do not include all of the information necessary for a full presentation of financial position, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America (“GAAP”). In the opinion of management, the condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the results of the Company for the periods presented. Intercompany transactions and balances have been fully eliminated in consolidation. Certain reclassifications have been made to prior year financial statements to conform to classifications used in the current year. Refer to Note 15 “Segment Information,” for a description of the changes made to reflect the current year product line sales reporting and changes made to our reportable segment structure during the fourth quarter of 2016. Operating results for interim periods are not necessarily indicative of results that may be expected for the fiscal year as a whole. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, certain components of equity, sales, expenses, and related disclosures at the date of the financial statements and during the reporting period. Actual results could differ materially from these estimates. For further information, refer to the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 30, 2016 . The Company utilizes a fifty-two, fifty-three week fiscal year ending on the Friday nearest December 31. The first quarter of 2017 and 2016 each contained 13 weeks, respectively, and ended on March 31, and April 1, respectively. The Company’s 2017 and 2016 fiscal years will end or ended on December 29, 2017 and December 30, 2016, respectively. |
Divestiture
Divestiture | 3 Months Ended |
Mar. 31, 2017 | |
Divestiture and Acquisition [Abstract] | |
DIVESTITURE | DIVESTITURE Spin-off of Nuvectra Corporation On March 14, 2016, Integer completed the spin-off of a portion of its former QiG segment through a tax-free distribution of all of the shares of its QiG Group, LLC subsidiary to the stockholders of Integer on a pro rata basis. Immediately prior to completion of the Spin-off, QiG Group, LLC was converted into a corporation organized under the laws of Delaware and changed its name to Nuvectra Corporation (“Nuvectra”). On March 14, 2016, each of the Company’s stockholders of record as of the close of business on March 7, 2016 received one share of Nuvectra common stock for every three shares of Integer common stock held as of that date. Upon completion of the Spin-off, Nuvectra became an independent publicly traded company whose common stock is listed on the NASDAQ stock exchange under the symbol “NVTR.” The portion of the QiG segment spun-off consisted of QiG Group, LLC and its subsidiaries: (i) Algostim, LLC (“Algostim”), (ii) PelviStim LLC (“PelviStim”), and (iii) the Company’s NeuroNexus Technologies (“NeuroNexus”) subsidiary. The operations of Centro de Construcción de Cardioestimuladores del Uruguay (“CCC”) and certain other existing QiG research and development capabilities were retained by the Company and not included as part of the Spin-off. As the Company continues to focus on the design and development of complete medical device systems and components, and more specifically on medical device systems and components in the neuromodulation market, the Spin-off was not considered a strategic shift that had a major effect on the Company’s operations and financial results. Accordingly, the Spin-off is not presented as a discontinued operation in the Company’s Condensed Consolidated Financial Statements. The results of Nuvectra are included in the Condensed Consolidated Statements of Operations and Comprehensive Income through the date of the Spin-off. In connection with the Spin-off, during the first quarter of 2016, the Company made a cash capital contribution of $75 million to Nuvectra and divested the following assets and liabilities (in thousands): Assets divested Cash and cash equivalents $ 76,256 Other current assets 977 Property, plant and equipment, net 4,407 Amortizing intangible assets, net 1,931 Goodwill 40,830 Deferred income taxes 6,446 Total assets divested 130,847 Liabilities transferred Current liabilities 2,119 Net assets divested $ 128,728 For the first quarter of 2016, Nuvectra contributed a pre-tax loss of $5.2 million to the Company’s results of operations. In connection with the Spin-off, on March 14, 2016, Integer entered into several agreements with Nuvectra that govern its post Spin-off relationship with Nuvectra, including a Separation and Distribution Agreement, Tax Matters Agreement, Employee Matters Agreement and Transition Services Agreement. The Transition Services Agreement contains customary mutual indemnification provisions. Amounts earned by Integer under the Transition Services Agreement were immaterial for the three month periods ended March 31, 2017 and April 1, 2016. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION Three Months Ended (in thousands) March 31, April 1, Noncash investing and financing activities: Property, plant and equipment purchases included in accounts payable $ 3,243 $ 4,304 Purchase of technology included in accrued expenses — 2,000 Divestiture of noncash assets — 54,591 Divestiture of liabilities — 2,119 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories are comprised of the following (in thousands): March 31, December 30, Raw materials $ 104,989 $ 100,738 Work-in-process 91,749 89,224 Finished goods 34,554 35,189 Total $ 231,292 $ 225,151 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, Net | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | GOODWILL AND OTHER INTANGIBLE ASSETS, NET Goodwill The changes in the carrying amount of goodwill by reporting unit for the three months ended March 31, 2017 were as follows (in thousands): Medical Non- Medical Total December 30, 2016 $ 950,326 $ 17,000 $ 967,326 Foreign currency translation 2,087 — 2,087 March 31, 2017 $ 952,413 $ 17,000 $ 969,413 Intangible Assets Intangible assets at March 31, 2017 and December 30, 2016 were as follows (in thousands): Gross Carrying Amount Accumulated Amortization Foreign Currency Translation Net Carrying Amount March 31, 2017 Definite-lived: Purchased technology and patents $ 256,719 $ (104,977 ) $ 794 $ 152,536 Customer lists 759,987 (67,165 ) (4,202 ) 688,620 Other 4,534 (5,171 ) 788 151 Total $ 1,021,240 $ (177,313 ) $ (2,620 ) $ 841,307 Indefinite-lived: Trademarks and tradenames $ 90,288 December 30, 2016 Definite-lived: Purchased technology and patents $ 256,719 $ (100,719 ) $ 333 $ 156,333 Customer lists 759,987 (60,474 ) (6,269 ) 693,244 Other 4,534 (5,142 ) 803 195 Total $ 1,021,240 $ (166,335 ) $ (5,133 ) $ 849,772 Indefinite-lived: Trademarks and tradenames $ 90,288 (5.) GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Continued) Aggregate intangible asset amortization expense is comprised of the following (in thousands): Three Months Ended March 31, April 1, Cost of sales $ 4,084 $ 4,240 Selling, general and administrative expenses 6,758 5,136 Research, development and engineering costs, net 136 88 Total intangible asset amortization expense $ 10,978 $ 9,464 Estimated future intangible asset amortization expense based on the carrying value as of March 31, 2017 is as follows (in thousands): 2017 2018 2019 2020 2021 After 2021 Amortization Expense 32,689 44,542 44,605 45,192 $ 44,080 $ 630,199 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Long-term debt is comprised of the following (in thousands): March 31, December 30, Senior secured term loan A $ 351,563 $ 356,250 Senior secured term loan B 948,286 1,014,750 9.125% senior notes due 2023 360,000 360,000 Revolving line of credit 82,000 40,000 Less unamortized discount on term loan B and debt issuance costs (39,437 ) (40,837 ) Total debt 1,702,412 1,730,163 Less current portion of long-term debt 34,173 31,344 Total long-term debt $ 1,668,239 $ 1,698,819 Senior Secured Credit Facilities The Company has senior secured credit facilities (the “Senior Secured Credit Facilities”) consisting of (i) a $200 million revolving credit facility (the “Revolving Credit Facility”), (ii) a $375 million term loan A facility (the “TLA Facility”), and (iii) a $1,025 million term loan B facility (the “TLB Facility”). The TLA Facility and TLB Facility are collectively referred to as the “Term Loan Facilities.” The TLB facility was issued at a 1% discount. On March 17, 2017, the Company amended the Senior Secured Credit Facilities to lower the interest rate on the TLB Facility. The amendment reduces the applicable interest rate margins of its TLB Facility for both base rate and adjusted LIBOR borrowings by 75 basis points. The amendment also includes a prepayment fee of 1.00% in the event of another repricing event (as defined in the Senior Secured Credit Facilities) on or before the six -month anniversary of this amendment. There was no change to maturities or covenants under the Senior Secured Credit Facilities as a result of this repricing amendment. (6.) DEBT (Continued) Revolving Credit Facility The Revolving Credit Facility matures on October 27, 2020 . The Revolving Credit Facility also includes a $15 million sublimit for swingline loans and a $25 million sublimit for standby letters of credit. The Company is required to pay a commitment fee on the unused portion of the Revolving Credit Facility, which will range between 0.175% and 0.25% , depending on the Company’s Total Net Leverage Ratio (as defined in the Senior Secured Credit Facilities agreement). Interest rates on the Revolving Credit Facility, as well as the TLA Facility, are at the Company’s option, either at: (i) the prime rate plus the applicable margin, which will range between 0.75% and 2.25% , based on the Company’s Total Net Leverage Ratio, or (ii) the applicable LIBOR rate plus the applicable margin, which will range between 1.75% and 3.25% , based on the Company’s Total Net Leverage Ratio. As of March 31, 2017 , the Company had $82 million of outstanding borrowings on the Revolving Credit Facility and an available borrowing capacity of $109.1 million after giving effect to $8.9 million of outstanding standby letters of credit. As of March 31, 2017 , the weighted average interest rate on all outstanding borrowings under the Revolving Credit Facility was 4.10% . Subject to certain conditions, commitments under the Revolving Credit Facility may be increased through an incremental revolving facility so long as, on a pro forma basis, the Company’s first lien net leverage ratio does not exceed 4.25 :1.00. The outstanding amount of the Revolving Credit Facility approximated its fair value as of March 31, 2017 based upon the debt being variable rate and short-term in nature. Term Loan Facilities The TLA Facility and TLB Facility mature on October 27, 2021 and October 27, 2022 , respectively. Interest rates on the TLB Facility are, at the Company’s option, either at: (i) the prime rate plus 2.50% or (ii) the applicable LIBOR rate plus 3.50% , with LIBOR subject to a 1.00% floor. As of March 31, 2017 , the interest rates on the TLA Facility and TLB Facility were 4.24% and 4.50% , respectively. Subject to certain conditions, one or more incremental term loan facilities may be added to the Term Loan Facilities so long as, on a pro forma basis, the Company’s first lien net leverage ratio does not exceed 4.25 :1.00. As of March 31, 2017 , the estimated fair value of the TLB Facility was approximately $950 million , based on quoted market prices for the debt, recent sales prices for the debt and consideration of comparable debt instruments with similar interest rates and trading frequency, among other factors, and is classified as Level 2 measurements within the fair value hierarchy. The par amount of the TLA Facility approximated its fair value as of March 31, 2017 based upon the debt being variable rate in nature. Covenants The Revolving Credit Facility and TLA Facility contain covenants requiring (A) a maximum Total Net Leverage Ratio of 6.25 :1.00, subject to step downs beginning in the first quarter of 2018 and (B) a minimum interest coverage ratio of adjusted EBITDA (as defined in the Senior Secured Credit Facilities) to interest expense of not less than 2.50 :1.00 subject to step ups beginning in the first quarter of 2018. The TLB Facility does not contain any financial maintenance covenants. As of March 31, 2017 , the Company was in compliance with these financial covenants. The Senior Secured Credit Facilities also contain negative covenants that restrict the Company’s ability to (i) incur additional indebtedness; (ii) create certain liens; (iii) consolidate or merge; (iv) sell assets, including capital stock of the Company’s subsidiaries; (v) engage in transactions with the Company’s affiliates; (vi) create restrictions on the payment of dividends or other amounts from the Company’s restricted subsidiaries; (vii) pay dividends on capital stock or redeem, repurchase or retire capital stock; (viii) pay, prepay, repurchase or retire certain subordinated indebtedness; (ix) make investments, loans, advances and acquisitions; (x) make certain amendments or modifications to the organizational documents of the Company or its subsidiaries or the documentation governing other senior indebtedness of the Company; and (xi) change the Company’s type of business. These negative covenants are subject to a number of limitations and exceptions that are described in the Senior Secured Credit Facilities agreement. As of March 31, 2017 , the Company was in compliance with all negative covenants under the Senior Secured Credit Facilities. The Senior Secured Credit Facilities provide for customary events of default. Upon the occurrence and during the continuance of an event of default, the outstanding advances and all other obligations under the Senior Secured Credit Facilities become immediately due and payable. (6.) DEBT (Continued) 9.125% Senior Notes due 2023 On October 27, 2015, the Company completed a private offering of $360 million aggregate principal amount of 9.125% senior notes due on November 1, 2023 (the “Senior Notes”). Interest on the Senior Notes is payable on May 1 and November 1 of each year. As of March 31, 2017 , the estimated fair value of the Senior Notes was approximately $381 million , based on quoted market prices of these Senior Notes, recent sales prices for the Senior Notes and consideration of comparable debt instruments with similar interest rates and trading frequency, among other factors, and is classified as Level 2 measurements within the fair value hierarchy. The indenture for the Senior Notes contain certain restrictive covenants and provides for customary events of default, subject in certain cases to customary cure periods, in which the Senior Notes and any unpaid interest would become due and payable. As of March 31, 2017 , the Company was in compliance with all restrictive covenants under the indenture governing the Senior Notes. Contractual maturities under the Senior Secured Credit Facilities and Senior Notes for the remainder of 2017 and the five years and thereafter, excluding any discounts or premiums, as of March 31, 2017 are as follows (in thousands): 2017 2018 2019 2020 2021 After 2021 Future minimum principal payments $ 27,142 $ 30,469 $ 37,500 $ 119,500 $ 229,688 $ 1,297,550 Debt Issuance Costs and Discounts The change in deferred debt issuance costs related to the Revolving Credit Facility is as follows (in thousands): December 30, 2016 $ 3,800 Amortization during the period (248 ) March 31, 2017 $ 3,552 The change in unamortized discount and debt issuance costs related to the Term Loan Facilities and Senior Notes is as follows (in thousands): Debt Issuance Costs Unamortized Discount on TLB Facility Total December 30, 2016 $ 32,096 $ 8,741 $ 40,837 Financing costs incurred 1,789 — 1,789 Write-off of debt issuance costs and unamortized discount (1) (1,051 ) (508 ) (1,559 ) Amortization during the period (1,299 ) (331 ) (1,630 ) March 31, 2017 $ 31,535 $ 7,902 $ 39,437 (1) The Company prepaid a portion of its TLB Facility during the first quarter of 2017. The Company recognized a loss from extinguishment of debt of $1.6 million , which is included in Interest Expense, Net in the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income for the three months ended March 31, 2017. The loss from extinguishment of debt represents the portion of the unamortized discount and debt issuance costs related to the TLB Facility prepaid. Interest Rate Swaps From time to time, the Company enters into interest rate swap agreements in order to hedge against potential changes in cash flows on its outstanding variable rate debt. During 2016, the Company entered into a one -year $250 million interest rate swap and a three -year $200 million interest rate swap to hedge against potential changes in cash flows on the outstanding variable rate debt, which is indexed to the one-month LIBOR rate. The variable rate received on the interest rate swap and the variable rate paid on the outstanding debt will have the same rate of interest, excluding the credit spread, and will reset and pay interest on the same date. The swaps are being accounted for as cash flow hedges. (6.) DEBT (Continued) Information regarding the Company’s outstanding interest rate swaps designated as cash flow hedges as of March 31, 2017 is as follows (dollars in thousands): Notional Amount Start Date End Date Pay Fixed Rate Receive Current Floating Rate Fair Value Balance Sheet Location $ 200,000 Jun-17 Jun-20 1.1325 % N/A $ 3,536 Other Long-Term Assets $ 250,000 Jul-16 Jun-17 0.615 % 0.98 % $ 244 Prepaid Expenses and Other Current Assets The estimated fair value of the interest rate swap agreements represents the amount the Company expects to receive (pay) to terminate the contract. No portion of the change in fair value of the Company’s interest rate swaps during the three months ended March 31, 2017 and April 1, 2016 was considered ineffective. The amount recorded as a reduction to Interest Expense during the three months ended March 31, 2017 related to the Company’s interest rate swaps was $0.1 million . |
Benefit Plans
Benefit Plans | 3 Months Ended |
Mar. 31, 2017 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
BENEFIT PLANS | BENEFIT PLANS The Company is required to provide its employees located in Switzerland, Mexico, France, and Germany certain statutorily mandated defined benefits. Under these plans, benefits accrue to employees based upon years of service, position, age and compensation. The defined benefit pension plan provided to the Company’s employees located in Switzerland is a funded contributory plan, while the plans that provide benefits to the Company’s employees located in Mexico, France, and Germany are unfunded and noncontributory. The liability and corresponding expense related to these benefit plans is based on actuarial computations of current and future benefits for employees. The change in net defined benefit plan liability is as follows (in thousands): December 30, 2016 $ 7,556 Net defined benefit cost 161 Benefit payments (45 ) Foreign currency translation 242 March 31, 2017 $ 7,914 Net defined benefit cost is comprised of the following (in thousands): Three Months Ended March 31, April 1, Service cost $ 110 $ 108 Interest cost 38 43 Amortization of net loss 17 46 Expected return on plan assets (4 ) (5 ) Net defined benefit cost $ 161 $ 192 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The Company maintains certain stock-based compensation plans that were approved by the Company’s stockholders and are administered by the Board of Directors, or the Compensation and Organization Committee of the Board. The stock-based compensation plans provide for the granting of stock options, shares of restricted stock, restricted stock units (“RSUs”), stock appreciation rights and stock bonuses to employees, non-employee directors, consultants, and service providers. The components and classification of stock-based compensation expense were as follows (in thousands): Three Months Ended March 31, April 1, Stock options $ 710 $ 609 Restricted stock and restricted stock units 3,959 2,226 Total stock-based compensation expense $ 4,669 $ 2,835 Cost of sales $ 142 $ 197 Selling, general and administrative expenses 2,159 1,655 Research, development and engineering costs, net 105 177 Other operating expenses, net 2,263 806 Total stock-based compensation expense $ 4,669 $ 2,835 During the first quarter of 2017, the Company recorded $2.2 million of accelerated stock-based compensation expense in connection with the transition of its former Chief Executive Officer (“CEO”) per the terms of his contract, which was classified as Other Operating Expenses, Net. In connection with the Spin-off, certain awards granted to employees who transferred to Nuvectra were canceled. As required, the Company accelerated the remaining expense related to these canceled awards of $0.5 million during the first quarter of 2016, which was classified as Other Operating Expenses, Net. The weighted average fair value and assumptions used to value options granted are as follows: Three Months Ended March 31, April 1, Weighted average fair value $ 9.14 $ 12.81 Risk-free interest rate 1.63 % 1.69 % Expected volatility 38 % 26 % Expected life (in years) 4 5 Expected dividend yield — % — % (8.) STOCK-BASED COMPENSATION (Continued) The following table summarizes the Company’s stock option activity: Number of Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (In Years) Aggregate Intrinsic Value (In Millions) Outstanding at December 30, 2016 1,739,972 $ 28.26 Granted 33,636 29.55 Exercised (343,898 ) 21.66 Forfeited or expired (9,490 ) 45.82 Outstanding at March 31, 2017 1,420,220 $ 29.77 6.4 $ 17.8 Exercisable at March 31, 2017 1,164,993 $ 27.94 5.8 $ 16.1 During the three months ended March 31, 2017, the Company awarded grants of 0.6 million RSUs to certain members of management, of which 0.4 million are performance-based RSUs (“PSUs”) and the remainder are time-based RSUs that vest over three years. Of the PSUs, 0.3 million of the shares subject to each grant will be earned based upon achievement of specific Company performance metrics for the Company’s fiscal year ending December 29, 2017, and 0.1 million of the shares subject to each grant will be earned based on the Company’s achievement of a relative total shareholder return (“TSR”) performance requirement, on a percentile basis, compared to a defined group of peer companies over a two -year performance period ending December 28, 2018. The number of PSUs earned based on the achievement of the Company performance metrics and TSR performance requirements, if any, will vest based on the recipient’s continuous service to the Company over a period of generally one to three years from the grant date. The time-based RSUs generally vest ratably over a three -year period. The RSUs do not have rights to dividends or dividend equivalents. The grant-date fair value of the TSR portion of the PSUs granted during the three months ended March 31, 2017 was determined using the Monte Carlo simulation model on the date of grant, assuming the following (i) expected term of 1.89 years , (ii) risk free interest rate of 1.12% , (iii) expected dividend yield of 0.0% and (iv) expected stock price volatility over the expected term of the TSR award of 48.9% . The grant-date fair value of all other restricted stock awards is equal to the closing market price of Integer common stock on the date of grant. The following table summarizes time-vested restricted stock and RSU activity: Time-Vested Activity Weighted Average Fair Value Nonvested at December 30, 2016 39,394 $ 45.51 Granted 250,132 32.10 Vested (7,797 ) 29.55 Forfeited (2,321 ) 40.72 Nonvested at March 31, 2017 279,408 $ 33.99 The following table summarizes PSU activity: Performance- Vested Activity Weighted Average Fair Value Nonvested at December 30, 2016 356,586 $ 31.87 Granted 370,815 30.58 Forfeited (134,223 ) 31.40 Nonvested at March 31, 2017 593,178 $ 31.18 |
Other Operating Expenses, Net
Other Operating Expenses, Net | 3 Months Ended |
Mar. 31, 2017 | |
Other Income and Expenses [Abstract] | |
OTHER OPERATING EXPENSES, NET | OTHER OPERATING EXPENSES, NET Other Operating Expenses, Net is comprised of the following (in thousands) Three Months Ended March 31, April 1, 2014 investments in capacity and capabilities $ 1,590 $ 4,153 Lake Region Medical consolidations 706 2,359 Acquisition and integration costs 4,820 9,965 Asset dispositions, severance and other 4,556 4,526 Other consolidation and optimization initiatives 99 137 Total other operating expenses, net $ 11,771 $ 21,140 2014 Investments in Capacity and Capabilities In 2014, the Company announced several initiatives to invest in capacity and capabilities and to better align its resources to meet its customers’ needs and drive organic growth and profitability. These included the following: • Functions performed at the Company’s facility in Plymouth, MN to manufacture catheters and introducers will transfer into the Company’s existing facility in Tijuana, Mexico. This initiative is expected to be substantially completed by the end of 2017 and is dependent upon our customers’ validation and qualification of the transferred products as well as regulatory approvals worldwide. • Functions performed at the Company’s facilities in Beaverton, OR and Raynham, MA to manufacture products for the portable medical market were transferred to a new facility in Tijuana, Mexico. Products manufactured at the Beaverton facility, which do not serve the portable medical market, were transferred to the Company’s Raynham facility. This initiative was substantially completed during the first half of 2016. The final closure of the Beaverton, OR site occurred in the fourth quarter of 2016. • The design engineering responsibilities previously performed at the Company’s Cleveland, OH facility were transferred to the Company’s facilities in Minnesota in 2015. • The realignment of the Company’s commercial sales operations was completed in 2015. The total capital investment expected for these initiatives is between $ 24.0 million and $ 25.0 million , of which $23.4 million has been expended through March 31, 2017 . Total restructuring charges expected to be incurred in connection with this realignment are between $ 52.0 million and $ 55.0 million , of which $ 50.7 million has been incurred through March 31, 2017 . Expenses related to this initiative are primarily recorded within the Medical segment and include the following: • Severance and retention: $ 6.0 million - $ 7.0 million ; • Accelerated depreciation and asset write-offs: $ 3.0 million - $3.0 million ; and • Other: $ 43.0 million - $ 45.0 million Other expenses primarily consist of costs to relocate certain equipment and personnel, duplicate personnel costs, excess overhead, disposal, and travel expenditures. All expenses are cash expenditures except accelerated depreciation and asset write-offs. The change in accrued liabilities related to the 2014 investments in capacity and capabilities is as follows (in thousands): Severance and Retention Accelerated Depreciation/ Asset Write-offs Other Total December 30, 2016 $ 66 $ — $ — $ 66 Restructuring charges 140 — 1,450 1,590 Cash payments — — (1,450 ) (1,450 ) March 31, 2017 $ 206 $ — $ — $ 206 (9.) OTHER OPERATING EXPENSES, NET (Continued) Lake Region Medical Consolidations In 2014, Lake Region Medical initiated plans to close its Arvada, CO site, consolidate its two Galway, Ireland sites into one facility, and other restructuring actions that will result in a reduction in staff across manufacturing and administrative functions at certain locations. This initiative was substantially completed by the end of 2016. During the third quarter of 2016, the Company announced the planned closure of its Clarence, NY facility. The machined component product lines manufactured in this facility will be transferred to other Integer locations in the U.S. The project is expected to be completed by the first quarter of 2018. The total capital investment expected to be incurred for these initiatives is between $5.0 million and $6.0 million , of which $2.5 million has been expended through March 31, 2017 . Total expense expected to be incurred for these initiatives are between $20.0 million and $25.0 million , of which $11.3 million has been incurred through March 31, 2017 . Expenses related to these initiatives have been and will be recorded within the Medical segment and are expected to include the following: • Severance and retention: $8.0 million - $10.0 million ; • Accelerated depreciation and asset write-offs: approximately $1.0 million - $2.0 million ; and • Other: $11.0 million - $13.0 million . Other expenses primarily consist of production inefficiencies, moving, revalidation, personnel, training, consulting, and travel costs associated with these consolidation projects. All expenses are cash expenditures except accelerated depreciation and asset write-offs. The change in accrued liabilities related to the Lake Region Medical consolidation initiatives is as follows (in thousands): Severance and Retention Accelerated Depreciation/ Asset Write-offs Other Total December 30, 2016 $ 729 $ — $ 402 $ 1,131 Restructuring charges 423 — 283 706 Cash payments (440 ) — (292 ) (732 ) March 31, 2017 $ 712 $ — $ 393 $ 1,105 Acquisition and integration costs During the first quarter of 2017 and 2016, the Company incurred $4.8 million and $10.0 million respectively, in acquisition and integration costs related to the acquisition of Lake Region Medical, consisting primarily of integration costs. Integration costs primarily include professional, consulting, severance, retention, relocation, and travel costs. In addition, the first quarter of 2016 includes transaction costs, primarily related to change-in-control payments to former Lake Region Medical executives, as well as professional and consulting fees. As of March 31, 2017 and December 30, 2016, $2.0 million and $4.5 million of acquisition and integration costs related to the Lake Region Medical acquisition are accrued. Total expense expected to be incurred in connection with the integration of Lake Region Medical is between $40.0 million and $50.0 million , of which $37.3 million were incurred through March 31, 2017 . Total capital expenditures for this initiative are expected to be between $20.0 million and $25.0 million , of which $9.5 million were incurred through March 31, 2017. Asset dispositions, severance and other During the first quarter of 2017 and 2016, the Company recorded gains and losses, respectively, in connection with various asset disposals and/or write-downs. The first quarter of 2017 amount also includes approximately $4.7 million in expense related to the Company’s leadership transitions, which were recorded within the corporate unallocated segment. The first quarter of 2016 amount also includes legal and professional costs in connection with the Spin-off of $4.3 million . Expenses related to the Spin-off were primarily recorded within the corporate unallocated and the Medical segment. Refer to Note 2 “Divestiture” for additional information on the Spin-off. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The income tax provision for interim periods is determined using an estimate of the annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the estimate of the annual effective tax rate is updated, and if the estimated effective tax rate changes, a cumulative adjustment is made. There is a potential for volatility of the effective tax rate due to several factors, including discrete items, changes in the mix and amount of pre-tax income and the jurisdictions to which it relates, changes in tax laws and foreign tax holidays, business reorganizations, settlements with taxing authorities and foreign currency fluctuations. The Company’s worldwide effective tax rate for the first quarter of 2017 was a negative 3.4% on $4.2 million of losses before the provision for income taxes compared to 0.8% on $12.8 million of losses before the benefit for income taxes for the same period in 2016. The effective tax rate for the first quarter of 2017 reflects $0.9 million of discrete tax expense items, including $0.6 million related, in part, to stock based compensation expense in accordance with new guidance under Accounting Standards Update (“ASU”) 2016-09. The difference between the Company’s effective tax rate and the U.S. federal statutory income tax rate in the current year is primarily attributable to the Company’s overall lower effective tax rate in the foreign jurisdictions in which it operates and where its foreign earnings are derived, including Switzerland, Mexico, Germany, Uruguay, and Ireland. In addition, the Company currently has a tax holiday in Malaysia through April 2018, with a potential extension through April 2023 if certain conditions are met. As of March 31, 2017 , the balance of unrecognized tax benefits is approximately $10.9 million . It is reasonably possible that a reduction of up to $0.1 million of the balance of unrecognized tax benefits may occur within the next twelve months as a result of potential audit settlements. Approximately $10.1 million of the balance of unrecognized tax benefits would favorably impact the effective tax rate, net of federal benefit on state issues, if recognized. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Litigation The Company is subject to litigation arising from time to time in the ordinary course of its business. The Company does not expect that the ultimate resolution of any pending legal actions will have a material effect on its consolidated results of operations, financial position, or cash flows. However, litigation is subject to inherent uncertainties. As such, there can be no assurance that any pending legal action, which the Company currently believes to be immaterial, will not become material in the future. In April 2013, the Company commenced an action against AVX Corporation and AVX Filters Corporation (collectively “AVX”) alleging that AVX had infringed on the Company’s patents by manufacturing and selling filtered feedthrough assemblies used in implantable pacemakers and cardioverter defibrillators that incorporate the Company’s patented technology. On January 26, 2016, a jury in the U.S. District Court for the District of Delaware returned a verdict finding that AVX infringed on two Integer patents and awarded Integer $37.5 million in damages. The finding is subject to post-trial proceedings currently scheduled to be held in August 2017. The Company has recorded no gains in connection with this litigation as no cash has been received. Product Warranties The Company generally warrants that its products will meet customer specifications and will be free from defects in materials and workmanship. The Company does not expect future product warranty claims will have a material effect on its condensed consolidated results of operations, financial position, or cash flows. However, there can be no assurance that any future customer complaints or negative regulatory actions regarding the Company’s products, which the Company currently believes to be immaterial, does not become material in the future. The change in product warranty liability was comprised of the following (in thousands): December 30, 2016 $ 3,911 Reversal of warranty reserve (252 ) Warranty claims settled (832 ) March 31, 2017 $ 2,827 (11.) COMMITMENTS AND CONTINGENCIES (Continued) Foreign Currency Contracts The Company periodically enters into foreign currency forward contracts to hedge its exposure to foreign currency exchange rate fluctuations in its international operations. The Company has designated these foreign currency forward contracts as cash flow hedges; and accordingly, the effective portions of the unrealized gains and losses on these contracts is reported in Accumulated Other Comprehensive Income (Loss) in the Condensed Consolidated Balance Sheets and is reclassified to earnings in the same periods during which the hedged transactions affect earnings. The estimated Accumulated Other Comprehensive Income (Loss) related to the Company’s foreign currency contracts that is expected to be reclassified into earnings within the next twelve months is a $0.3 million gain. In connection with the Lake Region Medical acquisition, the Company terminated its outstanding forward contracts resulting in a $2.4 million payment to the foreign currency contract counterparty during 2015. As of the date the contracts were terminated, the Company had $1.6 million recorded in Accumulated Other Comprehensive Income (Loss) related to these contracts. This amount was fully amortized to Cost of Sales during 2016 as the inventory, which the contracts were hedging the cash flows to produce, was sold. The impact to the Company’s results of operations from its forward contract hedges is as follows (in thousands): Three Months Ended March 31, April 1, Decrease in sales $ 24 $ — Increase in cost of sales 1,062 619 Ineffective portion of change in fair value — — Information regarding outstanding foreign currency contracts designated as cash flow hedges as of March 31, 2017 is as follows (dollars in thousands): Aggregate Notional Amount Start Date End Date $/Foreign Currency Fair Value Balance Sheet Location $ 18,490 Jan 2017 Dec 2017 0.0514 Peso $ 310 Prepaid expenses and other current assets $ 19,344 Feb 2017 Dec 2017 1.0747 Euro $ 22 Prepaid expenses and other current assets |
Earnings (Loss) Per Share (EPS)
Earnings (Loss) Per Share (EPS) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE (EPS) | EARNINGS (LOSS) PER SHARE (“EPS”) The following table illustrates the calculation of basic and diluted EPS (in thousands, except per share amounts): Three Months Ended March 31, April 1, Numerator for basic and diluted EPS: Net loss $ (4,339 ) $ (12,660 ) Denominator for basic EPS: Weighted average shares outstanding 31,016 30,718 Denominator for diluted EPS 31,016 30,718 Basic EPS $ (0.14 ) $ (0.41 ) Diluted EPS $ (0.14 ) $ (0.41 ) The diluted weighted average share calculations do not include the following securities, which are not dilutive to the EPS calculations or the performance criteria have not been met (in thousands): Three Months Ended March 31, April 1, Time-vested stock options, restricted stock and restricted stock units 1,700 1,890 Performance-vested restricted stock and restricted stock units 593 441 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Accumulated Other Comprehensive Income (Loss) is comprised of the following (in thousands): Defined Benefit Plan Liability Cash Flow Hedges Foreign Currency Translation Adjustment Total Pre-Tax Amount Tax Net-of-Tax Amount December 30, 2016 $ (1,475 ) $ 1,420 $ (15,660 ) $ (15,715 ) $ (285 ) $ (16,000 ) Unrealized gain on cash flow hedges — 1,712 — 1,712 (599 ) 1,113 Realized loss on foreign currency hedges — 1,086 — 1,086 (380 ) 706 Realized gain on interest rate swap hedges — (106 ) — (106 ) 37 (69 ) Foreign currency translation gain — — 6,536 6,536 — 6,536 March 31, 2017 $ (1,475 ) $ 4,112 $ (9,124 ) $ (6,487 ) $ (1,227 ) $ (7,714 ) Defined Benefit Plan Liability Cash Flow Hedges Foreign Currency Translation Adjustment Total Pre-Tax Amount Tax Net-of-Tax Amount January 1, 2016 $ (1,179 ) $ (2,392 ) $ 3,609 $ 38 $ 1,332 $ 1,370 Unrealized loss on cash flow hedges — (54 ) — (54 ) 19 (35 ) Realized loss on foreign currency hedges — 619 — 619 (217 ) 402 Foreign currency translation gain — — 18,760 18,760 — 18,760 April 1, 2016 $ (1,179 ) $ (1,827 ) $ 22,369 $ 19,363 $ 1,134 $ 20,497 The realized loss relating to the Company’s foreign currency hedges were reclassified from Accumulated Other Comprehensive Income (Loss) and included in Cost of Sales or Sales as the transactions they are hedging occur. The realized gain relating to the Company’s interest rate swap hedges were reclassified from Accumulated Other Comprehensive Income (Loss) and included in Interest Expense, Net as interest on the corresponding debt being hedged is accrued. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Assets and Liabilities Measured at Fair Value on a Recurring Basis Fair value measurement standards apply to certain financial assets and liabilities that are measured at fair value on a recurring basis (each reporting period). For the Company, these financial assets and liabilities include its derivative instruments. The Company does not have any nonfinancial assets or liabilities that are measured at fair value on a recurring basis. Foreign Currency Contracts The fair value of foreign currency contracts were determined through the use of cash flow models that utilize observable market data inputs to estimate fair value. These observable market data inputs included foreign exchange rate and credit spread curves. In addition, the Company received fair value estimates from the foreign currency contract counterparties to verify the reasonableness of the Company’s estimates. The Company’s foreign currency contracts are categorized in Level 2 of the fair value hierarchy. Refer to Note 11 “Commitments and Contingencies” for further discussion regarding the fair value of the Company’s foreign currency contracts. Interest Rate Swaps The fair value of the Company’s interest rate swap contracts outstanding were determined through the use of a cash flow model that utilizes observable market data inputs. These observable market data inputs include LIBOR, swap rates, and credit spread curves. In addition, the Company received a fair value estimate from the interest rate swaps counterparty to verify the reasonableness of the Company’s estimate. Refer to Note 6 “Debt” for further discussion regarding the fair value of the Company’s interest rate swaps. The following table provides information regarding assets and liabilities recorded at fair value on a recurring basis (in thousands): Fair Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) March 31, 2017 Assets: Foreign currency contracts $ 332 $ — $ 332 $ — Assets: Interest rate swaps 3,780 — 3,780 — December 30, 2016 Assets: Interest rate swaps $ 3,482 $ — $ 3,482 $ — Liabilities: Foreign currency contracts 2,063 — 2,063 — Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Fair value standards also apply to certain assets and liabilities that are measured at fair value on a nonrecurring basis. The carrying amounts of cash, accounts receivable, accounts payable, and accrued expenses approximate fair value because of the short-term nature of these items. Refer to Note 6 “Debt” for further discussion regarding the fair value of the Company’s Senior Secured Credit Facilities and Senior Notes. A summary of the valuation methodologies for assets and liabilities measured on a nonrecurring basis is as follows: Cost and Equity Method Investments The Company holds investments in equity and other securities that are accounted for as either cost or equity method investments, which are classified as Other Assets on the Condensed Consolidated Balance Sheets. The total carrying value of these investments is reviewed quarterly for changes in circumstance or the occurrence of events that suggest the Company’s investment may not be recoverable. The fair value of cost or equity method investments is not adjusted if there are no identified events or changes in circumstances that may have a material effect on the fair value of the investments. (14.) FAIR VALUE MEASUREMENTS (Continued) Gains and losses realized on cost and equity method investments are recorded in Other Expense (Income), Net, unless separately stated. The aggregate recorded amount of cost and equity method investments at March 31, 2017 and December 30, 2016 was $22.6 million and $22.8 million , respectively. The Company’s equity method investment is in a Chinese venture capital fund focused on investing in life sciences companies. This fund accounts for its investments at fair value with the unrealized change in fair value of these investments recorded as income or loss to the fund in the period of change. As of March 31, 2017 , the Company owned 7.1% of this fund. During the three month periods ended March 31, 2017 and April 1, 2016 , the Company did not recognize any impairment charges related to its cost method investments. The fair value of these investments is primarily determined by reference to recent sales data of similar shares to independent parties in an inactive market. This fair value calculation is categorized in Level 2 of the fair value hierarchy. During the three month periods ended March 31, 2017 and April 1, 2016 , the Company recognized a net loss of $0.4 million and a net gain of $1.3 million , respectively, on its cost and equity method investments. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION As a result of the Lake Region Medical acquisition and Spin-off, during 2016 the Company reorganized its operations including its internal management and financial reporting structure. As a result of this reorganization, the Company reevaluated and revised its reportable business segments during the fourth quarter of 2016 and began to disclose two reportable segments: (1) Medical and (2) Non-Medical. Prior period amounts have been reclassified to conform to the new segment reporting presentation. The two reportable segments, along with their related product lines, are described below: Medical - includes the (i) Cardio & Vascular product line, which includes introducers, steerable sheaths, guidewires, catheters, and stimulation therapy components, subassemblies and finished devices that deliver therapies for various markets such as coronary and neurovascular disease, peripheral vascular disease, interventional radiology, vascular access, atrial fibrillation, and interventional cardiology, plus products for medical imaging and pharmaceutical delivery; (ii) Cardiac & Neuromodulation product line, which includes batteries, capacitors, filtered and unfiltered feed-throughs, engineered components, implantable stimulation leads, and enclosures used in implantable medical devices; and (iii) Advanced Surgical, Orthopedics & Portable Medical product line, which includes components, sub-assemblies, finished devices, implants, instruments and delivery systems for a range of surgical technologies to the advanced surgical market, including laparoscopy, orthopedics and general surgery, biopsy and drug delivery, joint preservation and reconstruction, arthroscopy, and engineered tubing solutions. Products also include life-saving and life-enhancing applications comprising of automated external defibrillators, portable oxygen concentrators, ventilators, and powered surgical tools. Non-Medical - includes primary (lithium) cells, and primary and secondary battery packs for applications in the energy, military and environmental markets. During the first quarter of 2017, the Company revised the method used to present sales by product line in order to align the legacy Greatbatch and Lake Region Medical methodologies. The Company believes the revised presentation will provide improved reporting and better transparency into the operational results of its business and markets. Prior period amounts have been reclassified to conform to the new product line sales reporting presentation. The tables below present information about our reportable segments (in thousands): Three Months Ended March 31, April 1, Segment sales by product line: Medical Cardio & Vascular $ 125,108 $ 113,671 Cardiac & Neuromodulation 103,813 108,533 Advanced Surgical, Orthopedics & Portable Medical 105,146 98,362 Total Medical $ 334,067 $ 320,566 Non-Medical 11,346 11,672 Total sales $ 345,413 $ 332,238 (15.) BUSINESS SEGMENT, GEOGRAPHIC AND CONCENTRATION RISK INFORMATION (Continued) There were no sales between segments during the three months ended March 31, 2017 and April 1, 2016. Three Months Ended March 31, April 1, Segment income (loss) from operations: Medical $ 50,360 $ 31,841 Non-Medical 1,562 (1,011 ) Total segment income from operations 51,922 30,830 Unallocated operating expenses (25,377 ) (19,696 ) Operating income 26,545 11,134 Unallocated expenses, net (30,740 ) (23,896 ) Loss before provision (benefit) for income taxes $ (4,195 ) $ (12,762 ) |
Impact of Recently Issued Accou
Impact of Recently Issued Accounting Standards | 3 Months Ended |
Mar. 31, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS | IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS In the normal course of business, management evaluates all new accounting pronouncements issued by the Financial Accounting Standards Board (“FASB”), Securities and Exchange Commission (“SEC”), or other authoritative accounting bodies to determine the potential impact they may have on the Company’s consolidated financial statements. Based upon this review, except as noted below, management does not expect any of the recently issued accounting pronouncements, which have not already been adopted, to have a material impact on the Company’s Consolidated Financial Statements. Recently Adopted In March 2016, the FASB issued ASU 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” ASU 2016-09 simplifies various aspects of the accounting for stock-based payments. The simplifications include: • recording all tax effects associated with stock-based compensation through the income statement, as opposed to recording certain amounts in other paid-in capital, which eliminates the requirements to calculate a windfall pool; • allowing entities to withhold shares to satisfy the employer’s statutory tax withholding requirement up to the highest marginal tax rate applicable to employees rather than the employer’s minimum statutory rate, without requiring liability classification for the award; • modifying the requirement to estimate the number of awards that will ultimately vest by providing an accounting policy election to either estimate the number of forfeitures or recognize forfeitures as they occur; • changing certain presentation requirements in the statement of cash flows, including removing the requirement to present excess tax benefits as an inflow from financing activities and an outflow from operating activities, and requiring the cash paid to taxing authorities arising from withheld shares to be classified as a financing activity; and • the assumed proceeds from applying the treasury stock method when computing EPS is amended to exclude the amount of excess tax benefits that would be recognized in additional paid-in capital. The Company adopted the provisions of ASU 2016-09 on December 31, 2016, the beginning of its 2017 fiscal year. The adoption of ASU 2016-09 resulted in the Company making an accounting policy election to change how it will recognize the number of stock awards that will ultimately vest. In the past, the Company applied a forfeiture rate to shares granted. With the adoption of ASU 2016-09, the Company will recognize forfeitures as they occur. This change resulted in the Company making a cumulative effect change to retained earnings of $0.3 million . In addition, the Company recorded the tax effects associated with stock-based compensation through the income statement, which resulted in $0.6 million , net tax expense for the first three months of 2017, and will continue to record amounts prospectively through the income statement in accordance with ASU 2016-09. Finally, the Company adjusted its dilutive shares calculation to remove the excess tax benefits from the calculation of EPS on a prospective basis. The revised calculation is more dilutive, but did not have a material impact on the Company's diluted EPS calculation for the first three months of 2017. (16.) IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS (Continued) In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory,” which simplifies the subsequent measurement of inventory by requiring inventory to be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This ASU is effective for public business entities for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. The Company adopted this standard in the first quarter of fiscal year 2017 on a prospective basis. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, “Simplifying the Test for Goodwill Impairment (Topic 350)” to simplify the accounting for goodwill impairment. The guidance removes Step 2 of the goodwill impairment test. A goodwill impairment will now be measured as the amount by which a reporting unit’s carrying value exceeds its fair value, limited to the amount of goodwill allocated to that reporting unit. ASU 2017-04 is effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted for any impairment tests performed after January 1, 2017. The Company adopted the new guidance on a prospective basis during the first quarter of 2017. The adoption of this ASU did not impact the Company’s consolidated financial statements. Not Yet Adopted In March 2017, the FASB issued ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (Topic 715),” which requires employers to report the service cost component of net periodic pension cost and net periodic postretirement benefit cost in the same line item as other compensation costs arising from services rendered by the pertinent employees during the period. It also requires other components of net periodic pension cost and net periodic postretirement benefit cost, including interest cost, return on plan assets and gains or losses, to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. This guidance is effective for the Company in the first quarter of fiscal year 2018 and is not expected to have a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business,” which outlines new minimum requirements for a set of assets to be considered a business. The intent of this ASU is to sharpen the distinction between the purchase or disposal of a business versus the purchase or disposal of assets. ASU 2017-01 is effective for the Company in the first quarter of 2018, with early adoption permitted, and prospective application required. The Company does not believe the adoption of this guidance will have a material impact on its consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-entity Transfers of Assets Other Than Inventory,” which requires entities to recognize the income tax consequences of intra-entity transfers of assets other than inventory when the transfers occur. This ASU is effective for the Company for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15 “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments: A Consensus of the FASB Emerging Issues Task Force.” ASU 2016-15 makes targeted changes to how cash receipts and cash payments are presented in the statement of cash flows. The areas specifically addressed include debt prepayment and debt extinguishment costs, the settlement of zero-coupon debt instruments, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, cash premiums paid for and proceeds from corporate-owned life insurance policies, distributions received from equity method investees and cash receipts from payments on transferor’s beneficial interest on securitized trade receivables. Additionally, the amendment states that, in the absence of other prevailing guidance, cash receipts and payments that have characteristics of more than one class of cash flows should have each separately identifiable source or use of cash presented within the most predominant class of cash flows based on the nature of the underlying cash flows. These amendments are effective for the Company in annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted. The Company is currently evaluating this ASU, but does not believe the adoption of this guidance will have a material impact on its consolidated financial statements. (16.) IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS (Continued) In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” which requires companies to recognize a lease liability that represents the discounted obligation to make future minimum lease payments, and a corresponding right-of-use asset on the balance sheet for most leases. This ASU retains a distinction between finance leases and operating leases, and the classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the current accounting literature. The result of retaining a distinction between finance leases and operating leases is that under the lessee accounting model in Topic 842, the effect of leases in a consolidated statement of comprehensive income and a consolidated statement of cash flows is largely unchanged from previous GAAP. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and are required to be applied on a modified retrospective basis. Earlier application is permitted. The Company expects the adoption of ASU 2016-02 will result in a material increase in the assets and liabilities on its Consolidated Balance Sheets. The Company is currently evaluating the impact that the adoption of this ASU will have on its Consolidated Statements of Operations and Other Comprehensive Income (Loss). In January 2016, the FASB issued ASU 2016-01, “Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” This ASU requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; requires entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset and requires entities to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk (also referred to as “own credit”) when the organization has elected to measure the liability at fair value in accordance with the fair value option. The new ASU is effective for public companies for fiscal years beginning after December 15, 2017. Early adoption of the own credit provision is permitted. The Company is currently evaluating the impact that the adoption of this ASU will have on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers,” which has been subsequently updated by ASU 2015-14, 2016-08, 2016-10 and 2016-12. The core principle behind ASU 2014-09 is that an entity should recognize revenue in an amount that reflects the consideration to which it expects to be entitled in exchange for delivering goods and services using a five-step model. Enhanced disclosures are required, including revenue recognition policies to identify performance obligations and significant judgments in measurement and recognition. This ASU can be adopted using either a full retrospective approach, where historical financial information is presented in accordance with the new standard, or a modified retrospective approach, where this ASU is applied to the most current period presented in the financial statements. This ASU is effective for the Company in the first quarter of fiscal year 2018. The Company is continuing to evaluate the effect this guidance will have on its consolidated financial statements, including potential impacts on the amount and timing of revenue recognition and additional information that may be necessary for the required expanded disclosures. To date, the Company has performed the following: A transition team has been established to implement the required changes; an initial assessment of the Company’s revenue streams has been initiated; the Company has substantially completed its inventory of all outstanding contracts; and the Company has begun the process of applying the five-step model to those contracts and revenue streams to evaluate the quantitative and qualitative impacts the new standard will have on its business and reported revenues. The Company plans to adopt this ASU, as amended, in the first quarter of fiscal year 2018 on a modified retrospective basis. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Interim Basis of Accounting | The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information (Accounting Standards Codification (“ASC”) 270, Interim Reporting) and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these financial statements do not include all of the information necessary for a full presentation of financial position, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America (“GAAP”). In the opinion of management, the condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the results of the Company for the periods presented. Intercompany transactions and balances have been fully eliminated in consolidation. Certain reclassifications have been made to prior year financial statements to conform to classifications used in the current year. Refer to Note 15 “Segment Information,” for a description of the changes made to reflect the current year product line sales reporting and changes made to our reportable segment structure during the fourth quarter of 2016. Operating results for interim periods are not necessarily indicative of results that may be expected for the fiscal year as a whole. For further information, refer to the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 30, 2016 . |
Use of Estimates | The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, certain components of equity, sales, expenses, and related disclosures at the date of the financial statements and during the reporting period. Actual results could differ materially from these estimates. |
Fiscal Period | The Company utilizes a fifty-two, fifty-three week fiscal year ending on the Friday nearest December 31. The first quarter of 2017 and 2016 each contained 13 weeks, respectively, and ended on March 31, and April 1, respectively. |
Income Taxes | The income tax provision for interim periods is determined using an estimate of the annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the estimate of the annual effective tax rate is updated, and if the estimated effective tax rate changes, a cumulative adjustment is made. There is a potential for volatility of the effective tax rate due to several factors, including discrete items, changes in the mix and amount of pre-tax income and the jurisdictions to which it relates, changes in tax laws and foreign tax holidays, business reorganizations, settlements with taxing authorities and foreign currency fluctuations. |
Cost And Equity Method Investments | The Company holds investments in equity and other securities that are accounted for as either cost or equity method investments, which are classified as Other Assets on the Condensed Consolidated Balance Sheets. The total carrying value of these investments is reviewed quarterly for changes in circumstance or the occurrence of events that suggest the Company’s investment may not be recoverable. The fair value of cost or equity method investments is not adjusted if there are no identified events or changes in circumstances that may have a material effect on the fair value of the investments. (14.) FAIR VALUE MEASUREMENTS (Continued) Gains and losses realized on cost and equity method investments are recorded in Other Expense (Income), Net, unless separately stated. |
Divestiture (Tables)
Divestiture (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Divestiture and Acquisition [Abstract] | |
Summary of divested assets and liabilities | In connection with the Spin-off, during the first quarter of 2016, the Company made a cash capital contribution of $75 million to Nuvectra and divested the following assets and liabilities (in thousands): Assets divested Cash and cash equivalents $ 76,256 Other current assets 977 Property, plant and equipment, net 4,407 Amortizing intangible assets, net 1,931 Goodwill 40,830 Deferred income taxes 6,446 Total assets divested 130,847 Liabilities transferred Current liabilities 2,119 Net assets divested $ 128,728 |
Supplemental Cash Flow Inform25
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | Three Months Ended (in thousands) March 31, April 1, Noncash investing and financing activities: Property, plant and equipment purchases included in accounts payable $ 3,243 $ 4,304 Purchase of technology included in accrued expenses — 2,000 Divestiture of noncash assets — 54,591 Divestiture of liabilities — 2,119 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | Inventories are comprised of the following (in thousands): March 31, December 30, Raw materials $ 104,989 $ 100,738 Work-in-process 91,749 89,224 Finished goods 34,554 35,189 Total $ 231,292 $ 225,151 |
Goodwill and Other Intangible27
Goodwill and Other Intangible Assets, Net (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill by reporting unit for the three months ended March 31, 2017 were as follows (in thousands): Medical Non- Medical Total December 30, 2016 $ 950,326 $ 17,000 $ 967,326 Foreign currency translation 2,087 — 2,087 March 31, 2017 $ 952,413 $ 17,000 $ 969,413 |
Schedule of Finite-Lived Intangible Assets, Major Class | Intangible assets at March 31, 2017 and December 30, 2016 were as follows (in thousands): Gross Carrying Amount Accumulated Amortization Foreign Currency Translation Net Carrying Amount March 31, 2017 Definite-lived: Purchased technology and patents $ 256,719 $ (104,977 ) $ 794 $ 152,536 Customer lists 759,987 (67,165 ) (4,202 ) 688,620 Other 4,534 (5,171 ) 788 151 Total $ 1,021,240 $ (177,313 ) $ (2,620 ) $ 841,307 Indefinite-lived: Trademarks and tradenames $ 90,288 December 30, 2016 Definite-lived: Purchased technology and patents $ 256,719 $ (100,719 ) $ 333 $ 156,333 Customer lists 759,987 (60,474 ) (6,269 ) 693,244 Other 4,534 (5,142 ) 803 195 Total $ 1,021,240 $ (166,335 ) $ (5,133 ) $ 849,772 Indefinite-lived: Trademarks and tradenames $ 90,288 |
Schedule of Indefinite-Lived Intangible Assets | Intangible assets at March 31, 2017 and December 30, 2016 were as follows (in thousands): Gross Carrying Amount Accumulated Amortization Foreign Currency Translation Net Carrying Amount March 31, 2017 Definite-lived: Purchased technology and patents $ 256,719 $ (104,977 ) $ 794 $ 152,536 Customer lists 759,987 (67,165 ) (4,202 ) 688,620 Other 4,534 (5,171 ) 788 151 Total $ 1,021,240 $ (177,313 ) $ (2,620 ) $ 841,307 Indefinite-lived: Trademarks and tradenames $ 90,288 December 30, 2016 Definite-lived: Purchased technology and patents $ 256,719 $ (100,719 ) $ 333 $ 156,333 Customer lists 759,987 (60,474 ) (6,269 ) 693,244 Other 4,534 (5,142 ) 803 195 Total $ 1,021,240 $ (166,335 ) $ (5,133 ) $ 849,772 Indefinite-lived: Trademarks and tradenames $ 90,288 |
Schedule of Finite-Lived Intangible Assets, Amortization Expense | Aggregate intangible asset amortization expense is comprised of the following (in thousands): Three Months Ended March 31, April 1, Cost of sales $ 4,084 $ 4,240 Selling, general and administrative expenses 6,758 5,136 Research, development and engineering costs, net 136 88 Total intangible asset amortization expense $ 10,978 $ 9,464 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated future intangible asset amortization expense based on the carrying value as of March 31, 2017 is as follows (in thousands): 2017 2018 2019 2020 2021 After 2021 Amortization Expense 32,689 44,542 44,605 45,192 $ 44,080 $ 630,199 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt is comprised of the following (in thousands): March 31, December 30, Senior secured term loan A $ 351,563 $ 356,250 Senior secured term loan B 948,286 1,014,750 9.125% senior notes due 2023 360,000 360,000 Revolving line of credit 82,000 40,000 Less unamortized discount on term loan B and debt issuance costs (39,437 ) (40,837 ) Total debt 1,702,412 1,730,163 Less current portion of long-term debt 34,173 31,344 Total long-term debt $ 1,668,239 $ 1,698,819 |
Schedule of Maturities of Long-term Debt | Contractual maturities under the Senior Secured Credit Facilities and Senior Notes for the remainder of 2017 and the five years and thereafter, excluding any discounts or premiums, as of March 31, 2017 are as follows (in thousands): 2017 2018 2019 2020 2021 After 2021 Future minimum principal payments $ 27,142 $ 30,469 $ 37,500 $ 119,500 $ 229,688 $ 1,297,550 |
Schedule of Deferred Financing Fees | The change in deferred debt issuance costs related to the Revolving Credit Facility is as follows (in thousands): December 30, 2016 $ 3,800 Amortization during the period (248 ) March 31, 2017 $ 3,552 The change in unamortized discount and debt issuance costs related to the Term Loan Facilities and Senior Notes is as follows (in thousands): Debt Issuance Costs Unamortized Discount on TLB Facility Total December 30, 2016 $ 32,096 $ 8,741 $ 40,837 Financing costs incurred 1,789 — 1,789 Write-off of debt issuance costs and unamortized discount (1) (1,051 ) (508 ) (1,559 ) Amortization during the period (1,299 ) (331 ) (1,630 ) March 31, 2017 $ 31,535 $ 7,902 $ 39,437 (1) The Company prepaid a portion of its TLB Facility during the first quarter of 2017. The Company recognized a loss from extinguishment of debt of $1.6 million , which is included in Interest Expense, Net in the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income for the three months ended March 31, 2017. The loss from extinguishment of debt represents the portion of the unamortized discount and debt issuance costs related to the TLB Facility prepaid. |
Schedule of Interest Rate Derivatives | Information regarding the Company’s outstanding interest rate swaps designated as cash flow hedges as of March 31, 2017 is as follows (dollars in thousands): Notional Amount Start Date End Date Pay Fixed Rate Receive Current Floating Rate Fair Value Balance Sheet Location $ 200,000 Jun-17 Jun-20 1.1325 % N/A $ 3,536 Other Long-Term Assets $ 250,000 Jul-16 Jun-17 0.615 % 0.98 % $ 244 Prepaid Expenses and Other Current Assets |
Benefit Plans (Tables)
Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Schedule of Defined Benefit Plan, Change in Benefit Obligation | The change in net defined benefit plan liability is as follows (in thousands): December 30, 2016 $ 7,556 Net defined benefit cost 161 Benefit payments (45 ) Foreign currency translation 242 March 31, 2017 $ 7,914 |
Schedule of Net Defined Benefit Cost | Net defined benefit cost is comprised of the following (in thousands): Three Months Ended March 31, April 1, Service cost $ 110 $ 108 Interest cost 38 43 Amortization of net loss 17 46 Expected return on plan assets (4 ) (5 ) Net defined benefit cost $ 161 $ 192 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The components and classification of stock-based compensation expense were as follows (in thousands): Three Months Ended March 31, April 1, Stock options $ 710 $ 609 Restricted stock and restricted stock units 3,959 2,226 Total stock-based compensation expense $ 4,669 $ 2,835 Cost of sales $ 142 $ 197 Selling, general and administrative expenses 2,159 1,655 Research, development and engineering costs, net 105 177 Other operating expenses, net 2,263 806 Total stock-based compensation expense $ 4,669 $ 2,835 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The weighted average fair value and assumptions used to value options granted are as follows: Three Months Ended March 31, April 1, Weighted average fair value $ 9.14 $ 12.81 Risk-free interest rate 1.63 % 1.69 % Expected volatility 38 % 26 % Expected life (in years) 4 5 Expected dividend yield — % — % |
Schedule of Share-based Compensation, Stock Options Activity | The following table summarizes the Company’s stock option activity: Number of Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (In Years) Aggregate Intrinsic Value (In Millions) Outstanding at December 30, 2016 1,739,972 $ 28.26 Granted 33,636 29.55 Exercised (343,898 ) 21.66 Forfeited or expired (9,490 ) 45.82 Outstanding at March 31, 2017 1,420,220 $ 29.77 6.4 $ 17.8 Exercisable at March 31, 2017 1,164,993 $ 27.94 5.8 $ 16.1 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The following table summarizes time-vested restricted stock and RSU activity: Time-Vested Activity Weighted Average Fair Value Nonvested at December 30, 2016 39,394 $ 45.51 Granted 250,132 32.10 Vested (7,797 ) 29.55 Forfeited (2,321 ) 40.72 Nonvested at March 31, 2017 279,408 $ 33.99 The following table summarizes PSU activity: Performance- Vested Activity Weighted Average Fair Value Nonvested at December 30, 2016 356,586 $ 31.87 Granted 370,815 30.58 Forfeited (134,223 ) 31.40 Nonvested at March 31, 2017 593,178 $ 31.18 |
Other Operating Expenses, Net (
Other Operating Expenses, Net (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Other Operating Cost and Expense By Component | Other Operating Expenses, Net is comprised of the following (in thousands) Three Months Ended March 31, April 1, 2014 investments in capacity and capabilities $ 1,590 $ 4,153 Lake Region Medical consolidations 706 2,359 Acquisition and integration costs 4,820 9,965 Asset dispositions, severance and other 4,556 4,526 Other consolidation and optimization initiatives 99 137 Total other operating expenses, net $ 11,771 $ 21,140 |
Investments in Capacity and Capabilities [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring Reserve By Type of Cost | The change in accrued liabilities related to the 2014 investments in capacity and capabilities is as follows (in thousands): Severance and Retention Accelerated Depreciation/ Asset Write-offs Other Total December 30, 2016 $ 66 $ — $ — $ 66 Restructuring charges 140 — 1,450 1,590 Cash payments — — (1,450 ) (1,450 ) March 31, 2017 $ 206 $ — $ — $ 206 |
Legacy Lake Region Medical Consolidation [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring Reserve By Type of Cost | The change in accrued liabilities related to the Lake Region Medical consolidation initiatives is as follows (in thousands): Severance and Retention Accelerated Depreciation/ Asset Write-offs Other Total December 30, 2016 $ 729 $ — $ 402 $ 1,131 Restructuring charges 423 — 283 706 Cash payments (440 ) — (292 ) (732 ) March 31, 2017 $ 712 $ — $ 393 $ 1,105 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability | The change in product warranty liability was comprised of the following (in thousands): December 30, 2016 $ 3,911 Reversal of warranty reserve (252 ) Warranty claims settled (832 ) March 31, 2017 $ 2,827 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The impact to the Company’s results of operations from its forward contract hedges is as follows (in thousands): Three Months Ended March 31, April 1, Decrease in sales $ 24 $ — Increase in cost of sales 1,062 619 Ineffective portion of change in fair value — — |
Schedule of Foreign Exchange Contracts, Statement of Financial Position | Information regarding outstanding foreign currency contracts designated as cash flow hedges as of March 31, 2017 is as follows (dollars in thousands): Aggregate Notional Amount Start Date End Date $/Foreign Currency Fair Value Balance Sheet Location $ 18,490 Jan 2017 Dec 2017 0.0514 Peso $ 310 Prepaid expenses and other current assets $ 19,344 Feb 2017 Dec 2017 1.0747 Euro $ 22 Prepaid expenses and other current assets |
Earnings (Loss) Per Share (EP33
Earnings (Loss) Per Share (EPS) (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | The following table illustrates the calculation of basic and diluted EPS (in thousands, except per share amounts): Three Months Ended March 31, April 1, Numerator for basic and diluted EPS: Net loss $ (4,339 ) $ (12,660 ) Denominator for basic EPS: Weighted average shares outstanding 31,016 30,718 Denominator for diluted EPS 31,016 30,718 Basic EPS $ (0.14 ) $ (0.41 ) Diluted EPS $ (0.14 ) $ (0.41 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The diluted weighted average share calculations do not include the following securities, which are not dilutive to the EPS calculations or the performance criteria have not been met (in thousands): Three Months Ended March 31, April 1, Time-vested stock options, restricted stock and restricted stock units 1,700 1,890 Performance-vested restricted stock and restricted stock units 593 441 |
Accumulated Other Comprehensi34
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) is comprised of the following (in thousands): Defined Benefit Plan Liability Cash Flow Hedges Foreign Currency Translation Adjustment Total Pre-Tax Amount Tax Net-of-Tax Amount December 30, 2016 $ (1,475 ) $ 1,420 $ (15,660 ) $ (15,715 ) $ (285 ) $ (16,000 ) Unrealized gain on cash flow hedges — 1,712 — 1,712 (599 ) 1,113 Realized loss on foreign currency hedges — 1,086 — 1,086 (380 ) 706 Realized gain on interest rate swap hedges — (106 ) — (106 ) 37 (69 ) Foreign currency translation gain — — 6,536 6,536 — 6,536 March 31, 2017 $ (1,475 ) $ 4,112 $ (9,124 ) $ (6,487 ) $ (1,227 ) $ (7,714 ) Defined Benefit Plan Liability Cash Flow Hedges Foreign Currency Translation Adjustment Total Pre-Tax Amount Tax Net-of-Tax Amount January 1, 2016 $ (1,179 ) $ (2,392 ) $ 3,609 $ 38 $ 1,332 $ 1,370 Unrealized loss on cash flow hedges — (54 ) — (54 ) 19 (35 ) Realized loss on foreign currency hedges — 619 — 619 (217 ) 402 Foreign currency translation gain — — 18,760 18,760 — 18,760 April 1, 2016 $ (1,179 ) $ (1,827 ) $ 22,369 $ 19,363 $ 1,134 $ 20,497 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table provides information regarding assets and liabilities recorded at fair value on a recurring basis (in thousands): Fair Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) March 31, 2017 Assets: Foreign currency contracts $ 332 $ — $ 332 $ — Assets: Interest rate swaps 3,780 — 3,780 — December 30, 2016 Assets: Interest rate swaps $ 3,482 $ — $ 3,482 $ — Liabilities: Foreign currency contracts 2,063 — 2,063 — |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reconciliation [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | The tables below present information about our reportable segments (in thousands): Three Months Ended March 31, April 1, Segment sales by product line: Medical Cardio & Vascular $ 125,108 $ 113,671 Cardiac & Neuromodulation 103,813 108,533 Advanced Surgical, Orthopedics & Portable Medical 105,146 98,362 Total Medical $ 334,067 $ 320,566 Non-Medical 11,346 11,672 Total sales $ 345,413 $ 332,238 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Three Months Ended March 31, April 1, Segment income (loss) from operations: Medical $ 50,360 $ 31,841 Non-Medical 1,562 (1,011 ) Total segment income from operations 51,922 30,830 Unallocated operating expenses (25,377 ) (19,696 ) Operating income 26,545 11,134 Unallocated expenses, net (30,740 ) (23,896 ) Loss before provision (benefit) for income taxes $ (4,195 ) $ (12,762 ) |
Basis of Presentation (Narrativ
Basis of Presentation (Narrative) (Details) | 3 Months Ended | |
Mar. 31, 2017 | Apr. 01, 2016 | |
Accounting Policies [Abstract] | ||
Fiscal Period Duration | 91 days | 91 days |
Divestiture (Spin-off of Nuvect
Divestiture (Spin-off of Nuvectra Corporation) (Details) - Spin-off [Member] - Nuvectra [Member] $ in Thousands | Mar. 14, 2016USD ($) | Apr. 01, 2016USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Stock conversion ratio | 3 | |
Cash capital contribution | $ 75,000 | |
Assets divested | ||
Cash and cash equivalents | $ 76,256 | |
Other current assets | 977 | |
Property, plant and equipment, net | 4,407 | |
Amortizing intangible assets, net | 1,931 | |
Goodwill | 40,830 | |
Deferred income taxes | 6,446 | |
Total assets divested | 130,847 | |
Liabilities transferred | ||
Current liabilities | 2,119 | |
Net assets divested | $ 128,728 | |
Pre-tax loss | $ 5,200 |
Supplemental Cash Flow Inform39
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Apr. 01, 2016 | |
Noncash investing and financing activities: | ||
Property, plant and equipment purchases included in accounts payable | $ 3,243 | $ 4,304 |
Purchase of technology included in accrued expenses | 0 | 2,000 |
Divestiture of noncash assets | 0 | 54,591 |
Divestiture of liabilities | $ 0 | $ 2,119 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 30, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 104,989 | $ 100,738 |
Work-in-process | 91,749 | 89,224 |
Finished goods | 34,554 | 35,189 |
Total | $ 231,292 | $ 225,151 |
Goodwill and Other Intangible41
Goodwill and Other Intangible Assets, Net (Schedule of Indefinite-Lived Intangible Assets and Goodwill) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Goodwill [Roll Forward] | |
Goodwill | $ 967,326 |
Foreign currency translation | 2,087 |
Goodwill | 969,413 |
Medical Segment [Member] | |
Goodwill [Roll Forward] | |
Goodwill | 950,326 |
Foreign currency translation | 2,087 |
Goodwill | 952,413 |
Non-Medical Segment [Member] | |
Goodwill [Roll Forward] | |
Goodwill | 17,000 |
Goodwill | $ 17,000 |
Goodwill and Other Intangible42
Goodwill and Other Intangible Assets, Net (Schedule of Finite-Lived Intangible Assets, Major Class) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 30, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,021,240 | $ 1,021,240 |
Accumulated Amortization | (177,313) | (166,335) |
Foreign Currency Translation | (2,620) | (5,133) |
Total estimated amortization expense | 841,307 | 849,772 |
Trademarks And Tradenames [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 90,288 | 90,288 |
Purchased Technology And Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 256,719 | 256,719 |
Accumulated Amortization | (104,977) | (100,719) |
Foreign Currency Translation | 794 | 333 |
Total estimated amortization expense | 152,536 | 156,333 |
Customer Lists [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 759,987 | 759,987 |
Accumulated Amortization | (67,165) | (60,474) |
Foreign Currency Translation | (4,202) | (6,269) |
Total estimated amortization expense | 688,620 | 693,244 |
Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 4,534 | 4,534 |
Accumulated Amortization | (5,171) | (5,142) |
Foreign Currency Translation | 788 | 803 |
Total estimated amortization expense | $ 151 | $ 195 |
Goodwill and Other Intangible43
Goodwill and Other Intangible Assets, Net (Schedule of Finite-Lived Intangible Assets, Amortization Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Apr. 01, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible asset amortization expense | $ 10,978 | $ 9,464 |
Cost of Sales [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible asset amortization expense | 4,084 | 4,240 |
Selling General And Administrative Expense [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible asset amortization expense | 6,758 | 5,136 |
Research and Development Expense [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible asset amortization expense | $ 136 | $ 88 |
Goodwill and Other Intangible44
Goodwill and Other Intangible Assets, Net (Schedule of Finite-Lived Intangible Assets, Future Amortization Expense) (Details) $ in Thousands | Mar. 31, 2017USD ($) |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |
2,017 | $ 32,689 |
2,018 | 44,542 |
2,019 | 44,605 |
2,020 | 45,192 |
2,021 | 44,080 |
After 2,021 | $ 630,199 |
Debt (Schedule of Long-Term Deb
Debt (Schedule of Long-Term Debt) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 30, 2016 |
Debt Instrument [Line Items] | ||
Less unamortized discount on term loan B and debt issuance costs | $ (39,437) | $ (40,837) |
Total debt | 1,702,412 | 1,730,163 |
Less current portion of long-term debt | 34,173 | 31,344 |
Total long-term debt | 1,668,239 | 1,698,819 |
Secured Debt [Member] | Loans Payable [Member] | Term Loan A (TLA) Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 351,563 | 356,250 |
Secured Debt [Member] | Loans Payable [Member] | Term Loan B (TLB) Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 948,286 | 1,014,750 |
Secured Debt [Member] | Loans Payable [Member] | 9.125% Senior Notes due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 360,000 | 360,000 |
Secured Debt [Member] | Revolving Credit Facility [Member] | New Revolving Credit Facility 2015 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 82,000 | $ 40,000 |
Debt (Credit Facility) (Details
Debt (Credit Facility) (Details) | Mar. 17, 2017 | Oct. 27, 2015USD ($)loan_facility | Mar. 31, 2017USD ($) | Apr. 27, 2016USD ($) |
Senior Notes [Member] | 9.125% Senior Notes due 2023 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 360,000,000 | |||
Debt Instrument, Maturity Date | Nov. 1, 2023 | |||
Long-term Debt, Fair Value | $ 381,000,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 9.125% | |||
Secured Debt [Member] | Revolving Credit Facility [Member] | New Revolving Credit Facility 2015 [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit Facility Maximum Borrowing Capacity | $ 200,000,000 | |||
Debt Instrument, Maturity Date | Oct. 27, 2020 | |||
Revolving line of credit | 82,000,000 | |||
Line of Credit Facility, Remaining Borrowing Capacity | 109,100,000 | |||
Letters of Credit Outstanding, Amount | $ 8,900,000 | |||
Debt Weighted Average Interest Rate | 4.10% | |||
Secured Debt [Member] | Loans Payable [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Covenant Compliance, Number Of Additional Term Loan Facilities That May Be Added | loan_facility | 1 | |||
Secured Debt [Member] | Loans Payable [Member] | Term Loan A (TLA) Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 375,000,000 | |||
Debt Instrument, Maturity Date | Oct. 27, 2021 | |||
Debt Weighted Average Interest Rate | 4.24% | |||
Debt Instrument, Covenant Compliance, Maximum Leverage Ratio | 6.25 | |||
Debt Instrument, Covenant Compliance, Adjusted EBITDA To Interest Expense Ratio | 2.5 | |||
Secured Debt [Member] | Loans Payable [Member] | Term Loan B (TLB) Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 1,025,000,000 | |||
Debt Instrument, Discount, Percentage | 1.00% | |||
Prepayment fee | 1.00% | |||
Prepayment period | 6 months | |||
Debt Instrument, Maturity Date | Oct. 27, 2022 | |||
Debt Weighted Average Interest Rate | 4.50% | |||
Long-term Debt, Fair Value | $ 950,000,000 | |||
Secured Debt [Member] | Loans Payable [Member] | Term Loan B (TLB) Facility [Member] | Prime Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Variable rate basis spread | 2.50% | |||
Secured Debt [Member] | Loans Payable [Member] | Term Loan B (TLB) Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Reduction to the variable rate basis spread | 0.75% | |||
Variable rate basis spread | 3.50% | |||
Debt Instrument, Interest Rate, Floor | 1.00% | |||
Secured Debt [Member] | Loans Payable [Member] | Term Loan B (TLB) Facility [Member] | Base Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Reduction to the variable rate basis spread | 0.75% | |||
Secured Debt [Member] | Swingline Loans [Member] | New Revolving Credit Facility 2015 [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit Facility Maximum Borrowing Capacity | $ 15,000,000 | |||
Secured Debt [Member] | Standby Letters of Credit [Member] | New Revolving Credit Facility 2015 [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit Facility Maximum Borrowing Capacity | $ 25,000,000 | |||
Secured Debt [Member] | Minimum [Member] | Revolving Credit Facility [Member] | New Revolving Credit Facility 2015 [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.175% | |||
Secured Debt [Member] | Minimum [Member] | Loans Payable [Member] | Term Loan A (TLA) Facility [Member] | Prime Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Variable rate basis spread | 0.75% | |||
Secured Debt [Member] | Minimum [Member] | Loans Payable [Member] | Term Loan A (TLA) Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Variable rate basis spread | 1.75% | |||
Secured Debt [Member] | Maximum [Member] | Senior Secured Credit Facilities [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Covenant Compliance, First Lien Net Leverage Ratio | 4.25 | |||
Secured Debt [Member] | Maximum [Member] | Revolving Credit Facility [Member] | New Revolving Credit Facility 2015 [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.25% | |||
Secured Debt [Member] | Maximum [Member] | Loans Payable [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Covenant Compliance, First Lien Net Leverage Ratio | 4.25 | |||
Secured Debt [Member] | Maximum [Member] | Loans Payable [Member] | Term Loan A (TLA) Facility [Member] | Prime Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Variable rate basis spread | 2.25% | |||
Secured Debt [Member] | Maximum [Member] | Loans Payable [Member] | Term Loan A (TLA) Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Variable rate basis spread | 3.25% |
Debt (Long-term Debt Maturity S
Debt (Long-term Debt Maturity Schedule) (Details) $ in Thousands | Mar. 31, 2017USD ($) |
Debt Disclosure [Abstract] | |
2,017 | $ 27,142 |
2,018 | 30,469 |
2,019 | 37,500 |
2,020 | 119,500 |
2,021 | 229,688 |
After 2,021 | $ 1,297,550 |
Debt (Schedule of Deferred Fina
Debt (Schedule of Deferred Financing Fees) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Apr. 01, 2016 | |
Deferred Finance Costs [Roll Forward] | ||
Total, Beginning Balance | $ (40,837) | |
Amortization during the period | (3,437) | $ (1,773) |
Total, Beginning Balance | 39,437 | |
Loss on extinguishment of debt | 1,600 | |
Revolving Credit Facility [Member] | ||
Deferred Finance Costs [Roll Forward] | ||
Deferred Finance Costs, Net, Beginning Balance | 3,800 | |
Amortization during the period | (248) | |
Deferred Finance Costs, Net, Ending Balance | 3,552 | |
Term Loan And Senior Notes [Member] | ||
Deferred Finance Costs [Roll Forward] | ||
Deferred Finance Costs, Net, Beginning Balance | 32,096 | |
Financing costs deferred | 1,789 | |
Write-off of debt issuance costs and unamortized discount | (1,051) | |
Amortization during the period | (1,299) | |
Deferred Finance Costs, Net, Ending Balance | 31,535 | |
Total, Beginning Balance | (40,837) | |
Financing costs incurred | 1,789 | |
Write-off of debt issuance costs and unamortized discount | (1,559) | |
Amortization during the period | (1,630) | |
Total, Beginning Balance | 39,437 | |
Term Loan B (TLB) Facility [Member] | ||
Deferred Finance Costs [Roll Forward] | ||
Unamortized Discount on TLB Facility, Beginning Balance | 8,741 | |
Financing costs incurred | 0 | |
Write-off of debt issuance costs and unamortized discount | (508) | |
Amortization during the period | (331) | |
Unamortized Discount on TLB Facility, Ending Balance | $ 7,902 |
Debt (Schedule of Interest Rate
Debt (Schedule of Interest Rate Swaps and Details) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Jul. 31, 2016 | Jun. 30, 2016 | Mar. 31, 2017 | Apr. 01, 2016 | |
Derivative [Line Items] | ||||
Interest Expense | $ 28,893,000 | $ 27,617,000 | ||
Interest Rate Swap 4 [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Term of Contract | 1 year | |||
Derivative Asset, Notional Amount | $ 250,000,000 | |||
Notional Amount | $ 250,000,000 | |||
Pay Fixed Rate | 0.615% | |||
Receive Current Floating Rate | 0.98% | |||
Fair Value, Asset | $ 244,000 | |||
Interest Rate Swap 3 [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Term of Contract | 3 years | |||
Derivative Liability, Notional Amount | $ 200,000,000 | |||
Notional Amount | $ 200,000,000 | |||
Pay Fixed Rate | 1.1325% | |||
Fair Value, Asset | $ 3,536,000 | |||
Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Gain (Loss) Recognized In Income Ineffective Portion | 0 | $ 0 | ||
Interest Expense | $ 100,000 |
Benefit Plans (Schedule of Defi
Benefit Plans (Schedule of Defined Benefit Plan, Change in Benefit Obligation) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Apr. 01, 2016 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||
December 30, 2016 | $ 7,556 | |
Net defined benefit cost | 161 | $ 192 |
Benefit payments | (45) | |
Foreign currency translation | 242 | |
March 31, 2017 | $ 7,914 |
Benefit Plans (Schedule of Net
Benefit Plans (Schedule of Net Defined Benefit Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Apr. 01, 2016 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ||
Service cost | $ 110 | $ 108 |
Interest cost | 38 | 43 |
Amortization of net loss | 17 | 46 |
Expected return on plan assets | (4) | (5) |
Net defined benefit cost | $ 161 | $ 192 |
Stock-Based Compensation (Alloc
Stock-Based Compensation (Allocation of Recognized Period Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Apr. 01, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated Share-based Compensation Expense | $ 4,669 | $ 2,835 |
Stock Option [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated Share-based Compensation Expense | 710 | 609 |
Restricted Stock And Unit Awards [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated Share-based Compensation Expense | 3,959 | 2,226 |
Cost of Sales [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated Share-based Compensation Expense | 142 | 197 |
Selling General And Administrative Expense [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated Share-based Compensation Expense | 2,159 | 1,655 |
Research and Development Expense [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated Share-based Compensation Expense | 105 | 177 |
Other Operating Income (Expense) [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated Share-based Compensation Expense | $ 2,263 | $ 806 |
Stock-Based Compensation (Valua
Stock-Based Compensation (Valuation Assumptions) (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 01, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average fair value | $ 9.14 | $ 12.81 |
Risk-free interest rate | 1.63% | 1.69% |
Expected volatility | 38.00% | 26.00% |
Expected life (in years) | 4 years | 5 years |
Expected dividend yield | 0.00% | 0.00% |
TSR Performance Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 1.12% | |
Expected volatility | 48.90% | |
Expected life (in years) | 1 year 10 months 21 days | |
Expected dividend yield | 0.00% |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Options Activity) (Details) $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($)$ / sharesshares | |
Stock Option Activity (in shares) | |
Options Outstanding, Beginning | shares | 1,739,972 |
Granted | shares | 33,636 |
Exercised | shares | (343,898) |
Forfeited or expired | shares | (9,490) |
Options Outstanding, Ending | shares | 1,420,220 |
Options Exercisable | shares | 1,164,993 |
Weighted Average Exercise Price (in dollars per share) | |
Options Outstanding, Beginning | $ / shares | $ 28.26 |
Granted | $ / shares | 29.55 |
Exercised | $ / shares | 21.66 |
Forfeited or expired | $ / shares | 45.82 |
Options Outstanding, Ending | $ / shares | 29.77 |
Options Exercisable | $ / shares | $ 27.94 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Options Outstanding, Weighted Average Remaining Contractual Term | 6 years 5 months 1 day |
Options Exercisable, Weighted Average Remaining Contractual Term | 5 years 9 months 18 days |
Options Outstanding, Intrinsic Value | $ | $ 17.8 |
Options Exercisable, Intrinsic Value | $ | $ 16.1 |
Stock-Based Compensation (Restr
Stock-Based Compensation (Restricted Stock and Restricted Stock Units Activity) (Details) | 3 Months Ended |
Mar. 31, 2017$ / sharesshares | |
Restricted Stock And Restricted Stock Units Time Based [Member] | |
Restricted Stock and Restricted Stock Unit Activity (in shares) | |
Nonvested, Beginning | shares | 39,394 |
Granted | shares | 250,132 |
Vested | shares | (7,797) |
Forfeited | shares | (2,321) |
Nonvested, Ending | shares | 279,408 |
Restricted Stock and Restricted Stock Unit Weighted Average Fair Value (in dollars per share) | |
Nonvested, Beginning | $ / shares | $ 45.51 |
Granted | $ / shares | 32.10 |
Vested | $ / shares | 29.55 |
Forfeited | $ / shares | 40.72 |
Nonvested, Ending | $ / shares | $ 33.99 |
Restricted Stock And Restricted Stock Units Performance Based [Member] | |
Restricted Stock and Restricted Stock Unit Activity (in shares) | |
Nonvested, Beginning | shares | 356,586 |
Granted | shares | 370,815 |
Forfeited | shares | (134,223) |
Nonvested, Ending | shares | 593,178 |
Restricted Stock and Restricted Stock Unit Weighted Average Fair Value (in dollars per share) | |
Nonvested, Beginning | $ / shares | $ 31.87 |
Granted | $ / shares | 30.58 |
Forfeited | $ / shares | 31.40 |
Nonvested, Ending | $ / shares | $ 31.18 |
Stock-Based Compensation (Addit
Stock-Based Compensation (Additional Information) (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Apr. 01, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Acceleration of remaining compensation expense | $ 2.2 | $ 0.5 |
Performance period | 2 years | |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Awards granted | 0.6 | |
Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Awards granted | 0.4 | |
Performance Shares [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 1 year | |
Performance Shares [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Financial Performance Stock Units [Member] | Performance Period Ending December 29, 2017 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Awards granted | 0.3 | |
TSR Performance Stock Units [Member] | Performance Period Ending December 28, 2018 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Awards granted | 0.1 | |
Time-Based Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years |
Other Operating Expenses, Net57
Other Operating Expenses, Net (Schedule of Other Operating Cost and Expense By Component) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Apr. 01, 2016 | |
Other Operating Income Expense Detail [Line Items] | ||
Other Cost and Expense, Operating | $ 11,771 | $ 21,140 |
Investments in Capacity and Capabilities [Member] | ||
Other Operating Income Expense Detail [Line Items] | ||
Other Cost and Expense, Operating | 1,590 | 4,153 |
Legacy Lake Region Medical Consolidation [Member] | ||
Other Operating Income Expense Detail [Line Items] | ||
Other Cost and Expense, Operating | 706 | 2,359 |
Acquisition And Integration Costs [Member] | ||
Other Operating Income Expense Detail [Line Items] | ||
Other Cost and Expense, Operating | 4,820 | 9,965 |
Asset Dispositions Severance And Other [Member] | ||
Other Operating Income Expense Detail [Line Items] | ||
Other Cost and Expense, Operating | 4,556 | 4,526 |
Other Consolidation And Optimization Income (Costs) [Member] | ||
Other Operating Income Expense Detail [Line Items] | ||
Other Cost and Expense, Operating | $ 99 | $ 137 |
Other Operating Expenses, Net58
Other Operating Expenses, Net (Schedule of Restructuring Reserve By Type of Cost) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Investments in Capacity and Capabilities [Member] | |
Restructuring Reserve [Roll Forward] | |
Restructuring Reserve, Beginning Balance | $ 66 |
Restructuring charges | 1,590 |
Cash payments | (1,450) |
Restructuring Reserve, Ending Balance | 206 |
Investments in Capacity and Capabilities [Member] | Severance And Retention [Member] | |
Restructuring Reserve [Roll Forward] | |
Restructuring Reserve, Beginning Balance | 66 |
Restructuring charges | 140 |
Cash payments | 0 |
Restructuring Reserve, Ending Balance | 206 |
Investments in Capacity and Capabilities [Member] | Accelerated Depreciation And Asset Write Offs [Member] | |
Restructuring Reserve [Roll Forward] | |
Restructuring Reserve, Beginning Balance | 0 |
Restructuring charges | 0 |
Cash payments | 0 |
Restructuring Reserve, Ending Balance | 0 |
Investments in Capacity and Capabilities [Member] | Other Restructuring [Member] | |
Restructuring Reserve [Roll Forward] | |
Restructuring Reserve, Beginning Balance | 0 |
Restructuring charges | 1,450 |
Cash payments | (1,450) |
Restructuring Reserve, Ending Balance | 0 |
Legacy Lake Region Medical Consolidation [Member] | |
Restructuring Reserve [Roll Forward] | |
Restructuring Reserve, Beginning Balance | 1,131 |
Restructuring charges | 706 |
Cash payments | (732) |
Restructuring Reserve, Ending Balance | 1,105 |
Legacy Lake Region Medical Consolidation [Member] | Employee Severance [Member] | |
Restructuring Reserve [Roll Forward] | |
Restructuring Reserve, Beginning Balance | 729 |
Restructuring charges | 423 |
Cash payments | (440) |
Restructuring Reserve, Ending Balance | 712 |
Legacy Lake Region Medical Consolidation [Member] | Accelerated Depreciation And Asset Write Offs [Member] | |
Restructuring Reserve [Roll Forward] | |
Restructuring Reserve, Beginning Balance | 0 |
Restructuring charges | 0 |
Cash payments | 0 |
Restructuring Reserve, Ending Balance | 0 |
Legacy Lake Region Medical Consolidation [Member] | Other Restructuring [Member] | |
Restructuring Reserve [Roll Forward] | |
Restructuring Reserve, Beginning Balance | 402 |
Restructuring charges | 283 |
Cash payments | (292) |
Restructuring Reserve, Ending Balance | $ 393 |
Other Operating Expenses, Net59
Other Operating Expenses, Net (Narrative) (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017USD ($)facility | Apr. 01, 2016USD ($) | Dec. 30, 2016USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||
Leadership transition costs | $ 4.7 | ||
Spinoff [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Professional Fees | $ 4.3 | ||
Investments in Capacity and Capabilities [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring And Related Activities Capital Expenditures Incurred To Date | 23.4 | ||
Restructuring and Related Cost, Cost Incurred to Date | 50.7 | ||
Investments in Capacity and Capabilities [Member] | Minimum [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring And Related Activities Expected Capital Expenditures | 24 | ||
Restructuring and Related Cost, Expected Cost | 52 | ||
Investments in Capacity and Capabilities [Member] | Minimum [Member] | Severance And Retention [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | 6 | ||
Investments in Capacity and Capabilities [Member] | Minimum [Member] | Accelerated Depreciation And Asset Write Offs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | 3 | ||
Investments in Capacity and Capabilities [Member] | Minimum [Member] | Other Restructuring [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | 43 | ||
Investments in Capacity and Capabilities [Member] | Maximum [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring And Related Activities Expected Capital Expenditures | 25 | ||
Restructuring and Related Cost, Expected Cost | 55 | ||
Investments in Capacity and Capabilities [Member] | Maximum [Member] | Severance And Retention [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | 7 | ||
Investments in Capacity and Capabilities [Member] | Maximum [Member] | Accelerated Depreciation And Asset Write Offs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | 3 | ||
Investments in Capacity and Capabilities [Member] | Maximum [Member] | Other Restructuring [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | 45 | ||
Legacy Lake Region Medical Consolidation [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring And Related Activities Capital Expenditures Incurred To Date | 2.5 | ||
Restructuring and Related Cost, Cost Incurred to Date | $ 11.3 | ||
Restructuring and Related Costs, Facility Consolidations | facility | 2 | ||
Restructuring and Related Costs, Number of Facilities After Consolidation | facility | 1 | ||
Legacy Lake Region Medical Consolidation [Member] | Minimum [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring And Related Activities Expected Capital Expenditures | $ 5 | ||
Restructuring and Related Cost, Expected Cost | 20 | ||
Legacy Lake Region Medical Consolidation [Member] | Minimum [Member] | Accelerated Depreciation And Asset Write Offs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | 1 | ||
Legacy Lake Region Medical Consolidation [Member] | Minimum [Member] | Other Restructuring [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | 11 | ||
Legacy Lake Region Medical Consolidation [Member] | Minimum [Member] | Employee Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | 8 | ||
Legacy Lake Region Medical Consolidation [Member] | Maximum [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring And Related Activities Expected Capital Expenditures | 6 | ||
Restructuring and Related Cost, Expected Cost | 25 | ||
Legacy Lake Region Medical Consolidation [Member] | Maximum [Member] | Accelerated Depreciation And Asset Write Offs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | 2 | ||
Legacy Lake Region Medical Consolidation [Member] | Maximum [Member] | Other Restructuring [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | 13 | ||
Legacy Lake Region Medical Consolidation [Member] | Maximum [Member] | Employee Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | 10 | ||
Lake Region Medical [Member] | Acquisition And Integration Costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring And Related Activities Capital Expenditures Incurred To Date | 9.5 | ||
Restructuring and Related Cost, Cost Incurred to Date | 37.3 | ||
Acquisition related transaction costs | 4.8 | $ 10 | |
Business Combination, Integration Related Costs Accrued | 2 | $ 4.5 | |
Lake Region Medical [Member] | Acquisition And Integration Costs [Member] | Minimum [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | 40 | ||
Restructuring And Related Costs, Expected Capital Investment | 20 | ||
Lake Region Medical [Member] | Acquisition And Integration Costs [Member] | Maximum [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | 50 | ||
Restructuring And Related Costs, Expected Capital Investment | $ 25 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Apr. 01, 2016 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | (3.40%) | 0.80% |
Loss before provision (benefit) for income taxes | $ 4,195 | $ 12,762 |
Discrete tax expense items | 900 | |
Share-based compensation expense related to ASU 2016-09 adoption | 600 | |
Unrecognized Tax Benefits | 10,900 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | 100 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 10,100 |
Commitments and Contingencies61
Commitments and Contingencies (Narrative) (Details) | Jan. 26, 2016USD ($)patent | Mar. 31, 2017USD ($) |
Gain Contingencies [Line Items] | ||
Gain (Loss) Related to Litigation Settlement | $ 0 | |
Product Warranty Description | The Company generally warrants that its products will meet customer specifications and will be free from defects in materials and workmanship. | |
Positive Outcome of Litigation [Member] | ||
Gain Contingencies [Line Items] | ||
Gain Contingency, Patents Found Infringed upon, Number | patent | 2 | |
Litigation Settlement, Amount | $ 37,500,000 |
Commitments and Contingencies62
Commitments and Contingencies (Schedule of Product Warranty Liability) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |
December 30, 2016 | $ 3,911 |
Reversal of warranty reserve | (252) |
Warranty claims settled | (832) |
March 31, 2017 | $ 2,827 |
Commitments and Contingencies63
Commitments and Contingencies (Foreign Currency Contracts) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017USD ($) | Apr. 01, 2016USD ($) | Jan. 01, 2016USD ($) | |
Foreign Currency Cash Flow Hedges [Abstract] | |||
Decrease in sales | $ 24 | $ 0 | |
Increase in cost of sales | 1,062 | 619 | |
Ineffective portion of change in fair value | 0 | $ 0 | |
Foreign Currency Cash Flow Hedge [Line Items] | |||
Payments for termination of foreign currency contract | $ 2,400 | ||
Foreign currency cash flow hedge gain (loss) to be reclassified | 300 | ||
Terminated FX Contract [Member] | |||
Foreign Currency Cash Flow Hedge [Line Items] | |||
Foreign currency cash flow hedge gain (loss) to be reclassified | $ (1,600) | ||
FX Contract 3 [Member] | |||
Foreign Currency Cash Flow Hedge [Line Items] | |||
Aggregate Notional Amount | $ 18,490 | ||
Start Date | Jan. 1, 2017 | ||
End Date | Dec. 29, 2017 | ||
FX Contract 4 [Member] | |||
Foreign Currency Cash Flow Hedge [Line Items] | |||
Aggregate Notional Amount | $ 19,344 | ||
Start Date | Feb. 25, 2017 | ||
End Date | Dec. 29, 2017 | ||
Accrued Expenses [Member] | FX Contract 3 [Member] | |||
Foreign Currency Cash Flow Hedge [Line Items] | |||
Foreign Currency Cash Flow Hedge Asset at Fair Value | $ 310 | ||
Accrued Expenses [Member] | FX Contract 4 [Member] | |||
Foreign Currency Cash Flow Hedge [Line Items] | |||
Foreign Currency Cash Flow Hedge Asset at Fair Value | $ 22 | ||
Peso [Member] | FX Contract 3 [Member] | |||
Foreign Currency Cash Flow Hedge [Line Items] | |||
$/Foreign Currency | 0.0514 | ||
Euro [Member] | FX Contract 4 [Member] | |||
Foreign Currency Cash Flow Hedge [Line Items] | |||
$/Foreign Currency | 1.0747 |
Earnings (Loss) Per Share (EP64
Earnings (Loss) Per Share (EPS) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Apr. 01, 2016 | |
Net Income (Loss) Available to Common Stockholders, Diluted [Abstract] | ||
Net loss | $ (4,339) | $ (12,660) |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||
Basic | 31,016,000 | 30,718,000 |
Denominator for diluted EPS | 31,016,000 | 30,718,000 |
Basic EPS (in dollars per share) | $ (0.14) | $ (0.41) |
Diluted EPS (in dollars per share) | $ (0.14) | $ (0.41) |
Anitdilutive Securities Excluded From Earnings Per Share [Abstract] | ||
Time-vested stock options, restricted stock and restricted stock units | 1,700,000 | 1,890,000 |
Performance-vested stock options and restricted stock units | 593,000 | 441,000 |
Accumulated Other Comprehensi65
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Apr. 01, 2016 | |
Defined Benefit Plan Liability | ||
Defined Benefit Plan Liability, Beginning | $ (1,475) | $ (1,179) |
Defined Benefit Plan Liability, Ending | (1,475) | (1,179) |
Cash Flow Hedges | ||
Cash Flow Hedges, Beginning | 1,420 | (2,392) |
Unrealized loss on cash flow hedges | 1,712 | (54) |
Realized gain loss on foreign currency hedges - before tax | 1,086 | 619 |
Realized gain loss on interest rate swaps - before tax | (106) | |
Cash Flow Hedges, End | 4,112 | (1,827) |
Foreign Currency Translation Adjustment | ||
Foreign Currency Translation Adjustment, Beginning | (15,660) | 3,609 |
Net foreign currency translation gain (loss) | 6,536 | 18,760 |
Foreign Currency Translation Adjustment, End | (9,124) | 22,369 |
Total Pre-Tax Amount | ||
Total Pre-Tax Amount, Beginning | (15,715) | 38 |
Unrealized loss on cash flow hedges | 1,712 | (54) |
Realized gain loss on foreign currency hedges - before tax | 1,086 | 619 |
Realized gain loss on interest rate swaps - before tax | (106) | |
Net foreign currency translation gain (loss) | 6,536 | 18,760 |
Total Pre-Tax Amount, End | (6,487) | 19,363 |
Tax | ||
Tax, Beginning | (285) | 1,332 |
Unrealized gain (loss) on cash flow hedges | (599) | 19 |
Realized gain loss on foreign currency contracts - tax | (380) | (217) |
Realized gain loss on interest rate swap hedges - tax | 37 | |
Net foreign currency translation gain (loss) | 0 | 0 |
Tax, End | (1,227) | 1,134 |
Net-of-Tax Amount | ||
Total Net-of-Tax Amount, Beginning | (16,000) | 1,370 |
Unrealized gain (loss) on cash flow hedges, net of tax | 1,113 | (35) |
Realized gain loss on foreign currency hedges, net of tax | 706 | 402 |
Realized gain loss on interest rate swap hedges, net of tax | (69) | |
Foreign currency translation gain (loss) | 6,536 | 18,760 |
Total Net-of-Tax Amount, End | $ (7,714) | $ 20,497 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) | Mar. 31, 2017 | Dec. 30, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts assets | $ 332,000 | |
Foreign currency contracts liabilities | $ 2,063,000 | |
Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap assets | 3,780,000 | 3,482,000 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts assets | 0 | |
Foreign currency contracts liabilities | 0 | |
Fair Value, Inputs, Level 1 [Member] | Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap assets | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts assets | 332,000 | |
Foreign currency contracts liabilities | 2,063,000 | |
Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap assets | 3,780,000 | 3,482,000 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts assets | 0 | |
Foreign currency contracts liabilities | 0 | |
Fair Value, Inputs, Level 3 [Member] | Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap assets | $ 0 | $ 0 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2017 | Apr. 01, 2016 | Dec. 30, 2016 | |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Equity method investments, carrying value | $ 22,600,000 | $ 22,800,000 | |
Goodwill impairment loss | 0 | $ 0 | |
Indefinite-lived intangible assets (excluding goodwill) impairment loss | 0 | 0 | |
Cost-method investment impairment loss | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Gain on cost method and equity method investments | $ 400,000 | $ 1,300,000 | |
Chinese Venture Capital Fund [Member] | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Equity method investment ownership (percent) | 7.10% |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2017Segment | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 2 |
Segment Information (Reconcilia
Segment Information (Reconciliation of Revenue from Segments to Consolidated) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Apr. 01, 2016 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total sales | $ 345,413 | $ 332,238 |
Operating Segments [Member] | Medical Segment [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total sales | 334,067 | 320,566 |
Operating Segments [Member] | Medical Segment [Member] | Cardio And Vascular [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total sales | 125,108 | 113,671 |
Operating Segments [Member] | Medical Segment [Member] | Cardiac Neuromodulation [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total sales | 103,813 | 108,533 |
Operating Segments [Member] | Medical Segment [Member] | Advanced Surgical, Orthopedics, and Portable Medical [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total sales | 105,146 | 98,362 |
Operating Segments [Member] | Non-Medical Segment [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total sales | $ 11,346 | $ 11,672 |
Segment Information (Reconcil70
Segment Information (Reconciliation of Operating Profit (Loss) from Segments to Consolidated) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Apr. 01, 2016 | |
Segment Reporting Information [Line Items] | ||
Operating income | $ 26,545 | $ 11,134 |
Unallocated expenses, net | (30,740) | (23,896) |
Loss before provision (benefit) for income taxes | (4,195) | (12,762) |
Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating income | 51,922 | 30,830 |
Operating Segments [Member] | Medical Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating income | 50,360 | 31,841 |
Operating Segments [Member] | Non-Medical Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating income | 1,562 | (1,011) |
Segment Reconciling Items [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating income | $ (25,377) | $ (19,696) |
Impact of Recently Issued Acc71
Impact of Recently Issued Accounting Standards (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Dec. 30, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative effect adjustment of the adoption of ASU 2016-09 | $ (510) | |
Share-based compensation expense related to ASU 2016-09 adoption | $ 600 | |
Retained Earnings [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative effect adjustment of the adoption of ASU 2016-09 | 302 | |
Retained Earnings [Member] | Accounting Standards Update 2016-09 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative effect adjustment of the adoption of ASU 2016-09 | $ 300 |