Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 30, 2018 | May 01, 2018 | |
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. 30, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-28 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 32,013,674 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - Unaudited - USD ($) $ in Thousands | Mar. 30, 2018 | Dec. 29, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 29,488 | $ 44,096 |
Accounts receivable, net of allowance for doubtful accounts of $0.7 million and $0.8 million, respectively | 242,218 | 242,456 |
Inventories | 239,490 | 227,534 |
Refundable income taxes | 494 | 37 |
Prepaid expenses and other current assets | 17,071 | 17,786 |
Total current assets | 528,761 | 531,909 |
Property, plant and equipment, net | 367,664 | 370,375 |
Goodwill | 995,200 | 990,238 |
Other intangible assets, net | 914,398 | 920,393 |
Deferred income taxes | 4,388 | 4,152 |
Other assets | 36,647 | 31,278 |
Total assets | 2,847,058 | 2,848,345 |
Current liabilities: | ||
Current portion of long-term debt | 32,813 | 30,469 |
Accounts payable | 104,372 | 83,517 |
Income taxes payable | 12,549 | 13,477 |
Accrued expenses | 74,992 | 81,540 |
Total current liabilities | 224,726 | 209,003 |
Long-term debt | 1,528,944 | 1,578,696 |
Deferred income taxes | 150,578 | 145,364 |
Other long-term liabilities | 22,421 | 21,901 |
Total liabilities | 1,926,669 | 1,954,964 |
Stockholders’ equity: | ||
Common stock, $0.001 par value; 100,000,000 shares authorized; 32,138,402 and 31,977,953 shares issued, respectively; 32,011,286 and 31,871,427 shares outstanding, respectively | 32 | 32 |
Additional paid-in capital | 673,106 | 669,756 |
Treasury stock, at cost, 127,116 and 106,526 shares, respectively | (5,964) | (4,654) |
Retained earnings | 184,186 | 176,068 |
Accumulated other comprehensive income | 69,029 | 52,179 |
Total stockholders’ equity | 920,389 | 893,381 |
Total liabilities and stockholders’ equity | $ 2,847,058 | $ 2,848,345 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets - Unaudited (Parenthetical) - USD ($) $ in Millions | Mar. 30, 2018 | Dec. 29, 2017 |
Current assets: | ||
Allowance for doubtful accounts | $ 0.7 | $ 0.8 |
Stockholders’ equity: | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 32,138,402 | 31,977,953 |
Common stock, shares outstanding | 32,011,286 | 31,871,427 |
Treasury stock, shares | 127,116 | 106,526 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income - Unaudited - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 30, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||
Sales | $ 381,745 | $ 345,413 |
Cost of sales | 285,975 | 254,187 |
Gross profit | 95,770 | 91,226 |
Operating expenses: | ||
Selling, general and administrative expenses | 41,238 | 39,499 |
Research, development and engineering costs | 14,538 | 13,411 |
Other operating expenses | 5,277 | 11,771 |
Total operating expenses | 61,053 | 64,681 |
Operating income | 34,717 | 26,545 |
Interest expense | 26,445 | 28,893 |
(Gain) loss on cost and equity method investments, net | (4,970) | 398 |
Other loss, net | 1,033 | 1,449 |
Income (loss) before income taxes | 12,209 | (4,195) |
Provision for income taxes | 4,091 | 144 |
Net income (loss) | $ 8,118 | $ (4,339) |
Earnings (loss) per share: | ||
Basic (in dollars per share) | $ 0.25 | $ (0.14) |
Diluted (in dollars per share) | $ 0.25 | $ (0.14) |
Weighted average shares outstanding: | ||
Basic (in shares) | 31,902 | 31,016 |
Diluted (in shares) | 32,423 | 31,016 |
Comprehensive Income | ||
Net income (loss) | $ 8,118 | $ (4,339) |
Foreign currency translation gain | 13,441 | 6,536 |
Net change in cash flow hedges, net of tax | 3,409 | 1,750 |
Other comprehensive income | 16,850 | 8,286 |
Comprehensive income | $ 24,968 | $ 3,947 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - Unaudited - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 8,118 | $ (4,339) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 26,334 | 24,606 |
Debt related amortization included in interest expense | 2,871 | 3,437 |
Stock-based compensation | 3,222 | 4,669 |
Non-cash (gain) loss on cost and equity method investments | (4,970) | 398 |
Other non-cash losses | 123 | 1,101 |
Deferred income taxes | 3,181 | (1,753) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 1,008 | (8,700) |
Inventories | (11,442) | (5,956) |
Prepaid expenses and other current assets | 2,810 | 1,853 |
Accounts payable | 22,466 | 13,146 |
Accrued expenses | (6,031) | 4,401 |
Income taxes | (1,568) | 5,762 |
Net cash provided by operating activities | 46,122 | 38,625 |
Cash flows from investing activities: | ||
Acquisition of property, plant and equipment | (10,959) | (12,787) |
Proceeds from Sale of Property, Plant, and Equipment | 898 | 459 |
Purchase of cost and equity method investments | 0 | (260) |
Net cash used in investing activities | (10,061) | (12,588) |
Cash flows from financing activities: | ||
Principal payments of long-term debt | (50,032) | (79,151) |
Proceeds from issuance of long-term debt | 0 | 50,000 |
Proceeds from the exercise of stock options | 1,006 | 7,449 |
Payment of debt issuance costs | 0 | (1,789) |
Withholding tax paid related to stock-based compensation | (2,188) | 0 |
Net cash used in financing activities | (51,214) | (23,491) |
Effect of foreign currency exchange rates on cash and cash equivalents | 545 | 219 |
Net increase (decrease) in cash and cash equivalents | (14,608) | 2,765 |
Cash and cash equivalents, beginning of period | 44,096 | 52,116 |
Cash and cash equivalents, end of period | 29,488 | 54,881 |
Noncash investing and financing activities: | ||
Property, plant and equipment purchases included in accounts payable | $ 2,007 | $ 3,243 |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Stockholders' Equity - Unaudited - 3 months ended Mar. 30, 2018 - 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] |
Balance, shares at Dec. 29, 2017 | 31,978 | 107 | ||||
Balance at Dec. 29, 2017 | $ 893,381 | $ 32 | $ 669,756 | $ (4,654) | $ 176,068 | $ 52,179 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 8,118 | 8,118 | ||||
Other comprehensive income, net | 16,850 | 16,850 | ||||
Stock-based compensation | 3,222 | 3,222 | ||||
Net shares issued, shares | 160 | (20) | ||||
Net shares issued | (1,182) | $ 0 | 128 | $ (1,310) | ||
Balance, shares at Mar. 30, 2018 | 32,138 | 127 | ||||
Balance at Mar. 30, 2018 | $ 920,389 | $ 32 | $ 673,106 | $ (5,964) | $ 184,186 | $ 69,029 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 30, 2018 | |
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. 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. 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 29, 2017 . The Company utilizes a fifty-two, fifty-three week fiscal year ending on the Friday nearest December 31. The first quarter of 2018 and 2017 each contained 13 weeks and ended on March 30, and March 31, respectively. The Company’s 2018 and 2017 fiscal years will end or ended on December 28, 2018 and December 29, 2017, respectively. |
Inventories
Inventories | 3 Months Ended |
Mar. 30, 2018 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories are comprised of the following (in thousands): March 30, December 29, Raw materials $ 96,405 $ 97,615 Work-in-process 104,612 92,650 Finished goods 38,473 37,269 Total $ 239,490 $ 227,534 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, Net | 3 Months Ended |
Mar. 30, 2018 | |
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 reportable segment for the quarter ended March 30, 2018 were as follows (in thousands): Medical Non- Medical Total December 29, 2017 $ 973,238 $ 17,000 $ 990,238 Foreign currency translation 4,962 — 4,962 March 30, 2018 $ 978,200 $ 17,000 $ 995,200 Intangible Assets Intangible assets at March 30, 2018 and December 29, 2017 were as follows (in thousands): Gross Carrying Amount Accumulated Amortization Foreign Currency Translation Net Carrying Amount March 30, 2018 Definite-lived: Purchased technology and patents $ 256,719 $ (121,802 ) $ 3,432 $ 138,349 Customer lists 759,987 (95,149 ) 20,872 685,710 Other 4,534 (7,809 ) 3,326 51 Total $ 1,021,240 $ (224,760 ) $ 27,630 $ 824,110 Indefinite-lived: Trademarks and tradenames $ 90,288 December 29, 2017 Definite-lived: Purchased technology and patents $ 256,719 $ (117,695 ) $ 2,483 $ 141,507 Customer lists 759,987 (87,555 ) 16,103 688,535 Other 4,534 (7,797 ) 3,326 63 Total $ 1,021,240 $ (213,047 ) $ 21,912 $ 830,105 Indefinite-lived: Trademarks and tradenames $ 90,288 Aggregate intangible asset amortization expense is comprised of the following (in thousands): Three Months Ended March 30, March 31, Cost of sales $ 4,068 $ 4,084 Selling, general and administrative expenses 7,606 6,758 Research, development and engineering costs 39 136 Total intangible asset amortization expense $ 11,713 $ 10,978 Estimated future intangible asset amortization expense based on the carrying value as of March 30, 2018 is as follows (in thousands): 2018 2019 2020 2021 2022 After 2022 Amortization Expense $ 33,872 $ 45,724 $ 46,349 $ 45,470 $ 43,430 $ 609,265 |
Debt
Debt | 3 Months Ended |
Mar. 30, 2018 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Long-term debt is comprised of the following (in thousands): March 30, December 29, Senior secured term loan A $ 328,125 $ 335,157 Senior secured term loan B 830,286 873,286 9.125% senior notes due 2023 360,000 360,000 Revolving line of credit 74,000 74,000 Unamortized discount on term loan B and debt issuance costs (30,654 ) (33,278 ) Total debt 1,561,757 1,609,165 Current portion of long-term debt (32,813 ) (30,469 ) Total long-term debt $ 1,528,944 $ 1,578,696 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. 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 30, 2018 , the Company had $74 million of outstanding borrowings on the Revolving Credit Facility and an available borrowing capacity of $116.8 million after giving effect to $9.2 million of outstanding standby letters of credit. As of March 30, 2018 , the weighted average interest rate on all outstanding borrowings under the Revolving Credit Facility was 5.10% . 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 30, 2018 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 2.25% or (ii) the applicable LIBOR rate plus 3.25% , with LIBOR subject to a 1.00% floor. As of March 30, 2018 , the interest rates on the TLA Facility and TLB Facility were 5.13% and 4.99% , respectively. Additionally, if the Company receives both (a) a public corporate family credit rating from Moody’s Investors Services, Inc. of “B2” (stable outlook) or higher and (b) a public corporate credit rating from Standard & Poor’s Financial Services LLC of “B” (stable outlook) or higher, the interest rate margins for the TLB Facility will step down by an additional 25 basis points. 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 30, 2018 , the estimated fair value of the TLB Facility was approximately $839 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 30, 2018 based upon the debt being variable rate in nature. (4.) DEBT (Continued) Covenants The Revolving Credit Facility and TLA Facility contain covenants requiring (A) a maximum Total Net Leverage Ratio of 6.0 :1.00, subject to periodic step downs beginning in the third 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 2.75 :1.00 subject to a step up beginning in the first quarter of 2019. As of March 30, 2018 , the Company was in compliance with these financial covenants. The TLB Facility does not contain any financial maintenance 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 30, 2018 , 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. 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”). All of the Senior Notes are outstanding as of March 30, 2018 . As of March 30, 2018 , the estimated fair value of the Senior Notes was approximately $390 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, as a result of which the Senior Notes and any unpaid interest would become due and payable. As of March 30, 2018 , 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 2018 and the next four years and thereafter, excluding any discounts or premiums, as of March 30, 2018 are as follows (in thousands): 2018 2019 2020 2021 2022 After 2022 Future minimum principal payments $ 23,437 $ 37,500 $ 111,500 $ 229,688 $ 830,286 $ 360,000 Debt Issuance Costs and Discounts The change in deferred debt issuance costs related to the Revolving Credit Facility is as follows (in thousands): December 29, 2017 $ 2,808 Amortization during the period (247 ) March 30, 2018 $ 2,561 (4.) DEBT (Continued) 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 29, 2017 $ 26,889 $ 6,389 $ 33,278 Write-off of debt issuance costs and unamortized discount (1) (745 ) (312 ) (1,057 ) Amortization during the period (1,279 ) (288 ) (1,567 ) March 30, 2018 $ 24,865 $ 5,789 $ 30,654 (1) The Company prepaid portions of its TLB Facility during 2018 and 2017. The Company recognized losses from extinguishment of debt during the quarters ended March 30, 2018 and March 31, 2017 of $1.1 million and $1.6 million , respectively, which is included in Interest Expense in the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income. The loss from extinguishment of debt represents the portion of the unamortized discount and debt issuance costs related to the portion of the TLB Facility that was prepaid. Interest Rate Swap During 2016, the Company entered into 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 swap is being accounted for as a cash flow hedge. Information regarding the Company’s outstanding interest rate swap designated as a cash flow hedge as of March 30, 2018 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 % 1.8750 % $ 5,544 Other Long-Term Assets The estimated fair value of the interest rate swap agreement represents the amount the Company would receive (pay) to terminate the contract. No portion of the change in fair value of the Company’s interest rate swap during the quarters ended March 30, 2018 and March 31, 2017 was considered ineffective. The amounts recorded to Interest Expense during the quarters ended March 30, 2018 and March 31, 2017 related to the Company’s interest rate swap were a reduction of $0.2 million and $0.1 million , respectively. The estimated Accumulated Other Comprehensive Income related to the Company’s interest rate swaps that is expected to be reclassified into earnings within the next twelve months is a $2.0 million gain. |
Benefit Plans
Benefit Plans | 3 Months Ended |
Mar. 30, 2018 | |
Defined Benefit Plan [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. Components of net defined benefit cost for these plans were comprised of the following (in thousands): Three Months Ended March 30, March 31, Service cost $ 127 $ 110 Interest cost 46 38 Amortization of net loss 16 17 Expected return on plan assets (4 ) (4 ) Net defined benefit cost $ 185 $ 161 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 30, 2018 | |
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 awards (“RSAs”), 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 30, March 31, Stock options $ 331 $ 710 RSAs and RSUs (time-based) 2,078 2,204 Performance-based RSUs (“PSUs”) 813 1,755 Total stock-based compensation expense $ 3,222 $ 4,669 Cost of sales $ 220 $ 142 Selling, general and administrative expenses 2,965 2,159 Research, development and engineering costs 33 105 Other operating expenses 4 2,263 Total stock-based compensation expense $ 3,222 $ 4,669 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 per the terms of his contract, which was classified as Other Operating Expenses. The weighted average fair value and assumptions used to value options granted are as follows: Three Months Ended March 30, March 31, Weighted average fair value $ 14.89 $ 9.14 Risk-free interest rate 2.21 % 1.63 % Expected volatility 39 % 38 % Expected life (in years) 4.0 3.7 Expected dividend yield — % — % 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 29, 2017 931,353 $ 30.89 Granted 28,447 45.13 Exercised (27,322 ) 36.81 Forfeited or expired (818 ) 48.43 Outstanding at March 30, 2018 931,660 $ 31.14 5.7 $ 23.7 Exercisable at March 30, 2018 777,521 $ 30.03 5.0 $ 20.6 (6.) STOCK-BASED COMPENSATION (Continued) During the three months ended March 30, 2018 , the Company awarded grants of 0.3 million RSUs to certain members of management, of which 0.2 million are performance-based RSUs (“PSUs”) and the remainder are time-based RSUs that vest over three years. Of the PSUs, 0.1 million of the shares subject to each grant will be earned based upon achievement of specific Company performance metrics over a three -year performance period ending January 1, 2021, 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 three -year performance period ending January 1, 2021. 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 grant-date fair value of the TSR portion of the PSUs granted during the three months ended March 30, 2018 was determined using the Monte Carlo simulation model on the date of grant, assuming the following (i) expected term of 2.92 years , (ii) risk free interest rate of 2.28% , (iii) expected dividend yield of 0.0% and (iv) expected stock price volatility over the expected term of the TSR award of 40% . 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 RSA and RSU activity: Time-Vested Activity Weighted Average Fair Value Nonvested at December 29, 2017 163,431 $ 35.96 Granted 147,878 49.30 Vested (11,999 ) 49.78 Forfeited (4,453 ) 43.62 Nonvested at March 30, 2018 294,857 $ 41.97 The following table summarizes PSU activity: Performance- Vested Activity Weighted Average Fair Value Nonvested at December 29, 2017 469,889 $ 32.37 Granted 159,669 45.37 Vested (127,191 ) 34.29 Forfeited (129,311 ) 33.36 Nonvested at March 30, 2018 373,056 $ 36.93 |
Other Operating Expenses, Net
Other Operating Expenses, Net | 3 Months Ended |
Mar. 30, 2018 | |
Other Income and Expenses [Abstract] | |
OTHER OPERATING EXPENSES, NET | OTHER OPERATING EXPENSES Other Operating Expenses is comprised of the following (in thousands): Three Months Ended March 30, March 31, Strategic reorganization and alignment $ 3,492 $ — Manufacturing alignment to support growth 513 — Consolidation and optimization initiatives 605 2,395 Acquisition and integration expenses — 4,820 Asset dispositions, severance and other 667 4,556 Total other operating expenses $ 5,277 $ 11,771 (7.) OTHER OPERATING EXPENSES (Continued) Strategic Reorganization and Alignment During the fourth quarter of 2017, the Company began to take steps to better align its resources in order to enhance the profitability of its portfolio of products. This includes improving its business processes and redirecting investments away from projects where the market does not justify the investment, as well as aligning resources with market conditions and the Company’s future strategic direction. The Company estimates that it will incur aggregate pre-tax charges in connection with the strategic reorganization and alignment plan of between approximately $10 million to $12 million , of which an estimated $8 million to $12 million are expected to result in cash outlays. During the three months ended March 30, 2018 , the Company incurred charges relating to this initiative which primarily included severance and personnel related costs for terminated employees and fees for professional services. These expenses were primarily recorded within the Medical Segment. As of March 30, 2018 , total expense incurred for this initiative since inception was $9.4 million . These actions are expected to be substantially completed by the end of the second quarter of 2018. Manufacturing Alignment to Support Growth In 2017, the Company initiated several initiatives designed to reduce costs, improve operating efficiencies and increase manufacturing capacity to accommodate growth. The plan involves the relocation of certain manufacturing operations and expansion of certain of the Company's facilities. The Company estimates that it will incur aggregate pre-tax restructuring related charges in connection with the realignment plan of between approximately $9 million to $11 million , the majority of which are expected to be cash expenditures, and capital expenditures of between approximately $4 million to $6 million . Costs related to the Company’s manufacturing alignment to support growth initiative were primarily recorded within the Medical Segment. As of March 30, 2018 , total expense incurred for this initiative since inception was $0.9 million . These actions are expected to be substantially completed by the end of 2019. Consolidation and Optimization Initiatives In 2014, the Company initiated plans to transfer certain manufacturing functions performed at its facility in Beaverton, OR to a new facility in Tijuana, Mexico. Additionally, during 2016, the Company announced it would be closing its facility in Clarence, NY after transferring the machined component product lines manufactured in that facility to other Integer locations in the U.S. Costs related to the Company’s consolidation and optimization initiatives were primarily recorded within the Medical Segment. The Company does not expect to incur any material additional costs associated with these activities as they were substantially completed as of March 30, 2018. The following table summarizes the change in accrued liabilities related to the initiatives described above (in thousands): Severance and Retention Other Total December 29, 2017 $ 1,308 $ — $ 1,308 Restructuring charges 3,274 1,336 4,610 Cash payments (3,136 ) (897 ) (4,033 ) March 30, 2018 $ 1,446 $ 439 $ 1,885 Acquisition and Integration Expenses The Company did not incur any additional costs associated with these activities during the three months ended March 30, 2018 . During the three months ended March 31, 2017 , the Company incurred $4.8 million 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. The $0.4 million of acquisition and integration costs accrued as of December 29, 2017 were paid during the three months ended March 30, 2018 . These projects were completed as of December 29, 2017. Asset Dispositions, Severance and Other During the first quarter of 2018 and 2017, the Company recorded losses in connection with various asset disposals and/or write-downs. The 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. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 30, 2018 | |
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. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “Tax Reform Act”) was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017, the transition of U.S international taxation from a worldwide tax system to a territorial system, and a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017. Under GAAP, the effect of a change in tax laws or rates to be recognized in income from continuing operations for the period that includes the enactment date. As such, the Company recognized an estimate of the impact of the Tax Reform Act in the year ended December 29, 2017. The Company had an estimated $147.5 million of undistributed foreign earnings and profit subject to the deemed mandatory repatriation as of December 29, 2017 and recognized a provisional $14.7 million in 2017 for the one-time transition tax. The Company has sufficient U.S. net operating losses to offset cash tax liabilities associated with the repatriation tax. In addition, as a result of the reduction in the U.S. corporate income tax rate from 35% to 21% under the Tax Reform Act, the Company revalued its ending net deferred tax liabilities at December 29, 2017 and recognized a $56.5 million tax benefit in the Company’s Consolidated Statement of Operations and Comprehensive Income (Loss) for the year ended December 29, 2017. For further discussion of the impact of the Tax Reform Act for the year ended December 29, 2017 reference is made to Note 12 of the Company’s consolidated financial statements as of and for the year ended December 29, 2017 included in the Company’s 2017 Annual Report on Form 10-K for the year ended December 29, 2017 . On December 22, 2017, the Securities and Exchange Commission issued Staff Accounting Bulletin (“SAB”) No. 118 to address the application of GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Reform Act. The Company recognized the tax impact of the revaluation of deferred tax assets and liabilities and the provisional tax impact related to deemed repatriated earnings and included these amounts in its consolidated financial statements for the year ended December 29, 2017. The ultimate impact may differ from the provisional amount, possibly materially, due to, among other things, additional analysis, changes in interpretations and assumptions the Company has made, additional regulatory guidance that may be issued, and actions the Company may take as a result of the Tax Reform Act. This accounting is expected to be complete by the date that the Company’s 2017 U.S. corporate income tax return is filed in 2018. During the three month period ended March 30, 2018, there were no changes made to the provisional amount recorded in 2017. In addition to the reduction of the U.S. federal corporate tax rate and the one-time transition tax discussed above, the Tax Reform Act also established new tax laws that affect 2018, including, but not limited to: (i) a general elimination of U.S. federal income taxes on dividends from foreign subsidiaries; (ii) a new U.S. Income inclusion on certain earnings of foreign subsidiaries (Global Intangible Low-Taxed Income (“GILTI”)); (iii) the repeal of the domestic production activity deductions; (iv) limitations on the deductibility of certain executive compensation; (v) an elimination of the deduction for certain deemed “base erosion payments” made to foreign affiliates (Base Erosion and Anti-Abuse Tax (“BEAT”)); and (vi) a new provision that allows a domestic corporation an immediate deduction for a portion of its foreign derived intangible income (“FDII”). (8.) INCOME TAXES (Continued) The GILTI provisions require the Company to include foreign subsidiary earnings in excess of a deemed return on the foreign subsidiary’s tangible assets in its U.S. income tax return. The Company expects that it will be subject to incremental U.S. tax on GILTI income beginning in 2018. Because of the complexity of the new GILTI tax rules and the ongoing regulatory interpretation of the GILTI provisions, the Company is continuing its evaluation of this provision of the Tax Reform Act and the application of ASC 740, Income Taxes . Under GAAP, the Company is allowed to make an accounting policy choice of either (1) treating taxes due on future U.S. inclusions in taxable income related to GILTI as a current period expense when incurred (the “period cost method”) or (2) factoring such amounts into the Company's measurement of its deferred taxes (the “deferred method”). The Company's selection of an accounting policy with respect to the new GILTI tax rules will depend, in part, on analyzing its global income to determine whether it expects to have future U.S. inclusions in taxable income related to GILTI and, if so, what the impact is expected to be. Whether the Company expects to have future U.S. inclusions in taxable income related to GILTI depends on not only the Company's current structure and estimated future results of global operations, but also its intent and ability to modify its structure. While the Company has included an estimate of GILTI in its estimated effective tax rate for 2018, it has not finalized its analysis and is not yet able to determine which method to elect. Adjustments related to the amount of GILTI Tax recorded in its condensed consolidated financial statements may be required based on the outcome of this election. The BEAT provisions in the Tax Reform Act eliminate the deduction of certain base-erosion payments made to related foreign corporations, and impose a minimum tax if greater than regular tax. The Company does not expect to be materially impacted by the BEAT or FDII provisions and has not included any impact of the provisions in its estimated effective tax rate for 2018, however, it is still in the process of analyzing the effect of these provisions of the Tax Reform Act. The Company’s worldwide effective tax rate for the first quarter of 2018 was 33.5% on $12.2 million of income before the provision for income taxes compared to (3.4)% on $4.2 million of losses before the provision for income taxes for the same period in 2017. The 2018 estimated annual effective tax rate includes the estimated impact of all Tax Reform Act provisions. The Company’s effective tax rate for 2018 differs from the U.S. federal statutory tax rate of 21% due principally to the estimated impact of the GILTI tax. The Company’s earnings outside the United States are generally taxed at blended rates that are marginally lower than the U.S. federal rate. The GILTI provisions require the Company to include foreign subsidiary earnings in excess of a deemed return on the foreign subsidiary’s tangible assets in its U.S. income tax return. There is a statutory deduction of 50% of the GILTI inclusion, however the deduction is subject to limitations based on U.S. taxable income. The Company currently has net operating losses to offset forecasted U.S. taxable income and as such, is temporarily subject to the deduction limitation which correspondingly imposes an incremental impact on U.S. income tax. The foreign jurisdictions in which the Company operates and where its foreign earnings are primarily derived, include Switzerland, Mexico, Germany, Uruguay, Malaysia and Ireland. The Company’s effective tax rate for 2017 differs from the U.S. federal statutory tax rate of 35% due principally to the Company’s earnings outside the U.S. which are generally taxed at rates lower than the U.S. federal rate. In addition, the Company had positive income before taxes in its foreign jurisdictions but losses before taxes in U.S. jurisdictions. As of March 30, 2018 , the balance of unrecognized tax benefits is approximately $12.7 million . It is reasonably possible that a reduction of up to $1.1 million of the balance of unrecognized tax benefits may occur within the next twelve months as a result of potential audit settlements. Approximately $12.3 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. 30, 2018 | |
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. (9.) COMMITMENTS AND CONTINGENCIES 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 two Integer patents and awarded Integer $37.5 million in damages. Following a second trial in August 2017, a jury found that AVX infringed an additional Integer patent. On March 30, 2018, the U.S. District Court for the District of Delaware vacated the original damage award and ordered a retrial on damages, which is scheduled for January 2019. 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 29, 2017 $ 4,745 Additions to warranty reserve 256 Warranty claims settled (69 ) March 30, 2018 $ 4,932 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. Accordingly, the effective portions of the unrealized gains and losses on these contracts are reported in Accumulated Other Comprehensive Income in the Condensed Consolidated Balance Sheets and are reclassified to earnings in the same periods during which the hedged transactions affect earnings. The estimated Accumulated Other Comprehensive Income related to the Company’s foreign currency contracts that is expected to be reclassified into earnings within the next twelve months is a $2.2 million loss. The impact to the Company’s results of operations from its forward contract hedges is as follows (in thousands): Three Months Ended March 30, March 31, Increase in sales $ 139 $ 24 Increase (decrease) in cost of sales (436 ) 1,062 Ineffective portion of change in fair value — — Information regarding outstanding foreign currency contracts designated as cash flow hedges as of March 30, 2018 is as follows (dollars in thousands): Aggregate Notional Amount Start Date End Date $/Foreign Currency Fair Value Balance Sheet Location $ 2,313 Jan 2018 Jun 2018 0.0514 Peso $ 142 Prepaid expenses and other current assets 22,798 Jan 2018 Dec 2018 0.0507 Peso 1,403 Prepaid expenses and other current assets 21,900 Jan 2018 Dec 2018 1.2089 Euro 644 Prepaid expenses and other current assets |
Earnings (Loss) Per Share (EPS)
Earnings (Loss) Per Share (EPS) | 3 Months Ended |
Mar. 30, 2018 | |
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 30, March 31, Numerator for basic and diluted EPS: Net income (loss) $ 8,118 $ (4,339 ) Denominator for basic EPS: Weighted average shares outstanding 31,902 31,016 Effect of dilutive securities: Stock options, restricted stock and RSUs 521 — Denominator for diluted EPS 32,423 31,016 Basic EPS $ 0.25 $ (0.14 ) Diluted EPS $ 0.25 $ (0.14 ) 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 30, March 31, Time-vested stock options, restricted stock and RSUs 150 1,700 Performance-vested restricted stock and PSUs 182 593 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME Accumulated Other Comprehensive Income 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 29, 2017 $ (1,422 ) $ 3,418 $ 50,200 $ 52,196 $ (17 ) $ 52,179 Unrealized gain on cash flow hedges — 5,124 — 5,124 (1,076 ) 4,048 Realized gain on foreign currency hedges — (575 ) — (575 ) 121 (454 ) Realized gain on interest rate swap hedges — (234 ) — (234 ) 49 (185 ) Foreign currency translation gain — — 13,441 13,441 — 13,441 March 30, 2018 $ (1,422 ) $ 7,733 $ 63,641 $ 69,952 $ (923 ) $ 69,029 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 ) The realized loss (gain) relating to the Company’s foreign currency hedges were reclassified from Accumulated Other Comprehensive Income 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 and included in Interest Expense as interest on the corresponding debt being hedged is accrued. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 30, 2018 | |
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. The Company also holds cost method and equity method investments which are measured at fair value on a nonrecurring 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 9 “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 swap counterparty to verify the reasonableness of the Company’s estimate. Refer to Note 4 “Debt” for further discussion regarding the fair value of the Company’s interest rate swap. 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 30, 2018 Assets: Foreign currency contracts (Note 9) $ 2,189 $ — $ 2,189 $ — Assets: Interest rate swap (Note 4) 5,544 — 5,544 — December 29, 2017 Assets: Interest rate swaps $ 4,279 $ — $ 4,279 $ — Liabilities: Foreign currency contracts 861 — 861 — 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 4 “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 method 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 method investments are 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. The aggregate recorded amount of cost and equity method investments at March 30, 2018 and December 29, 2017 was $25.8 million and $20.8 million , respectively. (12.) FAIR VALUE MEASUREMENTS (Continued) As of March 30, 2018 and December 29, 2017 , the recorded amount of the Company’s equity method investment was $18.8 million and $13.8 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 30, 2018 , the Company owned 6.6% of this fund. During the three months ended March 30, 2018 and March 31, 2017 , the Company recognized a net gain of $5.0 million and a net loss of $0.4 million , respectively, on its equity method investment. The Company’s recorded amount of cost method investments was $7.0 million at March 30, 2018 and December 29, 2017. The Company did not recognize any impairment charges related to cost method investments during the three months ended March 30, 2018 and March 31, 2017 . 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 and categorized in Level 2 of the fair value hierarchy. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 30, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company organizes its business into two reportable segments: (1) Medical and (2) Non-Medical. This segment structure reflects the financial information and reports used by the Company’s management, specifically its Chief Operating Decision Maker (“CODM”), to make decisions regarding the Company’s business, including resource allocations and performance assessments. This segment structure reflects the Company’s current operating focus in compliance with ASC 280, Segment Reporting . There were no sales between segments during the three months ended March 30, 2018 and March 31, 2017 . The following table presents sales by product line (in thousands). Three Months Ended March 30, March 31, Segment sales by product line: Medical Cardio & Vascular $ 138,348 $ 125,108 Cardiac & Neuromodulation 108,910 103,813 Advanced Surgical, Orthopedics & Portable Medical 121,775 105,146 Total Medical 369,033 334,067 Non-Medical 12,712 11,346 Total sales $ 381,745 $ 345,413 The following table presents income from operations for the Company’s reportable segments (in thousands). Three Months Ended March 30, March 31, Segment income from operations: Medical $ 52,127 $ 50,360 Non-Medical 3,198 1,562 Total segment income from operations 55,325 51,922 Unallocated operating expenses (20,608 ) (25,377 ) Operating income 34,717 26,545 Unallocated expenses, net (22,508 ) (30,740 ) Income (loss) before income taxes $ 12,209 $ (4,195 ) |
Revenue From Contracts With Cus
Revenue From Contracts With Customers | 3 Months Ended |
Mar. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE FROM CONTRACTS WITH CUSTOMERS The majority of the Company’s revenues consist of sales of various medical devices and products to large, multinational OEMs and their affiliated subsidiaries. The Company considers the customer’s purchase order, which in some cases is governed by a long-term agreement, and the Company’s corresponding sales order acknowledgment as the contract with the customer. The Company has elected to adopt the practical expedient provided in ASC 340-40-25-4 and recognize the incremental costs of obtaining a contract, which are primarily sales commissions, as expense when incurred because the amortization period is less than one year. Performance Obligations The Company considers each shipment of an individual product included on a purchase order to be a separate performance obligation, as each shipment is separately identifiable and the customer can benefit from each individual product separately from the other products included on the purchase order. Accordingly, a contract can have one or more performance obligations to manufacture products. Standard payment terms range from 30 to 90 days and can include a discount for early payment. The Company does not offer its customers a right of return. Rather, the Company warrants that each unit received by the customer will meet the agreed upon technical and quality specifications and requirements. Only when the delivered units do not meet these requirements can the customer return the non-compliant units as a corrective action under the warranty. The remedy offered to the customer is repair of the returned units or replacement if repair is not viable. Accordingly, the Company records a warranty reserve and any warranty activities are not considered to be a separate performance obligation. Historically, warranty reserves have not been material. Transaction Price Generally, the transaction price of the Company’s contracts consists of a unit price for each individual product included in the contract, which can be fixed or variable based on the number of units ordered. In some instances, the transaction price also includes a rebate for meeting certain volume-based targets over a specified period of time. The transaction price of a contract is determined based on the unit price and the number of units ordered, reduced by the rebate expected to be earned on those units. Rebates are estimated based on the expected achievement of the volume-based target using the most likely amount method and updated quarterly. Any adjustments to these estimates are recognized under the cumulative catch-up method, such that impact of the adjustment is recognized in the period in which it is identified. The transaction price is allocated to each performance obligation on a relative standalone selling price basis. As the majority of products sold to customers are manufactured to meet the specific requirements and technical specifications of that customer, the products are considered unique to that customer and the unit price stated in the contract is considered the standalone selling price. The Company has elected to adopt the practical expedient provided in ASC 606-10-50-14 and not disclose the aggregate amount of the transaction price allocated to unsatisfied performance obligations and an expectation of when those amounts are expected to be recognized as revenue because the majority of contracts have an original expected duration of one year or less. Revenue Recognition The Company recognizes revenue at the point in time when a performance obligation is satisfied and the customer has obtained control of the products. Control is defined as the ability to direct the use of and obtain substantially all of the remaining benefits of the product. The customer obtains control of the products when title and risk of ownership transfers to them, which is primarily based upon shipping terms. Accordingly, the majority of the Company’s revenues are recognized at the point of shipment. In instances where title and risk of ownership do not transfer to the customer until the products have reached the customer’s location, revenue is recognized at that point in time. Revenue is recognized net of sales tax, value-added taxes and other taxes. Contract Modifications Contract modifications, which can include a change in either or both scope and price, most often occur related to contracts that are governed by a long-term arrangement. Contract modifications typically relate to the same products already governed by the long-term arrangement, and therefore, are accounted for as part of the existing contract. If a contract modification is for additional products, it is accounted for as a separate contract. (14.) REVENUE FROM CONTRACTS WITH CUSTOMERS (Continued) Disaggregated Revenue In general, the Company's business segmentation is aligned according to the nature and economic characteristics of its products and customer relationships and provides meaningful disaggregation of each business segment's results of operations. For a summary by disaggregated product line sales for each segment, refer to Note 13, “Segment Information.” Additionally, the tables below disaggregate the Company’s revenues based upon significant customers, which are defined as any customer who individually represents 10% or more of a segment’s total revenues, and ship to country, which is defined as any country where 10% or more of a segment’s total revenues are shipped to. The Company believes that these categories best depict how the nature, amount, timing and uncertainty of revenues and cash flows are affected by economic factors. The following table presents revenues by customer for the three months ended March 30, 2018. Customer Medical Non-Medical Customer A 17 % — % Customer B 16 % — % Customer C 15 % — % Customer D — % 19 % Customer E — % 11 % All other customers 52 % 70 % The following table presents revenues by ship to country for the three months ended March 30, 2018. Ship to Location Medical Non-Medical United States 55 % 69 % Puerto Rico 10 % — % Canada — % 11 % All other Countries 35 % 20 % Contract Balances The timing of revenue recognition, billings and cash collections results in billed accounts receivable and less frequently, unearned revenue. Accounts receivable are recorded when the right to consideration becomes unconditional. Unearned revenue is recorded when customers pay or are billed in advance of the Company’s satisfaction of performance obligations. Contract liabilities were $4.4 million and $3.6 million as of March 30, 2018 and December 29, 2017, respectively, and are classified as Accrued Expenses on the Condensed Consolidated Balance Sheets. During the three months ended March 30, 2018, we recognized $0.7 million of revenue that was included in the contract liability balance as of December 29, 2017. The Company does no t have any contract assets. |
Impact of Recently Issued Accou
Impact of Recently Issued Accounting Standards | 3 Months Ended |
Mar. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS | IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS The following table provides a brief description of recent Accounting Standard Updates ("ASU") issued by the Financial Accounting Standards Board ("FASB"): Standard Description Effective Date Effect on the Financial Statements or Other Significant Matters In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The new guidance allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act and will improve the usefulness of information reported to financial statement users. December 29, 2018 (beginning of 2019 fiscal year). Early adoption is permitted. The Company is currently evaluating the impact that the adoption of this ASU will have on its consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities. The new guidance improves the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. December 29, 2018. Early adoption is permitted. The Company does not believe the adoption of this guidance will have a material impact on its consolidated financial statements. In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The new guidance clarifies the presentation and classification of the components of net periodic benefit costs in the consolidated statement of operations. December 30, 2017. The Company adopted the new guidance effective December 30, 2017, the beginning of its 2018 fiscal year, using the retrospective transition method, as part of the FASB's simplification initiative. See Adoption of ASU 2017-07 section below for additional information. In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory. The new guidance requires the income tax consequences of an intra-entity transfer of assets other than inventory to be recognized when the transfer occurs rather than deferring until an outside sale has occurred. December 30, 2017. The Company adopted the new guidance effective December 30, 2017. The adoption of the new guidance did not have a material impact to the Company. In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments. The new guidance clarifies the presentation and classification of certain cash receipts and cash payments in the statement of cash flows. December 30, 2017. The Company adopted the new guidance effective December 30, 2017. The adoption of the new guidance did not have a material impact to the Company. In February 2016, the FASB issued ASU 2016-02, Leases. The new guidance supersedes the lease guidance under ASC Topic 840, Leases , resulting in the creation of FASB ASC Topic 842, Leases . The guidance requires a lessee to recognize in the statement of financial position a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term for both finance and operating leases. December 29, 2018. Early adoption is permitted. The Company is currently evaluating its population of leases, and is continuing to assess all potential impacts of the standard, but currently believes the most significant impact relates to its accounting for real estate operating leases. The Company anticipates recognition of additional assets and corresponding liabilities related to leases upon adoption, but has not yet quantified these at this time. The Company plans to adopt the standard effective December 29, 2018. (15.) IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS (Continued) Standard Description Effective Date Effect on the Financial Statements or Other Significant Matters In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities. The new guidance updates certain aspects of recognition, measurement, presentation and disclosure of financial instruments. December 30, 2017. The Company adopted the new guidance effective December 30, 2017. The adoption of the new guidance did not have a material impact to the Company. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. Since that date, the FASB has issued additional ASUs clarifying certain aspects of ASU 2014-09. The new guidance requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. The new guidance provides alternative methods of adoption. Subsequent guidance issued after May 2014 did not change the core principle of ASU 2014-09. December 30, 2017. The Company adopted the new guidance effective December 30, 2017, using the modified retrospective transition method applied to those contracts which were not completed as of December 30, 2017. Prior period amounts have not been adjusted and continue to be reflected in accordance with the Company’s historical accounting. The adoption of this ASU did not have a material impact on the consolidated financial statements and therefore no cumulative adjustment was recorded to equity. The Company has updated its internal controls for changes and expanded disclosures have been made in the Notes to the Financial Statements as a result of adopting the standard. (See Note 14, “Revenue from Contracts with Customers”). Adoption of ASU 2017-07 On December 30, 2017, we retrospectively adopted the new accounting guidance on presentation of net periodic pension costs (ASU 2017-07). That guidance requires that we disaggregate the service cost component of net benefit costs and report those costs in the same line item or items in the Condensed Consolidated Statements of Operations and Comprehensive Income as other compensation costs arising from services rendered by the pertinent employees during the period. The other non-service components of net benefit costs are required to be presented separately from the service cost component. Following the adoption of this guidance, we continue to record the service cost component of net benefit costs in Cost of Sales and Selling, General and Administrative expenses. The interest cost component of net benefit costs is now recorded in Interest Expense and the remaining components of net benefit costs, amortization of net losses and expected return on plan assets, are now recorded in Other Loss, Net. |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 30, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENT On May 3, 2018, the Company entered into a definitive agreement to sell the Advanced Surgical and Orthopedic product lines within its Medical segment to MedPlast, LLC for $600 million in cash (the “Transaction”). The Company expects to close the Transaction in the third quarter of 2018, subject to regulatory clearance and other customary closing conditions. The net proceeds from the sale are expected to be used to accelerate debt payments to reduce leverage. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 30, 2018 | |
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. 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 29, 2017 . |
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 2018 and 2017 each contained 13 weeks and ended on March 30, and March 31, 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 method or equity method investments, which are classified as Other Assets on the Condensed Consolidated Balance Sheets. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | Inventories are comprised of the following (in thousands): March 30, December 29, Raw materials $ 96,405 $ 97,615 Work-in-process 104,612 92,650 Finished goods 38,473 37,269 Total $ 239,490 $ 227,534 |
Goodwill and Other Intangible25
Goodwill and Other Intangible Assets, Net (Tables) | 3 Months Ended |
Mar. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill by reportable segment for the quarter ended March 30, 2018 were as follows (in thousands): Medical Non- Medical Total December 29, 2017 $ 973,238 $ 17,000 $ 990,238 Foreign currency translation 4,962 — 4,962 March 30, 2018 $ 978,200 $ 17,000 $ 995,200 |
Schedule of Finite-Lived Intangible Assets, Major Class | Intangible assets at March 30, 2018 and December 29, 2017 were as follows (in thousands): Gross Carrying Amount Accumulated Amortization Foreign Currency Translation Net Carrying Amount March 30, 2018 Definite-lived: Purchased technology and patents $ 256,719 $ (121,802 ) $ 3,432 $ 138,349 Customer lists 759,987 (95,149 ) 20,872 685,710 Other 4,534 (7,809 ) 3,326 51 Total $ 1,021,240 $ (224,760 ) $ 27,630 $ 824,110 Indefinite-lived: Trademarks and tradenames $ 90,288 December 29, 2017 Definite-lived: Purchased technology and patents $ 256,719 $ (117,695 ) $ 2,483 $ 141,507 Customer lists 759,987 (87,555 ) 16,103 688,535 Other 4,534 (7,797 ) 3,326 63 Total $ 1,021,240 $ (213,047 ) $ 21,912 $ 830,105 Indefinite-lived: Trademarks and tradenames $ 90,288 |
Schedule of Indefinite-Lived Intangible Assets | Intangible assets at March 30, 2018 and December 29, 2017 were as follows (in thousands): Gross Carrying Amount Accumulated Amortization Foreign Currency Translation Net Carrying Amount March 30, 2018 Definite-lived: Purchased technology and patents $ 256,719 $ (121,802 ) $ 3,432 $ 138,349 Customer lists 759,987 (95,149 ) 20,872 685,710 Other 4,534 (7,809 ) 3,326 51 Total $ 1,021,240 $ (224,760 ) $ 27,630 $ 824,110 Indefinite-lived: Trademarks and tradenames $ 90,288 December 29, 2017 Definite-lived: Purchased technology and patents $ 256,719 $ (117,695 ) $ 2,483 $ 141,507 Customer lists 759,987 (87,555 ) 16,103 688,535 Other 4,534 (7,797 ) 3,326 63 Total $ 1,021,240 $ (213,047 ) $ 21,912 $ 830,105 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 30, March 31, Cost of sales $ 4,068 $ 4,084 Selling, general and administrative expenses 7,606 6,758 Research, development and engineering costs 39 136 Total intangible asset amortization expense $ 11,713 $ 10,978 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated future intangible asset amortization expense based on the carrying value as of March 30, 2018 is as follows (in thousands): 2018 2019 2020 2021 2022 After 2022 Amortization Expense $ 33,872 $ 45,724 $ 46,349 $ 45,470 $ 43,430 $ 609,265 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt is comprised of the following (in thousands): March 30, December 29, Senior secured term loan A $ 328,125 $ 335,157 Senior secured term loan B 830,286 873,286 9.125% senior notes due 2023 360,000 360,000 Revolving line of credit 74,000 74,000 Unamortized discount on term loan B and debt issuance costs (30,654 ) (33,278 ) Total debt 1,561,757 1,609,165 Current portion of long-term debt (32,813 ) (30,469 ) Total long-term debt $ 1,528,944 $ 1,578,696 |
Schedule of Maturities of Long-term Debt | Contractual maturities under the Senior Secured Credit Facilities and Senior Notes for the remainder of 2018 and the next four years and thereafter, excluding any discounts or premiums, as of March 30, 2018 are as follows (in thousands): 2018 2019 2020 2021 2022 After 2022 Future minimum principal payments $ 23,437 $ 37,500 $ 111,500 $ 229,688 $ 830,286 $ 360,000 |
Schedule of Deferred Financing Fees | The change in deferred debt issuance costs related to the Revolving Credit Facility is as follows (in thousands): December 29, 2017 $ 2,808 Amortization during the period (247 ) March 30, 2018 $ 2,561 (4.) DEBT (Continued) 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 29, 2017 $ 26,889 $ 6,389 $ 33,278 Write-off of debt issuance costs and unamortized discount (1) (745 ) (312 ) (1,057 ) Amortization during the period (1,279 ) (288 ) (1,567 ) March 30, 2018 $ 24,865 $ 5,789 $ 30,654 (1) The Company prepaid portions of its TLB Facility during 2018 and 2017. The Company recognized losses from extinguishment of debt during the quarters ended March 30, 2018 and March 31, 2017 of $1.1 million and $1.6 million , respectively, which is included in Interest Expense in the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income. The loss from extinguishment of debt represents the portion of the unamortized discount and debt issuance costs related to the portion of the TLB Facility that was prepaid. |
Schedule of Interest Rate Derivatives | Information regarding the Company’s outstanding interest rate swap designated as a cash flow hedge as of March 30, 2018 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 % 1.8750 % $ 5,544 Other Long-Term Assets |
Benefit Plans (Tables)
Benefit Plans (Tables) | 3 Months Ended |
Mar. 30, 2018 | |
Defined Benefit Plan [Abstract] | |
Schedule of Net Defined Benefit Cost | Components of net defined benefit cost for these plans were comprised of the following (in thousands): Three Months Ended March 30, March 31, Service cost $ 127 $ 110 Interest cost 46 38 Amortization of net loss 16 17 Expected return on plan assets (4 ) (4 ) Net defined benefit cost $ 185 $ 161 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 30, 2018 | |
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 30, March 31, Stock options $ 331 $ 710 RSAs and RSUs (time-based) 2,078 2,204 Performance-based RSUs (“PSUs”) 813 1,755 Total stock-based compensation expense $ 3,222 $ 4,669 Cost of sales $ 220 $ 142 Selling, general and administrative expenses 2,965 2,159 Research, development and engineering costs 33 105 Other operating expenses 4 2,263 Total stock-based compensation expense $ 3,222 $ 4,669 |
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 30, March 31, Weighted average fair value $ 14.89 $ 9.14 Risk-free interest rate 2.21 % 1.63 % Expected volatility 39 % 38 % Expected life (in years) 4.0 3.7 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 29, 2017 931,353 $ 30.89 Granted 28,447 45.13 Exercised (27,322 ) 36.81 Forfeited or expired (818 ) 48.43 Outstanding at March 30, 2018 931,660 $ 31.14 5.7 $ 23.7 Exercisable at March 30, 2018 777,521 $ 30.03 5.0 $ 20.6 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The following table summarizes RSA and RSU activity: Time-Vested Activity Weighted Average Fair Value Nonvested at December 29, 2017 163,431 $ 35.96 Granted 147,878 49.30 Vested (11,999 ) 49.78 Forfeited (4,453 ) 43.62 Nonvested at March 30, 2018 294,857 $ 41.97 The following table summarizes PSU activity: Performance- Vested Activity Weighted Average Fair Value Nonvested at December 29, 2017 469,889 $ 32.37 Granted 159,669 45.37 Vested (127,191 ) 34.29 Forfeited (129,311 ) 33.36 Nonvested at March 30, 2018 373,056 $ 36.93 |
Other Operating Expenses, Net (
Other Operating Expenses, Net (Tables) | 3 Months Ended |
Mar. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Operating Cost and Expense By Component | Other Operating Expenses is comprised of the following (in thousands): Three Months Ended March 30, March 31, Strategic reorganization and alignment $ 3,492 $ — Manufacturing alignment to support growth 513 — Consolidation and optimization initiatives 605 2,395 Acquisition and integration expenses — 4,820 Asset dispositions, severance and other 667 4,556 Total other operating expenses $ 5,277 $ 11,771 |
Schedule of Changes in Accrued Liabilities | The following table summarizes the change in accrued liabilities related to the initiatives described above (in thousands): Severance and Retention Other Total December 29, 2017 $ 1,308 $ — $ 1,308 Restructuring charges 3,274 1,336 4,610 Cash payments (3,136 ) (897 ) (4,033 ) March 30, 2018 $ 1,446 $ 439 $ 1,885 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability | The change in product warranty liability was comprised of the following (in thousands): December 29, 2017 $ 4,745 Additions to warranty reserve 256 Warranty claims settled (69 ) March 30, 2018 $ 4,932 |
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 30, March 31, Increase in sales $ 139 $ 24 Increase (decrease) in cost of sales (436 ) 1,062 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 30, 2018 is as follows (dollars in thousands): Aggregate Notional Amount Start Date End Date $/Foreign Currency Fair Value Balance Sheet Location $ 2,313 Jan 2018 Jun 2018 0.0514 Peso $ 142 Prepaid expenses and other current assets 22,798 Jan 2018 Dec 2018 0.0507 Peso 1,403 Prepaid expenses and other current assets 21,900 Jan 2018 Dec 2018 1.2089 Euro 644 Prepaid expenses and other current assets |
Earnings (Loss) Per Share (EP31
Earnings (Loss) Per Share (EPS) (Tables) | 3 Months Ended |
Mar. 30, 2018 | |
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 30, March 31, Numerator for basic and diluted EPS: Net income (loss) $ 8,118 $ (4,339 ) Denominator for basic EPS: Weighted average shares outstanding 31,902 31,016 Effect of dilutive securities: Stock options, restricted stock and RSUs 521 — Denominator for diluted EPS 32,423 31,016 Basic EPS $ 0.25 $ (0.14 ) Diluted EPS $ 0.25 $ (0.14 ) |
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 30, March 31, Time-vested stock options, restricted stock and RSUs 150 1,700 Performance-vested restricted stock and PSUs 182 593 |
Accumulated Other Comprehensi32
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income 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 29, 2017 $ (1,422 ) $ 3,418 $ 50,200 $ 52,196 $ (17 ) $ 52,179 Unrealized gain on cash flow hedges — 5,124 — 5,124 (1,076 ) 4,048 Realized gain on foreign currency hedges — (575 ) — (575 ) 121 (454 ) Realized gain on interest rate swap hedges — (234 ) — (234 ) 49 (185 ) Foreign currency translation gain — — 13,441 13,441 — 13,441 March 30, 2018 $ (1,422 ) $ 7,733 $ 63,641 $ 69,952 $ (923 ) $ 69,029 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 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 30, 2018 | |
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 30, 2018 Assets: Foreign currency contracts (Note 9) $ 2,189 $ — $ 2,189 $ — Assets: Interest rate swap (Note 4) 5,544 — 5,544 — December 29, 2017 Assets: Interest rate swaps $ 4,279 $ — $ 4,279 $ — Liabilities: Foreign currency contracts 861 — 861 — |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 30, 2018 | |
Segment Reconciliation [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | Three Months Ended March 30, March 31, Segment sales by product line: Medical Cardio & Vascular $ 138,348 $ 125,108 Cardiac & Neuromodulation 108,910 103,813 Advanced Surgical, Orthopedics & Portable Medical 121,775 105,146 Total Medical 369,033 334,067 Non-Medical 12,712 11,346 Total sales $ 381,745 $ 345,413 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Three Months Ended March 30, March 31, Segment income from operations: Medical $ 52,127 $ 50,360 Non-Medical 3,198 1,562 Total segment income from operations 55,325 51,922 Unallocated operating expenses (20,608 ) (25,377 ) Operating income 34,717 26,545 Unallocated expenses, net (22,508 ) (30,740 ) Income (loss) before income taxes $ 12,209 $ (4,195 ) |
Revenue From Contracts With C35
Revenue From Contracts With Customers (Tables) | 3 Months Ended |
Mar. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Disaggregation of Revenue | The following table presents revenues by customer for the three months ended March 30, 2018. Customer Medical Non-Medical Customer A 17 % — % Customer B 16 % — % Customer C 15 % — % Customer D — % 19 % Customer E — % 11 % All other customers 52 % 70 % The following table presents revenues by ship to country for the three months ended March 30, 2018. Ship to Location Medical Non-Medical United States 55 % 69 % Puerto Rico 10 % — % Canada — % 11 % All other Countries 35 % 20 % |
Impact of Recently Issued Acc36
Impact of Recently Issued Accounting Standards (Tables) | 3 Months Ended |
Mar. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Summary of Recently Issued Accounting Standards | The following table provides a brief description of recent Accounting Standard Updates ("ASU") issued by the Financial Accounting Standards Board ("FASB"): Standard Description Effective Date Effect on the Financial Statements or Other Significant Matters In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The new guidance allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act and will improve the usefulness of information reported to financial statement users. December 29, 2018 (beginning of 2019 fiscal year). Early adoption is permitted. The Company is currently evaluating the impact that the adoption of this ASU will have on its consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities. The new guidance improves the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. December 29, 2018. Early adoption is permitted. The Company does not believe the adoption of this guidance will have a material impact on its consolidated financial statements. In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The new guidance clarifies the presentation and classification of the components of net periodic benefit costs in the consolidated statement of operations. December 30, 2017. The Company adopted the new guidance effective December 30, 2017, the beginning of its 2018 fiscal year, using the retrospective transition method, as part of the FASB's simplification initiative. See Adoption of ASU 2017-07 section below for additional information. In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory. The new guidance requires the income tax consequences of an intra-entity transfer of assets other than inventory to be recognized when the transfer occurs rather than deferring until an outside sale has occurred. December 30, 2017. The Company adopted the new guidance effective December 30, 2017. The adoption of the new guidance did not have a material impact to the Company. In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments. The new guidance clarifies the presentation and classification of certain cash receipts and cash payments in the statement of cash flows. December 30, 2017. The Company adopted the new guidance effective December 30, 2017. The adoption of the new guidance did not have a material impact to the Company. In February 2016, the FASB issued ASU 2016-02, Leases. The new guidance supersedes the lease guidance under ASC Topic 840, Leases , resulting in the creation of FASB ASC Topic 842, Leases . The guidance requires a lessee to recognize in the statement of financial position a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term for both finance and operating leases. December 29, 2018. Early adoption is permitted. The Company is currently evaluating its population of leases, and is continuing to assess all potential impacts of the standard, but currently believes the most significant impact relates to its accounting for real estate operating leases. The Company anticipates recognition of additional assets and corresponding liabilities related to leases upon adoption, but has not yet quantified these at this time. The Company plans to adopt the standard effective December 29, 2018. (15.) IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS (Continued) Standard Description Effective Date Effect on the Financial Statements or Other Significant Matters In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities. The new guidance updates certain aspects of recognition, measurement, presentation and disclosure of financial instruments. December 30, 2017. The Company adopted the new guidance effective December 30, 2017. The adoption of the new guidance did not have a material impact to the Company. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. Since that date, the FASB has issued additional ASUs clarifying certain aspects of ASU 2014-09. The new guidance requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. The new guidance provides alternative methods of adoption. Subsequent guidance issued after May 2014 did not change the core principle of ASU 2014-09. December 30, 2017. The Company adopted the new guidance effective December 30, 2017, using the modified retrospective transition method applied to those contracts which were not completed as of December 30, 2017. Prior period amounts have not been adjusted and continue to be reflected in accordance with the Company’s historical accounting. The adoption of this ASU did not have a material impact on the consolidated financial statements and therefore no cumulative adjustment was recorded to equity. The Company has updated its internal controls for changes and expanded disclosures have been made in the Notes to the Financial Statements as a result of adopting the standard. (See Note 14, “Revenue from Contracts with Customers”). |
Basis of Presentation (Narrativ
Basis of Presentation (Narrative) (Details) | 3 Months Ended | |
Mar. 30, 2018 | Mar. 31, 2017 | |
Accounting Policies [Abstract] | ||
Fiscal Period Duration | 91 days | 91 days |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 30, 2018 | Dec. 29, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 96,405 | $ 97,615 |
Work-in-process | 104,612 | 92,650 |
Finished goods | 38,473 | 37,269 |
Total | $ 239,490 | $ 227,534 |
Goodwill and Other Intangible39
Goodwill and Other Intangible Assets, Net (Schedule of Indefinite-Lived Intangible Assets and Goodwill) (Details) $ in Thousands | 3 Months Ended |
Mar. 30, 2018USD ($) | |
Goodwill [Roll Forward] | |
Goodwill | $ 990,238 |
Foreign currency translation | 4,962 |
Goodwill | 995,200 |
Medical Segment [Member] | |
Goodwill [Roll Forward] | |
Goodwill | 973,238 |
Foreign currency translation | 4,962 |
Goodwill | 978,200 |
Non-Medical Segment [Member] | |
Goodwill [Roll Forward] | |
Goodwill | 17,000 |
Foreign currency translation | 0 |
Goodwill | $ 17,000 |
Goodwill and Other Intangible40
Goodwill and Other Intangible Assets, Net (Schedule of Finite-Lived Intangible Assets, Major Class) (Details) - USD ($) $ in Thousands | Mar. 30, 2018 | Dec. 29, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,021,240 | $ 1,021,240 |
Accumulated Amortization | (224,760) | (213,047) |
Foreign Currency Translation | 27,630 | 21,912 |
Total estimated amortization expense | 824,110 | 830,105 |
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 | (121,802) | (117,695) |
Foreign Currency Translation | 3,432 | 2,483 |
Total estimated amortization expense | 138,349 | 141,507 |
Customer Lists [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 759,987 | 759,987 |
Accumulated Amortization | (95,149) | (87,555) |
Foreign Currency Translation | 20,872 | 16,103 |
Total estimated amortization expense | 685,710 | 688,535 |
Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 4,534 | 4,534 |
Accumulated Amortization | (7,809) | (7,797) |
Foreign Currency Translation | 3,326 | 3,326 |
Total estimated amortization expense | $ 51 | $ 63 |
Goodwill and Other Intangible41
Goodwill and Other Intangible Assets, Net (Schedule of Finite-Lived Intangible Assets, Amortization Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2018 | Mar. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible asset amortization expense | $ 11,713 | $ 10,978 |
Cost of Sales [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible asset amortization expense | 4,068 | 4,084 |
Selling General And Administrative Expense [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible asset amortization expense | 7,606 | 6,758 |
Research and Development Expense [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible asset amortization expense | $ 39 | $ 136 |
Goodwill and Other Intangible42
Goodwill and Other Intangible Assets, Net (Schedule of Finite-Lived Intangible Assets, Future Amortization Expense) (Details) $ in Thousands | Mar. 30, 2018USD ($) |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |
2,018 | $ 33,872 |
2,019 | 45,724 |
2,020 | 46,349 |
2,021 | 45,470 |
2,022 | 43,430 |
After 2,022 | $ 609,265 |
Debt (Schedule of Long-Term Deb
Debt (Schedule of Long-Term Debt) (Details) - USD ($) $ in Thousands | Mar. 30, 2018 | Dec. 29, 2017 | Oct. 27, 2015 |
Debt Instrument [Line Items] | |||
Unamortized discount on term loan B and debt issuance costs | $ (30,654) | $ (33,278) | |
Total debt | 1,561,757 | 1,609,165 | |
Current portion of long-term debt | (32,813) | (30,469) | |
Total long-term debt | $ 1,528,944 | 1,578,696 | |
Senior Notes [Member] | 9.125% Senior Notes due 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 9.125% | 9.125% | |
Secured Debt [Member] | Loans Payable [Member] | Term Loan A (TLA) Facility [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 328,125 | 335,157 | |
Secured Debt [Member] | Loans Payable [Member] | Term Loan B (TLB) Facility [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | 830,286 | 873,286 | |
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 | $ 74,000 | $ 74,000 |
Debt (Credit Facility) (Details
Debt (Credit Facility) (Details) | Oct. 27, 2015USD ($)loan_facility | Mar. 30, 2018USD ($) |
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 | $ 390,000,000 | |
Stated interest rate | 9.125% | 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 | $ 74,000,000 | |
Line of Credit Facility, Remaining Borrowing Capacity | 116,800,000 | |
Letters of Credit Outstanding, Amount | $ 9,200,000 | |
Debt Weighted Average Interest Rate | 5.10% | |
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 | 5.13% | |
Debt Instrument, Covenant Compliance, Maximum Leverage Ratio | 6 | |
Debt Instrument, Covenant Compliance, Adjusted EBITDA To Interest Expense Ratio | 2.75 | |
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% | |
Reduction to the variable rate basis spread | 0.25% | |
Debt Instrument, Maturity Date | Oct. 27, 2022 | |
Debt Weighted Average Interest Rate | 4.99% | |
Long-term Debt, Fair Value | $ 839,000,000 | |
Secured Debt [Member] | Loans Payable [Member] | Term Loan B (TLB) Facility [Member] | Prime Rate [Member] | ||
Debt Instrument [Line Items] | ||
Variable rate basis spread | 2.25% | |
Secured Debt [Member] | Loans Payable [Member] | Term Loan B (TLB) Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Variable rate basis spread | 3.25% | |
Debt Instrument, Interest Rate, Floor | 1.00% | |
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] | Revolving Credit Facility [Member] | New Revolving Credit Facility 2015 [Member] | Prime Rate [Member] | ||
Debt Instrument [Line Items] | ||
Variable rate basis spread | 0.75% | |
Secured Debt [Member] | Minimum [Member] | Revolving Credit Facility [Member] | New Revolving Credit Facility 2015 [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Variable rate basis spread | 1.75% | |
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] | Revolving Credit Facility [Member] | New Revolving Credit Facility 2015 [Member] | Prime Rate [Member] | ||
Debt Instrument [Line Items] | ||
Variable rate basis spread | 2.25% | |
Secured Debt [Member] | Maximum [Member] | Revolving Credit Facility [Member] | New Revolving Credit Facility 2015 [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Variable rate basis spread | 3.25% | |
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. 30, 2018USD ($) |
Debt Disclosure [Abstract] | |
2,018 | $ 23,437 |
2,019 | 37,500 |
2,020 | 111,500 |
2,021 | 229,688 |
2,022 | 830,286 |
After 2,022 | $ 360,000 |
Debt (Schedule of Deferred Fina
Debt (Schedule of Deferred Financing Fees) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2018 | Mar. 31, 2017 | |
Deferred Finance Costs [Roll Forward] | ||
Total, Beginning Balance | $ 33,278 | |
Amortization during the period | (2,871) | $ (3,437) |
Total, Ending Balance | 30,654 | |
Loss on extinguishment of debt | 1,100 | $ 1,600 |
Revolving Credit Facility [Member] | ||
Deferred Finance Costs [Roll Forward] | ||
Deferred Finance Costs, Net, Beginning Balance | 2,808 | |
Amortization during the period | (247) | |
Deferred Finance Costs, Net, Ending Balance | 2,561 | |
Term Loan And Senior Notes [Member] | ||
Deferred Finance Costs [Roll Forward] | ||
Deferred Finance Costs, Net, Beginning Balance | 26,889 | |
Write-off of debt issuance costs and unamortized discount | (745) | |
Amortization during the period | (1,279) | |
Deferred Finance Costs, Net, Ending Balance | 24,865 | |
Total, Beginning Balance | 33,278 | |
Write-off of debt issuance costs and unamortized discount | (1,057) | |
Amortization during the period | (1,567) | |
Total, Ending Balance | 30,654 | |
Term Loan B (TLB) Facility [Member] | ||
Deferred Finance Costs [Roll Forward] | ||
Unamortized Discount on TLB Facility, Beginning Balance | 6,389 | |
Write-off of debt issuance costs and unamortized discount | (312) | |
Amortization during the period | (288) | |
Unamortized Discount on TLB Facility, Ending Balance | $ 5,789 |
Debt (Schedule of Interest Rate
Debt (Schedule of Interest Rate Swaps and Details) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |
Jun. 30, 2016 | Mar. 30, 2018 | Mar. 31, 2017 | |
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% | ||
Receive Current Floating Rate | 1.875% | ||
Fair Value, Asset | $ 5,544,000 | ||
Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Gain (Loss) Recognized In Income Ineffective Portion | 0 | $ 0 | |
Reduction (Increase) to Interest Expense | 200,000 | $ (100,000) | |
Gain expected to be reclassified into earnings within the next twelve months | $ 2,000,000 |
Benefit Plans (Schedule of Net
Benefit Plans (Schedule of Net Defined Benefit Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2018 | Mar. 31, 2017 | |
Defined Benefit Plan [Abstract] | ||
Service cost | $ 127 | $ 110 |
Interest cost | 46 | 38 |
Amortization of net loss | 16 | 17 |
Expected return on plan assets | (4) | (4) |
Net defined benefit cost | $ 185 | $ 161 |
Stock-Based Compensation (Alloc
Stock-Based Compensation (Allocation of Recognized Period Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2018 | Mar. 31, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated Share-based Compensation Expense | $ 3,222 | $ 4,669 |
Cost of Sales [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated Share-based Compensation Expense | 220 | 142 |
Selling General And Administrative Expense [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated Share-based Compensation Expense | 2,965 | 2,159 |
Research and Development Expense [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated Share-based Compensation Expense | 33 | 105 |
Other Operating Income (Expense) [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated Share-based Compensation Expense | 4 | 2,263 |
Stock Option [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated Share-based Compensation Expense | 331 | 710 |
RSAs and RSUs (time-based) [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated Share-based Compensation Expense | 2,078 | 2,204 |
Performance-based RSUs (PSUs) [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated Share-based Compensation Expense | $ 813 | $ 1,755 |
Stock-Based Compensation (Valua
Stock-Based Compensation (Valuation Assumptions) (Details) - $ / shares | 3 Months Ended | |
Mar. 30, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average fair value | $ 14.89 | $ 9.14 |
Risk-free interest rate | 2.21% | 1.63% |
Expected volatility | 39.00% | 38.00% |
Expected life (in years) | 4 years | 3 years 8 months |
Expected dividend yield | 0.00% | 0.00% |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Options Activity) (Details) $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 30, 2018USD ($)$ / sharesshares | |
Stock Option Activity (in shares) | |
Options Outstanding, Beginning | shares | 931,353 |
Granted | shares | 28,447 |
Exercised | shares | (27,322) |
Forfeited or expired | shares | (818) |
Options Outstanding, Ending | shares | 931,660 |
Options Exercisable | shares | 777,521 |
Weighted Average Exercise Price (in dollars per share) | |
Options Outstanding, Beginning | $ / shares | $ 30.89 |
Granted | $ / shares | 45.13 |
Exercised | $ / shares | 36.81 |
Forfeited or expired | $ / shares | 48.43 |
Options Outstanding, Ending | $ / shares | 31.14 |
Options Exercisable | $ / shares | $ 30.03 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Options Outstanding, Weighted Average Remaining Contractual Term | 5 years 8 months |
Options Exercisable, Weighted Average Remaining Contractual Term | 5 years |
Options Outstanding, Intrinsic Value | $ | $ 23.7 |
Options Exercisable, Intrinsic Value | $ | $ 20.6 |
Stock-Based Compensation (Restr
Stock-Based Compensation (Restricted Stock and Restricted Stock Units Activity) (Details) | 3 Months Ended |
Mar. 30, 2018$ / sharesshares | |
Restricted Stock And Restricted Stock Units Time Based [Member] | |
Restricted Stock and Restricted Stock Unit Activity (in shares) | |
Nonvested, Beginning | shares | 163,431 |
Granted | shares | 147,878 |
Vested | shares | (11,999) |
Forfeited | shares | (4,453) |
Nonvested, Ending | shares | 294,857 |
Restricted Stock and Restricted Stock Unit Weighted Average Fair Value (in dollars per share) | |
Nonvested, Beginning | $ / shares | $ 35.96 |
Granted | $ / shares | 49.30 |
Vested | $ / shares | 49.78 |
Forfeited | $ / shares | 43.62 |
Nonvested, Ending | $ / shares | $ 41.97 |
Performance-based RSUs (PSUs) [Member] | |
Restricted Stock and Restricted Stock Unit Activity (in shares) | |
Nonvested, Beginning | shares | 469,889 |
Granted | shares | 159,669 |
Vested | shares | (127,191) |
Forfeited | shares | (129,311) |
Nonvested, Ending | shares | 373,056 |
Restricted Stock and Restricted Stock Unit Weighted Average Fair Value (in dollars per share) | |
Nonvested, Beginning | $ / shares | $ 32.37 |
Granted | $ / shares | 45.37 |
Vested | $ / shares | 34.29 |
Forfeited | $ / shares | 33.36 |
Nonvested, Ending | $ / shares | $ 36.93 |
Stock-Based Compensation (Addit
Stock-Based Compensation (Additional Information) (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 30, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Acceleration of remaining compensation expense | $ 2.2 | |
Performance period | 3 years | |
Expected life (in years) | 4 years | 3 years 8 months |
Risk-free interest rate | 2.21% | 1.63% |
Expected dividend yield | 0.00% | 0.00% |
Expected volatility | 39.00% | 38.00% |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Awards granted | 0.3 | |
Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Awards granted | 0.2 | |
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 January 1, 2021 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Awards granted | 0.1 | |
TSR Performance Stock Units [Member] | Performance Period Ending January 1, 2021 [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 | |
Performance-based RSUs (PSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life (in years) | 2 years 11 months | |
Risk-free interest rate | 2.28% | |
Expected dividend yield | 0.00% | |
Expected volatility | 40.00% |
Other Operating Expenses, Net54
Other Operating Expenses, Net (Schedule of Other Operating Cost and Expense By Component) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2018 | Mar. 31, 2017 | |
Other Operating Income Expense Detail [Line Items] | ||
Total other operating expenses | $ 5,277 | $ 11,771 |
Strategic Reorganization And Alignment [Member] | ||
Other Operating Income Expense Detail [Line Items] | ||
Total other operating expenses | 3,492 | 0 |
Manufacturing Alignment To Support Growth [Member] | ||
Other Operating Income Expense Detail [Line Items] | ||
Total other operating expenses | 513 | 0 |
Consolidation And Optimization Initiatives [Member] | ||
Other Operating Income Expense Detail [Line Items] | ||
Total other operating expenses | 605 | 2,395 |
Acquisition and Integration Expenses [Member] | ||
Other Operating Income Expense Detail [Line Items] | ||
Total other operating expenses | 0 | 4,820 |
Asset Dispositions, Severance And Other [Member] | ||
Other Operating Income Expense Detail [Line Items] | ||
Total other operating expenses | $ 667 | $ 4,556 |
Other Operating Expenses, Net55
Other Operating Expenses, Net (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Dec. 29, 2017 | Mar. 30, 2018 | |
Strategic Reorganization And Alignment [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Costs incurred since inception | $ 9.4 | ||
Strategic Reorganization And Alignment [Member] | Minimum [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected costs | $ 10 | ||
Expected cash outlays | 8 | ||
Strategic Reorganization And Alignment [Member] | Maximum [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected costs | 12 | ||
Expected cash outlays | 12 | ||
Manufacturing Alignment To Support Growth [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Costs incurred since inception | $ 0.9 | ||
Manufacturing Alignment To Support Growth [Member] | Minimum [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected costs | 9 | ||
Expected capital expenditures | 4 | ||
Manufacturing Alignment To Support Growth [Member] | Maximum [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected costs | 11 | ||
Expected capital expenditures | 6 | ||
Acquisition And Integration Costs [Member] | Lake Region Medical [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Acquisition related transaction costs | $ 4.8 | ||
Acquisition and integration costs accrued | 0.4 | ||
Asset Dispositions, Severance And Other [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Leadership transition costs | $ 4.7 |
Other Operating Expenses, Net56
Other Operating Expenses, Net (Schedule of Restructuring Reserve By Type of Cost) (Details) - Consolidation And Optimization Initiatives [Member] $ in Thousands | 3 Months Ended |
Mar. 30, 2018USD ($) | |
Restructuring Reserve [Roll Forward] | |
Restructuring Reserve, Beginning Balance | $ 1,308 |
Restructuring charges | 4,610 |
Cash payments | (4,033) |
Restructuring Reserve, Ending Balance | 1,885 |
Severance And Retention [Member] | |
Restructuring Reserve [Roll Forward] | |
Restructuring Reserve, Beginning Balance | 1,308 |
Restructuring charges | 3,274 |
Cash payments | (3,136) |
Restructuring Reserve, Ending Balance | 1,446 |
Other Restructuring [Member] | |
Restructuring Reserve [Roll Forward] | |
Restructuring Reserve, Beginning Balance | 0 |
Restructuring charges | 1,336 |
Cash payments | (897) |
Restructuring Reserve, Ending Balance | $ 439 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 30, 2018 | Mar. 31, 2017 | Dec. 29, 2017 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized foreign earnings and profits | $ 147,500 | ||
Provisional income tax expense | 14,700 | ||
Tax benefit from revaluation of net deferred tax liabilities | $ 56,500 | ||
Effective income tax rate | 33.50% | (3.40%) | |
Income (loss) before provision for income taxes | $ 12,209 | $ (4,195) | |
Federal statutory tax rate | 21.00% | 35.00% | |
Unrecognized Tax Benefits | $ 12,700 | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | 1,100 | ||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 12,300 |
Commitments and Contingencies58
Commitments and Contingencies (Narrative) (Details) | Jan. 26, 2016USD ($)patent | Mar. 30, 2018USD ($) |
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 | |
Amount awarded from other party | $ 37,500,000 |
Commitments and Contingencies59
Commitments and Contingencies (Schedule of Product Warranty Liability) (Details) $ in Thousands | 3 Months Ended |
Mar. 30, 2018USD ($) | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |
December 29, 2017 | $ 4,745 |
Additions to warranty reserve | 256 |
Warranty claims settled | (69) |
March 30, 2018 | $ 4,932 |
Commitments and Contingencies60
Commitments and Contingencies (Foreign Currency Contracts) (Details) $ in Thousands | 3 Months Ended | |
Mar. 30, 2018USD ($) | Mar. 31, 2017USD ($) | |
Foreign Currency Cash Flow Hedges [Abstract] | ||
Increase in sales | $ 139 | $ 24 |
Increase (decrease) in cost of sales | (436) | 1,062 |
Ineffective portion of change in fair value | 0 | $ 0 |
Foreign Currency Cash Flow Hedge [Line Items] | ||
Foreign currency cash flow hedge gain (loss) to be reclassified | 2,200 | |
FX Contract 1 [Member] | ||
Foreign Currency Cash Flow Hedge [Line Items] | ||
Aggregate Notional Amount | $ 2,313 | |
Start Date | Jan. 1, 2018 | |
End Date | Jun. 29, 2018 | |
FX Contract 2 [Member] | ||
Foreign Currency Cash Flow Hedge [Line Items] | ||
Aggregate Notional Amount | $ 22,798 | |
Start Date | Jan. 1, 2018 | |
End Date | Dec. 28, 2018 | |
FX Contract 3 [Member] | ||
Foreign Currency Cash Flow Hedge [Line Items] | ||
Aggregate Notional Amount | $ 21,900 | |
Start Date | Jan. 1, 2018 | |
End Date | Dec. 28, 2018 | |
Accrued Expenses [Member] | FX Contract 1 [Member] | ||
Foreign Currency Cash Flow Hedge [Line Items] | ||
Foreign Currency Cash Flow Hedge Asset at Fair Value | $ 142 | |
Accrued Expenses [Member] | FX Contract 2 [Member] | ||
Foreign Currency Cash Flow Hedge [Line Items] | ||
Foreign Currency Cash Flow Hedge Asset at Fair Value | 1,403 | |
Accrued Expenses [Member] | FX Contract 3 [Member] | ||
Foreign Currency Cash Flow Hedge [Line Items] | ||
Foreign Currency Cash Flow Hedge Asset at Fair Value | $ 644 | |
Peso [Member] | FX Contract 1 [Member] | ||
Foreign Currency Cash Flow Hedge [Line Items] | ||
$/Foreign Currency | 0.0514 | |
Peso [Member] | FX Contract 2 [Member] | ||
Foreign Currency Cash Flow Hedge [Line Items] | ||
$/Foreign Currency | 0.0507 | |
Euro [Member] | FX Contract 3 [Member] | ||
Foreign Currency Cash Flow Hedge [Line Items] | ||
$/Foreign Currency | 1.2089 |
Earnings (Loss) Per Share (EP61
Earnings (Loss) Per Share (EPS) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 30, 2018 | Mar. 31, 2017 | |
Net Income (Loss) Available to Common Stockholders, Diluted [Abstract] | ||
Net income (loss) | $ 8,118 | $ (4,339) |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||
Basic (in shares) | 31,902,000 | 31,016,000 |
Stock options, restricted stock and restricted stock units (in shares) | 521,000 | 0 |
Denominator for diluted EPS (in shares) | 32,423,000 | 31,016,000 |
Basic EPS (in dollars per share) | $ 0.25 | $ (0.14) |
Diluted EPS (in dollars per share) | $ 0.25 | $ (0.14) |
Anitdilutive Securities Excluded From Earnings Per Share [Abstract] | ||
Time-vested stock options, restricted stock and restricted stock units (in shares) | 150,000 | 1,700,000 |
Performance-vested stock options and restricted stock units (in shares) | 182,000 | 593,000 |
Accumulated Other Comprehensi62
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2018 | Mar. 31, 2017 | |
Defined Benefit Plan Liability | ||
Defined Benefit Plan Liability, Beginning | $ (1,422) | $ (1,475) |
Defined Benefit Plan Liability, Ending | (1,422) | (1,475) |
Cash Flow Hedges | ||
Cash Flow Hedges, Beginning | 3,418 | 1,420 |
Unrealized loss on cash flow hedges | 5,124 | 1,712 |
Realized gain loss on foreign currency hedges - before tax | (575) | 1,086 |
Realized gain loss on interest rate swaps - before tax | (234) | (106) |
Cash Flow Hedges, End | 7,733 | 4,112 |
Foreign Currency Translation Adjustment | ||
Foreign Currency Translation Adjustment, Beginning | 50,200 | (15,660) |
Net foreign currency translation gain (loss) | 13,441 | 6,536 |
Foreign Currency Translation Adjustment, End | 63,641 | (9,124) |
Total Pre-Tax Amount | ||
Total Pre-Tax Amount, Beginning | 52,196 | (15,715) |
Unrealized loss on cash flow hedges | 5,124 | 1,712 |
Realized gain loss on foreign currency hedges - before tax | (575) | 1,086 |
Realized gain loss on interest rate swaps - before tax | (234) | (106) |
Net foreign currency translation gain (loss) | 13,441 | 6,536 |
Total Pre-Tax Amount, End | 69,952 | (6,487) |
Tax | ||
Tax, Beginning | (17) | (285) |
Unrealized gain (loss) on cash flow hedges | (1,076) | (599) |
Realized gain loss on foreign currency contracts - tax | 121 | (380) |
Realized gain loss on interest rate swap hedges - tax | 49 | 37 |
Net foreign currency translation gain (loss) | 0 | 0 |
Tax, End | (923) | (1,227) |
Net-of-Tax Amount | ||
Total Net-of-Tax Amount, Beginning | 52,179 | (16,000) |
Unrealized gain (loss) on cash flow hedges, net of tax | 4,048 | 1,113 |
Realized gain loss on foreign currency hedges, net of tax | (454) | 706 |
Realized gain loss on interest rate swap hedges, net of tax | (185) | (69) |
Foreign currency translation gain (loss) | 13,441 | 6,536 |
Total Net-of-Tax Amount, End | $ 69,029 | $ (7,714) |
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 ($) $ in Thousands | Mar. 30, 2018 | Dec. 29, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts assets | $ 2,189 | |
Foreign currency contracts liabilities | $ 861 | |
Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap assets | 5,544 | 4,279 |
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 | 2,189 | |
Foreign currency contracts liabilities | 861 | |
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 | 5,544 | 4,279 |
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. 30, 2018 | Mar. 31, 2017 | Dec. 29, 2017 | |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Cost method and equity method investments, carrying value | $ 25,800,000 | $ 20,800,000 | |
Cost method investment | 7,000,000 | 7,000,000 | |
Impairment on cost method investments | 0 | $ 0 | |
Fair Value, Inputs, Level 2 [Member] | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Gain (loss) on equity method investments | 5,000,000 | $ (400,000) | |
Chinese Venture Capital Fund [Member] | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Equity method investment | $ 18,800,000 | $ 13,800,000 | |
Equity method investment ownership (percent) | 6.60% |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 3 Months Ended |
Mar. 30, 2018Segment | |
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. 30, 2018 | Mar. 31, 2017 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total sales | $ 381,745 | $ 345,413 |
Operating Segments [Member] | Medical Segment [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total sales | 369,033 | 334,067 |
Operating Segments [Member] | Medical Segment [Member] | Cardio And Vascular [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total sales | 138,348 | 125,108 |
Operating Segments [Member] | Medical Segment [Member] | Cardiac Neuromodulation [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total sales | 108,910 | 103,813 |
Operating Segments [Member] | Medical Segment [Member] | Advanced Surgical, Orthopedics, and Portable Medical [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total sales | 121,775 | 105,146 |
Operating Segments [Member] | Non-Medical Segment [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total sales | $ 12,712 | $ 11,346 |
Segment Information (Reconcil67
Segment Information (Reconciliation of Operating Profit (Loss) from Segments to Consolidated) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Operating income | $ 34,717 | $ 26,545 |
Unallocated expenses, net | (22,508) | (30,740) |
Income (loss) before income taxes | 12,209 | (4,195) |
Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating income | 55,325 | 51,922 |
Operating Segments [Member] | Medical Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating income | 52,127 | 50,360 |
Operating Segments [Member] | Non-Medical Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating income | 3,198 | 1,562 |
Segment Reconciling Items [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating income | $ (20,608) | $ (25,377) |
Revenue From Contracts With C68
Revenue From Contracts With Customers (Disaggregated Revenue) (Details) - Revenue from Contract with Customer [Member] | 3 Months Ended |
Mar. 30, 2018 | |
Medical Segment [Member] | Customer Concentration Risk [Member] | Customer A [Member] | |
Disaggregation of Revenue [Line Items] | |
Concentration risk percentage | 17.00% |
Medical Segment [Member] | Customer Concentration Risk [Member] | Customer B [Member] | |
Disaggregation of Revenue [Line Items] | |
Concentration risk percentage | 16.00% |
Medical Segment [Member] | Customer Concentration Risk [Member] | Customer C [Member] | |
Disaggregation of Revenue [Line Items] | |
Concentration risk percentage | 15.00% |
Medical Segment [Member] | Customer Concentration Risk [Member] | Customer D [Member] | |
Disaggregation of Revenue [Line Items] | |
Concentration risk percentage | 0.00% |
Medical Segment [Member] | Customer Concentration Risk [Member] | Customer E [Member] | |
Disaggregation of Revenue [Line Items] | |
Concentration risk percentage | 0.00% |
Medical Segment [Member] | Customer Concentration Risk [Member] | All Other Customers [Member] | |
Disaggregation of Revenue [Line Items] | |
Concentration risk percentage | 52.00% |
Medical Segment [Member] | Geographic Concentration Risk [Member] | United States [Member] | |
Disaggregation of Revenue [Line Items] | |
Concentration risk percentage | 55.00% |
Medical Segment [Member] | Geographic Concentration Risk [Member] | Puerto Rico [Member] | |
Disaggregation of Revenue [Line Items] | |
Concentration risk percentage | 10.00% |
Medical Segment [Member] | Geographic Concentration Risk [Member] | Canada [Member] | |
Disaggregation of Revenue [Line Items] | |
Concentration risk percentage | 0.00% |
Medical Segment [Member] | Geographic Concentration Risk [Member] | All Other Countries [Member] | |
Disaggregation of Revenue [Line Items] | |
Concentration risk percentage | 35.00% |
Non-Medical Segment [Member] | Customer Concentration Risk [Member] | Customer A [Member] | |
Disaggregation of Revenue [Line Items] | |
Concentration risk percentage | 0.00% |
Non-Medical Segment [Member] | Customer Concentration Risk [Member] | Customer B [Member] | |
Disaggregation of Revenue [Line Items] | |
Concentration risk percentage | 0.00% |
Non-Medical Segment [Member] | Customer Concentration Risk [Member] | Customer C [Member] | |
Disaggregation of Revenue [Line Items] | |
Concentration risk percentage | 0.00% |
Non-Medical Segment [Member] | Customer Concentration Risk [Member] | Customer D [Member] | |
Disaggregation of Revenue [Line Items] | |
Concentration risk percentage | 19.00% |
Non-Medical Segment [Member] | Customer Concentration Risk [Member] | Customer E [Member] | |
Disaggregation of Revenue [Line Items] | |
Concentration risk percentage | 11.00% |
Non-Medical Segment [Member] | Customer Concentration Risk [Member] | All Other Customers [Member] | |
Disaggregation of Revenue [Line Items] | |
Concentration risk percentage | 70.00% |
Non-Medical Segment [Member] | Geographic Concentration Risk [Member] | United States [Member] | |
Disaggregation of Revenue [Line Items] | |
Concentration risk percentage | 69.00% |
Non-Medical Segment [Member] | Geographic Concentration Risk [Member] | Puerto Rico [Member] | |
Disaggregation of Revenue [Line Items] | |
Concentration risk percentage | 0.00% |
Non-Medical Segment [Member] | Geographic Concentration Risk [Member] | Canada [Member] | |
Disaggregation of Revenue [Line Items] | |
Concentration risk percentage | 11.00% |
Non-Medical Segment [Member] | Geographic Concentration Risk [Member] | All Other Countries [Member] | |
Disaggregation of Revenue [Line Items] | |
Concentration risk percentage | 20.00% |
Revenue From Contracts With C69
Revenue From Contracts With Customers Revenue From Contracts With Customers (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 30, 2018 | Dec. 29, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Contract liabilities | $ 4,400,000 | $ 3,600,000 |
Revenue recognized that was included in contract liability balance at beginning of period | 700,000 | |
Contract assets | $ 0 | $ 0 |
Minimum [Member] | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Payment terms | 30 days | |
Maximum [Member] | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Payment terms | 90 days |
Subsequent Event (Narrative) (D
Subsequent Event (Narrative) (Details) $ in Millions | 3 Months Ended |
Sep. 28, 2018USD ($) | |
Scenario, Forecast [Member] | Advanced Surgical And Orthopedic Product Lines [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Proceeds from Divestiture of Businesses | $ 600 |