Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 26, 2020 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2020 | |
Entity Registrant Name | GLOBUS MEDICAL, INC. | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 98,676,042 | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Title of 12(b) Security | Class A Common Stock, par value $.001 per share | |
Trading Symbol | GMED | |
Security Exchange Name | NYSE | |
Entity File Number | 001-35621 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 04-3744954 | |
Entity Address, Address Line One | 2560 General Armistead Avenue | |
Entity Address, City or Town | Audubon | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19403 | |
City Area Code | 610 | |
Local Phone Number | 930-1800 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001237831 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash, cash equivalents, and restricted cash | $ 250,607 | $ 195,724 |
Short-term marketable securities | 159,030 | 115,763 |
Accounts receivable, net of allowances of $7,011 and $5,599, respectively | 143,268 | 154,326 |
Inventories | 231,858 | 196,314 |
Prepaid expenses and other current assets | 19,091 | 17,243 |
Income taxes receivable | 8,097 | 8,098 |
Total current assets | 811,951 | 687,468 |
Property and equipment, net of accumulated depreciation of $267,364 and $243,732, respectively | 215,274 | 199,841 |
Long-term marketable securities | 275,587 | 409,514 |
Intangible assets, net | 81,794 | 78,812 |
Goodwill | 129,662 | 128,775 |
Other assets | 22,851 | 21,741 |
Deferred income taxes | 4,620 | 5,926 |
Total assets | 1,541,739 | 1,532,077 |
Current liabilities: | ||
Accounts payable | 30,022 | 24,614 |
Accrued expenses | 61,803 | 63,283 |
Income taxes payable | 979 | 1,057 |
Business acquisition liabilities | 997 | 6,727 |
Deferred revenue | 6,179 | 5,402 |
Payable to broker | 10,320 | |
Total current liabilities | 99,980 | 111,403 |
Business acquisition liabilities, net of current portion | 3,551 | 2,822 |
Deferred income taxes | 4,128 | 6,023 |
Other liabilities | 16,876 | 9,377 |
Total liabilities | 124,535 | 129,625 |
Commitments and contingencies (Note 12) | ||
Equity: | ||
Additional paid-in capital | 422,774 | 357,320 |
Accumulated other comprehensive income (loss) | 2,207 | (2,898) |
Retained earnings | 992,125 | 1,047,931 |
Total equity | 1,417,204 | 1,402,452 |
Total liabilities and equity | 1,541,739 | 1,532,077 |
Common Class A [Member] | ||
Equity: | ||
Common stock | 76 | 77 |
Common Class B [Member] | ||
Equity: | ||
Common stock | $ 22 | $ 22 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Accounts receivable, allowances | $ 7,011 | $ 5,599 |
Property and equipment | ||
Accumulated depreciation | $ 267,364 | $ 243,732 |
Equity: | ||
Common stock, shares authorized | 775,000,000 | |
Common Class A [Member] | ||
Equity: | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 76,241,618 | 77,394,983 |
Common stock, shares outstanding | 76,241,618 | 77,394,983 |
Common Class B [Member] | ||
Equity: | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 275,000,000 | 275,000,000 |
Common stock, shares issued | 22,430,097 | 22,430,097 |
Common stock, shares outstanding | 22,430,097 | 22,430,097 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Condensed Consolidated Statements of Income [Abstract] | ||||
Net sales | $ 216,098 | $ 196,215 | $ 555,597 | $ 573,701 |
Cost of goods sold | 57,097 | 45,387 | 156,604 | 131,214 |
Gross profit | 159,001 | 150,828 | 398,993 | 442,487 |
Operating expenses: | ||||
Research and development | 14,421 | 14,508 | 69,278 | 44,577 |
Selling, general and administrative | 89,152 | 88,455 | 262,710 | 262,618 |
Provision for litigation | 1,625 | 197 | 1,625 | |
Amortization of intangibles | 4,152 | 3,620 | 12,043 | 10,412 |
Acquisition related costs | 1,263 | 559 | 1,867 | 1,245 |
Total operating expenses | 108,988 | 108,767 | 346,095 | 320,477 |
Operating income/(loss) | 50,013 | 42,061 | 52,898 | 122,010 |
Interest income/(expense), net | 3,085 | 4,377 | 10,999 | 12,954 |
Foreign currency transaction gain/(loss) | (170) | 145 | (806) | 123 |
Other income/(expense) | 202 | 169 | 595 | 410 |
Total other income/(expense), net | 3,117 | 4,691 | 10,788 | 13,487 |
Income/(loss) before income taxes | 53,130 | 46,752 | 63,686 | 135,497 |
Income tax provision | 8,914 | 8,445 | 14,358 | 25,816 |
Net income/(loss) | $ 44,216 | $ 38,307 | $ 49,328 | $ 109,681 |
Earnings per share: | ||||
Basic | $ 0.45 | $ 0.39 | $ 0.50 | $ 1.11 |
Diluted | $ 0.44 | $ 0.38 | $ 0.49 | $ 1.08 |
Weighted average shares outstanding: | ||||
Basic | 98,217 | 99,238 | 98,453 | 98,998 |
Dilutive stock options | 2,268 | 2,862 | 2,370 | 2,687 |
Diluted | 100,485 | 102,100 | 100,823 | 101,685 |
Anti-dilutive stock options excluded from weighted average calculation | 5,101 | 5,108 | 6,130 | 4,939 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Condensed Consolidated Statements of Comprehensive Income [Abstract] | ||||
Net income/(loss) | $ 44,216 | $ 38,307 | $ 49,328 | $ 109,681 |
Other comprehensive income/(loss): | ||||
Unrealized gain/(loss) on marketable securities, net of tax | (770) | 244 | 2,285 | 4,027 |
Foreign currency translation gain/(loss) | 1,679 | (1,342) | 2,820 | 319 |
Total other comprehensive income/(loss) | 909 | (1,098) | 5,105 | 4,346 |
Comprehensive income/(loss) | $ 45,125 | $ 37,209 | $ 54,433 | $ 114,027 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Thousands | Cumulative Effect, Period of Adoption, Adjustment [Member]Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Common Stock [Member]Common Class A [Member] | Common Stock [Member]Common Class B [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income/(Loss) [Member] | Retained Earnings [Member] | Total |
Shares, Outstanding, Beginning Balance at Dec. 31, 2018 | 76,144 | 22,431 | ||||||
Total equity, beginning of period at Dec. 31, 2018 | $ 76 | $ 22 | $ 299,869 | $ (7,172) | $ 892,721 | $ 1,185,516 | ||
Stock-based compensation | 6,541 | 6,541 | ||||||
Exercise of stock options (shares) | 407 | |||||||
Exercise of stock options | $ 1 | 10,255 | (1) | 10,255 | ||||
Comprehensive income/(loss) | 1,692 | 33,210 | 34,902 | |||||
Total equity, end of period at Mar. 31, 2019 | $ 77 | $ 22 | 316,665 | (5,480) | 925,930 | 1,237,214 | ||
Shares, Outstanding, Ending Balance at Mar. 31, 2019 | 76,551 | 22,431 | ||||||
Shares, Outstanding, Beginning Balance at Dec. 31, 2018 | 76,144 | 22,431 | ||||||
Total equity, beginning of period at Dec. 31, 2018 | $ 76 | $ 22 | 299,869 | (7,172) | 892,721 | 1,185,516 | ||
Comprehensive income/(loss) | 114,027 | |||||||
Total equity, end of period at Sep. 30, 2019 | $ 77 | $ 22 | 339,120 | (2,826) | 1,002,402 | 1,338,795 | ||
Shares, Outstanding, Ending Balance at Sep. 30, 2019 | 76,973 | 22,431 | ||||||
Shares, Outstanding, Beginning Balance at Mar. 31, 2019 | 76,551 | 22,431 | ||||||
Total equity, beginning of period at Mar. 31, 2019 | $ 77 | $ 22 | 316,665 | (5,480) | 925,930 | 1,237,214 | ||
Stock-based compensation | 6,381 | 6,381 | ||||||
Exercise of stock options (shares) | 96 | |||||||
Exercise of stock options | 2,015 | 1 | 2,016 | |||||
Comprehensive income/(loss) | 3,752 | 38,163 | 41,915 | |||||
Total equity, end of period at Jun. 30, 2019 | $ 77 | $ 22 | 325,061 | (1,728) | 964,094 | 1,287,526 | ||
Shares, Outstanding, Ending Balance at Jun. 30, 2019 | 76,647 | 22,431 | ||||||
Stock-based compensation | 6,978 | 6,978 | ||||||
Exercise of stock options (shares) | 326 | |||||||
Exercise of stock options | 7,081 | 1 | 7,082 | |||||
Comprehensive income/(loss) | (1,098) | 38,307 | 37,209 | |||||
Total equity, end of period at Sep. 30, 2019 | $ 77 | $ 22 | 339,120 | (2,826) | 1,002,402 | 1,338,795 | ||
Shares, Outstanding, Ending Balance at Sep. 30, 2019 | 76,973 | 22,431 | ||||||
Shares, Outstanding, Beginning Balance at Dec. 31, 2019 | 77,394 | 22,431 | ||||||
Total equity, beginning of period at Dec. 31, 2019 | $ (468) | $ (468) | $ 77 | $ 22 | 357,320 | (2,898) | 1,047,931 | 1,402,452 |
Stock-based compensation | 6,902 | 6,902 | ||||||
Exercise of stock options (shares) | 190 | |||||||
Exercise of stock options | $ 1 | 5,762 | 5,763 | |||||
Comprehensive income/(loss) | (3,368) | 25,949 | 22,581 | |||||
Repurchase and retirement of common stock (stock) | (1,920) | |||||||
Repurchase and retirement of common stock | $ (2) | (73,862) | (73,864) | |||||
Total equity, end of period at Mar. 31, 2020 | $ 76 | $ 22 | 369,984 | (6,266) | 999,550 | 1,363,366 | ||
Shares, Outstanding, Ending Balance at Mar. 31, 2020 | 75,664 | 22,431 | ||||||
Shares, Outstanding, Beginning Balance at Dec. 31, 2019 | 77,394 | 22,431 | ||||||
Total equity, beginning of period at Dec. 31, 2019 | $ (468) | $ (468) | $ 77 | $ 22 | 357,320 | (2,898) | 1,047,931 | $ 1,402,452 |
Exercise of stock options (shares) | 1,539 | |||||||
Comprehensive income/(loss) | $ 54,433 | |||||||
Total equity, end of period at Sep. 30, 2020 | $ 76 | $ 22 | 422,774 | 2,207 | 992,125 | 1,417,204 | ||
Shares, Outstanding, Ending Balance at Sep. 30, 2020 | 76,242 | 22,430 | ||||||
Shares, Outstanding, Beginning Balance at Mar. 31, 2020 | 75,664 | 22,431 | ||||||
Total equity, beginning of period at Mar. 31, 2020 | $ 76 | $ 22 | 369,984 | (6,266) | 999,550 | 1,363,366 | ||
Stock-based compensation | 7,426 | 7,426 | ||||||
Exercise of stock options (shares) | 434 | |||||||
Exercise of stock options (shares) | (1) | |||||||
Exercise of stock options | 10,201 | 10,201 | ||||||
Comprehensive income/(loss) | 7,564 | (20,837) | (13,273) | |||||
Repurchase and retirement of common stock (stock) | (771) | |||||||
Repurchase and retirement of common stock | $ (1) | (30,804) | (30,805) | |||||
Total equity, end of period at Jun. 30, 2020 | $ 75 | $ 22 | 387,611 | 1,298 | 947,909 | 1,336,915 | ||
Shares, Outstanding, Ending Balance at Jun. 30, 2020 | 75,327 | 22,430 | ||||||
Stock-based compensation | 7,007 | 7,007 | ||||||
Exercise of stock options (shares) | 915 | |||||||
Exercise of stock options | $ 1 | 28,156 | 28,157 | |||||
Comprehensive income/(loss) | 909 | 44,216 | 45,125 | |||||
Total equity, end of period at Sep. 30, 2020 | $ 76 | $ 22 | $ 422,774 | $ 2,207 | $ 992,125 | $ 1,417,204 | ||
Shares, Outstanding, Ending Balance at Sep. 30, 2020 | 76,242 | 22,430 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 49,328 | $ 109,681 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Acquired in-process research and development | 24,418 | |
Depreciation and amortization | 45,970 | 38,688 |
Amortization of premium (discount) on marketable securities | 215 | (1,008) |
Write-down for excess and obsolete inventories | 12,411 | 1,939 |
Stock-based compensation expense | 21,138 | 19,647 |
Allowance for doubtful accounts | 2,741 | 2,732 |
Change in fair value of business acquisition liabilities | 1,027 | 579 |
Change in deferred income taxes | (4,458) | 2,434 |
(Gain)/loss on disposal of assets, net | 714 | 518 |
Payment of business acquisition related liabilities | (700) | |
(Increase)/decrease in: | ||
Accounts receivable | 8,412 | (5,367) |
Inventories | (47,271) | (40,869) |
Prepaid expenses and other assets | (4,381) | (3,044) |
Increase/(decrease) in: | ||
Accounts payable | 5,401 | (158) |
Accrued expenses and other liabilities | 3,749 | 1,225 |
Income taxes payable/receivable | (105) | (9,331) |
Net cash provided by operating activities | 118,609 | 117,666 |
Cash flows from investing activities: | ||
Purchases of marketable securities | (57,418) | (277,446) |
Maturities of marketable securities | 100,830 | 205,818 |
Sales of marketable securities | 39,944 | 46,474 |
Purchases of property and equipment | (49,595) | (54,957) |
Acquisition of businesses, net of cash acquired and purchases of intangible and other assets | (31,991) | (24,135) |
Net cash used in investing activities | 1,770 | (104,246) |
Cash flows from financing activities: | ||
Payment of business acquisition related liabilities | (5,327) | (6,096) |
Proceeds from exercise of stock options | 44,121 | 19,350 |
Repurchase of common stock | (104,669) | |
Net cash used in/provided by financing activities | (65,875) | 13,254 |
Effect of foreign exchange rate on cash | 379 | (231) |
Net increase in cash, cash equivalents, and restricted cash | 54,883 | 26,443 |
Cash, cash equivalents, and restricted cash at beginning of period | 195,474 | 139,647 |
Cash, cash equivalents, and restricted cash at end of period | 250,607 | 166,190 |
Supplemental disclosures of cash flow information: | ||
Income taxes paid | 19,328 | 34,056 |
Purchases of property and equipment included in accounts payable and accrued expenses | $ 3,931 | $ 5,959 |
BACKGROUND AND SUMMARY OF SIGNI
BACKGROUND AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2020 | |
BACKGROUND AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Background and Summary of Significant Accounting Policies | NOTE 1. BACKGROUND AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) The Company Globus Medical, Inc., together with its subsidiaries, is a medical device company that develops and commercializes healthcare solutions whose mission is to improve the quality of life of patients with musculoskeletal disorders. We are primarily focused on implants that promote healing in patients with musculoskeletal disorders, including the use of a robotic guidance and navigation system and products to treat patients who have experienced orthopedic traumas. We are an engineering-driven company with a history of rapidly developing and commercializing advanced products and procedures to assist surgeons in effectively treating their patients and address new treatment options. With over 210 products on the market, we offer a comprehensive portfolio of innovative and differentiated technologies that address a variety of musculoskeletal pathologies, anatomies, and surgical approaches. We are headquartered in Audubon, Pennsylvania, and market and sell our products through our exclusive sales force in the United States, as well as within North, Central & South America, Europe, Asia, Africa and Australia. The sales force consists of direct sales representatives and distributor sales representatives employed by exclusive independent distributors. The terms the “Company,” “Globus,” “we,” “us” and “our” refer to Globus Medical, Inc. and, where applicable, our consolidated subsidiaries. (b) COVID-19 Pandemic Impact On March 11, 2020, the World Health Organization declared the novel strain of coronavirus (“COVID-19”) a global pandemic and recommended containment and mitigation measures worldwide. The pandemic has significantly impacted the economic conditions in the U.S. and globally as federal, state and local governments react to the public health crisis, creating significant uncertainties in the economy. While emergency and time-sensitive surgical procedures continue, as of the date of this filing, the Company has been impacted by temporary postponement of elective surgeries in hospitals and surgical facilities worldwide. The Company cannot reasonably estimate the length or severity of this pandemic, however, as a result of these developments the Company expects a material adverse impact on its sales, results of operations, and cash flows in fiscal 2020, and potentially fiscal 2021. In response to these developments, the Company will continue to monitor liquidity and cash flow. The Company has the ability to borrow from our credit facility signed on August 6, 2020, if needed, although we do not expect to do so due to our cash, cash equivalents and short-term marketable securities balances. (c) Basis of Presentation The accompanying interim unaudited condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial statements and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in complete financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). As such, the information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying footnotes included in our Annual Report on Form 10-K for the year ended December 31, 2019. In the opinion of management, the statements include all adjustments necessary, which are of a normal and recurring nature, for the fair presentation of our financial position and of the results for the three and nine month periods presented. The results of operations for any interim period are not indicative of results for the full year. (d) Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of Globus and its wholly-owned subsidiaries. All intercompany balances and transactions are eliminated in consolidation. (e) Use of Estimates The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. We base our estimates, in part, on historical experience that management believes to be reasonable under the circumstances. Actual results could differ from those estimates. Estimates and assumptions are periodically reviewed and the effects of revisions are reflected in the condensed consolidated financial statements in the period they are determined to be necessary. Significant areas that require management’s estimates include intangible assets, business acquisition liabilities, stock-based compensation, write-down for excess and obsolete inventory, useful lives of assets, the outcome of litigation, recoverability of intangible assets and income taxes. We are subject to risks and uncertainties due to changes in the healthcare environment, regulatory oversight, competition, and legislation that may cause actual results to differ from estimated results. (f) Cash, Cash Equivalents, and Restricted Cash The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the statement of financial position that sum to the total of the same such amounts shown in the statement of cash flows: September 30, December 31, September 30, December 31, (In thousands) 2020 2019 2019 2018 Cash and cash equivalents $ 250,607 $ 195,474 $ 166,090 $ 139,647 Restricted cash — 250 100 100 Total cash, cash equivalents, and restricted cash as presented in the condensed consolidated statement of cash flows $ 250,607 $ 195,724 $ 166,190 $ 139,747 (g) Marketable Securities Our marketable securities include municipal bonds, corporate debt securities, commercial paper, securities of government, federal agency, and other sovereign obligations, and asset-backed securities, and are classified as available-for-sale as of September 30, 2020 and December 31, 2019. Available-for-sale securities are recorded at fair value in both short-term and long-term marketable securities on our condensed consolidated balance sheets. The change in fair value for available-for-sale securities, that do not result in recognition or reversal of an allowance for credit loss or write-down, is recorded, net of taxes, as a component of accumulated other comprehensive income or loss on our condensed consolidated balance sheets. Premiums and discounts are recognized over the life of the related security as an adjustment to yield using the straight-line method. Realized gains or losses from the sale of our marketable securities are determined on a specific identification basis. Realized gains and losses, along with interest income and the amortization/accretion of premiums/discounts are included as a component of other income/(expense), on our condensed consolidated statements of income. Interest receivable is recorded as a component of prepaid expenses and other current assets on our condensed consolidated balance sheets. We maintain a portfolio of various holdings, types and maturities, though most of the securities in our portfolio could be liquidated at minimal cost at any time. We invest in securities that meet or exceed standards as defined in our investment policy. Our policy also limits the amount of credit exposure to any one issue, issuer or type of security. We review our securities for other-than-temporary impairment at each reporting period. If an unrealized loss for any security is expected, the loss will be recognized on an allowance basis, consistent with ASC 326-30, in our condensed consolidated statement of income in the period the determination is made. (h) Fair Value Measurements Assets and Liabilities That Are Measured at Fair Value on a Recurring Basis Under the accounting for fair value measurements and disclosures, fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or the liability in an orderly transaction between market participants on the measurement date. Additionally, a fair value hierarchy was established that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable inputs. The level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Our assets and liabilities measured at fair value on a recurring basis are classified and disclosed in one of the following three categories: Level 1—quoted prices (unadjusted) in active markets for identical assets and liabilities; Level 2—observable inputs other than quoted prices in active markets for identical assets and liabilities; and Level 3—unobservable inputs in which there is little or no market data available, which require the reporting entity to use significant unobservable inputs or valuation techniques. Assets and Liabilities That Are Measured at Fair Value on a Nonrecurring Basis The purchase price of business acquisitions is primarily allocated to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values on the acquisition dates, with the excess recorded as goodwill. We utilize Level 3 inputs in the determination of the initial fair value. Non-financial assets such as goodwill, intangible assets, and property, plant, and equipment are subsequently measured at fair value when there is an indicator of impairment and recorded at fair value only when an impairment is recognized. We assess the impairment of intangible assets annually or whenever events or changes in circumstances indicate that the carrying amount of an intangible asset may not be recoverable. The fair value of our goodwill and intangible assets is not estimated if there is no change in events or circumstances that indicate the carrying amount of an intangible asset may not be recoverable. Contingent consideration represents our contingent milestone, performance and revenue-sharing payment obligations related to our acquisitions and is measured at fair value, based on significant inputs not observable in the market, which represents a Level 3 measurement within the fair value hierarchy. The valuation of contingent consideration uses assumptions we believe would be made by a market participant. We assess these assumptions on an ongoing basis as additional data impacting the assumptions is obtained. The balances of the fair value of contingent consideration are recognized within business acquisition liabilities on our condensed consolidated balance sheets, and the changes in the fair value of contingent consideration are recognized within acquisition related costs in the condensed consolidated statements of income. (i) Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined on a first-in, first-out basis. The majority of our inventories are finished goods and we utilize both in-house manufacturing and third-party suppliers to source our products. We periodically evaluate the carrying value of our inventories in relation to our estimated forecast of product demand, which takes into consideration the estimated life cycle of product releases. When quantities on hand exceed estimated sales forecasts, we record a write-down for such excess inventories. Once inventory has been written down, it creates a new cost basis for inventory that is not subsequently written up. (j) Revenue Recognition Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. Sales and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. For purposes of disclosing disaggregated revenue, we disaggregate our revenue into two categories, Musculoskeletal Solutions and Enabling Technologies. Our Musculoskeletal Solutions products consist primarily of the implantable devices, disposables, and unique instruments used in an expansive range of spine, orthopedic trauma, hip, knee and extremity procedures. The majority of our Musculoskeletal Solutions contracts have a single performance obligation and revenue is recognized at a point in time. Our Enabling Technologies products are the advanced hardware and software systems and related technologies that are designed to enhance a surgeon’s capabilities and streamline surgical procedures by making them less invasive, more accurate, and more reproducible to improve patient care. The majority of our Enabling Technologies product contracts typically contain multiple performance obligations, including maintenance and support, and revenue is recognized as we fulfill each performance obligation. For contracts with multiple performance obligations, we allocate the contract’s transaction price to each performance obligation using our best estimate of the standalone selling price of each distinct good or service in the contract. Our policy is to classify shipping and handling costs billed to customers as sales and the related expenses as cost of goods sold. Nature of Products and Services A significant portion of our Musculoskeletal Solutions product revenue is generated from consigned inventory maintained at hospitals or with sales representatives. Revenue from the sale of consigned musculoskeletal products is recognized when we transfer control, which occurs at the time the product is used or implanted. For all other Musculoskeletal Solutions product transactions, we recognize revenue when we transfer title to the goods, provided there are no remaining performance obligations that will affect the customer’s final acceptance of the sale. We use an observable price to determine the stand-alone selling price for the identified performance obligation. Revenue from the sale of Enabling Technologies products is generally recognized when control transfers to the customer which occurs at the time the product is shipped or delivered. Depending on the terms of the arrangement, we may also defer the recognition of a portion of the consideration received as we have to satisfy a future performance obligation to provide maintenance and support. We use an observable price to determine the stand-alone selling price for each separate performance obligation. Contract Balances Timing of revenue recognition may differ from the timing of invoicing to customers. We record a receivable when revenue is recognized prior to invoicing, or deferred revenue when revenue is recognized subsequent to invoicing. Deferred revenue is comprised mainly of unearned revenue related to the sales of certain Enabling Technologies products, which includes maintenance and support services. Deferred revenue is generally invoiced annually at the beginning of each contract period and recognized ratably over the coverage period. For the three and nine months ended September 30, 2020, there was an immaterial amount of revenue recognized from previously deferred revenue. Disaggregation of Revenue Net sales for the three and nine months ended September 30, 2020 and 2019, respectively included the following: Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2020 2019 2020 2019 Musculoskeletal Solutions products $ 207,063 $ 182,324 $ 533,085 $ 540,620 Enabling Technologies products 9,035 13,891 22,512 33,081 Total net sales $ 216,098 $ 196,215 $ 555,597 $ 573,701 (k) Recently Issued Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”) , which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures. On March 12, 2020, the FASB issued ASU No. 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The ASU is effective for all entities as of March 12, 2020, and will apply through December 31, 2022. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures. Management does not believe that any other recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Company’s consolidated financial statements. (l) Recently Adopted Accounting Pronouncements In February 2016, the FASB released ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”). Under ASU 2016-02, a right-of-use asset and lease obligation will be recorded for all leases with terms greater than 12 months, whether operating or financing, while the income statement will reflect lease expense for operating leases and amortization/interest expense for financing leases. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, with early adoption permitted, and permits modified retrospective method or cumulative-effect adjustment method. We adopted the standard on January 1, 2019, using the cumulative-effect adjustment transition method. As part of the adoption, we elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed carry forward of historical lease classifications. The adoption of this standard did not have a material impact on our financial position and results of operations. See “Note 13. Leases” for more detail regarding our disclosures. In February 2018, the FASB released ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) , Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“ASU 2018-02”). Prior to ASU 2018-02, GAAP required the remeasurement of deferred tax assets and liabilities as a result of a change in tax laws or rates to be presented in net income from continuing operations, even in situations in which the related income tax effects of items in accumulated other comprehensive income were originally recognized in other comprehensive income. As a result, such items, referred to as stranded tax effects, did not reflect the appropriate tax rate. Under ASU 2018-02, entities are permitted, but not required, to reclassify from accumulated other comprehensive income to retained earnings those stranded tax effects resulting from the U.S. legislation commonly referred to as the Tax Cuts and Jobs Act enacted in December 2017 . ASU 2018-02 is effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. We adopted ASU 2018-02 on January 1, 2019. Adoption of the standard did not have a material impact on our financial position, results of operations and disclosures. In June 2018, the FASB released ASU 2018-07, Compensation—Stock Compensation (Topic 718) , (“ASU 2018-07”), which expanded the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. ASU 2018-07 specifies that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. This update is effective for public entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. We adopted ASU 2018-07 on January 1, 2019. Adoption of the standard did not have a material impact on our financial position, results of operations, and disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 replaces the incurred loss impairment methodology for measuring and recognizing credit losses with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This amendment is effective for fiscal years beginning after December 15, 2019. We adopted the updated guidance on January 1, 2020 on a prospective basis recording $ 0.5 million as a cumulative effect adjustment to retained earnings and as a result, prior period amounts were not adjusted. Adoption of the standard did not have a material impact on our financial position, results of operations, and disclosures. In January 2017, the FASB released ASU 2017-04, Intangibles - Goodwill and Other (Topic 805): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”), which eliminates the Step 2 calculation for the implied fair value of goodwill to measure a goodwill impairment charge. Under the updated standard, an entity will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. ASU 2017-04 does not change the guidance on completing Step 1 of the goodwill impairment test and still allows an entity to perform the optional qualitative goodwill impairment assessment before determining whether to proceed to Step 1. This update is effective for annual and interim goodwill impairment tests in fiscal years beginning after December 15, 2019 with early adoption permitted for any impairment test performed on testing dates after January 1, 2017. We adopted ASU 2017-04 on January 1, 2020. Adoption of the standard did not have a material impact on our financial position, results of operations, and disclosures. In August 2018, the FASB released ASU 2018-13, Fair Value Measurement (Topic 820) , (“ASU 2018-13”), which modifies the disclosure requirements on fair value measurements in Topic 820, including the consideration of costs and benefits. This update is effective for public entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. We adopted ASU 2018-13 on January 1, 2020. Adoption of the standard did not have a material impact on our financial position, results of operations, and disclosures . |
ASSET ACQUISITIONS AND BUSINESS
ASSET ACQUISITIONS AND BUSINESS COMBINATIONS | 9 Months Ended |
Sep. 30, 2020 | |
ASSET ACQUISITIONS AND BUSINESS COMBINATIONS [Abstract] | |
Asset Acquisitions And Business Combinations | NOTE 2. ASSET ACQUISITIONS AND BUSINESS COMBINATIONS Asset Acquisitions During the second quarter of 2020, the Company acquired Synoste Oy (“Synoste”), a Finnish engineering company that specializes in the research and development of a limb lengthening system. The fair value of the net assets acquired was $ 25.3 million, and the consideration consisted of approximately $ 22.8 million of cash paid at closing plus $ 2.5 million of a contractual holdback obligation payable eighteen months from the closing date of the transaction, subject to net working capital and other post-closing adjustments, if applicable. The contractual holdback obligation is included in Other Liabilities in the Condensed Consolidated Balance Sheet. The Company accounted for the transaction as an asset acquisition as substantially all of the estimated fair value of the gross assets acquired was concentrated in a single identified asset, in-process research and development (“IPR&D”) of the limb lengthening system, thus satisfying the requirements of the screen test in ASU 2017-1. Acquired IPR&D in the asset acquisition was accounted for in accordance with FASB ASC Topic 730, “Research and Development” (ASC 730). At the date of acquisition, the Company determined that the development of the projects underway at Synoste had not yet reached technological feasibility and that the research in process had no alternative future use. Accordingly, the acquired IPR&D of $ 24.4 million was charged to Research and Development expense in the Condensed Consolidated Statements of Income on the acquisition date. The Company also recorded the remaining immaterial identifiable net assets based on their estimated fair values, which primarily consisted of cash and assembled workforce. The transaction also provides for additional consideration contingent upon the developed product obtaining approval from the U.S. Food and Drug Administration (the “FDA”) of $ 8.0 million within the third anniversary, or $ 4.0 million within the fourth anniversary of the acquisition closing date, respectively. Contingent consideration is not recorded in an asset acquisition until the milestone is met. Business Combinations During the second quarter of 2019, the Company acquired substantially all of the assets of StelKast, Inc. (the “StelKast Acquisition”), a privately held company that designs, manufactures and distributes orthopedic implants for knee and hip replacement surgeries. The Company has included the financial results from the StelKast Acquisition in our condensed financial statements from the acquisition date, and the results from the StelKast Acquisition were not material to our condensed financial statements. At the acquisition date, the fair value of the net assets acquired was $ 28.1 million, which consisted of approximately $ 23.8 million of cash paid at closing, plus a potential $ 4.3 million contingent consideration payment based on product sales milestones. The Company recorded identifiable net assets, based on their estimated fair values, related to inventory of $ 15.3 million, fixed assets of $ 4.2 million and customer relationships of $ 3.9 million and goodwill of $ 4.7 million. The contingent consideration payable related to this acquisition of $ 5.0 million was paid during the third quarter of 2020. The payment up to the amount of the contingent consideration liability recognized at the acquisition date of $ 4.3 million is presented as a financing activity and the excess cash payment of $ 0.7 million is presented as an operating activity on the Condensed Consolidated Statement of Cash Flows as of the nine months ended September 30, 2020 in accordance with FASB ASC Topic 230, “Statement of Cash Flows” (ASC 230) . |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2020 | |
GOODWILL AND INTANGIBLE ASSETS [Abstract] | |
Goodwill and Intangible Assets | NOTE 3. GOODWILL AND INTANGIBLE ASSETS Intangible assets as of September 30, 2020 included the following: September 30, 2020 (In thousands) Weighted Average Amortization Period (in years) Gross Carrying Amount Accumulated Amortization Intangible Assets, net Supplier network 10.0 $ 4,000 $ ( 2,367 ) $ 1,633 Customer relationships & other intangibles 7.0 48,256 ( 29,506 ) 18,750 Developed technology 8.0 71,736 ( 16,745 ) 54,991 Patents 16.1 8,894 ( 2,474 ) 6,420 Total intangible assets $ 132,886 $ ( 51,092 ) $ 81,794 Due to the completion of contractual milestones related to the 2018 acquisition of Nemaris, in the first quarter of 2020, $ 13.0 million was capitalized to Developed technology and began to be amortized over a period of 5.4 years. Intangible assets as of December 31, 2019 included the following: December 31, 2019 (In thousands) Weighted Average Amortization Period (in years) Gross Carrying Amount Accumulated Amortization Intangible Assets, net Supplier network 10.0 4,000 ( 2,067 ) 1,933 Customer relationships & other intangibles 7.0 46,766 ( 24,264 ) 22,502 Developed technology 8.6 57,577 ( 10,189 ) 47,388 Patents 16.0 8,662 ( 1,673 ) 6,989 Total intangible assets $ 117,005 $ ( 38,193 ) $ 78,812 The change in the carrying amount of goodwill during the twelve months ended December 31, 2019 and the nine months ended September 30, 2020, respectively included the following: (In thousands) December 31, 2018 $ 123,734 Additions and adjustments 4,817 Foreign exchange 224 December 31, 2019 128,775 Additions and adjustments ( 123 ) Foreign exchange 1,010 September 30, 2020 $ 129,662 |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 9 Months Ended |
Sep. 30, 2020 | |
MARKETABLE SECURITIES [Abstract] | |
Marketable Securities | NOTE 4. MARKETABLE SECURITIES Short-term and long-term marketable securities as of September 30, 2020 and December 31, 2019, respectively included the following: September 30, 2020 (In thousands) Contractual Maturity (in years) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-term: Municipal bonds Less than 1 $ 23,965 $ 191 $ — $ 24,156 Corporate debt securities Less than 1 99,461 849 — 100,310 Commercial paper Less than 1 7,984 15 — 7,999 Asset-backed securities Less than 1 13,962 106 — 14,068 Government, federal agency, and other sovereign obligations Less than 1 12,380 117 — 12,497 Total short-term marketable securities $ 157,752 $ 1,278 $ — $ 159,030 Long-term: Municipal bonds 1 - 2 $ 26,209 $ 561 $ — $ 26,770 Corporate debt securities 1 - 3 119,164 3,559 — 122,723 Asset-backed securities 1 - 2 123,778 2,316 — 126,094 Total long-term marketable securities $ 269,151 $ 6,436 $ — $ 275,587 December 31, 2019 (In thousands) Contractual Maturity (in years) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-term: Municipal bonds Less than 1 $ 7,840 $ 23 $ ( 1 ) $ 7,862 Corporate debt securities Less than 1 69,091 247 ( 3 ) 69,335 Commercial paper Less than 1 34,747 6 ( 1 ) 34,752 Asset-backed securities Less than 1 3,808 6 — 3,814 Total short-term marketable securities $ 115,486 $ 282 $ ( 5 ) $ 115,763 Long-term: Municipal bonds 1 - 3 $ 45,010 $ 254 $ ( 8 ) $ 45,256 Corporate debt securities 1 - 3 186,356 2,578 ( 5 ) 188,929 Asset-backed securities 1 - 3 161,347 1,583 ( 33 ) 162,897 Government, federal agency, and other sovereign obligations 1 - 2 12,366 66 — 12,432 Total long-term marketable securities $ 405,079 $ 4,481 $ ( 46 ) $ 409,514 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2020 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
Fair Value Measurements | NOTE 5. FAIR VALUE MEASUREMENTS Assets and liabilities measured at fair value on a recurring basis as of September 30, 2020 and December 31, 2019, respectively included the following: (In thousands) Balance at September 30, 2020 Level 1 Level 2 Level 3 Assets: Cash equivalents $ 96,953 $ 96,953 $ — $ — Municipal bonds 50,926 — 50,926 — Corporate debt securities 223,033 — 223,033 — Commercial paper 7,999 — 7,999 — Asset-backed securities 140,162 — 140,162 — Government, federal agency, and other sovereign obligations 12,497 — 12,497 — Liabilities: Business acquisition liabilities 4,548 — — 4,548 (In thousands) Balance at December 31, 2019 Level 1 Level 2 Level 3 Assets: Cash equivalents $ 18,218 $ 4,988 $ 13,230 $ — Municipal bonds 53,118 — 53,118 — Corporate debt securities 258,264 — 258,264 — Commercial paper 34,752 — 34,752 — Asset-backed securities 166,711 — 166,711 — Government, federal agency, and other sovereign obligations 12,432 — 12,432 — Liabilities: Business acquisition liabilities 9,549 — — 9,549 Our marketable securities are classified as Level 2 within the fair value hierarchy, as we measure their fair value using market prices for similar instruments and inputs such as actual trade data, benchmark yields, broker/dealer quotes and other similar data obtained from quoted market prices or independent pricing vendors. Assets and Liabilities That Are Measured at Fair Value on a Nonrecurring Basis The recurring Level 3 fair value measurements of our business acquisition liabilities include the following significant unobservable inputs, which have not materially changed since December 31, 2019, exclusive of the contractual payable reclassification to Accrued Expenses in the Condensed Consolidated Balance Sheet: (In thousands) Fair Value at September 30, 2020 Valuation technique Unobservable input Range Discount rate 8.5 % Revenue-based payments $ 4,548 Discounted cash flow Probability of payment 75 % - 100 % Projected year of payment 2020 - 2029 The change in the carrying value of the business acquisition liabilities during the three and nine months ended September 30, 2020 and 2019, respectively included the following: Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2020 2019 2020 2019 Beginning balance $ 4,216 $ 9,304 $ 9,549 $ 10,118 Purchase price contingent consideration — — — 4,299 Changes resulting from foreign currency fluctuations — — — ( 9 ) Contingent payments ( 175 ) ( 463 ) ( 1,028 ) ( 6,096 ) Changes in fair value of business acquisition liabilities 507 50 970 579 Contractual payable reclassification — — ( 4,943 ) — Ending balance $ 4,548 $ 8,891 $ 4,548 $ 8,891 |
INVENTORIES
INVENTORIES | 9 Months Ended |
Sep. 30, 2020 | |
INVENTORIES [Abstract] | |
Inventories | NOTE 6. INVENTORIES Inventories as of September 30, 2020 and December 31, 2019, respectively included the following: September 30, December 31, (In thousands) 2020 2019 Raw materials $ 34,198 $ 33,025 Work in process 19,314 15,940 Finished goods 178,346 147,349 Total inventories $ 231,858 $ 196,314 During the three months ended September 30, 2020 and 2019, net adjustments to cost of sales related to excess and obsolete inventory were $ 5.2 million and ($ 0.6 ) million, respectively. The net adjustments for the three months ended September 30, 2020 and 2019 reflect a combination of additional expense for excess and obsolete related provisions ($ 7.9 million and $ 1.2 million, respectively) offset by sales and disposals ($ 2.7 million and $ 1.8 million, respectively) of inventory for which an excess and obsolete provision was provided previously through expense recognized in prior periods. During the nine months ended September 30, 2020 and 2019, net adjustments to cost of sales related to excess and obsolete inventory were $ 12.4 million and $ 1.9 million, respectively. The net adjustments for the nine months ended September 30, 2020 and 2019 reflect a combination of additional expense for excess and obsolete related provisions ($ 18.9 million and $ 7.8 million, respectively) offset by sales and disposals ($ 6.5 million and $ 5.9 million, respectively) of inventory for which an excess and obsolete provision was provided previously through expense recognized in prior periods. During the third quarter of 2020, the Company initiated a voluntary Class II recall of specific lots of ALTERA ® Spacers. This recall was initiated because specific lots of ALTERA ® implants have internal components that were manufactured using stainless steel rather than the specified cobalt chromium molybdenum alloy. Only devices made after February 12, 2020 from specific lots were affected, and some parts in some lots may not be affected. No reports of adverse reactions related to the affected ALTERA ® implants have been received to date. A recall notification was issued to all relevant parties and Globus has collected and replaced impacted field inventory. The Company recorded an accrual in the second quarter of approximately $ 1.3 million in costs associated with this recall of which $ 1.0 million was charged to Cost of Goods Sold in the Condensed Consolidated Statements of Income. |
ACCRUED EXPENSES
ACCRUED EXPENSES | 9 Months Ended |
Sep. 30, 2020 | |
ACCRUED EXPENSES [Abstract] | |
Accrued Expenses | NOTE 7. ACCRUED EXPENSES Accrued expense as of September 30, 2020 and December 31, 2019, respectively included the following: September 30, December 31, (In thousands) 2020 2019 Compensation and other employee-related costs $ 37,579 $ 37,178 Legal and other settlements and expenses 960 1,538 Accrued non-income taxes 3,800 4,996 Royalties 2,656 2,370 Other 16,808 17,201 Total accrued expenses $ 61,803 $ 63,283 |
DEBT
DEBT | 9 Months Ended |
Sep. 30, 2020 | |
DEBT [Abstract] | |
Debt | NOTE 8. DEBT Line of Credit On August 6, 2020, we entered into a credit agreement with Citizens Bank, N.A. (the “Credit Agreement”) that provides a revolving credit facility permitting borrowings up to $ 125.0 million (the “Revolving Credit Facility”), and has a termination date of August 5, 2021 . The Revolving Credit Facility includes up to a $ 25.0 million sub limit for letters of credit. Revolving loans under the Credit Agreement will bear interest, at the Company’s option, at either a base rate or the Adjusted LIBOR Rate (as defined in the Credit Agreement), plus, in each case, an applicable margin, as determined in accordance with the provisions of the Credit Agreement. The base rate will be the highest of: the rate of interest announced publicly by Citizens Bank, N.A. from time to time as its “prime rate”; the federal funds effective rate plus 1/2 of 1 %; and the Adjusted LIBOR Rate for a one-month period plus 1 %. The applicable margin is subject to adjustment as provided in the Credit Agreement. The Credit Agreement contains financial and other customary covenants, including a maximum leverage ratio. In May 2011, we entered into a credit agreement with Wells Fargo Bank related to a revolving credit facility that provided for borrowings up to $ 50.0 million. In June 2018, we amended the credit agreement to increase the revolving credit facility amount from $ 50.0 million to $ 125.0 million. At our request, and with the approval of the bank, the amount of borrowings available under the revolving credit facility increased to $ 150.0 million. The revolving credit facility included up to a $ 25.0 million sub-limit for letters of credit. As amended to date, the revolving credit facility with Wells Fargo Bank expired in May 2020. |
EQUITY
EQUITY | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Equity | NOTE 9. EQUITY Stock Repurchases Under the current stock repurchase plan, announced on March 11, 2020, the Company is authorized to repurchase up to $ 200 million of the Company’s Class A common stock. As of September 30, 2020, $ 95.3 million of this authorization is remaining. The timing and actual number of shares repurchased will depend on various factors including price, corporate and regulatory requirements, debt covenant requirements, alternative investment opportunities and other market conditions. We continue to expect funding of share repurchases will come from operating cash flows and excess cash. Shares repurchased by the Company are accounted for under the constructive retirement method, in which the shares repurchased, are immediately retired, as there is no plan to reissue. The Company made an accounting policy election to charge the excess of repurchase price over par value entirely to retained earnings. The following table summarizes the activity related to share repurchases: (In thousands except for per share prices) Period Total number of shares repurchased Average Price Paid per Share Dollar amount of shares repurchased (1) Approximate dollar value of shares that may yet be purchased under the plan January 1, 2020 - March 31, 2020 1,920 $ 38.49 $ 73,902 $ 126,098 April 1, 2020 - June 30, 2020 771 39.95 30,804 95,294 July 1, 2020 - September 30,2020 — — — 95,294 January 1, 2020 - September 30, 2020 2,691 $ 38.91 $ 104,706 (1) Inclusive of an immaterial amount of commission fees Common Stock Our amended and restated Certificate of Incorporation provides for a total of 775,000,000 authorized shares of common stock. Of the authorized number of shares of common stock, 500,000,000 shares are designated as Class A common stock (“Class A Common”), and 275,000,000 shares are designated as Class B common stock (“Class B Common”). Each share of our Class B common stock is convertible at any time at the option of the holder into one share of our Class A common stock. In addition, each share of our Class B common stock will convert automatically into one share of our Class A common stock upon any transfer, whether or not for value, except for permitted transfers. For more details relating to the conversion of our Class B common stock please see “Exhibit 4.2, Description of Securities of the Registrant filed with our amended Form 10-K on March 2, 2020.” Accumulated Other Comprehensive Income (Loss) The tables below present the changes in each component of accumulated other comprehensive income/(loss), including current period other comprehensive income/(loss) and reclassifications out of accumulated other comprehensive income/(loss) for the nine months ended September 30, 2020 and 2019, respectively: (In thousands) Unrealized gain/(loss) on marketable securities, net of tax Foreign currency translation adjustments Accumulated other comprehensive loss Accumulated other comprehensive loss, net of tax, at December 31, 2019 $ 3,599 $ ( 6,497 ) $ ( 2,898 ) Other comprehensive (loss)/income before reclassifications 3,001 2,820 5,821 Amounts reclassified from accumulated other comprehensive income, net of tax ( 716 ) — ( 716 ) Other comprehensive (loss)/income, net of tax 2,285 2,820 5,105 Accumulated other comprehensive loss, net of tax, at September 30, 2020 $ 5,884 $ ( 3,677 ) $ 2,207 (In thousands) Unrealized gain/(loss) on marketable securities, net of tax Foreign currency translation adjustments Accumulated other comprehensive loss Accumulated other comprehensive loss, net of tax, at December 31, 2018 $ ( 168 ) $ ( 7,004 ) $ ( 7,172 ) Other comprehensive (loss)/income before reclassifications 5,266 319 5,585 Amounts reclassified from accumulated other comprehensive income, net of tax ( 1,239 ) — ( 1,239 ) Other comprehensive (loss)/income, net of tax 4,027 319 4,346 Accumulated other comprehensive loss, net of tax, at September 30, 2019 $ 3,859 $ ( 6,685 ) $ ( 2,826 ) |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2020 | |
STOCK-BASED COMPENSATION [Abstract] | |
Stock-Based Compensation | NOTE 10. STOCK-BASED COMPENSATION We have three stock plans: our Amended and Restated 2003 Stock Plan, our 2008 Stock Plan, and our 2012 Equity Incentive Plan (the “2012 Plan”). The 2012 Plan is the only remaining active stock plan. The purpose of these stock plans was, and the 2012 Plan is, to provide incentive to employees, directors, and consultants of Globus. The Plans are administered by the Board of Directors of Globus (the “Board”) or its delegates. The number, type of option, exercise price, and vesting terms are determined by the Board or its delegates in accordance with the terms of the Plans. The options granted expire on a date specified by the Board, but generally not more than ten years from the grant date. Option grants to employees generally vest in varying installments over a four-year period. The 2012 Plan was approved by our Board in March 2012, and by our stockholders in June 2012. Under the 2012 Plan, the aggregate number of shares of Class A Common stock that may be issued subject to options and other awards is equal to the sum of (i) 3,076,923 shares, (ii) any shares available for issuance under the 2008 Plan as of March 13, 2012, (iii) any shares underlying awards outstanding under the 2008 Plan as of March 13, 2012 that, on or after that date, are forfeited, terminated, expired or lapse for any reason, or are settled for cash without delivery of shares and (iv) starting January 1, 2013, an annual increase in the number of shares available under the 2012 Plan equal to up to 3 % of the number of shares of our common and preferred stock outstanding at the end of the previous year, as determined by our Board. The number of shares that may be issued or transferred pursuant to incentive stock options under the 2012 Plan is limited to 10,769,230 shares. The shares of Class A Common stock issuable under the 2012 Plan include authorized but unissued shares, treasury shares or shares of common stock purchased on the open market. As of September 30, 2020, pursuant to the 2012 Plan, there were 17,899,947 shares of Class A Common stock reserved and 2,206,992 shares of Class A Common stock available for future grants. The weighted average grant date fair value per share of the options awarded to employees for the three and nine months ended September 30, 2020 and 2019, respectively were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Weighted average grant date fair value per share $ 16.98 $ 13.43 $ 14.54 $ 13.61 Stock option activity during the nine months ended September 30, 2020 is summarized as follows: Option Shares (thousands) Weighted average exercise price Weighted average remaining contractual life (years) Aggregate intrinsic value (thousands) Outstanding at December 31, 2019 10,650 $ 35.80 Granted 2,071 52.43 Exercised ( 1,539 ) 28.69 Forfeited ( 488 ) 47.41 Outstanding at September 30, 2020 10,694 $ 39.50 7.2 $ 117,826 Exercisable at September 30, 2020 5,204 $ 31.71 5.9 $ 93,761 Expected to vest at September 30, 2020 5,490 $ 46.85 8.4 $ 24,065 The intrinsic value of stock options exercised and the compensation cost related to stock options granted to employees and non-employees under our stock plans for the three and nine months ended September 30, 2020 and 2019, respectively was as follows: Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2020 2019 2020 2019 Intrinsic value of stock options exercised $ 23,268 $ 7,565 $ 39,425 $ 19,533 Stock-based compensation expense $ 7,020 $ 5,545 $ 21,138 $ 19,647 Net stock-based compensation capitalized into inventory ( 13 ) 86 197 255 Total stock-based compensation cost $ 7,007 $ 5,631 $ 21,335 $ 19,902 As of September 30, 2020, there was $ 62.0 million of unrecognized compensation expense related to unvested employee stock options that are expected to vest over a weighted average period of three years . |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2020 | |
INCOME TAXES [Abstract] | |
Income Taxes | NOTE 11. INCOME TAXES In computing our income tax provision, we make certain estimates and management judgments, such as estimated annual taxable income or loss, annual effective tax rate, the nature and timing of permanent and temporary differences between taxable income for financial reporting and tax reporting, and the recoverability of deferred tax assets. Our estimates and assumptions may change as new events occur, additional information is obtained, or as the tax environment changes. Should facts and circumstances change during a quarter causing a material change to the estimated effective income tax rate, a cumulative adjustment is recorded. The following table provides a summary of our effective tax rate for the three and nine months ended September 30, 2020 and 2019, respectively: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Effective income tax rate 16.8 % 18.1 % 22.5 % 19.1 % The change in the effective income tax rates for the three month period ended September 30, 2020 and 2019 is primarily a result of tax benefits due to an increase in stock option exercises in the current year. The change in the effective income tax rates for the nine month period ended September 30, 2020 and 2019 is primarily driven by the non-deductible expense of acquired IPR&D of $ 24.4 million, offset by tax benefits due to an increase in stock option exercises in the current year. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2020 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
Commitments and Contingencies | NOTE 12. COMMITMENTS AND CONTINGENCIES We are involved in a number of proceedings, legal actions, and claims arising in the ordinary course of business. Such matters are subject to many uncertainties, and the outcomes of these matters are not within our control and may not be known for prolonged periods of time. In some actions, the claimants seek damages, as well as other relief, including injunctions prohibiting us from engaging in certain activities, which, if granted, could require significant expenditures and/or result in lost revenues. We record a liability in the condensed consolidated financial statements for these actions when a loss is known or considered probable and the amount can be reasonably estimated. If the reasonable estimate of a known or probable loss is a range, and no amount within the range is a better estimate than any other, the minimum amount of the range is accrued. If a loss is reasonably possible but not known or probable, and can be reasonably estimated, the estimated loss or range of loss is disclosed. In most cases, significant judgment is required to estimate the amount and timing of a loss to be recorded. While it is not possible to predict the outcome for most of the matters discussed, we believe it is possible that costs associated with them could have a material adverse impact on our consolidated earnings, financial position or cash flows. L5 Litigation In December 2009, we filed suit in the Court of Common Pleas of Montgomery County, Pennsylvania against our former exclusive independent distributor L5 Surgical, LLC and its principals, seeking an injunction and declaratory judgment concerning certain restrictive covenants made to L5 by its sales representatives. L5 brought counterclaims against us alleging tortious interference, unfair competition and conspiracy. The injunction phase was resolved in September 2010 and the remaining claims were fully resolved through settlement by the parties on February 6, 2019. Moskowitz Family LLC Litigation On November 20, 2019, Moskowitz Family LLC filed suit against us in the U.S. District Court for the Western District of Texas for patent infringement. Moskowitz, a non-practicing entity, alleges that Globus willfully infringes one or more claims of eight patents by making, using, offering for sale or selling the COALITION ® , COALITION MIS ® , COALITION AGX ® , MONUMENT ® , MAGNIFY ® -S, HEDRON IA TM , HEDRON IC TM , INDEPENDENCE ® , INDEPENDENCE MIS ® , FORTIFY ® and XPAND ® families, SABLE TM , RISE ® , RISE ® INTRALIF, RISE ® -L, ELSA ® , ELSA ® ATP, RASS, ALTERA ® , ARIEL ® , LATIS ® , CALIBER ® and CALIBER ® -L products. Moskowitz seeks an unspecified amount in damages and injunctive relief. On July 2, 2020, this suit was transferred from the U.S. District Court for the Western District of Texas to the U.S. District Court for the Eastern District of Pennsylvania and was stayed on September 25, 2020 pending the outcome of earlier filed Inter Partes Reviews. The probable outcome of this litigation cannot be determined, nor can we estimate a range of potential loss. Therefore, in accordance with authoritative guidance on the evaluation of loss contingencies, we have not recorded an accrual related to this litigation. |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2020 | |
LEASES [Abstract] | |
Leases | NOTE 13. LEASES The Company leases certain equipment, vehicles, and facilities under operating leases. Certain leases contain options to extend terms beyond the lease termination date. In these leases, we use judgment to determine whether it is reasonably possible that we will extend the lease beyond the initial term and for how long. Leases that have terms of less than 12 months are treated as short-term and are not recognized as right of use assets or lease liabilities. As most leases do not provide an implicit rate, we use an incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. As of September 30, 2020, the Company’s short-term lease commitments and sublease income are immaterial. The Company classifies right-of-use assets as Other assets, short-term lease liabilities as Accrued expenses, and long-term lease liabilities as Other liabilities on the Condensed Consolidated Balance Sheet. Lease expense is recognized, on a straight-line basis over the term of the lease, as a component of operating income on the Condensed Consolidated Statement of Income. Amounts reported in the Condensed Consolidated Balance Sheet as of September 30, 2020 were as follows: (In thousands, except weighted average lease term and discount rate) Operating leases: Right of use assets $ 4,255 Lease liability - short term 1,645 Lease liability - long term 2,610 Total operating lease liability $ 4,255 Lease expense as of September 30, 2020 $ 2,652 Weighted-average remaining lease term - operating leases (in years) 3.2 Weighted-average discount rate 3.0 % Future minimum lease payments under non-cancellable leases as of September 30, 2020 are as follows: (In thousands) Operating Leases 2020 (excluding the nine months ended September 30, 2020) $ 526 2021 1,515 2022 1,231 2023 676 2024 506 2025 136 Total undiscounted leases payments $ 4,590 Less: imputed interest 335 Total lease liabilities $ 4,255 |
SEGMENT AND GEOGRAPHIC INFORMAT
SEGMENT AND GEOGRAPHIC INFORMATION | 9 Months Ended |
Sep. 30, 2020 | |
SEGMENT AND GEOGRAPHIC INFORMATION [Abstract] | |
Segment and Geographic Information | NOTE 14. SEGMENT AND GEOGRAPHIC INFORMATION Operating segments are defined as components of an enterprise for which separate discrete financial information is available and evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. We globally manage the business within one operating segment. Segment information is consistent with how management reviews the business, makes investing and resource allocation decisions and assesses operating performance. The following table represents total net sales by geographic area, based on the location of the customer for the three and nine months ended September 30, 2020 and 2019, respectively: Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2020 2019 2020 2019 United States $ 182,104 $ 162,697 $ 465,705 $ 470,224 International 33,994 33,518 89,892 103,477 Total net sales $ 216,098 $ 196,215 $ 555,597 $ 573,701 |
BACKGROUND AND SUMMARY OF SIG_2
BACKGROUND AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policy) | 9 Months Ended |
Sep. 30, 2020 | |
BACKGROUND AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying interim unaudited condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial statements and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in complete financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). As such, the information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying footnotes included in our Annual Report on Form 10-K for the year ended December 31, 2019. In the opinion of management, the statements include all adjustments necessary, which are of a normal and recurring nature, for the fair presentation of our financial position and of the results for the three and nine month periods presented. The results of operations for any interim period are not indicative of results for the full year. |
Principles of Consolidation | Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of Globus and its wholly-owned subsidiaries. All intercompany balances and transactions are eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. We base our estimates, in part, on historical experience that management believes to be reasonable under the circumstances. Actual results could differ from those estimates. Estimates and assumptions are periodically reviewed and the effects of revisions are reflected in the condensed consolidated financial statements in the period they are determined to be necessary. Significant areas that require management’s estimates include intangible assets, business acquisition liabilities, stock-based compensation, write-down for excess and obsolete inventory, useful lives of assets, the outcome of litigation, recoverability of intangible assets and income taxes. We are subject to risks and uncertainties due to changes in the healthcare environment, regulatory oversight, competition, and legislation that may cause actual results to differ from estimated results. |
Cash, Cash Equivalents, and Restricted Cash | Cash, Cash Equivalents, and Restricted Cash The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the statement of financial position that sum to the total of the same such amounts shown in the statement of cash flows: September 30, December 31, September 30, December 31, (In thousands) 2020 2019 2019 2018 Cash and cash equivalents $ 250,607 $ 195,474 $ 166,090 $ 139,647 Restricted cash — 250 100 100 Total cash, cash equivalents, and restricted cash as presented in the condensed consolidated statement of cash flows $ 250,607 $ 195,724 $ 166,190 $ 139,747 |
Marketable Securities | Marketable Securities Our marketable securities include municipal bonds, corporate debt securities, commercial paper, securities of government, federal agency, and other sovereign obligations, and asset-backed securities, and are classified as available-for-sale as of September 30, 2020 and December 31, 2019. Available-for-sale securities are recorded at fair value in both short-term and long-term marketable securities on our condensed consolidated balance sheets. The change in fair value for available-for-sale securities, that do not result in recognition or reversal of an allowance for credit loss or write-down, is recorded, net of taxes, as a component of accumulated other comprehensive income or loss on our condensed consolidated balance sheets. Premiums and discounts are recognized over the life of the related security as an adjustment to yield using the straight-line method. Realized gains or losses from the sale of our marketable securities are determined on a specific identification basis. Realized gains and losses, along with interest income and the amortization/accretion of premiums/discounts are included as a component of other income/(expense), on our condensed consolidated statements of income. Interest receivable is recorded as a component of prepaid expenses and other current assets on our condensed consolidated balance sheets. We maintain a portfolio of various holdings, types and maturities, though most of the securities in our portfolio could be liquidated at minimal cost at any time. We invest in securities that meet or exceed standards as defined in our investment policy. Our policy also limits the amount of credit exposure to any one issue, issuer or type of security. We review our securities for other-than-temporary impairment at each reporting period. If an unrealized loss for any security is expected, the loss will be recognized on an allowance basis, consistent with ASC 326-30, in our condensed consolidated statement of income in the period the determination is made. |
Fair Value Measurements | Fair Value Measurements Assets and Liabilities That Are Measured at Fair Value on a Recurring Basis Under the accounting for fair value measurements and disclosures, fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or the liability in an orderly transaction between market participants on the measurement date. Additionally, a fair value hierarchy was established that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable inputs. The level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Our assets and liabilities measured at fair value on a recurring basis are classified and disclosed in one of the following three categories: Level 1—quoted prices (unadjusted) in active markets for identical assets and liabilities; Level 2—observable inputs other than quoted prices in active markets for identical assets and liabilities; and Level 3—unobservable inputs in which there is little or no market data available, which require the reporting entity to use significant unobservable inputs or valuation techniques. Assets and Liabilities That Are Measured at Fair Value on a Nonrecurring Basis The purchase price of business acquisitions is primarily allocated to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values on the acquisition dates, with the excess recorded as goodwill. We utilize Level 3 inputs in the determination of the initial fair value. Non-financial assets such as goodwill, intangible assets, and property, plant, and equipment are subsequently measured at fair value when there is an indicator of impairment and recorded at fair value only when an impairment is recognized. We assess the impairment of intangible assets annually or whenever events or changes in circumstances indicate that the carrying amount of an intangible asset may not be recoverable. The fair value of our goodwill and intangible assets is not estimated if there is no change in events or circumstances that indicate the carrying amount of an intangible asset may not be recoverable. Contingent consideration represents our contingent milestone, performance and revenue-sharing payment obligations related to our acquisitions and is measured at fair value, based on significant inputs not observable in the market, which represents a Level 3 measurement within the fair value hierarchy. The valuation of contingent consideration uses assumptions we believe would be made by a market participant. We assess these assumptions on an ongoing basis as additional data impacting the assumptions is obtained. The balances of the fair value of contingent consideration are recognized within business acquisition liabilities on our condensed consolidated balance sheets, and the changes in the fair value of contingent consideration are recognized within acquisition related costs in the condensed consolidated statements of income. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined on a first-in, first-out basis. The majority of our inventories are finished goods and we utilize both in-house manufacturing and third-party suppliers to source our products. We periodically evaluate the carrying value of our inventories in relation to our estimated forecast of product demand, which takes into consideration the estimated life cycle of product releases. When quantities on hand exceed estimated sales forecasts, we record a write-down for such excess inventories. Once inventory has been written down, it creates a new cost basis for inventory that is not subsequently written up. |
Revenue Recognition | Revenue Recognition Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. Sales and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. For purposes of disclosing disaggregated revenue, we disaggregate our revenue into two categories, Musculoskeletal Solutions and Enabling Technologies. Our Musculoskeletal Solutions products consist primarily of the implantable devices, disposables, and unique instruments used in an expansive range of spine, orthopedic trauma, hip, knee and extremity procedures. The majority of our Musculoskeletal Solutions contracts have a single performance obligation and revenue is recognized at a point in time. Our Enabling Technologies products are the advanced hardware and software systems and related technologies that are designed to enhance a surgeon’s capabilities and streamline surgical procedures by making them less invasive, more accurate, and more reproducible to improve patient care. The majority of our Enabling Technologies product contracts typically contain multiple performance obligations, including maintenance and support, and revenue is recognized as we fulfill each performance obligation. For contracts with multiple performance obligations, we allocate the contract’s transaction price to each performance obligation using our best estimate of the standalone selling price of each distinct good or service in the contract. Our policy is to classify shipping and handling costs billed to customers as sales and the related expenses as cost of goods sold. Nature of Products and Services A significant portion of our Musculoskeletal Solutions product revenue is generated from consigned inventory maintained at hospitals or with sales representatives. Revenue from the sale of consigned musculoskeletal products is recognized when we transfer control, which occurs at the time the product is used or implanted. For all other Musculoskeletal Solutions product transactions, we recognize revenue when we transfer title to the goods, provided there are no remaining performance obligations that will affect the customer’s final acceptance of the sale. We use an observable price to determine the stand-alone selling price for the identified performance obligation. Revenue from the sale of Enabling Technologies products is generally recognized when control transfers to the customer which occurs at the time the product is shipped or delivered. Depending on the terms of the arrangement, we may also defer the recognition of a portion of the consideration received as we have to satisfy a future performance obligation to provide maintenance and support. We use an observable price to determine the stand-alone selling price for each separate performance obligation. Contract Balances Timing of revenue recognition may differ from the timing of invoicing to customers. We record a receivable when revenue is recognized prior to invoicing, or deferred revenue when revenue is recognized subsequent to invoicing. Deferred revenue is comprised mainly of unearned revenue related to the sales of certain Enabling Technologies products, which includes maintenance and support services. Deferred revenue is generally invoiced annually at the beginning of each contract period and recognized ratably over the coverage period. For the three and nine months ended September 30, 2020, there was an immaterial amount of revenue recognized from previously deferred revenue. Disaggregation of Revenue Net sales for the three and nine months ended September 30, 2020 and 2019, respectively included the following: Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2020 2019 2020 2019 Musculoskeletal Solutions products $ 207,063 $ 182,324 $ 533,085 $ 540,620 Enabling Technologies products 9,035 13,891 22,512 33,081 Total net sales $ 216,098 $ 196,215 $ 555,597 $ 573,701 |
Recently Issued Accounting Pronouncements & Recently Adopted Accounting Pronouncements | (k) Recently Issued Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”) , which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures. On March 12, 2020, the FASB issued ASU No. 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The ASU is effective for all entities as of March 12, 2020, and will apply through December 31, 2022. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures. Management does not believe that any other recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Company’s consolidated financial statements. (l) Recently Adopted Accounting Pronouncements In February 2016, the FASB released ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”). Under ASU 2016-02, a right-of-use asset and lease obligation will be recorded for all leases with terms greater than 12 months, whether operating or financing, while the income statement will reflect lease expense for operating leases and amortization/interest expense for financing leases. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, with early adoption permitted, and permits modified retrospective method or cumulative-effect adjustment method. We adopted the standard on January 1, 2019, using the cumulative-effect adjustment transition method. As part of the adoption, we elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed carry forward of historical lease classifications. The adoption of this standard did not have a material impact on our financial position and results of operations. See “Note 13. Leases” for more detail regarding our disclosures. In February 2018, the FASB released ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) , Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“ASU 2018-02”). Prior to ASU 2018-02, GAAP required the remeasurement of deferred tax assets and liabilities as a result of a change in tax laws or rates to be presented in net income from continuing operations, even in situations in which the related income tax effects of items in accumulated other comprehensive income were originally recognized in other comprehensive income. As a result, such items, referred to as stranded tax effects, did not reflect the appropriate tax rate. Under ASU 2018-02, entities are permitted, but not required, to reclassify from accumulated other comprehensive income to retained earnings those stranded tax effects resulting from the U.S. legislation commonly referred to as the Tax Cuts and Jobs Act enacted in December 2017 . ASU 2018-02 is effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. We adopted ASU 2018-02 on January 1, 2019. Adoption of the standard did not have a material impact on our financial position, results of operations and disclosures. In June 2018, the FASB released ASU 2018-07, Compensation—Stock Compensation (Topic 718) , (“ASU 2018-07”), which expanded the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. ASU 2018-07 specifies that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. This update is effective for public entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. We adopted ASU 2018-07 on January 1, 2019. Adoption of the standard did not have a material impact on our financial position, results of operations, and disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 replaces the incurred loss impairment methodology for measuring and recognizing credit losses with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This amendment is effective for fiscal years beginning after December 15, 2019. We adopted the updated guidance on January 1, 2020 on a prospective basis recording $ 0.5 million as a cumulative effect adjustment to retained earnings and as a result, prior period amounts were not adjusted. Adoption of the standard did not have a material impact on our financial position, results of operations, and disclosures. In January 2017, the FASB released ASU 2017-04, Intangibles - Goodwill and Other (Topic 805): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”), which eliminates the Step 2 calculation for the implied fair value of goodwill to measure a goodwill impairment charge. Under the updated standard, an entity will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. ASU 2017-04 does not change the guidance on completing Step 1 of the goodwill impairment test and still allows an entity to perform the optional qualitative goodwill impairment assessment before determining whether to proceed to Step 1. This update is effective for annual and interim goodwill impairment tests in fiscal years beginning after December 15, 2019 with early adoption permitted for any impairment test performed on testing dates after January 1, 2017. We adopted ASU 2017-04 on January 1, 2020. Adoption of the standard did not have a material impact on our financial position, results of operations, and disclosures. In August 2018, the FASB released ASU 2018-13, Fair Value Measurement (Topic 820) , (“ASU 2018-13”), which modifies the disclosure requirements on fair value measurements in Topic 820, including the consideration of costs and benefits. This update is effective for public entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. We adopted ASU 2018-13 on January 1, 2020. Adoption of the standard did not have a material impact on our financial position, results of operations, and disclosures |
BACKGROUND AND SUMMARY OF SIG_3
BACKGROUND AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
BACKGROUND AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Summary of Cash, Cash Equivalents, and Restricted Cash | September 30, December 31, September 30, December 31, (In thousands) 2020 2019 2019 2018 Cash and cash equivalents $ 250,607 $ 195,474 $ 166,090 $ 139,647 Restricted cash — 250 100 100 Total cash, cash equivalents, and restricted cash as presented in the condensed consolidated statement of cash flows $ 250,607 $ 195,724 $ 166,190 $ 139,747 |
Schedule of Disaggregation of Revenue | Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2020 2019 2020 2019 Musculoskeletal Solutions products $ 207,063 $ 182,324 $ 533,085 $ 540,620 Enabling Technologies products 9,035 13,891 22,512 33,081 Total net sales $ 216,098 $ 196,215 $ 555,597 $ 573,701 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
GOODWILL AND INTANGIBLE ASSETS [Abstract] | |
Summary of Intangible Assets | Intangible assets as of September 30, 2020 included the following: September 30, 2020 (In thousands) Weighted Average Amortization Period (in years) Gross Carrying Amount Accumulated Amortization Intangible Assets, net Supplier network 10.0 $ 4,000 $ ( 2,367 ) $ 1,633 Customer relationships & other intangibles 7.0 48,256 ( 29,506 ) 18,750 Developed technology 8.0 71,736 ( 16,745 ) 54,991 Patents 16.1 8,894 ( 2,474 ) 6,420 Total intangible assets $ 132,886 $ ( 51,092 ) $ 81,794 Due to the completion of contractual milestones related to the 2018 acquisition of Nemaris, in the first quarter of 2020, $ 13.0 million was capitalized to Developed technology and began to be amortized over a period of 5.4 years. Intangible assets as of December 31, 2019 included the following: December 31, 2019 (In thousands) Weighted Average Amortization Period (in years) Gross Carrying Amount Accumulated Amortization Intangible Assets, net Supplier network 10.0 4,000 ( 2,067 ) 1,933 Customer relationships & other intangibles 7.0 46,766 ( 24,264 ) 22,502 Developed technology 8.6 57,577 ( 10,189 ) 47,388 Patents 16.0 8,662 ( 1,673 ) 6,989 Total intangible assets $ 117,005 $ ( 38,193 ) $ 78,812 |
Summary of Goodwill | (In thousands) December 31, 2018 $ 123,734 Additions and adjustments 4,817 Foreign exchange 224 December 31, 2019 128,775 Additions and adjustments ( 123 ) Foreign exchange 1,010 September 30, 2020 $ 129,662 |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
MARKETABLE SECURITIES [Abstract] | |
Composition of Marketable Securities | Short-term and long-term marketable securities as of September 30, 2020 and December 31, 2019, respectively included the following: September 30, 2020 (In thousands) Contractual Maturity (in years) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-term: Municipal bonds Less than 1 $ 23,965 $ 191 $ — $ 24,156 Corporate debt securities Less than 1 99,461 849 — 100,310 Commercial paper Less than 1 7,984 15 — 7,999 Asset-backed securities Less than 1 13,962 106 — 14,068 Government, federal agency, and other sovereign obligations Less than 1 12,380 117 — 12,497 Total short-term marketable securities $ 157,752 $ 1,278 $ — $ 159,030 Long-term: Municipal bonds 1 - 2 $ 26,209 $ 561 $ — $ 26,770 Corporate debt securities 1 - 3 119,164 3,559 — 122,723 Asset-backed securities 1 - 2 123,778 2,316 — 126,094 Total long-term marketable securities $ 269,151 $ 6,436 $ — $ 275,587 December 31, 2019 (In thousands) Contractual Maturity (in years) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-term: Municipal bonds Less than 1 $ 7,840 $ 23 $ ( 1 ) $ 7,862 Corporate debt securities Less than 1 69,091 247 ( 3 ) 69,335 Commercial paper Less than 1 34,747 6 ( 1 ) 34,752 Asset-backed securities Less than 1 3,808 6 — 3,814 Total short-term marketable securities $ 115,486 $ 282 $ ( 5 ) $ 115,763 Long-term: Municipal bonds 1 - 3 $ 45,010 $ 254 $ ( 8 ) $ 45,256 Corporate debt securities 1 - 3 186,356 2,578 ( 5 ) 188,929 Asset-backed securities 1 - 3 161,347 1,583 ( 33 ) 162,897 Government, federal agency, and other sovereign obligations 1 - 2 12,366 66 — 12,432 Total long-term marketable securities $ 405,079 $ 4,481 $ ( 46 ) $ 409,514 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
Fair Value of Assets and Liabilities Measured on Recurring Basis | (In thousands) Balance at September 30, 2020 Level 1 Level 2 Level 3 Assets: Cash equivalents $ 96,953 $ 96,953 $ — $ — Municipal bonds 50,926 — 50,926 — Corporate debt securities 223,033 — 223,033 — Commercial paper 7,999 — 7,999 — Asset-backed securities 140,162 — 140,162 — Government, federal agency, and other sovereign obligations 12,497 — 12,497 — Liabilities: Business acquisition liabilities 4,548 — — 4,548 (In thousands) Balance at December 31, 2019 Level 1 Level 2 Level 3 Assets: Cash equivalents $ 18,218 $ 4,988 $ 13,230 $ — Municipal bonds 53,118 — 53,118 — Corporate debt securities 258,264 — 258,264 — Commercial paper 34,752 — 34,752 — Asset-backed securities 166,711 — 166,711 — Government, federal agency, and other sovereign obligations 12,432 — 12,432 — Liabilities: Business acquisition liabilities 9,549 — — 9,549 |
Recurring Level 3 Fair Value Measurements | (In thousands) Fair Value at September 30, 2020 Valuation technique Unobservable input Range Discount rate 8.5 % Revenue-based payments $ 4,548 Discounted cash flow Probability of payment 75 % - 100 % Projected year of payment 2020 - 2029 |
Rollforward of Contingent Consideration | The change in the carrying value of the business acquisition liabilities during the three and nine months ended September 30, 2020 and 2019, respectively included the following: Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2020 2019 2020 2019 Beginning balance $ 4,216 $ 9,304 $ 9,549 $ 10,118 Purchase price contingent consideration — — — 4,299 Changes resulting from foreign currency fluctuations — — — ( 9 ) Contingent payments ( 175 ) ( 463 ) ( 1,028 ) ( 6,096 ) Changes in fair value of business acquisition liabilities 507 50 970 579 Contractual payable reclassification — — ( 4,943 ) — Ending balance $ 4,548 $ 8,891 $ 4,548 $ 8,891 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
INVENTORIES [Abstract] | |
Schedule of Inventory | September 30, December 31, (In thousands) 2020 2019 Raw materials $ 34,198 $ 33,025 Work in process 19,314 15,940 Finished goods 178,346 147,349 Total inventories $ 231,858 $ 196,314 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
ACCRUED EXPENSES [Abstract] | |
Schedule of Accrued Expenses | Accrued expense as of September 30, 2020 and December 31, 2019, respectively included the following: September 30, December 31, (In thousands) 2020 2019 Compensation and other employee-related costs $ 37,579 $ 37,178 Legal and other settlements and expenses 960 1,538 Accrued non-income taxes 3,800 4,996 Royalties 2,656 2,370 Other 16,808 17,201 Total accrued expenses $ 61,803 $ 63,283 |
EQUITY (Tables)
EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Schedule of Shares Repurchased | (In thousands except for per share prices) Period Total number of shares repurchased Average Price Paid per Share Dollar amount of shares repurchased (1) Approximate dollar value of shares that may yet be purchased under the plan January 1, 2020 - March 31, 2020 1,920 $ 38.49 $ 73,902 $ 126,098 April 1, 2020 - June 30, 2020 771 39.95 30,804 95,294 July 1, 2020 - September 30,2020 — — — 95,294 January 1, 2020 - September 30, 2020 2,691 $ 38.91 $ 104,706 (1) Inclusive of an immaterial amount of commission fees |
Accumulated Other Comprehensive Income | (In thousands) Unrealized gain/(loss) on marketable securities, net of tax Foreign currency translation adjustments Accumulated other comprehensive loss Accumulated other comprehensive loss, net of tax, at December 31, 2019 $ 3,599 $ ( 6,497 ) $ ( 2,898 ) Other comprehensive (loss)/income before reclassifications 3,001 2,820 5,821 Amounts reclassified from accumulated other comprehensive income, net of tax ( 716 ) — ( 716 ) Other comprehensive (loss)/income, net of tax 2,285 2,820 5,105 Accumulated other comprehensive loss, net of tax, at September 30, 2020 $ 5,884 $ ( 3,677 ) $ 2,207 (In thousands) Unrealized gain/(loss) on marketable securities, net of tax Foreign currency translation adjustments Accumulated other comprehensive loss Accumulated other comprehensive loss, net of tax, at December 31, 2018 $ ( 168 ) $ ( 7,004 ) $ ( 7,172 ) Other comprehensive (loss)/income before reclassifications 5,266 319 5,585 Amounts reclassified from accumulated other comprehensive income, net of tax ( 1,239 ) — ( 1,239 ) Other comprehensive (loss)/income, net of tax 4,027 319 4,346 Accumulated other comprehensive loss, net of tax, at September 30, 2019 $ 3,859 $ ( 6,685 ) $ ( 2,826 ) |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
STOCK-BASED COMPENSATION [Abstract] | |
Grant Date Fair Values of Options Awarded to Employees | The weighted average grant date fair value per share of the options awarded to employees for the three and nine months ended September 30, 2020 and 2019, respectively were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Weighted average grant date fair value per share $ 16.98 $ 13.43 $ 14.54 $ 13.61 |
Summary of Stock Option Activity | Stock option activity during the nine months ended September 30, 2020 is summarized as follows: Option Shares (thousands) Weighted average exercise price Weighted average remaining contractual life (years) Aggregate intrinsic value (thousands) Outstanding at December 31, 2019 10,650 $ 35.80 Granted 2,071 52.43 Exercised ( 1,539 ) 28.69 Forfeited ( 488 ) 47.41 Outstanding at September 30, 2020 10,694 $ 39.50 7.2 $ 117,826 Exercisable at September 30, 2020 5,204 $ 31.71 5.9 $ 93,761 Expected to vest at September 30, 2020 5,490 $ 46.85 8.4 $ 24,065 |
Intrinsic Value and Stock-based Compensation Schedule | The intrinsic value of stock options exercised and the compensation cost related to stock options granted to employees and non-employees under our stock plans for the three and nine months ended September 30, 2020 and 2019, respectively was as follows: Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2020 2019 2020 2019 Intrinsic value of stock options exercised $ 23,268 $ 7,565 $ 39,425 $ 19,533 Stock-based compensation expense $ 7,020 $ 5,545 $ 21,138 $ 19,647 Net stock-based compensation capitalized into inventory ( 13 ) 86 197 255 Total stock-based compensation cost $ 7,007 $ 5,631 $ 21,335 $ 19,902 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
INCOME TAXES [Abstract] | |
Summary of Effective income tax rate | Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Effective income tax rate 16.8 % 18.1 % 22.5 % 19.1 % |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
LEASES [Abstract] | |
Schedule of Supplemental Balance Sheet Information Related to Leases | Amounts reported in the Condensed Consolidated Balance Sheet as of September 30, 2020 were as follows: (In thousands, except weighted average lease term and discount rate) Operating leases: Right of use assets $ 4,255 Lease liability - short term 1,645 Lease liability - long term 2,610 Total operating lease liability $ 4,255 Lease expense as of September 30, 2020 $ 2,652 Weighted-average remaining lease term - operating leases (in years) 3.2 Weighted-average discount rate 3.0 % |
Future Minimum Lease Payments | Future minimum lease payments under non-cancellable leases as of September 30, 2020 are as follows: (In thousands) Operating Leases 2020 (excluding the nine months ended September 30, 2020) $ 526 2021 1,515 2022 1,231 2023 676 2024 506 2025 136 Total undiscounted leases payments $ 4,590 Less: imputed interest 335 Total lease liabilities $ 4,255 |
SEGMENT AND GEOGRAPHIC INFORM_2
SEGMENT AND GEOGRAPHIC INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
SEGMENT AND GEOGRAPHIC INFORMATION [Abstract] | |
Schedule of Total Sales by Geographical Area | Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2020 2019 2020 2019 United States $ 182,104 $ 162,697 $ 465,705 $ 470,224 International 33,994 33,518 89,892 103,477 Total net sales $ 216,098 $ 196,215 $ 555,597 $ 573,701 |
BACKGROUND AND SUMMARY OF SIG_4
BACKGROUND AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) $ in Thousands | Sep. 30, 2020USD ($)item | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Total equity | $ (1,417,204) | $ (1,336,915) | $ (1,363,366) | $ (1,402,452) | $ (1,338,795) | $ (1,287,526) | $ (1,237,214) | $ (1,185,516) |
Minimum [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Number Of Products Launched Since Inception | item | 210 | |||||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Total equity | 468 | |||||||
Retained Earnings [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Total equity | $ (992,125) | $ (947,909) | $ (999,550) | (1,047,931) | $ (1,002,402) | $ (964,094) | $ (925,930) | $ (892,721) |
Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Total equity | $ 468 |
BACKGROUND AND SUMMARY OF SIG_5
BACKGROUND AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Summary of Cash, Cash Equivalents, and Restricted Cash) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
BACKGROUND AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ||||
Cash and cash equivalents | $ 250,607 | $ 195,474 | $ 166,090 | $ 139,647 |
Restricted cash | 250 | 100 | 100 | |
Total cash, cash equivalents, and restricted cash as presented in the condensed consolidated statement of cash flows | $ 250,607 | $ 195,724 | $ 166,190 | $ 139,747 |
BACKGROUND AND SUMMARY OF SIG_6
BACKGROUND AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 216,098 | $ 196,215 | $ 555,597 | $ 573,701 |
Musculoskeletal Solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 207,063 | 182,324 | 533,085 | 540,620 |
Enabling Technologies [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 9,035 | $ 13,891 | $ 22,512 | $ 33,081 |
ASSET ACQUISITIONS AND BUSINE_2
ASSET ACQUISITIONS AND BUSINESS COMBINATIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | |
Business Acquisition [Line Items] | |||
Acquired in-process research and development | $ 24,418 | ||
Synoste Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 25,300 | $ 25,300 | |
Payments to Acquire Businesses, Gross | 22,800 | ||
Business Acquisitions, Contractual Holdback Obligation Payable Period | 18 months | ||
Acquired in-process research and development | $ 24,400 | ||
Business Combination, Consideration Transferred, Liabilities Incurred | 2,500 | ||
Synoste Acquisition [Member] | Third Anniversary [Member] | |||
Business Acquisition [Line Items] | |||
Contingent consideration | 8,000 | 8,000 | |
Synoste Acquisition [Member] | Fourth Anniversary [Member] | |||
Business Acquisition [Line Items] | |||
Contingent consideration | 4,000 | 4,000 | |
StelKast Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | $ 15,300 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 4,200 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 3,900 | ||
Payments to Acquire Businesses, Gross | 23,800 | ||
Goodwill, Acquired During Period | 4,700 | ||
Business Combination, Consideration Transferred | 28,100 | ||
Contingent consideration | $ 4,300 | ||
Contingent consideration payment | $ 5,000 | ||
StelKast Acquisition [Member] | Financing Activity [Member] | |||
Business Acquisition [Line Items] | |||
Contingent consideration payment | 4,300 | ||
StelKast Acquisition [Member] | Operating Activity [Member] | |||
Business Acquisition [Line Items] | |||
Contingent consideration payment | $ 700 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
Developed Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived Intangible Assets, Period Increase (Decrease) | $ 13 | ||
Weighted average amortization period | 8 years | 8 years 7 months 6 days | |
In Process Research and Development [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average amortization period | 5 years 4 months 24 days |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS (Summary of Intangible Assets) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 132,886 | $ 117,005 |
Accumulated amortization | (51,092) | (38,193) |
Intangible Assets, net | $ 81,794 | $ 78,812 |
Supplier Network [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average amortization period | 10 years | 10 years |
Gross Carrying Amount | $ 4,000 | $ 4,000 |
Accumulated amortization | (2,367) | (2,067) |
Intangible Assets, net | $ 1,633 | $ 1,933 |
Customer Relationships & Other Intangibles [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average amortization period | 7 years | 7 years |
Gross Carrying Amount | $ 48,256 | $ 46,766 |
Accumulated amortization | (29,506) | (24,264) |
Intangible Assets, net | $ 18,750 | $ 22,502 |
Developed Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average amortization period | 8 years | 8 years 7 months 6 days |
Gross Carrying Amount | $ 71,736 | $ 57,577 |
Accumulated amortization | (16,745) | (10,189) |
Intangible Assets, net | $ 54,991 | $ 47,388 |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average amortization period | 16 years 1 month 6 days | 16 years |
Gross Carrying Amount | $ 8,894 | $ 8,662 |
Accumulated amortization | (2,474) | (1,673) |
Intangible Assets, net | $ 6,420 | $ 6,989 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS (Summary of Goodwill) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
GOODWILL AND INTANGIBLE ASSETS [Abstract] | ||
Goodwill, Beginning Balance | $ 128,775 | $ 123,734 |
Additions and adjustments | (123) | 4,817 |
Foreign exchange | 1,010 | 224 |
Goodwill, Ending Balance | $ 129,662 | $ 128,775 |
MARKETABLE SECURITIES (Composit
MARKETABLE SECURITIES (Composition of Marketable Securities) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Short-term Investments [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 157,752 | $ 115,486 |
Gross Unrealized Gains | 1,278 | 282 |
Gross Unrealized Loss | (5) | |
Fair Value | 159,030 | 115,763 |
Short-term Investments [Member] | Municipal Bonds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 23,965 | 7,840 |
Gross Unrealized Gains | 191 | 23 |
Gross Unrealized Loss | (1) | |
Fair Value | $ 24,156 | $ 7,862 |
Short-term Investments [Member] | Municipal Bonds [Member] | Maximum [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Contractual Maturity | 1 year | 1 year |
Short-term Investments [Member] | Corporate Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 99,461 | $ 69,091 |
Gross Unrealized Gains | 849 | 247 |
Gross Unrealized Loss | (3) | |
Fair Value | $ 100,310 | $ 69,335 |
Short-term Investments [Member] | Corporate Debt Securities [Member] | Maximum [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Contractual Maturity | 1 year | 1 year |
Short-term Investments [Member] | Commercial Paper [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 7,984 | $ 34,747 |
Gross Unrealized Gains | 15 | 6 |
Gross Unrealized Loss | (1) | |
Fair Value | $ 7,999 | $ 34,752 |
Short-term Investments [Member] | Commercial Paper [Member] | Maximum [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Contractual Maturity | 1 year | 1 year |
Short-term Investments [Member] | Asset-backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 12,380 | $ 3,808 |
Gross Unrealized Gains | 117 | 6 |
Fair Value | $ 12,497 | $ 3,814 |
Short-term Investments [Member] | Asset-backed Securities [Member] | Maximum [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Contractual Maturity | 1 year | 1 year |
Short-term Investments [Member] | Government, Federal Agency, And Other Sovereign Obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 13,962 | |
Gross Unrealized Gains | 106 | |
Fair Value | $ 14,068 | |
Short-term Investments [Member] | Government, Federal Agency, And Other Sovereign Obligations [Member] | Maximum [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Contractual Maturity | 1 year | |
Other Long-term Investments [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 269,151 | $ 405,079 |
Gross Unrealized Gains | 6,436 | 4,481 |
Gross Unrealized Loss | (46) | |
Fair Value | 275,587 | 409,514 |
Other Long-term Investments [Member] | Municipal Bonds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 26,209 | 45,010 |
Gross Unrealized Gains | 561 | 254 |
Gross Unrealized Loss | (8) | |
Fair Value | $ 26,770 | $ 45,256 |
Other Long-term Investments [Member] | Municipal Bonds [Member] | Minimum [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Contractual Maturity | 1 year | 1 year |
Other Long-term Investments [Member] | Municipal Bonds [Member] | Maximum [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Contractual Maturity | 2 years | 3 years |
Other Long-term Investments [Member] | Corporate Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 119,164 | $ 186,356 |
Gross Unrealized Gains | 3,559 | 2,578 |
Gross Unrealized Loss | (5) | |
Fair Value | $ 122,723 | $ 188,929 |
Other Long-term Investments [Member] | Corporate Debt Securities [Member] | Minimum [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Contractual Maturity | 1 year | 1 year |
Other Long-term Investments [Member] | Corporate Debt Securities [Member] | Maximum [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Contractual Maturity | 3 years | 3 years |
Other Long-term Investments [Member] | Asset-backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 123,778 | $ 161,347 |
Gross Unrealized Gains | 2,316 | 1,583 |
Gross Unrealized Loss | (33) | |
Fair Value | $ 126,094 | $ 162,897 |
Other Long-term Investments [Member] | Asset-backed Securities [Member] | Minimum [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Contractual Maturity | 1 year | 1 year |
Other Long-term Investments [Member] | Asset-backed Securities [Member] | Maximum [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Contractual Maturity | 2 years | 3 years |
Other Long-term Investments [Member] | Government, Federal Agency, And Other Sovereign Obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 12,366 | |
Gross Unrealized Gains | 66 | |
Fair Value | $ 12,432 | |
Other Long-term Investments [Member] | Government, Federal Agency, And Other Sovereign Obligations [Member] | Minimum [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Contractual Maturity | 1 year | |
Other Long-term Investments [Member] | Government, Federal Agency, And Other Sovereign Obligations [Member] | Maximum [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Contractual Maturity | 2 years |
FAIR VALUE MEASUREMENTS (Fair V
FAIR VALUE MEASUREMENTS (Fair Value of Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Inputs, Level 3 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Business acquisition liabilities | $ 4,548 | $ 4,216 | $ 9,549 | $ 8,891 | $ 9,304 | $ 10,118 |
Fair Value, Measurements, Recurring [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cash equivalents | 96,953 | 18,218 | ||||
Business acquisition liabilities | 4,548 | 9,549 | ||||
Fair Value, Measurements, Recurring [Member] | Municipal Bonds [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities | 50,926 | 53,118 | ||||
Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities | 223,033 | 258,264 | ||||
Fair Value, Measurements, Recurring [Member] | Commercial Paper [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities | 7,999 | 34,752 | ||||
Fair Value, Measurements, Recurring [Member] | Asset-backed Securities [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities | 140,162 | 166,711 | ||||
Fair Value, Measurements, Recurring [Member] | Government, Federal Agency, And Other Sovereign Obligations [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities | 12,497 | 12,432 | ||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cash equivalents | 96,953 | 4,988 | ||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cash equivalents | 13,230 | |||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Municipal Bonds [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities | 50,926 | 53,118 | ||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities | 223,033 | 258,264 | ||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Commercial Paper [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities | 7,999 | 34,752 | ||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Asset-backed Securities [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities | 140,162 | 166,711 | ||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Government, Federal Agency, And Other Sovereign Obligations [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities | 12,497 | 12,432 | ||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Business acquisition liabilities | $ 4,548 | $ 9,549 |
FAIR VALUE MEASUREMENTS (Recurr
FAIR VALUE MEASUREMENTS (Recurring Level 3 Fair Value Measurements) (Details) - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Thousands | 9 Months Ended | |||||
Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Business acquisition liabilities | $ 4,548 | $ 4,216 | $ 9,549 | $ 8,891 | $ 9,304 | $ 10,118 |
Maximum [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Probability of payment | 100.00% | |||||
Projected year of payment | 2029 | |||||
Minimum [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Probability of payment | 75.00% | |||||
Projected year of payment | 2020 | |||||
Measurement Input, Discount Rate [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Discount Rate | 8.50% |
FAIR VALUE MEASUREMENTS (Rollfo
FAIR VALUE MEASUREMENTS (Rollforward of Contingent Consideration) (Details) - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Business acquisition liabilities, beginning balance | $ 4,216 | $ 9,304 | $ 9,549 | $ 10,118 |
Purchase price contingent consideration | 4,299 | |||
Changes resulting from foreign currency fluctuations | (9) | |||
Contingent payments | (175) | (463) | (1,028) | (6,096) |
Changes in fair value of business acquisition liabilities | 507 | 50 | 970 | 579 |
Contractual payable reclassification | (4,943) | |||
Business acquisition liabilities, ending balance | $ 4,548 | $ 8,891 | $ 4,548 | $ 8,891 |
INVENTORIES (Narrative) (Detail
INVENTORIES (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
INVENTORIES [Abstract] | |||||
Net adjustment to cost of sales related to excess and obsolete inventory | $ 5.2 | $ (0.6) | $ 12.4 | $ 1.9 | |
Excess and obsolete related provisions | 7.9 | 1.2 | 18.9 | 7.8 | |
Inventory sales and disposals related provisions | $ 2.7 | $ 1.8 | $ 6.5 | $ 5.9 | |
Inventory, recall accrual | $ 1.3 | ||||
Costs associated with recall related to Cost of Goods Sold | $ 1 |
INVENTORIES (Schedule of Invent
INVENTORIES (Schedule of Inventory) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
INVENTORIES [Abstract] | ||
Raw materials | $ 34,198 | $ 33,025 |
Work in process | 19,314 | 15,940 |
Finished goods | 178,346 | 147,349 |
Total inventories | $ 231,858 | $ 196,314 |
ACCRUED EXPENSES (Schedule of A
ACCRUED EXPENSES (Schedule of Accrued Expenses) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
ACCRUED EXPENSES [Abstract] | ||
Compensation and other employee-related costs | $ 37,579 | $ 37,178 |
Legal and other settlements and expenses | 960 | 1,538 |
Accrued non-income taxes | 3,800 | 4,996 |
Royalties | 2,656 | 2,370 |
Other | 16,808 | 17,201 |
Total accrued expenses | $ 61,803 | $ 63,283 |
DEBT (Narrative) (Details)
DEBT (Narrative) (Details) - USD ($) $ in Millions | Aug. 06, 2020 | Sep. 30, 2020 | May 31, 2020 | Jun. 30, 2018 | May 31, 2011 |
Federal Funds Effective Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility, basis spread on variable rate | 0.50% | ||||
Citizens Bank [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility, maximum borrowing capacity | $ 125 | ||||
Line of credit facility, expiration date | Aug. 5, 2021 | ||||
Citizens Bank [Member] | LIBOR [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility, basis spread on variable rate | 1.00% | ||||
Wells Fargo Bank [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility, current borrowing capacity | $ 125 | $ 50 | $ 50 | ||
Credit facility, maximum borrowing capacity | 150 | ||||
Letter of Credit [Member] | Citizens Bank [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility, maximum borrowing capacity | $ 25 | ||||
Letter of Credit [Member] | Wells Fargo Bank [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility, maximum borrowing capacity | $ 25 |
EQUITY (Narrative) (Details)
EQUITY (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Mar. 11, 2020 | Dec. 31, 2019 |
Class of Stock [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | $ 200,000 | ||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 95,294 | $ 95,294 | $ 126,098 | ||
Common stock, shares authorized | 775,000,000 | ||||
Common Class A [Member] | |||||
Class of Stock [Line Items] | |||||
Common stock, shares authorized | 500,000,000 | 500,000,000 | |||
Common Class B [Member] | |||||
Class of Stock [Line Items] | |||||
Common stock, shares authorized | 275,000,000 | 275,000,000 |
EQUITY (Schedule of Shares Repu
EQUITY (Schedule of Shares Repurchased) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2020 | ||
Equity [Abstract] | ||||
Total number of shares repurchased | 771 | 1,920 | 2,691 | |
Average Price Paid per Share | $ 39.95 | $ 38.49 | $ 38.91 | |
Dollar amount of shares repurchased | [1] | $ 30,804 | $ 73,902 | $ 104,706 |
Approximate dollar value of shares that may yet be purchased under the plan | $ 95,294 | $ 126,098 | $ 95,294 | |
[1] | Inclusive of an immaterial amount of commission fees |
EQUITY (Accumulated Other Compr
EQUITY (Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss, net of tax | $ (2,898) | $ (7,172) | ||
Other comprehensive (loss)/income before reclassifications | 5,821 | 5,585 | ||
Amounts reclassified from accumulated other comprehensive income, net of tax | (716) | (1,239) | ||
Total other comprehensive income/(loss) | $ 909 | $ (1,098) | 5,105 | 4,346 |
Accumulated other comprehensive loss, net of tax | 2,207 | (2,826) | 2,207 | (2,826) |
Unrealized Gain/(Loss) On Marketable Securities, Net Of Tax [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss, net of tax | 3,599 | (168) | ||
Other comprehensive (loss)/income before reclassifications | 3,001 | 5,266 | ||
Amounts reclassified from accumulated other comprehensive income, net of tax | (716) | (1,239) | ||
Total other comprehensive income/(loss) | 2,285 | 4,027 | ||
Accumulated other comprehensive loss, net of tax | 5,884 | 3,859 | 5,884 | 3,859 |
Foreign Currency Translation Adjustments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss, net of tax | (6,497) | (7,004) | ||
Other comprehensive (loss)/income before reclassifications | 2,820 | 319 | ||
Total other comprehensive income/(loss) | 2,820 | 319 | ||
Accumulated other comprehensive loss, net of tax | $ (3,677) | $ (6,685) | $ (3,677) | $ (6,685) |
STOCK-BASED COMPENSATION (Narra
STOCK-BASED COMPENSATION (Narrative) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($)ShareBasedCompensationPlanshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of stock plans | ShareBasedCompensationPlan | 3 |
Employee Stock Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 4 years |
Unrecognized compensation expense, unvested stock options | $ | $ 62 |
Weighted average period of recognition, unvested stock options | 3 years |
Maximum contractual term | 10 years |
2012 Equity Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Base number of shares that may be issuable under stock plan | 3,076,923 |
2012 Equity Incentive Plan [Member] | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares available for grant | 10,769,230 |
Annual percentage limit for incremental shares that may be issued | 3.00% |
2012 Equity Incentive Plan [Member] | Common Class A [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares available for grant | 2,206,992 |
Shares reserved under the 2012 Equity Incentive Plan | 17,899,947 |
STOCK-BASED COMPENSATION (Grant
STOCK-BASED COMPENSATION (Grant Date Fair Values of Options Awarded to Employees) (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
STOCK-BASED COMPENSATION [Abstract] | ||||
Weighted average grant date fair value per share | $ 16.98 | $ 13.43 | $ 14.54 | $ 13.61 |
STOCK-BASED COMPENSATION (Summa
STOCK-BASED COMPENSATION (Summary of Stock Option Activity) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Number of shares outstanding beginning balance | 10,650 |
Number of shares granted | 2,071 |
Number of shares exercised | (1,539) |
Number of shares forfeited | (488) |
Number of shares outstanding ending balance | 10,694 |
Number of shares exercisable | 5,204 |
Number of shares expected to vest | 5,490 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | |
Weighted average exercise price per share outstanding beginning balance | $ 35.80 |
Weighted average exercise price per share granted | 52.43 |
Weighted average exercise price per share exercised | 28.69 |
Weighted average exercise price per share forfeited | 47.41 |
Weighted average exercise price per share outstanding ending balance | 39.50 |
Weighted average exercise price per share exercisable | 31.71 |
Weighted average exercise price per share expected to vest | $ 46.85 |
Weighted average remaining contractual life outstanding | 7 years 2 months 12 days |
Weighted average remaining contractual life exercisable | 5 years 10 months 24 days |
Weighted average remaining contractual life expected to vest | 8 years 4 months 24 days |
Aggregate intrinsic value outstanding | $ 117,826 |
Aggregate intrinsic value exercisable | 93,761 |
Aggregate intrinsic value expected to vest | $ 24,065 |
STOCK-BASED COMPENSATION (Intri
STOCK-BASED COMPENSATION (Intrinsic Value and Stock-based Compensation Schedule) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
STOCK-BASED COMPENSATION [Abstract] | ||||
Intrinsic value of stock options exercised | $ 23,268 | $ 7,565 | $ 39,425 | $ 19,533 |
Stock-based compensation expense | 7,020 | 5,545 | 21,138 | 19,647 |
Net stock-based compensation capitalized into inventory | (13) | 86 | 197 | 255 |
Total stock-based compensation cost | $ 7,007 | $ 5,631 | $ 21,335 | $ 19,902 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
INCOME TAXES [Abstract] | |
Acquired in-process research and development | $ 24,418 |
INCOME TAXES (Summary of Effect
INCOME TAXES (Summary of Effective income tax rate) (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
INCOME TAXES [Abstract] | ||||
Effective income tax rate | 16.80% | 18.10% | 22.50% | 19.10% |
LEASES (Narrative) (Details)
LEASES (Narrative) (Details) | Sep. 30, 2020 |
LEASES [Abstract] | |
Lessee, Operating Lease, Term of Contract | 12 months |
LEASES (Schedule of Supplementa
LEASES (Schedule of Supplemental Balance Sheet Information Related to Leases) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
LEASES [Abstract] | |
Right of use assets | $ 4,255 |
Lease liability - short term | 1,645 |
Lease liability - long term | 2,610 |
Total operating lease liability | 4,255 |
Lease expense as of September 30, 2020 | $ 2,652 |
Weighted-average remaining lease term - operating leases (in years) | 3 years 2 months 12 days |
Weighted-average discount rate | 3.00% |
LEASES (Future Minimum Lease Pa
LEASES (Future Minimum Lease Payments) (Details) $ in Thousands | Sep. 30, 2020USD ($) |
LEASES [Abstract] | |
2020 (excluding the nine months ended September 30, 2020) | $ 526 |
2021 | 1,515 |
2022 | 1,231 |
2023 | 676 |
2024 | 506 |
2025 | 136 |
Total undiscounted lease payments | 4,590 |
Less : imputed interest | 335 |
Total lease liabilities | $ 4,255 |
SEGMENT AND GEOGRAPHIC INFORM_3
SEGMENT AND GEOGRAPHIC INFORMATION (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2020segment | |
SEGMENT AND GEOGRAPHIC INFORMATION [Abstract] | |
Number of operating segments | 1 |
SEGMENT AND GEOGRAPHIC INFORM_4
SEGMENT AND GEOGRAPHIC INFORMATION (Schedule of Total Sales by Geographical Area) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | $ 216,098 | $ 196,215 | $ 555,597 | $ 573,701 |
United States [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 182,104 | 162,697 | 465,705 | 470,224 |
International [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | $ 33,994 | $ 33,518 | $ 89,892 | $ 103,477 |