Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 16, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | CONMED CORP | ||
Entity Central Index Key | 816956 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Entity Common Stock, Shares Outstanding | 27,568,736 | ||
Entity Public Float | $1,207,096,541 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Cash and cash equivalents | $66,332 | $54,443 |
Accounts receivable, less allowance for doubtful accounts of $1,239 in 2014 and $1,384 in 2013 | 129,287 | 140,426 |
Inventories | 148,149 | 143,211 |
Income taxes receivable | 583 | 3,805 |
Deferred income taxes | 14,348 | 13,202 |
Prepaid expenses and other current assets | 22,451 | 17,045 |
Total current assets | 381,150 | 372,132 |
Property, plant and equipment, net | 133,429 | 138,985 |
Deferred income taxes | 1,398 | 1,183 |
Goodwill | 256,232 | 248,428 |
Other intangible assets, net | 316,440 | 319,440 |
Other assets | 9,545 | 10,340 |
Total assets | 1,098,194 | 1,090,508 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Current portion of long-term debt | 1,234 | 1,140 |
Accounts payable | 23,752 | 27,448 |
Accrued compensation and benefits | 36,446 | 33,426 |
Income taxes payable | 2,668 | 2,116 |
Other current liabilities | 51,856 | 47,135 |
Total current liabilities | 115,956 | 111,265 |
Long-term debt | 240,201 | 214,435 |
Deferred income taxes | 112,223 | 113,199 |
Other long-term liabilities | 48,516 | 45,290 |
Total liabilities | 516,896 | 484,189 |
Commitments and contingencies | ||
Preferred stock, par value $.01 per share; authorized 500,000 shares, none issued or outstanding | 0 | 0 |
Common stock, par value $.01 per share; 100,000,000 authorized; 31,299,194 issued in 2014 and 2013, respectively | 313 | 313 |
Paid-in capital | 319,752 | 326,436 |
Retained earnings | 406,145 | 395,889 |
Accumulated other comprehensive loss | -39,822 | -17,572 |
Less: Treasury stock, at cost; 3,744,473 and 3,718,332 shares in 2014 and 2013, respectively | -105,090 | -98,747 |
Total shareholders' equity | 581,298 | 606,319 |
Total liabilities and shareholders' equity | $1,098,194 | $1,090,508 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Allowance for doubtful accounts | $1,239 | $1,384 |
Preferred stock, par value (per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (per share) | $0.01 | $0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 31,299,194 | 31,299,194 |
Treasury stock, shares | 3,744,473 | 3,718,332 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net sales | $740,055 | $762,704 | $767,140 |
Cost of sales | 335,998 | 350,287 | 361,297 |
Gross profit | 404,057 | 412,417 | 405,843 |
Selling and administrative expense | 293,942 | 310,730 | 302,469 |
Research and development expense | 27,779 | 25,831 | 28,214 |
Medical device excise tax | 5,588 | 5,949 | 0 |
Other expense | 23,962 | 13,399 | 9,950 |
Total operating expenses | 351,271 | 355,909 | 340,633 |
Income from operations | 52,786 | 56,508 | 65,210 |
Loss on early extinguishment of debt | 0 | 263 | 0 |
Interest expense | 6,111 | 5,613 | 5,730 |
Income before income taxes | 46,675 | 50,632 | 59,480 |
Provision for income taxes | 14,483 | 14,693 | 18,999 |
Net income | 32,192 | 35,939 | 40,481 |
Earnings per share: | |||
Basic (per share) | $1.17 | $1.30 | $1.43 |
Diluted (per share) | $1.16 | $1.28 | $1.41 |
Dividends per share of common stock | $0.80 | $0.65 | $0.60 |
Other comprehensive income (loss), before tax: | |||
Foreign currency translation adjustments | -15,069 | -1,193 | 1,995 |
Pension liability | -18,781 | 18,175 | 1,387 |
Cash flow hedging gain (loss) | 7,393 | -404 | -6,507 |
Other comprehensive income, before tax | 5,735 | 52,517 | 37,356 |
Provision (benefit) for income taxes related to items of other comprehensive income | -4,207 | 6,569 | -1,892 |
Comprehensive income | $9,942 | $45,948 | $39,248 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Common Stock [Member] | Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Stock [Member] |
In Thousands, unless otherwise specified | ||||||
Balance at Dec. 31, 2011 | $573,071 | $313 | $321,994 | $354,439 | ($26,348) | ($77,327) |
Balance (shares) at Dec. 31, 2011 | 31,299 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock issued under employee plans | 8,910 | -4,377 | 13,287 | |||
Repurchase of treasury stock | -3,923 | -3,923 | ||||
Tax benefit arising from common stock issued under employee plans | 1,052 | 1,052 | ||||
Stock-based compensation | 5,653 | 5,653 | ||||
Dividends on common stock | -17,013 | -17,013 | ||||
Comprehensive income (loss): | ||||||
Foreign currency translation adjustments | 1,995 | |||||
Pension liability (net of income tax expense/benefit) | 875 | |||||
Cash flow hedging gain (loss) (net of income tax expense/benefit) | -4,103 | |||||
Net income | 40,481 | 40,481 | ||||
Comprehensive income | 39,248 | |||||
Balance at Dec. 31, 2012 | 606,998 | 313 | 324,322 | 377,907 | -27,581 | -67,963 |
Balance (shares) at Dec. 31, 2012 | 31,299 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock issued under employee plans | 15,196 | -4,576 | 19,772 | |||
Repurchase of treasury stock | -50,556 | -50,556 | ||||
Tax benefit arising from common stock issued under employee plans | 1,097 | 1,097 | ||||
Stock-based compensation | 5,593 | 5,593 | ||||
Dividends on common stock | -17,957 | -17,957 | ||||
Comprehensive income (loss): | ||||||
Foreign currency translation adjustments | -1,193 | |||||
Pension liability (net of income tax expense/benefit) | 11,457 | |||||
Cash flow hedging gain (loss) (net of income tax expense/benefit) | -255 | |||||
Net income | 35,939 | 35,939 | ||||
Comprehensive income | 45,948 | |||||
Balance at Dec. 31, 2013 | 606,319 | 313 | 326,436 | 395,889 | -17,572 | -98,747 |
Balance (shares) at Dec. 31, 2013 | 31,299 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock issued under employee plans | -6,139 | -16,658 | 10,519 | |||
Repurchase of treasury stock | -16,862 | -16,862 | ||||
Tax benefit arising from common stock issued under employee plans | 644 | 644 | ||||
Stock-based compensation | 9,330 | 9,330 | ||||
Dividends on common stock | -21,936 | -21,936 | ||||
Comprehensive income (loss): | ||||||
Foreign currency translation adjustments | -15,069 | |||||
Pension liability (net of income tax expense/benefit) | -11,842 | |||||
Cash flow hedging gain (loss) (net of income tax expense/benefit) | 4,661 | |||||
Net income | 32,192 | 32,192 | ||||
Comprehensive income | 9,942 | |||||
Balance at Dec. 31, 2014 | $581,298 | $313 | $319,752 | $406,145 | ($39,822) | ($105,090) |
Balance (shares) at Dec. 31, 2014 | 31,299 |
Consolidated_Statements_of_Sha1
Consolidated Statements of Shareholder's Equity (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Stockholders' Equity [Abstract] | |||
Pension liability, income tax expense (benefit) | ($6,939) | $6,718 | $512 |
Cash flow hedging gain (loss), income tax expense (benefit) | $2,732 | ($149) | ($2,404) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income | $32,192 | $35,939 | $40,481 |
Adjustments to reconcile net income to net cash provided by operating acitivites: | |||
Depreciation | 19,792 | 18,653 | 18,635 |
Amortization | 25,942 | 29,214 | 27,981 |
Stock-based compensation | 9,330 | 5,593 | 5,653 |
Deferred income taxes | -284 | 7,218 | 12,946 |
Income tax benefit of stock option exercises | 644 | 1,097 | 1,052 |
Excess tax benefit from stock option exercises | -922 | -1,518 | -1,206 |
Loss on early extinguishment of debt | 0 | 263 | 0 |
Increase (decrease) in cash flows from changes in assets and liabilities, net of effects from acquisitions: | |||
Accounts receivable | 5,255 | -798 | 1,687 |
Inventories | -20,940 | -1,817 | 3,810 |
Accounts payable | -3,449 | 4,223 | 259 |
Income taxes | 5,291 | -1,098 | -6,497 |
Accrued compensation and benefits | 3,572 | -71 | 767 |
Other assets | -546 | -5,222 | -1,210 |
Other liabilities | -10,701 | -10,727 | -9,159 |
Total operating | 32,984 | 45,010 | 54,718 |
Net cash provided by operating activities | 65,176 | 80,949 | 95,199 |
Cash flows from investing activities: | |||
Payments related to business acquisitions and distribution agreements, net of cash acquired | -5,265 | 0 | -86,253 |
Proceeds from sale of property | 0 | 0 | 1,836 |
Purchases of property, plant and equipment | -15,411 | -18,445 | -21,532 |
Net cash used in investing activities | -20,676 | -18,445 | -105,949 |
Cash flows from financing activities: | |||
Net proceeds from common stock issued under employee plans | 2,316 | 17,264 | 10,165 |
Repurchase of common stock | -16,862 | -50,556 | -3,923 |
Excess tax benefit from stock option exercises | 922 | 1,518 | 1,206 |
Payments on senior credit agreement | 0 | 0 | -53,588 |
Proceeds of senior credit agreement | 27,000 | 55,000 | 73,000 |
Payments related to distribution agreement | -16,667 | -34,000 | 0 |
Payments on mortgage notes | -1,140 | -1,050 | -969 |
Payments on senior subordinated notes | 0 | -227 | -100 |
Payments related to issuance of debt | 0 | -1,725 | 0 |
Dividends paid on common stock | -21,959 | -16,696 | -12,862 |
Other, net | 0 | -824 | -1,576 |
Net cash provided by (used in) financing activities | -26,390 | -31,296 | 11,353 |
Effect of exchange rate changes on cash and cash equivalents | -6,221 | -485 | -2,931 |
Net increase (decrease) in cash and cash equivalents | 11,889 | 30,723 | -2,328 |
Cash and cash equivalents at beginning of year | 54,443 | 23,720 | 26,048 |
Cash and cash equivalents at end of year | 66,332 | 54,443 | 23,720 |
Non-cash investing and financing activities: | |||
Contractual obligations for acquisition of a business | 10,137 | 0 | 0 |
Dividends payable | 5,510 | 5,545 | 4,256 |
Cash paid during the year for: | |||
Interest | 5,532 | 5,143 | 5,038 |
Income taxes | $10,206 | $6,837 | $10,953 |
Operations_and_Significant_Acc
Operations and Significant Accounting Policies | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||
Operations and Significant Accounting Policies | Operations and Significant Accounting Policies | |||||||||||||||
Organization and operations | ||||||||||||||||
CONMED Corporation (“CONMED”, the “Company”, “we” or “us”) is a medical technology company with an emphasis on surgical devices and equipment for minimally invasive procedures and monitoring. The Company’s products are used by surgeons and physicians in a variety of specialties including orthopedics, general surgery, gynecology, neurosurgery and gastroenterology. | ||||||||||||||||
Principles of consolidation | ||||||||||||||||
The consolidated financial statements include the accounts of CONMED Corporation and its controlled subsidiaries. All significant intercompany accounts and transactions have been eliminated. | ||||||||||||||||
Use of estimates | ||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and judgments which affect the reported amounts of assets, liabilities, related disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Estimates are used in accounting for, among other things, allowances for doubtful accounts, rebates and sales allowances, inventory allowances, purchased in-process research and development, pension benefits, goodwill and intangible assets, contingent consideration, contingencies and other accruals. We base our estimates on historical experience and on various other assumptions which are believed to be reasonable under the circumstances. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may differ from those estimates. Estimates and assumptions are reviewed periodically, and the effect of revisions is reflected in the consolidated financial statements in the period they are determined to be necessary. | ||||||||||||||||
Cash and cash equivalents | ||||||||||||||||
We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. | ||||||||||||||||
Inventories | ||||||||||||||||
Inventories are valued at the lower of cost or market. Cost is determined on the FIFO (first-in, first-out) method of accounting. | ||||||||||||||||
We write-off excess and obsolete inventory resulting from the inability to sell our products at prices in excess of current carrying costs. We make estimates regarding the future recoverability of the costs of our products and record a provision for excess and obsolete inventories based on historical experience and expected future trends. | ||||||||||||||||
Property, plant and equipment | ||||||||||||||||
Property, plant and equipment are stated at cost and depreciated using the straight-line method over the following estimated useful lives: | ||||||||||||||||
Building and improvements | 12 to 40 years | |||||||||||||||
Leasehold improvements | Shorter of life of asset or life of lease | |||||||||||||||
Machinery and equipment | 2 to 15 years | |||||||||||||||
Goodwill and other intangible assets | ||||||||||||||||
We have a history of growth through acquisitions. Assets and liabilities of acquired businesses are recorded at their estimated fair values as of the date of acquisition. Goodwill represents costs in excess of fair values assigned to the underlying net assets of acquired businesses. Customer relationships, trademarks, tradenames, patents and other intangible assets primarily represent allocations of purchase price to identifiable intangible assets of acquired businesses. Promotional, marketing and distribution rights represent intangible assets created under our Sports Medicine Joint Development and Distribution Agreement (the "JDDA") with Musculoskeletal Transplant Foundation (“MTF”). We have accumulated goodwill of $256.2 million and other intangible assets of $316.4 million as of December 31, 2014. | ||||||||||||||||
In accordance with FASB guidance, goodwill and intangible assets deemed to have indefinite lives are not amortized, but are subject to at least annual impairment testing. It is our policy to perform our annual impairment testing in the fourth quarter. The identification and measurement of goodwill impairment involves the estimation of the fair value of our business. Estimates of fair value are based on the best information available as of the date of the assessment. During 2014, we completed our goodwill impairment testing with data as of October 1, 2014. We performed a Step 1 impairment test in accordance with ASC 350 utilizing the market capitalization approach to determine whether the fair value of a reporting unit is less than its carrying amount. Based upon our assessment, we believe the fair value continues to exceed carrying value. | ||||||||||||||||
Intangible assets with a finite life are amortized over the estimated useful life of the asset and are evaluated each reporting period to determine whether events and circumstances warrant a revision to the remaining period of amortization. Intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. The carrying amount of an intangible asset subject to amortization is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use of the asset. An impairment loss is recognized by reducing the carrying amount of the intangible asset to its current fair value. | ||||||||||||||||
Customer relationship assets arose principally as a result of the 1997 acquisition of Linvatec Corporation. These assets represent the acquisition date fair value of existing customer relationships based on the after-tax income expected to be derived during their estimated remaining useful life. The useful lives of these customer relationships were not, and are not, limited by contract or any economic, regulatory or other known factors. The estimated useful life of the Linvatec customer relationship assets was determined as of the date of acquisition as a result of a study of the observed pattern of historical revenue attrition during the 5 years immediately preceding the acquisition of Linvatec Corporation. This observed attrition pattern was then applied to the existing customer relationships to derive the future expected useful life of the customer relationships. This analysis indicated an annual attrition rate of 2.6%. Assuming an exponential attrition pattern, this equated to an average remaining useful life of approximately 38 years for the Linvatec customer relationship assets. Customer relationship intangible assets arising as a result of other business acquisitions are being amortized over a weighted average life of 16 years. The weighted average life for customer relationship assets in aggregate is 33 years. | ||||||||||||||||
We evaluate the remaining useful life of our customer relationship intangible assets each reporting period in order to determine whether events and circumstances warrant a revision to the remaining period of amortization. In order to further evaluate the remaining useful life of our customer relationship intangible assets, we perform an analysis and assessment of actual customer attrition and activity as events and circumstances warrant. This assessment includes a comparison of customer activity since the acquisition date and review of customer attrition rates. In the event that our analysis of actual customer attrition rates indicates a level of attrition that is in excess of that which was originally contemplated, we would change the estimated useful life of the related customer relationship asset with the remaining carrying amount amortized prospectively over the revised remaining useful life. | ||||||||||||||||
We test our customer relationship assets for recoverability whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Factors specific to our customer relationship assets which might lead to an impairment charge include a significant increase in the annual customer attrition rate or otherwise significant loss of customers, significant decreases in sales or current-period operating or cash flow losses or a projection or forecast of losses. We do not believe that there have been events or changes in circumstances which would indicate the carrying amount of our customer relationship assets might not be recoverable. | ||||||||||||||||
For all other indefinite lived intangible assets, we perform a qualitative impairment test in accordance with ASC 350. Based upon this assessment, we have determined that it is unlikely that our indefinite lived intangible assets are impaired. | ||||||||||||||||
Other long-lived assets | ||||||||||||||||
We review asset carrying amounts for impairment (consisting of intangible assets subject to amortization and property, plant and equipment) whenever events or circumstances indicate that such carrying amounts may not be recoverable. If the sum of the expected future undiscounted cash flows is less than the carrying amount of the asset, an impairment loss is recognized by reducing the recorded value to its current fair value. | ||||||||||||||||
Translation of foreign currency financial statements | ||||||||||||||||
Assets and liabilities of foreign subsidiaries have been translated into United States dollars at the applicable rates of exchange in effect at the end of the period reported. Revenues and expenses have been translated at the applicable weighted average rates of exchange in effect during the period reported. Translation adjustments are reflected in accumulated other comprehensive loss. Transaction gains and losses are included in net income. | ||||||||||||||||
Foreign exchange and hedging activity | ||||||||||||||||
We manage our foreign currency transaction risks through the use of forward contracts to hedge forecasted cash flows associated with foreign currency transaction exposures. We account for these forward contracts as cash flow hedges. To the extent these forward contracts meet hedge accounting criteria, changes in their fair value are not included in current earnings but are included in accumulated other comprehensive loss. These changes in fair value will be reclassified into earnings as a component of sales or cost of sales when the forecasted transaction occurs. | ||||||||||||||||
We also enter into forward contracts to exchange foreign currencies for United States dollars in order to hedge our currency transaction exposures on intercompany receivables denominated in foreign currencies. These forward contracts settle each month at month-end, at which time we enter into new forward contracts. We have not designated these forward contracts as hedges and have not applied hedge accounting to them. We record these forward contracts at fair value with resulting gains and losses included in selling and administrative expense in the consolidated statements of comprehensive income. | ||||||||||||||||
Income taxes | ||||||||||||||||
Deferred income tax assets and liabilities are based on the difference between the financial statement and tax basis of assets and liabilities and operating loss and tax credit carryforwards as measured by the enacted tax rates that are anticipated to be in effect in the respective jurisdictions when these differences reverse. The deferred income tax provision generally represents the net change in the assets and liabilities for deferred income taxes. A valuation allowance is established when it is necessary to reduce deferred income tax assets to amounts for which realization is likely. In assessing the need for a valuation allowance, we estimate future taxable income, considering the feasibility of ongoing tax planning strategies and the realizability of tax loss carryforwards. Valuation allowances related to deferred tax assets may be impacted by changes to tax laws, changes to statutory tax rates, reversal of temporary differences and ongoing and future taxable income levels. | ||||||||||||||||
Deferred income taxes are not provided on the unremitted earnings of subsidiaries outside of the United States when it is expected that these earnings are permanently reinvested. Such earnings may become taxable upon a repatriation of assets from a subsidiary or the sale or liquidation of a subsidiary. Deferred income taxes are provided when the Company no longer considers subsidiary earnings to be permanently invested, such as in situations where the Company’s subsidiaries plan to make future dividend distributions. | ||||||||||||||||
Revenue recognition | ||||||||||||||||
Revenue is recognized when title has been transferred to the customer which is at the time of shipment. The following policies apply to our major categories of revenue transactions: | ||||||||||||||||
• | Sales to customers are evidenced by firm purchase orders. Title and the risks and rewards of ownership are transferred to the customer when product is shipped under our stated shipping terms. Payment by the customer is due under fixed payment terms and collectability is reasonably assured. | |||||||||||||||
• | We place certain of our capital equipment with customers on a loaned basis in return for commitments to purchase related single-use products over time periods generally ranging from one to three years. In these circumstances, no revenue is recognized upon capital equipment shipment as the equipment is loaned and subject to return if certain minimum single-use purchases are not met. Revenue is recognized upon the sale and shipment of the related single-use products. The cost of the equipment is amortized over its estimated useful life. | |||||||||||||||
• | We recognize revenues related to the promotion and marketing of sports medicine allograft tissue in accordance with the contractual terms of our agreement with Musculoskeletal Transplant Foundation (“MTF”) on a net basis as our role is limited to that of an agent earning a commission or fee. MTF records revenue when the tissue is shipped to the customer. Our services are completed at this time and net revenues for the “Service Fee” for our promotional and marketing efforts are then recognized based on a percentage of the net amounts billed by MTF to its customers. The timing of revenue recognition is determined through review of the net billings made by MTF each month. Our net commission Service Fee is based on the contractual terms of our agreement and is currently 50%. This percentage can vary over the term of the agreement but is contractually determinable. Our Service Fee revenues are recorded net of amortization of the acquired assets, which are being expensed over the expected useful life of 25 years. | |||||||||||||||
• | Product returns are only accepted at the discretion of the Company and in accordance with our “Returned Goods Policy”. Historically the level of product returns has not been significant. We accrue for sales returns, rebates and allowances based upon an analysis of historical customer returns and credits, rebates, discounts and current market conditions. | |||||||||||||||
• | Our terms of sale to customers generally do not include any obligations to perform future services. Limited warranties are provided for capital equipment sales and provisions for warranty are provided at the time of product sale based upon an analysis of historical data. | |||||||||||||||
• | Amounts billed to customers related to shipping and handling have been included in net sales. Shipping and handling costs included in selling and administrative expense were $13.6 million, $12.6 million and $12.8 million for 2014, 2013 and 2012, respectively. | |||||||||||||||
• | We sell to a diversified base of customers around the world and, therefore, believe there is no material concentration of credit risk. | |||||||||||||||
• | We assess the risk of loss on accounts receivable and adjust the allowance for doubtful accounts based on this risk assessment. Historically, losses on accounts receivable have not been material. Management believes that the allowance for doubtful accounts of $1.2 million at December 31, 2014 is adequate to provide for probable losses resulting from accounts receivable. | |||||||||||||||
Earnings per share | ||||||||||||||||
Basic earnings per share (“basic EPS”) is computed by dividing net income by the weighted average number of common shares outstanding for the reporting period. Diluted earnings per share (“diluted EPS”) gives effect to all dilutive potential shares outstanding resulting from employee stock options, restricted stock units, performance share units and stock appreciation rights during the period. The following table sets forth the computation of basic and diluted earnings per share at December 31, 2014, 2013 and 2012, respectively: | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Net income | $ | 32,192 | $ | 35,939 | $ | 40,481 | ||||||||||
Basic-weighted average shares outstanding | 27,401 | 27,722 | 28,301 | |||||||||||||
Effect of dilutive potential securities | 368 | 392 | 352 | |||||||||||||
Diluted-weighted average shares outstanding | 27,769 | 28,114 | 28,653 | |||||||||||||
Basic EPS | $ | 1.17 | $ | 1.3 | $ | 1.43 | ||||||||||
Diluted EPS | $ | 1.16 | $ | 1.28 | $ | 1.41 | ||||||||||
The shares used in the calculation of diluted EPS exclude options to purchase shares where the exercise price was greater than the average market price of common shares for the year. Such shares aggregated approximately 0.0 million, 0.0 million and 0.4 million at December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||
Stock-based compensation | ||||||||||||||||
All share-based payments to employees, including grants of employee stock options, restricted stock units, performance share units and stock appreciation rights are recognized in the financial statements based at their fair values. Compensation expense is generally recognized using a straight-line method over the vesting period. Compensation expense for performance share units is recognized using the graded vesting method. | ||||||||||||||||
We issue shares under our stock based compensation plans out of treasury stock whereby treasury stock is reduced by the weighted average cost of such treasury stock. To the extent there is a difference between the cost of the treasury stock and the exercise price of shares issued under stock based compensation plans, we record gains to paid in capital; losses are recorded to paid in capital to the extent any gain was previously recorded, otherwise the loss is recorded to retained earnings. | ||||||||||||||||
Accumulated other comprehensive loss | ||||||||||||||||
Accumulated other comprehensive loss consists of the following: | ||||||||||||||||
Cash Flow | Pension | Cumulative | Accumulated | |||||||||||||
Hedging | Liability | Translation | Other | |||||||||||||
Gain (Loss) | Adjustments | Comprehensive | ||||||||||||||
Loss | ||||||||||||||||
Balance, December 31, 2013 | $ | (1,385 | ) | $ | (18,918 | ) | $ | 2,731 | $ | (17,572 | ) | |||||
Other comprehensive income | 5,061 | (10,551 | ) | (15,069 | ) | (20,559 | ) | |||||||||
before reclassifications | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive income before taxa | (635 | ) | (2,048 | ) | — | (2,683 | ) | |||||||||
Tax expense | 235 | 757 | — | 992 | ||||||||||||
Net current-period other comprehensive income (loss) | 4,661 | (11,842 | ) | (15,069 | ) | (22,250 | ) | |||||||||
Balance, December 31, 2014 | $ | 3,276 | $ | (30,760 | ) | $ | (12,338 | ) | $ | (39,822 | ) | |||||
Cash Flow | Pension | Cumulative | Accumulated | |||||||||||||
Hedging | Liability | Translation | Other | |||||||||||||
Gain (Loss) | Adjustments | Comprehensive | ||||||||||||||
Loss | ||||||||||||||||
Balance, December 31, 2012 | $ | (1,130 | ) | $ | (30,375 | ) | $ | 3,924 | $ | (27,581 | ) | |||||
Other comprehensive income | (158 | ) | 8,618 | (1,193 | ) | 7,267 | ||||||||||
before reclassifications | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive income before taxa | (153 | ) | 4,502 | — | 4,349 | |||||||||||
Tax expense (benefit) | 56 | (1,663 | ) | — | (1,607 | ) | ||||||||||
Net current-period other comprehensive income (loss) | (255 | ) | 11,457 | (1,193 | ) | 10,009 | ||||||||||
Balance, December 31, 2013 | $ | (1,385 | ) | $ | (18,918 | ) | $ | 2,731 | $ | (17,572 | ) | |||||
(a) The cash flow hedging gain (loss) and pension liability accumulated other comprehensive income components are included in sales or cost of sales and as a component of net periodic pension cost, respectively. Refer to Note 13 and Note 9, respectively, for further details. |
Inventories
Inventories | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | Inventories | |||||||
Inventories consist of the following at December 31,: | ||||||||
2014 | 2013 | |||||||
Raw materials | $ | 44,847 | $ | 39,029 | ||||
Work in process | 13,876 | 14,736 | ||||||
Finished goods | 89,426 | 89,446 | ||||||
$ | 148,149 | $ | 143,211 | |||||
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant and Equipment | Property, Plant and Equipment | |||||||
Property, plant and equipment consist of the following at December 31,: | ||||||||
2014 | 2013 | |||||||
Land | $ | 4,243 | $ | 4,243 | ||||
Building and improvements | 96,953 | 95,397 | ||||||
Machinery and equipment | 191,306 | 180,064 | ||||||
Construction in progress | 5,140 | 8,750 | ||||||
297,642 | 288,454 | |||||||
Less: Accumulated depreciation | (164,213 | ) | (149,469 | ) | ||||
$ | 133,429 | $ | 138,985 | |||||
We lease various manufacturing facilities, office facilities and equipment under operating leases. Rental expense on these operating leases was approximately $5,897, $6,713 and $6,416 for the years ended December 31, 2014, 2013 and 2012, respectively. The aggregate future minimum lease commitments for operating leases at December 31, 2014 are as follows: | ||||||||
2015 | $ | 6,229 | ||||||
2016 | 4,592 | |||||||
2017 | 3,785 | |||||||
2018 | 3,618 | |||||||
2019 | 3,426 | |||||||
Thereafter | 1,799 | |||||||
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets | |||||||||||||||
The changes in the net carrying amount of goodwill for the years ended December 31, are as follows: | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Balance as of January 1, | $ | 248,428 | $ | 248,502 | ||||||||||||
Goodwill resulting from business acquisitions | 7,773 | — | ||||||||||||||
Foreign currency translation | 31 | (74 | ) | |||||||||||||
Balance as of December 31, | $ | 256,232 | $ | 248,428 | ||||||||||||
Total accumulated impairment losses aggregated $106,991 at December 31, 2014 and 2013, respectively. | ||||||||||||||||
Other intangible assets consist of the following: | ||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||
Gross | Accumulated | Gross | Accumulated | |||||||||||||
Carrying | Amortization | Carrying | Amortization | |||||||||||||
Amount | Amount | |||||||||||||||
Amortized intangible assets: | ||||||||||||||||
Customer relationships | $ | 136,126 | $ | (59,707 | ) | $ | 135,690 | $ | (54,982 | ) | ||||||
Promotional, marketing & distribution rights | 149,376 | (18,000 | ) | 149,376 | (12,000 | ) | ||||||||||
Patents and other intangible assets | 63,464 | (41,363 | ) | 53,903 | (39,091 | ) | ||||||||||
Unamortized intangible assets: | ||||||||||||||||
Trademarks and tradenames | 86,544 | — | 86,544 | — | ||||||||||||
$ | 435,510 | $ | (119,070 | ) | $ | 425,513 | $ | (106,073 | ) | |||||||
Customer relationships, trademarks, tradenames, patents and other intangible assets primarily represent allocations of purchase price to identifiable intangible assets of acquired businesses. Promotional, marketing and distribution rights represent intangible assets created under our Sports Medicine Joint Development and Distribution Agreement (the "JDDA") with Musculoskeletal Transplant Foundation (“MTF”). | ||||||||||||||||
On January 3, 2012, the Company entered into the JDDA with MTF to obtain MTF's worldwide promotion rights with respect to allograft tissues within the field of sports medicine and related products. The initial consideration from the Company included a $63.0 million up-front payment for the rights and certain assets, with an additional $84.0 million contingently payable over a four year period depending on MTF meeting supply targets for tissue. On January 5, 2015 and January 3, 2014, we paid equal installments of $16.7 million and on January 3, 2013, we paid $34.0 million of the additional consideration. The remaining $16.7 million of the additional consideration is due in January 2016. The $33.4 million related to the remaining contingent obligation as of December 31, 2014 is accrued in other current and other long term liabilities as we believe it is probable MTF will meet the supply targets. | ||||||||||||||||
Trademarks and tradenames were recognized principally in connection with the 1997 acquisition of Linvatec Corporation. We continue to market products, release new product and product extensions and maintain and promote these trademarks and tradenames in the marketplace through legal registration and such methods as advertising, medical education and trade shows. It is our belief that these trademarks and tradenames will generate cash flow for an indefinite period of time. Therefore, our trademarks and tradenames intangible assets are not amortized. | ||||||||||||||||
Amortization expense related to intangible assets which are subject to amortization totaled $13.0 million, $13.7 million and $13.8 million for the years ending December 31, 2014, 2013 and 2012, respectively, and is included as a reduction of revenue (for amortization related to our promotional, marketing and distribution rights) and in selling and administrative expense (for all other intangible assets) in the consolidated statements of comprehensive income. The weighted average amortization period for intangible assets which are amortized is 27 years. Customer relationships are being amortized over a weighted average life of 33 years. Promotional, marketing and distribution rights are being amortized over a weighted average life of 25 years. Patents and other intangible assets are being amortized over a weighted average life of 13 years. Included in patents and other intangible assets at December 31, 2014 is an in-process research and development asset that is not currently amortized. Estimated amortization expense related to intangible assets for each of the five succeeding years is as follows: | ||||||||||||||||
Amortization included in expense | Amortization recorded as a reduction of revenue | Total | ||||||||||||||
2015 | 6,615 | 6,000 | $ | 12,615 | ||||||||||||
2016 | 7,461 | 6,000 | $ | 13,461 | ||||||||||||
2017 | 7,447 | 6,000 | $ | 13,447 | ||||||||||||
2018 | 7,392 | 6,000 | $ | 13,392 | ||||||||||||
2019 | 7,392 | 6,000 | $ | 13,392 | ||||||||||||
Long_Term_Debt
Long Term Debt | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Long-term Debt | Long Term Debt | |||||||
Long-term debt consists of the following at December 31,: | ||||||||
2014 | 2013 | |||||||
Revolving line of credit | $ | 235,000 | $ | 208,000 | ||||
Mortgage notes | 6,435 | 7,575 | ||||||
Total long-term debt | 241,435 | 215,575 | ||||||
Less: Current portion | 1,234 | 1,140 | ||||||
$ | 240,201 | $ | 214,435 | |||||
On January 17, 2013, we entered into an amended and restated $350.0 million senior credit agreement (the "amended and restated senior credit agreement"). The amended and restated senior credit agreement consists of a $350.0 million revolving credit facility expiring on January 17, 2018. In connection with the refinancing, we recorded a $0.3 million loss on the early extinguishment of debt related to the write-off of unamortized deferred financing costs under the then existing senior credit agreement. There were $235.0 million in borrowings outstanding on the revolving credit facility as of December 31, 2014. Our available borrowings on the revolving credit facility at December 31, 2014 were $109.6 million with approximately $5.4 million of the facility set aside for outstanding letters of credit. | ||||||||
Interest rates on the amended and restated senior credit agreement are at LIBOR plus 1.625% (1.785% at December 31, 2014) or an alternative base rate. For those borrowings where we elect to use the alternative base rate, the base rate will be the greater of the Prime Rate, the Federal Funds Rate in effect on such date plus 0.50%, or the one month Eurocurrency rate plus 1%, plus an additional margin of 0.625%. | ||||||||
The amended and restated senior credit agreement is collateralized by substantially all of our personal property and assets. The amended and restated senior credit agreement contains covenants and restrictions which, among other things, require the maintenance of certain financial ratios (the most restrictive of which is the senior leverage ratio) and restrict dividend payments and the incurrence of certain indebtedness and other activities, including acquisitions and dispositions. We were in full compliance with these covenants and restrictions as of December 31, 2014. We are also required, under certain circumstances, to make mandatory prepayments from net cash proceeds from any issuance of equity and asset sales. | ||||||||
We have a mortgage note outstanding in connection with the Largo, Florida property and facilities bearing interest at 8.25% per annum with semiannual payments of principal and interest through June 2019. The principal balance outstanding on the mortgage note aggregated $6.4 million at December 31, 2014. The mortgage note is collateralized by the Largo, Florida property and facilities. | ||||||||
The scheduled maturities of long-term debt outstanding at December 31, 2014 are as follows: | ||||||||
2015 | $ | 1,234 | ||||||
2016 | 1,339 | |||||||
2017 | 1,452 | |||||||
2018 | 236,574 | |||||||
2019 | 836 | |||||||
Thereafter | — | |||||||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes | Income Taxes | |||||||||||
The provision for income taxes for the years ended December 31, 2014, 2013 and 2012 consists of the following: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current tax expense (benefit): | ||||||||||||
Federal | $ | 2,256 | $ | (2,274 | ) | $ | 503 | |||||
State | 516 | 502 | 374 | |||||||||
Foreign | 11,995 | 9,247 | 5,176 | |||||||||
14,767 | 7,475 | 6,053 | ||||||||||
Deferred income tax expense (benefit) | (284 | ) | 7,218 | 12,946 | ||||||||
Provision for income taxes | $ | 14,483 | $ | 14,693 | $ | 18,999 | ||||||
A reconciliation between income taxes computed at the statutory federal rate and the provision for income taxes for the years ended December 31, 2014, 2013 and 2012 follows: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Tax provision at statutory rate based on income before income taxes | 35 | % | 35 | % | 35 | % | ||||||
State income taxes, net of federal tax benefit | 1.7 | 1.8 | 1.5 | |||||||||
New York State corporate tax reform | 5.5 | — | — | |||||||||
Stock-based compensation | (0.2 | ) | (0.5 | ) | (0.2 | ) | ||||||
Foreign income taxes | (4.8 | ) | (3.1 | ) | (4.0 | ) | ||||||
Federal research credit | (2.1 | ) | (2.8 | ) | — | |||||||
Settlement of taxing authority examinations | (3.7 | ) | (2.0 | ) | (0.8 | ) | ||||||
European permanent deduction | (3.8 | ) | (2.4 | ) | — | |||||||
Non deductible/non-taxable items | 1.8 | 2.9 | 1.3 | |||||||||
Other, net | 1.6 | 0.1 | (0.9 | ) | ||||||||
31 | % | 29 | % | 31.9 | % | |||||||
The tax effects of the significant temporary differences which comprise the deferred income tax assets and liabilities at December 31, 2014 and 2013 are as follows: | ||||||||||||
2014 | 2013 | |||||||||||
Assets: | ||||||||||||
Inventory | $ | 4,476 | $ | 3,445 | ||||||||
Net operating losses | 10,207 | 6,450 | ||||||||||
Capitalized research and development | 1,850 | 2,286 | ||||||||||
Deferred compensation | 3,507 | 3,025 | ||||||||||
Accounts receivable | 2,604 | 2,642 | ||||||||||
Compensation and benefits | 6,003 | 5,601 | ||||||||||
Accrued pension | 6,186 | (173 | ) | |||||||||
Research and development credit | 6,198 | 5,027 | ||||||||||
Other | 1,564 | 4,365 | ||||||||||
Foreign tax credit | 2,283 | 332 | ||||||||||
Less: valuation allowances | (293 | ) | — | |||||||||
44,585 | 33,000 | |||||||||||
Liabilities: | ||||||||||||
Goodwill and intangible assets | 120,012 | 114,075 | ||||||||||
Depreciation | 14,041 | 13,486 | ||||||||||
State taxes | 6,737 | 3,914 | ||||||||||
Contingent interest | 272 | 339 | ||||||||||
141,062 | 131,814 | |||||||||||
Net liability | $ | (96,477 | ) | $ | (98,814 | ) | ||||||
Income before income taxes consists of the following U.S. and foreign income: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
U.S. income | $ | 12,374 | $ | 20,106 | $ | 33,121 | ||||||
Foreign income | 34,301 | 30,526 | 26,359 | |||||||||
Total income | $ | 46,675 | $ | 50,632 | $ | 59,480 | ||||||
As of December 31, 2014, the amount of federal net operating loss carryforward was $34.8 million and begins to expire in 2025. Approximately $6.5 million of the net operating loss is attributable to stock-based compensation windfall tax deductions; the windfall tax benefit has not been recorded as a deferred tax asset and will be recorded in additional paid-in-capital when realized. As of December 31, 2014, the amount of federal research credit carryforward available was $6.2 million. These credits begin to expire in 2027. As of December 31, 2014, the amount of foreign tax credit carryforward was $2.3 million and begins to expire in 2023. | ||||||||||||
In New York State, corporate tax reform enacted in March 2014 changed the tax rate of a manufacturing company such as our Company to essentially 0%. Previously recorded New York State net deferred tax assets of $2.3 million, including $3.3 million of future tax benefits associated with state tax credits, have been written off as a non-cash charge to income tax expense. | ||||||||||||
U.S. income and foreign withholding taxes have not been recognized on the excess of the amount for financial reporting over the tax basis of investments in foreign subsidiaries that are essentially permanent in duration. The amount of such temporary differences totaled $92.2 million as of December 31, 2014. It is not practicable given the complexities of the hypothetical foreign tax credit calculation to determine the tax liability on this temporary difference. | ||||||||||||
The Company is subject to taxation in the United States and various states and foreign jurisdictions. Taxing authority examinations can involve complex issues and may require an extended period of time to resolve. Our Federal income tax returns have been examined by the Internal Revenue Service (“IRS”) for calendar years ending through 2013. | ||||||||||||
We recognize tax liabilities in accordance with the provisions for accounting for uncertainty in income taxes. Such guidance prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. | ||||||||||||
The following table summarizes the activity related to our unrecognized tax benefits for the years ending December 31,: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Balance as of January 1, | $ | 1,689 | $ | 1,587 | $ | 2,343 | ||||||
Increases for positions taken in prior periods | 45 | 70 | 30 | |||||||||
Increases for positions taken in current periods | — | 1,132 | 1,129 | |||||||||
Decreases in unrecorded tax positions related to settlement with the taxing authorities | (1,073 | ) | (1,010 | ) | (1,857 | ) | ||||||
Decreases in unrecorded tax positions related to lapse of statute of limitations | (80 | ) | (90 | ) | (58 | ) | ||||||
Balance as of December 31, | $ | 581 | $ | 1,689 | $ | 1,587 | ||||||
If the total unrecognized tax benefits of $0.6 million at December 31, 2014 were recognized, it would reduce our annual effective tax rate. The amount of interest accrued in 2014 related to these unrecognized tax benefits was not material and is included in the provision for income taxes in the consolidated statements of comprehensive income. |
Shareholders_Equity
Shareholders' Equity | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Equity [Abstract] | ||||||||||||
Shareholders' Equity | Shareholders’ Equity | |||||||||||
On February 29, 2012, the Board of Directors adopted a cash dividend policy and declared an initial quarterly dividend of $0.15 per share. On October 28, 2013, the Board of Directors increased the quarterly dividend to $0.20 per share. The fourth quarter dividend for 2014 was paid on January 5, 2015 to shareholders of record as of December 15, 2014. The total dividend payable at December 31, 2014 was $5.5 million and is included in other current liabilities in the consolidated balance sheet. | ||||||||||||
Our shareholders have authorized 500,000 shares of preferred stock, par value $.01 per share, which may be issued in one or more series by the Board of Directors without further action by the shareholders. As of December 31, 2014 and 2013, no preferred stock had been issued. | ||||||||||||
Our Board of Directors has authorized a $200.0 million share repurchase program. Through December 31, 2014, we have repurchased a total of 6.1 million shares of common stock aggregating $162.6 million under this authorization and have $37.4 million remaining available for share repurchases. The repurchase program calls for shares to be purchased in the open market or in private transactions from time to time. We may suspend or discontinue the share repurchase program at any time. During 2014, we repurchased 0.4 million shares for an aggregate cost of $16.9 million. During 2013, we repurchased 1.6 million shares for an aggregate cost of $50.6 million. During 2012, we repurchased 0.1 million shares for an aggregate cost of $3.9 million. | ||||||||||||
We have reserved 6.8 million shares of common stock for issuance to employees and directors under three shareholder- approved share-based compensation plans (the "Plans") of which approximately 1.0 million shares remain available for grant at December 31, 2014. The exercise price on all outstanding options and stock appreciation rights (“SARs”) is equal to the quoted fair market value of the stock at the date of grant. Restricted stock units (“RSUs”) and performance stock units (“PSUs”) are valued at the market value of the underlying stock on the date of grant. Stock options, SARs, RSUs and PSUs are non-transferable other than on death and generally become exercisable over a five year period from date of grant. Stock options and SARs expire ten years from date of grant. SARs are only settled in shares of the Company’s stock. The issuance of shares pursuant to the exercise of stock options and SARs and vesting of RSUs and PSUs are from the Company’s treasury stock. | ||||||||||||
Total pre-tax stock-based compensation expense recognized in the consolidated statements of comprehensive income was $9.3 million, $5.6 million and $5.7 million for the years ended December 31, 2014, 2013 and 2012, respectively. These amounts are included in selling and administrative expenses, and in 2014, $3.9 million of the total is included in other expense on the consolidated statements of comprehensive income as it relates to acceleration of awards associated with executive management restructuring. Tax related benefits of $3.4 million, $2.1 million and $2.1 million were also recognized for the years ended December 31, 2014, 2013 and 2012, respectively. Cash received from the exercise of stock options was $1.8 million, $16.7 million and $9.6 million for the years ended December 31, 2014, 2013 and 2012, respectively, and is reflected in cash flows from financing activities in the consolidated statements of cash flows. | ||||||||||||
The Company uses the Black-Scholes option pricing model to estimate the fair value of options and SARs at the date of grant. Use of a valuation model requires management to make certain assumptions with respect to select model inputs. Expected volatilities are based upon historical volatility of the Company’s stock over a period equal to the expected life of each option and SAR grant. The risk free interest rate is based on the option and SAR grant date for a traded U.S. Treasury bond with a maturity date closest to the expected life. The expected annual dividend yield is based on the Company's anticipated cash dividend payouts. The expected life represents the period of time that the options and SARs are expected to be outstanding based on a study of historical data of option holder exercise and termination behavior. | ||||||||||||
The following table illustrates the assumptions used in estimating fair value in the years ended December 31, 2014, 2013 and 2012. | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Grant date fair value of SARs | $ | 13.4 | $ | 9.77 | $ | 7.38 | ||||||
Expected stock price volatility | 34.85 | % | 35.88 | % | 35.84 | % | ||||||
Risk-free interest rate | 1.53 | % | 1.04 | % | 0.62 | % | ||||||
Expected annual dividend yield | 1.8 | % | 1.79 | % | 2 | % | ||||||
Expected life of options & SARs (years) | 6.4 | 6.3 | 6.4 | |||||||||
The following table illustrates the stock option and SAR activity for the year ended December 31, 2014. | ||||||||||||
Number | Weighted- | |||||||||||
of | Average | |||||||||||
Shares | Exercise | |||||||||||
(in 000’s) | Price | |||||||||||
Outstanding at December 31, 2013 | 1,130 | $ | 25.55 | |||||||||
Granted | 109 | $ | 44.56 | |||||||||
Forfeited | (68 | ) | $ | 40.76 | ||||||||
Exercised | (718 | ) | $ | 24.9 | ||||||||
Outstanding at December 31, 2014 | 453 | $ | 28.85 | |||||||||
Exercisable at December 31, 2014 | 245 | $ | 25.38 | |||||||||
SARs expected to vest | 208 | $ | 32.93 | |||||||||
The weighted average remaining contractual term for stock options and SARs outstanding and exercisable at December 31, 2014 was 6.0 years and 4.4 years, respectively. The aggregate intrinsic value of stock options and SARs outstanding and exercisable at December 31, 2014 was $7.3 million and $4.8 million, respectively. The aggregate intrinsic value of stock options and SARs exercised during the years ended December 31, 2014, 2013 and 2012 was $10.7 million, $4.7 million and $3.3 million, respectively. | ||||||||||||
The following table illustrates the RSU and PSU activity for the year ended December 31, 2014. | ||||||||||||
Number | Weighted- | |||||||||||
of | Average | |||||||||||
Shares | Grant-Date | |||||||||||
(in 000’s) | Fair Value | |||||||||||
Outstanding at December 31, 2013 | 476 | $ | 27.14 | |||||||||
Granted | 184 | $ | 43.21 | |||||||||
Vested | (259 | ) | $ | 28.54 | ||||||||
Forfeited | (79 | ) | $ | 35.1 | ||||||||
Outstanding at December 31, 2014 | 322 | $ | 33.14 | |||||||||
The weighted average fair value of awards of RSUs and PSUs granted in the years ended December 31, 2014, 2013 and 2012 was $43.21, $33.02 and $26.18, respectively. | ||||||||||||
The total fair value of shares vested was $11.6 million, $7.1 million and $4.4 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||
As of December 31, 2014, there was $9.6 million of total unrecognized compensation cost related to nonvested stock options, SARs, RSUs and PSUs granted under the Plans which is expected to be recognized over a weighted average period of 3.0 years. | ||||||||||||
We offer to our employees a shareholder-approved Employee Stock Purchase Plan (the “Employee Plan”), under which we have reserved 1.0 million shares of common stock for issuance to our employees. The Employee Plan provides employees with the opportunity to invest from 1% to 10% of their annual salary to purchase shares of CONMED common stock through the exercise of stock options granted by the Company at a purchase price equal to 95% of the fair market value of the common stock on the exercise date. During 2014, we issued approximately 13,000 shares of common stock under the Employee Plan. No stock-based compensation expense has been recognized in the accompanying consolidated financial statements as a result of common stock issuances under the Employee Plan. |
Business_Segments_and_Geograph
Business Segments and Geographic Areas | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Business Segments and Geographic Areas | Business Segments and Geographic Areas | |||||||||||
We are accounting and reporting for our business as a single operating segment entity engaged in the development, manufacturing and sale on a global basis of surgical devices and related equipment. Our chief operating decision maker (the CEO) evaluates the various global product portfolios on a net sales basis and evaluates profitability, investment and cash flow metrics on a consolidated worldwide basis due to shared infrastructure and resources. | ||||||||||||
Our product lines consist of orthopedic surgery, general surgery and surgical visualization. Orthopedic surgery consists of sports medicine instrumentation and small bone, large bone and specialty powered surgical instruments and service fees related to the promotion and marketing of sports medicine allograft tissue. General surgery consists of a complete line of endo-mechanical instrumentation for minimally invasive laparoscopic and gastrointestinal procedures, a line of cardiac monitoring products as well as electrosurgical generators and related instruments. Surgical visualization consists of imaging systems for use in minimally invasive orthopedic and general surgery procedures including 2DHD and 3DHD vision technologies. These product lines' net sales are as follows: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Orthopedic surgery | $ | 402,750 | $ | 410,171 | $ | 413,891 | ||||||
General surgery | 279,356 | 286,747 | 286,606 | |||||||||
Surgical visualization | 57,949 | 65,786 | 66,643 | |||||||||
Consolidated net sales | $ | 740,055 | $ | 762,704 | $ | 767,140 | ||||||
Net sales information for geographic areas consists of the following: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
United States | $ | 360,960 | $ | 375,473 | $ | 382,256 | ||||||
Canada | 63,686 | 73,457 | 73,746 | |||||||||
United Kingdom | 30,496 | 28,471 | 31,653 | |||||||||
Japan | 37,230 | 36,705 | 33,997 | |||||||||
Australia | 38,711 | 38,752 | 40,835 | |||||||||
All other countries | 208,972 | 209,846 | 204,653 | |||||||||
Total | $ | 740,055 | $ | 762,704 | $ | 767,140 | ||||||
Sales are attributed to countries based on the location of the customer. There were no significant investments in long-lived assets located outside the United States at December 31, 2014 and 2013. No single customer represented over 10% of our consolidated net sales for the years ended December 31, 2014, 2013 and 2012. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||
Employee Benefit Plans | Employee Benefit Plans | |||||||||||
We sponsor an employee savings plan (“401(k) plan”) covering substantially all of our United States based employees. We also sponsor a defined benefit pension plan (the “pension plan”) that was frozen in 2009. It covered substantially all our United States based employees at the time it was frozen. | ||||||||||||
Total employer contributions to the 401(k) plan were $6.9 million, $7.3 million and $6.7 million during the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||
We use a December 31, measurement date for our pension plan. Gains and losses are amortized on a straight-line basis over the average remaining service period of active participants. The following table provides a reconciliation of the projected benefit obligation, plan assets and funded status of the pension plan at December 31,: | ||||||||||||
2014 | 2013 | |||||||||||
Accumulated Benefit Obligation | $ | 91,107 | $ | 75,946 | ||||||||
Change in benefit obligation | ||||||||||||
Projected benefit obligation at beginning of year | $ | 75,946 | $ | 85,363 | ||||||||
Service cost | 271 | 253 | ||||||||||
Interest cost | 3,465 | 3,315 | ||||||||||
Actuarial (gain) loss | 16,546 | (8,082 | ) | |||||||||
Benefits paid | (1,414 | ) | (1,250 | ) | ||||||||
Settlement | (3,707 | ) | (3,653 | ) | ||||||||
Projected benefit obligation at end of year | $ | 91,107 | $ | 75,946 | ||||||||
Change in plan assets | ||||||||||||
Fair value of plan assets at beginning of year | $ | 76,442 | $ | 62,763 | ||||||||
Actual gain on plan assets | 2,110 | 11,082 | ||||||||||
Employer contributions | — | 7,500 | ||||||||||
Benefits paid | (1,414 | ) | (1,250 | ) | ||||||||
Settlement | (3,707 | ) | (3,653 | ) | ||||||||
Fair value of plan assets at end of year | $ | 73,431 | $ | 76,442 | ||||||||
Funded status | $ | (17,676 | ) | $ | 496 | |||||||
Amounts recognized in the consolidated balance sheets consist of the following at December 31,: | ||||||||||||
2014 | 2013 | |||||||||||
Other assets/(Other long-term liabilities) | $ | (17,676 | ) | $ | 496 | |||||||
Accumulated other comprehensive loss | (48,782 | ) | (30,001 | ) | ||||||||
The following actuarial assumptions were used to determine our accumulated and projected benefit obligations as of December 31,: | ||||||||||||
2014 | 2013 | |||||||||||
Discount rate | 3.81 | % | 4.75 | % | ||||||||
Expected return on plan assets | 8 | % | 8 | % | ||||||||
Accumulated other comprehensive loss for the years ended December 31, 2014 and 2013 consists of net actuarial losses of $48,782 and $30,001, respectively, not yet recognized in net periodic pension cost (before income taxes). | ||||||||||||
Other changes in plan assets and benefit obligations recognized in other comprehensive income in 2014 are as follows: | ||||||||||||
Current year actuarial loss | $ | (16,733 | ) | |||||||||
Amortization of actuarial loss | (2,048 | ) | ||||||||||
Total recognized in other comprehensive loss | $ | (18,781 | ) | |||||||||
The estimated portion of net actuarial loss in accumulated other comprehensive loss that is expected to be recognized as a component of net periodic pension cost in 2015 is $3.2 million. | ||||||||||||
Net periodic pension cost for the years ended December 31, consists of the following: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Service cost | $ | 271 | $ | 253 | $ | 277 | ||||||
Interest cost on projected benefit obligation | 3,465 | 3,315 | 3,429 | |||||||||
Expected return on plan assets | (2,297 | ) | (5,491 | ) | (4,566 | ) | ||||||
Amortization of loss | (2,048 | ) | 3,059 | 2,876 | ||||||||
Settlement expense | — | 1,443 | — | |||||||||
Net periodic pension (income) cost | $ | (609 | ) | $ | 2,579 | $ | 2,016 | |||||
The following actuarial assumptions were used to determine our net periodic pension benefit cost for the years ended December 31,: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Discount rate | 4.75 | % | 3.9 | % | 4.3 | % | ||||||
Expected return on plan assets | 8 | % | 8 | % | 8 | % | ||||||
In determining the expected return on pension plan assets, we consider the relative weighting of plan assets, the historical performance of total plan assets and individual asset classes and economic and other indicators of future performance. In addition, we consult with financial and investment management professionals in developing appropriate targeted rates of return. | ||||||||||||
Asset management objectives include maintaining an adequate level of diversification to reduce interest rate and market risk and providing adequate liquidity to meet immediate and future benefit payment requirements. | ||||||||||||
The allocation of pension plan assets by category is as follows at December 31,: | ||||||||||||
Percentage of Pension | Target | |||||||||||
Plan Assets | Allocation | |||||||||||
2014 | 2013 | 2015 | ||||||||||
Equity securities | 84 | % | 79 | % | 75 | % | ||||||
Debt securities | 16 | 21 | 25 | |||||||||
Total | 100 | % | 100 | % | 100 | % | ||||||
As of December 31, 2014, the Plan held 27,562 shares of our common stock, which had a fair value of $1.2 million. We believe that our long-term asset allocation on average will approximate the targeted allocation. We regularly review our actual asset allocation and periodically rebalance the pension plan’s investments to our targeted allocation when deemed appropriate. | ||||||||||||
The following table sets forth the fair value of Plan assets as of December 31,: | ||||||||||||
2014 | 2013 | |||||||||||
Common Stock | $ | 35,337 | $ | 31,412 | ||||||||
Money Market Fund | 3,320 | 7,018 | ||||||||||
Mutual Funds | 26,671 | 28,726 | ||||||||||
Fixed Income Securities | 8,103 | 9,286 | ||||||||||
Total Assets at Fair Value | $ | 73,431 | $ | 76,442 | ||||||||
FASB guidance defines fair value and establishes a framework for measuring fair value and related disclosure requirements. A valuation hierarchy was established for disclosure of the inputs to the valuations used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, including interest rates, yield curves and credit risks, or inputs that are derived principally from, or corroborated by, observable market data through correlation. Level 3 inputs are unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. | ||||||||||||
Following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used at December 31, 2014 and 2013: | ||||||||||||
Common Stock: | Common stock is valued at the closing price reported on the common stock’s respective stock exchange and is classified within level 1 of the valuation hierarchy. | |||||||||||
Money Market Fund: | These investments are public investment vehicles valued using $1 for the Net Asset Value (NAV). The money market fund is classified within level 2 of the valuation hierarchy. | |||||||||||
Mutual Funds: | These investments are public investment vehicles valued using the NAV provided by the administrator of the fund. The NAV is based on the value of the underlying assets owned by the fund, minus its liabilities, and then divided by the number of shares outstanding. The NAV is a quoted price in an active market and is classified within level 1 of the valuation hierarchy. | |||||||||||
Fixed Income Securities: | Valued at the closing price reported on the active market on which the individual securities are traded and are classified within level 1 of the valuation hierarchy. | |||||||||||
The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. | ||||||||||||
The following table sets forth by level, within the fair value hierarchy, the Plan's assets at fair value as of December 31, 2014 and December 31, 2013: | ||||||||||||
December 31, 2014 | Level 1 | Level 2 | Total | |||||||||
Common Stock | $ | 35,337 | $ | — | $ | 35,337 | ||||||
Money Market Fund | — | 3,320 | 3,320 | |||||||||
Mutual Funds | 26,671 | — | 26,671 | |||||||||
Fixed Income Securities | 8,103 | — | 8,103 | |||||||||
$ | 70,111 | $ | 3,320 | $ | 73,431 | |||||||
December 31, 2013 | Level 1 | Level 2 | Total | |||||||||
Common Stock | $ | 31,412 | $ | — | $ | 31,412 | ||||||
Money Market Fund | — | 7,018 | 7,018 | |||||||||
Mutual Funds | 28,726 | — | 28,726 | |||||||||
Fixed Income Securities | 9,286 | — | 9,286 | |||||||||
$ | 69,424 | $ | 7,018 | $ | 76,442 | |||||||
We do not expect to make any contributions to our pension plan for the 2015 Plan year. | ||||||||||||
The following table summarizes the benefits expected to be paid by our pension plan in each of the next five years and in aggregate for the following five years. The expected benefit payments are estimated based on the same assumptions used to measure the Company’s projected benefit obligation at December 31, 2014 and reflect the impact of expected future employee service. | ||||||||||||
2015 | $4,875 | |||||||||||
2016 | 2,892 | |||||||||||
2017 | 3,174 | |||||||||||
2018 | 3,589 | |||||||||||
2019 | 3,827 | |||||||||||
2020-2024 | 23,710 | |||||||||||
Legal_Matters_and_Contingencie
Legal Matters and Contingencies | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Matters and Contingencies | Legal Matters and Contingencies |
From time to time, we are subject to claims alleging product liability, patent infringement or other claims incurred in the ordinary course of business. These may involve our United States or foreign operations, or sales by foreign distributors. Likewise, from time to time, the Company may receive an information request or subpoena from a government agency such as the Securities and Exchange Commission, Department of Justice, Equal Employment Opportunity Commission, the Occupational Safety and Health Administration, the Department of Labor, the Treasury Department, or other federal and state agencies or foreign governments or government agencies. These information requests or subpoenas may or may not be routine inquiries, or may begin as routine inquiries and over time develop into enforcement actions of various types. The product liability claims are generally covered by various insurance policies, subject to certain deductible amounts, maximum policy limits and certain exclusions in the respective policies or as required as a matter of law. In some cases we may be entitled to indemnification by third parties. We establish reserves sufficient to cover probable losses associated with any such pending claims. We do not expect that the resolution of any pending claims or investigations will have a material adverse effect on our financial condition, results of operations or cash flows. There can be no assurance, however, that future claims or investigations, or the costs associated with responding to such claims or investigations, especially claims and investigations not covered by insurance, will not have a material adverse effect on our financial condition, results of operations or cash flows. | |
Manufacturers of medical products may face exposure to significant product liability claims. To date, we have not experienced any product liability claims that have been material to our financial statements or financial condition, but any such claims arising in the future could have a material adverse effect on our business or results of operations. We currently maintain commercial product liability insurance of $25 million per incident and $25 million in the aggregate annually, which we believe is adequate. This coverage is on a claims-made basis. There can be no assurance that claims will not exceed insurance coverage, that the carriers will be solvent or that such insurance will be available to us in the future at a reasonable cost. | |
Our operations are subject, and in the past have been subject, to a number of environmental laws and regulations governing, among other things, air emissions, wastewater discharges, the use, handling and disposal of hazardous substances and wastes, soil and groundwater remediation and employee health and safety. In some jurisdictions environmental requirements may be expected to become more stringent in the future. In the United States certain environmental laws can impose liability for the entire cost of site restoration upon each of the parties that may have contributed to conditions at the site regardless of fault or the lawfulness of the party’s activities. While we do not believe that the present costs of environmental compliance and remediation are material, there can be no assurance that future compliance or remedial obligations would not have a material adverse effect on our financial condition, results of operations or cash flows. | |
In September 2012, Bonutti Skeletal Innovations, LLC, an affiliate of Acacia Research Group, filed a complaint in the United States District Court for the Middle District of Florida against CONMED and certain of its subsidiaries. The Complaint asserts that select CONMED products infringe patents allegedly owned by Bonutti Skeletal Innovations. On the same day that it sued CONMED, Bonutti Skeletal Innovations sued several other orthopedic companies. The Company believed, and continues to believe, that the products in question do not infringe the patents-in-suit, and the Company vigorously defended the claims. In an order and decision dated March 25, 2014, the Court construed eight of the claims asserted in the case in a manner largely adverse to the plaintiff. In addition, on March 11 and March 28, 2014, the United States Patent Office granted CONMED's petitions for inter partes review with respect to two of the patents-in-suit. On April 23, 2014, CONMED and Acacia agreed to settle the claims for a payment by CONMED of $0.9 million. | |
During the third quarter of 2013, the FDA inspected our Centennial, CO manufacturing facility and issued a Form 483 with observations on September 20, 2013. We subsequently submitted responses to the Observations, and the FDA issued a Warning Letter on January 30, 2014 relating to the inspection and the responses to the Form 483 Observations. Accordingly, we undertook corrective actions. During the fourth quarter of 2014, the FDA again inspected our Centennial, CO manufacturing facility and, on November 18, 2014, issued a Form 483 with eight observations, three of which the FDA characterized as repeat observations. On December 10, 2014, we responded to the Form 483 Observations. We believe our responses were complete, although the FDA has not yet provided any response or feedback in this regard. The remediation costs to date have not been material, although there can be no assurance that a future inspection by the FDA will not result in an additional Form 483 or warning letter, or other regulatory actions, which may include consent decrees or fines. |
Other_Expense
Other Expense | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Other Income and Expenses [Abstract] | ||||||||||||
Other Expense | Other Expense | |||||||||||
Other expense for the year ended December 31, consists of the following: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Administrative consolidation costs | $ | 3,354 | $ | 8,750 | $ | 6,497 | ||||||
Costs associated with management restructuring | 12,546 | — | — | |||||||||
Costs associated with shareholder activism | 3,966 | — | — | |||||||||
Costs associated with purchase of a business | 722 | — | 1,194 | |||||||||
Costs associated with patent dispute and other matters | 3,374 | 3,206 | 1,555 | |||||||||
Pension settlement expense | — | 1,443 | — | |||||||||
Costs associated with purchase of a distributor | — | — | 704 | |||||||||
Other expense | $ | 23,962 | $ | 13,399 | $ | 9,950 | ||||||
During 2014, 2013 and 2012, we restructured certain administrative functions and incurred $3.4 million, $8.8 million and $6.5 million, respectively, in related costs consisting principally of severance charges and, for the 2013 year, also included the write-off of certain patents. | ||||||||||||
During 2014, we incurred $12.5 million in costs associated with restructuring of executive management. These costs include severance payments, accelerated vesting of stock-based compensation awards, accrual of the present value of deferred compensation and other benefits to our then Chief Executive Officer as defined in his termination agreement; accelerated vesting of stock-based compensation awards to certain members of executive management, consulting fees and other benefits earned as further described in our Form 8-K filing on July 23, 2014. | ||||||||||||
During 2014, we incurred $4.0 million in consulting and legal costs associated with shareholder activism. | ||||||||||||
During 2014 and 2012, we incurred $0.7 million and $1.2 million, respectively, in acquisition related costs as further described in Note 16. | ||||||||||||
During 2014 and 2013, we incurred $3.4 million and $3.2 million, respectively in legal and settlement costs. Legal costs for a patent infringement claim that we settled totaled $1.9 million and $3.2 million in 2014 and 2013, respectively. The 2014 patent infringement claim costs included $0.9 million in settlement costs during the first quarter of 2014 as further described in Note 10. The remaining $1.5 million in 2014 legal costs were associated with a legal matter in which we prevailed at trial and consulting fees. | ||||||||||||
During 2012, we incurred $1.6 million in legal costs related to a contractual dispute with a former distributor. The dispute was resolved in the second quarter of 2012. | ||||||||||||
During 2013, we had a higher level of lump sum withdrawals from pension plan participants. This resulted in an acceleration of the recognition of a portion of our projected benefit obligation and we therefore recorded a pension settlement expense of $1.4 million. Refer to Note 9 for details. | ||||||||||||
During 2012, we incurred $0.7 million in charges associated with the 2011 purchase the Company's former distributor for the Nordic region of Europe. |
Guarantees
Guarantees | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Guarantees [Abstract] | ||||||||||||
Guarantees | Guarantees | |||||||||||
We provide warranties on certain of our products at the time of sale. The standard warranty period for our capital and reusable equipment is generally one year. Liability under service and warranty policies is based upon a review of historical warranty and service claim experience. Adjustments are made to accruals as claim data and historical experience warrant. | ||||||||||||
Changes in the carrying amount of service and product warranties for the year ended December 31, are as follows: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Balance as of January 1, | $ | 2,422 | $ | 3,636 | $ | 3,618 | ||||||
Provision for warranties | 3,492 | 3,061 | 4,163 | |||||||||
Claims made | (3,628 | ) | (4,275 | ) | (4,145 | ) | ||||||
Balance as of December 31, | $ | 2,286 | $ | 2,422 | $ | 3,636 | ||||||
Fair_Value_Measurement
Fair Value Measurement | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value Measurement | Fair Value Measurement | |||||||||||||||
We enter into derivative instruments for risk management purposes only. We operate internationally and, in the normal course of business, are exposed to fluctuations in interest rates, foreign exchange rates and commodity prices. These fluctuations can increase the costs of financing, investing and operating the business. We use forward contracts, a type of derivative instrument, to manage certain foreign currency exposures. | ||||||||||||||||
By nature, all financial instruments involve market and credit risks. We enter into forward contracts with major investment grade financial institutions and have policies to monitor the credit risk of those counterparties. While there can be no assurance, we do not anticipate any material non-performance by any of these counterparties. | ||||||||||||||||
Foreign Currency Forward Contracts. We hedge forecasted intercompany sales denominated in foreign currencies through the use of forward contracts. We account for these forward contracts as cash flow hedges. To the extent these forward contracts meet hedge accounting criteria, changes in their fair value are not included in current earnings but are included in accumulated other comprehensive loss. These changes in fair value will be recognized into earnings as a component of sales or cost of sales when the forecasted transaction occurs. The notional contract amounts for forward contracts outstanding at December 31, 2014 which have been accounted for as cash flow hedges totaled $109.9 million. Net realized gains recognized for forward contracts accounted for as cash flow hedges approximated $0.6 million, $0.2 million and $3.8 million for the years ended December 31, 2014, 2013 and 2012, respectively. Net unrealized gains on forward contracts outstanding which have been accounted for as cash flow hedges and which have been included in other comprehensive income totaled $3.3 million at December 31, 2014. It is expected these unrealized gains will be recognized in the consolidated statement of comprehensive income in 2015. | ||||||||||||||||
We also enter into forward contracts to exchange foreign currencies for United States dollars in order to hedge our currency transaction exposures on intercompany receivables denominated in foreign currencies. These forward contracts settle each month at month-end, at which time we enter into new forward contracts. We have not designated these forward contracts as hedges and have not applied hedge accounting to them. The notional contract amounts for forward contracts outstanding at December 31, 2014 which have not been designated as hedges totaled $35.5 million. Net realized losses recognized in connection with those forward contracts not accounted for as hedges approximated -$0.2 million, -$0.3 million and -$2.1 million for the years ended December 31, 2014, 2013 and 2012, respectively, offsetting gains (losses) on our intercompany receivables of -$0.5 million, -$0.8 million and $0.8 million for the years ended December 31, 2014, 2013 and 2012, respectively. These gains and losses have been recorded in selling and administrative expense in the consolidated statements of comprehensive income. | ||||||||||||||||
We record these forward foreign exchange contracts at fair value; the following tables summarize the fair value for forward foreign exchange contracts outstanding at December 31, 2014 and 2013: | ||||||||||||||||
December 31, 2014 | Asset | Fair | Liabilities | Fair | Net | |||||||||||
Balance Sheet | Value | Balance Sheet | Value | Fair | ||||||||||||
Location | Location | Value | ||||||||||||||
Derivatives designated as hedged instruments: | ||||||||||||||||
Foreign exchange contracts | Prepaid & other current assets | $ | 6,167 | Prepaid & other current assets | $ | (971 | ) | $ | 5,196 | |||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||
Foreign exchange contracts | Prepaid & other current assets | 44 | Prepaid & other current assets | (61 | ) | (17 | ) | |||||||||
Total derivatives | $ | 6,211 | $ | (1,032 | ) | $ | 5,179 | |||||||||
December 31, 2013 | Asset | Fair | Liabilities | Fair | Net | |||||||||||
Balance Sheet | Value | Balance Sheet | Value | Fair | ||||||||||||
Location | Location | Value | ||||||||||||||
Derivatives designated as hedged instruments: | ||||||||||||||||
Foreign exchange contracts | Other current liabilities | $ | 975 | Other current liabilities | $ | (3,172 | ) | $ | (2,197 | ) | ||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||
Foreign exchange contracts | Other current liabilities | 52 | Other current liabilities | (78 | ) | (26 | ) | |||||||||
Total derivatives | $ | 1,027 | $ | (3,250 | ) | $ | (2,223 | ) | ||||||||
Our forward foreign exchange contracts are subject to a master netting agreement and qualify for netting in the consolidated balance sheets. Accordingly, at December 31, 2014 and December 31, 2013 we have recorded the net fair value of $5.2 million and -$2.2 million, respectively, in prepaids and other current assets and other current liabilities, respectively. | ||||||||||||||||
Fair Value Disclosure. FASB guidance defines fair value and establishes a framework for measuring fair value and related disclosure requirements. This guidance applies when fair value measurements are required or permitted. The guidance indicates, among other things, that a fair value measurement assumes that the transaction to sell an asset or transfer a liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. Fair value is defined based upon an exit price model. | ||||||||||||||||
Valuation Hierarchy. A valuation hierarchy was established for disclosure of the inputs to the valuations used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, including interest rates, yield curves and credit risks, or inputs that are derived principally from or corroborated by observable market data through correlation. Level 3 inputs are unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. There have been no changes in the assumptions since the acquisition. | ||||||||||||||||
Valuation Techniques. Assets and liabilities carried at fair value and measured on a recurring basis as of December 31, 2014 consist of forward foreign exchange contracts and contingent liabilities associated with a business acquisition as further described in Note 16. The Company values its forward foreign exchange contracts using quoted prices for similar assets. The most significant assumption is quoted currency rates. The value of the forward foreign exchange contract assets and liabilities were determined within Level 2 of the valuation hierarchy and are listed in the table above. | ||||||||||||||||
The business acquisition involves the potential for the payment of future contingent consideration upon the achievement of certain product development milestones and revenue based payments as further described in Note 16. Contingent consideration is recorded at the estimated fair value of the contingent milestone and revenue based payments on the acquisition date. The fair value of the contingent consideration is remeasured at the estimated fair value at each reporting period with the change in fair value recognized as income or expense within selling and administrative expenses in the consolidated statements of comprehensive income. We measure the initial liability and remeasure the liability on a recurring basis using Level 3 inputs as defined under authoritative guidance for fair value measurements. There have been no changes in the assumptions since the acquisition. | ||||||||||||||||
The carrying amounts reported in our balance sheets for cash and cash equivalents, accounts receivable, accounts payable and long-term debt approximate fair value. |
New_Accounting_Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements |
In May 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers." This ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration the company expects to receive in exchange for those goods or services. This ASU is effective for annual reporting periods beginning after December 15, 2016 and early adoption is not permitted. Accordingly, we will adopt this ASU on January 1, 2017. The new standard will become effective beginning with the first quarter of 2017 and can be adopted either retrospectively to each prior reporting period presented or as a cumulative effect adjustment as of the date of adoption. The Company is currently evaluating both the impact of adopting this new guidance on the consolidated financial statements and the method of adoption. | |
The Company does not believe there are any other new accounting pronouncements that would have a material impact on its financial position or results of operations. |
Restructuring
Restructuring | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||
Restructuring | Restructuring | |||||||||||
During 2014, 2013 and 2012 we incurred the following restructuring costs: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Facility consolidation costs | $ | 5,612 | $ | 6,489 | $ | 7,052 | ||||||
Termination of a product offering | — | 2,137 | — | |||||||||
Restructuring costs included in cost of sales | $ | 5,612 | $ | 8,626 | $ | 7,052 | ||||||
Administrative consolidation changes | $ | 3,354 | $ | 8,750 | $ | 6,497 | ||||||
Costs associated with management restructuring | 12,546 | — | — | |||||||||
Restructuring costs included in other expense | $ | 15,900 | $ | 8,750 | $ | 6,497 | ||||||
During 2014, 2013 and 2012, we continued our operational restructuring plan which includes the consolidation of our Finland operations into our Largo, Florida and Utica, New York manufacturing facilities; the consolidation of our Westborough, Massachusetts operations into our Largo, Florida and Chihuahua, Mexico facilities; and the consolidation of our Centennial, Colorado manufacturing operations into other existing CONMED manufacturing facilities. We believe the consolidation of our Finland and Westborough, Massachusetts operations are substantially complete and our Centennial, Colorado consolidation is to be completed over the next 12 months. We incurred $5.6 million, $6.5 million, and $7.1 million in costs associated with the operational restructuring during the years ending December 31, 2014, 2013 and 2012, respectively. These costs were charged to cost of sales and include severance and other charges associated with the consolidation of our Finland, Westborough, Massachusetts and Centennial, Colorado operations. | ||||||||||||
As part of our ongoing restructuring, the Company discontinued a patient monitoring product offering and incurred $2.1 million in costs which were charged to cost of sales during 2013. | ||||||||||||
Restructuring costs included in other expense are described more fully in Note 11. | ||||||||||||
We have recorded an accrual in current and other long term liabilities of $8.3 million at December 31, 2014 mainly related to severance and lease impairment costs associated with the restructuring. Below is a rollforward of the accrual: | ||||||||||||
Balance as of January 1, 2014 | $ | 3,128 | ||||||||||
Expenses incurred | 7,434 | |||||||||||
Payments made | (2,308 | ) | ||||||||||
Balance, December 31, 2014 | $ | 8,254 | ||||||||||
A significant portion of this accrual will be paid out in 2015 and 2016. |
Business_Acqusition
Business Acqusition | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Business Combinations [Abstract] | |||||
Business Acquisition | Business Acquisition | ||||
On July 30, 2014, the Company purchased the stock of EndoDynamix, Inc., a developer of minimally invasive surgical instruments, for a cash purchase price of $1.3 million and accrued $13.9 million in contingent consideration. The fair value of this acquisition included assets of $9.5 million related to in-process research and development to be amortized over a ten year period and $7.8 million in goodwill, and liabilities of $13.9 million related to contingent consideration and $1.8 million in deferred income tax liabilities. The allocation of purchase price is preliminary and therefore subject to adjustment in future periods. The remaining contingent consideration totaled $10.1 million as of December 31, 2014. Certain pro-forma and other disclosures are not included because the effects are not material. | |||||
On September 24, 2012, we purchased Viking Systems, Inc. ("Viking acquisition") for approximately $22.5 million in cash. Viking Systems, Inc. developed, manufactured and marketed visualization solutions for minimally invasive surgeries. | |||||
The unaudited pro forma statements of operations for the year ended December 31, 2012 are presented below. This pro forma statement of operations has been prepared for comparative purposes only and does not purport to be indicative of the results of operations which actually would have resulted had the Viking acquisition occurred on January 1, 2012, or which may result in the future. | |||||
2012 | |||||
Net sales | $ | 774,239 | |||
Net income | 38,018 | ||||
Earnings per share: | |||||
Basic | $ | 1.34 | |||
Diluted | 1.33 | ||||
Net sales of $3.4 million and a pre-tax loss of $1.5 million have been recorded in the consolidated statement of comprehensive income for the year ended December 31, 2012 related to the Viking acquisition. |
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Selected Quarterly Financial Data (Unaudited) | Selected Quarterly Financial Data (Unaudited) | |||||||||||||||
Selected quarterly financial data for 2014 and 2013 are as follows: | ||||||||||||||||
Three Months Ended | ||||||||||||||||
March | June | September | December | |||||||||||||
2014 | ||||||||||||||||
Net sales | $ | 181,941 | $ | 188,150 | $ | 174,961 | $ | 195,003 | ||||||||
Gross profit | 102,582 | 101,028 | 96,414 | 104,033 | ||||||||||||
Net income | 8,626 | 10,255 | 1,972 | 11,339 | ||||||||||||
EPS: | ||||||||||||||||
Basic | 0.32 | 0.38 | 0.07 | 0.41 | ||||||||||||
Diluted | 0.31 | 0.37 | 0.07 | 0.41 | ||||||||||||
Three Months Ended | ||||||||||||||||
March | June | September | December | |||||||||||||
2013 | ||||||||||||||||
Net sales | $ | 187,014 | $ | 192,993 | $ | 179,255 | $ | 203,442 | ||||||||
Gross profit | 102,682 | 102,916 | 95,424 | 111,395 | ||||||||||||
Net income | 10,492 | 9,533 | 5,687 | 10,227 | ||||||||||||
EPS: | ||||||||||||||||
Basic | 0.37 | 0.35 | 0.21 | 0.37 | ||||||||||||
Diluted | 0.37 | 0.34 | 0.2 | 0.36 | ||||||||||||
Items Included In Selected Quarterly Financial Data: | ||||||||||||||||
2014 | ||||||||||||||||
First Quarter | ||||||||||||||||
During the first quarter of 2014, we incurred $0.9 million in costs associated with the moving of additional product lines to our manufacturing facility in Chihuahua, Mexico; consolidation of our Finland operations into our Largo, Florida and Utica, New York manufacturing facilities; consolidation of our Westborough, Massachusetts operations into our Largo, Florida and Chihuahua, Mexico manufacturing facilities and the consolidation of our Centennial, Colorado manufacturing operations into other existing CONMED manufacturing facilities. These costs were charged to cost of sales – see Note 15. | ||||||||||||||||
During the first quarter of 2014, we recorded a charge of $0.7 million to other expense related to consolidating certain administrative functions - see Note 11 and Note 15. | ||||||||||||||||
During the first quarter of 2014, we recorded a charge of $1.9 million to other expense related to legal costs associated with a patent infringement claim that we settled, including $0.9 million in settlement costs - see Note 10 and Note 11. | ||||||||||||||||
During the first quarter of 2014, we recorded a charge of $0.6 million to other expense related to consulting and legal costs associated with shareholder activism - see Note 11. | ||||||||||||||||
In New York State, corporate tax reform enacted in March 2014 changed the tax rate of a manufacturing company such as CONMED to essentially 0%. Previously recorded New York State net deferred tax assets of $2.3 million have been written off as a non-cash charge to income tax expense - see Note 6. | ||||||||||||||||
Second Quarter | ||||||||||||||||
During the second quarter of 2014, we incurred $1.4 million in costs associated with the moving of additional product lines to our manufacturing facility in Chihuahua, Mexico and the consolidation of our Centennial, Colorado manufacturing operations into other existing CONMED manufacturing facilities. These costs were charged to cost of sales – see Note 15. | ||||||||||||||||
During the second quarter of 2014, we recorded a charge of $0.5 million to other expense related to consolidating certain administrative functions - see Note 11 and Note 15. | ||||||||||||||||
During the second quarter of 2014, we recorded a charge of $1.4 million to other expense related to a legal matter in which we prevailed at trial and consulting fees - see Note 11. | ||||||||||||||||
During the second quarter of 2014, we recorded a charge of $0.9 million to other expense related to consulting and legal costs associated with shareholder activism - see Note 11. | ||||||||||||||||
Third Quarter | ||||||||||||||||
During the third quarter of 2014, we incurred $1.4 million in costs associated with the moving of additional product lines to our manufacturing facility in Chihuahua, Mexico and the consolidation of our Centennial, Colorado manufacturing operations into other existing CONMED manufacturing facilities. These costs were charged to cost of sales – see Note 15. | ||||||||||||||||
During the third quarter of 2014, we recorded a charge of $0.6 million to other expense related to consolidating certain administrative functions - see Note 11 and Note 15. | ||||||||||||||||
During the third quarter of 2014, we recorded a charge of $2.4 million to other expense related to consulting and legal costs associated with shareholder activism - see Note 11. | ||||||||||||||||
During the third quarter of 2014, we recorded a charge of $11.0 million to other expense related to costs associated with restructuring of executive management. These costs include severance payments, accelerated vesting of stock-based compensation awards, accrual of the present value of deferred compensation and other benefits to our then Chief Executive Officer as defined in his termination agreement; accelerated vesting of stock-based compensation awards to certain members of executive management and other benefits earned - see Note 11. | ||||||||||||||||
During the third quarter of 2014, we recorded a charge of $0.3 million to other expense associated with the purchase of EndoDynamix, Inc. - see Note 11 and Note 16. | ||||||||||||||||
Fourth Quarter | ||||||||||||||||
During the fourth quarter of 2014, we incurred $1.9 million in costs associated with the moving of additional product lines to our manufacturing facility in Chihuahua, Mexico and the consolidation of our Centennial, Colorado manufacturing operations into other existing CONMED manufacturing facilities. These costs were charged to cost of sales – see Note 15. | ||||||||||||||||
During the fourth quarter of 2014, we recorded a charge of $1.5 million to other expense related to consolidating certain administrative functions - see Note 11 and Note 15. | ||||||||||||||||
During the fourth quarter of 2014, we recorded a charge of $0.1 million to other expense related to legal costs - see Note 11. | ||||||||||||||||
During the fourth quarter of 2014, we recorded a charge of $1.5 million to other expense related to costs associated with restructuring of executive management. These costs include accelerated vesting of stock-based compensation awards to certain members of executive management, consulting fees and other benefits earned - see Note 11. | ||||||||||||||||
During the fourth quarter of 2014, we recorded a charge of $0.3 million to other expense associated with the purchase of EndoDynamix, Inc. - see Note 11 and Note 16. | ||||||||||||||||
2013 | ||||||||||||||||
First Quarter | ||||||||||||||||
During the first quarter of 2013, we incurred $1.6 million in costs associated with the moving of additional product lines to our manufacturing facility in Chihuahua, Mexico; consolidation of our Finland operations into our Largo, Florida and Utica, New York manufacturing facilities and consolidation of our Westborough, Massachusetts operations into our Largo, Florida and Chihuahua, Mexico manufacturing facilities. These costs were charged to cost of sales – see Note 15. | ||||||||||||||||
During the first quarter of 2013, we recorded a charge of $1.6 million to other expense related to consolidating certain administrative functions - see Note 11 and Note 15. | ||||||||||||||||
During the first quarter of 2013, we recorded a charge of $0.2 million to other expense related to legal costs associated with a patent infringement claim - see Note 10 and Note 11. | ||||||||||||||||
During the first quarter of 2013, we recorded a $0.3 million loss on the early extinguishment of debt related to write-off of unamortized deferred financing costs under the then existing senior credit agreement - see Note 5. | ||||||||||||||||
Second Quarter | ||||||||||||||||
During the second quarter of 2013, we incurred $1.6 million in costs associated with the moving of additional product lines to our manufacturing facility in Chihuahua, Mexico; consolidation of our Finland operations into our Largo, Florida and Utica, New York manufacturing facilities and consolidation of our Westborough, Massachusetts operations into our Largo, Florida and Chihuahua, Mexico manufacturing facilities. These costs were charged to cost of sales – see Note 15. | ||||||||||||||||
During the second quarter of 2013, we recorded a charge of $1.6 million to other expense related to consolidating certain administrative functions - see Note 11 and Note 15. | ||||||||||||||||
During the second quarter of 2013, we recorded a charge of $0.5 million to other expense related to legal costs associated with a patent infringement claim - see Note 10 and Note 11. | ||||||||||||||||
Third Quarter | ||||||||||||||||
During the third quarter of 2013, we incurred $1.1 million in costs associated with the moving of additional product lines to our manufacturing facility in Chihuahua, Mexico; consolidation of our Finland operations into our Largo, Florida and Utica, New York manufacturing facilities and consolidation of our Westborough, Massachusetts operations into our Largo, Florida and Chihuahua, Mexico manufacturing facilities. These costs were charged to cost of sales – see Note 15. | ||||||||||||||||
During the third quarter of 2013, the Company discontinued a patient monitoring product offering and incurred $2.1 million in costs which were charged to cost of sales - see Note 15. | ||||||||||||||||
During the third quarter of 2013, we recorded a charge of $3.1 million to other expense related to consolidating certain administrative functions - see Note 11 and Note 15. | ||||||||||||||||
During the third quarter of 2013, we recorded a charge of $1.5 million to other expense related to legal costs associated with a patent infringement claim - see Note 10 and Note 11. | ||||||||||||||||
Fourth Quarter | ||||||||||||||||
During the fourth quarter of 2013, we incurred $2.1 million in costs associated with the moving of additional product lines to our manufacturing facility in Chihuahua, Mexico; consolidation of our Finland operations into our Largo, Florida and Utica, New York manufacturing facilities and consolidation of our Westborough, Massachusetts operations into our Largo, Florida and Chihuahua, Mexico manufacturing facilities. These costs were charged to cost of sales – see Note 15. | ||||||||||||||||
During the fourth quarter of 2013, we recorded a charge of $2.4 million to other expense related to consolidating certain administrative functions - see Note 11 and Note 15. | ||||||||||||||||
During the fourth quarter of 2013, we recorded a charge of $1.0 million to other expense related to legal costs associated with a patent infringement claim - see Note 10 and Note 11. | ||||||||||||||||
During the fourth quarter of 2013, we recorded a $1.4 million pension settlement expense to other expense - See Note 9 and Note 11. |
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||
Valuation and Qualifying Accounts | SCHEDULE II—Valuation and Qualifying Accounts | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Column C | |||||||||||||||||||||
Additions | |||||||||||||||||||||
Column B | |||||||||||||||||||||
Balance at | Charged to | Charged to | Column E | ||||||||||||||||||
Column A | Beginning of | Costs and | Other | Column D | Balance at End | ||||||||||||||||
Description | Period | Expenses | Accounts | Deductions | of Period | ||||||||||||||||
2014 | |||||||||||||||||||||
Allowance for bad debts | $ | 1,384 | $ | 517 | $ | — | $ | (662 | ) | $ | 1,239 | ||||||||||
Sales returns and | |||||||||||||||||||||
allowance | 3,098 | 252 | — | (269 | ) | 3,081 | |||||||||||||||
Deferred tax asset | |||||||||||||||||||||
valuation allowance | — | 293 | — | — | 293 | ||||||||||||||||
2013 | |||||||||||||||||||||
Allowance for bad debts | $ | 1,203 | $ | 421 | $ | — | $ | (240 | ) | $ | 1,384 | ||||||||||
Sales returns and | |||||||||||||||||||||
allowance | 3,609 | 398 | — | (909 | ) | 3,098 | |||||||||||||||
Deferred tax asset | |||||||||||||||||||||
valuation allowance | — | — | — | — | — | ||||||||||||||||
2012 | |||||||||||||||||||||
Allowance for bad debts | $ | 1,183 | $ | 530 | $ | — | $ | (510 | ) | $ | 1,203 | ||||||||||
Sales returns and | |||||||||||||||||||||
allowance | 4,097 | 317 | — | (805 | ) | 3,609 | |||||||||||||||
Deferred tax asset | |||||||||||||||||||||
valuation allowance | — | — | — | — | — | ||||||||||||||||
Operations_and_Significant_Acc1
Operations and Significant Accounting Policies (Policies) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Principles of consolidation | Principles of consolidation | ||
The consolidated financial statements include the accounts of CONMED Corporation and its controlled subsidiaries. All significant intercompany accounts and transactions have been eliminated. | |||
Use of estimates | Use of estimates | ||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and judgments which affect the reported amounts of assets, liabilities, related disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Estimates are used in accounting for, among other things, allowances for doubtful accounts, rebates and sales allowances, inventory allowances, purchased in-process research and development, pension benefits, goodwill and intangible assets, contingent consideration, contingencies and other accruals. We base our estimates on historical experience and on various other assumptions which are believed to be reasonable under the circumstances. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may differ from those estimates. Estimates and assumptions are reviewed periodically, and the effect of revisions is reflected in the consolidated financial statements in the period they are determined to be necessary. | |||
Cash and cash equivalents | Cash and cash equivalents | ||
We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. | |||
Inventories | Inventories | ||
Inventories are valued at the lower of cost or market. Cost is determined on the FIFO (first-in, first-out) method of accounting. | |||
We write-off excess and obsolete inventory resulting from the inability to sell our products at prices in excess of current carrying costs. We make estimates regarding the future recoverability of the costs of our products and record a provision for excess and obsolete inventories based on historical experience and expected future trends. | |||
Property, plant and equipment | Property, plant and equipment | ||
Property, plant and equipment are stated at cost and depreciated using the straight-line method over the following estimated useful lives: | |||
Building and improvements | 12 to 40 years | ||
Leasehold improvements | Shorter of life of asset or life of lease | ||
Machinery and equipment | 2 to 15 years | ||
Goodwill and other intangible assets | Goodwill and other intangible assets | ||
We have a history of growth through acquisitions. Assets and liabilities of acquired businesses are recorded at their estimated fair values as of the date of acquisition. Goodwill represents costs in excess of fair values assigned to the underlying net assets of acquired businesses. Customer relationships, trademarks, tradenames, patents and other intangible assets primarily represent allocations of purchase price to identifiable intangible assets of acquired businesses. Promotional, marketing and distribution rights represent intangible assets created under our Sports Medicine Joint Development and Distribution Agreement (the "JDDA") with Musculoskeletal Transplant Foundation (“MTF”). We have accumulated goodwill of $256.2 million and other intangible assets of $316.4 million as of December 31, 2014. | |||
In accordance with FASB guidance, goodwill and intangible assets deemed to have indefinite lives are not amortized, but are subject to at least annual impairment testing. It is our policy to perform our annual impairment testing in the fourth quarter. The identification and measurement of goodwill impairment involves the estimation of the fair value of our business. Estimates of fair value are based on the best information available as of the date of the assessment. During 2014, we completed our goodwill impairment testing with data as of October 1, 2014. We performed a Step 1 impairment test in accordance with ASC 350 utilizing the market capitalization approach to determine whether the fair value of a reporting unit is less than its carrying amount. Based upon our assessment, we believe the fair value continues to exceed carrying value. | |||
Intangible assets with a finite life are amortized over the estimated useful life of the asset and are evaluated each reporting period to determine whether events and circumstances warrant a revision to the remaining period of amortization. Intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. The carrying amount of an intangible asset subject to amortization is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use of the asset. An impairment loss is recognized by reducing the carrying amount of the intangible asset to its current fair value. | |||
Customer relationship assets arose principally as a result of the 1997 acquisition of Linvatec Corporation. These assets represent the acquisition date fair value of existing customer relationships based on the after-tax income expected to be derived during their estimated remaining useful life. The useful lives of these customer relationships were not, and are not, limited by contract or any economic, regulatory or other known factors. The estimated useful life of the Linvatec customer relationship assets was determined as of the date of acquisition as a result of a study of the observed pattern of historical revenue attrition during the 5 years immediately preceding the acquisition of Linvatec Corporation. This observed attrition pattern was then applied to the existing customer relationships to derive the future expected useful life of the customer relationships. This analysis indicated an annual attrition rate of 2.6%. Assuming an exponential attrition pattern, this equated to an average remaining useful life of approximately 38 years for the Linvatec customer relationship assets. Customer relationship intangible assets arising as a result of other business acquisitions are being amortized over a weighted average life of 16 years. The weighted average life for customer relationship assets in aggregate is 33 years. | |||
We evaluate the remaining useful life of our customer relationship intangible assets each reporting period in order to determine whether events and circumstances warrant a revision to the remaining period of amortization. In order to further evaluate the remaining useful life of our customer relationship intangible assets, we perform an analysis and assessment of actual customer attrition and activity as events and circumstances warrant. This assessment includes a comparison of customer activity since the acquisition date and review of customer attrition rates. In the event that our analysis of actual customer attrition rates indicates a level of attrition that is in excess of that which was originally contemplated, we would change the estimated useful life of the related customer relationship asset with the remaining carrying amount amortized prospectively over the revised remaining useful life. | |||
We test our customer relationship assets for recoverability whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Factors specific to our customer relationship assets which might lead to an impairment charge include a significant increase in the annual customer attrition rate or otherwise significant loss of customers, significant decreases in sales or current-period operating or cash flow losses or a projection or forecast of losses. We do not believe that there have been events or changes in circumstances which would indicate the carrying amount of our customer relationship assets might not be recoverable. | |||
For all other indefinite lived intangible assets, we perform a qualitative impairment test in accordance with ASC 350. Based upon this assessment, we have determined that it is unlikely that our indefinite lived intangible assets are impaired. | |||
Other long-lived assets | Other long-lived assets | ||
We review asset carrying amounts for impairment (consisting of intangible assets subject to amortization and property, plant and equipment) whenever events or circumstances indicate that such carrying amounts may not be recoverable. If the sum of the expected future undiscounted cash flows is less than the carrying amount of the asset, an impairment loss is recognized by reducing the recorded value to its current fair value. | |||
Translation of foreign currency financial statements | Translation of foreign currency financial statements | ||
Assets and liabilities of foreign subsidiaries have been translated into United States dollars at the applicable rates of exchange in effect at the end of the period reported. Revenues and expenses have been translated at the applicable weighted average rates of exchange in effect during the period reported. Translation adjustments are reflected in accumulated other comprehensive loss. Transaction gains and losses are included in net income. | |||
Foreign exchange and hedging activity | Foreign exchange and hedging activity | ||
We manage our foreign currency transaction risks through the use of forward contracts to hedge forecasted cash flows associated with foreign currency transaction exposures. We account for these forward contracts as cash flow hedges. To the extent these forward contracts meet hedge accounting criteria, changes in their fair value are not included in current earnings but are included in accumulated other comprehensive loss. These changes in fair value will be reclassified into earnings as a component of sales or cost of sales when the forecasted transaction occurs. | |||
We also enter into forward contracts to exchange foreign currencies for United States dollars in order to hedge our currency transaction exposures on intercompany receivables denominated in foreign currencies. These forward contracts settle each month at month-end, at which time we enter into new forward contracts. We have not designated these forward contracts as hedges and have not applied hedge accounting to them. We record these forward contracts at fair value with resulting gains and losses included in selling and administrative expense in the consolidated statements of comprehensive income. | |||
Income taxes | Income taxes | ||
Deferred income tax assets and liabilities are based on the difference between the financial statement and tax basis of assets and liabilities and operating loss and tax credit carryforwards as measured by the enacted tax rates that are anticipated to be in effect in the respective jurisdictions when these differences reverse. The deferred income tax provision generally represents the net change in the assets and liabilities for deferred income taxes. A valuation allowance is established when it is necessary to reduce deferred income tax assets to amounts for which realization is likely. In assessing the need for a valuation allowance, we estimate future taxable income, considering the feasibility of ongoing tax planning strategies and the realizability of tax loss carryforwards. Valuation allowances related to deferred tax assets may be impacted by changes to tax laws, changes to statutory tax rates, reversal of temporary differences and ongoing and future taxable income levels. | |||
Deferred income taxes are not provided on the unremitted earnings of subsidiaries outside of the United States when it is expected that these earnings are permanently reinvested. Such earnings may become taxable upon a repatriation of assets from a subsidiary or the sale or liquidation of a subsidiary. Deferred income taxes are provided when the Company no longer considers subsidiary earnings to be permanently invested, such as in situations where the Company’s subsidiaries plan to make future dividend distributions. | |||
Revenue recognition | Revenue recognition | ||
Revenue is recognized when title has been transferred to the customer which is at the time of shipment. The following policies apply to our major categories of revenue transactions: | |||
• | Sales to customers are evidenced by firm purchase orders. Title and the risks and rewards of ownership are transferred to the customer when product is shipped under our stated shipping terms. Payment by the customer is due under fixed payment terms and collectability is reasonably assured. | ||
• | We place certain of our capital equipment with customers on a loaned basis in return for commitments to purchase related single-use products over time periods generally ranging from one to three years. In these circumstances, no revenue is recognized upon capital equipment shipment as the equipment is loaned and subject to return if certain minimum single-use purchases are not met. Revenue is recognized upon the sale and shipment of the related single-use products. The cost of the equipment is amortized over its estimated useful life. | ||
• | We recognize revenues related to the promotion and marketing of sports medicine allograft tissue in accordance with the contractual terms of our agreement with Musculoskeletal Transplant Foundation (“MTF”) on a net basis as our role is limited to that of an agent earning a commission or fee. MTF records revenue when the tissue is shipped to the customer. Our services are completed at this time and net revenues for the “Service Fee” for our promotional and marketing efforts are then recognized based on a percentage of the net amounts billed by MTF to its customers. The timing of revenue recognition is determined through review of the net billings made by MTF each month. Our net commission Service Fee is based on the contractual terms of our agreement and is currently 50%. This percentage can vary over the term of the agreement but is contractually determinable. Our Service Fee revenues are recorded net of amortization of the acquired assets, which are being expensed over the expected useful life of 25 years. | ||
• | Product returns are only accepted at the discretion of the Company and in accordance with our “Returned Goods Policy”. Historically the level of product returns has not been significant. We accrue for sales returns, rebates and allowances based upon an analysis of historical customer returns and credits, rebates, discounts and current market conditions. | ||
• | Our terms of sale to customers generally do not include any obligations to perform future services. Limited warranties are provided for capital equipment sales and provisions for warranty are provided at the time of product sale based upon an analysis of historical data. | ||
• | Amounts billed to customers related to shipping and handling have been included in net sales. Shipping and handling costs included in selling and administrative expense were $13.6 million, $12.6 million and $12.8 million for 2014, 2013 and 2012, respectively. | ||
• | We sell to a diversified base of customers around the world and, therefore, believe there is no material concentration of credit risk. | ||
• | We assess the risk of loss on accounts receivable and adjust the allowance for doubtful accounts based on this risk assessment. Historically, losses on accounts receivable have not been material. Management believes that the allowance for doubtful accounts of $1.2 million at December 31, 2014 is adequate to provide for probable losses resulting from accounts receivable. | ||
Earnings per share | Earnings per share | ||
Basic earnings per share (“basic EPS”) is computed by dividing net income by the weighted average number of common shares outstanding for the reporting period. Diluted earnings per share (“diluted EPS”) gives effect to all dilutive potential shares outstanding resulting from employee stock options, restricted stock units, performance share units and stock appreciation rights during the period. | |||
Stock-based compensation | Stock-based compensation | ||
All share-based payments to employees, including grants of employee stock options, restricted stock units, performance share units and stock appreciation rights are recognized in the financial statements based at their fair values. Compensation expense is generally recognized using a straight-line method over the vesting period. Compensation expense for performance share units is recognized using the graded vesting method. | |||
We issue shares under our stock based compensation plans out of treasury stock whereby treasury stock is reduced by the weighted average cost of such treasury stock. To the extent there is a difference between the cost of the treasury stock and the exercise price of shares issued under stock based compensation plans, we record gains to paid in capital; losses are recorded to paid in capital to the extent any gain was previously recorded, otherwise the loss is recorded to retained earnings. | |||
Operations_and_Significant_Acc2
Operations and Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||
Schedule of property plant and equipment useful life | Property, plant and equipment are stated at cost and depreciated using the straight-line method over the following estimated useful lives: | |||||||||||||||
Building and improvements | 12 to 40 years | |||||||||||||||
Leasehold improvements | Shorter of life of asset or life of lease | |||||||||||||||
Machinery and equipment | 2 to 15 years | |||||||||||||||
Schedule of calculation of basic and diluted earnings per share | The following table sets forth the computation of basic and diluted earnings per share at December 31, 2014, 2013 and 2012, respectively: | |||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Net income | $ | 32,192 | $ | 35,939 | $ | 40,481 | ||||||||||
Basic-weighted average shares outstanding | 27,401 | 27,722 | 28,301 | |||||||||||||
Effect of dilutive potential securities | 368 | 392 | 352 | |||||||||||||
Diluted-weighted average shares outstanding | 27,769 | 28,114 | 28,653 | |||||||||||||
Basic EPS | $ | 1.17 | $ | 1.3 | $ | 1.43 | ||||||||||
Diluted EPS | $ | 1.16 | $ | 1.28 | $ | 1.41 | ||||||||||
Schedule of accumulated other comprehensive loss | Accumulated other comprehensive loss consists of the following: | |||||||||||||||
Cash Flow | Pension | Cumulative | Accumulated | |||||||||||||
Hedging | Liability | Translation | Other | |||||||||||||
Gain (Loss) | Adjustments | Comprehensive | ||||||||||||||
Loss | ||||||||||||||||
Balance, December 31, 2013 | $ | (1,385 | ) | $ | (18,918 | ) | $ | 2,731 | $ | (17,572 | ) | |||||
Other comprehensive income | 5,061 | (10,551 | ) | (15,069 | ) | (20,559 | ) | |||||||||
before reclassifications | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive income before taxa | (635 | ) | (2,048 | ) | — | (2,683 | ) | |||||||||
Tax expense | 235 | 757 | — | 992 | ||||||||||||
Net current-period other comprehensive income (loss) | 4,661 | (11,842 | ) | (15,069 | ) | (22,250 | ) | |||||||||
Balance, December 31, 2014 | $ | 3,276 | $ | (30,760 | ) | $ | (12,338 | ) | $ | (39,822 | ) | |||||
Cash Flow | Pension | Cumulative | Accumulated | |||||||||||||
Hedging | Liability | Translation | Other | |||||||||||||
Gain (Loss) | Adjustments | Comprehensive | ||||||||||||||
Loss | ||||||||||||||||
Balance, December 31, 2012 | $ | (1,130 | ) | $ | (30,375 | ) | $ | 3,924 | $ | (27,581 | ) | |||||
Other comprehensive income | (158 | ) | 8,618 | (1,193 | ) | 7,267 | ||||||||||
before reclassifications | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive income before taxa | (153 | ) | 4,502 | — | 4,349 | |||||||||||
Tax expense (benefit) | 56 | (1,663 | ) | — | (1,607 | ) | ||||||||||
Net current-period other comprehensive income (loss) | (255 | ) | 11,457 | (1,193 | ) | 10,009 | ||||||||||
Balance, December 31, 2013 | $ | (1,385 | ) | $ | (18,918 | ) | $ | 2,731 | $ | (17,572 | ) | |||||
(a) The cash flow hedging gain (loss) and pension liability accumulated other comprehensive income components are included in sales or cost of sales and as a component of net periodic pension cost, respectively. Refer to Note 13 and Note 9, respectively, for further details. |
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Schedule of inventory | Inventories consist of the following at December 31,: | |||||||
2014 | 2013 | |||||||
Raw materials | $ | 44,847 | $ | 39,029 | ||||
Work in process | 13,876 | 14,736 | ||||||
Finished goods | 89,426 | 89,446 | ||||||
$ | 148,149 | $ | 143,211 | |||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Schedule of property, plant and equipment | Property, plant and equipment consist of the following at December 31,: | |||||||
2014 | 2013 | |||||||
Land | $ | 4,243 | $ | 4,243 | ||||
Building and improvements | 96,953 | 95,397 | ||||||
Machinery and equipment | 191,306 | 180,064 | ||||||
Construction in progress | 5,140 | 8,750 | ||||||
297,642 | 288,454 | |||||||
Less: Accumulated depreciation | (164,213 | ) | (149,469 | ) | ||||
$ | 133,429 | $ | 138,985 | |||||
Schedule of aggregate future minimum lease commitments for operating leases | The aggregate future minimum lease commitments for operating leases at December 31, 2014 are as follows: | |||||||
2015 | $ | 6,229 | ||||||
2016 | 4,592 | |||||||
2017 | 3,785 | |||||||
2018 | 3,618 | |||||||
2019 | 3,426 | |||||||
Thereafter | 1,799 | |||||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||
Schedule of Goodwill | The changes in the net carrying amount of goodwill for the years ended December 31, are as follows: | |||||||||||||||
2014 | 2013 | |||||||||||||||
Balance as of January 1, | $ | 248,428 | $ | 248,502 | ||||||||||||
Goodwill resulting from business acquisitions | 7,773 | — | ||||||||||||||
Foreign currency translation | 31 | (74 | ) | |||||||||||||
Balance as of December 31, | $ | 256,232 | $ | 248,428 | ||||||||||||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets | Other intangible assets consist of the following: | |||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||
Gross | Accumulated | Gross | Accumulated | |||||||||||||
Carrying | Amortization | Carrying | Amortization | |||||||||||||
Amount | Amount | |||||||||||||||
Amortized intangible assets: | ||||||||||||||||
Customer relationships | $ | 136,126 | $ | (59,707 | ) | $ | 135,690 | $ | (54,982 | ) | ||||||
Promotional, marketing & distribution rights | 149,376 | (18,000 | ) | 149,376 | (12,000 | ) | ||||||||||
Patents and other intangible assets | 63,464 | (41,363 | ) | 53,903 | (39,091 | ) | ||||||||||
Unamortized intangible assets: | ||||||||||||||||
Trademarks and tradenames | 86,544 | — | 86,544 | — | ||||||||||||
$ | 435,510 | $ | (119,070 | ) | $ | 425,513 | $ | (106,073 | ) | |||||||
Schedule of Estimated Amortization Expense | Estimated amortization expense related to intangible assets for each of the five succeeding years is as follows: | |||||||||||||||
Amortization included in expense | Amortization recorded as a reduction of revenue | Total | ||||||||||||||
2015 | 6,615 | 6,000 | $ | 12,615 | ||||||||||||
2016 | 7,461 | 6,000 | $ | 13,461 | ||||||||||||
2017 | 7,447 | 6,000 | $ | 13,447 | ||||||||||||
2018 | 7,392 | 6,000 | $ | 13,392 | ||||||||||||
2019 | 7,392 | 6,000 | $ | 13,392 | ||||||||||||
Long_Term_Debt_Tables
Long Term Debt (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Schedule of Long-term Debt | Long-term debt consists of the following at December 31,: | |||||||
2014 | 2013 | |||||||
Revolving line of credit | $ | 235,000 | $ | 208,000 | ||||
Mortgage notes | 6,435 | 7,575 | ||||||
Total long-term debt | 241,435 | 215,575 | ||||||
Less: Current portion | 1,234 | 1,140 | ||||||
$ | 240,201 | $ | 214,435 | |||||
Schedule of Maturities of Long-term Debt | The scheduled maturities of long-term debt outstanding at December 31, 2014 are as follows: | |||||||
2015 | $ | 1,234 | ||||||
2016 | 1,339 | |||||||
2017 | 1,452 | |||||||
2018 | 236,574 | |||||||
2019 | 836 | |||||||
Thereafter | — | |||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Schedule of Provision for Income Taxes | The provision for income taxes for the years ended December 31, 2014, 2013 and 2012 consists of the following: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Current tax expense (benefit): | ||||||||||||
Federal | $ | 2,256 | $ | (2,274 | ) | $ | 503 | |||||
State | 516 | 502 | 374 | |||||||||
Foreign | 11,995 | 9,247 | 5,176 | |||||||||
14,767 | 7,475 | 6,053 | ||||||||||
Deferred income tax expense (benefit) | (284 | ) | 7,218 | 12,946 | ||||||||
Provision for income taxes | $ | 14,483 | $ | 14,693 | $ | 18,999 | ||||||
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation between income taxes computed at the statutory federal rate and the provision for income taxes for the years ended December 31, 2014, 2013 and 2012 follows: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Tax provision at statutory rate based on income before income taxes | 35 | % | 35 | % | 35 | % | ||||||
State income taxes, net of federal tax benefit | 1.7 | 1.8 | 1.5 | |||||||||
New York State corporate tax reform | 5.5 | — | — | |||||||||
Stock-based compensation | (0.2 | ) | (0.5 | ) | (0.2 | ) | ||||||
Foreign income taxes | (4.8 | ) | (3.1 | ) | (4.0 | ) | ||||||
Federal research credit | (2.1 | ) | (2.8 | ) | — | |||||||
Settlement of taxing authority examinations | (3.7 | ) | (2.0 | ) | (0.8 | ) | ||||||
European permanent deduction | (3.8 | ) | (2.4 | ) | — | |||||||
Non deductible/non-taxable items | 1.8 | 2.9 | 1.3 | |||||||||
Other, net | 1.6 | 0.1 | (0.9 | ) | ||||||||
31 | % | 29 | % | 31.9 | % | |||||||
Schedule of Deferred Tax Assets and Liabilities | The tax effects of the significant temporary differences which comprise the deferred income tax assets and liabilities at December 31, 2014 and 2013 are as follows: | |||||||||||
2014 | 2013 | |||||||||||
Assets: | ||||||||||||
Inventory | $ | 4,476 | $ | 3,445 | ||||||||
Net operating losses | 10,207 | 6,450 | ||||||||||
Capitalized research and development | 1,850 | 2,286 | ||||||||||
Deferred compensation | 3,507 | 3,025 | ||||||||||
Accounts receivable | 2,604 | 2,642 | ||||||||||
Compensation and benefits | 6,003 | 5,601 | ||||||||||
Accrued pension | 6,186 | (173 | ) | |||||||||
Research and development credit | 6,198 | 5,027 | ||||||||||
Other | 1,564 | 4,365 | ||||||||||
Foreign tax credit | 2,283 | 332 | ||||||||||
Less: valuation allowances | (293 | ) | — | |||||||||
44,585 | 33,000 | |||||||||||
Liabilities: | ||||||||||||
Goodwill and intangible assets | 120,012 | 114,075 | ||||||||||
Depreciation | 14,041 | 13,486 | ||||||||||
State taxes | 6,737 | 3,914 | ||||||||||
Contingent interest | 272 | 339 | ||||||||||
141,062 | 131,814 | |||||||||||
Net liability | $ | (96,477 | ) | $ | (98,814 | ) | ||||||
Schedule of Income before Income Tax | Income before income taxes consists of the following U.S. and foreign income: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
U.S. income | $ | 12,374 | $ | 20,106 | $ | 33,121 | ||||||
Foreign income | 34,301 | 30,526 | 26,359 | |||||||||
Total income | $ | 46,675 | $ | 50,632 | $ | 59,480 | ||||||
Schedule of Unrecognized Tax Benefits Rollforward | The following table summarizes the activity related to our unrecognized tax benefits for the years ending December 31,: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Balance as of January 1, | $ | 1,689 | $ | 1,587 | $ | 2,343 | ||||||
Increases for positions taken in prior periods | 45 | 70 | 30 | |||||||||
Increases for positions taken in current periods | — | 1,132 | 1,129 | |||||||||
Decreases in unrecorded tax positions related to settlement with the taxing authorities | (1,073 | ) | (1,010 | ) | (1,857 | ) | ||||||
Decreases in unrecorded tax positions related to lapse of statute of limitations | (80 | ) | (90 | ) | (58 | ) | ||||||
Balance as of December 31, | $ | 581 | $ | 1,689 | $ | 1,587 | ||||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Schedule of stock option and SAR activity | The following table illustrates the stock option and SAR activity for the year ended December 31, 2014. | |||||||||||
Number | Weighted- | |||||||||||
of | Average | |||||||||||
Shares | Exercise | |||||||||||
(in 000’s) | Price | |||||||||||
Outstanding at December 31, 2013 | 1,130 | $ | 25.55 | |||||||||
Granted | 109 | $ | 44.56 | |||||||||
Forfeited | (68 | ) | $ | 40.76 | ||||||||
Exercised | (718 | ) | $ | 24.9 | ||||||||
Outstanding at December 31, 2014 | 453 | $ | 28.85 | |||||||||
Exercisable at December 31, 2014 | 245 | $ | 25.38 | |||||||||
SARs expected to vest | 208 | $ | 32.93 | |||||||||
Stock Options and Stock Appreciation Rights (SARs) [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Valuation Assumptions | The following table illustrates the assumptions used in estimating fair value in the years ended December 31, 2014, 2013 and 2012. | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Grant date fair value of SARs | $ | 13.4 | $ | 9.77 | $ | 7.38 | ||||||
Expected stock price volatility | 34.85 | % | 35.88 | % | 35.84 | % | ||||||
Risk-free interest rate | 1.53 | % | 1.04 | % | 0.62 | % | ||||||
Expected annual dividend yield | 1.8 | % | 1.79 | % | 2 | % | ||||||
Expected life of options & SARs (years) | 6.4 | 6.3 | 6.4 | |||||||||
Restricted Stock Units (RSUs) and Performance Share Units (PSUs) [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Schedule of RSU and PSU activity | The following table illustrates the RSU and PSU activity for the year ended December 31, 2014. | |||||||||||
Number | Weighted- | |||||||||||
of | Average | |||||||||||
Shares | Grant-Date | |||||||||||
(in 000’s) | Fair Value | |||||||||||
Outstanding at December 31, 2013 | 476 | $ | 27.14 | |||||||||
Granted | 184 | $ | 43.21 | |||||||||
Vested | (259 | ) | $ | 28.54 | ||||||||
Forfeited | (79 | ) | $ | 35.1 | ||||||||
Outstanding at December 31, 2014 | 322 | $ | 33.14 | |||||||||
Business_Segments_and_Geograph1
Business Segments and Geographic Areas (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Schedule of net sales information by product line and reportable segment | These product lines' net sales are as follows: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Orthopedic surgery | $ | 402,750 | $ | 410,171 | $ | 413,891 | ||||||
General surgery | 279,356 | 286,747 | 286,606 | |||||||||
Surgical visualization | 57,949 | 65,786 | 66,643 | |||||||||
Consolidated net sales | $ | 740,055 | $ | 762,704 | $ | 767,140 | ||||||
Schedule of net sales information for geographic areas | Net sales information for geographic areas consists of the following: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
United States | $ | 360,960 | $ | 375,473 | $ | 382,256 | ||||||
Canada | 63,686 | 73,457 | 73,746 | |||||||||
United Kingdom | 30,496 | 28,471 | 31,653 | |||||||||
Japan | 37,230 | 36,705 | 33,997 | |||||||||
Australia | 38,711 | 38,752 | 40,835 | |||||||||
All other countries | 208,972 | 209,846 | 204,653 | |||||||||
Total | $ | 740,055 | $ | 762,704 | $ | 767,140 | ||||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||
Schedule of reconciliation of the projected benefit obligation, plan assets and funded status of the pension plan | The following table provides a reconciliation of the projected benefit obligation, plan assets and funded status of the pension plan at December 31,: | |||||||||||
2014 | 2013 | |||||||||||
Accumulated Benefit Obligation | $ | 91,107 | $ | 75,946 | ||||||||
Change in benefit obligation | ||||||||||||
Projected benefit obligation at beginning of year | $ | 75,946 | $ | 85,363 | ||||||||
Service cost | 271 | 253 | ||||||||||
Interest cost | 3,465 | 3,315 | ||||||||||
Actuarial (gain) loss | 16,546 | (8,082 | ) | |||||||||
Benefits paid | (1,414 | ) | (1,250 | ) | ||||||||
Settlement | (3,707 | ) | (3,653 | ) | ||||||||
Projected benefit obligation at end of year | $ | 91,107 | $ | 75,946 | ||||||||
Change in plan assets | ||||||||||||
Fair value of plan assets at beginning of year | $ | 76,442 | $ | 62,763 | ||||||||
Actual gain on plan assets | 2,110 | 11,082 | ||||||||||
Employer contributions | — | 7,500 | ||||||||||
Benefits paid | (1,414 | ) | (1,250 | ) | ||||||||
Settlement | (3,707 | ) | (3,653 | ) | ||||||||
Fair value of plan assets at end of year | $ | 73,431 | $ | 76,442 | ||||||||
Funded status | $ | (17,676 | ) | $ | 496 | |||||||
Schedule of amounts recognized in the consolidated balance sheets | Amounts recognized in the consolidated balance sheets consist of the following at December 31,: | |||||||||||
2014 | 2013 | |||||||||||
Other assets/(Other long-term liabilities) | $ | (17,676 | ) | $ | 496 | |||||||
Accumulated other comprehensive loss | (48,782 | ) | (30,001 | ) | ||||||||
Schedule of actuarial assumptions used | The following actuarial assumptions were used to determine our accumulated and projected benefit obligations as of December 31,: | |||||||||||
2014 | 2013 | |||||||||||
Discount rate | 3.81 | % | 4.75 | % | ||||||||
Expected return on plan assets | 8 | % | 8 | % | ||||||||
The following actuarial assumptions were used to determine our net periodic pension benefit cost for the years ended December 31,: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Discount rate | 4.75 | % | 3.9 | % | 4.3 | % | ||||||
Expected return on plan assets | 8 | % | 8 | % | 8 | % | ||||||
Schedule of plan assets and benefit obligations recognized in other comprehensive income | Other changes in plan assets and benefit obligations recognized in other comprehensive income in 2014 are as follows: | |||||||||||
Current year actuarial loss | $ | (16,733 | ) | |||||||||
Amortization of actuarial loss | (2,048 | ) | ||||||||||
Total recognized in other comprehensive loss | $ | (18,781 | ) | |||||||||
Schedule of net benefit cost | Net periodic pension cost for the years ended December 31, consists of the following: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Service cost | $ | 271 | $ | 253 | $ | 277 | ||||||
Interest cost on projected benefit obligation | 3,465 | 3,315 | 3,429 | |||||||||
Expected return on plan assets | (2,297 | ) | (5,491 | ) | (4,566 | ) | ||||||
Amortization of loss | (2,048 | ) | 3,059 | 2,876 | ||||||||
Settlement expense | — | 1,443 | — | |||||||||
Net periodic pension (income) cost | $ | (609 | ) | $ | 2,579 | $ | 2,016 | |||||
Schedule of allocation of plan assets | The following table sets forth by level, within the fair value hierarchy, the Plan's assets at fair value as of December 31, 2014 and December 31, 2013: | |||||||||||
December 31, 2014 | Level 1 | Level 2 | Total | |||||||||
Common Stock | $ | 35,337 | $ | — | $ | 35,337 | ||||||
Money Market Fund | — | 3,320 | 3,320 | |||||||||
Mutual Funds | 26,671 | — | 26,671 | |||||||||
Fixed Income Securities | 8,103 | — | 8,103 | |||||||||
$ | 70,111 | $ | 3,320 | $ | 73,431 | |||||||
December 31, 2013 | Level 1 | Level 2 | Total | |||||||||
Common Stock | $ | 31,412 | $ | — | $ | 31,412 | ||||||
Money Market Fund | — | 7,018 | 7,018 | |||||||||
Mutual Funds | 28,726 | — | 28,726 | |||||||||
Fixed Income Securities | 9,286 | — | 9,286 | |||||||||
$ | 69,424 | $ | 7,018 | $ | 76,442 | |||||||
The following table sets forth the fair value of Plan assets as of December 31,: | ||||||||||||
2014 | 2013 | |||||||||||
Common Stock | $ | 35,337 | $ | 31,412 | ||||||||
Money Market Fund | 3,320 | 7,018 | ||||||||||
Mutual Funds | 26,671 | 28,726 | ||||||||||
Fixed Income Securities | 8,103 | 9,286 | ||||||||||
Total Assets at Fair Value | $ | 73,431 | $ | 76,442 | ||||||||
The allocation of pension plan assets by category is as follows at December 31,: | ||||||||||||
Percentage of Pension | Target | |||||||||||
Plan Assets | Allocation | |||||||||||
2014 | 2013 | 2015 | ||||||||||
Equity securities | 84 | % | 79 | % | 75 | % | ||||||
Debt securities | 16 | 21 | 25 | |||||||||
Total | 100 | % | 100 | % | 100 | % | ||||||
Schedule of expected benefit payments | The following table summarizes the benefits expected to be paid by our pension plan in each of the next five years and in aggregate for the following five years. The expected benefit payments are estimated based on the same assumptions used to measure the Company’s projected benefit obligation at December 31, 2014 and reflect the impact of expected future employee service. | |||||||||||
2015 | $4,875 | |||||||||||
2016 | 2,892 | |||||||||||
2017 | 3,174 | |||||||||||
2018 | 3,589 | |||||||||||
2019 | 3,827 | |||||||||||
2020-2024 | 23,710 | |||||||||||
Other_Expense_Tables
Other Expense (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Other Income and Expenses [Abstract] | ||||||||||||
Schedule of Other Expense | Other expense for the year ended December 31, consists of the following: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Administrative consolidation costs | $ | 3,354 | $ | 8,750 | $ | 6,497 | ||||||
Costs associated with management restructuring | 12,546 | — | — | |||||||||
Costs associated with shareholder activism | 3,966 | — | — | |||||||||
Costs associated with purchase of a business | 722 | — | 1,194 | |||||||||
Costs associated with patent dispute and other matters | 3,374 | 3,206 | 1,555 | |||||||||
Pension settlement expense | — | 1,443 | — | |||||||||
Costs associated with purchase of a distributor | — | — | 704 | |||||||||
Other expense | $ | 23,962 | $ | 13,399 | $ | 9,950 | ||||||
Guarantees_Tables
Guarantees (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Guarantees [Abstract] | ||||||||||||
Changes in the carrying amount of service and product warranties | Changes in the carrying amount of service and product warranties for the year ended December 31, are as follows: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Balance as of January 1, | $ | 2,422 | $ | 3,636 | $ | 3,618 | ||||||
Provision for warranties | 3,492 | 3,061 | 4,163 | |||||||||
Claims made | (3,628 | ) | (4,275 | ) | (4,145 | ) | ||||||
Balance as of December 31, | $ | 2,286 | $ | 2,422 | $ | 3,636 | ||||||
Fair_Value_Measurement_Tables
Fair Value Measurement (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Schedule of fair value for forward foreign exchange contracts | We record these forward foreign exchange contracts at fair value; the following tables summarize the fair value for forward foreign exchange contracts outstanding at December 31, 2014 and 2013: | |||||||||||||||
December 31, 2014 | Asset | Fair | Liabilities | Fair | Net | |||||||||||
Balance Sheet | Value | Balance Sheet | Value | Fair | ||||||||||||
Location | Location | Value | ||||||||||||||
Derivatives designated as hedged instruments: | ||||||||||||||||
Foreign exchange contracts | Prepaid & other current assets | $ | 6,167 | Prepaid & other current assets | $ | (971 | ) | $ | 5,196 | |||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||
Foreign exchange contracts | Prepaid & other current assets | 44 | Prepaid & other current assets | (61 | ) | (17 | ) | |||||||||
Total derivatives | $ | 6,211 | $ | (1,032 | ) | $ | 5,179 | |||||||||
December 31, 2013 | Asset | Fair | Liabilities | Fair | Net | |||||||||||
Balance Sheet | Value | Balance Sheet | Value | Fair | ||||||||||||
Location | Location | Value | ||||||||||||||
Derivatives designated as hedged instruments: | ||||||||||||||||
Foreign exchange contracts | Other current liabilities | $ | 975 | Other current liabilities | $ | (3,172 | ) | $ | (2,197 | ) | ||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||
Foreign exchange contracts | Other current liabilities | 52 | Other current liabilities | (78 | ) | (26 | ) | |||||||||
Total derivatives | $ | 1,027 | $ | (3,250 | ) | $ | (2,223 | ) | ||||||||
Restructuring_Tables
Restructuring (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||
Schedule of restructuring costs | During 2014, 2013 and 2012 we incurred the following restructuring costs: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Facility consolidation costs | $ | 5,612 | $ | 6,489 | $ | 7,052 | ||||||
Termination of a product offering | — | 2,137 | — | |||||||||
Restructuring costs included in cost of sales | $ | 5,612 | $ | 8,626 | $ | 7,052 | ||||||
Administrative consolidation changes | $ | 3,354 | $ | 8,750 | $ | 6,497 | ||||||
Costs associated with management restructuring | 12,546 | — | — | |||||||||
Restructuring costs included in other expense | $ | 15,900 | $ | 8,750 | $ | 6,497 | ||||||
Schedule of restructuring accrual | Below is a rollforward of the accrual: | |||||||||||
Balance as of January 1, 2014 | $ | 3,128 | ||||||||||
Expenses incurred | 7,434 | |||||||||||
Payments made | (2,308 | ) | ||||||||||
Balance, December 31, 2014 | $ | 8,254 | ||||||||||
Business_Acqusition_Tables
Business Acqusition (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Business Combinations [Abstract] | |||||
Pro Forma Information | This pro forma statement of operations has been prepared for comparative purposes only and does not purport to be indicative of the results of operations which actually would have resulted had the Viking acquisition occurred on January 1, 2012, or which may result in the future. | ||||
2012 | |||||
Net sales | $ | 774,239 | |||
Net income | 38,018 | ||||
Earnings per share: | |||||
Basic | $ | 1.34 | |||
Diluted | 1.33 | ||||
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Schedule of Selected Quarterly Financial Data | Selected quarterly financial data for 2014 and 2013 are as follows: | |||||||||||||||
Three Months Ended | ||||||||||||||||
March | June | September | December | |||||||||||||
2014 | ||||||||||||||||
Net sales | $ | 181,941 | $ | 188,150 | $ | 174,961 | $ | 195,003 | ||||||||
Gross profit | 102,582 | 101,028 | 96,414 | 104,033 | ||||||||||||
Net income | 8,626 | 10,255 | 1,972 | 11,339 | ||||||||||||
EPS: | ||||||||||||||||
Basic | 0.32 | 0.38 | 0.07 | 0.41 | ||||||||||||
Diluted | 0.31 | 0.37 | 0.07 | 0.41 | ||||||||||||
Three Months Ended | ||||||||||||||||
March | June | September | December | |||||||||||||
2013 | ||||||||||||||||
Net sales | $ | 187,014 | $ | 192,993 | $ | 179,255 | $ | 203,442 | ||||||||
Gross profit | 102,682 | 102,916 | 95,424 | 111,395 | ||||||||||||
Net income | 10,492 | 9,533 | 5,687 | 10,227 | ||||||||||||
EPS: | ||||||||||||||||
Basic | 0.37 | 0.35 | 0.21 | 0.37 | ||||||||||||
Diluted | 0.37 | 0.34 | 0.2 | 0.36 | ||||||||||||
Operations_and_Significant_Acc3
Operations and Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Goodwill and Intangible Asset Impairment [Abstract] | |||
Goodwill | $256,232,000 | $248,428,000 | $248,502,000 |
Other intangible assets, net | 316,440,000 | 319,440,000 | |
Acquired Intangible Assets [Abstract] | |||
Weighted average amortization period (in years) | 27 years | ||
Revenue Recognition [Abstract] | |||
Net Commission Service Fee Revenue | 50.00% | ||
Shipping and handling costs | 13,600,000 | 12,600,000 | 12,800,000 |
Allowance for doubtful accounts | $1,239,000 | $1,384,000 | |
Linvatec Corporation [Member] | |||
Acquired Intangible Assets [Abstract] | |||
Number of years of historical revenue attrition used to evaluate acquired finite-lived intangible assets useful life | 5 years | ||
Annual attrition rate used to evaluate acquired finite-lived intangible assets useful life | 2.60% | ||
Customer Relationships [Member] | |||
Acquired Intangible Assets [Abstract] | |||
Weighted average amortization period (in years) | 33 years | ||
Customer Relationships [Member] | Linvatec Corporation [Member] | |||
Acquired Intangible Assets [Abstract] | |||
Weighted average amortization period (in years) | 38 years | ||
Customer Relationships [Member] | Other Acquisitions Excluding Linvatec Corporation[Member] | |||
Acquired Intangible Assets [Abstract] | |||
Weighted average amortization period (in years) | 16 years | ||
Promotional, Marketing and Distribution Rights [Member] | |||
Acquired Intangible Assets [Abstract] | |||
Weighted average amortization period (in years) | 25 years |
Operations_and_Significant_Acc4
Operations and Significant Accounting Policies (Property, Plant and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Building and improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life, average (in years) | 12 years |
Building and improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life, average (in years) | 40 years |
Machinery and equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life, average (in years) | 2 years |
Machinery and equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life, average (in years) | 15 years |
Operations_and_Significant_Acc5
Operations and Significant Accounting Policies (Earnings Per Share) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||||||||||
Net income | $11,339 | $1,972 | $10,255 | $8,626 | $10,227 | $5,687 | $9,533 | $10,492 | $32,192 | $35,939 | $40,481 |
Basic-weighted average shares outstanding | 27,401,000 | 27,722,000 | 28,301,000 | ||||||||
Effect of dilutive potential securities | 368,000 | 392,000 | 352,000 | ||||||||
Diluted-weighted average shares outstanding | 27,769,000 | 28,114,000 | 28,653,000 | ||||||||
Basic EPS (per share) | $0.41 | $0.07 | $0.38 | $0.32 | $0.37 | $0.21 | $0.35 | $0.37 | $1.17 | $1.30 | $1.43 |
Diluted EPS (per share) | $0.41 | $0.07 | $0.37 | $0.31 | $0.36 | $0.20 | $0.34 | $0.37 | $1.16 | $1.28 | $1.41 |
Shares excluded from computation of earnings per share | 0 | 0 | 400,000 |
Operations_and_Significant_Acc6
Operations and Significant Accounting Policies (Accumulated Other Comprehensive Loss) (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Accumulated other comprehensive income (loss) [Roll Forward] | |||||
Accumulated other comprehensive loss, beginning of the period | ($17,572) | ||||
Tax expense (benefit) | -14,483 | -14,693 | -18,999 | ||
Accumulated other comprehensive loss, end of the period | -39,822 | -17,572 | |||
Accumulated Other Comprehensive Loss [Member] | |||||
Accumulated other comprehensive income (loss) [Roll Forward] | |||||
Accumulated other comprehensive loss, beginning of the period | -17,572 | -27,581 | |||
Other comprehensive income before reclassifications | -20,559 | 7,267 | |||
Amounts reclassified from accumulated other comprehensive income before tax | -2,683 | [1] | 4,349 | [1] | |
Tax expense (benefit) | 992 | -1,607 | |||
Net current-period other comprehensive income | -22,250 | 10,009 | |||
Accumulated other comprehensive loss, end of the period | -39,822 | -17,572 | |||
Cash Flow Hedging Gain (Loss) [Member] | |||||
Accumulated other comprehensive income (loss) [Roll Forward] | |||||
Accumulated other comprehensive loss, beginning of the period | -1,385 | -1,130 | |||
Other comprehensive income before reclassifications | 5,061 | -158 | |||
Amounts reclassified from accumulated other comprehensive income before tax | -635 | [1] | -153 | [1] | |
Tax expense (benefit) | 235 | 56 | |||
Net current-period other comprehensive income | 4,661 | -255 | |||
Accumulated other comprehensive loss, end of the period | 3,276 | -1,385 | |||
Pension Liability [Member] | |||||
Accumulated other comprehensive income (loss) [Roll Forward] | |||||
Accumulated other comprehensive loss, beginning of the period | -18,918 | -30,375 | |||
Other comprehensive income before reclassifications | -10,551 | 8,618 | |||
Amounts reclassified from accumulated other comprehensive income before tax | -2,048 | [1] | 4,502 | [1] | |
Tax expense (benefit) | 757 | -1,663 | |||
Net current-period other comprehensive income | -11,842 | 11,457 | |||
Accumulated other comprehensive loss, end of the period | -30,760 | -18,918 | |||
Cumulative Translation Adjustment [Member] | |||||
Accumulated other comprehensive income (loss) [Roll Forward] | |||||
Accumulated other comprehensive loss, beginning of the period | 2,731 | 3,924 | |||
Other comprehensive income before reclassifications | -15,069 | -1,193 | |||
Amounts reclassified from accumulated other comprehensive income before tax | 0 | [1] | 0 | [1] | |
Tax expense (benefit) | 0 | 0 | |||
Net current-period other comprehensive income | -15,069 | -1,193 | |||
Accumulated other comprehensive loss, end of the period | ($12,338) | $2,731 | |||
[1] | The cash flow hedging gain (loss) and pension liability accumulated other comprehensive income components are included in sales or cost of sales and as a component of net periodic pension cost, respectively. Refer to Note 13 and Note 9, respectively, for further details. |
Inventories_Details
Inventories (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Raw materials | $44,847 | $39,029 |
Work in process | 13,876 | 14,736 |
Finished goods | 89,426 | 89,446 |
Total inventory | $148,149 | $143,211 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Abstract] | |||
Rental expense | $5,897 | $6,713 | $6,416 |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 297,642 | 288,454 | |
Less: Accumulated depreciation | -164,213 | -149,469 | |
Total property, plant and equipment | 133,429 | 138,985 | |
Future minimum lease commitments for operating leases | |||
2015 | 6,229 | ||
2016 | 4,592 | ||
2017 | 3,785 | ||
2018 | 3,618 | ||
2019 | 3,426 | ||
Thereafter | 1,799 | ||
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 4,243 | 4,243 | |
Building and improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 96,953 | 95,397 | |
Machinery and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 191,306 | 180,064 | |
Construction in progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $5,140 | $8,750 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Goodwill) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill [Roll Forward] | ||
Goodwill beginning balance | $248,428 | $248,502 |
Goodwill resulting from business acquisitions | 7,773 | 0 |
Foreign currency translation | 31 | -74 |
Goodwill ending balance | 256,232 | 248,428 |
Accumulated goodwill impairment loss | $106,991 | $106,991 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Intangible Assets) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Finite-Lived and Indefinite-Lived Assets [Line Items] | |||
Intangible assets, gross carrying amount | $435,510,000 | $425,513,000 | |
Intangible assets, accumulated amortization | -119,070,000 | -106,073,000 | |
Weighted average amortization period (in years) | 27 years | ||
Amortization of Intangible Assets | 13,000,000 | 13,700,000 | 13,800,000 |
Future amortization expense [Abstract] | |||
2015 | 12,615,000 | ||
2016 | 13,461,000 | ||
2017 | 13,447,000 | ||
2018 | 13,392,000 | ||
2019 | 13,392,000 | ||
Trademarks and Tradenames [Member] | |||
Schedule of Finite-Lived and Indefinite-Lived Assets [Line Items] | |||
Unamortized intangible assets, gross carrying amount | 86,544,000 | 86,544,000 | |
Customer Relationships [Member] | |||
Schedule of Finite-Lived and Indefinite-Lived Assets [Line Items] | |||
Amortized intangible assets, gross carrying amount | 136,126,000 | 135,690,000 | |
Intangible assets, accumulated amortization | -59,707,000 | -54,982,000 | |
Weighted average amortization period (in years) | 33 years | ||
Promotional, Marketing and Distribution Rights [Member] | |||
Schedule of Finite-Lived and Indefinite-Lived Assets [Line Items] | |||
Amortized intangible assets, gross carrying amount | 149,376,000 | 149,376,000 | |
Intangible assets, accumulated amortization | -18,000,000 | -12,000,000 | |
Weighted average amortization period (in years) | 25 years | ||
Patents and Other Intangible Assets [Member] | |||
Schedule of Finite-Lived and Indefinite-Lived Assets [Line Items] | |||
Amortized intangible assets, gross carrying amount | 63,464,000 | 53,903,000 | |
Intangible assets, accumulated amortization | -41,363,000 | -39,091,000 | |
Weighted average amortization period (in years) | 13 years | ||
Expense [Member] | |||
Future amortization expense [Abstract] | |||
2015 | 6,615,000 | ||
2016 | 7,461,000 | ||
2017 | 7,447,000 | ||
2018 | 7,392,000 | ||
2019 | 7,392,000 | ||
Reduction of Revenue [Member] | |||
Future amortization expense [Abstract] | |||
2015 | 6,000,000 | ||
2016 | 6,000,000 | ||
2017 | 6,000,000 | ||
2018 | 6,000,000 | ||
2019 | $6,000,000 |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets (Other Intangible Assets) (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | ||
In Millions, unless otherwise specified | Jan. 03, 2012 | Dec. 31, 2014 | Jan. 03, 2013 | Jan. 03, 2014 | Jan. 05, 2015 |
Other Intangible Assets [Line Items] | |||||
Up-front payment | $63 | ||||
Contingent payment period | 4 years | ||||
Additional contingent cash payment | 84 | ||||
Conditional payment amount accrued | 33.4 | ||||
After One Year of Meeting Supply Target [Member] | |||||
Other Intangible Assets [Line Items] | |||||
Conditional payment, amount paid | 34 | ||||
After Two Year of Meeting Supply Target [Member] | |||||
Other Intangible Assets [Line Items] | |||||
Conditional payment, amount paid | 16.7 | ||||
After Year Four of Meeting Supply Target [Member] | |||||
Other Intangible Assets [Line Items] | |||||
Additional contingent cash payment | 16.7 | ||||
Subsequent Event [Member] | After Year Three of Meeting Supply Target [Member] | |||||
Other Intangible Assets [Line Items] | |||||
Conditional payment, amount paid | $16.70 |
Long_Term_Debt_Details
Long Term Debt (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $241,435 | $215,575 |
Current portion of long-term debt | 1,234 | 1,140 |
Long-term debt | 240,201 | 214,435 |
Revolving Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 235,000 | 208,000 |
Mortgages Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $6,435 | $7,575 |
Long_Term_Debt_Narrative_Detai
Long Term Debt (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 17, 2013 | |
Debt Instrument [Line Items] | |||||
Loss on early extinguishment of debt | $300,000 | $0 | $263,000 | $0 | |
Long-term debt outstanding | 241,435,000 | 215,575,000 | |||
Revolving Line of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt outstanding | 235,000,000 | 208,000,000 | |||
Line of credit facility, available borrowing capacity | 109,600,000 | ||||
Letters of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Letters of credit outstanding | 5,400,000 | ||||
Mortgages Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt outstanding | 6,435,000 | 7,575,000 | |||
Debt interest rate | 8.25% | ||||
Amended and Restated Senior Credit Agreement [Member] | Revolving Line of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $350,000,000 | ||||
Alternate Base Rate [Member] | Amended and Restated Senior Credit Agreement [Member] | Revolving Line of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.63% | ||||
Eurodollar [Member] | Amended and Restated Senior Credit Agreement [Member] | Revolving Line of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.00% | ||||
Federal Funds Rate [Member] | Amended and Restated Senior Credit Agreement [Member] | Revolving Line of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.50% | ||||
London Interbank Offered Rate (LIBOR) [Member] | Amended and Restated Senior Credit Agreement [Member] | Revolving Line of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.63% | ||||
Interest rate at period end | 1.79% |
Long_Term_Debt_Maturities_of_L
Long Term Debt (Maturities of Long-term Debt) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Scheduled maturities of long-term debt outstanding [Abstract] | |
2015 | $1,234 |
2016 | 1,339 |
2017 | 1,452 |
2018 | 236,574 |
2019 | 836 |
Thereafter | $0 |
Income_Taxes_Provision_for_Inc
Income Taxes (Provision for Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current Income Tax Expense (Benefit) [Abstract] | |||
Federal | $2,256 | ($2,274) | $503 |
State | 516 | 502 | 374 |
Foreign | 11,995 | 9,247 | 5,176 |
Current income tax expense (benefit) | 14,767 | 7,475 | 6,053 |
Deferred income tax expense (benefit) | -284 | 7,218 | 12,946 |
Provision for income taxes | $14,483 | $14,693 | $18,999 |
Income_Taxes_Effective_Income_
Income Taxes (Effective Income Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||
Tax provision at statutory rate based on income before income taxes | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal tax benefit | 1.70% | 1.80% | 1.50% |
New York State corporate tax reform | 5.50% | 0.00% | 0.00% |
Stock-based compensation | -0.20% | -0.50% | -0.20% |
Foreign income taxes | -4.80% | -3.10% | -4.00% |
Federal research credit | -2.10% | -2.80% | 0.00% |
Settlement of taxing authority examinations | -3.70% | -2.00% | -0.80% |
European permanent deduction | -3.80% | -2.40% | 0.00% |
Non deductible/non-taxable items | 1.80% | 2.90% | 1.30% |
Other, net | 1.60% | 0.10% | -0.90% |
Effective income tax rate, continuing operations | 31.00% | 29.00% | 31.90% |
Income_Taxes_Deferred_Tax_Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Components of Deferred Tax Assets [Abstract] | ||
Inventory | $4,476,000 | $3,445,000 |
Net operating losses | 10,207,000 | 6,450,000 |
Capitalized research and development | 1,850,000 | 2,286,000 |
Deferred compensation | 3,507,000 | 3,025,000 |
Accounts receivable | 2,604,000 | 2,642,000 |
Compensation and benefits | 6,003,000 | 5,601,000 |
Accrued pension | 6,186,000 | -173,000 |
Research and development credit | 6,198,000 | 5,027,000 |
Other | 1,564,000 | 4,365,000 |
Foreign tax credit | 2,283,000 | 332,000 |
Less: valuation allowances | -293,000 | 0 |
Deferred Tax Assets, Net of Valuation Allowance | 44,585,000 | 33,000,000 |
Components of Deferred Tax Liabilities [Abstract] | ||
Goodwill and intangible assets | 120,012,000 | 114,075,000 |
Depreciation | 14,041,000 | 13,486,000 |
State taxes | 6,737,000 | 3,914,000 |
Contingent interest | 272,000 | 339,000 |
Deferred tax liabilities | 141,062,000 | 131,814,000 |
Net liabilitiy | -96,477,000 | -98,814,000 |
Cumulative amount of temporary difference | $92,200,000 |
Income_Taxes_Income_Before_Inc
Income Taxes (Income Before Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | |||
U.S. income | $12,374 | $20,106 | $33,121 |
Foreign income | 34,301 | 30,526 | 26,359 |
Income before income taxes | $46,675 | $50,632 | $59,480 |
Income_Taxes_Tax_Credit_Carryf
Income Taxes (Tax Credit Carryforwards) (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | |
Tax Credit Carryforward [Line Items] | ||||
State income taxes, net of federal tax benefit | 1.70% | 1.80% | 1.50% | |
Deferred income taxes | ($284,000) | $7,218,000 | $12,946,000 | |
Federal [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Operating loss carryforwards | 34,800,000 | |||
Federal [Member] | Windfall Tax Benefit [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Operating loss carryforwards | 6,500,000 | |||
Federal [Member] | Research and Development Credit [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax credit carryforward | 6,200,000 | |||
Foreign Tax Authority [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax credit carryforward | 2,300,000 | |||
State and Local Jurisdiction [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax credit carryforward | 3,300,000 | |||
NEW YORK | ||||
Tax Credit Carryforward [Line Items] | ||||
State income taxes, net of federal tax benefit | 0.00% | 0.00% | ||
Deferred income taxes | $2,300,000 | $2,300,000 |
Income_Taxes_Unrecognized_Tax_
Income Taxes (Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Unrecognized Tax Benefits [Roll Forward] | |||
Balance as of January 1 | $1,689 | $1,587 | $2,343 |
Increases for positions taken in prior periods | 45 | 70 | 30 |
Increases for positions taken in current periods | 0 | 1,132 | 1,129 |
Decreases in unrecorded tax positions related to settlement with the taxing authorities | -1,073 | -1,010 | -1,857 |
Decreases in unrecorded tax positions related to lapse of statute of limitations | -80 | -90 | -58 |
Balance as of December 31 | $581 | $1,689 | $1,587 |
Shareholders_Equity_Details
Shareholders' Equity (Details) (USD $) | 0 Months Ended | 12 Months Ended | |||
Oct. 28, 2013 | Feb. 29, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
plans | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Dividends per share of common stock | $0.20 | $0.15 | $0.80 | $0.65 | $0.60 |
Dividends payable | $5,510,000 | $5,545,000 | $4,256,000 | ||
Preferred stock, shares authorized | 500,000 | 500,000 | |||
Preferred stock, par value (per share) | $0.01 | $0.01 | |||
Shares authorized under repurchase program | 200,000,000 | ||||
Total stock repurchased under plan, shares | 6,100,000 | ||||
Total stock repurchased under plan, value | 162,600,000 | ||||
Remaining authorized repurchase amount | 37,400,000 | ||||
Number of share repurchased | 400,000 | 1,600,000 | 100,000 | ||
Repurchase of treasury stock | 16,862,000 | 50,556,000 | 3,923,000 | ||
Number of shares reserved for share-based compensation plans | 6,800,000 | ||||
Number of share-based compensation plans | 3 | ||||
Number of shares available for grant | 1,000,000 | ||||
Vesting term | 5 years | ||||
Stock-based compensation | 9,330,000 | 5,593,000 | 5,653,000 | ||
Tax benefit from stock-based compensation | 3,400,000 | 2,100,000 | 2,100,000 | ||
Proceeds from stock options exercised | 1,800,000 | 16,700,000 | 9,600,000 | ||
Stock Options and Stock Appreciation Rights (SARs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expiration from date of grant | 10 years | ||||
Other Expense [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation | $3,900,000 |
Shareholders_Equity_Stock_Opti
Shareholders' Equity (Stock Options) (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Equity [Abstract] | |||
Unrecognized compensation cost | $9.60 | ||
Weighted average period costs expected to be recognized | 3 years 0 months 14 days | ||
Stock Options and Stock Appreciation Rights (SARs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant date fair value of SARs | $13.40 | $9.77 | $7.38 |
Expected volatility rate | 34.85% | 35.88% | 35.84% |
Risk free interest rate | 1.53% | 1.04% | 0.62% |
Expected annual dividend yield | 1.80% | 1.79% | 2.00% |
Expected term of option (years) | 6 years 4 months 24 days | 6 years 3 months 18 days | 6 years 4 months 24 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Number of shares, Outstanding at December 31, 2013 | 1,130 | ||
Number of shares, Granted | 109 | ||
Number of shares, Forfeited | -68 | ||
Number of shares, Exercised | -718 | ||
Number of shares, Outstanding at December 31, 2014 | 453 | 1,130 | |
Number of shares, Exercisable | 245 | ||
Number of shares, SARs expected to vest | 208 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Weighted average exercise price, Outstanding at December 31, 2013 | $25.55 | ||
Weighted average exercise price, Granted | $44.56 | ||
Weighted average exercise price, Forfeited | $40.76 | ||
Weighted average exercise price, Exercised | $24.90 | ||
Weighted average exercise price, Outstanding at December 31, 2014 | $28.85 | $25.55 | |
Exercisable, Weighted Average Exercise Price | $25.38 | ||
SARs expected to vest, Weighted Average Exercise Price | $32.93 | ||
Weighted average remaining contractual term, options outstanding (years) | 5 years 11 months 25 days | ||
Weighted average remaining contractual term, options exercisable (years) | 4 years 4 months 26 days | ||
Aggregate intrinsic value, options outstanding | 7.3 | ||
Aggregate intrinsic value, options exercisable | 4.8 | ||
Aggregate intrinsic value | 10.7 | 4.7 | 3.3 |
Restricted Stock Units (RSUs) and Performance Share Units (PSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Number of shares, Outstanding at December 31, 2013 | 476 | ||
Number of shares, Granted | 184 | ||
Number of shares, Vested | -259 | ||
Number of shares, Forfeited | -79 | ||
Number of shares, Outstanding at December 31, 2014 | 322 | 476 | |
Share-based Compensation Arrangement by Share-based Payment Award, Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted average grant date fair value, Outstanding at December 31, 2013 | $27.14 | ||
Weighted average grant date fair value, Granted | $43.21 | $33.02 | $26.18 |
Weighted average grant date fair value, Vested | $28.54 | ||
Weighted average grant date fair value, Forfeited | $35.10 | ||
Weighted average grant date fair value, Outstanding at December 31, 2014 | $33.14 | $27.14 | |
Total fair value of shares vested | $11.60 | $7.10 | $4.40 |
Shareholders_Equity_Employee_P
Shareholders' Equity (Employee Plan) (Details) (USD $) | 12 Months Ended |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares reserved for share-based compensation plans | 6,800,000 |
Unrecognized compensation cost | 9.6 |
Employee Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares reserved for share-based compensation plans | 1,000,000 |
Minimum percent of salary employees can invest | 1.00% |
Maximum percent of salary employees can invest | 10.00% |
Purchase prices percent of fair market value | 95.00% |
Number of shares issued under Plan | 13,000 |
Business_Segments_and_Geograph2
Business Segments and Geographic Areas (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Customers | Customers | Customers | |||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $195,003 | $174,961 | $188,150 | $181,941 | $203,442 | $179,255 | $192,993 | $187,014 | $740,055 | $762,704 | $767,140 |
Number of customer representing over 10% of consolidated net sales | 0 | 0 | 0 | ||||||||
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 360,960 | 375,473 | 382,256 | ||||||||
Canada | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 63,686 | 73,457 | 73,746 | ||||||||
United Kingdom | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 30,496 | 28,471 | 31,653 | ||||||||
Japan | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 37,230 | 36,705 | 33,997 | ||||||||
Australia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 38,711 | 38,752 | 40,835 | ||||||||
All other countires | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 208,972 | 209,846 | 204,653 | ||||||||
Orthopedic Surgery [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 402,750 | 410,171 | 413,891 | ||||||||
General Surgery [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 279,356 | 286,747 | 286,606 | ||||||||
Surgical Visualization [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $57,949 | $65,786 | $66,643 |
Employee_Benefit_Plans_Defined
Employee Benefit Plans (Defined Contribution Plan) (Details) (Employee Savings Plan [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Employee Savings Plan [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employer contributions | $6.90 | $7.30 | $6.70 |
Employee_Benefit_Plans_Employe
Employee Benefit Plans (Employee Benefit Reconciliation) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Service cost | $271 | $253 | $277 |
Interest cost | 3,465 | 3,315 | 3,429 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 76,442 | ||
Fair value of plan assets at end of year | 73,431 | 76,442 | |
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated Benefit Obligation | 91,107 | 75,946 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation at beginning of year | 75,946 | 85,363 | |
Service cost | 271 | 253 | |
Interest cost | 3,465 | 3,315 | |
Actuarial (gain) loss | 16,546 | -8,082 | |
Benefits paid | -1,414 | -1,250 | |
Settlement | -3,707 | -3,653 | |
Projected benefit obligation at end of year | 91,107 | 75,946 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 76,442 | 62,763 | |
Actual gain on plan assets | 2,110 | 11,082 | |
Employer contributions | 0 | 7,500 | |
Benefits paid | -1,414 | -1,250 | |
Settlement | -3,707 | -3,653 | |
Fair value of plan assets at end of year | 73,431 | 76,442 | |
Funded status | ($17,676) | $496 |
Employee_Benefit_Plans_Amounts
Employee Benefit Plans (Amounts Recognized in Balance Sheet) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Compensation and Retirement Disclosure [Abstract] | ||
Other assets/(Other long-term liabilities) | ($17,676) | $496 |
Accumulated other comprehensive loss | ($48,782) | ($30,001) |
Employee_Benefit_Plans_Actuari
Employee Benefit Plans (Actuarial Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Compensation and Retirement Disclosure [Abstract] | |||
Discount rate, projected benefit obligations | 3.81% | 4.75% | |
Expected return on plan assets | 8.00% | 8.00% | 8.00% |
Discount rate, net periodic pension cost | 4.75% | 3.90% | 4.30% |
Employee_Benefit_Plans_Other_C
Employee Benefit Plans (Other Changes in Plan Assets and Benefit Obligations) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
Current year actuarial loss | ($16,733,000) |
Amortization of actuarial loss | -2,048,000 |
Total recognized in other comprehensive loss | -18,781,000 |
Estimated portion of net actuarial loss in accumulated other comprehensive loss | $3,200,000 |
Employee_Benefit_Plans_Net_Per
Employee Benefit Plans (Net Periodic Pension Cost) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Compensation and Retirement Disclosure [Abstract] | ||||
Service cost | $271 | $253 | $277 | |
Interest cost | 3,465 | 3,315 | 3,429 | |
Expected return on plan assets | -2,297 | -5,491 | -4,566 | |
Amortization of loss | -2,048 | 3,059 | 2,876 | |
Settlement expense | 1,400 | 0 | 1,443 | 0 |
Net periodic pension cost | ($609) | $2,579 | $2,016 |
Employee_Benefit_Plans_Allocat
Employee Benefit Plans (Allocation of Pension Plan Assets) (Details) (USD $) | 12 Months Ended | |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of pension plan assets | 100.00% | 100.00% |
Target allocation | 100.00% | |
Number of CONMED shares in Plan | 27,562 | |
Fair value of CONMED shares in Plan | $1.20 | |
Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of pension plan assets | 84.00% | 79.00% |
Target allocation | 75.00% | |
Debt Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of pension plan assets | 16.00% | 21.00% |
Target allocation | 25.00% |
Employee_Benefit_Plans_Fair_Va
Employee Benefit Plans (Fair Value of Plan Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $73,431 | $76,442 |
Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 70,111 | 69,424 |
Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 3,320 | 7,018 |
Common Stock [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 35,337 | 31,412 |
Common Stock [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 35,337 | 31,412 |
Common Stock [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Money Market Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 3,320 | 7,018 |
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Money Market Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 3,320 | 7,018 |
Mututal Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 26,671 | 28,726 |
Mututal Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 26,671 | 28,726 |
Mututal Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 8,103 | 9,286 |
Fixed Income Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 8,103 | 9,286 |
Fixed Income Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $0 | $0 |
Employee_Benefit_Plans_Expecte
Employee Benefit Plans (Expected Future Employee Service) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Compensation and Retirement Disclosure [Abstract] | |
2015 | $4,875 |
2016 | 2,892 |
2017 | 3,174 |
2018 | 3,589 |
2019 | 3,827 |
2020-2024 | $23,710 |
Legal_Matters_and_Contingencie1
Legal Matters and Contingencies (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2014 |
Loss Contingencies [Line Items] | ||
Product liability insurance, amount per incident | $25 | |
Product liability insurance, aggregate annual amount | 25 | |
Patent Infringement [Member] | ||
Loss Contingencies [Line Items] | ||
Litigation Settlement, Expense | $0.90 | $0.90 |
Other_Expense_Details
Other Expense (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | |
Other Expense [Line Items] | |||||||||||
Restructuring charges | $7,434,000 | ||||||||||
Costs associated with shareholder activism | 2,400,000 | 900,000 | 600,000 | 3,966,000 | 0 | 0 | |||||
Costs associated with patent dispute and other matters | 100,000 | 1,400,000 | 3,374,000 | 1,555,000 | |||||||
Pension settlement expense | 1,400,000 | 0 | 1,443,000 | 0 | |||||||
Other expense | 23,962,000 | 13,399,000 | 9,950,000 | ||||||||
Distributor [Member] | |||||||||||
Other Expense [Line Items] | |||||||||||
Costs associated with purchase | 0 | 0 | 704,000 | ||||||||
Business [Member] | |||||||||||
Other Expense [Line Items] | |||||||||||
Costs associated with purchase | 300,000 | 300,000 | 722,000 | 0 | 1,194,000 | ||||||
Administrative Restructuring [Member] | |||||||||||
Other Expense [Line Items] | |||||||||||
Restructuring charges | 3,354,000 | 8,750,000 | 6,497,000 | ||||||||
Executive Restructuring [Member] | |||||||||||
Other Expense [Line Items] | |||||||||||
Restructuring charges | 12,546,000 | 0 | 0 | ||||||||
Legal Fees [Member] | |||||||||||
Other Expense [Line Items] | |||||||||||
Costs associated with patent dispute and other matters | 1,500,000 | ||||||||||
Patent Infringement [Member] | |||||||||||
Other Expense [Line Items] | |||||||||||
Costs associated with patent dispute and other matters | 1,900,000 | 1,000,000 | 1,900,000 | 3,206,000 | 1,500,000 | 500,000 | 200,000 | ||||
Settlement cost | $900,000 | $900,000 |
Guarantees_Details
Guarantees (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Standard warranty period | 1 year | ||
Beginning balance | $2,422 | $3,636 | $3,618 |
Provision for warranties | 3,492 | 3,061 | 4,163 |
Claims made | -3,628 | -4,275 | -4,145 |
Ending balance | $2,286 | $2,422 | $3,636 |
Fair_Value_Measurement_Foreign
Fair Value Measurement (Foreign Currency Forward Contracts) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Derivative [Line Items] | |||
Derivative Liability, Fair Value, Gross Asset | $1,027,000 | ||
Derivative Liability, Fair Value, Gross Liability | -3,250,000 | ||
Gains (losses) on intercompany receivables | -500,000 | -800,000 | 800,000 |
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | |||
Fair value, assets (liabilities), net | 5,179,000 | -2,223,000 | |
Derivative Asset, Fair Value, Gross Asset | 6,211,000 | ||
Derivative Asset, Fair Value, Gross Liability | -1,032,000 | ||
Foreign Currency Forward Contracts [Member] | |||
Derivative [Line Items] | |||
Forward contracts not designated as hedging instruments net realized gains (losses) | -200,000 | -300,000 | -2,100,000 |
Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Other Current Liabilities [Member] | |||
Derivative [Line Items] | |||
Derivative Liability, Fair Value, Gross Asset | 975,000 | ||
Derivative Liability, Fair Value, Gross Liability | -3,172,000 | ||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | |||
Fair value, assets (liabilities), net | -2,197,000 | ||
Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Prepaid Expenses and Other Current Assets [Member] | |||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | |||
Fair value, assets (liabilities), net | 5,196,000 | ||
Derivative Asset, Fair Value, Gross Asset | 6,167,000 | ||
Derivative Asset, Fair Value, Gross Liability | -971,000 | ||
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | |||
Derivative [Line Items] | |||
Notional amount of cash flow hedges | 35,500,000 | ||
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Other Current Liabilities [Member] | |||
Derivative [Line Items] | |||
Derivative Liability, Fair Value, Gross Asset | 52,000 | ||
Derivative Liability, Fair Value, Gross Liability | -78,000 | ||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | |||
Fair value, assets (liabilities), net | -26,000 | ||
Not Designated as Hedging Instrument [Member] | Foreign Currency Forward Contracts [Member] | Prepaid Expenses and Other Current Assets [Member] | |||
Derivative Assets (Liabilities), at Fair Value, Net, by Balance Sheet Classification [Abstract] | |||
Fair value, assets (liabilities), net | -17,000 | ||
Derivative Asset, Fair Value, Gross Asset | 44,000 | ||
Derivative Asset, Fair Value, Gross Liability | -61,000 | ||
Cash Flow Hedging [Member] | Foreign Currency Forward Contracts [Member] | |||
Derivative [Line Items] | |||
Notional amount of cash flow hedges | 109,900,000 | ||
Cash flow hedges realized gains (losses) | 600,000 | 200,000 | 3,800,000 |
Unrealized gain (loss) on cash flow hedges in accumulated other comprehensive income (loss) expected to be recognized in next fiscal year | $3,300,000 |
Restructuring_Details
Restructuring (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and Related Activities, Completion Period | 12 months | ||||||||||
Restructuring charges | $7,434 | ||||||||||
Restructuring accrual | 8,254 | 3,128 | 8,254 | 3,128 | |||||||
Executive Restructuring [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 12,546 | 0 | 0 | ||||||||
Cost of Sales [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 5,612 | 8,626 | 7,052 | ||||||||
Cost of Sales [Member] | Facility Consolidation Costs [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 1,900 | 1,400 | 1,400 | 900 | 2,100 | 1,100 | 1,600 | 1,600 | 5,612 | 6,489 | 7,052 |
Cost of Sales [Member] | Termination of a product offering [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 2,100 | 0 | 2,137 | 0 | |||||||
Other Expense [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 15,900 | 8,750 | 6,497 | ||||||||
Other Expense [Member] | Administrative consolidation costs [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 1,500 | 600 | 500 | 700 | 2,400 | 3,100 | 1,600 | 1,600 | 3,354 | 8,750 | 6,497 |
Other Expense [Member] | Executive Restructuring [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | $1,500 | $11,000 | $12,546 | $0 | $0 |
Restructuring_Restructuring_Ac
Restructuring (Restructuring Accrual) (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Restructuring accrual | |
Balance as of January 1, 2014 | $3,128 |
Expenses incurred | 7,434 |
Payments made | -2,308 |
Balance, December 31, 2014 | $8,254 |
Business_Acqusition_Details
Business Acqusition (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 30, 2014 | Sep. 24, 2012 | |
Business Acquisition [Line Items] | |||||||||||||
Contractual obligations for acquisition of a business | $10,137,000 | $0 | $10,137,000 | $0 | $0 | ||||||||
Assets Acquired and Liabilities Assumed | |||||||||||||
Goodwill | 256,232,000 | 248,428,000 | 256,232,000 | 248,428,000 | 248,502,000 | ||||||||
Weighted average amortization period (in years) | 27 years | ||||||||||||
Net sales | 195,003,000 | 174,961,000 | 188,150,000 | 181,941,000 | 203,442,000 | 179,255,000 | 192,993,000 | 187,014,000 | 740,055,000 | 762,704,000 | 767,140,000 | ||
Income (loss) before income taxes | 46,675,000 | 50,632,000 | 59,480,000 | ||||||||||
Customer Relationships [Member] | |||||||||||||
Assets Acquired and Liabilities Assumed | |||||||||||||
Weighted average amortization period (in years) | 33 years | ||||||||||||
EndoDynamix, Inc. [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Cash paid for acqusition | 1,300,000 | ||||||||||||
Contractual obligations for acquisition of a business | 10,100,000 | 10,100,000 | 13,900,000 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent | 1,800,000 | ||||||||||||
Assets Acquired and Liabilities Assumed | |||||||||||||
Goodwill | 7,800,000 | ||||||||||||
Weighted average amortization period (in years) | 10 years | ||||||||||||
EndoDynamix, Inc. [Member] | In Process Research and Development [Member] | |||||||||||||
Assets Acquired and Liabilities Assumed | |||||||||||||
Intangible assets | 9,500,000 | ||||||||||||
Viking Systems, Inc. [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Cash paid for acqusition | 22,500,000 | ||||||||||||
Assets Acquired and Liabilities Assumed | |||||||||||||
Net sales | 3,400,000 | ||||||||||||
Income (loss) before income taxes | -1,500,000 | ||||||||||||
Pro Forma Information | |||||||||||||
Net sales | 774,239,000 | ||||||||||||
Net income | $38,018,000 | ||||||||||||
Basic | $1.34 | ||||||||||||
Diluted | $1.33 |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $195,003 | $174,961 | $188,150 | $181,941 | $203,442 | $179,255 | $192,993 | $187,014 | $740,055 | $762,704 | $767,140 |
Gross profit | 104,033 | 96,414 | 101,028 | 102,582 | 111,395 | 95,424 | 102,916 | 102,682 | 404,057 | 412,417 | 405,843 |
Net income (loss) | $11,339 | $1,972 | $10,255 | $8,626 | $10,227 | $5,687 | $9,533 | $10,492 | $32,192 | $35,939 | $40,481 |
EPS: | |||||||||||
Basic (per share) | $0.41 | $0.07 | $0.38 | $0.32 | $0.37 | $0.21 | $0.35 | $0.37 | $1.17 | $1.30 | $1.43 |
Diluted (per share) | $0.41 | $0.07 | $0.37 | $0.31 | $0.36 | $0.20 | $0.34 | $0.37 | $1.16 | $1.28 | $1.41 |
Selected_Quarterly_Financial_D3
Selected Quarterly Financial Data (Unaudited) (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Quarterly Financial Information [Line Items] | |||||||||||
Restructuring charges | $7,434,000 | ||||||||||
Costs associated with patent dispute and other matters | 100,000 | 1,400,000 | 3,374,000 | 1,555,000 | |||||||
State income taxes, net of federal tax benefit | 1.70% | 1.80% | 1.50% | ||||||||
Deferred income taxes | -284,000 | 7,218,000 | 12,946,000 | ||||||||
Costs associated with shareholder activism | 2,400,000 | 900,000 | 600,000 | 3,966,000 | 0 | 0 | |||||
Loss on early extinguishment of debt | 300,000 | 0 | 263,000 | 0 | |||||||
Settlement expense | 1,400,000 | 0 | 1,443,000 | 0 | |||||||
Executive Restructuring [Member] | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Restructuring charges | 12,546,000 | 0 | 0 | ||||||||
Cost of Sales [Member] | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Restructuring charges | 5,612,000 | 8,626,000 | 7,052,000 | ||||||||
Cost of Sales [Member] | Facility Consolidation Costs [Member] | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Restructuring charges | 1,900,000 | 1,400,000 | 1,400,000 | 900,000 | 2,100,000 | 1,100,000 | 1,600,000 | 1,600,000 | 5,612,000 | 6,489,000 | 7,052,000 |
Cost of Sales [Member] | Termination of a product offering [Member] | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Restructuring charges | 2,100,000 | 0 | 2,137,000 | 0 | |||||||
Other Expense [Member] | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Restructuring charges | 15,900,000 | 8,750,000 | 6,497,000 | ||||||||
Other Expense [Member] | Administrative consolidation costs [Member] | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Restructuring charges | 1,500,000 | 600,000 | 500,000 | 700,000 | 2,400,000 | 3,100,000 | 1,600,000 | 1,600,000 | 3,354,000 | 8,750,000 | 6,497,000 |
Other Expense [Member] | Executive Restructuring [Member] | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Restructuring charges | 1,500,000 | 11,000,000 | 12,546,000 | 0 | 0 | ||||||
Distributor [Member] | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Costs associated with purchase | 0 | 0 | 704,000 | ||||||||
Business [Member] | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Costs associated with purchase | 300,000 | 300,000 | 722,000 | 0 | 1,194,000 | ||||||
Patent Infringement [Member] | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Costs associated with patent dispute and other matters | 1,900,000 | 1,000,000 | 1,500,000 | 500,000 | 200,000 | 1,900,000 | 3,206,000 | ||||
Litigation Settlement, Expense | 900,000 | 900,000 | |||||||||
Legal Fees [Member] | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Costs associated with patent dispute and other matters | 1,500,000 | ||||||||||
NEW YORK | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
State income taxes, net of federal tax benefit | 0.00% | 0.00% | |||||||||
Deferred income taxes | $2,300,000 | $2,300,000 |
Schedule_II_Valuation_and_Qual1
Schedule II - Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for Bad Debts [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $1,384 | $1,203 | $1,183 |
Charged to costs and expenses | 517 | 421 | 530 |
Charged to other accounts | 0 | 0 | 0 |
Deductions | -662 | -240 | -510 |
Balance at end of period | 1,239 | 1,384 | 1,203 |
Sales Returns and Allowance [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 3,098 | 3,609 | 4,097 |
Charged to costs and expenses | 252 | 398 | 317 |
Charged to other accounts | 0 | 0 | 0 |
Deductions | -269 | -909 | -805 |
Balance at end of period | 3,081 | 3,098 | 3,609 |
Deferred Tax Asset Valuation Allowance [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 0 | 0 | 0 |
Charged to costs and expenses | 293 | 0 | 0 |
Charged to other accounts | 0 | 0 | 0 |
Deductions | 0 | 0 | 0 |
Balance at end of period | $293 | $0 | $0 |