Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 03, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | OFIX | |
Entity Registrant Name | ORTHOFIX MEDICAL INC. | |
Entity Central Index Key | 0000884624 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 19,066,984 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 46,668 | $ 69,623 |
Restricted cash | 2,540 | 2,566 |
Trade accounts receivable, net of allowances of $7,448 and $7,463, respectively | 79,615 | 77,747 |
Inventories | 79,128 | 76,847 |
Prepaid expenses and other current assets | 16,387 | 17,856 |
Total current assets | 224,338 | 244,639 |
Property, plant and equipment, net | 63,727 | 42,835 |
Intangible assets, net | 56,764 | 51,897 |
Goodwill | 71,177 | 72,401 |
Deferred income taxes | 36,575 | 33,228 |
Other long-term assets | 26,735 | 21,641 |
Total assets | 479,316 | 466,641 |
Current liabilities | ||
Accounts payable | 19,643 | 17,989 |
Current portion of finance lease liability | 359 | |
Other current liabilities | 43,652 | 67,919 |
Total current liabilities | 63,654 | 85,908 |
Long-term portion of finance lease liability | 20,879 | |
Other long-term liabilities | 51,101 | 45,336 |
Total liabilities | 135,634 | 131,244 |
Contingencies (Note 9) | ||
Shareholders’ equity | ||
Common shares $0.10 par value; 50,000,000 shares authorized; 18,790,769 and 18,579,688 issued and outstanding as of March 31, 2019 and December 31, 2018, respectively | 1,879 | 1,858 |
Additional paid-in capital | 252,862 | 243,165 |
Retained earnings | 87,108 | 87,078 |
Accumulated other comprehensive income | 1,833 | 3,296 |
Total shareholders’ equity | 343,682 | 335,397 |
Total liabilities and shareholders’ equity | $ 479,316 | $ 466,641 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Trade accounts receivable, allowance for doubtful accounts | $ 7,448 | $ 7,463 |
Common shares, par value | $ 0.10 | $ 0.10 |
Common shares, authorized | 50,000,000 | 50,000,000 |
Common shares, issued | 18,790,769 | 18,579,688 |
Common shares, outstanding | 18,790,769 | 18,579,688 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Net sales | $ 109,112 | $ 108,709 |
Cost of sales | 23,708 | 24,147 |
Gross profit | 85,404 | 84,562 |
Sales and marketing | 53,694 | 50,268 |
General and administrative | 20,472 | 19,424 |
Research and development | 9,229 | 6,937 |
Acquisition-related amortization and remeasurement (Note 13) | 6,457 | 63 |
Operating income (loss) | (4,448) | 7,870 |
Interest expense, net | (257) | (183) |
Other income (expense), net | (404) | 2,912 |
Income (loss) before income taxes | (5,109) | 10,599 |
Income tax benefit (expense) | 6,006 | (5,373) |
Net income | $ 897 | $ 5,226 |
Net income per common share: | ||
Basic | $ 0.05 | $ 0.28 |
Diluted | $ 0.05 | $ 0.27 |
Weighted average number of common shares: | ||
Basic | 18,750,184 | 18,404,856 |
Diluted | 19,191,146 | 18,874,591 |
Other comprehensive income (loss), before tax | ||
Unrealized loss on debt securities | $ (2,593) | |
Currency translation adjustment | (449) | $ 697 |
Other comprehensive income (loss) before tax | (3,042) | 697 |
Income tax related to items of other comprehensive income (loss) | 641 | |
Other comprehensive income (loss), net of tax | (2,401) | 697 |
Comprehensive income (loss) | $ (1,504) | $ 5,923 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common Shares [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] |
Beginning Balance at Dec. 31, 2017 | $ 296,608 | $ 1,828 | $ 220,591 | $ 70,402 | $ 3,787 |
Balance, Shares at Dec. 31, 2017 | 18,278,833 | ||||
Cumulative effect adjustment from adoption | ASU 2014-09 [Member] | 4,761 | 4,761 | |||
Cumulative effect adjustment from adoption | ASU 2016-16 [Member] | (1,896) | (1,896) | |||
Net income | 5,226 | 5,226 | |||
Other comprehensive income (loss), net of tax | 697 | 697 | |||
Share-based compensation | 3,916 | 3,916 | |||
Common shares issued, net | 3,862 | $ 13 | 3,849 | ||
Common shares issued, net, Shares | 126,511 | ||||
Ending Balance at Mar. 31, 2018 | 313,174 | $ 1,841 | 228,356 | 78,493 | 4,484 |
Balance, Shares at Mar. 31, 2018 | 18,405,344 | ||||
Beginning Balance at Dec. 31, 2018 | $ 335,397 | $ 1,858 | 243,165 | 87,078 | 3,296 |
Balance, Shares at Dec. 31, 2018 | 18,579,688 | 18,579,688 | |||
Cumulative effect adjustment from adoption | ASU 2016-02 [Member] | $ 71 | 71 | |||
Cumulative effect adjustment from adoption | ASU 2018-02 [Member] | 938 | (938) | 938 | ||
Net income | 897 | 897 | |||
Other comprehensive income (loss), net of tax | (2,401) | (2,401) | |||
Share-based compensation | 5,685 | 5,685 | |||
Common shares issued, net | 4,033 | $ 21 | 4,012 | ||
Common shares issued, net, Shares | 211,081 | ||||
Ending Balance at Mar. 31, 2019 | $ 343,682 | $ 1,879 | $ 252,862 | $ 87,108 | $ 1,833 |
Balance, Shares at Mar. 31, 2019 | 18,790,769 | 18,790,769 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities | ||
Net income | $ 897 | $ 5,226 |
Adjustments to reconcile net income to net cash from operating activities | ||
Depreciation and amortization | 5,727 | 4,369 |
Amortization of operating lease assets, debt costs and other assets | 773 | 375 |
Provision for doubtful accounts | 46 | (35) |
Deferred income taxes | (1,582) | 277 |
Share-based compensation | 5,685 | 3,916 |
Interest and gain on valuation of investment securities | (593) | (1,629) |
Change in fair value of contingent consideration | 5,400 | |
Other | 586 | 208 |
Changes in operating assets and liabilities, net of effects of acquisitions | ||
Accounts receivable | (2,027) | (4,925) |
Inventories | (2,477) | 1,664 |
Prepaid expenses and other current assets | 1,427 | 2,166 |
Accounts payable | 1,883 | (4,459) |
Other current liabilities | (12,439) | (11,310) |
Payment of contingent consideration | (1,340) | |
Other long-term assets and liabilities | (3,005) | 597 |
Net cash from operating activities | (1,039) | (3,560) |
Cash flows from investing activities | ||
Capital expenditures for property, plant and equipment | (4,643) | (2,831) |
Capital expenditures for intangible assets | (273) | (607) |
Asset acquisitions and other investments | (6,400) | (1,217) |
Net cash from investing activities | (11,316) | (4,655) |
Cash flows from financing activities | ||
Proceeds from issuance of common shares | 6,331 | 4,378 |
Payments related to withholdings for share-based compensation | (2,298) | (516) |
Payment of contingent consideration | (13,660) | |
Payments related to finance lease obligation | (99) | |
Other financing activities | (670) | (165) |
Net cash from financing activities | (10,396) | 3,697 |
Effect of exchange rate changes on cash | (230) | 417 |
Net change in cash, cash equivalents, and restricted cash | (22,981) | (4,101) |
Cash, cash equivalents, and restricted cash at the beginning of period | 72,189 | 81,157 |
Cash, cash equivalents, and restricted cash at the end of period | 49,208 | 77,056 |
Components of cash, cash equivalents and restricted cash at the end of period | ||
Cash and cash equivalents | 46,668 | 77,056 |
Restricted cash | 2,540 | |
Cash, cash equivalents, and restricted cash at the end of period | $ 49,208 | 77,056 |
Noncash investing activities: | ||
Purchase of intangible assets | $ 1,181 |
Business and basis of consolida
Business and basis of consolidation | 3 Months Ended |
Mar. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Business and basis of consolidation | 1. Business and basis of presentation Orthofix Medical Inc., together with its subsidiaries (the “Company” or “Orthofix”) is a global medical device company focused on musculoskeletal products and therapies. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Pursuant to these rules and regulations, certain information and note disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. In the opinion of management, all adjustments (consisting of normal recurring items) considered necessary for a fair statement have been included. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Form 10-K for the year ended December 31, 2018. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. On an ongoing basis, the Company evaluates its estimates including those related to revenue recognition; contractual allowances; allowance for doubtful accounts; inventories; valuation of intangible assets; goodwill; fair value measurements, including contingent consideration; litigation and contingent liabilities; tax matters; and share-based compensation. Actual results could differ from these estimates. Prior period reclassifications Certain amortization expense related to intangible assets previously reported in general and administrative expenses have been reclassified to acquisition-related amortization and remeasurement based on use of the underlying intangible asset. This reclassification resulted in a decrease to general and administrative expenses of $0.1 million and an increase in acquisition related amortization and remeasurement expense of $0.1 million for the three months ended March 31, 2018. Change in Reporting Segments The Company has changed its reportable business segments beginning with the first quarter of 2019, to align with changes in how the Company manages its business, reviews operating performance and allocates resources. The Company now reports results under two reportable segments: Global Spine and Global Extremities, and measures operating performance of these two reportable segments based on EBITDA. For additional discussion regarding segments, see Note 12. |
Recently adopted accounting sta
Recently adopted accounting standards and recently issued accounting pronouncements | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Changes And Error Corrections [Abstract] | |
Recently adopted accounting standards and recently issued accounting pronouncements | 2. Recently adopted accounting standards and recently issued accounting pronouncements Adoption of ASU 2016-02, Leases (Topic 842) In February 2016 the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, which changes how lessees account for leases. For most leases, a liability will be recorded on the balance sheet based on the present value of future lease obligations with a corresponding right-of-use asset. For leases classified as operating leases, the Company will recognize lease costs on a straight-line basis based on the combined amortization of the lease obligation and the right-of-use asset. Other leases will be accounted for as finance leases similar to capital leases under the previous accounting standard. Effective January 1, 2019, the Company adopted ASU 2016-02 using a modified retrospective approach. Upon adoption, the Company elected a package of practical expedients permitted within the new standard. The practical expedients adopted allow the Company to carry forward its historical lease classification and to not separate and allocate the consideration paid between lease and non-lease components included within a contract. The Company also adopted an optional transition method that waives the requirement to apply the ASU to the comparative periods presented within the financial statements in the year of adoption. Therefore, results for reporting periods beginning after January 1, 2019 are presented under Topic 842, while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historic accounting policies under Topic 840. See Note 5 for additional discussion of the Company’s adoption of Topic 842 and its lease accounting policies. Adoption of ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the FASB issued ASU 2018-02, which allows entities to reclassify from accumulated other comprehensive income to retained earnings stranded tax effects resulting from the Tax Cuts and Jobs Act (the "Tax Act"). The Company adopted this guidance effective January 1, 2019, which resulted in an increase to accumulated other comprehensive income and a decrease in retained earnings of $0.9 million. Other recently adopted accounting guidance In August 2018, the Securities and Exchange Commission (the “SEC” or the “Commission”) issued SEC Final Rule Release No. 33-10532, Disclosure Update and Simplification Recently issued accounting pronouncements Topic Description of Guidance Effective Date Status of Company's Evaluation Financial Instruments - Credit Losses (ASU 2016-13) Requires that credit losses for certain types of financial instruments be estimated based on expected losses and also modifies the impairment models for available-for-sale debt securities and for purchased financial assets with credit deterioration since their origination. Applied using a modified retrospective approach, with early adoption permitted. January 1, 2020 The Company is currently evaluating the impact this ASU may have on its consolidated financial statements. Goodwill (ASU 2017-04) Eliminates Step 2 of the current goodwill impairment test, which requires a hypothetical purchase price allocation to measure goodwill impairment. A goodwill impairment loss will instead be measured at the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the recorded amount of goodwill. Applied on a prospective basis, with early adoption permitted. January 1, 2020 The Company is currently evaluating the impact this ASU may have on its consolidated financial statements. However, the Company does not expect this ASU to have a significant impact on its financial statements or disclosures. Fair value measurement (ASU 2018-13) Eliminates such disclosures as the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy and adds new disclosure requirements for Level 3 measurements. Certain of the provisions are to be applied retrospectively with other provisions applied prospectively. January 1, 2020 The Company is currently evaluating the impact this ASU may have on its consolidated financial statements. Topic Description of Guidance Effective Date Status of Company's Evaluation Implementation costs in a cloud computing arrangement that is a service contract (ASU 2018-15) Aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in this update. Applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. January 1, 2020 The Company is currently evaluating the impact this ASU may have on its consolidated financial statements. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | 3. Acquisitions Acquisition of Spinal Kinetics, Inc. On April 30, 2018, the Company completed the acquisition of Spinal Kinetics Inc. (“Spinal Kinetics”), a privately held developer and manufacturer of artificial cervical and lumbar discs for $45.0 million in net cash, subject to certain adjustments, plus potential milestone payments of up to $60.0 million in cash. The acquisition date fair value of the consideration transferred was $76.6 million. The results of operations for Spinal Kinetics have been included in the Company’s financial results since the acquisition date, April 30, 2018. For additional discussion regarding the valuation of the contingent consideration, see Note 7. The following table summarizes the fair values of assets acquired and liabilities assumed at the acquisition date. During the first quarter of 2019, the Company finalized its valuation of assets acquired and liabilities assumed, which resulted in an adjustment between deferred income taxes and goodwill. (U.S. Dollars, in thousands) Preliminary Acquisition Date Fair Value as Previously Reported Adjustments Final Acquisition Date Fair Value Assigned Useful Life Assets acquired Cash and cash equivalents $ 6,785 $ — $ 6,785 Restricted cash 30 — 30 Accounts receivable 1,705 — 1,705 Inventories 8,175 — 8,175 Prepaid expenses and other current assets 315 — 315 Property, plant and equipment 2,285 — 2,285 Other long-term assets 320 — 320 Developed technology 12,400 — 12,400 10 years In-process research and development ("IPR&D") 26,800 — 26,800 10 years Tradename 100 — 100 2 years Deferred income taxes 2,374 1,220 3,594 Total identifiable assets acquired $ 61,289 $ 1,220 $ 62,509 Liabilities assumed Accounts payable $ 351 $ — $ 351 Other current liabilities 2,873 (4 ) 2,869 Other long-term liabilities 301 — 301 Total liabilities assumed $ 3,525 $ (4 ) $ 3,521 Goodwill 18,836 (1,224 ) 17,612 Total fair value of consideration transferred $ 76,600 $ — $ 76,600 On February 6, 2019, the Company obtained U.S. Food and Drug Administration (“FDA”) approval of the M6-C artificial cervical disc for patients suffering from cervical disease degeneration and started amortizing IPR&D. The $17.6 million of goodwill recognized was assigned to the Global Spine reporting segment. The Company did not recognize any acquisition related costs during the three months ended March 31, 2019 and recorded $1.5 million of acquisition related costs during the three months ended March 31, 2018. These costs are included in the condensed consolidated statements of operations and comprehensive income (loss) within general and administrative expenses. The following table presents the unaudited pro forma results for the three months ended March 31, 2019 and 2018, which combines the historical results of operations of Orthofix and Spinal Kinetics as though the companies had been combined as of January 1, 2018. The unaudited pro forma information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at such time. Three Months Ended March 31, (U.S. Dollars, in thousands) 2019 2018 (unaudited) (unaudited) Net sales $ 109,112 $ 112,455 Net income 897 4,899 Options Medical, LLC Asset Acquisition On January 31, 2019, the Company acquired certain assets of Options Medical, LLC, (“Options Medical”) a medical device distributor based in Florida. Under the terms of the acquisition, the parties agreed to terminate an existing exclusive sales representative agreement, employees of Options Medical became employees of the Company and the Company acquired all customer lists and customer information related to the sale of the Company’s products. As consideration for the assets acquired, the Company paid $6.4 million. Additionally, as an inducement to enter into employment with the Company, the Company provided 25,478 restricted stock units (“RSUs”), with a fair value of $1.4 million, to the Options Medical founder. These RSUs will vest in one-third annual increments beginning on the first anniversary of the grant date and are contingent upon continued employment. The following table summarizes the fair values of assets acquired and liabilities assumed at the acquisition date. (U.S. Dollars, in thousands) Fair Value Balance Sheet Classification Assigned Useful Life Assets acquired Operating lease assets $ 175 Other long-term assets Customer relationships 5,832 Intangible assets, net 10 years Assembled workforce 568 Intangible assets, net 5 years Total identifiable assets acquired $ 6,575 Liabilities assumed Operating lease liability - short-term $ 69 Other current liabilities Operating lease liability - long-term 106 Other long-term liabilities Total liabilities assumed 175 Total fair value of consideration transferred $ 6,400 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | 4. Inventories Inventories were as follows: (U.S. Dollars, in thousands) March 31, 2019 December 31, 2018 Raw materials $ 8,359 $ 8,463 Work-in-process 10,442 13,478 Finished products 60,327 54,906 Inventories $ 79,128 $ 76,847 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | 5. Leases As discussed in Note 2, the Company adopted ASU No. 2016-02— Leases (Topic 842) (U.S. Dollars, in thousands) December 31, 2018 Impact of Adoption of ASC 842 January 1, 2019 Assets Current assets Cash, cash equivalents, and restricted cash $ 72,189 $ — $ 72,189 Accounts receivable, net 77,747 — 77,747 Inventories 76,847 — 76,847 Prepaid expenses and other current assets 17,856 (15 ) 17,841 Total current assets 244,639 (15 ) 244,624 Property, plant, and equipment, net 42,835 — 42,835 Intangible assets, net and goodwill 124,298 — 124,298 Deferred income taxes 33,228 71 33,299 Other long-term assets 21,641 20,209 41,850 Total assets $ 466,641 $ 20,265 $ 486,906 Liabilities and shareholders’ equity Current liabilities Accounts payable $ 17,989 $ — $ 17,989 Other current liabilities 67,919 2,166 70,085 Total current liabilities 85,908 2,166 88,074 Other long-term liabilities 45,336 18,028 63,364 Total liabilities $ 131,244 $ 20,194 $ 151,438 Shareholders’ equity Common shares 1,858 — 1,858 Additional paid-in capital 243,165 — 243,165 Retained earnings 87,078 71 87,149 Accumulated other comprehensive income 3,296 — 3,296 Total shareholders’ equity 335,397 71 335,468 Total liabilities and shareholders’ equity $ 466,641 $ 20,265 $ 486,906 The Company determines if an arrangement is a lease at inception. The Company’s leases primarily relate to facilities, vehicles, and equipment. Lease assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Lease assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company’s incremental borrowing rate is used as a discount rate, based on the information available at the commencement date, in determining the present value of lease payments. Lease assets also include the impact of any prepayments made and are reduced by impact of any lease incentives. The Company has made an accounting policy election for short-term leases, in that the Company will not recognize a lease liability or lease asset on the balance sheet for leases with a lease term of twelve months or less as of the commencement date. Rather, any short-term lease payments will be recognized as an expense on a straight-line basis over the lease term. The current period short-term lease expense reasonably reflects our short-term lease commitments. The Company has made a policy election for all classifications of leases to combine lease and nonlease components and to account for them as a single lease component. Variable lease payments are excluded from the lease liability and recognized in the period in which the obligation is incurred. Additionally, lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise the option. During the first quarter of 2019, the Company entered into an amendment for its corporate headquarters lease. As a result, the classification of this lease changed from an operating lease to a finance lease, resulting in an increase to both the lease liability and lease asset of approximately $8.0 million. A summary of the Company’s lease portfolio as of March 31, 2019 is presented in the table below: (U.S. Dollars, in thousands, except lease term and discount rate) Classification March 31, 2019 Assets Operating leases Other long-term assets $ 6,758 Finance leases Property, plant and equipment, net 20,940 Total lease assets 27,698 Liabilities Current Operating leases Other current liabilities 1,764 Finance leases Current portion of finance lease liability 359 Long-term Operating leases Other long-term liabilities 5,028 Finance leases Long-term portion of finance lease liability 20,879 Total lease liabilities $ 28,030 Weighted Average Remaining Lease Term Operating leases 4.7 years Finance leases 21.4 years Weighted Average Discount Rate Operating leases 2.48 % Finance leases 4.38 % The components of lease costs were as follows: (U.S. Dollars, in thousands) Three Months Ended March 31, 2019 Finance lease costs: Amortization of right-of-use assets $ 239 Interest on finance lease liabilities 223 Operating lease costs 540 Short-term lease costs 62 Variable lease costs 152 Total lease costs $ 1,216 Supplemental cash flow information related to leases was as follows: (U.S. Dollars, in thousands) Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 950 Operating cash flows from finance leases 222 Financing cash flows from finance leases 99 Right-of-use assets obtained in exchange for lease obligations Operating leases 200 Finance leases 21,179 A summary of the Company’s remaining lease liabilities as of March 31, 2019 is included below: (U.S. Dollars, in thousands) Operating Leases Finance Leases Year 1 $ 1,886 $ 1,284 Year 2 1,710 1,042 Year 3 1,525 1,421 Year 4 1,107 1,450 Year 5 178 1,479 Thereafter 830 26,835 Total undiscounted value of lease liabilities $ 7,236 $ 33,511 Less: Interest (444 ) (12,273 ) Present value of lease liabilities $ 6,792 $ 21,238 Current portion of lease liabilities 1,764 359 Long-term portion of lease liabilities 5,028 20,879 Total lease liabilities $ 6,792 $ 21,238 |
Long-term debt
Long-term debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-term debt | 6. Long-term debt As of March 31, 2019, the Company had no borrowings under its five year $125 million secured revolving credit facility. In addition, the Company had no borrowings on its €5.5 million ($6.2 million) available line of credit in Italy as of March 31, 2019. The Company is in compliance with all required financial covenants as of March 31, 2019. |
Fair value measurements
Fair value measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | 7. Fair value measurements The fair value of the Company’s financial assets and liabilities measured on a recurring basis were as follows: March 31, 2019 December 31, 2018 (U.S. Dollars, in thousands) Level 1 Level 2 Level 3 Total Total Assets Treasury securities $ 471 $ — $ — $ 471 $ 490 Bone Biologics equity warrants — — — — — Bone Biologics equity securities — 219 — 219 219 eNeura debt security — — — — 17,820 eNeura warrant — — 491 491 — Total $ 471 $ 219 $ 491 $ 1,181 $ 18,529 Liabilities Contingent consideration $ — $ — $ (18,960 ) $ (18,960 ) $ (28,560 ) Deferred compensation plan — (1,254 ) — (1,254 ) (1,275 ) Total $ — $ (1,254 ) $ (18,960 ) $ (20,214 ) $ (29,835 ) Bone Biologics Equity Warrants and Securities The Company holds investments in common stock and warrants to purchase shares of common stock of Bone Biologics. The Company’s common stock investments are recorded within other long-term assets while the warrants are considered to have a fair value of zero. The equity securities are considered investments that do not have readily determinable fair values. As such, the Company measures these investments at cost, less any impairments, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. The changes in valuation of these securities for the three months ended March 31, 2019 and 2018 are shown below: Three Months Ended March 31, (U.S. Dollars, in thousands) 2019 2018 Bone Biologics equity securities and warrants beginning balance $ 219 $ 2,768 Impact of adoption of ASU 2016-01 recognized in other income, net — 1,629 Purchase of additional common stock — 500 Bone Biologics equity securities and warrants ending balance $ 219 $ 4,897 eNeura Debt Security and Warrant The Company holds a debt security of eNeura, Inc., a privately held medical technology company that is developing devices for the treatment of migraines. The debt security was originally set to mature on March 4, 2019 . Prior to the restructuring on March 1, 2019, the debt security was accounted for as an available for sale debt security at fair value and included within other long-term assets. The fair value was based upon significant unobservable inputs, including the use of a discounted cash flow model and assumptions regarding the expected payback period for the debt security, requiring the Company For additional discussion regarding the Restructured Debt Security, see Note 7. The Warrant is recorded at fair value and included in other long-term assets. The fair value of the Warrant is based on significant unobservable inputs, including the use of a discounted cash flow model and an option-pricing model, requiring the Company to develop its own assumptions; therefore, the Company has categorized this asset as a Level 3 financial asset. As of March 31, 2019, the fair value of the Warrant was $0.5 million. The following table provides a reconciliation of the beginning and ending balances for the eNeura debt security and warrant measured and reflected in the condensed consolidated balance sheets at fair value using significant unobservable inputs (Level 3): (U.S. Dollars, in thousands) 2019 2018 eNeura debt security and warrant at January 1 $ 17,820 $ 16,050 Gains or losses recorded for the period Recognized in other comprehensive income (loss) (2,593 ) — Change in classification of debt security to held to maturity (15,227 ) — Issuance of warrant as consideration for extension 491 eNeura debt security and warrant at March 31 $ 491 $ 16,050 Contingent Consideration The contingent consideration at the acquisition date of Spinal Kinetics consisted of potential future milestone payments of up to $60.0 million in cash. The milestone payments included (i) up to $15.0 million if the FDA grants approval of Spinal Kinetics’ M6-C artificial cervical disc (the “FDA Milestone”) and (ii) revenue-based milestone payments of up to $45.0 million in connection with future sales of the M6-C artificial cervical disc and the M6-L artificial lumbar disc. Milestones must be achieved within five years of April 30, 2018 to trigger applicable payments. On February 6, 2019, the Company obtained FDA approval of the M6-C artificial cervical disc. This approval triggered the Company’s payment obligation of $15.0 million for the achievement of the FDA Milestone and such obligation was paid on February 14, 2019. The fair value of the remaining contingent consideration was $19.0 million as of March 31, 2019; however, the actual amount ultimately paid could be higher or lower than the fair value of the remaining contingent consideration. The remaining liability attributable to the revenue-based milestones is included within other long-term liabilities. Any changes in fair value are recorded as an operating expense and included within acquisition-related amortization and remeasurement. The Company estimated the fair value of the remaining potential future revenue-based milestone payments using a Monte Carlo simulation. This fair value measurement is based on significant inputs that are unobservable in the market, and thus represents a Level 3 measurement. The key assumptions in applying the Monte Carlo valuation model include the Company’s forecasted future revenues for Spinal Kinetics products, discount rate applied, and assumptions for potential volatility of the Company’s forecasted revenue. Significant changes in these assumptions could result in a significantly higher or lower fair value. The following table provides a reconciliation of the beginning and ending balances for the contingent consideration measured at fair value using significant unobservable inputs (Level 3): (U.S. Dollars, in thousands) 2019 Contingent consideration at January 1 $ 28,560 Increase in fair value recognized in operating expenses 5,400 Payment made (15,000 ) Contingent consideration at March 31 $ 18,960 |
Investments
Investments | 3 Months Ended |
Mar. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | 8. Investments As a result of the restructuring of the eNeura debt security discussed in Note 7, the eNeura debt security was reclassified from an available for sale debt security to a held to maturity debt security at its fair value on the date of the restructuring. The unrealized gain included in accumulated other comprehensive income at the restructuring date continues to be included in other comprehensive income and is now being amortized to interest income over the remaining life of the Restructured Debt Security. The Restructured Debt Security will be evaluated for impairment based on management’s estimate of future cash collections discounted using the debt security’s original effective interest rate of 8%. Management’s estimate of future cash flows involves significant judgment regarding the timing, expected events, and amount of future cash collections. Decreases in management’s estimate of future cash collections could result in significant charges to bad debt expense. As of March 31, 2019, the Company’s amortized cost basis in the Restructured Note was $ 14.7 million, which also represents its carrying value, compared to an estimated fair value of $ 15.6 million and an unpaid principal balance of $ 15.0 million. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies | 9. Contingencies In addition to the matters described below, in the normal course of its business, the Company is involved in various lawsuits from time to time and may be subject to certain other contingencies. The Company believes any losses related to these matters are individually and collectively immaterial as to a possible loss and range of loss. Italian Medical Device Payback (“IMDP”) In 2015, the Italian Parliament introduced rules for entities that supply goods and services to the Italian National Healthcare System. The healthcare law is expected to impact the business and financial reporting of companies operating in the medical technology sector that sell medical devices in Italy. A key provision of the law is a ‘payback’ measure, requiring companies selling medical devices in Italy to make payments to the Italian government if medical device expenditures exceed regional maximum ceilings. Companies are required to make payments equal to a percentage of expenditures exceeding maximum regional caps. There is considerable uncertainty about how the law will operate and what the exact timeline is for finalization. The Company’s current assessment of the IMDP involves significant judgment regarding the expected scope and actual implementation terms of the measure as the latter have not been clarified to date by Italian authorities. The Company accounts for the estimated cost of the IMDP as sales and marketing expense and recorded expense of $0.3 million for the three months ended March 31, 2019 and 2018, respectively. As of March 31, 2019, the Company has accrued $3.9 million related to the IMDP, which it has classified within other long-term liabilities; however, the actual liability could be higher or lower than the amount accrued once the law has been clarified by the Italian authorities. Brazil In July 2018, the Federal Prosecution Service in Rio de Janeiro and representatives from the Brazilian antitrust authority inspected the offices of more than 30 companies, including the Company’s office in São Paulo, as part of an investigation into tender irregularities in the medical device industry. Before doing so, the authorities obtained a court order affecting the Company’s (and other companies’) local bank accounts resulting in the freezing of approximately $2.5 million of the Company’s cash, which the Company reclassified to restricted cash. On April 3, 2019, the Company’s appeal regarding the freezing of its local bank accounts was heard by the Brazil Federal Court of Appeals of Rio de Janeiro, in which the Court ordered the unfreezing of the Company’s cash. The cash was then returned without any restrictions in April 2019. |
Accumulated other comprehensive
Accumulated other comprehensive Income | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Accumulated other comprehensive Income | 10. Accumulated other comprehensive income The components of and changes in accumulated other comprehensive income were as follows: (U.S. Dollars, in thousands) Currency Translation Adjustments Debt Security Accumulated Other Comprehensive Income Balance at December 31, 2018 $ (2,386 ) $ 5,682 $ 3,296 Cumulative effect adjustment from adoption of ASU 2018-02 — 938 938 Other comprehensive loss (449 ) (2,593 ) (3,042 ) Income taxes — 641 641 Balance at March 31, 2019 $ (2,835 ) $ 4,668 $ 1,833 |
Revenue recognition and account
Revenue recognition and accounts receivable | 3 Months Ended |
Mar. 31, 2019 | |
Revenue Recognition And Accounts Receivable [Abstract] | |
Revenue recognition and accounts receivable | 11. Revenue recognition and accounts receivable Revenue Recognition The Company has two reporting segments, which consist of Global Spine and Global Extremities. Within the Global Spine reporting segment there are three product categories: Bone Growth Therapies, Spinal Implants and Biologics. The tables below present net sales by major product category by reporting segment: Three Months Ended March 31, (U.S. Dollars, in thousands) 2019 2018 Change Bone Growth Therapies $ 47,283 $ 46,163 2.4 % Spinal Implants 22,903 20,707 10.6 % Biologics 15,732 14,335 9.7 % Global Spine 85,918 81,205 5.8 % Global Extremities 23,194 27,504 -15.7 % Net sales $ 109,112 $ 108,709 0.4 % Product Sales and Marketing Service Fees The table below presents net sales, which includes product sales and marketing service fees, for the three months ended March 31, 2019 and 2018. Three Months Ended March 31, (U.S. Dollars, in thousands) 2019 2018 Product sales $ 93,934 $ 94,889 Marketing service fees 15,178 13,820 Net sales $ 109,112 $ 108,709 Product sales primarily consist of the sale of bone growth therapy devices and internal and external fixation products. Marketing service fees are received from MTF Biologics based on total sales of biologics tissues and relate solely to the Global Spine reporting segment. Revenues exclude any value added or other local taxes, intercompany sales and trade discounts. Shipping and handling costs for products shipped to customers are included in cost of sales. Other Contract Assets The Company’s contract assets, excluding trade accounts receivable (“other contract assets”), largely consist of payments made to certain distributors to obtain contracts, gain access to customers in certain territories, and to provide the benefit of the exclusive distribution of Orthofix products. Other contract assets are included in other long-term assets or other current assets, dependent upon the original term of the related agreement, and totaled $2.7 million and $1.9 million as of March 31, 2019, and December 31, 2018, respectively. |
Business segment information
Business segment information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Business segment information | 12. Business segment information During the first quarter of 2019, the Company changed its reporting segments from four reporting segments, previously reported as Bone Growth Therapies, Spinal Implants, Biologics, and Orthofix Extremities, to two reporting segments: Global Spine and Global Extremities. Additionally, the Company changed the performance measure used to evaluate segment performance from Non-GAAP net margin to earnings before interest income (expense), net, income taxes, depreciation and amortization (“EBITDA”). These changes were made to align how the chief operating decision maker manages the business, reviews operating performance and allocates resources. The Company has revised its segment reporting to represent how the business is now managed and restated prior periods to conform to the current segment presentation. As part of the change in reporting segments, the Company performed a quantitative assessment of goodwill immediately prior to and subsequently following the change in reporting segments. The analysis did not result in an impairment. In addition, the net carrying value of goodwill that was previously reported under the prior reporting segments (i) Bone Growth Therapies (ii) Spinal Implants and (iii) Biologics have been consolidated and are included within the Global Spine reporting segment as of March 31, 2019. As mentioned above, the primary metric used in managing the Company is EBITDA. The table below presents EBITDA by reporting segment: Three Months Ended March 31, (U.S. Dollars, in thousands) 2019 2018 Global Spine $ 10,575 $ 18,825 Global Extremities (173 ) 3,328 Corporate (9,527 ) (7,002 ) Total EBITDA $ 875 $ 15,151 Depreciation and amortization (5,727 ) (4,369 ) Interest expense, net (257 ) (183 ) Income (loss) before income taxes $ (5,109 ) $ 10,599 Geographical information The table below present net sales by geographic destination for each reporting unit and for the consolidated Company: Three Months Ended March 31, (U.S. Dollars, in thousands) 2019 2018 Global Spine U.S. $ 79,526 $ 78,038 International 6,392 3,167 Total Global Spine 85,918 81,205 Global Extremities U.S. 6,598 6,916 International 16,596 20,588 Total Global Extremities 23,194 27,504 Consolidated U.S. 86,124 84,954 International 22,988 23,755 Net sales $ 109,112 $ 108,709 |
Acquisition-Related Amortizatio
Acquisition-Related Amortization and Remeasurement | 3 Months Ended |
Mar. 31, 2019 | |
Acquisition Related Amortization And Remeasurement [Abstract] | |
Acquisition-Related Amortization and Remeasurement | 13. Acquisition-related amortization and remeasurement Acquisition-related amortization and remeasurement consists of amortization related to intangible assets acquired through business combinations or asset acquisitions and the remeasurement of any related contingent consideration arrangement. Components of acquisition-related amortization and remeasurement for the three months ended March 31, 2019 and 2018, respectively, are as follows: Three Months Ended March 31, (U.S. Dollars, in thousands) 2019 2018 Changes in fair value of contingent consideration $ 5,400 $ — Amortization of acquired intangibles 1,057 63 Acquisition-related amortization and remeasurement $ 6,457 $ 63 |
Share-based compensation
Share-based compensation | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-based compensation | 14. Share-based compensation The following tables present the detail of share-based compensation by line item in the condensed consolidated statements of operations and comprehensive income (loss) as well as by award type: Three Months Ended March 31, (U.S. Dollars, in thousands) 2019 2018 Cost of sales $ 187 $ 125 Sales and marketing 610 449 General and administrative 4,564 3,045 Research and development 324 297 Total $ 5,685 $ 3,916 Three Months Ended March 31, (U.S. Dollars, in thousands) 2019 2018 Stock options $ 2,112 $ 622 Time-based restricted stock awards and units 1,706 1,447 Performance-based restricted stock awards and units — 489 Market-based restricted stock units 1,347 953 Stock purchase plan 520 405 Total $ 5,685 $ 3,916 During the three months ended March 31, 2019 and 2018, the Company issued 211,081 and 126,511 shares, respectively, of common stock related to stock purchase plan issuances, stock option exercises and the vesting of restricted stock awards and units. Share-Based Compensation Modifications During the first quarter of 2019, the Company entered into a Transition and Retirement Agreement (the “Retirement Agreement”) with the Company’s President and Chief Executive Officer. As part of the Retirement Agreement, certain time-based stock options and restricted stock awards were modified to accelerate the vesting to the retirement date. In addition, stock options were modified to extend the post-termination exercise period from 18 months under a standard qualified retirement to up to four years, dependent upon the remaining contractual term of the options. The Company recognized approximately $2.1 million in share-based compensation expense during the three months ended March 31, 2019, related to the Retirement Agreement which was charged to general and administrative expense in the condensed consolidated statements of operations and comprehensive income (loss). |
Income taxes
Income taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income taxes | 15. Income taxes Income tax provisions for interim periods are based on an estimated annual income tax rate, adjusted for discrete tax items. As a result, the Company’s interim effective tax rates may vary significantly from the statutory tax rate and the annual effective tax rate. For the three months ended March 31, 2019 and 2018, the effective tax rate on continuing operations was 117.6% and 50.7%, respectively. The primary factors affecting the Company’s effective tax rate for the three months ended March 31, 2019, were increased limits on executive compensation, financial expenses not deductible for tax purposes, and benefits related to effective settlement of the 2015 federal tax examination and statute expirations. During the first quarter of 2019, the Internal Revenue Service concluded an examination of the Company’s federal income tax return for 2015, which resulted in a benefit of $1.8 million. The Company believes it is reasonably possible that, in the next 12 months, the amount of unrecognized tax benefits related to the resolution of federal, state and foreign matters could be reduced by $13.0 million to $13.4 million as audits close and statutes expire. |
Earnings per share ("EPS")
Earnings per share ("EPS") | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per share ("EPS") | 16. Earnings per share (“EPS”) The Company uses the two-class method of computing basic EPS due to the existence of non-vested restricted stock awards with nonforfeitable rights to dividends or dividend equivalents (referred to as participating securities). For the three months ended March 31, 2019 and 2018, no significant adjustments were made to net income for purposes of calculating basic and diluted EPS. The following is a reconciliation of the weighted average shares used in diluted EPS computations. Three Months Ended March 31, 2019 2018 Weighted average common shares-basic 18,750,184 18,404,856 Effect of dilutive securities Unexercised stock options and stock purchase plan 277,992 308,537 Unvested restricted stock awards and units 162,970 161,198 Weighted average common shares-diluted 19,191,146 18,874,591 There were 484,421 and 122,678 weighted average outstanding stock options and restricted stock awards and units not included in the diluted EPS computation for the three months ended March 31, 2019 and 2018, respectively, because inclusion of these awards was anti-dilutive or, for performance-based and market-based restricted stock awards and units, all necessary conditions had not been satisfied by the end of the respective period. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 17. Subsequent Events On April 3, 2019, the Company’s appeal regarding the freezing of its local bank accounts in Brazil was heard by the Brazil Federal Court of Appeals of Rio de Janeiro, in which the Court ordered the unfreezing of the Company’s cash. Approximately $2.5 million was then returned without any restrictions in April 2019. For additional discussion regarding the matter, see Note 9. |
Recently adopted accounting s_2
Recently adopted accounting standards and recently issued accounting pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Changes And Error Corrections [Abstract] | |
Recently adopted accounting standards and recently issued accounting pronouncements | Adoption of ASU 2016-02, Leases (Topic 842) In February 2016 the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, which changes how lessees account for leases. For most leases, a liability will be recorded on the balance sheet based on the present value of future lease obligations with a corresponding right-of-use asset. For leases classified as operating leases, the Company will recognize lease costs on a straight-line basis based on the combined amortization of the lease obligation and the right-of-use asset. Other leases will be accounted for as finance leases similar to capital leases under the previous accounting standard. Effective January 1, 2019, the Company adopted ASU 2016-02 using a modified retrospective approach. Upon adoption, the Company elected a package of practical expedients permitted within the new standard. The practical expedients adopted allow the Company to carry forward its historical lease classification and to not separate and allocate the consideration paid between lease and non-lease components included within a contract. The Company also adopted an optional transition method that waives the requirement to apply the ASU to the comparative periods presented within the financial statements in the year of adoption. Therefore, results for reporting periods beginning after January 1, 2019 are presented under Topic 842, while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historic accounting policies under Topic 840. See Note 5 for additional discussion of the Company’s adoption of Topic 842 and its lease accounting policies. Adoption of ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the FASB issued ASU 2018-02, which allows entities to reclassify from accumulated other comprehensive income to retained earnings stranded tax effects resulting from the Tax Cuts and Jobs Act (the "Tax Act"). The Company adopted this guidance effective January 1, 2019, which resulted in an increase to accumulated other comprehensive income and a decrease in retained earnings of $0.9 million. Other recently adopted accounting guidance In August 2018, the Securities and Exchange Commission (the “SEC” or the “Commission”) issued SEC Final Rule Release No. 33-10532, Disclosure Update and Simplification Recently issued accounting pronouncements Topic Description of Guidance Effective Date Status of Company's Evaluation Financial Instruments - Credit Losses (ASU 2016-13) Requires that credit losses for certain types of financial instruments be estimated based on expected losses and also modifies the impairment models for available-for-sale debt securities and for purchased financial assets with credit deterioration since their origination. Applied using a modified retrospective approach, with early adoption permitted. January 1, 2020 The Company is currently evaluating the impact this ASU may have on its consolidated financial statements. Goodwill (ASU 2017-04) Eliminates Step 2 of the current goodwill impairment test, which requires a hypothetical purchase price allocation to measure goodwill impairment. A goodwill impairment loss will instead be measured at the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the recorded amount of goodwill. Applied on a prospective basis, with early adoption permitted. January 1, 2020 The Company is currently evaluating the impact this ASU may have on its consolidated financial statements. However, the Company does not expect this ASU to have a significant impact on its financial statements or disclosures. Fair value measurement (ASU 2018-13) Eliminates such disclosures as the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy and adds new disclosure requirements for Level 3 measurements. Certain of the provisions are to be applied retrospectively with other provisions applied prospectively. January 1, 2020 The Company is currently evaluating the impact this ASU may have on its consolidated financial statements. Topic Description of Guidance Effective Date Status of Company's Evaluation Implementation costs in a cloud computing arrangement that is a service contract (ASU 2018-15) Aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in this update. Applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. January 1, 2020 The Company is currently evaluating the impact this ASU may have on its consolidated financial statements. |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Business Acquisition [Line Items] | |
Summary of Unaudited Pro forma Results | The following table presents the unaudited pro forma results for the three months ended March 31, 2019 and 2018, Three Months Ended March 31, (U.S. Dollars, in thousands) 2019 2018 (unaudited) (unaudited) Net sales $ 109,112 $ 112,455 Net income 897 4,899 |
Spinal Kinetics [Member] | |
Business Acquisition [Line Items] | |
Summary of Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the fair values of assets acquired and liabilities assumed at the acquisition date. During the first quarter of 2019, the Company finalized its valuation of assets acquired and liabilities assumed, which resulted in an adjustment between deferred income taxes and goodwill. (U.S. Dollars, in thousands) Preliminary Acquisition Date Fair Value as Previously Reported Adjustments Final Acquisition Date Fair Value Assigned Useful Life Assets acquired Cash and cash equivalents $ 6,785 $ — $ 6,785 Restricted cash 30 — 30 Accounts receivable 1,705 — 1,705 Inventories 8,175 — 8,175 Prepaid expenses and other current assets 315 — 315 Property, plant and equipment 2,285 — 2,285 Other long-term assets 320 — 320 Developed technology 12,400 — 12,400 10 years In-process research and development ("IPR&D") 26,800 — 26,800 10 years Tradename 100 — 100 2 years Deferred income taxes 2,374 1,220 3,594 Total identifiable assets acquired $ 61,289 $ 1,220 $ 62,509 Liabilities assumed Accounts payable $ 351 $ — $ 351 Other current liabilities 2,873 (4 ) 2,869 Other long-term liabilities 301 — 301 Total liabilities assumed $ 3,525 $ (4 ) $ 3,521 Goodwill 18,836 (1,224 ) 17,612 Total fair value of consideration transferred $ 76,600 $ — $ 76,600 |
Options Medical [Member] | |
Business Acquisition [Line Items] | |
Summary of Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the fair values of assets acquired and liabilities assumed at the acquisition date. (U.S. Dollars, in thousands) Fair Value Balance Sheet Classification Assigned Useful Life Assets acquired Operating lease assets $ 175 Other long-term assets Customer relationships 5,832 Intangible assets, net 10 years Assembled workforce 568 Intangible assets, net 5 years Total identifiable assets acquired $ 6,575 Liabilities assumed Operating lease liability - short-term $ 69 Other current liabilities Operating lease liability - long-term 106 Other long-term liabilities Total liabilities assumed 175 Total fair value of consideration transferred $ 6,400 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories were as follows: (U.S. Dollars, in thousands) March 31, 2019 December 31, 2018 Raw materials $ 8,359 $ 8,463 Work-in-process 10,442 13,478 Finished products 60,327 54,906 Inventories $ 79,128 $ 76,847 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Summary of Lease Portfolio | A summary of the Company’s lease portfolio as of March 31, 2019 is presented in the table below: (U.S. Dollars, in thousands, except lease term and discount rate) Classification March 31, 2019 Assets Operating leases Other long-term assets $ 6,758 Finance leases Property, plant and equipment, net 20,940 Total lease assets 27,698 Liabilities Current Operating leases Other current liabilities 1,764 Finance leases Current portion of finance lease liability 359 Long-term Operating leases Other long-term liabilities 5,028 Finance leases Long-term portion of finance lease liability 20,879 Total lease liabilities $ 28,030 Weighted Average Remaining Lease Term Operating leases 4.7 years Finance leases 21.4 years Weighted Average Discount Rate Operating leases 2.48 % Finance leases 4.38 % |
Summary of Components of Lease Costs | The components of lease costs were as follows: (U.S. Dollars, in thousands) Three Months Ended March 31, 2019 Finance lease costs: Amortization of right-of-use assets $ 239 Interest on finance lease liabilities 223 Operating lease costs 540 Short-term lease costs 62 Variable lease costs 152 Total lease costs $ 1,216 |
Summary of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows: (U.S. Dollars, in thousands) Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 950 Operating cash flows from finance leases 222 Financing cash flows from finance leases 99 Right-of-use assets obtained in exchange for lease obligations Operating leases 200 Finance leases 21,179 |
Summary of Remaining Lease Liabilities | A summary of the Company’s remaining lease liabilities as of March 31, 2019 is included below: (U.S. Dollars, in thousands) Operating Leases Finance Leases Year 1 $ 1,886 $ 1,284 Year 2 1,710 1,042 Year 3 1,525 1,421 Year 4 1,107 1,450 Year 5 178 1,479 Thereafter 830 26,835 Total undiscounted value of lease liabilities $ 7,236 $ 33,511 Less: Interest (444 ) (12,273 ) Present value of lease liabilities $ 6,792 $ 21,238 Current portion of lease liabilities 1,764 359 Long-term portion of lease liabilities 5,028 20,879 Total lease liabilities $ 6,792 $ 21,238 |
ASU 2016-02 [Member] | |
Summary of Net Impact of Adoption Balance Sheet | The net impact of adoption to the Company’s balance sheet as of January 1, 2019 is presented in the table below. The standard did not have a material impact to the Company’s condensed consolidated statements of operations and comprehensive income (loss) or cash flows. (U.S. Dollars, in thousands) December 31, 2018 Impact of Adoption of ASC 842 January 1, 2019 Assets Current assets Cash, cash equivalents, and restricted cash $ 72,189 $ — $ 72,189 Accounts receivable, net 77,747 — 77,747 Inventories 76,847 — 76,847 Prepaid expenses and other current assets 17,856 (15 ) 17,841 Total current assets 244,639 (15 ) 244,624 Property, plant, and equipment, net 42,835 — 42,835 Intangible assets, net and goodwill 124,298 — 124,298 Deferred income taxes 33,228 71 33,299 Other long-term assets 21,641 20,209 41,850 Total assets $ 466,641 $ 20,265 $ 486,906 Liabilities and shareholders’ equity Current liabilities Accounts payable $ 17,989 $ — $ 17,989 Other current liabilities 67,919 2,166 70,085 Total current liabilities 85,908 2,166 88,074 Other long-term liabilities 45,336 18,028 63,364 Total liabilities $ 131,244 $ 20,194 $ 151,438 Shareholders’ equity Common shares 1,858 — 1,858 Additional paid-in capital 243,165 — 243,165 Retained earnings 87,078 71 87,149 Accumulated other comprehensive income 3,296 — 3,296 Total shareholders’ equity 335,397 71 335,468 Total liabilities and shareholders’ equity $ 466,641 $ 20,265 $ 486,906 |
Fair value measurements (Tables
Fair value measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The fair value of the Company’s financial assets and liabilities measured on a recurring basis were as follows: March 31, 2019 December 31, 2018 (U.S. Dollars, in thousands) Level 1 Level 2 Level 3 Total Total Assets Treasury securities $ 471 $ — $ — $ 471 $ 490 Bone Biologics equity warrants — — — — — Bone Biologics equity securities — 219 — 219 219 eNeura debt security — — — — 17,820 eNeura warrant — — 491 491 — Total $ 471 $ 219 $ 491 $ 1,181 $ 18,529 Liabilities Contingent consideration $ — $ — $ (18,960 ) $ (18,960 ) $ (28,560 ) Deferred compensation plan — (1,254 ) — (1,254 ) (1,275 ) Total $ — $ (1,254 ) $ (18,960 ) $ (20,214 ) $ (29,835 ) |
Schedule of Changes in Valuation of Securities | The changes in valuation of these securities for the three months ended March 31, 2019 and 2018 are shown below: Three Months Ended March 31, (U.S. Dollars, in thousands) 2019 2018 Bone Biologics equity securities and warrants beginning balance $ 219 $ 2,768 Impact of adoption of ASU 2016-01 recognized in other income, net — 1,629 Purchase of additional common stock — 500 Bone Biologics equity securities and warrants ending balance $ 219 $ 4,897 |
Schedule of Reconciliation For Contingent Consideration Measured At Fair Value Using Significant Unobservable Inputs | The following table provides a reconciliation of the beginning and ending balances for the contingent consideration measured at fair value using significant unobservable inputs (Level 3): (U.S. Dollars, in thousands) 2019 Contingent consideration at January 1 $ 28,560 Increase in fair value recognized in operating expenses 5,400 Payment made (15,000 ) Contingent consideration at March 31 $ 18,960 |
Fair Value, Inputs, Level 3 [Member] | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Schedule of Reconciliation of Debt Security and Warrant | The following table provides a reconciliation of the beginning and ending balances for the eNeura debt security and warrant measured and reflected in the condensed consolidated balance sheets at fair value using significant unobservable inputs (Level 3): (U.S. Dollars, in thousands) 2019 2018 eNeura debt security and warrant at January 1 $ 17,820 $ 16,050 Gains or losses recorded for the period Recognized in other comprehensive income (loss) (2,593 ) — Change in classification of debt security to held to maturity (15,227 ) — Issuance of warrant as consideration for extension 491 eNeura debt security and warrant at March 31 $ 491 $ 16,050 |
Accumulated other comprehensi_2
Accumulated other comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Components of Changes in Accumulated Other Comprehensive Income (Loss) | The components of and changes in accumulated other comprehensive income were as follows: (U.S. Dollars, in thousands) Currency Translation Adjustments Debt Security Accumulated Other Comprehensive Income Balance at December 31, 2018 $ (2,386 ) $ 5,682 $ 3,296 Cumulative effect adjustment from adoption of ASU 2018-02 — 938 938 Other comprehensive loss (449 ) (2,593 ) (3,042 ) Income taxes — 641 641 Balance at March 31, 2019 $ (2,835 ) $ 4,668 $ 1,833 |
Revenue recognition and accou_2
Revenue recognition and accounts receivable (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue Recognition And Accounts Receivable [Abstract] | |
Schedule of Net Sales by Major Product Category by Reporting Segment | The tables below present net sales by major product category by reporting segment: Three Months Ended March 31, (U.S. Dollars, in thousands) 2019 2018 Change Bone Growth Therapies $ 47,283 $ 46,163 2.4 % Spinal Implants 22,903 20,707 10.6 % Biologics 15,732 14,335 9.7 % Global Spine 85,918 81,205 5.8 % Global Extremities 23,194 27,504 -15.7 % Net sales $ 109,112 $ 108,709 0.4 % |
Schedule of Net Sales | The table below presents net sales, which includes product sales and marketing service fees, for the three months ended March 31, 2019 and 2018. Three Months Ended March 31, (U.S. Dollars, in thousands) 2019 2018 Product sales $ 93,934 $ 94,889 Marketing service fees 15,178 13,820 Net sales $ 109,112 $ 108,709 |
Business segment information (T
Business segment information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Summary of EBIDTA by Reporting Segment | As mentioned above, the primary metric used in managing the Company is EBITDA. The table below presents EBITDA by reporting segment: Three Months Ended March 31, (U.S. Dollars, in thousands) 2019 2018 Global Spine $ 10,575 $ 18,825 Global Extremities (173 ) 3,328 Corporate (9,527 ) (7,002 ) Total EBITDA $ 875 $ 15,151 Depreciation and amortization (5,727 ) (4,369 ) Interest expense, net (257 ) (183 ) Income (loss) before income taxes $ (5,109 ) $ 10,599 |
Summary of Net Sales by Geographic Destination for Each Reporting Unit | Geographical information The table below present net sales by geographic destination for each reporting unit and for the consolidated Company: Three Months Ended March 31, (U.S. Dollars, in thousands) 2019 2018 Global Spine U.S. $ 79,526 $ 78,038 International 6,392 3,167 Total Global Spine 85,918 81,205 Global Extremities U.S. 6,598 6,916 International 16,596 20,588 Total Global Extremities 23,194 27,504 Consolidated U.S. 86,124 84,954 International 22,988 23,755 Net sales $ 109,112 $ 108,709 |
Acquisition-Related Amortizat_2
Acquisition-Related Amortization and Remeasurement (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Acquisition Related Amortization And Remeasurement [Abstract] | |
Components of Acquisition-Related Amortization and Remeasurement | Components of acquisition-related amortization and remeasurement for the three months ended March 31, 2019 and 2018, respectively, are as follows: Three Months Ended March 31, (U.S. Dollars, in thousands) 2019 2018 Changes in fair value of contingent consideration $ 5,400 $ — Amortization of acquired intangibles 1,057 63 Acquisition-related amortization and remeasurement $ 6,457 $ 63 |
Share-based compensation (Table
Share-based compensation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Share-Based Compensation by Line Item in Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) | The following tables present the detail of share-based compensation by line item in the condensed consolidated statements of operations and comprehensive income (loss) as well as by award type: Three Months Ended March 31, (U.S. Dollars, in thousands) 2019 2018 Cost of sales $ 187 $ 125 Sales and marketing 610 449 General and administrative 4,564 3,045 Research and development 324 297 Total $ 5,685 $ 3,916 Three Months Ended March 31, (U.S. Dollars, in thousands) 2019 2018 Stock options $ 2,112 $ 622 Time-based restricted stock awards and units 1,706 1,447 Performance-based restricted stock awards and units — 489 Market-based restricted stock units 1,347 953 Stock purchase plan 520 405 Total $ 5,685 $ 3,916 |
Earnings per share ("EPS") (Tab
Earnings per share ("EPS") (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Weighted Average Shares Used in Diluted EPS | The following is a reconciliation of the weighted average shares used in diluted EPS computations. Three Months Ended March 31, 2019 2018 Weighted average common shares-basic 18,750,184 18,404,856 Effect of dilutive securities Unexercised stock options and stock purchase plan 277,992 308,537 Unvested restricted stock awards and units 162,970 161,198 Weighted average common shares-diluted 19,191,146 18,874,591 |
Business and Basis of Presentat
Business and Basis of Presentation - Additional Information (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2019Segment | Mar. 31, 2018USD ($) | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Number Of Reporting Units | Segment | 2 | |
General and Administrative Expenses [Member] | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Prior period reclassification adjustment | $ (0.1) | |
Acquisition Related Amortization and Remeasurement Expense [Member] | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Prior period reclassification adjustment | $ 0.1 |
Recently Adopted Accounting S_3
Recently Adopted Accounting Standards and Recently Issued Accounting Pronouncements - Additional Information (Detail) $ in Millions | Jan. 01, 2019USD ($) |
ASU 2018-02 [Member] | |
Summary Of Significant Accounting Policies [Line Items] | |
Increase to accumulated other comprehensive income and a decrease in retained earnings | $ 0.9 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) shares in Millions | Jan. 31, 2019 | Apr. 30, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Feb. 06, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 71,177,000 | $ 72,401,000 | ||||
Consideration for the asssets acquired | $ 6,400,000 | |||||
Options Medical Founder [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Share based compensation, grant of restricted stock units | 25,478 | |||||
Share based compensation, grant fair value of restricted stock units | $ 1,400,000 | |||||
Share based compensation, vesting rights of RSUs | 33.33% | |||||
Spinal Kinetics [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition date | Apr. 30, 2018 | |||||
Business acquisition conversion of shares into net cash subject to adjustments | $ 45,000,000 | |||||
Fair value of the consideration transferred | 76,600,000 | |||||
Goodwill | 17,612,000 | |||||
Acquisition related costs | 0 | $ 1,500,000 | ||||
Revenue from acquisition | 3,100,000 | |||||
Net loss from Acquisition | $ 4,000,000 | |||||
Spinal Kinetics [Member] | Global Spine [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 17,600,000 | |||||
Spinal Kinetics [Member] | Maximum [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Future milestone payments | $ 60,000,000 |
Acquisitions - Summary of Fair
Acquisitions - Summary of Fair Values of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Jan. 31, 2019 | Apr. 30, 2018 | Mar. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 71,177 | $ 72,401 | ||
Spinal Kinetics [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 6,785 | |||
Restricted cash | 30 | |||
Accounts receivable | 1,705 | |||
Inventories | 8,175 | |||
Prepaid expenses and other current assets | 315 | |||
Property, plant and equipment | 2,285 | |||
Other long-term assets | 320 | |||
Deferred income taxes | 3,594 | |||
Total identifiable assets acquired | 62,509 | |||
Accounts payable | 351 | |||
Other current liabilities | 2,869 | |||
Other long-term liabilities | 301 | |||
Total liabilities assumed | 3,521 | |||
Goodwill | 17,612 | |||
Total fair value of consideration transferred | 76,600 | |||
Spinal Kinetics [Member] | Previously Reported [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | 6,785 | |||
Restricted cash | 30 | |||
Accounts receivable | 1,705 | |||
Inventories | 8,175 | |||
Prepaid expenses and other current assets | 315 | |||
Property, plant and equipment | 2,285 | |||
Other long-term assets | 320 | |||
Deferred income taxes | 2,374 | |||
Total identifiable assets acquired | 61,289 | |||
Accounts payable | 351 | |||
Other current liabilities | 2,873 | |||
Other long-term liabilities | 301 | |||
Total liabilities assumed | 3,525 | |||
Goodwill | 18,836 | |||
Total fair value of consideration transferred | 76,600 | |||
Spinal Kinetics [Member] | Adjustments [Member] | ||||
Business Acquisition [Line Items] | ||||
Deferred income taxes | 1,220 | |||
Total identifiable assets acquired | 1,220 | |||
Other current liabilities | (4) | |||
Total liabilities assumed | (4) | |||
Goodwill | (1,224) | |||
Options Medical [Member] | ||||
Business Acquisition [Line Items] | ||||
Total identifiable assets acquired | $ 6,575 | |||
Total liabilities assumed | 175 | |||
Total fair value of consideration transferred | 6,400 | |||
Options Medical [Member] | Operating Lease Liability - Short-term [Member] | ||||
Business Acquisition [Line Items] | ||||
Other current liabilities | 69 | |||
Options Medical [Member] | Operating Lease Liability - Long-term [Member] | ||||
Business Acquisition [Line Items] | ||||
Other long-term liabilities | 106 | |||
Options Medical [Member] | Operating Lease Assets [Member] | ||||
Business Acquisition [Line Items] | ||||
Other long-term assets | 175 | |||
Developed Technology [Member] | Spinal Kinetics [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite lived intangible assets, net acquired | $ 12,400 | |||
Assigned Useful Life | 10 years | |||
Developed Technology [Member] | Spinal Kinetics [Member] | Previously Reported [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite lived intangible assets, net acquired | $ 12,400 | |||
In-process Research and Development ("IPR&D") [Member] | Spinal Kinetics [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite lived intangible assets, net acquired | $ 26,800 | |||
Assigned Useful Life | 10 years | |||
In-process Research and Development ("IPR&D") [Member] | Spinal Kinetics [Member] | Previously Reported [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite lived intangible assets, net acquired | $ 26,800 | |||
Tradename [Member] | Spinal Kinetics [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite lived intangible assets, net acquired | $ 100 | |||
Assigned Useful Life | 2 years | |||
Tradename [Member] | Spinal Kinetics [Member] | Previously Reported [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite lived intangible assets, net acquired | $ 100 | |||
Customer Relationships [Member] | Options Medical [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite lived intangible assets, net acquired | $ 5,832 | |||
Assigned Useful Life | 10 years | |||
Assembled Workforce [Member] | Options Medical [Member] | ||||
Business Acquisition [Line Items] | ||||
Finite lived intangible assets, net acquired | $ 568 | |||
Assigned Useful Life | 5 years |
Acquisitions - Summary of Unaud
Acquisitions - Summary of Unaudited Pro forma Results (Detail) - Spinal Kinetics [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Business Acquisition [Line Items] | ||
Net sales | $ 109,112 | $ 112,455 |
Net income | $ 897 | $ 4,899 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 8,359 | $ 8,463 |
Work-in-process | 10,442 | 13,478 |
Finished products | 60,327 | 54,906 |
Inventories | $ 79,128 | $ 76,847 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Jan. 01, 2019 | |
Leases [Abstract] | ||
Additional lease assets | $ 20.2 | |
Additional lease liabilities | $ 20.5 | |
Increase in finance lease liability | $ 8 | |
Increase in finance lease asset | $ 8 |
Leases - Summary of Net Impact
Leases - Summary of Net Impact of Adoption Balance Sheet (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets | |||||
Cash, cash equivalents, and restricted cash | $ 49,208 | $ 72,189 | $ 77,056 | $ 81,157 | |
Accounts receivable, net | 79,615 | 77,747 | |||
Inventories | 79,128 | 76,847 | |||
Prepaid expenses and other current assets | 16,387 | 17,856 | |||
Total current assets | 224,338 | 244,639 | |||
Property, plant, and equipment, net | 63,727 | 42,835 | |||
Intangible assets, net and goodwill | 124,298 | ||||
Deferred income taxes | 36,575 | 33,228 | |||
Other long-term assets | 26,735 | 21,641 | |||
Total assets | 479,316 | 466,641 | |||
Current liabilities | |||||
Accounts payable | 19,643 | 17,989 | |||
Other current liabilities | 43,652 | 67,919 | |||
Total current liabilities | 63,654 | 85,908 | |||
Other long-term liabilities | 51,101 | 45,336 | |||
Total liabilities | 135,634 | 131,244 | |||
Shareholders’ equity | |||||
Common shares $0.10 par value; 50,000,000 shares authorized; 18,790,769 and 18,579,688 issued and outstanding as of March 31, 2019 and December 31, 2018, respectively | 1,879 | 1,858 | |||
Additional paid-in capital | 252,862 | 243,165 | |||
Retained earnings | 87,108 | 87,078 | |||
Accumulated other comprehensive income | 1,833 | 3,296 | |||
Total shareholders’ equity | 343,682 | 335,397 | $ 313,174 | $ 296,608 | |
Total liabilities and shareholders’ equity | $ 479,316 | 466,641 | |||
ASU 2016-02 [Member] | |||||
Current assets | |||||
Cash, cash equivalents, and restricted cash | $ 72,189 | ||||
Accounts receivable, net | 77,747 | ||||
Inventories | 76,847 | ||||
Prepaid expenses and other current assets | 17,841 | ||||
Total current assets | 244,624 | ||||
Property, plant, and equipment, net | 42,835 | ||||
Intangible assets, net and goodwill | 124,298 | ||||
Deferred income taxes | 33,299 | ||||
Other long-term assets | 41,850 | ||||
Total assets | 486,906 | ||||
Current liabilities | |||||
Accounts payable | 17,989 | ||||
Other current liabilities | 70,085 | ||||
Total current liabilities | 88,074 | ||||
Other long-term liabilities | 63,364 | ||||
Total liabilities | 151,438 | ||||
Shareholders’ equity | |||||
Common shares $0.10 par value; 50,000,000 shares authorized; 18,790,769 and 18,579,688 issued and outstanding as of March 31, 2019 and December 31, 2018, respectively | 1,858 | ||||
Additional paid-in capital | 243,165 | ||||
Retained earnings | 87,149 | ||||
Accumulated other comprehensive income | 3,296 | ||||
Total shareholders’ equity | 335,468 | ||||
Total liabilities and shareholders’ equity | $ 486,906 | ||||
ASU 2016-02 [Member] | Impact of Adoption of ASC 842 [Member] | |||||
Current assets | |||||
Prepaid expenses and other current assets | (15) | ||||
Total current assets | (15) | ||||
Deferred income taxes | 71 | ||||
Other long-term assets | 20,209 | ||||
Total assets | 20,265 | ||||
Current liabilities | |||||
Other current liabilities | 2,166 | ||||
Total current liabilities | 2,166 | ||||
Other long-term liabilities | 18,028 | ||||
Total liabilities | 20,194 | ||||
Shareholders’ equity | |||||
Retained earnings | 71 | ||||
Total shareholders’ equity | 71 | ||||
Total liabilities and shareholders’ equity | $ 20,265 |
Leases - Summary of Lease Portf
Leases - Summary of Lease Portfolio (Detail) $ in Thousands | Mar. 31, 2019USD ($) |
Assets | |
Operating leases | $ 6,758 |
Operating lease, right-of-use asset, statement of financial position [Extensible List] | us-gaap:OtherAssetsNoncurrent |
Finance leases | $ 20,940 |
Finance lease, right-of-use asset, statement of financial position [Extensible List] | us-gaap:PropertyPlantAndEquipmentNet |
Total lease assets | $ 27,698 |
Current | |
Operating leases | $ 1,764 |
Operating lease, liability, current, statement of financial position [Extensible List] | us-gaap:OtherLiabilitiesCurrent |
Finance leases | $ 359 |
Long-term | |
Operating leases | $ 5,028 |
Operating lease, liability, noncurrent, statement of financial position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent |
Finance leases | $ 20,879 |
Total lease liabilities | $ 28,030 |
Weighted Average Remaining Lease Term | |
Operating leases | 4 years 8 months 12 days |
Finance leases | 21 years 4 months 24 days |
Weighted Average Discount Rate | |
Operating leases | 2.48% |
Finance leases | 4.38% |
Leases - Summary of Components
Leases - Summary of Components of Lease Costs (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Finance lease costs: | |
Amortization of right-of-use assets | $ 239 |
Interest on finance lease liabilities | 223 |
Operating lease costs | 540 |
Short-term lease costs | 62 |
Variable lease costs | 152 |
Total lease costs | $ 1,216 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Cash Flow Information Related to Leases (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities | |
Operating cash flows from operating leases | $ 950 |
Operating cash flows from finance leases | 222 |
Financing cash flows from finance leases | 99 |
Right-of-use assets obtained in exchange for lease obligations | |
Operating leases | 200 |
Finance leases | $ 21,179 |
Leases - Summary of Remaining L
Leases - Summary of Remaining Lease Liabilities (Detail) $ in Thousands | Mar. 31, 2019USD ($) |
Operating Leases | |
Year 1 | $ 1,886 |
Year 2 | 1,710 |
Year 3 | 1,525 |
Year 4 | 1,107 |
Year 5 | 178 |
Thereafter | 830 |
Total undiscounted value of lease liabilities | 7,236 |
Less: Interest | (444) |
Present value of lease liabilities | 6,792 |
Current portion of lease liabilities | 1,764 |
Long-term portion of lease liabilities | 5,028 |
Total lease liabilities | 6,792 |
Finance Leases | |
Year 1 | 1,284 |
Year 2 | 1,042 |
Year 3 | 1,421 |
Year 4 | 1,450 |
Year 5 | 1,479 |
Thereafter | 26,835 |
Total undiscounted value of lease liabilities | 33,511 |
Less: Interest | (12,273) |
Present value of lease liabilities | 21,238 |
Current portion of lease liabilities | 359 |
Long-term portion of lease liabilities | 20,879 |
Total lease liabilities | $ 21,238 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) | 3 Months Ended | ||
Mar. 31, 2019USD ($) | Mar. 31, 2019EUR (€) | Aug. 31, 2015USD ($) | |
Italy [Member] | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 6,200,000 | € 5,500,000 | |
Amount outstanding under lines of credit | $ 0 | ||
2015 Credit Agreement [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument term (in years) | 5 years | ||
Maximum borrowing capacity | $ 125,000,000 | ||
Amount outstanding under lines of credit | $ 0 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Warrant [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value | $ 500 | |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value | 1,181 | $ 18,529 |
Contingent consideration | (18,960) | (28,560) |
Deferred compensation plan, Liabilities | (1,254) | (1,275) |
Liabilities fair value, Total | (20,214) | (29,835) |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value | 471 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value | 219 | |
Deferred compensation plan, Liabilities | (1,254) | |
Liabilities fair value, Total | (1,254) | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value | 491 | |
Contingent consideration | (18,960) | |
Liabilities fair value, Total | (18,960) | |
Fair Value, Measurements, Recurring [Member] | Treasury Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value | 471 | 490 |
Fair Value, Measurements, Recurring [Member] | Treasury Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value | 471 | |
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | Bone Biologics Inc [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value | 219 | 219 |
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Bone Biologics Inc [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value | 219 | |
Fair Value, Measurements, Recurring [Member] | Debt Security [Member] | eNeura Inc [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value | $ 17,820 | |
Fair Value, Measurements, Recurring [Member] | Warrant [Member] | eNeura Inc [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value | 491 | |
Fair Value, Measurements, Recurring [Member] | Warrant [Member] | Fair Value, Inputs, Level 3 [Member] | eNeura Inc [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets fair value | $ 491 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | Mar. 01, 2019 | Feb. 14, 2019 | Apr. 30, 2018 | Mar. 31, 2019 | Feb. 06, 2019 |
Spinal Kinetics [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Milestone achievement period | 5 years | ||||
Spinal Kinetics [Member] | Other Long-term Liabilities [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Contingent consideration | $ 19,000,000 | ||||
Maximum [Member] | Spinal Kinetics [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Future milestone payments | $ 60,000,000 | ||||
US Food And Drug Administration [Member] | Spinal Kinetics [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Future milestone payments | 15,000,000 | $ 15,000,000 | |||
Payments obligation for contigent consideration | $ 15,000,000 | ||||
Revenue Milestone [Member] | Spinal Kinetics [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Future milestone payments | $ 45,000,000 | ||||
Fair Value, Inputs, Level 3 [Member] | Warrant [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Fair value of warrant | $ 500,000 | ||||
eNeura Inc [Member] | Amended and Restated Senior Secured Promissory Note [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Debt maturity date | Mar. 4, 2019 | ||||
Debt securities, maturity date description | Amended and Restated Senior Secured Promissory Note with eNeura (the “Restructured Debt Security”) to restructure the debt security, which extended the maturity date to the earlier of (i) March 4, 2022, (ii) the effective date of a change in control, or (iii) the effective date of an initial public offering by eNeura and which also eliminated the conversion feature included within the original note. | ||||
Warrant exercisable price per share | $ 0.01 | ||||
Warrant contractual term | 10 years | ||||
Percentage of number of warrant issued equal to outstanding principal and accrued interest on debt security | 10.00% | ||||
Debt security subject to certain anti-dilution provision price per share | $ 1 | ||||
Common Stock [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Fair value of warrants | $ 0 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Change in Valuation of Securities (Detail) - Bone Biologics Inc [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Equity securities and warrants beginning balance | $ 219 | $ 2,768 |
Purchase of additional common stock | 0 | 500 |
Equity securities and warrants ending balance | 219 | 4,897 |
ASU 2016-01 [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Impact of adoption of ASU 2016-01 recognized in other income, net | $ 0 | $ 1,629 |
Fair Value Measurements - Sch_3
Fair Value Measurements - Schedule of Reconciliation of Debt Security and Warrant (Detail) - eNeura Inc [Member] - Debt Security and Warrant [Member] - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | $ 17,820 | $ 16,050 |
Gains or losses recorded for the period | ||
Recognized in other comprehensive income (loss) | (2,593) | 0 |
Change in classification of debt security to held to maturity | (15,227) | 0 |
Issuance of warrant as consideration for extension | 491 | 0 |
Ending balance | $ 491 | $ 16,050 |
Fair Value Measurements - Sch_4
Fair Value Measurements - Schedule of Reconciliation For Contingent Consideration Measured At Fair Value Using Significant Unobservable Inputs (Level 3) (Detail) - Fair Value, Inputs, Level 3 [Member] $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Acquisition date fair value | $ 28,560 |
Increase in fair value recognized in operating expenses | 5,400 |
Payment made | (15,000) |
Contingent consideration at March 31 | $ 18,960 |
Investments - Additional Inform
Investments - Additional Information (Detail) - ENeura Restructured Debt Security [Member] $ in Millions | Mar. 31, 2019USD ($) |
Debt Instrument [Line Items] | |
Original effective interest rate of debt security | 8.00% |
Restructured Note, amortized cost | $ 14.7 |
Estimated fair value of debt securities | 15.6 |
Unpaid principal balance of debt securities | $ 15 |
Contingencies - Additional Info
Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Jul. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Accrued other long-term liabilities | $ 3.9 | ||
Estimated sales and marketing expense | $ 0.3 | $ 0.3 | |
Freezing amount in cash resulted from court pending legal action issued | $ 2.5 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Components of Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | $ 335,397 | $ 296,608 |
Other comprehensive loss | (3,042) | |
Income taxes | 641 | |
Ending Balance | 343,682 | 313,174 |
ASU 2018-02 [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Cumulative effect adjustment from adoption of ASU 2018-02 | 938 | |
Currency Translation Adjustments [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | (2,386) | |
Other comprehensive loss | (449) | |
Ending Balance | (2,835) | |
Debt Security [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | 5,682 | |
Other comprehensive loss | (2,593) | |
Income taxes | 641 | |
Ending Balance | 4,668 | |
Debt Security [Member] | ASU 2018-02 [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Cumulative effect adjustment from adoption of ASU 2018-02 | 938 | |
Accumulated Other Comprehensive Income [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | 3,296 | 3,787 |
Ending Balance | 1,833 | $ 4,484 |
Accumulated Other Comprehensive Income [Member] | ASU 2018-02 [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Cumulative effect adjustment from adoption of ASU 2018-02 | $ 938 |
Revenue Recognition and Accou_3
Revenue Recognition and Accounts Receivable - Schedule of Net Sales Major Product Category by Reporting Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue Recognition And Accounts Receivable [Line Items] | ||
Net sales | $ 109,112 | $ 108,709 |
Change | 0.40% | |
Bone Growth Therapies [Member] | ||
Revenue Recognition And Accounts Receivable [Line Items] | ||
Net sales | $ 47,283 | 46,163 |
Change | 2.40% | |
Spinal Implants [Member] | ||
Revenue Recognition And Accounts Receivable [Line Items] | ||
Net sales | $ 22,903 | 20,707 |
Change | 10.60% | |
Biologics [Member] | ||
Revenue Recognition And Accounts Receivable [Line Items] | ||
Net sales | $ 15,732 | 14,335 |
Change | 9.70% | |
Global Spine [Member] | ||
Revenue Recognition And Accounts Receivable [Line Items] | ||
Net sales | $ 85,918 | 81,205 |
Change | 5.80% | |
Global Extremities [Member] | ||
Revenue Recognition And Accounts Receivable [Line Items] | ||
Net sales | $ 23,194 | $ 27,504 |
Change | (15.70%) |
Revenue Recognition and Accou_4
Revenue Recognition and Accounts Receivable - Schedule of Net Sales (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue Recognition [Abstract] | ||
Product sales | $ 93,934 | $ 94,889 |
Marketing service fees | 15,178 | 13,820 |
Net sales | $ 109,112 | $ 108,709 |
Revenue Recognition and Accou_5
Revenue Recognition and Accounts Receivable - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Other Long-Term Assets or Other Current Assets [Member] | ||
Revenue Recognition And Accounts Receivable [Line Items] | ||
Other contract assets | $ 2.7 | $ 1.9 |
Business Segment Information -
Business Segment Information - Additional Information (Detail) - Segment | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting [Abstract] | ||
Number of reporting segments | 2 | 4 |
Business Segment Information _2
Business Segment Information - Summary of EBIDTA by Reporting Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Total EBITDA | $ 875 | $ 15,151 |
Depreciation and amortization | (5,727) | (4,369) |
Interest expense, net | (257) | (183) |
Income (loss) before income taxes | (5,109) | 10,599 |
Operating Segments [Member] | Global Spine [Member] | ||
Segment Reporting Information [Line Items] | ||
Total EBITDA | 10,575 | 18,825 |
Operating Segments [Member] | Global Extremities [Member] | ||
Segment Reporting Information [Line Items] | ||
Total EBITDA | (173) | 3,328 |
Corporate, Non-Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total EBITDA | $ (9,527) | $ (7,002) |
Business Segment Information _3
Business Segment Information - Summary of Net Sales by Geographic Destination for Each Reporting Unit (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Net sales | $ 109,112 | $ 108,709 |
Global Spine [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Net sales | 85,918 | 81,205 |
Global Extremities [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Net sales | 23,194 | 27,504 |
U.S. [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Net sales | 86,124 | 84,954 |
U.S. [Member] | Global Spine [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Net sales | 79,526 | 78,038 |
U.S. [Member] | Global Extremities [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Net sales | 6,598 | 6,916 |
International [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Net sales | 22,988 | 23,755 |
International [Member] | Global Spine [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Net sales | 6,392 | 3,167 |
International [Member] | Global Extremities [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Net sales | $ 16,596 | $ 20,588 |
Acquisition-Related Amortizat_3
Acquisition-Related Amortization and Remeasurement - Components of Acquisition-Related Amortization and Remeasurement (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Acquisition Related Amortization And Remeasurement [Abstract] | ||
Changes in fair value of contingent consideration | $ 5,400 | |
Amortization of acquired intangibles | 1,057 | $ 63 |
Acquisition-related amortization and remeasurement | $ 6,457 | $ 63 |
Share-based Compensation - Sche
Share-based Compensation - Schedule of Share-Based Compensation by Line Item in Condensed Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated share based compensation expense | $ 5,685 | $ 3,916 |
Stock options [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated share based compensation expense | 2,112 | 622 |
Time-based Restricted Stock Awards and Units [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated share based compensation expense | 1,706 | 1,447 |
Performance-based Restricted Stock Awards and Units [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated share based compensation expense | 489 | |
Market-based Restricted Stock Units [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated share based compensation expense | 1,347 | 953 |
Stock purchase plan [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated share based compensation expense | 520 | 405 |
Cost of sales [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated share based compensation expense | 187 | 125 |
Sales and marketing [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated share based compensation expense | 610 | 449 |
General and administrative [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated share based compensation expense | 4,564 | 3,045 |
Research and development [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated share based compensation expense | $ 324 | $ 297 |
Share-based Compensation - Addi
Share-based Compensation - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Shares issued under stock purchase plan, stock option exercises and restricted stock awards and units | 211,081 | 126,511 |
Share-based compensation expense | $ 5,685 | $ 3,916 |
Transition and Retirement Agreement [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share based compensation, post-termination exercise period original term | 18 months | |
Maximum [Member] | Transition and Retirement Agreement [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share based compensation, post-termination exercise period revised term | 4 years | |
President and Chief Executive Officer [Member] | Transition and Retirement Agreement [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | $ 2,100 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Components Of Income Tax Expense Benefit [Line Items] | ||
Income tax effective rate | 117.60% | 50.70% |
Income tax (benefit) | $ (6,006) | $ 5,373 |
Internal Revenue Service [Member] | ||
Components Of Income Tax Expense Benefit [Line Items] | ||
Income tax (benefit) | (1,800) | |
Minimum [Member] | ||
Components Of Income Tax Expense Benefit [Line Items] | ||
Decrease in unrecognized tax benefits | 13,000 | |
Maximum [Member] | ||
Components Of Income Tax Expense Benefit [Line Items] | ||
Decrease in unrecognized tax benefits | $ 13,400 |
Earnings Per Share ("EPS") - Sc
Earnings Per Share ("EPS") - Schedule of Reconciliation of Weighted Average Shares Used in Diluted EPS (Detail) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Line Items] | ||
Weighted average common shares-basic | 18,750,184 | 18,404,856 |
Effect of dilutive securities | ||
Weighted average common shares-diluted | 19,191,146 | 18,874,591 |
Stock Options And Stock Purchase Plan [Member] | ||
Effect of dilutive securities | ||
Effect of diluted securities | 277,992 | 308,537 |
Restricted Stock Units [Member] | ||
Effect of dilutive securities | ||
Effect of diluted securities | 162,970 | 161,198 |
Earnings Per Share ("EPS") - Ad
Earnings Per Share ("EPS") - Additional Information (Detail) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Restricted Stock Units [Member] | Outstanding Stock Options [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Weighted average outstanding options, awards and units not included in diluted earnings per share | 484,421 | 122,678 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) $ in Millions | 1 Months Ended |
Apr. 30, 2019USD ($) | |
Subsequent Event [Member] | Brazil [Member] | |
Subsequent Event [Line Items] | |
Unfreezing cash amount returned from bank | $ 2.5 |