Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 25, 2019 | Jun. 29, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | RTIX | ||
Entity Registrant Name | RTI SURGICAL, INC. | ||
Entity Central Index Key | 1,100,441 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Shell Company | false | ||
Entity Small Business Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding | 62,312,813 | ||
Entity Public Float | $ 286 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Cash and cash equivalents | $ 10,949 | $ 22,381 |
Accounts receivable-less allowances of $2,380 at December 31, 2018 and $1,471 at December 31, 2017 | 48,351 | 35,081 |
Inventories - net | 107,471 | 111,927 |
Prepaid and other current assets | 8,791 | 16,285 |
Total current assets | 175,562 | 185,674 |
Property, plant and equipment - net | 77,954 | 79,564 |
Deferred tax assets - net | 17,510 | 9,575 |
Goodwill | 59,798 | 46,242 |
Other intangible assets - net | 26,359 | 23,070 |
Other assets - net | 4,003 | 1,781 |
Total assets | 361,186 | 345,906 |
Current Liabilities: | ||
Accounts payable | 26,309 | 18,252 |
Accrued expenses | 24,683 | 25,610 |
Current portion of deferred revenue | 4,908 | 4,868 |
Current portion of short and long-term obligations | 4,268 | |
Total current liabilities | 55,900 | 52,998 |
Long-term obligations - less current portion | 49,073 | 42,076 |
Acquisition contingencies | 4,986 | |
Other long-term liabilities | 633 | 1,431 |
Deferred revenue | 744 | 3,741 |
Total liabilities | 111,336 | 100,246 |
Commitments and contingencies (Note 22) | ||
Preferred stock Series A, $.001 par value: 5,000,000 shares authorized; 50,000 shares issued and outstanding | 66,226 | 63,923 |
Stockholders' equity: | ||
Common stock, $.001 par value: 150,000,000 shares authorized; 63,469,185 and 62,694,441 shares issued and outstanding, respectively | 64 | 63 |
Additional paid-in capital | 433,143 | 429,459 |
Accumulated other comprehensive loss | (7,270) | (6,329) |
Accumulated deficit | (237,444) | (237,066) |
Less treasury stock, 1,221,180 and 1,114,071 shares, respectively, at cost | (4,869) | (4,390) |
Total stockholders' equity | 183,624 | 181,737 |
Total liabilities and stockholders' equity | $ 361,186 | $ 345,906 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 2,380 | $ 1,471 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 50,000 | 50,000 |
Preferred stock, shares outstanding | 50,000 | 50,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 63,469,185 | 62,694,441 |
Common stock, shares outstanding | 63,469,185 | 62,694,441 |
Treasury stock, shares | 1,221,180 | 1,114,071 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Revenues | $ 280,855 | $ 279,563 | $ 272,865 |
Costs of processing and distribution | 140,732 | 137,042 | 140,516 |
Gross profit | 140,123 | 142,521 | 132,349 |
Expenses: | |||
Marketing, general and administrative | 119,217 | 115,103 | 116,125 |
Research and development | 14,410 | 13,375 | 16,090 |
Severance and restructuring costs | 2,280 | 12,173 | 2,146 |
Strategic review costs | 1,150 | ||
Executive transition costs | 2,781 | 4,404 | |
Contested proxy expenses | 2,680 | ||
Asset impairment and abandonments | 4,774 | 3,739 | 5,435 |
Acquisition and integration expenses | 4,943 | 630 | |
Cardiothoracic closure business divestiture contingency consideration | (3,000) | ||
Gain on cardiothoracic closure business divestiture | (34,090) | ||
Total operating expenses | 142,624 | 113,711 | 148,030 |
Operating (loss) income | (2,501) | 28,810 | (15,681) |
Other (expense) income: | |||
Interest expense | (2,771) | (3,180) | (1,655) |
Interest income | 35 | 8 | 8 |
Loss on extinguishment of debt | (309) | ||
Foreign exchange (loss) gain | (35) | 87 | (132) |
Total other expense - net | (3,080) | (3,085) | (1,779) |
(Loss) income before income tax (provision) benefit | (5,581) | 25,725 | (17,460) |
Income tax benefit (provision) | 4,331 | (19,453) | 3,061 |
Net (loss) income | (1,250) | 6,272 | (14,399) |
Convertible preferred dividend | (2,120) | (3,723) | (3,508) |
Net (loss) income applicable to common shares | (3,370) | 2,549 | (17,907) |
Other comprehensive (loss) income: | |||
Unrealized foreign currency translation loss | (941) | 1,987 | (1,274) |
Comprehensive (loss) income | $ (4,311) | $ 4,536 | $ (19,181) |
Net (loss) income per common share - basic | $ (0.05) | $ 0.04 | $ (0.31) |
Net (loss) income per common share - diluted | $ (0.05) | $ 0.04 | $ (0.31) |
Weighted average shares outstanding - basic | 63,521,703 | 59,684,289 | 58,236,745 |
Weighted average shares outstanding - diluted | 63,521,703 | 60,599,952 | 58,236,745 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Series A Preferred Stock [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Additional Paid-In Capital [Member]Series A Preferred Stock [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] | Treasury Stock [Member] |
Beginning Balance at Dec. 31, 2015 | $ 181,356 | $ 58 | $ 417,725 | $ (7,042) | $ (228,939) | $ (446) | ||
Net (loss) income | (14,399) | (14,399) | ||||||
Foreign currency translation adjustment | (1,274) | (1,274) | ||||||
Exercise of common stock options | 57 | 57 | ||||||
Stock-based compensation | 3,590 | 3,590 | ||||||
Purchase of treasury stock | (470) | (470) | ||||||
Change in income tax benefit from stock-based compensation | (251) | (251) | ||||||
Amortization of preferred stock Series A issuance costs | $ (185) | $ (185) | ||||||
Preferred stock Series A dividend | (3,508) | (3,508) | ||||||
Ending Balance at Dec. 31, 2016 | 164,916 | 58 | 417,428 | (8,316) | (243,338) | (916) | ||
Net (loss) income | 6,272 | 6,272 | ||||||
Foreign currency translation adjustment | 1,987 | 1,987 | ||||||
Exercise of common stock options | 9,181 | 5 | 9,176 | |||||
Stock-based compensation | 6,762 | 6,762 | ||||||
Purchase of treasury stock | (3,474) | (3,474) | ||||||
Amortization of preferred stock Series A issuance costs | (184) | (184) | ||||||
Preferred stock Series A dividend | (3,723) | (3,723) | ||||||
Ending Balance at Dec. 31, 2017 | 181,737 | 63 | 429,459 | (6,329) | (237,066) | (4,390) | ||
Accumulated effect of adoption of the revenue recognition standard | 872 | 872 | ||||||
Net (loss) income | (1,250) | (1,250) | ||||||
Foreign currency translation adjustment | (941) | (941) | ||||||
Exercise of common stock options | 1,243 | 1 | 1,242 | |||||
Stock-based compensation | 4,745 | 4,745 | ||||||
Purchase of treasury stock | (479) | (479) | ||||||
Amortization of preferred stock Series A issuance costs | (183) | (183) | ||||||
Preferred stock Series A dividend | $ (2,120) | $ (2,120) | ||||||
Ending Balance at Dec. 31, 2018 | $ 183,624 | $ 64 | $ 433,143 | $ (7,270) | $ (237,444) | $ (4,869) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net (loss) income | $ (1,250) | $ 6,272 | $ (14,399) |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Depreciation and amortization expense | 14,569 | 14,226 | 16,510 |
Provision for bad debts and product returns | 1,195 | 946 | 895 |
Provision for inventory write-downs | 15,122 | 5,066 | 13,880 |
Amortization of deferred revenue | (4,958) | (4,744) | (4,867) |
Deferred income tax provision | (4,322) | 13,329 | (3,395) |
Stock-based compensation | 4,745 | 6,660 | 3,590 |
Asset impairment and abandonments | 4,774 | 3,739 | 5,435 |
Cardiothoracic closure business divestiture contingency consideration | (3,000) | ||
Gain on cardiothoracic closure business divestiture | (34,090) | ||
Other | 1,330 | 2,392 | 603 |
Change in assets and liabilities: | |||
Accounts receivable | (11,201) | 5,784 | 4,756 |
Inventories | (11,790) | 1,375 | (15,369) |
Accounts payable | 8,054 | (12,899) | 4,583 |
Accrued expenses | (1,812) | 2,599 | (6,536) |
Deferred revenue | 2,000 | 2,000 | 2,000 |
Other operating assets and liabilities | 3,318 | (10,200) | 7,637 |
Net cash provided by operating activities | 16,774 | 2,455 | 15,323 |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (11,042) | (12,301) | (15,337) |
Patent and acquired intangible asset costs | (3,695) | (2,266) | (2,615) |
Proceeds from sale of building | 1,818 | ||
Acquisition of Zyga Technology | (21,000) | ||
Cardiothoracic closure business divestiture | 3,000 | 51,000 | |
Net cash provided by (used in) investing activities | (32,737) | 38,251 | (17,952) |
Cash flows from financing activities: | |||
Proceeds from exercise of common stock options | 2,356 | 5,060 | 57 |
Proceeds from long-term obligations | 74,425 | 6,000 | 17,000 |
Net (payments) proceeds from short-term obligations | (1,511) | ||
Payments on long-term obligations | (71,171) | (43,000) | (11,424) |
Other financing activities | (1,039) | (458) | (458) |
Net cash provided by (used in) financing activities | 4,571 | (32,398) | 3,664 |
Effect of exchange rate changes on cash and cash equivalents | (40) | 224 | 200 |
Net (decrease) increase in cash and cash equivalents | (11,432) | 8,532 | 1,235 |
Cash and cash equivalents, beginning of period | 22,381 | 13,849 | 12,614 |
Cash and cash equivalents, end of period | 10,949 | 22,381 | 13,849 |
Supplemental cash flow disclosure: | |||
Cash paid for interest | 3,047 | 3,023 | 1,224 |
Cash paid for income taxes, net of refunds | (6,403) | 12,142 | (238) |
Non-cash acquisition of property, plant and equipment | 496 | 593 | 952 |
Receivable for executive stock option exercise | 1,234 | ||
Stock-based compensation related to sale of CT business | 102 | ||
Change in accrual for dividend payable | $ 2,120 | $ 3,723 | $ 3,508 |
Business
Business | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business | 1. Business RTI Surgical, Inc. (the “Company”), and its subsidiaries recover and process human and animal tissue and manufacture metal and synthetic implants and instruments. The processing transforms the tissue into either conventional or precision machined allograft implants (human) or xenograft implants (animal), while our manufacturing facilities produce metal and synthetic implants. The implants are used for orthopedic and other surgical applications to promote the natural healing of human bone and other human tissue. These implants are distributed domestically and internationally, for use in reconstruction and fracture repair. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Principles of Consolidation RTIDS is a taxable not-for-profit Use of Estimates Foreign Currency Translation Fair Value of Financial Instruments Cash and Cash Equivalents Accounts Receivable Allowances Inventories first-in, first-out Non-tissue Surgical Instruments Property, Plant and Equipment Buildings 25 to 40 years Building improvements and leasehold improvements 8 to 40 years Processing equipment 7 to 10 years Office equipment, furniture and fixtures 5 to 7 years Computer hardware and software 3 to 7 years Surgical instruments 3 to 5 years Software Costs Debt Issuance Costs— Long-Lived Assets As further discussed in Note 23, during the second quarter of 2018, we recorded an impairment of $4,515 related to our map3 ® Goodwill Goodwill and Other Intangible Assets year-end Goodwill is tested for impairment annually by comparing the fair value of the reporting unit to its carrying amount, including goodwill. We evaluate our goodwill for impairment by utilizing an income approach and a market approach. The conclusion from these two approaches are generally weighted equally and then adjusted to incorporate a control premium or acquisition premium that reflects the additional amount a buyer is willing to pay for elements of control and for a premium that reflects the buyer’s perception of its ability to add value through synergies. In general, the income approach employs a discounted cash flow model that considers: 1) assumptions that marketplace participants would use in their estimates of fair value, including the cash flow period, terminal values based on a terminal growth rate and the discount rate; 2) current period actual results; and 3) projected results for future periods that have been prepared and approved by senior management of the Company. The forecasted cash flows do not include synergies that a marketplace participant would be expecting to achieve. The market approach employs market multiples from guideline public companies operating in our industry. Estimates of fair value are derived by applying multiples based on revenue and earnings before interest, taxes, depreciation and amortization (“EBITDA”) adjusted for size and performance metrics relative to peer companies. A control premium was included in determining the fair value under this approach. Both approaches used in the analysis have a degree of uncertainty. Potential events or changes in circumstances which could impact the key assumptions used in our goodwill impairment evaluation are as follows: • Change in peer group or performance of peer group companies • Change in the Company’s markets and estimates of future operating performance • Change in the Company’s estimated market cost of capital • Change in implied control premiums related to acquisitions in the medical device industry Goodwill represents the excess of purchase price over fair value of tangible net assets of acquired businesses at the acquisition date, after amounts allocated to other identifiable intangible assets. Factors that contribute to the recognition of goodwill include securing synergies that are specific to our business, not available to other market participants, and are expected to increase revenues and profits; acquisition of a talented workforce; cost savings opportunities; the strategic benefit of expanding our presence in core and adjacent markets; and diversifying our product portfolio. Other Intangible Assets Other intangible assets are tested for impairment whenever events or circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. The recoverability test is described in the Company’s accounting policy for long-lived assets set forth above. Revenue Recognition The Company permits returns of implants in accordance with the terms of contractual agreements with customers if the implant is returned in a timely manner, in unopened packaging, and from the normal channels of distribution. Allowances for returns are provided based upon analysis of the Company’s historical patterns of returns matched against the revenues from which they originated. The Company records estimated implant returns, discounts, rebates and other distribution incentives as a reduction of revenue in the same period revenue is recognized. Estimates of implant returns are recorded for anticipated implant returns based on historical distributions and returns information. Estimates of discounts, rebates and other distribution incentives are recorded based on contractual terms, historical experience and trend analysis. Other revenues consist of service processing, tissue recovery fees, biomedical laboratory fees, recognition of previously deferred revenues, shipping fees, distribution of reproductions of our allografts to distributors for demonstration purposes and restocking fees which is included in revenues. Stock-Based Compensation Plans Accounting for Stock Compensation pre-vesting Research and Development Costs Income Taxes year-end Treasury Stock Earnings Per Share Year Ended December 31, 2018 2017 2016 Weighted average basic shares 63,521,703 59,684,289 58,236,745 Effect of dilutive securities: Stock options — 915,663 — Weighted average diluted shares 63,521,703 60,599,952 58,236,745 Options to purchase 4,295,744 shares of common stock at prices ranging from $2.69 to $5.23 per share which were outstanding as of December 31, 2018, were not included in the computation of diluted EPS because dilutive shares are not factored into the calculation of EPS when a loss applicable to common shares is reported as they would be anti-dilutive. Options to purchase 4,692,037 shares of common stock at prices ranging from $2.69 to $8.20 per share which were outstanding as of December 31, 2017, were included in the computation of diluted EPS because dilutive shares are factored into the calculation of EPS when income applicable to common shares is reported. Options to purchase 5,764,607 shares of common stock at prices ranging from $2.69 to $9.57 per share which were outstanding as of December 31, 2016, were not included in the computation of diluted EPS because dilutive shares are not factored into the calculation of EPS when a loss applicable to common shares is reported as they would be anti-dilutive. For the years ended December 31, 2018, 2017 and 2016, 50,000 shares of convertible preferred stock and accrued but unpaid dividends were anti-dilutive on an as if-converted |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Standards | 3. Recently Issued Accounting Standards. Fair Value Measurement 2018-13, “ Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. ” 2018-13 2018-13 Earnings Per Share 2017-11, Earnings Per Share” “Distinguishing Liabilities from Equity” “Derivative and Hedging” 2017-11 470-20, 2017-11 re-characterize 2017-11 2017-11 250-10-45-5 45-10. 2017-11 2017-11 Compensation—Stock Compensation 2017-09, “Compensation—Stock Compensation” 2017-09 2017-09 Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets 2017-05, “Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets” 610-20): 2017-05 2017-05 2017-05 2017-05 Business Combinations—Clarifying the Definition of a Business No. 2017-01, Business Combinations—Clarifying the Definition of a Business” 2017-01 2017-01 2017-01 2017-01 Leases 2016-02, Leases (Topic 842) “ Leases (Topic 840). ” 2016-02 right-of-use We continue to finalize our calculations, including our discount rate assumptions, related to ASU 2016-02. 2016-02. 2016-02. Revenue from Contracts with Customers Adoption Impact The Company identified three contracts which previously resulted in revenue recognition occurring at the time of shipment; however, under the new revenue recognition standard, the Company is required to recognize revenue over time. The assessment of our January 1, 2018, consolidated balance sheet under ASC Topic 606 resulted in a cumulative-effect adjustment to opening retained earnings, unbilled accounts receivable and costs incurred for inventory. The effects of the adoption under ASC Topic 606 are outlined in the following table: Year Ended December 31, 2017 Impact January 1, 2018 Accounts receivable $ 35,081 $ 3,243 $ 38,324 Inventories—net 111,927 (995 ) 110,932 Accrued expenses — 1,110 1,110 Deferred tax assets 9,575 (266 ) 9,309 Accumulated deficit (237,066 ) 872 (236,194 ) The impact of adoption of Topic 606 to the Company’s consolidated balance sheets and statements of comprehensive (loss) income for the year ended December 31, 2018, was as follows: Year Ended December 31, 2018 As Reported Excluding Impact of Topic 606 Accounts receivable $ 48,351 $ 41,498 Inventories—net 107,471 111,169 Accrued expenses 24,683 24,166 Deferred tax assets 17,510 16,935 Accumulated deficit (237,444 ) (240,657 ) Year Ended December 31, 2018 As Reported Excluding Impact of Topic 606 Total revenues $ 280,855 $ 277,436 Cost of processing and distribution 140,732 138,828 Income tax benefit 4,331 4,807 Net loss (3,370 ) (4,409 ) Disaggregation of revenue The Company operates in one reportable segment composed of four lines of business. Effective January 1, 2018, the reporting of the Company’s lines of business are composed of four franchises or lines of business: spine; sports; OEM and international. The following table presents revenues from these four franchises for the year ended December 31, 2018: Year Ended December 31, 2018 Revenues: Spine $ 79,687 Sports 54,533 OEM 120,682 International 25,953 Total revenues from contracts with customers $ 280,855 The following table presents revenues recognized at a point in time and over time for the year ended December 31, 2018: Year Ended December 31, 2018 Revenue recognized at a point in time $ 240,112 Revenue recognized over time 40,743 Total revenues from contracts with customers $ 280,855 Performance Obligations The Company’s performance obligations consist mainly of transferring control of implants identified in the contracts. Some of the Company’s contracts offer assurance-type warranties in connection with the sale of a product to a customer. Assurance-type warranties provide a customer with assurance that the related product will function as the parties intended because it complies with agreed-upon specifications. Such warranties do not represent a separate performance obligation and are not material to the consolidated financial statements. When Performance Obligations Are Satisfied The Company typically transfers control at a point in time upon shipment or delivery of the implants for direct sales, or upon implantation for sales of consigned inventory. The customer is able to direct the use of, and obtain substantially all of the benefits from, the implant at the time the implant is shipped, delivered, or implanted, respectively based on the terms of the contract. For performance obligations related to the aforementioned three contracts with exclusively built inventory clauses, the Company typically satisfies its performance obligations evenly over the contract term as inventory is built. Such exclusively manufactured inventory has no alternative use and the Company has an enforceable right to payment for performance to date. The Company uses the input method to measure the manufacturing activities completed to date, which depicts the progress of the Company’s performance obligation of transferring control of exclusively built inventory. For the contracts with upfront and annual exclusivity fees, revenue related to those fees is recognized over the contract term following a consistent method of measuring progress towards satisfaction of the performance obligation. The Company uses the method and measure of progress that best depicts the transfer of control to the customer of the goods or services to date relative to the remaining goods or services promised under the contract. Significant Payment Terms The contract with the customer states the final terms of the sale, including the description, quantity, and price of each implant distributed. Payment for OEM contracts is typically due in full within 30 days of delivery or the start of the contract term. For the remaining lines of business, payment terms are typically due in full within 30 to 60 days of delivery. The Company performs a review of each specific customer’s credit worthiness and ability to pay prior to acceptance as a customer. Further, the Company performs periodic reviews of its customers’ creditworthiness prospectively. Since the customer agrees to a stated price in the contract that does not vary over the contract, the majority of contracts do not contain variable consideration. Nature of Goods and Services The Company distributes biologic, metal and synthetic implants. In some instances, the Company also enters into contracts with customers for exclusively manufactured inventory based on customer specifications. Returns In the normal course of business, the Company accepts product returns. The amount of consideration the Company ultimately receives varies depending upon the return terms that the Company may offer, which are accounted for as variable consideration when estimating the amount of revenue to recognize. The Company establishes provisions for estimated returns based on historical experience. The amount recorded on the Company’s balance sheets for product return allowance was $517 and $1,110 at December 31, 2018 and 2017, respectively. Liabilities for return allowances are included in “Accrued expenses”. Critical Accounting Estimates Estimates are used to determine the amount of variable consideration in contracts, and the measure of progress for contracts where revenue is recognized over time. The Company reviews and updates these estimates regularly. Our contracts generally do not include multiple performance obligations, and accordingly do not generally require estimates of the standalone selling price for each performance obligation. Contract Asset and Liability The opening and closing balances of the Company’s accounts receivable, contract asset and current and long-term contract liability are as follows: Accounts Receivable Contract Liability (Current) Contract Liability (Long- Term) Opening 1/1/2018 $ 38,324 $ 5,978 $ 3,741 Closing 12/31/2018 48,351 5,425 744 Increase/(decrease) 10,027 (553 ) (2,997 ) Contract liabilities consist primarily of the return allowance described above, and of deferred revenue arising from upfront and annual exclusivity fees. The difference between the opening and closing balances of the Company’s contract liabilities primarily results from the Company’s performance of the Company’s contractual obligations over time. The Company recognizes sales commissions as incurred because the amortization period is less than one year. The Company does not incur other incremental costs relating to obtaining a contract with a customer, and therefore, does not have material contract assets, or impairment losses associated therewith. Revenue recognized for the year ended December 31, 2018, from amounts included in contract liabilities at the beginning of the period was $4,958. |
Acquisition of Zyga Technology,
Acquisition of Zyga Technology, Inc. | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisition of Zyga Technology, Inc. | 4. Acquisition of Zyga Technology, Inc. On January 4, 2018, the Company acquired Zyga Technology, Inc. (“Zyga”), a leading spine-focused medical device company that develops and produces innovative minimally invasive devices to treat underserved conditions of the lumbar spine. Zyga’s primary product is the SImmetry ® The Company has accounted for the acquisition of Zyga under ASC 805, Business Combinations The purchase price was financed as follows: (In thousands) Cash proceeds from revolving credit facility $ 18,000 Cash from RTI Surgical 3,000 Total purchase price $ 21,000 In the fourth quarter of 2018, the Company completed its valuation of the tax accounts associated with the purchase price allocation. The table below represents an allocation of the total consideration to Zyga’s tangible and intangible assets and liabilities fair values as of January 4, 2018. During the three months ended December 31, 2018, the Company made the following changes to the fair values of acquired assets and liabilities as a result of completing the valuation of acquired deferred tax assets: increased deferred tax assets by $3,066 and decreased goodwill by $3,066. (In thousands) Inventories $ 1,099 Accounts receivable 573 Other current assets 53 Property, plant and equipment 151 Other assets 26 Deferred tax assets 4,715 Current liabilities (947 ) Acquisition contingencies (4,986 ) Net tangible assets acquired 684 Other intangible assets 6,760 Goodwill 13,556 Total net assets acquired $ 21,000 Total net assets acquired as of January 4, 2018, are all part of the Company’s only operating segment. Fair values are based on management’s estimates and assumptions including variations of the income approach, the cost approach and the market approach. Other intangible assets include patents of $6,500 with a useful life of 13 years, trademarks of $80 with a useful life of 1 year and selling and marketing relationships of $180 with a useful life of 7 years. The Company believes that the acquisition of Zyga has offered and continues to offer the potential for substantial strategic and financial benefits. The transaction further advances our strategic transformation focused on reducing complexity, driving operational excellence and accelerating growth. The Company believes the acquisition will enhance stockholder value through, among other things, enabling the Company to capitalize on the following strategic advantages and opportunities: • Zyga’s innovative minimally invasive treatment should accentuate our spine portfolio and opens significant opportunities to accelerate our Spine-focused expansion strategy. • Zyga should leverage the core competencies of our Spine franchise by pursuing niche differentiated products, to gain scale and customer retention and support portfolio pull-through. These potential benefits resulted in the Company paying a premium for Zyga resulting in the recognition of $13,556 of goodwill assigned to the Company’s only operating segment and reporting unit. For tax purposes, none of the goodwill is deductible. The amount of Zyga’s revenues and net loss since the January 4, 2018, acquisition date, included in the Company’s Consolidated Statement of Comprehensive (Loss) Income for the year ended December 31, 2018, excluding acquisition related costs of approximately $800, are $4,757 and $2,573, respectively. The following unaudited pro forma information shows the results of the Company’s operations as though the acquisition had occurred as of January 1, 2017 (in thousands, except per share data): Year End 2018 2017 Revenues $ 4,809 $ 4,649 Net loss applicable to common shares (2,640 ) (4,239 ) Basic net loss per share (0.04 ) (0.07 ) Diluted net loss per share (0.04 ) (0.07 ) The unaudited pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the actual results of operations had the acquisition taken place as of the beginning of the periods presented, or the results that may occur in the future. These amounts exclude costs incurred which are directly attributable to the acquisition, and which do not have a continuing impact on the combined companies’ operating results. |
Cardiothoracic Closure Business
Cardiothoracic Closure Business Divestiture | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Cardiothoracic Closure Business Divestiture | 5. Cardiothoracic Closure Business Divestiture The Company completed the sale of substantially all of the assets related to its Cardiothoracic closure business (the “CT Business”) to A&E Advanced Closure Systems, LLC (a subsidiary of A&E Medical Corporation) (“A&E”) pursuant to an Asset Purchase Agreement between the Company and A&E, dated August 3, 2017 (the “Asset Purchase Agreement”). The total cash consideration received by the Company under the Asset Purchase Agreement was composed of $54,000, $3,000 of which was held in escrow (the “Escrow Amount”) to satisfy possible indemnification obligations, of which there were none. As such, the Company earned and received the $3,000 cash consideration in the third quarter of 2018. An additional $5,000 in contingent cash consideration is earned if A&E reaches certain revenue milestones (the “Contingent Consideration”). The Company also earned and received an additional $1,000 in consideration for successfully obtaining certain U.S. Food and Drug Administration (“FDA”) regulatory clearance. As a part of the transaction, the Company also entered into a multi-year Contract Manufacturing Agreement with A&E (the “Contract Manufacturing Agreement”). Under the Contract Manufacturing Agreement, the Company agreed to continue to support the CT Business by manufacturing existing products and engineering, developing, and manufacturing potential future products for A&E. The Company elected to account for the Contingent Consideration arrangement including the Escrow Amount, as a gain contingency in accordance with ASC 450 Contingencies. As such, the Contingent Consideration and Escrow Amount were excluded in measuring the fair value of the consideration to be received in connection with the transaction. The calculation of the gain on the CT Business divestiture is as follows: Proceeds from cardiothoracic closure business divestiture $ 51,000 Inventories—net (2,893 ) Property, plant and equipment—net (1,299 ) Goodwill (8,645 ) Other intangible assets—net (280 ) Cardiothoracic closure business divestiture expenses (3,793 ) Gain on cardiothoracic closure business divestiture $ 34,090 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | 6. Stock-Based Compensation The Company’s policy is to grant stock options at an exercise price equal to 100% of the market value of a share of common stock at closing on the date of the grant. The Company’s stock options generally have five to ten-year 2018 Incentive Compensation Plan— 2015 Incentive Compensation Plan— The following weighted-average assumptions were used to determine the fair value of options under FASB ASC 718: Year Ended December 31, 2018 2017 2016 Expected term (years) 6.50 6.50 6.50 Risk free interest rate 2.75 % 2.26 % 1.85 % Volatility factor 43.74 % 47.39 % 45.57 % Dividend yield — — — Stock Options Stock options outstanding, exercisable and available for grant at December 31, 2018, are summarized as follows: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding at January 1, 2018 4,692,037 $ 3.86 Granted 722,122 4.32 Exercised (352,015 ) 3.53 Forfeited or expired (766,400 ) 5.02 Outstanding at December 31, 2018 4,295,744 $ 3.76 5.73 $ 1,175 Vested or expected to vest at December 31, 2018 4,062,373 $ 3.74 5.58 $ 1,143 Exercisable at December 31, 2018 1,669,844 $ 3.65 3.54 $ 493 Available for grant at December 31, 2018 5,454,302 The aggregate intrinsic value in the table above represents the total pre-tax For the years ended December 31, 2018, 2017 and 2016, the Company recognized stock-based compensation as follows: Year Ended December 31, 2018 2017 2016 Stock-based compensation: Costs of processing and distribution $ 132 $ 132 $ 140 Marketing, general and administrative 4,553 6,586 3,406 Research and development 60 44 44 Total $ 4,745 $ 6,762 $ 3,590 As of December 31, 2018, there was $2,059 of total unrecognized stock-based compensation related to nonvested stock options. That expense is expected to be recognized over a weighted-average period of 1.72 years. Other information concerning stock options are as follows: Year Ended December 31, 2018 2017 2016 Weighted average fair value of stock options granted $ 2.05 $ 1.66 $ 1.55 Aggregate intrinsic value of stock options exercised 349 2,786 12 The aggregate intrinsic value of stock options exercised in a period represents the pre-tax Restricted Stock Awards The value of restricted stock awards is determined by the market value of the Company’s common stock at the date of grant. In 2018, restricted stock awards in the amount of 686,038 shares and 141,176 shares was granted to employees and non-employee Number of Shares Weighted Average Grant Date Fair Value Unvested at January 1, 2018 1,120,190 $ 4.15 Granted 827,214 4.29 Vested (592,705 ) 4.09 Forfeited (279,484 ) 4.13 Unvested at December 31, 2018 1,075,215 $ 4.29 Inducement Grant President and Chief Executive Officer On January 26, 2017, the Company issued an inducement grant to its President and Chief Executive Officer, Mr. Camille Farhat. This grant was in the form of: (1) a restricted stock award agreement (the “Restricted Stock Agreement #1”); (2) another restricted stock award agreement (the “Restricted Stock Agreement #2”); and (3) a stock option agreement. Under the Restricted Stock Agreement #1, the Company granted Mr. Farhat 850,000 shares of restricted common stock. On the first anniversary of the grant date, 170,000 shares will vest. The remaining shares will vest on the last day of each calendar quarter at a rate of 42,500 shares per calendar quarter commencing after the first anniversary of the grant date and continuing for four years after. Vesting of these shares may accelerate upon the occurrence of either of two performance conditions. On December 4, 2017, the Company and Mr. Farhat entered into the First Amendment to the Restricted Stock Agreement #1 (the “Amendment”). The Amendment revised the vesting conditions for the Company’s common stock, par value $0.001 per share (the “Common Stock”), granted under the Restricted Stock Agreement #1. Pursuant to the Amendment, certain acceleration conditions contained in the Restricted Stock Agreement #1 were deleted and 425,000 shares of restricted Common Stock vested on December 4, 2017 (the “Vested Grant”). If Mr. Farhat voluntarily leaves the employment of the Company (other than for “Good Reason”) or is terminated for “Cause” (as those terms are defined in the Employment Agreement between the Company and Mr. Farhat, dated January 26, 2017) on or before March 31, 2019, then Mr. Farhat will forfeit all of the shares of the Vested Grant that would not have otherwise vested under vesting schedule contained in the Restricted Stock Agreement #1 at the time of termination. Pursuant to the Amendment, Mr. Farhat will also be required to hold the shares of the Vested Grant until March 31, 2019, except to the extent those shares would have vested under the vesting schedule contained in the Restricted Stock Agreement #1 at the time of a proposed transfer by Mr. Farhat. The unaccelerated shares of restricted Common Stock granted under the Restricted Stock Agreement #1 will vest under vesting schedule contained in the Restricted Stock Agreement #1. Pursuant to the Restricted Stock Agreement #1 vesting schedule, 170,000 of the unaccelerated restricted shares vested on January 26, 2018, and the remaining unaccelerated restricted shares will vest in 42,500 share increments on the last day of each calendar quarter commencing on March 31, 2018, continuing until all unaccelerated restricted shares have vested. Under the terms of the Amendment, the final tranche of shares of restricted Common Stock granted under the Restricted Stock Agreement #1 will vest as of June 30, 2019, instead of on December 31, 2021, which would have been the case if no acceleration occurred. Under the Restricted Stock Agreement #2, the Company granted Mr. Farhat 150,000 shares of restricted common stock. These 150,000 restricted shares became fully vested, effective May 18, 2017. Under the Option Agreement, the Company granted Mr. Farhat the option to purchase 1,950,000 shares of common stock. The exercise price for the Stock Options is $3.20. The stock options will expire on January 26, 2022. The stock options will vest based on the Company’s attainment of three average stock price benchmarks. The first 650,000 shares will vest if the Company’s average publicly traded stock price is over $6.00 for a sixty-consecutive calendar day period. The next 650,000 shares will vest if the Company’s average publicly traded stock price is over $7.00 for a sixty-consecutive calendar day period. The final 650,000 shares will vest if the Company’s average publicly traded stock price is over $8.00 for a sixty-consecutive calendar day period. The vesting of the stock options is cumulative. Chief Financial and Administrative Officer On September 18, 2017, the Company issued an inducement grant to its Chief Financial and Administrative Officer, Mr. Jonathon Singer. This grant was in the form of: (1) a restricted stock award agreement (the “Restricted Stock Agreement”); and (2) a stock option agreement. This inducement grant was made under the RTI Surgical, Inc. 2015 Incentive Compensation Plan, which was filed with the SEC on May 5, 2015. Under the Restricted Stock Agreement, the Company granted Mr. Singer 109,890 shares of restricted Common Stock. The shares will vest over a three-year period. On the first anniversary of the grant date, 36,630 shares vested. On the second anniversary of the grant date, an additional 36,630 shares will vest. On the third anniversary of the grant date, the final 36,630 shares will vest. Under the Option Agreement, the Company granted Mr. Singer the option to purchase 306,900 shares of Common Stock, as of the grant date. The exercise price for the Stock Options is $4.55 per share. The stock options will expire on September 18, 2027. The stock options will vest based the Company’s attainment of three average stock price benchmarks. The first 102,300 shares will vest if the Company’s average publicly traded stock price is over $7.00 per share for a sixty-consecutive calendar day period. The next 102,300 shares will vest if the Company’s average publicly traded stock price is over $8.00 per share for a sixty-consecutive calendar day period. The final 102,300 shares will vest if the Company’s average publicly traded stock price is over $9.00 per share for a sixty-consecutive calendar day period. The vesting of the stock options is cumulative. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | 7. Inventories Inventories by stage of completion are as follows: December 31, 2018 2017 Unprocessed tissue, raw materials and supplies $ 24,211 $ 22,071 Tissue and work in process 31,796 40,481 Implantable tissue and finished goods 51,464 49,375 $ 107,471 $ 111,927 For the years ended December 31, 2018, 2017, and 2016, the Company had inventory write-downs of $15,122, $5,066 and $13,880, respectively, relating primarily to excess quantities and obsolescence of inventories. Included in the year ended December 31, 2018, are $1,023 of product obsolescence related to the rationalization of our international distribution infrastructure and $6,559 of inventory write-off ® write-off |
Prepaid and Other Current Asset
Prepaid and Other Current Assets | 12 Months Ended |
Dec. 31, 2018 | |
Text Block [Abstract] | |
Prepaid and Other Current Assets | 8. Prepaid and Other Current Assets Prepaid and Other Current Assets are as follows: December 31, 2018 2017 Income tax receivable $ 3,920 $ 9,825 Receivable for executive stock option exercise — 1,234 Prepaid expenses 4,127 3,521 Other 744 1,705 $ 8,791 $ 16,285 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 9. Property, Plant and Equipment Property, plant and equipment are as follows: December 31, 2018 2017 Land $ 2,020 $ 2,020 Buildings and improvements 58,093 57,954 Processing equipment 42,599 44,137 Surgical instruments 24,070 21,256 Office equipment, furniture and fixtures 1,877 1,352 Computer equipment and software 18,873 19,332 Construction in process 8,934 5,980 156,466 152,031 Less accumulated depreciation (78,512 ) (72,467 ) $ 77,954 $ 79,564 For the years ended December 31, 2018, 2017, and 2016, the Company had depreciation expense in connection with property, plant and equipment of $10,619, $10,513, and $12,835, respectively. For the year ended December 31, 2018, the Company recorded asset impairment and abandonment charges of $1,797, relating to lower distributions of our map3 ® |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | 10. Goodwill The change in the carrying amount of goodwill for the year ended December 31, 2018, is as follows: Year Ended 2018 2017 Balance at January 1 $ 46,242 $ 54,887 Goodwill acquired related to Zyga acquisition 13,556 — Goodwill disposed of related to sale of Cardiothoracic closure business — 8,645 Balance at December 31 $ 59,798 $ 46,242 Goodwill acquired during the year ended December 31, 2018, includes the excess of the Zyga purchase price over the sum of the amounts assigned to assets acquired less liabilities assumed. The Company considered the decreased forecasted distributions of our map3 ® |
Other Intangible Assets
Other Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets | 11. Other Intangible Assets Other intangible assets are as follows: December 31, 2018 December 31, 2017 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Patents $ 16,092 $ 4,194 $ 11,373 $ 4,890 Acquired licensing rights 11,852 6,468 14,747 9,097 Marketing and procurement intangible assets 20,356 11,279 20,603 9,666 Total $ 48,300 $ 21,941 $ 46,723 $ 23,653 For the years ended December 31, 2018, 2017, and 2016, the Company had amortization expense of other intangible assets of $3,950, $3,713, and $3,675, respectively. For the year ended December 31, 2018, the Company recorded asset impairment and abandonment charges of $2,718 relating to lower distributions of our map3 ® At December 31, 2018, management’s estimates of future amortization expense for the next five years are as follows: Amortization Expense 2019 $ 4,200 2020 4,100 2021 4,100 2022 4,100 2023 1,800 |
Fair Value Information
Fair Value Information | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Information | 12. Fair Value Information Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy defines a three-level valuation hierarchy for classification and disclosure of fair value measurements as follows: Level 1—Quoted prices in active markets for identical assets or liabilities. Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. On January 4, 2018, the Company acquired Zyga as further explained in Note 4 above. The Company estimates a contingent liability related to the clinical milestone and revenue based earnout of $4,986. The fair value of the contingent liability was measured using Level 3 inputs.Long-lived assets, including property and equipment and intangible assets subject to amortization were impaired and written down to their estimated fair values during the second quarter of 2018 and the fourth quarter of 2016. Fair value is measured as of the impairment date using Level 3 inputs. The long-lived asset level 3 fair value was determined using a market approach, which used inputs that included replacement costs (unobservable), physical deterioration estimates (unobservable), economic obsolescence (unobservable), and market sales data for comparable assets. The following table summarizes impairments of long-lived assets and the related post impairment fair values of the corresponding assets for the year ended December 31, 2016 and 2018: Year Ended December 31, 2016 Impairment Fair Value Property, plant and equipment—net $ 4,717 $ 4,708 Other intangible assets—net 718 150 $ 5,435 $ 4,858 Year Ended December 31, 2018 Impairment Fair Value Property, plant and equipment—net $ 1,797 $ — Other intangible assets—net 2,718 — $ 4,515 $ — No impairments on long-lived assets were recorded for the year ended December 31, 2017. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Accrued Expenses | 13. Accrued Expenses Accrued expenses are as follows: December 31, 2018 2017 Accrued compensation $ 8,678 $ 8,257 Accrued severance and restructuring costs 931 3,279 Accrued executive transition costs 43 2,300 Accrued distributor commissions 3,907 3,889 Accrued donor recovery fees 4,088 4,144 Other 7,036 3,741 $ 24,683 $ 25,610 |
Short and Long-Term Obligations
Short and Long-Term Obligations | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Short and Long-Term Obligations | 14. Short and Long-Term Obligations Short and long-term obligations are as follows: December 31, 2018 December 31, 2017 Term loan $ — $ 24,250 Revolving credit facility 50,000 22,500 Less unamortized debt issuance costs (927 ) (406 ) Total 49,073 46,344 Less current portion — (4,268 ) Long-term portion $ 49,073 $ 42,076 On June 5, 2018, the Company terminated its 2017 loan agreement with TD Bank, N.A. and First Tennessee Bank National Association. The 2017 loan agreement provided for a revolving credit facility in the aggregate principal amount of $42,500. Borrowings under the 2017 loan agreement had an interest rate per annum equal to monthly LIBOR plus a margin of up to 3.50%. The maturity date of the revolving credit facility was September 15, 2019. On June 5, 2018, the Company entered into a Credit Agreement (the “2018 Credit Agreement”), as borrowers, with JP Morgan Chase Bank, N.A., as lender (together with the various financial institutions as in the future may become parties thereto, the “Lenders”) and as administrative agent for the Lenders. The 2018 Credit Agreement provides for a revolving credit facility in the aggregate principal amount of up to $100,000 (the “Facility”). The Company and Pioneer will be able to, at their option, and subject to customary conditions and Lender approval, request an increase to the Facility by up to $50,000. The Facility is guaranteed by the Company’s domestic subsidiaries and is secured by: (i) substantially all of the assets of the Company and Pioneer; (ii) substantially all of the assets of each of the Company’s domestic subsidiaries; and (iii) 65% of the stock of the Company’s foreign subsidiaries. The initial borrowings made under the 2018 Credit Agreement will bear interest at a rate per annum equal to the monthly REVLIBOR30 Rate (“CBFR Loans”) plus an adjustable margin of up to 2.00% (the “CBFR Rate”). The Company may elect to convert the interest rate for the initial borrowings to a rate per annum equal to the adjusted LIBO Rate (“Eurodollar Loans”) plus an adjustable margin of up to 2.00% (the “Eurodollar Rate”). For all subsequent borrowings, the Company may elect to apply either the CBFR Rate or Eurodollar Rate. The applicable margin is subject to adjustment after the end of each fiscal quarter, based upon the Company’s average quarterly availability. The maturity date of the Facility is June 5, 2023. The Company may make optional prepayments on the Facility without penalty. The Company paid certain customary closing costs and bank fees upon entering into the 2018 Credit Agreement in the amount of $1,049. The Company is subject to certain affirmative and negative covenants, including (but not limited to), covenants limiting the Company’s ability to: incur certain additional indebtedness; create certain liens; enter into sale and leaseback transactions; and consolidate or merge with, or convey, transfer or lease all or substantially all of its assets to another person. The Company is required to maintain a minimum fixed charge coverage ratio of at least 1.00:1.00 (the “Required Minimum Fixed Charge Coverage Ratio”) during either of the following periods (each, a “Covenant Testing Period”): (i) a period beginning on a date that a default has occurred and is continuing under the loan documents entered into by the Company in conjunction with the 2018 Credit Agreement through the first date on which no default has occurred and is continuing; or (ii) a period beginning on a date that availability under the Facility is less than the specified covenant testing threshold and continuing until availability under the Facility is greater than or equal to the specified covenant testing threshold for thirty (30) consecutive days. The Required Minimum Fixed Charge Coverage Ratio is measured on the last day of each calendar month during the Covenant Testing Period (each a “Calculation Date”), and is calculated using the minimum fixed charge coverage ratio for the twelve (12) consecutive months ending on each Calculation Date. The amounts owed under the 2018 Credit Agreement may be accelerated upon the occurrence of certain events of default customary for facilities for similarly rated borrowers. At December 31, 2018, the interest rate for the Facility was 4.10%. As of December 31, 2018, there was $50,000 outstanding on the Facility and total remaining available credit on the Facility was $43,713. The Company’s ability to access the Facility is subject to and can be limited by the Company’s compliance with the Company’s financial and other covenants. The Company was in compliance with the financial covenants related to the Facility as of December 31, 2018. Interest expense associated with the amortization of debt issuance costs for the years ended December 31, 2018, 2017 and 2016 was $528, $409 and $202, respectively. For the year ended December 31, 2018, loss on extinguishment of debt associated with refinancing the Company’s debt was $309. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 15. Income Taxes The Company’s income tax benefit (provision) consists of the following components: Year Ended December 31, 2018 2017 2016 Current: Federal $ 1,305 $ (3,176 ) $ (150 ) State (110 ) (915 ) (92 ) International (376 ) — 456 Total current 819 (4,091 ) 214 Deferred: Federal 2,059 (14,340 ) 2,477 State (2,519 ) (1,022 ) 562 International 3,972 — (192 ) Total deferred 3,512 (15,362 ) 2,847 Total income tax benefit (provision) $ 4,331 $ (19,453 ) $ 3,061 The Company’s deferred tax assets and liabilities consists of the following components: December 31, 2018 December 31, 2017 Deferred Income Tax Deferred Income Tax Assets Liabilities Assets Liabilities Accounts receivable $ 444 $ — $ 186 $ — Accrued liabilities 2,083 — 2,072 — Deferred compensation 1,372 — 1,783 — Fixed assets and intangibles — (5,862 ) — (7,370 ) Inventory 7,631 — 5,905 — Net operating losses 8,198 — 8,106 — Revenue 650 — 1,874 — Tax credits 6,087 — 4,387 — Other — — — (110 ) Valuation allowance (3,093 ) — (7,258 ) — Total $ 23,372 $ (5,862 ) $ 17,055 $ (7,480 ) The Company expects its deferred tax assets of $17,510 net of the valuation allowance at December 31, 2018 of $3,093, to be realized through the generation of future taxable income and the reversal of existing taxable temporary differences. On December 22, 2017, the US government enacted the Tax Legislation. The Tax Legislation makes broad and complex changes to the U.S. tax code including, but not limited to the following: • Reduction of the U.S. federal corporate tax rate from 35% to 21% • Requiring a transition tax on certain unrepatriated earnings of foreign subsidiaries • Bonus depreciation that will allow for full expensing of qualified property • Elimination of the corporate alternative minimum tax • The repeal of the domestic production activity deduction • Limitations on the deductibility of certain executive compensation • Limitations on net operating losses generated after December 31, 2017 In addition, beginning in 2018, the Tax Legislation includes a global intangible low-taxed The SEC staff issued SAB 118, which provides guidance on accounting for the tax effects of the Tax Legislation. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Legislation enactment date for companies to complete the accounting under ASC 740. The Company has completed its accounting for the tax effects of the Tax Legislation. In 2018, the Company recorded a tax benefit of $650, and in 2017, the Company recorded a tax provision of $2,187, relating to the revaluation of deferred tax assets and transition tax. Valuation allowances are established when necessary to reduce deferred tax assets to amounts which are more likely than not to be realized. As such, valuation allowances of $3,093 and $7,258 have been established at December 31, 2018 and December 31, 2017, respectively, against a portion of the deferred tax assets. As of December 31, 2018, the Company has U.S. federal net operating loss carryforwards of $9,973 that will expire in years 2026 through 2037. In addition, the Company has U.S. federal net operating loss carryforwards of $1,337 that will carryforward indefinitely. As of December 31, 2018, the Company has U.S. state net operating loss carryforwards of $41,844 that will expire in the years 2022 through 2038. As of December 31, 2018, the Company has foreign net operating loss carryforwards of $13,754 that will carryfoward indefinitely. As of December 31, 2018, the Company has research tax credit carryforwards of $6,364 that will expire in years 2029 through 2038. U.S. income taxes have not been provided on the undistributed earnings of the Company’s foreign subsidiaries. It is not practicable to estimate the amount of tax that might be payable. The Company’s intention is to indefinitely reinvest earnings of its foreign subsidiaries outside of the U.S. The Company evaluates the need for deferred tax asset valuation allowances based on a more likely than not standard. The ability to realize deferred tax assets depends on the ability to generate sufficient taxable income within the carryback or carryforward periods provided for in the tax law for each applicable tax jurisdiction. The assessment regarding whether a valuation allowance is required or should be adjusted also considers all available positive and negative evidence. It is difficult to conclude a valuation allowance is not required when there is significant objective and verifiable negative evidence, such as cumulative losses in recent years. The Company utilizes a rolling three-years of actual results as the primary measure of cumulative losses in recent years. On a rolling three-years, the Company’s consolidated U.S. operations are in a cumulative income position. However, one U.S. entity (“Entity”) is in a three-year cumulative loss position. The Company has established a valuation allowance on the Entity’s separate state deferred tax assets. The Company’s foreign operations are in three-year cumulative loss position. Future taxable income exclusive of reversing temporary differences and carryforwards is one source of taxable income that may be available under the tax law to realize a tax benefit for deductible temporary differences and carryforwards. Beginning in 2017 the company began a restructuring plan, which was finalized in 2018. The efforts under this plan have led the Company to achieve operational excellence and a reduction in complexities which resulted in current year positive earnings within its foreign subsidiary. The changes within the operations are projected to generate future taxable earnings. The Company considers the current year and future earnings to be objectively verifiable evidence which will allow the Company to fully utilize its foreign deferred tax assets. The Company believes this positive evidence outweighs the negative evidence of its foreign subsidiaries’ cumulative three-year loss position, resulting in a release of allowance related to foreign deferred tax assets. The Company will continue to regularly assess the realizability of our deferred tax assets. Changes in historical earnings performance and future earnings projections, among other factors, may cause the Company to adjust its valuation allowance, which would impact the Company’s income tax expense in the period the Company determines that these factors have changed. As of December 31, 2018, the Company has $1,087 of unrecognized tax benefits, which was recorded net against deferred tax assets in the accompanying consolidated balance sheet. The Company’s unrecognized tax benefits are summarized as follows: Year Ended December 31, 2018 2017 2016 Opening balance $ 1,591 $ 1,591 $ 1,986 Reductions based on tax positions related to the current year — — — Additions for tax positions of prior years — — — Reductions for tax positions of prior years (415 ) — (60 ) Reductions for expiration of statute of limitations (88 ) — (335 ) $ 1,087 $ 1,591 $ 1,591 The unrecognized tax benefits if recognized, would favorably impact the Company’s effective tax rate. The Company’s policy is to recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in the provision for income taxes. There were no interest and penalties recorded in 2018, 2017 and 2016 and no interest and penalties accrued at December 31, 2018 and 2017. During the year ended December 31, 2018, the Internal Revenue Service (“IRS”) completed its examination of the Company’s 2015 U.S. federal income tax return. No material adjustments were recorded to the Company’s consolidated financial statements as a result of the examination. The effective tax rate differs from the statutory federal income tax rate for the following reasons: Year Ended December 31, 2018 2017 2016 Statutory federal rate 21.00 % 35.00 % 35.00 % State income taxes—net of federal tax benefit (6.07 %) 2.43 % 1.73 % Foreign rate differential 19.02 % 2.85 % (3.29 %) Acquisition expenses (9.61 %) — — Goodwill disposal — 11.76 % — Life insurance 5.19 % — — Officer compensation (10.43 %) 4.26 % Stock-based compensation (5.16 %) 6.18 % — Tax credits 11.46 % (4.62 %) 7.02 % Tax legislation 12.22 % 8.50 % — Valuation allowances 29.03 % 5.94 % (21.71 %) Uncertain tax positions 9.08 % — — Other reconciling items, net 1.87 % 3.32 % (1.22 %) Effective tax rate 77.60 % 75.62 % 17.53 % For the years ended December 31, 2018, 2017 and 2016, the Company had no individually significant other reconciling items. |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Preferred Stock | 16. Preferred Stock Preferred stock is as follows: Preferred Stock Liquidation Value Preferred Stock Issuance Costs Net Total Balance at January 1, 2016 $ 57,168 $ (845 ) $ 56,323 Accrued dividend 3,508 — 3,508 Amortization of preferred stock issuance costs — 185 185 Balance at December 31, 2016 60,676 (660 ) 60,016 Accrued dividend 3,723 — 3,723 Amortization of preferred stock issuance costs — 184 184 Balance at December 31, 2017 64,399 (476 ) 63,923 Accrued dividend 2,120 — 2,120 Amortization of preferred stock issuance costs — 183 183 Balance at December 31, 2018 $ 66,519 $ (293 ) $ 66,226 On June 12, 2013, the Company and WSHP Biologics Holdings, LLC, an affiliate of Water Street Healthcare Partners, a leading healthcare-focused private equity firm (“Water Street”), entered into an investment agreement. Pursuant to the terms of the investment agreement, the Company issued $50,000 of convertible preferred equity to Water Street in a private placement which closed on July 16, 2013, with preferred stock issuance costs of $1,290. The preferred stock accrues dividends at a rate of 6% per annum. To the extent dividends are not paid in cash in any quarter, the dividends which have accrued on each outstanding share of preferred stock during such three-month period will accumulate until paid in cash or converted to common stock. The Preferred Stock will be convertible at the election of the holders into shares of the Company’s common stock at an initial conversion price of $4.39 per share which would result in a conversion ratio of approximately 228 shares of common stock for each share of Preferred Stock. The Preferred Stock is convertible at the election of the Company five years after its issuance or at any time if the Company’s common stock closes at or above $7.98 per share for at least 20 consecutive trading days. The Company may, upon 30 days’ notice, redeem the Preferred Stock, in whole or in part, five years after its issuance at the initial liquidation preference of $1,000 per share of the Preferred Stock plus an amount per share equal to accrued but unpaid dividends (collectively, the “Liquidation Value”). The holders of the Preferred Stock may require the Company to redeem their Preferred Stock, in whole or in part, at the Liquidation Value seven years after its issuance or upon the occurrence of a change of control. On August 1, 2018, the Company and WSHP Biologics Holdings, LLC, a related party, entered into an Amended and Restated Certificate of Designation of Series A Convertible Preferred Stock of RTI Surgical, Inc. (the “Amended and Restated Certificate of Designation”). Pursuant to the Amended and Restated Certificate of Designation: (1) dividends on the Series A Preferred Stock will not accrue after July 16, 2018 (in the event of a default by the Company, dividends will begin accruing and will continue to accrue until the default is cured); (2) the Company may not force a redemption of the Series A Preferred Stock prior to July 16, 2020; and (3) the holders of the Series A Preferred Stock may not convert the Series A Preferred Stock into common stock prior to July 16, 2021 (with certain exceptions). The Company evaluated and concluded on a qualitative basis the amendment qualifies as modification accounting to the preferred shares, which did not result in a change in the valuation of the shares. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | 17. Stockholders’ Equity Preferred Stock Common Stock |
Executive Transition Costs
Executive Transition Costs | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Executive Transition Costs | 18. Executive Transition Costs The Company recorded Chief Executive Officer retirement and transition costs related to the retirement of our former Chief Executive Officer pursuant to the Executive Transition Agreement dated August 29, 2012 (as amended and extended to date), which resulted in $4,404 of expenses for the year ended December 31, 2016. The total Chief Executive Officer retirement and transition costs are expected to be paid in full in the first quarter of 2019. In addition, the Company recorded executive transition costs of $2,781 as a result of hiring a new Chief Executive Officer and Chief Financial and Administrative Officer for the year ended December 31, 2017, separately disclosed on the Consolidated Statements of Comprehensive (Loss) Income. The total executive transition costs of which $1,169 is cash basis was paid in full in 2018. The following table includes a rollforward of executive transition costs included in accrued expenses, see Note 13. Accrued executive transition costs at January 1, 2016 $ — Executive transition costs accrued in 2016 4,404 Stock-based compensation (1,535 ) Cash payments (463 ) Accrued executive transition costs at December 31, 2016 2,406 Executive transition costs accrued in 2017 2,781 Stock-based compensation (1,612 ) Cash payments (1,275 ) Accrued executive transition costs at December 31, 2017 2,300 Cash payments (2,257 ) Accrued executive transition costs at December 31, 2018 $ 43 |
Severance and Restructuring Cos
Severance and Restructuring Costs | 12 Months Ended |
Dec. 31, 2018 | |
Employee Severance [Member] | |
Severance and Restructuring Costs | 19. Severance and Restructuring Costs The Company recorded severance and restructuring costs related to the reduction of our organizational structure which resulted in $2,146 of expenses for the year ended December 31, 2016. The total severance and restructuring costs were paid in full in the first quarter of 2018. Severance and restructuring payments were made over periods ranging from one month to twelve months and did not have a material impact on cash flows of the Company in any quarterly period. The Company recorded severance and restructuring costs related to the reduction of our organizational structure which resulted in $12,173 of expenses for the year ended December 31, 2017. The total severance and restructuring costs were paid in full in the fourth quarter of 2018. Severance and restructuring payments were made over periods ranging from one month to twelve months and did not have a material impact on cash flows of the Company in any quarterly period. The Company recorded severance and restructuring costs related to the reduction of our organizational structure which resulted in $2,280 of expenses for the year ended December 31, 2018. The total severance and restructuring costs are expected to be paid in full by the fourth quarter of 2019. Severance and restructuring payments are made over periods ranging from one month to twelve months and are not expected to have a material impact on cash flows of the Company in any quarterly period. The following table includes a rollforward of severance and restructuring costs included in accrued expenses, see Note 13. Accrued severance and restructuring charges at January 1, 2016 $ 865 Severance and restructuring expenses accrued in 2016 2,146 Severance and restructuring cash payments (1,866 ) Asset abandonments (640 ) Accrued severance and restructuring charges at December 31, 2016 505 Severance and restructuring expenses accrued in 2017 12,173 Severance and restructuring cash payments (8,246 ) Stock based compensation (1,153 ) Accrued severance and restructuring charges at December 31, 2017 3,279 Severance and restructuring expenses accrued in 2018 2,280 Severance and restructuring cash payments (4,628 ) Accrued severance and restructuring charges at December 31, 2018 $ 931 |
Retirement Benefits
Retirement Benefits | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Retirement Benefits | 20. Retirement Benefits The Company has a qualified 401(k) plan available to all U.S. employees who meet certain eligibility requirements. The 401(k) plan allows each employee to contribute up to the annual maximum allowed under the Internal Revenue Code. The Company has the discretion to make matching contributions up to 6% of the employee’s earnings. For the years ended December 31, 2018, 2017 and 2016, the amounts expensed under the plan were $2,757, $3,036 and $3,094, respectively. |
Concentrations of Risk
Concentrations of Risk | 12 Months Ended |
Dec. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Risk | 21. Concentrations of Risk Distribution Year Ended 2018 2017 2016 Percent of revenues derived from: Distributor Zimmer 21 % 17 % 16 % Medtronic 8 % 9 % 9 % Synthes 5 % 4 % 4 % The Company’s distribution agreements are subject to termination by either party for a variety of causes. No assurance can be given that such distribution agreements will be renewed beyond their expiration dates, continue in their current form or at similar rate structures. Any termination or interruption in the distribution of the Company’s implants through one of its major distributors could have a material adverse effect on the Company’s operations. Tissue Supply |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 22. Commitments and Contingencies Agreement to acquire Paradigm ® ® Under the terms of the agreement, the Company will pay $100,000 in cash and issue 10,729,614 shares of RTI common stock at closing, and revenue based earnout consideration of up to $150,000 in a combination of cash and RTI common stock. The shares of RTI stock to be issued at closing were valued based on the volume weighted average closing trading price for the five trading days prior to the date of execution of the definitive agreement, representing $50,000 of value. RTI intends to fund the cash portion of the consideration with approximately $100,000 in new, fully-committed debt financing. The Company has not completed its preliminary purchase price allocation. Acquisition of Zyga ® Distribution Agreement with A&E Distribution Agreement with Medtronic non-exclusive 12-month non-renewal Distribution Agreement with Zimmer Dental Inc. Distribution Agreement with Davol non-refundable non-refundable The Company’s aforementioned revenue recognition methods related to the Zimmer and Davol distribution agreements do not result in the deferral of revenue less than amounts that would be refundable in the event the agreements were to be terminated in future periods. Additionally, the Company evaluates the appropriateness of the aforementioned revenue recognition methods on an ongoing basis. Leases non-cancelable Future minimum lease commitments under non-cancelable Operating Leases 2019 $ 1,374 2020 806 2021 276 2022 162 2023 166 2024 and beyond 882 $ 3,666 |
Legal and Regulatory Actions
Legal and Regulatory Actions | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal and Regulatory Actions | 23. Legal and Regulatory Actions The Company is, from time to time, involved in litigation relating to claims arising out of its operations in the ordinary course of business. The Company believes that none of these claims that were outstanding as of December 31, 2018 will have a material adverse impact on its financial position or results of operations. The Company’s accounting policy is to accrue for legal costs as they are incurred. Coloplast— co-defendant In addition to claims made directly against the Company, Coloplast, a distributor of TSM’s and certain allografts processed and private labeled for them under a contract with the Company, has also been named as a defendant in individual TSM cases in various federal and state courts. Coloplast requested that the Company indemnify or defend Coloplast in those claims which allege injuries caused by the Company’s allograft implants, and on April 24, 2014, Coloplast sued RTI Surgical, Inc. in the Fourth Judicial District of Minnesota for declaratory relief and breach of contract. On December 11, 2014, Coloplast entered into a settlement agreement with RTI Surgical, Inc. and Tutogen Medical, Inc. (the “Company Parties”) resulting in dismissal of the case. Under the terms of the settlement agreement, the Company Parties are responsible for the defense and indemnification of two categories of present and future claims: (1) tissue only (where Coloplast is solely the distributor of Company processed allograft tissue and no Coloplast-manufactured or distributed synthetic mesh is identified) (“Tissue Only Claims”), and (2) tissue plus non-Coloplast (“Tissue-Non-Coloplast Tissue-Non-Coloplast Based on the current information available to the Company, the impact that current or any future TSM litigation may have on the Company cannot be reasonably estimated. LifeNet— map3 ® — ® ® on-site ® non-compliance. ® ® During the second quarter of 2018 the Company, based on its ongoing dialogue with the FDA and the continued negative impact of the warning letter on map3 ® ® ® write-off During the third quarter of 2018, the Company decided to stop procurement, manufacturing and distributing its map3 ® ® |
Segment Data
Segment Data | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Data | 24. Segment Data The Company distributes human tissue, bovine and porcine animal tissue, metal and synthetic implants through various distribution channels. The Company operates in one reportable segment composed of four lines of business. Effective January 1, 2018, the reporting of the Company’s lines of business is composed of four franchises or lines of business: spine; sports; OEM and international. The Company’s previous lines of business were composed of: spine; sports medicine and orthopedics; surgical specialties; cardiothoracic; international; and OEM. Effective January 1, 2018, the other revenues category is included in the OEM line of business. The prior year comparable revenue information has been restated to conform to the current year presentation. The Company believes that the change in the reporting of its lines of business is aligned with the Company’s focused strategy of reducing complexity and better understanding of its lines of business. Discrete financial information is not available for these four lines of business. The following table presents revenues from these four franchises and their respective percentages of the Company’s total revenues for the years ended December 31, 2018, 2017 and 2016: Year Ended December 31, 2018 2017 2016 (In thousands) Revenues: Spine $ 79,687 28.4 % $ 77,514 27.7 % $ 73,907 27.1 % Sports 54,533 19.4 % 57,211 20.5 % 54,609 20.0 % OEM 120,682 43.0 % 110,710 39.6 % 108,093 39.6 % International 25,953 9.2 % 25,964 9.3 % 25,109 9.2 % Cardiothoracic — 0.0 % 8,164 2.9 % 11,147 4.1 % Total revenues $ 280,855 100.0 % $ 279,563 100.0 % $ 272,865 100.0 % The following table presents property, plant and equipment—net by significant geographic location: December 31, 2018 2017 Property, plant and equipment—net: Domestic $ 72,501 $ 73,363 International 5,453 6,201 Total $ 77,954 $ 79,564 |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | 25. Quarterly Results of Operations (Unaudited) The following tables sets forth the results of operations for the periods indicated (The quarterly results of operations for the year ended December 31, 2018 reflects our adoption of Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2014-09, March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 Quarter Ended: Revenues $ 69,890 $ 70,685 $ 69,064 $ 71,216 Gross profit 33,682 30,040 37,655 38,746 Net (loss) income applicable to common shares (1,931 ) (6,441 ) 2,931 2,071 Net (loss) income per common share: Basic $ (0.03 ) $ (0.10 ) $ 0.05 $ 0.03 Diluted $ (0.03 ) $ (0.10 ) $ 0.04 $ 0.03 March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 Quarter Ended: Revenues $ 69,939 $ 72,120 $ 66,688 $ 70,816 Gross profit 35,779 36,963 33,511 36,268 Net (loss) income applicable to common shares (2,782 ) (2,613 ) 16,548 (8,604 ) Net (loss) income per common share: Basic $ (0.05 ) $ (0.04 ) $ 0.28 $ (0.14 ) Diluted $ (0.05 ) $ (0.04 ) $ 0.22 $ (0.14 ) |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 26. Subsequent Events The Company evaluated subsequent events as of the issuance date of the consolidated financial statements as defined by FASB ASC 855 Subsequent Events |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | RTI SURGICAL, INC. AND SUBSIDIARIES Schedule II Valuation and Qualifying Accounts Years Ended December 31, 2018, 2017 and 2016 (Dollars in thousands) Description Balance at Beginning of Period Charged to Costs and Expenses Deductions- Write-offs, Payments Balance at End of Period For the year ended December 31, 2018: Allowance for doubtful accounts $ 1,471 $ 1,085 $ 176 $ 2,380 Allowance for product returns 1,110 110 703 517 Allowance for excess and obsolescence 8,102 15,122 7,871 15,353 Deferred tax asset valuation allowance 7,258 2,368 6,533 3,093 For the year ended December 31, 2017: Allowance for doubtful accounts 1,728 418 675 1,471 Allowance for product returns 629 528 47 1,110 Allowance for excess and obsolescence 14,798 5,066 11,762 8,102 Deferred tax asset valuation allowance 4,916 1,668 (674 ) 7,258 For the year ended December 31, 2016: Allowance for doubtful accounts 1,454 645 371 1,728 Allowance for product returns 714 250 335 629 Allowance for excess and obsolescence 7,083 13,880 6,165 14,798 Deferred tax asset valuation allowance 1,106 3,833 23 4,916 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation RTIDS is a taxable not-for-profit |
Use of Estimates | Use of Estimates |
Foreign Currency Translation | Foreign Currency Translation |
Fair Value of Financial Instruments | Fair Value of Financial Instruments |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Accounts Receivable Allowances | Accounts Receivable Allowances |
Inventories | Inventories first-in, first-out Non-tissue |
Surgical Instruments | Surgical Instruments |
Property, Plant and Equipment | Property, Plant and Equipment Buildings 25 to 40 years Building improvements and leasehold improvements 8 to 40 years Processing equipment 7 to 10 years Office equipment, furniture and fixtures 5 to 7 years Computer hardware and software 3 to 7 years Surgical instruments 3 to 5 years |
Software Costs | Software Costs |
Debt Issuance Costs | Debt Issuance Costs— |
Long-Lived Assets | Long-Lived Assets As further discussed in Note 23, during the second quarter of 2018, we recorded an impairment of $4,515 related to our map3 ® |
Goodwill | Goodwill Goodwill and Other Intangible Assets year-end Goodwill is tested for impairment annually by comparing the fair value of the reporting unit to its carrying amount, including goodwill. We evaluate our goodwill for impairment by utilizing an income approach and a market approach. The conclusion from these two approaches are generally weighted equally and then adjusted to incorporate a control premium or acquisition premium that reflects the additional amount a buyer is willing to pay for elements of control and for a premium that reflects the buyer’s perception of its ability to add value through synergies. In general, the income approach employs a discounted cash flow model that considers: 1) assumptions that marketplace participants would use in their estimates of fair value, including the cash flow period, terminal values based on a terminal growth rate and the discount rate; 2) current period actual results; and 3) projected results for future periods that have been prepared and approved by senior management of the Company. The forecasted cash flows do not include synergies that a marketplace participant would be expecting to achieve. The market approach employs market multiples from guideline public companies operating in our industry. Estimates of fair value are derived by applying multiples based on revenue and earnings before interest, taxes, depreciation and amortization (“EBITDA”) adjusted for size and performance metrics relative to peer companies. A control premium was included in determining the fair value under this approach. Both approaches used in the analysis have a degree of uncertainty. Potential events or changes in circumstances which could impact the key assumptions used in our goodwill impairment evaluation are as follows: • Change in peer group or performance of peer group companies • Change in the Company’s markets and estimates of future operating performance • Change in the Company’s estimated market cost of capital • Change in implied control premiums related to acquisitions in the medical device industry Goodwill represents the excess of purchase price over fair value of tangible net assets of acquired businesses at the acquisition date, after amounts allocated to other identifiable intangible assets. Factors that contribute to the recognition of goodwill include securing synergies that are specific to our business, not available to other market participants, and are expected to increase revenues and profits; acquisition of a talented workforce; cost savings opportunities; the strategic benefit of expanding our presence in core and adjacent markets; and diversifying our product portfolio. |
Other Intangible Assets | Other Intangible Assets Other intangible assets are tested for impairment whenever events or circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. The recoverability test is described in the Company’s accounting policy for long-lived assets set forth above. |
Revenue Recognition | Revenue Recognition The Company permits returns of implants in accordance with the terms of contractual agreements with customers if the implant is returned in a timely manner, in unopened packaging, and from the normal channels of distribution. Allowances for returns are provided based upon analysis of the Company’s historical patterns of returns matched against the revenues from which they originated. The Company records estimated implant returns, discounts, rebates and other distribution incentives as a reduction of revenue in the same period revenue is recognized. Estimates of implant returns are recorded for anticipated implant returns based on historical distributions and returns information. Estimates of discounts, rebates and other distribution incentives are recorded based on contractual terms, historical experience and trend analysis. Other revenues consist of service processing, tissue recovery fees, biomedical laboratory fees, recognition of previously deferred revenues, shipping fees, distribution of reproductions of our allografts to distributors for demonstration purposes and restocking fees which is included in revenues. |
Stock-Based Compensation Plans | Stock-Based Compensation Plans Accounting for Stock Compensation pre-vesting |
Research and Development Costs | Research and Development Costs |
Income Taxes | Income Taxes year-end |
Treasury Stock | Treasury Stock |
Earnings Per Share | Earnings Per Share Year Ended December 31, 2018 2017 2016 Weighted average basic shares 63,521,703 59,684,289 58,236,745 Effect of dilutive securities: Stock options — 915,663 — Weighted average diluted shares 63,521,703 60,599,952 58,236,745 Options to purchase 4,295,744 shares of common stock at prices ranging from $2.69 to $5.23 per share which were outstanding as of December 31, 2018, were not included in the computation of diluted EPS because dilutive shares are not factored into the calculation of EPS when a loss applicable to common shares is reported as they would be anti-dilutive. Options to purchase 4,692,037 shares of common stock at prices ranging from $2.69 to $8.20 per share which were outstanding as of December 31, 2017, were included in the computation of diluted EPS because dilutive shares are factored into the calculation of EPS when income applicable to common shares is reported. Options to purchase 5,764,607 shares of common stock at prices ranging from $2.69 to $9.57 per share which were outstanding as of December 31, 2016, were not included in the computation of diluted EPS because dilutive shares are not factored into the calculation of EPS when a loss applicable to common shares is reported as they would be anti-dilutive. For the years ended December 31, 2018, 2017 and 2016, 50,000 shares of convertible preferred stock and accrued but unpaid dividends were anti-dilutive on an as if-converted |
Fair Value Measurement | Fair Value Measurement 2018-13, “ Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. ” 2018-13 2018-13 |
Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets | Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets 2017-05, “Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets” 610-20): 2017-05 2017-05 2017-05 2017-05 |
Business Combinations - Clarifying the Definition of a Business | Business Combinations—Clarifying the Definition of a Business No. 2017-01, Business Combinations—Clarifying the Definition of a Business” 2017-01 2017-01 2017-01 2017-01 |
Leases | Leases 2016-02, Leases (Topic 842) “ Leases (Topic 840). ” 2016-02 right-of-use |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Adoption Impact The Company identified three contracts which previously resulted in revenue recognition occurring at the time of shipment; however, under the new revenue recognition standard, the Company is required to recognize revenue over time. The assessment of our January 1, 2018, consolidated balance sheet under ASC Topic 606 resulted in a cumulative-effect adjustment to opening retained earnings, unbilled accounts receivable and costs incurred for inventory. The effects of the adoption under ASC Topic 606 are outlined in the following table: Year Ended December 31, 2017 Impact January 1, 2018 Accounts receivable $ 35,081 $ 3,243 $ 38,324 Inventories—net 111,927 (995 ) 110,932 Accrued expenses — 1,110 1,110 Deferred tax assets 9,575 (266 ) 9,309 Accumulated deficit (237,066 ) 872 (236,194 ) The impact of adoption of Topic 606 to the Company’s consolidated balance sheets and statements of comprehensive (loss) income for the year ended December 31, 2018, was as follows: Year Ended December 31, 2018 As Reported Excluding Impact of Topic 606 Accounts receivable $ 48,351 $ 41,498 Inventories—net 107,471 111,169 Accrued expenses 24,683 24,166 Deferred tax assets 17,510 16,935 Accumulated deficit (237,444 ) (240,657 ) Year Ended December 31, 2018 As Reported Excluding Impact of Topic 606 Total revenues $ 280,855 $ 277,436 Cost of processing and distribution 140,732 138,828 Income tax benefit 4,331 4,807 Net loss (3,370 ) (4,409 ) Disaggregation of revenue The Company operates in one reportable segment composed of four lines of business. Effective January 1, 2018, the reporting of the Company’s lines of business are composed of four franchises or lines of business: spine; sports; OEM and international. The following table presents revenues from these four franchises for the year ended December 31, 2018: Year Ended December 31, 2018 Revenues: Spine $ 79,687 Sports 54,533 OEM 120,682 International 25,953 Total revenues from contracts with customers $ 280,855 The following table presents revenues recognized at a point in time and over time for the year ended December 31, 2018: Year Ended December 31, 2018 Revenue recognized at a point in time $ 240,112 Revenue recognized over time 40,743 Total revenues from contracts with customers $ 280,855 Performance Obligations The Company’s performance obligations consist mainly of transferring control of implants identified in the contracts. Some of the Company’s contracts offer assurance-type warranties in connection with the sale of a product to a customer. Assurance-type warranties provide a customer with assurance that the related product will function as the parties intended because it complies with agreed-upon specifications. Such warranties do not represent a separate performance obligation and are not material to the consolidated financial statements. When Performance Obligations Are Satisfied The Company typically transfers control at a point in time upon shipment or delivery of the implants for direct sales, or upon implantation for sales of consigned inventory. The customer is able to direct the use of, and obtain substantially all of the benefits from, the implant at the time the implant is shipped, delivered, or implanted, respectively based on the terms of the contract. For performance obligations related to the aforementioned three contracts with exclusively built inventory clauses, the Company typically satisfies its performance obligations evenly over the contract term as inventory is built. Such exclusively manufactured inventory has no alternative use and the Company has an enforceable right to payment for performance to date. The Company uses the input method to measure the manufacturing activities completed to date, which depicts the progress of the Company’s performance obligation of transferring control of exclusively built inventory. For the contracts with upfront and annual exclusivity fees, revenue related to those fees is recognized over the contract term following a consistent method of measuring progress towards satisfaction of the performance obligation. The Company uses the method and measure of progress that best depicts the transfer of control to the customer of the goods or services to date relative to the remaining goods or services promised under the contract. Significant Payment Terms The contract with the customer states the final terms of the sale, including the description, quantity, and price of each implant distributed. Payment for OEM contracts is typically due in full within 30 days of delivery or the start of the contract term. For the remaining lines of business, payment terms are typically due in full within 30 to 60 days of delivery. The Company performs a review of each specific customer’s credit worthiness and ability to pay prior to acceptance as a customer. Further, the Company performs periodic reviews of its customers’ creditworthiness prospectively. Since the customer agrees to a stated price in the contract that does not vary over the contract, the majority of contracts do not contain variable consideration. Nature of Goods and Services The Company distributes biologic, metal and synthetic implants. In some instances, the Company also enters into contracts with customers for exclusively manufactured inventory based on customer specifications. Returns In the normal course of business, the Company accepts product returns. The amount of consideration the Company ultimately receives varies depending upon the return terms that the Company may offer, which are accounted for as variable consideration when estimating the amount of revenue to recognize. The Company establishes provisions for estimated returns based on historical experience. The amount recorded on the Company’s balance sheets for product return allowance was $517 and $1,110 at December 31, 2018 and 2017, respectively. Liabilities for return allowances are included in “Accrued expenses”. Critical Accounting Estimates Estimates are used to determine the amount of variable consideration in contracts, and the measure of progress for contracts where revenue is recognized over time. The Company reviews and updates these estimates regularly. Our contracts generally do not include multiple performance obligations, and accordingly do not generally require estimates of the standalone selling price for each performance obligation. Contract Asset and Liability The opening and closing balances of the Company’s accounts receivable, contract asset and current and long-term contract liability are as follows: Accounts Receivable Contract Liability (Current) Contract Liability (Long- Term) Opening 1/1/2018 $ 38,324 $ 5,978 $ 3,741 Closing 12/31/2018 48,351 5,425 744 Increase/(decrease) 10,027 (553 ) (2,997 ) Contract liabilities consist primarily of the return allowance described above, and of deferred revenue arising from upfront and annual exclusivity fees. The difference between the opening and closing balances of the Company’s contract liabilities primarily results from the Company’s performance of the Company’s contractual obligations over time. The Company recognizes sales commissions as incurred because the amortization period is less than one year. The Company does not incur other incremental costs relating to obtaining a contract with a customer, and therefore, does not have material contract assets, or impairment losses associated therewith. Revenue recognized for the year ended December 31, 2018, from amounts included in contract liabilities at the beginning of the period was $4,958. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Property, Plant, and Equipment are Stated at Cost Less Accumulated Depreciation | Depreciation is computed on the straight-line method over the following estimated useful lives of the assets: Buildings 25 to 40 years Building improvements and leasehold improvements 8 to 40 years Processing equipment 7 to 10 years Office equipment, furniture and fixtures 5 to 7 years Computer hardware and software 3 to 7 years Surgical instruments 3 to 5 years |
Reconciliation of Common Stock used in Calculation of Basic and Diluted Earnings Per Share | A reconciliation of the number of common shares used in the calculation of basic and diluted EPS is presented below: Year Ended December 31, 2018 2017 2016 Weighted average basic shares 63,521,703 59,684,289 58,236,745 Effect of dilutive securities: Stock options — 915,663 — Weighted average diluted shares 63,521,703 60,599,952 58,236,745 |
Recently Issued Accounting St_2
Recently Issued Accounting Standards (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue Recognition from Four Franchises | The following table presents revenues from these four franchises for the year ended December 31, 2018: Year Ended December 31, 2018 Revenues: Spine $ 79,687 Sports 54,533 OEM 120,682 International 25,953 Total revenues from contracts with customers $ 280,855 |
Revenues Recognized at a Point in Time and Over Time | The following table presents revenues recognized at a point in time and over time for the year ended December 31, 2018: Year Ended December 31, 2018 Revenue recognized at a point in time $ 240,112 Revenue recognized over time 40,743 Total revenues from contracts with customers $ 280,855 |
Contract with Customer, Asset and Liability | The opening and closing balances of the Company’s accounts receivable, contract asset and current and long-term contract liability are as follows: Accounts Receivable Contract Liability (Current) Contract Liability (Long- Term) Opening 1/1/2018 $ 38,324 $ 5,978 $ 3,741 Closing 12/31/2018 48,351 5,425 744 Increase/(decrease) 10,027 (553 ) (2,997 ) |
Accounting Standards Update 2014-09 [Member] | |
Schedule of Prior Period Adjustments | The effects of the adoption under ASC Topic 606 are outlined in the following table: Year Ended December 31, 2017 Impact January 1, 2018 Accounts receivable $ 35,081 $ 3,243 $ 38,324 Inventories—net 111,927 (995 ) 110,932 Accrued expenses — 1,110 1,110 Deferred tax assets 9,575 (266 ) 9,309 Accumulated deficit (237,066 ) 872 (236,194 ) |
Impact of Adoption of Topic 606 to Consolidated Balance Sheets and Consolidated Statements of Comprehensive (Loss) Income | The impact of adoption of Topic 606 to the Company’s consolidated balance sheets and statements of comprehensive (loss) income for the year ended December 31, 2018, was as follows: Year Ended December 31, 2018 As Reported Excluding Impact of Topic 606 Accounts receivable $ 48,351 $ 41,498 Inventories—net 107,471 111,169 Accrued expenses 24,683 24,166 Deferred tax assets 17,510 16,935 Accumulated deficit (237,444 ) (240,657 ) Year Ended December 31, 2018 As Reported Excluding Impact of Topic 606 Total revenues $ 280,855 $ 277,436 Cost of processing and distribution 140,732 138,828 Income tax benefit 4,331 4,807 Net loss (3,370 ) (4,409 ) |
Acquisition of Zyga Technolog_2
Acquisition of Zyga Technology, Inc. (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisition Purchase Price | The purchase price was financed as follows: (In thousands) Cash proceeds from revolving credit facility $ 18,000 Cash from RTI Surgical 3,000 Total purchase price $ 21,000 |
Summary of Allocation of Total Consideration to Tangible and Intangible Assets and Liabilities | The table below represents an allocation of the total consideration to Zyga’s tangible and intangible assets and liabilities fair values as of January 4, 2018. During the three months ended December 31, 2018, the Company made the following changes to the fair values of acquired assets and liabilities as a result of completing the valuation of acquired deferred tax assets: increased deferred tax assets by $3,066 and decreased goodwill by $3,066. (In thousands) Inventories $ 1,099 Accounts receivable 573 Other current assets 53 Property, plant and equipment 151 Other assets 26 Deferred tax assets 4,715 Current liabilities (947 ) Acquisition contingencies (4,986 ) Net tangible assets acquired 684 Other intangible assets 6,760 Goodwill 13,556 Total net assets acquired $ 21,000 |
Pro Forma Information of Company's Operations | The following unaudited pro forma information shows the results of the Company’s operations as though the acquisition had occurred as of January 1, 2017 (in thousands, except per share data): Year End 2018 2017 Revenues $ 4,809 $ 4,649 Net loss applicable to common shares (2,640 ) (4,239 ) Basic net loss per share (0.04 ) (0.07 ) Diluted net loss per share (0.04 ) (0.07 ) |
Cardiothoracic Closure Busine_2
Cardiothoracic Closure Business Divestiture (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Calculation of Gain of CT Business Divestiture | The calculation of the gain on the CT Business divestiture is as follows: Proceeds from cardiothoracic closure business divestiture $ 51,000 Inventories—net (2,893 ) Property, plant and equipment—net (1,299 ) Goodwill (8,645 ) Other intangible assets—net (280 ) Cardiothoracic closure business divestiture expenses (3,793 ) Gain on cardiothoracic closure business divestiture $ 34,090 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Weighted-Average Assumptions Used to Determine Fair Value of Options | The following weighted-average assumptions were used to determine the fair value of options under FASB ASC 718: Year Ended December 31, 2018 2017 2016 Expected term (years) 6.50 6.50 6.50 Risk free interest rate 2.75 % 2.26 % 1.85 % Volatility factor 43.74 % 47.39 % 45.57 % Dividend yield — — — |
Stock Options Outstanding, Exercisable and Available for Grant | Stock options outstanding, exercisable and available for grant at December 31, 2018, are summarized as follows: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding at January 1, 2018 4,692,037 $ 3.86 Granted 722,122 4.32 Exercised (352,015 ) 3.53 Forfeited or expired (766,400 ) 5.02 Outstanding at December 31, 2018 4,295,744 $ 3.76 5.73 $ 1,175 Vested or expected to vest at December 31, 2018 4,062,373 $ 3.74 5.58 $ 1,143 Exercisable at December 31, 2018 1,669,844 $ 3.65 3.54 $ 493 Available for grant at December 31, 2018 5,454,302 |
Stock-Based Compensation Recognized | For the years ended December 31, 2018, 2017 and 2016, the Company recognized stock-based compensation as follows: Year Ended December 31, 2018 2017 2016 Stock-based compensation: Costs of processing and distribution $ 132 $ 132 $ 140 Marketing, general and administrative 4,553 6,586 3,406 Research and development 60 44 44 Total $ 4,745 $ 6,762 $ 3,590 |
Other Information Concerning Stock Options | Other information concerning stock options are as follows: Year Ended December 31, 2018 2017 2016 Weighted average fair value of stock options granted $ 2.05 $ 1.66 $ 1.55 Aggregate intrinsic value of stock options exercised 349 2,786 12 |
Unvested Restricted Stock Awards | The following table summarizes information about unvested restricted stock awards as of December 31, 2018: Number of Shares Weighted Average Grant Date Fair Value Unvested at January 1, 2018 1,120,190 $ 4.15 Granted 827,214 4.29 Vested (592,705 ) 4.09 Forfeited (279,484 ) 4.13 Unvested at December 31, 2018 1,075,215 $ 4.29 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | Inventories by stage of completion are as follows: December 31, 2018 2017 Unprocessed tissue, raw materials and supplies $ 24,211 $ 22,071 Tissue and work in process 31,796 40,481 Implantable tissue and finished goods 51,464 49,375 $ 107,471 $ 111,927 |
Prepaid and Other Current Ass_2
Prepaid and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text Block [Abstract] | |
Schedule of Prepaid and Other Current Assets | Prepaid and Other Current Assets are as follows: December 31, 2018 2017 Income tax receivable $ 3,920 $ 9,825 Receivable for executive stock option exercise — 1,234 Prepaid expenses 4,127 3,521 Other 744 1,705 $ 8,791 $ 16,285 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Components of Property, Plant and Equipment | Property, plant and equipment are as follows: December 31, 2018 2017 Land $ 2,020 $ 2,020 Buildings and improvements 58,093 57,954 Processing equipment 42,599 44,137 Surgical instruments 24,070 21,256 Office equipment, furniture and fixtures 1,877 1,352 Computer equipment and software 18,873 19,332 Construction in process 8,934 5,980 156,466 152,031 Less accumulated depreciation (78,512 ) (72,467 ) $ 77,954 $ 79,564 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The change in the carrying amount of goodwill for the year ended December 31, 2018, is as follows: Year Ended 2018 2017 Balance at January 1 $ 46,242 $ 54,887 Goodwill acquired related to Zyga acquisition 13,556 — Goodwill disposed of related to sale of Cardiothoracic closure business — 8,645 Balance at December 31 $ 59,798 $ 46,242 |
Other Intangible Assets (Tables
Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Components of Other Intangible Assets | Other intangible assets are as follows: December 31, 2018 December 31, 2017 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Patents $ 16,092 $ 4,194 $ 11,373 $ 4,890 Acquired licensing rights 11,852 6,468 14,747 9,097 Marketing and procurement intangible assets 20,356 11,279 20,603 9,666 Total $ 48,300 $ 21,941 $ 46,723 $ 23,653 |
Estimates of Future Amortization Expense | At December 31, 2018, management’s estimates of future amortization expense for the next five years are as follows: Amortization Expense 2019 $ 4,200 2020 4,100 2021 4,100 2022 4,100 2023 1,800 |
Fair Value Information (Tables)
Fair Value Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Impairments of Long-Lived Assets and Related Post Impairment Fair Values | The following table summarizes impairments of long-lived assets and the related post impairment fair values of the corresponding assets for the year ended December 31, 2016 and 2018: Year Ended December 31, 2016 Impairment Fair Value Property, plant and equipment—net $ 4,717 $ 4,708 Other intangible assets—net 718 150 $ 5,435 $ 4,858 Year Ended December 31, 2018 Impairment Fair Value Property, plant and equipment—net $ 1,797 $ — Other intangible assets—net 2,718 — $ 4,515 $ — |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Accrued Expenses | Accrued expenses are as follows: December 31, 2018 2017 Accrued compensation $ 8,678 $ 8,257 Accrued severance and restructuring costs 931 3,279 Accrued executive transition costs 43 2,300 Accrued distributor commissions 3,907 3,889 Accrued donor recovery fees 4,088 4,144 Other 7,036 3,741 $ 24,683 $ 25,610 |
Short and Long-Term Obligatio_2
Short and Long-Term Obligations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Short and Long-Term Obligations | Short and long-term obligations are as follows: December 31, 2018 December 31, 2017 Term loan $ — $ 24,250 Revolving credit facility 50,000 22,500 Less unamortized debt issuance costs (927 ) (406 ) Total 49,073 46,344 Less current portion — (4,268 ) Long-term portion $ 49,073 $ 42,076 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Benefit (Provision) | The Company’s income tax benefit (provision) consists of the following components: Year Ended December 31, 2018 2017 2016 Current: Federal $ 1,305 $ (3,176 ) $ (150 ) State (110 ) (915 ) (92 ) International (376 ) — 456 Total current 819 (4,091 ) 214 Deferred: Federal 2,059 (14,340 ) 2,477 State (2,519 ) (1,022 ) 562 International 3,972 — (192 ) Total deferred 3,512 (15,362 ) 2,847 Total income tax benefit (provision) $ 4,331 $ (19,453 ) $ 3,061 |
Deferred Tax Assets and Liabilities | The Company’s deferred tax assets and liabilities consists of the following components: December 31, 2018 December 31, 2017 Deferred Income Tax Deferred Income Tax Assets Liabilities Assets Liabilities Accounts receivable $ 444 $ — $ 186 $ — Accrued liabilities 2,083 — 2,072 — Deferred compensation 1,372 — 1,783 — Fixed assets and intangibles — (5,862 ) — (7,370 ) Inventory 7,631 — 5,905 — Net operating losses 8,198 — 8,106 — Revenue 650 — 1,874 — Tax credits 6,087 — 4,387 — Other — — — (110 ) Valuation allowance (3,093 ) — (7,258 ) — Total $ 23,372 $ (5,862 ) $ 17,055 $ (7,480 ) |
Unrecognized Tax Benefits | The Company’s unrecognized tax benefits are summarized as follows: Year Ended December 31, 2018 2017 2016 Opening balance $ 1,591 $ 1,591 $ 1,986 Reductions based on tax positions related to the current year — — — Additions for tax positions of prior years — — — Reductions for tax positions of prior years (415 ) — (60 ) Reductions for expiration of statute of limitations (88 ) — (335 ) $ 1,087 $ 1,591 $ 1,591 |
Effective Tax Rate Differs from the Statutory Federal Income Tax Rate | The effective tax rate differs from the statutory federal income tax rate for the following reasons: Year Ended December 31, 2018 2017 2016 Statutory federal rate 21.00 % 35.00 % 35.00 % State income taxes—net of federal tax benefit (6.07 %) 2.43 % 1.73 % Foreign rate differential 19.02 % 2.85 % (3.29 %) Acquisition expenses (9.61 %) — — Goodwill disposal — 11.76 % — Life insurance 5.19 % — — Officer compensation (10.43 %) 4.26 % Stock-based compensation (5.16 %) 6.18 % — Tax credits 11.46 % (4.62 %) 7.02 % Tax legislation 12.22 % 8.50 % — Valuation allowances 29.03 % 5.94 % (21.71 %) Uncertain tax positions 9.08 % — — Other reconciling items, net 1.87 % 3.32 % (1.22 %) Effective tax rate 77.60 % 75.62 % 17.53 % |
Preferred Stock (Tables)
Preferred Stock (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of Preferred Stock | Preferred stock is as follows: Preferred Stock Liquidation Value Preferred Stock Issuance Costs Net Total Balance at January 1, 2016 $ 57,168 $ (845 ) $ 56,323 Accrued dividend 3,508 — 3,508 Amortization of preferred stock issuance costs — 185 185 Balance at December 31, 2016 60,676 (660 ) 60,016 Accrued dividend 3,723 — 3,723 Amortization of preferred stock issuance costs — 184 184 Balance at December 31, 2017 64,399 (476 ) 63,923 Accrued dividend 2,120 — 2,120 Amortization of preferred stock issuance costs — 183 183 Balance at December 31, 2018 $ 66,519 $ (293 ) $ 66,226 |
Severance and Restructuring C_2
Severance and Restructuring Costs (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Former Chief Executive Officer [Member] | |
Schedule of Restructuring Charges | The following table includes a rollforward of executive transition costs included in accrued expenses, see Note 13. Accrued executive transition costs at January 1, 2016 $ — Executive transition costs accrued in 2016 4,404 Stock-based compensation (1,535 ) Cash payments (463 ) Accrued executive transition costs at December 31, 2016 2,406 Executive transition costs accrued in 2017 2,781 Stock-based compensation (1,612 ) Cash payments (1,275 ) Accrued executive transition costs at December 31, 2017 2,300 Cash payments (2,257 ) Accrued executive transition costs at December 31, 2018 $ 43 |
Employee Severance [Member] | |
Schedule of Restructuring Charges | The following table includes a rollforward of severance and restructuring costs included in accrued expenses, see Note 13. Accrued severance and restructuring charges at January 1, 2016 $ 865 Severance and restructuring expenses accrued in 2016 2,146 Severance and restructuring cash payments (1,866 ) Asset abandonments (640 ) Accrued severance and restructuring charges at December 31, 2016 505 Severance and restructuring expenses accrued in 2017 12,173 Severance and restructuring cash payments (8,246 ) Stock based compensation (1,153 ) Accrued severance and restructuring charges at December 31, 2017 3,279 Severance and restructuring expenses accrued in 2018 2,280 Severance and restructuring cash payments (4,628 ) Accrued severance and restructuring charges at December 31, 2018 $ 931 |
Concentrations of Risk (Tables)
Concentrations of Risk (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
Schedule of Percentage of Total Revenues Derived from Company's Largest Distributors | The following table presents percentage of total revenues derived from the Company’s largest distributors: Year Ended 2018 2017 2016 Percent of revenues derived from: Distributor Zimmer 21 % 17 % 16 % Medtronic 8 % 9 % 9 % Synthes 5 % 4 % 4 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Lease Commitments under Non-Cancelable Operating Leases | Future minimum lease commitments under non-cancelable Operating Leases 2019 $ 1,374 2020 806 2021 276 2022 162 2023 166 2024 and beyond 882 $ 3,666 |
Segment Data (Tables)
Segment Data (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Revenues from Tissue Distribution and Other Revenues | The following table presents revenues from these four franchises and their respective percentages of the Company’s total revenues for the years ended December 31, 2018, 2017 and 2016: Year Ended December 31, 2018 2017 2016 (In thousands) Revenues: Spine $ 79,687 28.4 % $ 77,514 27.7 % $ 73,907 27.1 % Sports 54,533 19.4 % 57,211 20.5 % 54,609 20.0 % OEM 120,682 43.0 % 110,710 39.6 % 108,093 39.6 % International 25,953 9.2 % 25,964 9.3 % 25,109 9.2 % Cardiothoracic — 0.0 % 8,164 2.9 % 11,147 4.1 % Total revenues $ 280,855 100.0 % $ 279,563 100.0 % $ 272,865 100.0 % |
Schedule of Property, Plant and Equipment - Net by Significant Geographic Location | The following table presents property, plant and equipment—net by significant geographic location: December 31, 2018 2017 Property, plant and equipment—net: Domestic $ 72,501 $ 73,363 International 5,453 6,201 Total $ 77,954 $ 79,564 |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Results of Operations | The following tables sets forth the results of operations for the periods indicated (The quarterly results of operations for the year ended December 31, 2018 reflects our adoption of Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2014-09, March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 Quarter Ended: Revenues $ 69,890 $ 70,685 $ 69,064 $ 71,216 Gross profit 33,682 30,040 37,655 38,746 Net (loss) income applicable to common shares (1,931 ) (6,441 ) 2,931 2,071 Net (loss) income per common share: Basic $ (0.03 ) $ (0.10 ) $ 0.05 $ 0.03 Diluted $ (0.03 ) $ (0.10 ) $ 0.04 $ 0.03 March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 Quarter Ended: Revenues $ 69,939 $ 72,120 $ 66,688 $ 70,816 Gross profit 35,779 36,963 33,511 36,268 Net (loss) income applicable to common shares (2,782 ) (2,613 ) 16,548 (8,604 ) Net (loss) income per common share: Basic $ (0.05 ) $ (0.04 ) $ 0.28 $ (0.14 ) Diluted $ (0.05 ) $ (0.04 ) $ 0.22 $ (0.14 ) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | Jan. 04, 2018 | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2018USD ($)Segment$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares |
Summary Of Significant Accounting Policies [Line Items] | ||||||
Cash equivalents | $ 0 | $ 0 | $ 0 | |||
Banks and short-term investments with an original maturity | Three months or less | |||||
Banks and short-term investments with an original maturity | 3 months | |||||
Asset impairment | $ 4,774,000 | 3,739,000 | $ 5,435,000 | |||
Asset abandonments | $ (4,774,000) | (3,739,000) | $ (5,435,000) | |||
Number of reportable segments | Segment | 1 | |||||
Other identifiable intangible assets | $ 0 | $ 0 | $ 0 | |||
Dividend yield | 0.00% | |||||
Common stock repurchased, share repurchased | shares | 107,109 | 745,122 | 138,597 | |||
Common stock repurchased, value | $ 500,000 | $ 3,500,000 | $ 400,000 | |||
Common stock price ranging | $ / shares | $ 3.86 | $ 3.76 | $ 3.86 | |||
Stock Options [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Dividend yield | 0.00% | 0.00% | 0.00% | |||
Antidilutive securities excluded from computation of earnings per share | shares | 4,295,744 | 4,692,037 | 5,764,607 | |||
Patents [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Intangible assets, amortization period | 13 years | |||||
Acquired Exclusivity Rights [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Acquired exclusivity rights, remaining amortization period | 8 years | |||||
German Bank Credit Facilities [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Asset abandonments | $ (5,435,000) | |||||
Us Bank Credit Facilities [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Asset abandonments | $ (3,539,000) | |||||
Convertible Preferred Stock [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Antidilutive securities excluded from computation of earnings per share | shares | 50,000 | 50,000 | 50,000 | |||
Map3 Inventory [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Asset impairment | $ 4,515,000 | $ 1,797,000 | ||||
Minimum [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Intangible assets, amortization period | 5 years | |||||
Common stock price ranging | $ / shares | $ 2.69 | $ 2.69 | $ 2.69 | $ 2.69 | ||
Minimum [Member] | Patents [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Intangible assets, amortization period | 8 years | |||||
Minimum [Member] | Acquired Licensing Rights [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Intangible assets, amortization period | 5 years | |||||
Minimum [Member] | Distribution Agreement [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Intangible assets, amortization period | 5 years | |||||
Minimum [Member] | Procurement Contracts [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Intangible assets, amortization period | 5 years | |||||
Maximum [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Intangible assets, amortization period | 25 years | |||||
Common stock price ranging | $ / shares | $ 8.20 | $ 5.23 | $ 8.20 | $ 9.57 | ||
Maximum [Member] | Patents [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Intangible assets, amortization period | 16 years | |||||
Maximum [Member] | Acquired Licensing Rights [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Intangible assets, amortization period | 25 years | |||||
Maximum [Member] | Distribution Agreement [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Intangible assets, amortization period | 25 years | |||||
Maximum [Member] | Procurement Contracts [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Intangible assets, amortization period | 25 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Property, Plant, and Equipment are Stated at Cost Less Accumulated Depreciation (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Minimum [Member] | Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 25 years |
Minimum [Member] | Buildings and Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 8 years |
Minimum [Member] | Processing Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 7 years |
Minimum [Member] | Office Equipment, Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 5 years |
Minimum [Member] | Computer Hardware and Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 3 years |
Minimum [Member] | Surgical Instruments [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 3 years |
Maximum [Member] | Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 40 years |
Maximum [Member] | Buildings and Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 40 years |
Maximum [Member] | Processing Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 10 years |
Maximum [Member] | Office Equipment, Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 7 years |
Maximum [Member] | Computer Hardware and Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 7 years |
Maximum [Member] | Surgical Instruments [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 5 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Reconciliation of Common Stock Used in Calculation of Basic and Diluted Earnings Per Share (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||
Weighted average basic shares | 63,521,703 | 59,684,289 | 58,236,745 |
Effect of dilutive securities: Stock options | 915,663 | ||
Weighted average diluted shares | 63,521,703 | 60,599,952 | 58,236,745 |
Recently Issued Accounting St_3
Recently Issued Accounting Standards - Additional Information (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)SegmentContract | Dec. 31, 2017USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Number of reportable segment | Segment | 1 | |
Lines of business | Segment | 4 | |
Product return allowance recorded | $ | $ 517,000 | $ 1,110,000 |
Revenue recognized from amounts included in contract liabilities | $ | $ 4,958 | |
Accounting Standards Update 2014-09 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Number of contracts affected | Contract | 3 |
Recently Issued Accounting St_4
Recently Issued Accounting Standards - Schedule of Prior Period Adjustments (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accounts receivable | $ 48,351 | $ 38,324 | $ 35,081 |
Inventories - net | 107,471 | 111,927 | |
Accrued expenses | 24,683 | 25,610 | |
Deferred tax assets | 17,510 | 9,575 | |
Accumulated deficit | $ (237,444) | (237,066) | |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accounts receivable | 35,081 | ||
Inventories - net | 111,927 | ||
Deferred tax assets | 9,575 | ||
Accumulated deficit | $ (237,066) | ||
Accounting Standards Update 2014-09 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accounts receivable | 38,324 | ||
Inventories - net | 110,932 | ||
Accrued expenses | 1,110 | ||
Deferred tax assets | 9,309 | ||
Accumulated deficit | (236,194) | ||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accounts receivable | 3,243 | ||
Inventories - net | (995) | ||
Accrued expenses | 1,110 | ||
Deferred tax assets | (266) | ||
Accumulated deficit | $ 872 |
Recently Issued Accounting St_5
Recently Issued Accounting Standards - Impact of Adoption of Topic 606 to Consolidated Balance Sheets and Consolidated Statements of Comprehensive (Loss) Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Accounts receivable | $ 48,351 | $ 35,081 | $ 48,351 | $ 35,081 | $ 38,324 | |||||||
Inventories-net | 107,471 | 111,927 | 107,471 | 111,927 | ||||||||
Accrued expenses | 24,683 | 25,610 | 24,683 | 25,610 | ||||||||
Deferred tax assets | 17,510 | 9,575 | 17,510 | 9,575 | ||||||||
Accumulated deficit | (237,444) | (237,066) | (237,444) | (237,066) | ||||||||
Total revenues | 280,855 | 279,563 | $ 272,865 | |||||||||
Cost of processing and distribution | 140,732 | 137,042 | 140,516 | |||||||||
Income tax benefit | 4,331 | (19,453) | 3,061 | |||||||||
Net loss | 2,071 | $ 2,931 | $ (6,441) | $ (1,931) | $ (8,604) | $ 16,548 | $ (2,613) | $ (2,782) | (3,370) | $ 2,549 | $ (17,907) | |
Accounting Standards Update 2014-09 [Member] | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Accounts receivable | 38,324 | |||||||||||
Inventories-net | 110,932 | |||||||||||
Accrued expenses | 1,110 | |||||||||||
Deferred tax assets | 9,309 | |||||||||||
Accumulated deficit | $ (236,194) | |||||||||||
Accounting Standards Update 2014-09 [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Accounts receivable | 41,498 | 41,498 | ||||||||||
Inventories-net | 111,169 | 111,169 | ||||||||||
Accrued expenses | 24,166 | 24,166 | ||||||||||
Deferred tax assets | 16,935 | 16,935 | ||||||||||
Accumulated deficit | $ (240,657) | (240,657) | ||||||||||
Total revenues | 277,436 | |||||||||||
Cost of processing and distribution | 138,828 | |||||||||||
Income tax benefit | 4,807 | |||||||||||
Net loss | $ (4,409) |
Recently Issued Accounting St_6
Recently Issued Accounting Standards - Revenue Recognition from Four Franchises (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Revenues | $ 280,855 | $ 279,563 | $ 272,865 |
Spine [Member] | Tissue Distribution [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Revenues | 79,687 | ||
Sports [Member] | Tissue Distribution [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Revenues | 54,533 | ||
OEM [Member] | Tissue Distribution [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Revenues | 120,682 | ||
International [Member] | Tissue Distribution [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Revenues | $ 25,953 |
Recently Issued Accounting St_7
Recently Issued Accounting Standards - Impact of Adoption of Topic 606 to Consolidated Statements of Comprehensive (Loss) Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Revenues | $ 280,855 | $ 279,563 | $ 272,865 |
Transferred at Point in Time [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Revenues | 240,112 | ||
Transferred over Time [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Revenues | $ 40,743 |
Recently Issued Accounting St_8
Recently Issued Accounting Standards - Contract with Customer, Asset and Liability (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |||
Accounts receivable | $ 48,351 | $ 38,324 | $ 35,081 |
Contract Liability (Current) | 5,425 | 5,978 | |
Contract Liability (Long-Term) | 744 | $ 3,741 | |
Accounts Receivable, Increase/(decrease) | 10,027 | ||
Contract Liability (Current), Increase/(decrease) | (553) | ||
Contract Liability (Long-Term), Increase/(decrease) | $ (2,997) |
Acquisition of Zyga Technology
Acquisition of Zyga Technology Inc. - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 04, 2018 | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Combinations [Line Items] | |||||
Cash from RTI Surgical | $ 21,000 | ||||
Acquisition and integration expenses | 4,943 | $ 630 | |||
Goodwill | $ 59,798 | 59,798 | $ 46,242 | $ 54,887 | |
Patents [Member] | |||||
Business Combinations [Line Items] | |||||
Other intangible assets | $ 6,500 | ||||
Other intangible assets, useful life | 13 years | ||||
Trademarks [Member] | |||||
Business Combinations [Line Items] | |||||
Other intangible assets | $ 80 | ||||
Other intangible assets, useful life | 1 year | ||||
Marketing-Related Intangible Assets [Member] | |||||
Business Combinations [Line Items] | |||||
Other intangible assets | $ 180 | ||||
Other intangible assets, useful life | 7 years | ||||
Revolving Credit Facility [Member] | |||||
Business Combinations [Line Items] | |||||
Cash proceeds from revolving credit facility | $ 18,000 | ||||
Zyga Technology Inc. [Member] | |||||
Business Combinations [Line Items] | |||||
Date of merger agreement | Jan. 4, 2018 | ||||
Payments to acquire businesses | $ 21,000 | ||||
Cash from RTI Surgical | 3,000 | ||||
Acquisition related costs | 1,430 | ||||
Acquisition and integration expenses | 800 | ||||
Changes to the preliminary fair values of acquired assets and liabilities, Deferred tax assets | 3,066 | ||||
Changes to the preliminary fair values of acquired assets and liabilities, Goodwill | (3,066) | ||||
Goodwill | 13,556 | 13,556 | 13,556 | ||
Revenue | 4,757 | ||||
Net loss | (2,573) | ||||
Zyga Technology Inc. [Member] | Clinical Milestones [Member] | |||||
Business Combinations [Line Items] | |||||
Earnout consideration | 1,000 | 4,986 | 4,986 | ||
Zyga Technology Inc. [Member] | Earn Out Payment [Member] | |||||
Business Combinations [Line Items] | |||||
Earnout consideration | 4,986 | ||||
Revenue based earnout consideration | $ 35,000 | $ 4,986 | $ 4,986 |
Acquisition of Zyga Technolog_3
Acquisition of Zyga Technology Inc. - Acquisition Purchase Price (Detail) - USD ($) $ in Thousands | Jan. 04, 2018 | Dec. 31, 2018 |
Business Combinations [Line Items] | ||
Cash from RTI Surgical | $ 21,000 | |
Zyga Technology Inc. [Member] | ||
Business Combinations [Line Items] | ||
Cash from RTI Surgical | $ 3,000 | |
Total purchase price | 21,000 | |
Revolving Credit Facility [Member] | ||
Business Combinations [Line Items] | ||
Cash proceeds from revolving credit facility | $ 18,000 |
Acquisition of Zyga Technolog_4
Acquisition of Zyga Technology Inc. - Summary of Allocation of Total Consideration to Tangible and Intangible Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 04, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Combinations [Line Items] | ||||
Acquisition contingencies | $ (4,986) | |||
Goodwill | 59,798 | $ 46,242 | $ 54,887 | |
Zyga Technology Inc. [Member] | ||||
Business Combinations [Line Items] | ||||
Inventories | $ 1,099 | |||
Accounts receivable | 573 | |||
Other current assets | 53 | |||
Property, plant and equipment | 151 | |||
Other assets | 26 | |||
Deferred tax assets | 4,715 | |||
Current liabilities | (947) | |||
Acquisition contingencies | (4,986) | |||
Net tangible assets acquired | 684 | |||
Other intangible assets | 6,760 | |||
Goodwill | $ 13,556 | 13,556 | ||
Total net assets acquired | $ 21,000 |
Acquisition of Zyga Technolog_5
Acquisition of Zyga Technology Inc. - Pro Forma Information of Company's Operations (Detail) - Zyga Technology Inc. [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition Pro Forma Information [Line Items] | ||
Revenues | $ 4,809 | $ 4,649 |
Net loss applicable to common shares | $ (2,640) | $ (4,239) |
Basic net loss per share | $ (0.04) | $ (0.07) |
Diluted net loss per share | $ (0.04) | $ (0.07) |
Cardiothoracic Closure Busine_3
Cardiothoracic Closure Business Divestiture - Additional Information (Detail) - USD ($) $ in Thousands | Aug. 03, 2017 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Cash consideration | $ 3,000 | $ 51,000 | ||
Discontinued Operations, Disposed of by Sale [Member] | Cardiothoracic [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from divestiture of businesses | $ 54,000 | |||
Escrow deposit | 3,000 | |||
Cash consideration | $ 3,000 | $ 51,000 | ||
Contingent cash consideration receivable | $ 3,000 | |||
Discontinued Operations, Disposed of by Sale [Member] | Cardiothoracic [Member] | If the Company Obtains Certain FDA Regulatory Clearance [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Contingent cash consideration receivable | 1,000 | |||
Discontinued Operations, Disposed of by Sale [Member] | Cardiothoracic [Member] | If A&E Reaches Certain Revenue Milestones [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Contingent cash consideration receivable | $ 5,000 |
Cardiothoracic Closure Busine_4
Cardiothoracic Closure Business Divestiture - Schedule of Calculation of Gain of CT Business Divestiture (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from cardiothoracic closure business divestiture | $ 3,000 | $ 51,000 | |
Gain on cardiothoracic closure business divestiture | $ 34,090 | ||
Discontinued Operations, Disposed of by Sale [Member] | Cardiothoracic [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from cardiothoracic closure business divestiture | $ 3,000 | 51,000 | |
Inventories - net | (2,893) | ||
Property, plant and equipment - net | (1,299) | ||
Goodwill | (8,645) | ||
Other intangible assets - net | (280) | ||
Cardiothoracic closure business divestiture expenses | (3,793) | ||
Gain on cardiothoracic closure business divestiture | $ 34,090 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jan. 26, 2018 | Dec. 04, 2017 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2018 | Mar. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of market value of common stock, stock options exercise price | 100.00% | |||||
Percentage of market value of common stock, restricted stock award granted | 100.00% | |||||
Total unrecognized stock-based compensation | $ 3,079 | |||||
Stock-based compensation awards, weighted-average period recognized | 1 year 7 months 6 days | |||||
Common stock, par value | $ 0.001 | $ 0.001 | ||||
Number of options granted | 722,122 | |||||
Exercise price for stock option issued | $ 4.32 | |||||
Number of shares expected to vest | 4,062,373 | |||||
Former Chief Executive Officer [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of options granted | 1,950,000 | |||||
Exercise price for stock option issued | $ 3.20 | |||||
Stock option expiration date | Jan. 26, 2022 | |||||
Vesting term | The Stock Options will vest based on the Company’s attainment of three average stock price benchmarks. The first 650,000 shares will vest if the Company’s average publicly traded stock price is over $6.00 for a sixty-consecutive calendar day period. The next 650,000 shares will vest if the Company’s average publicly traded stock price is over $7.00 for a sixty-consecutive calendar day period. The final 650,000 shares will vest if the Company’s average publicly traded stock price is over $8.00 for a sixty-consecutive calendar day period. The vesting of the Stock Options is cumulative. | |||||
Former Chief Executive Officer [Member] | Tranche One [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of options granted | 650,000 | |||||
Exercise price for stock option issued | $ 6 | |||||
Former Chief Executive Officer [Member] | Tranche Two [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of options granted | 650,000 | |||||
Exercise price for stock option issued | $ 7 | |||||
Former Chief Executive Officer [Member] | Tranche Three [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of options granted | 650,000 | |||||
Exercise price for stock option issued | $ 8 | |||||
Former Chief Financial and Administrative Officer [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of options granted | 306,900 | |||||
Exercise price for stock option issued | $ 4.55 | |||||
Stock option expiration date | Sep. 18, 2027 | |||||
Vesting term | The Stock Options will vest based the Company’s attainment of three average stock price benchmarks. The first 102,300 shares will vest if the Company’s average publicly traded stock price is over $7.00 per share for a sixty-consecutive calendar day period. The next 102,300 shares will vest if the Company’s average publicly traded stock price is over $8.00 per share for a sixty-consecutive calendar day period. The final 102,300 shares will vest if the Company’s average publicly traded stock price is over $9.00 per share for a sixty-consecutive calendar day period. The vesting of the Stock Options is cumulative. | |||||
Former Chief Financial and Administrative Officer [Member] | Tranche One [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of options granted | 102,300 | |||||
Exercise price for stock option issued | $ 7 | |||||
Former Chief Financial and Administrative Officer [Member] | Tranche Two [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of options granted | 102,300 | |||||
Exercise price for stock option issued | $ 8 | |||||
Former Chief Financial and Administrative Officer [Member] | Tranche Three [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of options granted | 102,300 | |||||
Exercise price for stock option issued | $ 9 | |||||
2015 Equity Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares of common stock allowed to be issued | 4,656,587 | |||||
2018 Equity Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares of common stock allowed to be issued | 5,726,035 | |||||
Minimum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Contractual term of stock options granted | 5 years | |||||
Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Contractual term of stock options granted | 10 years | |||||
Restricted Stock Awards [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted | 827,214 | |||||
Number of shares vested | 592,705 | |||||
Restricted Stock Awards [Member] | Employee Directors [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted | 686,038 | |||||
Restricted Stock Awards [Member] | Non-Employee Directors [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted | 141,176 | |||||
Restricted Stock Awards [Member] | Restricted Stock Agreement Two [Member] | Former Chief Executive Officer [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted | 150,000 | |||||
Number of shares vested | 150,000 | |||||
Restricted stock award vested effective date | May 18, 2017 | |||||
Restricted Stock Awards [Member] | Restricted Stock Agreement [Member] | Former Chief Financial and Administrative Officer [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation award, vesting period | 3 years | |||||
Number of shares granted | 109,890 | |||||
Restricted Stock Awards [Member] | Restricted Stock Agreement [Member] | Former Chief Financial and Administrative Officer [Member] | Tranche One [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares expected to vest | 36,630 | |||||
Restricted Stock Awards [Member] | Restricted Stock Agreement [Member] | Former Chief Financial and Administrative Officer [Member] | Tranche Two [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares expected to vest | 36,630 | |||||
Restricted Stock Awards [Member] | Restricted Stock Agreement [Member] | Former Chief Financial and Administrative Officer [Member] | Tranche Three [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares expected to vest | 36,630 | |||||
Restricted Stock Awards [Member] | Restricted Stock Agreement One [Member] | Former Chief Executive Officer [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation award, vesting period | 4 years | |||||
Number of shares granted | 850,000 | |||||
Number of shares expected to vest | 170,000 | |||||
Quarterly vesting rate | 42,500 | |||||
Common stock, par value | $ 0.001 | |||||
Number of shares vested | 425,000 | |||||
Restricted stock award vested effective date | Mar. 31, 2019 | |||||
Restricted Stock Awards [Member] | Minimum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation award, vesting period | 1 year | |||||
Restricted Stock Awards [Member] | Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation award, vesting period | 3 years | |||||
Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Total unrecognized stock-based compensation | $ 2,059 | |||||
Stock-based compensation awards, weighted-average period recognized | 1 year 8 months 19 days | |||||
Stock Options [Member] | Minimum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation award, vesting period | 1 year | |||||
Stock Options [Member] | Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation award, vesting period | 5 years | |||||
Unaccelerated Restricted Shares [Member] | Restricted Stock Agreement One [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares expected to vest | 170,000 | 42,500 |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted-Average Assumptions Used to Determine Fair Value of Options (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.00% | ||
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 6 years 6 months | 6 years 6 months | 6 years 6 months |
Risk free interest rate | 2.75% | 2.26% | 1.85% |
Volatility factor | 43.74% | 47.39% | 45.57% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options Outstanding, Exercisable and Available for Grant (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($)$ / sharesshares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Outstanding, Number of Shares | 4,692,037 |
Granted, Number of Shares | 722,122 |
Exercised, Number of Shares | (352,015) |
Forfeited or expired, Number of Shares | (766,400) |
Outstanding, Number of Shares | 4,295,744 |
Vested or expected to vest, Number of Shares | 4,062,373 |
Exercisable, Number of Shares | 1,669,844 |
Available for grant, Number of Shares | 5,454,302 |
Outstanding, Weighted Average Exercise Price | $ / shares | $ 3.86 |
Granted, Weighted Average Exercise Price | $ / shares | 4.32 |
Exercised, Weighted Average Exercise Price | $ / shares | 3.53 |
Forfeited or expired, Weighted Average Exercise Price | $ / shares | 5.02 |
Outstanding, Weighted Average Exercise Price | $ / shares | 3.76 |
Vested or expected to vest, Weighted Average Exercise Price | $ / shares | 3.74 |
Exercisable, Weighted Average Exercise Price | $ / shares | $ 3.65 |
Outstanding, Weighted Average Remaining Contractual Life (Years) | 5 years 8 months 23 days |
Vested or expected to vest, Weighted Average Remaining Contractual Life (Years) | 5 years 6 months 29 days |
Exercisable, Weighted Average Remaining Contractual Life (Years) | 3 years 6 months 14 days |
Outstanding, Aggregate Intrinsic Value | $ | $ 1,175 |
Vested or expected to vest, Aggregate Intrinsic Value | $ | 1,143 |
Exercisable, Aggregate Intrinsic Value | $ | $ 493 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock-Based Compensation Recognized (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | $ 4,745 | $ 6,762 | $ 3,590 |
Costs of Processing and Distribution [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | 132 | 132 | 140 |
Marketing, General and Administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | 4,553 | 6,586 | 3,406 |
Research and Development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation | $ 60 | $ 44 | $ 44 |
Stock-Based Compensation - Othe
Stock-Based Compensation - Other Information Concerning Stock Options (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Weighted average fair value of stock options granted | $ 2.05 | $ 1.66 | $ 1.55 |
Aggregate intrinsic value of stock options exercised | $ 349 | $ 2,786 | $ 12 |
Stock-Based Compensation - Unve
Stock-Based Compensation - Unvested Restricted Stock Awards (Detail) - Restricted Stock Awards [Member] | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Beginning Balance, Number of shares | shares | 1,120,190 |
Granted, Number of shares | shares | 827,214 |
Vested, Number of shares | shares | (592,705) |
Forfeited, Number of shares | shares | (279,484) |
Ending Balance, Number of shares | shares | 1,075,215 |
Beginning Balance, Weighted Average Grant Date Fair Value | $ / shares | $ 4.15 |
Granted, Weighted Average Grant Date Fair Value | $ / shares | 4.29 |
Vested, Weighted Average Grant Date Fair Value | $ / shares | 4.09 |
Forfeited, Weighted Average Grant Date Fair Value | $ / shares | 4.13 |
Ending Balance, Weighted Average Grant Date Fair Value | $ / shares | $ 4.29 |
Inventories - Components of Inv
Inventories - Components of Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Unprocessed tissue, raw materials and supplies | $ 24,211 | $ 22,071 |
Tissue and work in process | 31,796 | 40,481 |
Implantable tissue and finished goods | 51,464 | 49,375 |
Inventory - net | $ 107,471 | $ 111,927 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Inventory [Line Items] | ||||
Provision for inventory write-downs | $ 15,122 | $ 5,066 | $ 13,880 | |
Product obsolescence | 1,023 | |||
Map3 Inventory [Member] | ||||
Inventory [Line Items] | ||||
Provision for inventory write-downs | $ 6,559 | $ 6,559 | ||
Sports [Member] | ||||
Inventory [Line Items] | ||||
Provision for inventory write-downs | $ 9,556 |
Prepaid and Other Current Ass_3
Prepaid and Other Current Assets - Schedule of Prepaid and Other Current Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Income tax receivable | $ 3,920 | $ 9,825 |
Receivable for executive stock option exercise | 1,234 | |
Prepaid expenses | 4,127 | 3,521 |
Other | 744 | 1,705 |
Prepaid and other current assets | $ 8,791 | $ 16,285 |
Property, Plant and Equipment -
Property, Plant and Equipment - Components of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 156,466 | $ 152,031 |
Less accumulated depreciation | (78,512) | (72,467) |
Property, plant and equipment, net | 77,954 | 79,564 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,020 | 2,020 |
Buildings and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 58,093 | 57,954 |
Processing Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 42,599 | 44,137 |
Surgical Instruments [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 24,070 | 21,256 |
Office Equipment, Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,877 | 1,352 |
Computer Equipment and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 18,873 | 19,332 |
Construction in Process [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 8,934 | $ 5,980 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | Oct. 20, 2017 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | |||||
Depreciation expense in connection with property, plant and equipment | $ 10,619 | $ 10,513 | $ 12,835 | ||
Asset impairment and abandonments | 4,774 | $ 3,739 | $ 5,435 | ||
Disposal on owned property | $ 1,818 | ||||
Map3 Inventory [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Asset impairment and abandonments | $ 4,515 | $ 1,797 |
Goodwill - Schedule of Goodwill
Goodwill - Schedule of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Beginning Balance | $ 46,242 | $ 54,887 |
Goodwill acquired related to Zyga acquisition | 13,556 | |
Goodwill disposed of related to sale of Cardiothoracic closure business | 8,645 | |
Ending Balance | $ 59,798 | $ 46,242 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill impairment loss | $ 0 | $ 0 |
Other Intangible Assets - Compo
Other Intangible Assets - Components of Other Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 48,300 | $ 46,723 |
Accumulated Amortization | 21,941 | 23,653 |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 16,092 | 11,373 |
Accumulated Amortization | 4,194 | 4,890 |
Acquired Licensing Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 11,852 | 14,747 |
Accumulated Amortization | 6,468 | 9,097 |
Marketing and Procurement Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 20,356 | 20,603 |
Accumulated Amortization | $ 11,279 | $ 9,666 |
Other Intangible Assets - Addit
Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense of other intangible assets | $ 3,950 | $ 3,713 | $ 3,675 | |
Impairment charges of acquiring licensing rights | 2,718 | $ 718 | ||
Map3 Inventory [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment charges of acquiring licensing rights | $ 2,718 | $ 2,718 |
Other Intangible Assets - Estim
Other Intangible Assets - Estimates of Future Amortization Expense (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,019 | $ 4,200 |
2,020 | 4,100 |
2,021 | 4,100 |
2,022 | 4,100 |
2,023 | $ 1,800 |
Fair Value Information - Additi
Fair Value Information - Additional information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 04, 2018 | |
Assets And Liabilities Carrying Value [Line Items] | ||||
Impairment on long-lived assets | $ 1,797 | $ 0 | $ 4,717 | |
Zyga Technology Inc. [Member] | Earn Out Payment [Member] | ||||
Assets And Liabilities Carrying Value [Line Items] | ||||
Earnout consideration | $ 4,986 |
Fair Value Information - Summar
Fair Value Information - Summary of Impairments of Long-Lived Assets and Related Post Impairment Fair Values (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |||
Property, plant and equipment-net, impairment | $ 1,797 | $ 0 | $ 4,717 |
Other intangible assets-net, impairment | 2,718 | 718 | |
Asset impairment | $ 4,515 | 5,435 | |
Property, plant and equipment-net, fair value | 4,708 | ||
Other intangible assets-net, fair value | 150 | ||
Post impairment fair values | $ 4,858 |
Accrued Expenses - Accrued Expe
Accrued Expenses - Accrued Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Accrued compensation | $ 8,678 | $ 8,257 |
Accrued severance and restructuring cost | 931 | 3,279 |
Accrued executive transition costs | 43 | 2,300 |
Accrued distributor commissions | 3,907 | 3,889 |
Accrued donor recovery fees | 4,088 | 4,144 |
Other | 7,036 | 3,741 |
Total accrued expenses | $ 24,683 | $ 25,610 |
Short and Long-Term Obligatio_3
Short and Long-Term Obligations - Short and Long-Term Obligations (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
Term loan | $ 24,250 | |
Revolving credit facility | $ 50,000 | 22,500 |
Less unamortized debt issuance costs | (927) | (406) |
Debt and capital lease obligation, total | 49,073 | 46,344 |
Debt and capital lease obligation, total | 49,073 | 46,344 |
Less current portion | (4,268) | |
Long-term portion | $ 49,073 | $ 42,076 |
Short and Long-Term Obligatio_4
Short and Long-Term Obligations - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 05, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Line of Credit Facility [Line Items] | ||||
Debt instrument, maturity date | Jun. 5, 2023 | |||
Customary closing costs and bank fees paid | $ 1,049 | |||
Credit facility, outstanding | $ 50,000 | $ 22,500 | ||
Interest expense associated with the amortization of debt issuance costs | 528 | $ 409 | $ 202 | |
Loss on extinguishment of debt | $ (309) | |||
Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Interest rate revolving credit facility | 4.10% | |||
Credit facility, outstanding | $ 50,000 | |||
Current borrowing capacity | $ 43,713 | |||
2017 Loan Agreement [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Loan agreement termination date | Jun. 5, 2018 | |||
Debt instrument, maturity date | Sep. 15, 2019 | |||
2017 Loan Agreement [Member] | LIBOR [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Interest rate revolving credit facility | 3.50% | |||
2017 Loan Agreement [Member] | Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Credit facility, original borrowing capacity | $ 42,500 | |||
2018 Loan Agreement [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Percentage of foreign subsidiaries stock held as collateral | 65.00% | |||
Credit facility guaranteed description | The Facility is guaranteed by the Company's domestic subsidiaries and is secured by (i) substantially all of the assets of the Company and Pioneer; (ii) substantially all of the assets of each of the Company's domestic subsidiaries; and (iii) 65% of the stock of the Company's foreign subsidiaries. | |||
Minimum fixed charge coverage ratio | 0.01 | |||
Covenant Terms of Credit Facility | The Company is required to maintain a minimum fixed charge coverage ratio of at least 1.00:1.00 (the “Required Minimum Fixed Charge Coverage Ratio”) during either of the following periods (each, a “Covenant Testing Period”): (i) a period beginning on a date that a default has occurred and is continuing under the loan documents entered into by the Company in conjunction with the 2018 Credit Agreement through the first date on which no default has occurred and is continuing; or (ii) a period beginning on a date that availability under the Facility is less than the specified covenant testing threshold and continuing until availability under the Facility is greater than or equal to the specified covenant testing threshold for thirty (30) consecutive days. | |||
2018 Loan Agreement [Member] | Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Credit facility, original borrowing capacity | $ 100,000 | |||
Credit facility, additional borrowing capacity | $ 50,000 | |||
2018 Loan Agreement [Member] | Revolving Credit Facility [Member] | Debt Instrument Variable Rate Base CBFR Using Monthly REVLIBOR30 Rate [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Interest rate revolving credit facility | 2.00% |
Income Taxes - Income Tax Benef
Income Taxes - Income Tax Benefit (Provision) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current: | |||
Federal | $ 1,305 | $ (3,176) | $ (150) |
State | (110) | (915) | (92) |
International | (376) | 456 | |
Total current | 819 | (4,091) | 214 |
Deferred: | |||
Federal | 2,059 | (14,340) | 2,477 |
State | (2,519) | (1,022) | 562 |
International | 3,972 | (192) | |
Total deferred | 3,512 | (15,362) | 2,847 |
Total income tax benefit (provision) | $ 4,331 | $ (19,453) | $ 3,061 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Deferred income tax asset, accounts receivable | $ 444 | $ 186 |
Deferred income tax asset, accrued liabilities | 2,083 | 2,072 |
Deferred income tax asset, deferred compensation | 1,372 | 1,783 |
Deferred income tax asset, fixed assets and intangibles | 0 | 0 |
Deferred income tax asset, inventory | 7,631 | 5,905 |
Deferred income tax asset, net operating losses | 8,198 | 8,106 |
Deferred income tax asset, revenue | 650 | 1,874 |
Deferred income tax asset, tax credits | 6,087 | 4,387 |
Deferred income tax asset, other | 0 | 0 |
Deferred income tax asset, valuation allowance | (3,093) | (7,258) |
Deferred income tax asset, total | 23,372 | 17,055 |
Deferred income tax liability, accounts receivable | 0 | 0 |
Deferred income tax liability, accrued liabilities | 0 | 0 |
Deferred income tax liability, deferred compensation | 0 | 0 |
Deferred income tax liability, fixed assets and intangibles | (5,862) | (7,370) |
Deferred income tax liability, inventory | 0 | 0 |
Deferred income tax liability, net operating losses | 0 | 0 |
Deferred income tax liability, revenue | 0 | 0 |
Deferred income tax liability, tax credits | 0 | 0 |
Deferred income tax liability, other | (110) | |
Deferred income tax liability, valuation allowance | 0 | 0 |
Deferred income tax liability, total | $ (5,862) | $ (7,480) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | ||||
Deferred tax assets | $ 17,510,000 | |||
Deferred tax assets, valuation allowances | $ 3,093,000 | |||
Statutory federal rate | 21.00% | 35.00% | 35.00% | |
Income tax expense benfit due to change in tax rate | $ 650,000 | $ 2,187,000 | ||
Research tax credit carryforwards | $ 6,364,000 | |||
Research tax credit carryforwards, first year of expiration period | 2,029 | |||
Research tax credit carryforwards, last year of expiration period | 2,038 | |||
Primary measure of cumulative losses, number of rolling years | 3 years | |||
Unrecognized tax benefits | $ 1,087,000 | 1,591,000 | $ 1,591,000 | $ 1,986,000 |
Interest and penalties recorded | 0 | 0 | 0 | |
Interest and penalties accrued | 0 | 0 | ||
Significant other reconciling items | 0 | 0 | $ 0 | |
Domestic Tax Authority [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Deferred tax assets, valuation allowances | 3,093,000 | $ 7,258,000 | ||
U S Federal [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | $ 9,973,000 | |||
Net operating loss carryforwards, expiration start year | 2,026 | |||
Net operating loss carryforwards, expiration end year | 2,037 | |||
U S Federal [Member] | Indefinitely Period [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | $ 1,337,000 | |||
U S State [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | $ 41,844,000 | |||
Net operating loss carryforward expiration period, start year | 2,022 | |||
Net operating loss carryforward expiration period, end year | 2,038 | |||
Foreign Tax Authority [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | $ 13,754,000 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Opening balance | $ 1,591 | $ 1,591 | $ 1,986 |
Reductions based on tax positions related to the current year | 0 | 0 | 0 |
Additions for tax positions of prior years | 0 | 0 | 0 |
Reductions for tax positions of prior years | (415) | (60) | |
Reductions for expiration of statute of limitations | (88) | (335) | |
Closing balance | $ 1,087 | $ 1,591 | $ 1,591 |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rate Differs from the Statutory Federal Income Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal rate | 21.00% | 35.00% | 35.00% |
State income taxes-net of federal tax benefit | (6.07%) | 2.43% | 1.73% |
Foreign rate differential | 19.02% | 2.85% | (3.29%) |
Acquisition expenses | (9.61%) | ||
Goodwill disposal | 11.76% | ||
Life insurance | 5.19% | ||
Officer compensation | (10.43%) | 4.26% | |
Stock-based compensation | (5.16%) | 6.18% | |
Tax credits | 11.46% | (4.62%) | 7.02% |
Tax legislation | 12.22% | 8.50% | |
Valuation allowances | 29.03% | 5.94% | (21.71%) |
Uncertain tax positions | 9.08% | ||
Other reconciling items, net | 1.87% | 3.32% | (1.22%) |
Effective tax rate | 77.60% | 75.62% | 17.53% |
Preferred Stock - Schedule of P
Preferred Stock - Schedule of Preferred Stock (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Temporary Equity [Line Items] | ||||
Net Total | $ 66,226 | $ 63,923 | $ 60,016 | $ 56,323 |
Accrued dividend | 2,120 | 3,723 | 3,508 | |
Amortization of preferred stock issuance costs | 183 | 184 | 185 | |
Series A Preferred Stock [Member] | ||||
Temporary Equity [Line Items] | ||||
Net Total | 66,519 | 64,399 | 60,676 | 57,168 |
Preferred Stock Issuance Costs | (293) | (476) | (660) | $ (845) |
Accrued dividend | 2,120 | 3,723 | 3,508 | |
Amortization of preferred stock issuance costs | $ 183 | $ 184 | $ 185 |
Preferred Stock - Additional In
Preferred Stock - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jul. 16, 2013 | Jun. 12, 2013 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Series A Preferred Stock [Member] | ||||||
Temporary Equity [Line Items] | ||||||
Preferred stock issuance cost | $ 293 | $ 476 | $ 660 | $ 845 | ||
Private Placement with WSHP [Member] | Convertible Preferred Stock [Member] | ||||||
Temporary Equity [Line Items] | ||||||
Convertible preferred stock issued | $ 50,000 | |||||
Preferred stock issuance cost | $ 1,290 | |||||
Private Placement with WSHP [Member] | Series A Preferred Stock [Member] | ||||||
Temporary Equity [Line Items] | ||||||
Preferred stock dividend rate | 6.00% | |||||
Preferred stock conversion price per share | $ 4.39 | |||||
Convertible preferred stock, shares to be issued upon approval for each share of preferred stock | 228 | |||||
Closing price of share | $ 7.98 | |||||
Convertible preferred stock, Description of Conversion | The Preferred Stock will be convertible at the election of the holders into shares of the Company's common stock at an initial conversion price of $4.39 per share which would result in a conversion ratio of approximately 228 shares of common stock for each share of Preferred Stock. The Preferred Stock is convertible at the election of the Company five years after its issuance or at any time if the Company's common stock closes at or above $7.98 per share for at least 20 consecutive trading days. | |||||
Preferred stock conversion period after issuance | 5 years | |||||
Liquidation value | $ 1,000 | |||||
Convertible preferred stock, Description of Conversion Two | The Company may, upon 30 days notice, redeem the Preferred Stock, in whole or in part, five years after its issuance at the initial liquidation preference of $1,000 per share of the Preferred Stock plus an amount per share equal to accrued but unpaid dividends (collectively, the “Liquidation Value”). The holders of the Preferred Stock may require the Company to redeem their Preferred Stock, in whole or in part, at the Liquidation Value seven years after its issuance or upon the occurrence of a change of control. | |||||
Preferred stock conversion after issuance, Conversion Two | 7 years | |||||
Private Placement with WSHP [Member] | Series A Preferred Stock [Member] | Minimum [Member] | ||||||
Temporary Equity [Line Items] | ||||||
Consecutive trading days | 20 days |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2018Voteshares | Dec. 31, 2017shares | |
Equity [Abstract] | ||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 50,000 | 50,000 |
Preferred stock, shares outstanding | 50,000 | 50,000 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Votes per common share | Vote | 1 |
Executive Transition Costs - Ad
Executive Transition Costs - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Postemployment Benefits Disclosure [Line Items] | |||
Executive transition costs | $ 2,781 | $ 4,404 | |
Former Chief Executive Officer [Member] | |||
Postemployment Benefits Disclosure [Line Items] | |||
Executive transition costs | $ 1,169 | $ 2,781 | $ 4,404 |
Executive Transition Costs - Sc
Executive Transition Costs - Schedule of Restructuring Charges (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||
Executive transition costs accrued | $ 2,781 | $ 4,404 | |
Chief Executive Officer and Chief Financial and Administrative Officer [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Accrued executive transition costs at January 1, 2016 | $ 2,300 | 2,406 | |
Executive transition costs accrued | 2,781 | 4,404 | |
Stock-based compensation | (1,612) | (1,535) | |
Cash payments | (2,257) | (1,275) | (463) |
Accrued executive transition costs at December 31, 2016 | $ 43 | $ 2,300 | $ 2,406 |
Severance and Restructuring C_3
Severance and Restructuring Costs - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |||
Severance and restructuring costs related to the reduction | $ 2,280 | $ 12,173 | $ 2,146 |
Severance and Restructuring C_4
Severance and Restructuring Costs - Schedule of Restructuring Charges (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||
Accrued severance and restructuring charges, beginning balance | $ 3,279 | ||
Severance and restructuring expenses accrued | 2,280 | $ 12,173 | $ 2,146 |
Accrued severance and restructuring charges, ending balance | 931 | 3,279 | |
Employee Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Accrued severance and restructuring charges, beginning balance | 3,279 | 505 | 865 |
Severance and restructuring expenses accrued | 2,280 | 12,173 | 2,146 |
Severance and restructuring cash payments | (4,628) | (8,246) | (1,866) |
Asset abandonments | (640) | ||
Stock based compensation | (1,153) | ||
Accrued severance and restructuring charges, ending balance | $ 931 | $ 3,279 | $ 505 |
Retirement Benefits - Additiona
Retirement Benefits - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Cost recognized under benefit plan | $ 2,757 | $ 3,036 | $ 3,094 |
Maximum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Retirement benefits, employer contribution percent | 6.00% |
Concentrations of Risk - Additi
Concentrations of Risk - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2018Companies | |
Risks and Uncertainties [Abstract] | |
Companies with revenues | 14 |
Companies with significant revenues | 3 |
Concentrations of Risk - Schedu
Concentrations of Risk - Schedule of Percentage of Total Revenues Derived from Company's Largest Distributors and International Distribution (Detail) - Distributors Concentration Risk [Member] - Sales Revenue, Net [Member] | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Zimmer Biomet Holdings, Inc. [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of sales revenue | 21.00% | 17.00% | 16.00% |
Medtronic, PLC [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of sales revenue | 8.00% | 9.00% | 9.00% |
DePuy Synthes [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of sales revenue | 5.00% | 4.00% | 4.00% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | Nov. 01, 2018 | Jan. 04, 2018 | Aug. 03, 2017 | Oct. 12, 2013 | Sep. 30, 2010 | Jul. 13, 2009 | Mar. 31, 2015 | Mar. 31, 2013 | Dec. 31, 2010 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2018 |
Commitment And Contingencies [Line Items] | |||||||||||||
Cash from RTI Surgical | $ 21,000 | ||||||||||||
Exclusivity payments | 3,500 | ||||||||||||
Rent expense | 1,300 | $ 1,325 | $ 1,378 | ||||||||||
Revolving Credit Facility [Member] | |||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||
Cash proceeds from revolving credit facility | $ 18,000 | ||||||||||||
Paradigm Spine [Member] | |||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||
Agreement to acquire business | $ 300,000 | ||||||||||||
Cash to be paid at closing | $ 150,000 | ||||||||||||
Number of common stock to be issued at closing, shares | 10,729,614 | ||||||||||||
Revenue based earnout considerations | $ 150,000 | ||||||||||||
Number of common stock to be issued at closing, value | 50,000 | ||||||||||||
Potential debt to finance business combination | $ 100,000 | ||||||||||||
Zyga Technology Inc. [Member] | |||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||
Date of merger agreement | Jan. 4, 2018 | ||||||||||||
Payments to acquire businesses | $ 21,000 | ||||||||||||
Cash from RTI Surgical | 3,000 | ||||||||||||
Zyga Technology Inc. [Member] | Clinical Milestones [Member] | |||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||
Earnout consideration | 1,000 | 4,986 | |||||||||||
Zyga Technology Inc. [Member] | Earn Out Payment [Member] | |||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||
Earnout consideration | 4,986 | ||||||||||||
Revenue based earnout consideration | $ 35,000 | $ 4,986 | |||||||||||
Discontinued Operations, Disposed of by Sale [Member] | Cardiothoracic [Member] | |||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||
Proceeds from divestiture of businesses | $ 54,000 | ||||||||||||
Escrow deposit | 3,000 | ||||||||||||
Contingent cash consideration receivable | $ 3,000 | ||||||||||||
Discontinued Operations, Disposed of by Sale [Member] | Cardiothoracic [Member] | If A&E Reaches Certain Revenue Milestones [Member] | |||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||
Contingent cash consideration receivable | 5,000 | ||||||||||||
Discontinued Operations, Disposed of by Sale [Member] | Cardiothoracic [Member] | If the Company Obtains Certain FDA Regulatory Clearance [Member] | |||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||
Contingent cash consideration receivable | $ 1,000 | ||||||||||||
Medtronic, PLC [Member] | |||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||
Decline in cumulative fees received, trailing period | 12 months | ||||||||||||
Distribution agreement automatic renewal term | 5 years | ||||||||||||
Period prior to expiration of initial term for notice | 1 year | ||||||||||||
Agreement expiration date | Jun. 30, 2014 | ||||||||||||
Zimmer Biomet Holdings, Inc. [Member] | |||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||
Initial agreement term | 10 years | ||||||||||||
Upfront payment | $ 13,000 | ||||||||||||
Upfront payment period | 10 days | ||||||||||||
Davol, Inc. [Member] | |||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||
Initial agreement term | 10 years | ||||||||||||
Non-refundable license fee | $ 8,000 | ||||||||||||
Revenue milestone payment | $ 3,500 | ||||||||||||
Exclusivity payments | $ 8,000 | ||||||||||||
Exclusive worldwide distribution agreement, extended expiration date | Jul. 13, 2019 | ||||||||||||
Deferred revenue recognition | $ 1,500 | $ 1,715 |
Commitments and Contingencies_2
Commitments and Contingencies - Future Minimum Lease Commitments under Non-Cancelable Operating Leases (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,019 | $ 1,374 |
2,020 | 806 |
2,021 | 276 |
2,022 | 162 |
2,023 | 166 |
2024 and beyond | 882 |
Total | $ 3,666 |
Legal and Regulatory Actions -
Legal and Regulatory Actions - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($)LitigationClaims | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Loss Contingencies [Line Items] | ||||
Outstanding claims | Litigation | 0 | |||
Claims for which the Company Parties are providing defense and indemnification | Claims | 1,148 | |||
Impairment charges of acquiring licensing rights | $ 2,718,000 | $ 718,000 | ||
Provision for inventory write-downs | 15,122,000 | $ 5,066,000 | $ 13,880,000 | |
Goodwill impairment loss | $ 0 | 0 | ||
Map3 Inventory [Member] | ||||
Loss Contingencies [Line Items] | ||||
Impairment charge of property, plant and equipment | 1,797,000 | |||
Impairment charges of acquiring licensing rights | 2,718,000 | 2,718,000 | ||
Provision for inventory write-downs | $ 6,559,000 | $ 6,559,000 |
Segment Data - Additional Infor
Segment Data - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2018Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
Lines of business | 4 |
Segment Data - Revenues from Ti
Segment Data - Revenues from Tissue Distribution and Other Revenues (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Total revenues | $ 280,855 | $ 279,563 | $ 272,865 |
Percentage of revenues | 100.00% | 100.00% | 100.00% |
Spine [Member] | Tissue Distribution [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | $ 79,687 | $ 77,514 | $ 73,907 |
Percentage of sales revenue | 28.40% | 27.70% | 27.10% |
Sports [Member] | Tissue Distribution [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | $ 54,533 | $ 57,211 | $ 54,609 |
Percentage of sales revenue | 19.40% | 20.50% | 20.00% |
OEM [Member] | Tissue Distribution [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | $ 120,682 | $ 110,710 | $ 108,093 |
Percentage of sales revenue | 43.00% | 39.60% | 39.60% |
International [Member] | Tissue Distribution [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | $ 25,953 | $ 25,964 | $ 25,109 |
Percentage of sales revenue | 9.20% | 9.30% | 9.20% |
Cardiothoracic [Member] | Tissue Distribution [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenues | $ 8,164 | $ 11,147 | |
Percentage of sales revenue | 0.00% | 2.90% | 4.10% |
Segment Data - Schedule of Prop
Segment Data - Schedule of Property, Plant and Equipment - Net by Significant Geographic Location (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment - net | $ 77,954 | $ 79,564 |
Domestic [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment - net | 72,501 | 73,363 |
International [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment - net | $ 5,453 | $ 6,201 |
Quarterly Results of Operatio_3
Quarterly Results of Operations (Unaudited) - Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 71,216 | $ 69,064 | $ 70,685 | $ 69,890 | $ 70,816 | $ 66,688 | $ 72,120 | $ 69,939 | |||
Gross profit | 38,746 | 37,655 | 30,040 | 33,682 | 36,268 | 33,511 | 36,963 | 35,779 | $ 140,123 | $ 142,521 | $ 132,349 |
Net (loss) income applicable to common shares | $ 2,071 | $ 2,931 | $ (6,441) | $ (1,931) | $ (8,604) | $ 16,548 | $ (2,613) | $ (2,782) | $ (3,370) | $ 2,549 | $ (17,907) |
Net (loss) income per common share: | |||||||||||
Basic | $ 0.03 | $ 0.05 | $ (0.10) | $ (0.03) | $ (0.14) | $ 0.28 | $ (0.04) | $ (0.05) | $ (0.05) | $ 0.04 | $ (0.31) |
Diluted | $ 0.03 | $ 0.04 | $ (0.10) | $ (0.03) | $ (0.14) | $ 0.22 | $ (0.04) | $ (0.05) | $ (0.05) | $ 0.04 | $ (0.31) |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SEC Schedule, 12-09, Allowance, Credit Loss [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $ 1,471 | $ 1,728 | $ 1,454 |
Charged to Costs and Expenses | 1,085 | 418 | 645 |
Deductions- Write-offs, Payments | 176 | 675 | 371 |
Balance at End of Period | 2,380 | 1,471 | 1,728 |
Sales Returns and Allowances [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 1,110 | 629 | 714 |
Charged to Costs and Expenses | 110 | 528 | 250 |
Deductions- Write-offs, Payments | 703 | 47 | 335 |
Balance at End of Period | 517 | 1,110 | 629 |
Allowance for Excess and Obsolescence [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 8,102 | 14,798 | 7,083 |
Charged to Costs and Expenses | 15,122 | 5,066 | 13,880 |
Deductions- Write-offs, Payments | 7,871 | 11,762 | 6,165 |
Balance at End of Period | 15,353 | 8,102 | 14,798 |
Deferred Tax Asset Valuation Allowance [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 7,258 | 4,916 | 1,106 |
Charged to Costs and Expenses | 2,368 | 1,668 | 3,833 |
Deductions- Write-offs, Payments | 6,533 | (674) | 23 |
Balance at End of Period | $ 3,093 | $ 7,258 | $ 4,916 |