Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Oct. 03, 2014 | Nov. 12, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'GREATBATCH, INC. | ' |
Entity Central Index Key | '0001114483 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 3-Oct-14 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Current Fiscal Year End Date | '--01-02 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 24,995,025 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Oct. 03, 2014 | Jan. 03, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $61,582 | $35,465 |
Accounts receivable, net of allowance for doubtful accounts of $1.6 million in 2014 and $2.0 million in 2013 | 121,615 | 113,679 |
Inventories | 128,727 | 118,358 |
Refundable income taxes | 0 | 2,306 |
Deferred income taxes | 5,890 | 6,008 |
Prepaid expenses and other current assets | 9,121 | 6,717 |
Total current assets | 326,935 | 282,533 |
Property, plant and equipment, net | 142,336 | 145,773 |
Amortizing intangible assets, net | 68,763 | 76,122 |
Indefinite-lived intangible assets | 20,288 | 20,288 |
Goodwill | 354,583 | 346,656 |
Deferred income taxes | 2,933 | 2,933 |
Other assets | 15,449 | 16,398 |
Total assets | 931,287 | 890,703 |
Current liabilities: | ' | ' |
Accounts payable | 44,989 | 46,508 |
Income taxes payable | 2,559 | 0 |
Deferred income taxes | 613 | 613 |
Accrued expenses | 41,798 | 44,681 |
Total current liabilities | 89,959 | 91,802 |
Long-term debt | 190,000 | 197,500 |
Deferred income taxes | 50,593 | 52,012 |
Other long-term liabilities | 3,673 | 7,334 |
Total liabilities | 334,225 | 348,648 |
Stockholders’ equity: | ' | ' |
Preferred stock, $0.001 par value, authorized 100,000,000 shares; no shares issued or outstanding in 2014 or 2013 | 0 | 0 |
Common stock, $0.001 par value, authorized 100,000,000 shares; 24,958,994 shares issued and 24,942,689 shares outstanding in 2014; 24,459,153 shares issued and 24,422,555 shares outstanding in 2013 | 25 | 24 |
Additional paid-in capital | 360,435 | 344,915 |
Treasury stock, at cost, 16,305 shares in 2014 and 36,598 shares in 2013 | -720 | -1,232 |
Retained earnings | 225,272 | 183,990 |
Accumulated other comprehensive income | 12,050 | 14,358 |
Total stockholders’ equity | 597,062 | 542,055 |
Total liabilities and stockholders’ equity | $931,287 | $890,703 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Oct. 03, 2014 | Jan. 03, 2014 |
In Millions, except Share data, unless otherwise specified | ||
Current assets: | ' | ' |
Allowance for doubtful accounts | $1.60 | $2 |
Stockholders’ equity: | ' | ' |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 24,958,994 | 24,459,153 |
Common stock, shares outstanding | 24,942,689 | 24,422,555 |
Treasury stock, shares | 16,305 | 36,598 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Oct. 03, 2014 | Sep. 27, 2013 | Oct. 03, 2014 | Sep. 27, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Sales | $171,699 | $167,730 | $518,061 | $487,326 |
Cost of sales | 113,581 | 111,853 | 343,877 | 325,398 |
Gross profit | 58,118 | 55,877 | 174,184 | 161,928 |
Operating expenses: | ' | ' | ' | ' |
Selling, general and administrative expenses | 22,121 | 21,569 | 65,753 | 63,909 |
Research, development and engineering costs, net | 13,638 | 13,806 | 39,962 | 38,983 |
Other operating expenses, net | 6,176 | 3,500 | 10,223 | 10,560 |
Total operating expenses | 41,935 | 38,875 | 115,938 | 113,452 |
Operating income | 16,183 | 17,002 | 58,246 | 48,476 |
Interest expense | 1,051 | 1,515 | 3,208 | 9,948 |
Other (income) expense, net | -3,768 | -57 | -4,055 | 907 |
Income before provision for income taxes | 18,900 | 15,544 | 59,093 | 37,621 |
Provision for income taxes | 4,888 | 4,473 | 17,811 | 11,135 |
Net income | 14,012 | 11,071 | 41,282 | 26,486 |
Earnings per share: | ' | ' | ' | ' |
Basic | $0.56 | $0.46 | $1.67 | $1.11 |
Diluted | $0.54 | $0.44 | $1.60 | $1.06 |
Weighted average shares outstanding: | ' | ' | ' | ' |
Basic | 24,899 | 24,047 | 24,784 | 23,904 |
Diluted | 25,923 | 25,188 | 25,850 | 25,017 |
Comprehensive Income | ' | ' | ' | ' |
Net income | 14,012 | 11,071 | 41,282 | 26,486 |
Foreign currency translation gain (loss) | -3,211 | 3,579 | -2,422 | 1,147 |
Net change in cash flow hedges, net of tax | -49 | -403 | 114 | -365 |
Defined benefit plan liability adjustment, net of tax | 0 | 0 | 0 | 597 |
Other comprehensive income (loss) | -3,260 | 3,176 | -2,308 | 1,379 |
Comprehensive income | $10,752 | $14,247 | $38,974 | $27,865 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Oct. 03, 2014 | Sep. 27, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $41,282 | $26,486 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 27,943 | 26,658 |
Debt related amortization included in interest expense | 580 | 6,171 |
Stock-based compensation | 10,531 | 11,413 |
Other (gains) losses | -7,191 | 184 |
Deferred income taxes | -3,000 | -31,197 |
Changes in operating assets and liabilities, net of acquisitions: | ' | ' |
Accounts receivable | -8,460 | -9,901 |
Inventories | -7,111 | -15,999 |
Prepaid expenses and other current assets | -23 | 1,010 |
Accounts payable | -1,311 | -7,220 |
Accrued expenses | -3,627 | -1,732 |
Income taxes payable | 5,070 | 10,202 |
Net cash provided by operating activities | 54,683 | 16,075 |
Cash flows from investing activities: | ' | ' |
Acquisition of property, plant and equipment | -16,029 | -14,953 |
Proceeds from sale of orthopaedic product lines (Note 9) | 2,655 | 3,228 |
(Purchase of) proceeds from sale of cost and equity method investments | 4,306 | -1,928 |
Acquisitions, net of cash acquired (Note 2) | -15,801 | 0 |
Other investing activities | 0 | -194 |
Net cash used in investing activities | -24,869 | -13,847 |
Cash flows from financing activities: | ' | ' |
Principal payments of long-term debt | -7,500 | -445,782 |
Proceeds from issuance of long-term debt | 0 | 425,000 |
Issuance of common stock | 5,705 | 6,213 |
Payment of debt issuance costs | 0 | -2,697 |
Other financing activities | -1,059 | -327 |
Net cash used in financing activities | -2,854 | -17,593 |
Effect of foreign currency exchange rates on cash and cash equivalents | -843 | 54 |
Net increase (decrease) in cash and cash equivalents | 26,117 | -15,311 |
Cash and cash equivalents, beginning of period | 35,465 | 20,284 |
Cash and cash equivalents, end of period | $61,582 | $4,973 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
In Thousands, unless otherwise specified | ||||||
Balance at Jan. 03, 2014 | $542,055 | $24 | $344,915 | ($1,232) | $183,990 | $14,358 |
Balance, shares at Jan. 03, 2014 | ' | 24,459 | ' | -37 | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Stock-based compensation | 6,800 | ' | 6,800 | ' | ' | ' |
Net shares issued under stock incentive plans, shares | ' | 500 | ' | -74 | ' | ' |
Net shares issued under stock incentive plans | 4,892 | 1 | 8,594 | -3,703 | ' | ' |
Shares contributed to 401(k), shares | ' | ' | ' | 95 | ' | ' |
Shares contributed to 401(k) Plan | 4,341 | ' | 126 | 4,215 | ' | ' |
Net income | 41,282 | ' | ' | ' | 41,282 | ' |
Total other comprehensive loss | -2,308 | ' | ' | ' | ' | -2,308 |
Balance at Oct. 03, 2014 | $597,062 | $25 | $360,435 | ($720) | $225,272 | $12,050 |
Balance, shares at Oct. 03, 2014 | ' | 24,959 | ' | -16 | ' | ' |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Oct. 03, 2014 | |
Accounting Policies [Abstract] | ' |
BASIS OF PRESENTATION | ' |
BASIS OF PRESENTATION | |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information (Accounting Standards Codification (“ASC”) 270, Interim Reporting) and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information necessary for a full presentation of financial position, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Operating results for interim periods are not necessarily indicative of results that may be expected for the fiscal year as a whole. In the opinion of management, the condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the results of Greatbatch, Inc. and its wholly-owned subsidiary, Greatbatch Ltd. (collectively “Greatbatch” or the “Company”), for the periods presented. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, sales, expenses, and related disclosures at the date of the financial statements and during the reporting period. Actual results could differ materially from these estimates. The January 3, 2014 condensed consolidated balance sheet data was derived from audited consolidated financial statements but does not include all disclosures required by GAAP. For further information, refer to the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended January 3, 2014. The Company utilizes a fifty-two, fifty-three week fiscal year ending on the Friday nearest December 31st. The third quarter and year-to-date periods of 2014 and 2013 each contained 13 weeks and 39 weeks, respectively, and ended on October 3, and September 27, respectively. |
Acquisitions
Acquisitions | 9 Months Ended | |||||||||||||||
Oct. 03, 2014 | ||||||||||||||||
Business Combinations [Abstract] | ' | |||||||||||||||
ACQUISITIONS | ' | |||||||||||||||
ACQUISITION | ||||||||||||||||
On August 12, 2014 the Company purchased all of the outstanding common stock of Centro de Construcción de Cardioestimuladores del Uruguay (“CCC”), headquartered in Montevideo, Uruguay. CCC is an active implantable neuromodulation medical device systems developer and manufacturer that produces a range of medical devices including implantable pulse generators, programmer systems, battery chargers, patient wands and leads. This acquisition allows the Company to more broadly partner with medical device companies, complements the Company’s core discrete technology offerings and enhances the Company’s medical device innovation efforts. | ||||||||||||||||
This transaction was accounted for under the acquisition method of accounting. Accordingly, the operating results of CCC have been included in the Company’s QiG segment from the date of acquisition. For the three and nine months ended October 3, 2014, CCC added approximately $1.6 million to the Company’s revenue and increased the Company’s net income by $0.4 million. The aggregate purchase price of $19.6 million was funded with cash on hand. | ||||||||||||||||
The cost of the acquisition was preliminarily allocated to the assets acquired and liabilities assumed from CCC based on their fair values as of the closing date of the acquisition, with the amount exceeding the fair value of the net assets acquired being recorded as goodwill. The value assigned to certain assets and liabilities are preliminary and are subject to adjustment as additional information is obtained, including, but not limited to, the finalization of: the intangible asset valuation; net assets acquired; the working capital adjustment as defined in the purchase agreement; and pre-acquisition tax positions. The valuation is expected to be finalized in 2015. When the valuation is finalized, any changes to the preliminary valuation of assets acquired or liabilities assumed may result in material adjustments to the fair value of the intangible assets acquired, as well as goodwill. | ||||||||||||||||
The following table summarizes the preliminary allocation of the CCC purchase price to the assets acquired and liabilities assumed as of the acquisition date (in thousands): | ||||||||||||||||
Assets acquired | ||||||||||||||||
Current assets | $ | 9,519 | ||||||||||||||
Property, plant and equipment | 1,106 | |||||||||||||||
Amortizing intangible assets | 6,100 | |||||||||||||||
Goodwill | 8,321 | |||||||||||||||
Total assets acquired | 25,046 | |||||||||||||||
Liabilities assumed | ||||||||||||||||
Current liabilities | 3,874 | |||||||||||||||
Deferred income taxes | 1,590 | |||||||||||||||
Total liabilities assumed | 5,464 | |||||||||||||||
Net assets acquired | $ | 19,582 | ||||||||||||||
The preliminary fair values of the assets acquired were determined using one of three valuation approaches: market, income or cost. The selection of a particular method for a given asset depended on the reliability of available data and the nature of the asset, among other considerations. | ||||||||||||||||
The market approach estimates the value for a subject asset based on available market pricing for comparable assets. The income approach estimates the value for a subject asset based on the present value of cash flows projected to be generated by the asset. The projected cash flows were discounted at a required rate of return that reflects the relative risk of the asset and the time value of money. The projected cash flows for each asset considered multiple factors from the perspective of a marketplace participant including revenue projections from existing customers, attrition trends, technology life-cycle assumptions, marginal tax rates and expected profit margins giving consideration to historical and expected margins. The cost approach estimates the value for a subject asset based on the cost to replace the asset and reflects the estimated reproduction or replacement cost for the asset, less an allowance for loss in value due to depreciation or obsolescence, with specific consideration given to economic obsolescence if indicated. These fair value measurement approaches are based on significant unobservable inputs, including management estimates and assumptions. | ||||||||||||||||
Current assets and liabilities - The fair value of current assets and liabilities, excluding inventory, was assumed to approximate their carrying value as of the acquisition date due to the short-term nature of these assets and liabilities. | ||||||||||||||||
The fair value of in-process and finished goods inventory acquired was estimated by applying a version of the market approach called the comparable sales method. This approach estimates the fair value of the assets by calculating the potential revenue generated from selling the inventory and subtracting from it the costs related to the completion and sale of that inventory and a reasonable profit allowance. Based upon this methodology, the Company recorded the inventory acquired at fair value resulting in an increase in inventory of $0.3 million. | ||||||||||||||||
Intangible assets - The purchase price was allocated to intangible assets as follows (dollars in thousands): | ||||||||||||||||
Amortizing Intangible Assets | Fair | Weighted | Weighted | |||||||||||||
Value | Average | Average | ||||||||||||||
Assigned | Amortization | Discount | ||||||||||||||
Period (Years) | Rate | |||||||||||||||
Technology | $ | 1,400 | 10 | 18% | ||||||||||||
Customer lists | 4,600 | 10 | 18% | |||||||||||||
Trademarks and tradenames | 100 | 2 | 18% | |||||||||||||
6,100 | ||||||||||||||||
Technology - Technology consists of technical processes, unpatented technology, manufacturing know-how, trade secrets and the understanding with respect to products or processes that have been developed by CCC and that will be leveraged in current and future products. The fair value of technology acquired was determined utilizing the relief from royalty method, a form of the income approach, with a royalty rate of 3%. The weighted average amortization period of the technology is based upon management’s estimate of the product life cycle associated with technology and patents before they will be replaced by new technologies. | ||||||||||||||||
Customer lists - Customer lists represent the estimated fair value of non-contractual customer relationships CCC has as of the acquisition date. The primary customers of CCC include medical device companies in various geographic locations around the world. These relationships were valued separately from goodwill at the amount that an independent third party would be willing to pay for these relationships. The fair value of customer lists was determined using the multi-period excess-earnings method, a form of the income approach. The weighted average amortization period of the existing customer base was based upon the historical customer annual attrition rate of 15%, as well as management’s understanding of the industry and product life cycles. | ||||||||||||||||
Trademarks and tradenames – Trademarks and tradenames represent the estimated fair value of corporate and product names acquired from CCC. These tradenames were valued separately from goodwill at the amount that an independent third party would be willing to pay for use of these names. The fair value of the trademarks and tradenames was determined by utilizing the relief from royalty method, a form of the income approach, with a 0.5% royalty rate. | ||||||||||||||||
Goodwill - The excess of the purchase price over the fair value of net tangible and intangible assets acquired and liabilities assumed was allocated to goodwill. Various factors contributed to the establishment of goodwill, including: the value of CCC's highly trained assembled work force and management team; the incremental value that CCC’s technology will bring to QiG's medical devices; and the expected revenue growth over time that is attributable to increased market penetration from future products and customers for Greatbatch Medical. The goodwill acquired in connection with the CCC acquisition was allocated to the QiG business segment and is not deductible for tax purposes. | ||||||||||||||||
Pro Forma Results (Unaudited) | ||||||||||||||||
The following unaudited pro forma information presents the consolidated results of operations of the Company and CCC as if that acquisition occurred as of the beginning of fiscal year 2013 (in thousands, except per share amounts): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
3-Oct-14 | 27-Sep-13 | 3-Oct-14 | 27-Sep-13 | |||||||||||||
Sales | $ | 173,413 | $ | 171,158 | $ | 526,631 | $ | 497,610 | ||||||||
Net income | 14,219 | 11,407 | 42,165 | 27,495 | ||||||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.57 | $ | 0.47 | 1.7 | 1.15 | ||||||||||
Diluted | $ | 0.55 | $ | 0.45 | 1.63 | 1.1 | ||||||||||
The results prior to the acquisition date have been adjusted to include the pro forma impact of the amortization of acquired intangible assets based on the purchase price allocations and the impact of income taxes on the pro forma adjustments utilizing the applicable statutory tax rate. The unaudited pro forma consolidated basic and diluted earnings per share calculations are based on the consolidated basic and diluted weighted average shares of Greatbatch. | ||||||||||||||||
The unaudited pro forma results are presented for illustrative purposes only and do not reflect the realization of potential cost savings or any related integration costs. Certain cost savings may result from the acquisition; however, there can be no assurance that these cost savings will be achieved. These pro forma results do not purport to be indicative of the results that would have been obtained in the periods presented, or to be indicative of results that may be obtained in the future. |
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 9 Months Ended | |||||||
Oct. 03, 2014 | ||||||||
Supplemental Cash Flow Elements [Abstract] | ' | |||||||
SUPPLEMENTAL CASH FLOW INFORMATION | ' | |||||||
SUPPLEMENTAL CASH FLOW INFORMATION | ||||||||
Nine Months Ended | ||||||||
(in thousands) | October 3, 2014 | September 27, 2013 | ||||||
Noncash investing and financing activities: | ||||||||
Common stock contributed to 401(k) Plan | $ | 4,341 | $ | 2,477 | ||||
Property, plant and equipment purchases included in accounts payable | 2,618 | 711 | ||||||
Cash paid during the period for: | ||||||||
Interest | $ | 2,736 | $ | 4,388 | ||||
Income taxes | 11,791 | 31,755 | ||||||
Acquisition of noncash assets | $ | 21,282 | $ | — | ||||
Liabilities assumed | 5,464 | — | ||||||
Inventories
Inventories | 9 Months Ended | |||||||
Oct. 03, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
INVENTORIES | ' | |||||||
INVENTORIES | ||||||||
Inventories are comprised of the following (in thousands): | ||||||||
As of | ||||||||
3-Oct-14 | 3-Jan-14 | |||||||
Raw materials | $ | 74,718 | $ | 67,939 | ||||
Work-in-process | 39,604 | 36,670 | ||||||
Finished goods | 14,405 | 13,749 | ||||||
Total | $ | 128,727 | $ | 118,358 | ||||
Intangible_Assets
Intangible Assets | 9 Months Ended | |||||||||||||||
Oct. 03, 2014 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
INTANGIBLE ASSETS | ' | |||||||||||||||
INTANGIBLE ASSETS | ||||||||||||||||
Amortizing intangible assets are comprised of the following (in thousands): | ||||||||||||||||
Gross | Accumulated | Foreign | Net | |||||||||||||
Carrying | Amortization | Currency | Carrying | |||||||||||||
Amount | Translation | Amount | ||||||||||||||
At October 3, 2014 | ||||||||||||||||
Technology and patents | $ | 95,776 | $ | (74,287 | ) | $ | 1,966 | $ | 23,455 | |||||||
Customer lists | 72,857 | (29,705 | ) | 1,374 | 44,526 | |||||||||||
Other | 4,534 | (4,555 | ) | 803 | 782 | |||||||||||
Total amortizing intangible assets | $ | 173,167 | $ | (108,547 | ) | $ | 4,143 | $ | 68,763 | |||||||
At January 3, 2014 | ||||||||||||||||
Technology and patents | $ | 97,376 | $ | (69,026 | ) | $ | 1,980 | $ | 30,330 | |||||||
Customer lists | 68,257 | (24,671 | ) | 1,367 | 44,953 | |||||||||||
Other | 4,434 | (4,399 | ) | 804 | 839 | |||||||||||
Total amortizing intangible assets | $ | 170,067 | $ | (98,096 | ) | $ | 4,151 | $ | 76,122 | |||||||
Aggregate intangible asset amortization expense is comprised of the following (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
3-Oct-14 | 27-Sep-13 | 3-Oct-14 | 27-Sep-13 | |||||||||||||
Cost of sales | $ | 1,567 | $ | 1,668 | $ | 4,696 | $ | 5,207 | ||||||||
Selling, general and administrative expenses | 1,756 | 1,446 | 5,190 | 4,343 | ||||||||||||
Research, development and engineering costs, net | 164 | 137 | 565 | 409 | ||||||||||||
Total intangible asset amortization expense | $ | 3,487 | $ | 3,251 | $ | 10,451 | $ | 9,959 | ||||||||
Estimated future intangible asset amortization expense based on the current carrying value is as follows (in thousands): | ||||||||||||||||
Estimated | ||||||||||||||||
Amortization | ||||||||||||||||
Expense | ||||||||||||||||
Remainder of 2014 | $ | 3,426 | ||||||||||||||
2015 | 12,988 | |||||||||||||||
2016 | 10,676 | |||||||||||||||
2017 | 9,520 | |||||||||||||||
2018 | 7,232 | |||||||||||||||
Thereafter | 24,921 | |||||||||||||||
Total estimated amortization expense | $ | 68,763 | ||||||||||||||
As of January 3, 2014, the Company had recorded within Other Long-Term Liabilities $4 million of contingent liabilities incurred in connection with technology purchases made in previous years. During the third quarter of 2014, the Company reversed $3 million of these contingent liabilities as a result of certain performance targets not being achieved, which reduced the technology asset recorded at the time of the asset acquisition. | ||||||||||||||||
Indefinite-lived intangible assets are comprised of the following (in thousands): | ||||||||||||||||
Trademarks | ||||||||||||||||
and | ||||||||||||||||
Tradenames | ||||||||||||||||
At January 3, 2014 | $ | 20,288 | ||||||||||||||
At October 3, 2014 | $ | 20,288 | ||||||||||||||
The change in goodwill is as follows (in thousands): | ||||||||||||||||
Greatbatch Medical | QiG | Total | ||||||||||||||
At January 3, 2014 | $ | 304,856 | $ | 41,800 | $ | 346,656 | ||||||||||
Goodwill acquired | — | 8,321 | 8,321 | |||||||||||||
Foreign currency translation | (394 | ) | — | (394 | ) | |||||||||||
At October 3, 2014 | $ | 304,462 | $ | 50,121 | $ | 354,583 | ||||||||||
Debt
Debt | 9 Months Ended | |||||||||||||||||||||
Oct. 03, 2014 | ||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||
DEBT | ' | |||||||||||||||||||||
DEBT | ||||||||||||||||||||||
Long-term debt is comprised of the following (in thousands): | ||||||||||||||||||||||
As of | ||||||||||||||||||||||
3-Oct-14 | 3-Jan-14 | |||||||||||||||||||||
Revolving line of credit | $ | — | $ | — | ||||||||||||||||||
Variable rate term loan | 190,000 | 197,500 | ||||||||||||||||||||
Total long-term debt | $ | 190,000 | $ | 197,500 | ||||||||||||||||||
Credit Facility – In September 2013, the Company amended and extended its credit facility (the “Credit Facility”). The new Credit Facility provides a $300 million revolving credit facility (the “Revolving Credit Facility”), a $200 million term loan (the “Term Loan”), a $15 million letter of credit subfacility, and a $15 million swingline subfacility. The Revolving Credit Facility can be increased by $200 million upon the Company’s request and approval by the lenders. The Revolving Credit Facility has a maturity date of September 20, 2018, which may be extended to September 20, 2019 upon notice by the Company and subject to certain conditions. The principal of the Term Loan is payable in quarterly installments as specified in the Credit Facility until its maturity date of September 20, 2019, when the unpaid balance is due in full. | ||||||||||||||||||||||
The Credit Facility is secured by the Company’s non-realty assets including cash, accounts receivable and inventories. Interest rates on the Revolving Credit Facility and Term Loan are, at the Company’s option either at: (i) the prime rate plus the applicable margin, which ranges between 0.0% and 0.75%, based on the Company’s total leverage ratio or (ii) the LIBOR rate plus the applicable margin, which ranges between 1.375% and 2.75%, based on the Company’s total leverage ratio. Loans under the swingline subfacility will bear interest at the prime rate plus the applicable margin, which ranges between 0.0% and 0.75%, based on the Company’s total leverage ratio. The Company is also required to pay a commitment fee, which varies between 0.175% and 0.25% depending on the Company’s total leverage ratio. | ||||||||||||||||||||||
The Credit Facility contains limitations on the incurrence of indebtedness, liens and licensing of intellectual property, investments and certain payments. The Credit Facility permits the Company to engage in the following activities up to an aggregate amount of $300 million: 1) permitted acquisitions in the aggregate not to exceed $250 million; 2) other investments in the aggregate not to exceed $100 million; 3) stock repurchases and dividends not to exceed $150 million in the aggregate; and 4) investments in foreign subsidiaries not to exceed $20 million in the aggregate. At any time that the total leverage ratio of the Company for the two most recently ended fiscal quarters is less than 2.75 to 1.0, the Company may make an election to reset each of the amounts specified above. Additionally, these limitations can be waived upon the Company’s request and approval of a majority of the lenders. As of October 3, 2014, the Company had available to it 100% of the above limits except for the aggregate limit and acquisitions limit which are now $280 million and $230 million, respectively. | ||||||||||||||||||||||
The Credit Facility requires the Company to maintain a rolling four quarter ratio of adjusted EBITDA to interest expense of at least 3.0 to 1.0, and a total leverage ratio of not greater than 4.5 to 1.0 decreasing to not greater than 4.25 to 1.0 after January 2, 2016. The calculation of adjusted EBITDA and total leverage ratio excludes non-cash charges, extraordinary, unusual, or non-recurring expenses or losses, non-cash stock-based compensation, and non-recurring expenses or charges incurred in connection with permitted acquisitions. As of October 3, 2014, the Company was in compliance with all covenants under the Credit Facility. | ||||||||||||||||||||||
The Credit Facility contains customary events of default. Upon the occurrence and during the continuance of an event of default, a majority of the lenders may declare the outstanding advances and all other obligations under the Credit Facility immediately due and payable. | ||||||||||||||||||||||
As of October 3, 2014, the weighted average interest rate on borrowings under the Credit Facility, which does not take into account the impact of the Company’s interest rate swap, was 1.56%. As of October 3, 2014, the Company had $300 million of borrowing capacity available under the Revolving Credit Facility. This borrowing capacity may vary from period to period based upon the debt and EBITDA levels of the Company, which impacts the covenant calculations described above. | ||||||||||||||||||||||
Interest Rate Swap – From time to time, the Company enters into interest rate swap agreements in order to hedge against potential changes in cash flows on the outstanding borrowings on the Credit Facility. The variable rate received on the interest rate swaps and the variable rate paid on the debt have the same rate of interest, excluding the credit spread, and resets and pays interest on the same date. During 2012, the Company entered into a three-year $150 million interest rate swap, which amortizes $50 million per year. This swap was entered into in order to hedge against potential changes in cash flows on the outstanding Credit Facility borrowings, which are also indexed to the one-month LIBOR rate. This swap is being accounted for as a cash flow hedge. Information regarding the Company’s outstanding interest rate swap as of October 3, 2014 is as follows (dollars in thousands): | ||||||||||||||||||||||
Instrument | Type of | Notional | Start | End | Pay | Current | Fair Value October 3, 2014 | Balance | ||||||||||||||
Hedge | Amount | Date | Date | Fixed | Receive | Sheet Location | ||||||||||||||||
Rate | Floating | |||||||||||||||||||||
Rate | ||||||||||||||||||||||
Interest rate swap | Cash flow | $ | 100,000 | 13-Feb | 16-Feb | 0.573 | % | 0.154 | % | $ | (191 | ) | Other Long-Term Liabilities | |||||||||
The estimated fair value of the interest rate swap agreement represents the amount the Company expects to receive (pay) to terminate the contract. No portion of the change in fair value of the Company’s interest rate swap during the nine months ended October 3, 2014 and September 27, 2013 was considered ineffective. The amount recorded as Interest Expense during the nine months ended October 3, 2014 and September 27, 2013 related to the Company’s interest rate swap was $0.3 million. | ||||||||||||||||||||||
Subsequent Event - On November 3, 2014, the Company entered into an additional interest rate swap in order to hedge against potential changes in cash flows on the outstanding borrowings under the Credit Facility. The first $45 million of notional amount of the swap is effective February 20, 2015 and the second $45 million of notional amount is effective February 22, 2016. The notional amount of the swap amortizes $10 million per year beginning on February 21, 2017 with the remaining settled on the termination date of the swap agreement on September 20, 2019. Under the terms of the swap agreement the Company will pay a fixed interest rate of 1.921% and receive a floating interest rate equal to the one-month LIBOR rate. The variable rate received on the interest rate swaps and the variable rate paid on the Credit Facility will have the same rate of interest, excluding the credit spread, and will reset and pay interest on the same date. The swap will be accounted for as a cash flow hedge. | ||||||||||||||||||||||
The expected future minimum principal payments under the Term Loan as of October 3, 2014 are as follows (in thousands): | ||||||||||||||||||||||
Remainder of 2014 | $ | 2,500 | ||||||||||||||||||||
2015 | 11,250 | |||||||||||||||||||||
2016 | 16,250 | |||||||||||||||||||||
2017 | 20,000 | |||||||||||||||||||||
2018 | 20,000 | |||||||||||||||||||||
Thereafter | 120,000 | |||||||||||||||||||||
Total | $ | 190,000 | ||||||||||||||||||||
The Company has the ability and intent to use availability under the Revolving Credit Facility to fund principal payments on the Term Loan. As such, the entire balance of the Term Loan is classified as a non-current liability in the condensed consolidated balance sheets. | ||||||||||||||||||||||
Convertible Subordinated Notes – In March 2007, the Company issued $197.8 million of convertible subordinated notes (“CSN”) at a 5% discount. CSN accrued interest at 2.25% per annum. The effective interest rate of CSN, which took into consideration the amortization of the discount and deferred fees related to the issuance of these notes, was 8.5%. On February 20, 2013, the Company redeemed all outstanding CSN. | ||||||||||||||||||||||
The contractual interest and discount amortization for CSN were as follows (in thousands): | ||||||||||||||||||||||
Three Months ended | Nine Months Ended | |||||||||||||||||||||
3-Oct-14 | 27-Sep-13 | 3-Oct-14 | 27-Sep-13 | |||||||||||||||||||
Contractual interest | $ | — | $ | — | $ | — | $ | 634 | ||||||||||||||
Discount amortization | — | — | — | 5,368 | ||||||||||||||||||
Deferred Financing Fees - The change in deferred financing fees is as follows (in thousands): | ||||||||||||||||||||||
At January 3, 2014 | $ | 3,860 | ||||||||||||||||||||
Amortization during the period | (580 | ) | ||||||||||||||||||||
At October 3, 2014 | $ | 3,280 | ||||||||||||||||||||
Defined_Benefit_Plans
Defined Benefit Plans | 9 Months Ended | |||||||||||||||
Oct. 03, 2014 | ||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ' | |||||||||||||||
DEFINED BENEFIT PLANS | ' | |||||||||||||||
DEFINED BENEFIT PLANS | ||||||||||||||||
The Company is required to provide its employees located in Switzerland, Mexico and France certain statutorily mandated defined benefits. Under these plans, benefits accrue to employees based upon years of service, position, age and compensation. The defined benefit plan provided to employees located in Switzerland is a funded contributory plan while the plans that provide benefits to employees located in Mexico and France are unfunded and noncontributory. The liability and corresponding expense related to these benefit plans is based on actuarial computations of current and future benefits for employees. | ||||||||||||||||
During 2012, the Company transferred most major functions performed at its facilities in Switzerland into other existing facilities. As a result, the Company curtailed its defined benefit plan provided to employees at those Swiss facilities and recognized a curtailment gain during 2013. In accordance with ASC 715, this gain was recognized in Other Operating Expenses, Net as the related employees were terminated. Refer to Note 9 "Other Operating Expenses, Net" for further information. | ||||||||||||||||
The change in net defined benefit plan liability is as follows (in thousands): | ||||||||||||||||
At January 3, 2014 | $ | 1,691 | ||||||||||||||
Net defined benefit cost | 229 | |||||||||||||||
Benefit payments | (96 | ) | ||||||||||||||
Foreign currency translation | (153 | ) | ||||||||||||||
At October 3, 2014 | $ | 1,671 | ||||||||||||||
Net defined benefit cost (income) is comprised of the following (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
3-Oct-14 | 27-Sep-13 | 3-Oct-14 | 27-Sep-13 | |||||||||||||
Service cost | $ | 51 | $ | 76 | $ | 155 | $ | 227 | ||||||||
Interest cost | 18 | 41 | 57 | 144 | ||||||||||||
Curtailment gain (Other Operating Expenses, Net) | — | — | — | (1,150 | ) | |||||||||||
Amortization of net loss | 6 | — | 17 | — | ||||||||||||
Net defined benefit (income) cost | $ | 75 | $ | 117 | $ | 229 | $ | (779 | ) | |||||||
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | |||||||||||||||
Oct. 03, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
STOCK-BASED COMPENSATION | ' | |||||||||||||||
STOCK-BASED COMPENSATION | ||||||||||||||||
The components and classification of stock-based compensation expense were as follows (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
3-Oct-14 | 27-Sep-13 | 3-Oct-14 | 27-Sep-13 | |||||||||||||
Stock options | $ | 595 | $ | 1,374 | $ | 1,811 | $ | 2,784 | ||||||||
Restricted stock and units | 1,850 | 2,013 | 5,008 | 4,958 | ||||||||||||
401(k) Plan stock contribution | 1,357 | 679 | 3,712 | 3,671 | ||||||||||||
Total stock-based compensation expense | $ | 3,802 | $ | 4,066 | $ | 10,531 | $ | 11,413 | ||||||||
Cost of sales | $ | 1,129 | $ | 1,117 | $ | 3,187 | $ | 3,246 | ||||||||
Selling, general and administrative expenses | 1,951 | 1,598 | 5,872 | 6,052 | ||||||||||||
Research, development and engineering costs, net | 429 | 215 | 1,179 | 979 | ||||||||||||
Modification expense – Other Operating Expenses, Net (Note 9) | 293 | 1,136 | 293 | 1,136 | ||||||||||||
Total stock-based compensation expense | $ | 3,802 | $ | 4,066 | $ | 10,531 | $ | 11,413 | ||||||||
The weighted average fair value and assumptions used to value options granted are as follows: | ||||||||||||||||
Nine Months Ended | ||||||||||||||||
3-Oct-14 | 27-Sep-13 | |||||||||||||||
Weighted average fair value | $ | 16.43 | $ | 8.38 | ||||||||||||
Risk-free interest rate | 1.73 | % | 0.73 | % | ||||||||||||
Expected volatility | 39 | % | 39 | % | ||||||||||||
Expected life (in years) | 5 | 5 | ||||||||||||||
Expected dividend yield | — | % | — | % | ||||||||||||
The following table summarizes time-vested stock option activity: | ||||||||||||||||
Number of | Weighted | Weighted | Aggregate | |||||||||||||
Time-Vested | Average | Average | Intrinsic | |||||||||||||
Stock | Exercise | Remaining | Value | |||||||||||||
Options | Price | Contractual | (In Millions) | |||||||||||||
Life | ||||||||||||||||
(In Years) | ||||||||||||||||
Outstanding at January 3, 2014 | 1,616,409 | $ | 22.92 | |||||||||||||
Granted | 183,571 | 43.84 | ||||||||||||||
Exercised | (191,501 | ) | 22.94 | |||||||||||||
Forfeited or expired | (33,279 | ) | 27.82 | |||||||||||||
Outstanding at October 3, 2014 | 1,575,200 | 25.26 | 6.3 | $ | 28.9 | |||||||||||
Exercisable at October 3, 2014 | 1,159,129 | 23.09 | 5.5 | $ | 23.7 | |||||||||||
The following table summarizes performance-vested stock option activity: | ||||||||||||||||
Number of | Weighted | Weighted | Aggregate | |||||||||||||
Performance- | Average | Average | Intrinsic | |||||||||||||
Vested Stock | Exercise | Remaining | Value | |||||||||||||
Options | Price | Contractual | (In Millions) | |||||||||||||
Life | ||||||||||||||||
(In Years) | ||||||||||||||||
Outstanding at January 3, 2014 | 177,261 | $ | 23.27 | |||||||||||||
Exercised | (56,243 | ) | 23.34 | |||||||||||||
Outstanding at October 3, 2014 | 121,018 | 23.25 | 3.2 | $ | 2.5 | |||||||||||
Exercisable at October 3, 2014 | 121,018 | 23.25 | 3.2 | $ | 2.5 | |||||||||||
The following table summarizes time-vested restricted stock and restricted stock unit activity: | ||||||||||||||||
Time-Vested | Weighted | |||||||||||||||
Activity | Average | |||||||||||||||
Fair Value | ||||||||||||||||
Nonvested at January 3, 2014 | 67,575 | $ | 26.37 | |||||||||||||
Granted | 63,817 | 44.78 | ||||||||||||||
Vested | (14,118 | ) | 43.8 | |||||||||||||
Forfeited | (7,073 | ) | 33.79 | |||||||||||||
Nonvested at October 3, 2014 | 110,201 | 34.32 | ||||||||||||||
The following table summarizes performance-vested restricted stock and restricted stock unit activity: | ||||||||||||||||
Performance- | Weighted | |||||||||||||||
Vested | Average | |||||||||||||||
Activity | Fair Value | |||||||||||||||
Nonvested at January 3, 2014 | 779,678 | $ | 16.41 | |||||||||||||
Granted | 186,825 | 31.33 | ||||||||||||||
Vested | (221,470 | ) | 18.51 | |||||||||||||
Forfeited | (28,870 | ) | 18.42 | |||||||||||||
Nonvested at October 3, 2014 | 716,163 | 19.57 | ||||||||||||||
Other_Operating_Income_Expense
Other Operating (Income) Expenses, Net | 9 Months Ended | |||||||||||||||
Oct. 03, 2014 | ||||||||||||||||
Other Income and Expenses [Abstract] | ' | |||||||||||||||
OTHER OPERATING (INCOME) EXPENSES, NET | ' | |||||||||||||||
OTHER OPERATING EXPENSES, NET | ||||||||||||||||
Other Operating Expenses, Net is comprised of the following (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
3-Oct-14 | 27-Sep-13 | 3-Oct-14 | 27-Sep-13 | |||||||||||||
2014 investments in capacity and capabilities | $ | 2,787 | $ | — | $ | 5,005 | $ | — | ||||||||
2013 operating unit realignment | (31 | ) | 2,214 | 1,004 | 3,066 | |||||||||||
Orthopaedic facility optimization costs | 996 | 1,420 | 1,032 | 6,723 | ||||||||||||
Medical device facility optimization | — | 52 | 11 | 282 | ||||||||||||
ERP system upgrade (income) costs | — | (121 | ) | (82 | ) | 264 | ||||||||||
Acquisition and integration (income) costs | 133 | (522 | ) | (248 | ) | (340 | ) | |||||||||
Asset dispositions, severance and other | 2,291 | 457 | 3,501 | 565 | ||||||||||||
$ | 6,176 | $ | 3,500 | $ | 10,223 | $ | 10,560 | |||||||||
2014 investments in capacity and capabilities. In 2014, the Company announced several initiatives to invest in capacity and capabilities and to better align its resources to meet its customers' needs and drive organic growth and profitability. These included the following: | ||||||||||||||||
• | Functions currently performed at the Company’s facility in Plymouth, MN to manufacture catheters and introducers will transfer into the Company’s existing facility in Tijuana, Mexico by the first half of 2016. | |||||||||||||||
• | Functions currently performed at the Company’s facilities in Beaverton, OR and Raynham, MA to manufacture products for the portable medical market will transfer to a new facility in Tijuana, Mexico by the end of 2015. Products currently manufactured at the Beaverton facility, which do not serve the portable medical market, are planned to transfer to the Company’s Raynham facility. | |||||||||||||||
• | Establishing a R&D hub in the Minneapolis/St. Paul, MN area for the Company's Global R&D QiG - Medical Device Systems team, which will serve as the technical center of expertise for active implantable medical device development, implantable leads design, system level design verification testing, and continuation engineering. As part of this initiative, the design engineering responsibilities currently performed at our Cleveland, OH facility will be transferred to the new R&D hub by the end of 2014. | |||||||||||||||
• | Establishing a commercial operations hub at the Company's global headquarters in Frisco, Texas. This initiative will build upon the investment the Company has made in its global sales and marketing function and is expected to be completed during the first half of 2015. | |||||||||||||||
The total capital investment expected for these initiatives is between $25.0 million and $27.0 million, of which $1.4 million has been expended to date. Total restructuring charges expected to be incurred in connection with this realignment are between $29.0 million and $34.0 million, of which $5.0 million has been incurred to date. Expenses related to this initiative are recorded within the applicable segment and corporate cost centers that the expenditures relate to and include the following: | ||||||||||||||||
•Severance and retention: $7.0 million - $9.0 million; | ||||||||||||||||
•Accelerated depreciation and asset write-offs: $2.0 million - $3.0 million; and | ||||||||||||||||
•Other: $20.0 million - $22.0 million | ||||||||||||||||
Other costs primarily consist of costs to relocate certain equipment and other personnel, duplicate personnel costs, disposal and travel expenditures. All expenses are cash expenditures, except accelerated depreciation and asset write-offs. | ||||||||||||||||
The change in accrued liabilities related to the 2014 investments in capacity and capabilities is as follows (in thousands): | ||||||||||||||||
Severance and | Accelerated | Other | Total | |||||||||||||
Retention | Depreciation/Asset | |||||||||||||||
Write-offs | ||||||||||||||||
At January 3, 2014 | $ | — | $ | — | $ | — | $ | — | ||||||||
Restructuring charges | 1,445 | 33 | 3,527 | 5,005 | ||||||||||||
Write-offs | — | (33 | ) | — | (33 | ) | ||||||||||
Cash payments | (434 | ) | — | (2,838 | ) | (3,272 | ) | |||||||||
At October 3, 2014 | $ | 1,011 | $ | — | $ | 689 | $ | 1,700 | ||||||||
2013 operating unit realignment. In June 2013, the Company initiated a plan to realign its operating structure in order to optimize its continued focus on profitable growth. As part of this initiative, the sales and marketing and operations groups of its former Implantable Medical and Electrochem Solutions (“Electrochem”) reportable segments were combined into one sales and marketing group and one operations group each serving the entire Company. This initiative is expected to be completed by the end of 2014. Total restructuring charges expected to be incurred in connection with this realignment are between $6.6 million and $7.0 million, of which $6.6 million has been incurred to date. Expenses related to this initiative are recorded within the applicable segment and corporate cost centers that the expenditures relate to and include the following: | ||||||||||||||||
• | Severance and retention: $5.0 million – $5.2 million; and | |||||||||||||||
• | Other: $1.6 million – $1.8 million. | |||||||||||||||
Other costs primarily consist of relocation and travel expenditures. | ||||||||||||||||
The change in accrued liabilities related to the 2013 operating unit realignment is as follows (in thousands): | ||||||||||||||||
Severance and | Other | Total | ||||||||||||||
Retention | ||||||||||||||||
At January 3, 2014 | $ | 465 | $ | 746 | $ | 1,211 | ||||||||||
Restructuring charges | 849 | 155 | 1,004 | |||||||||||||
Cash payments | (1,314 | ) | (901 | ) | (2,215 | ) | ||||||||||
At October 3, 2014 | $ | — | $ | — | $ | — | ||||||||||
Orthopaedic facility optimization costs. In 2010, the Company began updating its Indianapolis, IN facility to streamline operations, consolidate two buildings, increase capacity, further expand capabilities and reduce dependence on outside suppliers. This initiative was completed in 2011. | ||||||||||||||||
In 2011, the Company began construction on an orthopaedic manufacturing facility in Fort Wayne, IN and transferred manufacturing operations being performed at its Columbia City, IN location into this new facility. This initiative was completed in 2012. | ||||||||||||||||
During 2012, the Company transferred manufacturing and development operations performed at its facilities in Orvin and Corgemont, Switzerland into existing facilities in Fort Wayne, IN and Tijuana, Mexico. In connection with this consolidation, in 2012, the Company entered into an agreement to sell assets related to certain non-core Swiss orthopaedic product lines to an independent third party including inventory, machinery, equipment, customer lists and technology related to these product lines. This transaction closed during the first quarter of 2013. The Company received payments totaling $4.7 million in 2013 in connection with this transaction and the third party assumed $2.4 million of severance liabilities. During the first half of 2014, the Company recognized a gain and received an additional contingent payment of $2.7 million from the third party in connection with the achievement of certain milestones defined in the sales agreement. In addition, during the first quarter of 2013, the Company recognized a pension curtailment gain in connection with this consolidation. Refer to Note 7 “Defined Benefit Plans” for further information. These gains were recognized in Other Operating Expenses, Net in the Condensed Consolidated Statements of Operations. | ||||||||||||||||
During 2013, the Company initiated a project to expand its Chaumont, France facility in order to enhance its capabilities and fulfill larger volume customer supply agreements. This initiative is expected to be completed over the next three years. | ||||||||||||||||
The total capital investment expected for these initiatives is between $30 million and $35 million, of which $23.7 million has been expended to date. Total expense expected to be incurred for these initiatives is between $43 million and $48 million, of which $42.0 million has been incurred to date. All expenses are recorded within the Greatbatch Medical segment and are expected to include the following: | ||||||||||||||||
• | Severance and retention: approximately $11 million; | |||||||||||||||
• | Accelerated depreciation and asset write-offs: approximately $13 million; and | |||||||||||||||
• | Other: $19 million – $24 million. | |||||||||||||||
Other costs include production inefficiencies, moving, revalidation, personnel, training and travel costs associated with these consolidation projects. | ||||||||||||||||
All expenses are cash expenditures, except accelerated depreciation and asset write-offs. The change in accrued liabilities related to the orthopaedic facility optimization is as follows (in thousands): | ||||||||||||||||
Severance | Accelerated | Other | Total | |||||||||||||
and | Depreciation/Asset | |||||||||||||||
Retention | Write-offs | |||||||||||||||
At January 3, 2014 | $ | — | $ | — | $ | 857 | $ | 857 | ||||||||
Restructuring charges (income) | — | (2,655 | ) | 3,687 | 1,032 | |||||||||||
Cash (payments) receipts | — | 2,655 | (4,004 | ) | (1,349 | ) | ||||||||||
At October 3, 2014 | $ | — | $ | — | $ | 540 | $ | 540 | ||||||||
Medical device facility optimization. Near the end of 2011, the Company initiated plans to upgrade and expand its manufacturing infrastructure in order to support its medical device strategy. This includes the transfer of certain product lines to create additional capacity for the manufacture of medical devices, expansion of two existing facilities, as well as the purchase of equipment to enable the production of medical devices. These initiatives are expected to be completed over the next three months. Total capital investment under these initiatives is expected to be between $12.5 million and $13 million, of which approximately $12.5 million has been expended to date. Total expenses expected to be incurred on these projects is between $1.8 million and $2.0 million, of which $1.8 million has been incurred to date. All expenses are recorded within the Greatbatch Medical segment and are expected to include the following: | ||||||||||||||||
• | Production inefficiencies, moving and revalidation: $0.7 million; | |||||||||||||||
• | Personnel: $0.6 million; and | |||||||||||||||
• | Other: approximately $0.5 million - $0.7 million. | |||||||||||||||
The change in accrued liabilities related to the medical device facility optimization is as follows (in thousands): | ||||||||||||||||
Production | Personnel | Other | Total | |||||||||||||
Inefficiencies, | ||||||||||||||||
Moving and | ||||||||||||||||
Revalidation | ||||||||||||||||
At January 3, 2014 | $ | — | $ | — | $ | — | $ | — | ||||||||
Restructuring charges | — | 1 | 10 | 11 | ||||||||||||
Cash payments | — | (1 | ) | (10 | ) | (11 | ) | |||||||||
At October 3, 2014 | $ | — | $ | — | $ | — | $ | — | ||||||||
ERP system upgrade (income) costs. In 2011, the Company initiated plans to upgrade its existing global ERP system. This initiative was completed during the first half of 2014. Total capital investment expended under this initiative was $4.0 million. Total expenses incurred on this initiative were $5.8 million. Expenses related to this initiative were recorded within the applicable segment and corporate cost centers that the expenditures related to and included the following: | ||||||||||||||||
• | Training and consulting costs: $3.3 million; and | |||||||||||||||
• | Accelerated depreciation and asset write-offs: $2.5 million. | |||||||||||||||
The change in accrued liabilities related to the ERP system upgrade is as follows (in thousands): | ||||||||||||||||
Training & | Accelerated | Total | ||||||||||||||
Consulting | Depreciation/Asset | |||||||||||||||
Costs | Write-offs | |||||||||||||||
At January 3, 2014 | $ | — | $ | — | $ | — | ||||||||||
Restructuring income | (82 | ) | — | (82 | ) | |||||||||||
Cash receipts | 82 | — | 82 | |||||||||||||
At October 3, 2014 | $ | — | $ | — | $ | — | ||||||||||
Acquisition and integration (income) costs. During 2014 and 2013, the Company incurred cost (income) related to the integration of Micro Power Electronics, Inc., NeuroNexus Technologies, Inc., and CCC, which were acquired in December 2011, February 2012, and August 2014, respectively. These expenses were primarily for retention bonuses, travel costs in connection with integration efforts, training, severance, and the change in fair value of the contingent consideration recorded in connection with these acquisitions. Refer to Note 14 “Fair Value Measurements” for discussion on changes in fair value of the contingent consideration, which resulted in net gains being recognized in Other Operating Expenses, Net in the Condensed Consolidated Statements of Operations. | ||||||||||||||||
Asset dispositions, severance and other. During 2014 and 2013, the Company recorded charges in connection with various asset disposals and write downs. During the third quarter of 2014, the Company also incurred $0.8 million of expense related to the separation of the Company's Senior Vice President, Human Resources. Additionally, during the first three quarters of 2014, the Company recorded charges in connection with its business reorganization to align its contract manufacturing operations, which is expected to produce tax savings over the long-term. Costs incurred primarily relate to consulting and IT development, and are expected to be completed by the end of 2014. |
Income_Taxes
Income Taxes | 9 Months Ended |
Oct. 03, 2014 | |
Income Tax Disclosure [Abstract] | ' |
INCOME TAXES | ' |
INCOME TAXES | |
The income tax provision for interim periods is determined using an estimate of the annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the estimate of the annual effective tax rate is updated, and if the estimated effective tax rate changes, a cumulative adjustment is made. There is a potential for volatility of the effective tax rate due to several factors, including changes in the mix of the pre-tax income and the jurisdictions to which it relates, changes in tax laws and foreign tax holidays, business reorganizations, settlements with taxing authorities and foreign currency fluctuations. | |
As of October 3, 2014, the balance of unrecognized tax benefits is approximately $1.6 million. It is reasonably possible that a reduction of up to $0.6 million of the balance of unrecognized tax benefits may occur within the next twelve months as a result of potential audit settlements. Approximately $1.5 million of the balance of unrecognized tax benefits would favorably impact the effective tax rate, net of federal benefit on state issues, if recognized. |
Commitments_And_Contingencies
Commitments And Contingencies | 9 Months Ended | |||||||||||||||||||
Oct. 03, 2014 | ||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | ' | |||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||||||||||
Litigation – On December 21, 2012, the Company and several other unaffiliated parties were named as defendants in a personal injury and wrongful death action filed in the 113th Judicial District Court of Harris County, Texas. The complaint seeks damages alleging marketing and product defects and failure to warn, negligence and gross negligence relating to a product the Company manufactured and sold to a customer, one of the other named defendants. The Company's customer, in turn, incorporated the Greatbatch product into its own product which it sold to its customer, another named defendant. This matter is currently scheduled for trial during the first quarter of 2015. | ||||||||||||||||||||
The Company is indemnified by its customer against any loss in this matter, including costs of defense, which obligation is supported by the customer's product liability insurance coverage in the amount of $5 million. The Company also has its own product liability insurance coverage, subject to a $10 million retention. The Company has meritorious defenses and is vigorously defending the matter. In the event of an adverse judgment, however, the Company could have liability to the extent of the amount of any award its customer is unable to satisfy. To date, the Company has not recorded a reserve in connection with this matter since any potential loss is not currently probable and the range of loss is not reasonably estimable at this time. | ||||||||||||||||||||
The Company is a party to various other legal actions arising in the normal course of business. While the Company does not expect that the ultimate resolution of any of these pending actions will have a material effect on its consolidated results of operations, financial position, or cash flows, litigation is subject to inherent uncertainties and there can be no assurance that any pending legal action, which the Company currently believes to be immaterial, does not become material in the future. | ||||||||||||||||||||
Product Warranties– The Company generally warrants that its products will meet customer specifications and will be free from defects in materials and workmanship. The change in aggregate product warranty liability is as follows (in thousands): | ||||||||||||||||||||
At January 3, 2014 | $ | 1,819 | ||||||||||||||||||
Increase to warranty reserve | 680 | |||||||||||||||||||
Warranty claims paid | (1,934 | ) | ||||||||||||||||||
At October 3, 2014 | $ | 565 | ||||||||||||||||||
Purchase Commitments – Contractual obligations for purchase of goods or services are defined as agreements that are enforceable and legally binding on the Company and that specify all significant terms, including: fixed or minimum quantities to be purchased; fixed, minimum, or variable price provisions; and the approximate timing of the transaction. The Company’s purchase orders are normally based on its current manufacturing needs and are fulfilled by its vendors within short time horizons. The Company also enters into blanket orders with vendors that have preferred pricing and terms, however these orders are normally cancelable without penalty. As of October 3, 2014, the total contractual obligation related to such expenditures is approximately $31.7 million and will primarily be funded by existing cash and cash equivalents, cash flow from operations, or borrowings under the Credit Facility. The Company also enters into contracts for outsourced services; however, the obligations under these contracts were not significant and the contracts generally contain clauses allowing for cancellation without significant penalty. | ||||||||||||||||||||
Workers’ Compensation Trust - The Company was a member of a group self-insurance trust that provided workers’ compensation benefits to its Western New York employees (the “Trust”). Under the Trust agreement, each participating organization has joint and several liability for Trust obligations if the assets of the Trust are not sufficient to cover those obligations. During 2011, the Company was notified by the Trust of its intention to cease operations at the end of 2011, and was assessed a pro-rata share of future costs related to the Trust. Based on actual experience, the Company could receive a refund or be assessed additional contributions for workers’ compensation claims insured by the Trust. Since 2011, the Company has utilized a traditional insurance provider for workers’ compensation coverage. | ||||||||||||||||||||
Operating Leases – The Company is a party to various operating lease agreements for buildings, equipment and software. Estimated future operating lease expense is as follows (in thousands): | ||||||||||||||||||||
Remainder of 2014 | $ | 1,285 | ||||||||||||||||||
2015 | 5,635 | |||||||||||||||||||
2016 | 5,036 | |||||||||||||||||||
2017 | 2,548 | |||||||||||||||||||
2018 | 2,099 | |||||||||||||||||||
Thereafter | 6,352 | |||||||||||||||||||
Total estimated operating lease expense | $ | 22,955 | ||||||||||||||||||
Foreign Currency Contracts – The Company enters into forward contracts to purchase Mexican pesos in order to hedge the risk of peso-denominated payments associated with the operations at its Tijuana, Mexico facility. The impact to the Company’s results of operations from these forward contracts was as follows (in thousands): | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
3-Oct-14 | 27-Sep-13 | 3-Oct-14 | 27-Sep-13 | |||||||||||||||||
Reduction in cost of sales | $ | (48 | ) | $ | (346 | ) | $ | (204 | ) | $ | (908 | ) | ||||||||
Ineffective portion of change in fair value | — | — | — | — | ||||||||||||||||
Instrument | Type of | Aggregate | Start | End | $/Peso | Fair | Balance Sheet Location | |||||||||||||
Hedge | Notional | Date | Date | Value | ||||||||||||||||
Amount | ||||||||||||||||||||
FX Contract | Cash flow | $ | 1,927 | 14-Jan | 14-Dec | 0.0767 | $ | (72 | ) | Accrued expenses | ||||||||||
FX Contract | Cash flow | $ | 1,580 | 14-Jan | 14-Dec | 0.0752 | $ | (30 | ) | Accrued expenses | ||||||||||
Self-Insured Medical Plan – The Company self-funds the medical insurance coverage provided to its U.S. based employees. The risk to the Company is being limited through the use of stop loss insurance, which has specific stop loss coverage per associate for claims in the year exceeding $225 thousand per associate with no annual maximum aggregate stop loss coverage. As of October 3, 2014, the Company had $1.8 million accrued related to the self-insurance portion of its medical plan, which is recorded in Accrued Expenses in the Condensed Consolidated Balance Sheet, and is primarily based upon claim history. |
Earnings_Per_Share_EPS
Earnings Per Share (EPS) | 9 Months Ended | |||||||||||||||
Oct. 03, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
EARNINGS PER SHARE (EPS) | ' | |||||||||||||||
EARNINGS PER SHARE (“EPS”) | ||||||||||||||||
The following table illustrates the calculation of Basic and Diluted EPS (in thousands, except per share amounts): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
3-Oct-14 | 27-Sep-13 | 3-Oct-14 | 27-Sep-13 | |||||||||||||
Numerator for basic and diluted EPS: | ||||||||||||||||
Net income | $ | 14,012 | $ | 11,071 | $ | 41,282 | $ | 26,486 | ||||||||
Denominator for basic EPS: | ||||||||||||||||
Weighted average shares outstanding | 24,899 | 24,047 | 24,784 | 23,904 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Stock options, restricted stock and restricted stock units | 1,024 | 1,141 | 1,066 | 1,113 | ||||||||||||
Denominator for diluted EPS | 25,923 | 25,188 | 25,850 | 25,017 | ||||||||||||
Basic EPS | $ | 0.56 | $ | 0.46 | $ | 1.67 | $ | 1.11 | ||||||||
Diluted EPS | $ | 0.54 | $ | 0.44 | $ | 1.6 | $ | 1.06 | ||||||||
The diluted weighted average share calculations do not include the following securities, which are not dilutive to the EPS calculations or the performance criteria have not been met: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
3-Oct-14 | 27-Sep-13 | 3-Oct-14 | 27-Sep-13 | |||||||||||||
Time-vested stock options, restricted stock and restricted stock units | 163,000 | 43,000 | 177,000 | 59,000 | ||||||||||||
Performance-vested restricted stock units | 4,400 | 27,000 | 3,600 | 26,000 | ||||||||||||
For the 2013 periods, no shares related to CSN were included in the diluted EPS calculations as the average share price of the Company’s common stock for that period did not exceed CSN’s conversion price per share. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 9 Months Ended | |||||||||||||||||||||||
Oct. 03, 2014 | ||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | |||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME | ' | |||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME | ||||||||||||||||||||||||
Accumulated Other Comprehensive Income is comprised of the following (in thousands): | ||||||||||||||||||||||||
Defined | Cash | Foreign | Total | Tax | Net-of-Tax | |||||||||||||||||||
Benefit | Flow | Currency | Pre-Tax | Amount | ||||||||||||||||||||
Plan | Hedges | Translation | Amount | |||||||||||||||||||||
Liability | Adjustment | |||||||||||||||||||||||
At July 4, 2014 | $ | (672 | ) | $ | (218 | ) | $ | 15,741 | $ | 14,851 | $ | 459 | $ | 15,310 | ||||||||||
Unrealized loss on cash flow hedges | — | (133 | ) | — | (133 | ) | 46 | (87 | ) | |||||||||||||||
Realized gain on foreign currency hedges | — | (48 | ) | — | (48 | ) | 17 | (31 | ) | |||||||||||||||
Realized loss on interest rate swap hedges | — | 106 | — | 106 | (37 | ) | 69 | |||||||||||||||||
Foreign currency translation loss | — | — | (3,211 | ) | (3,211 | ) | — | (3,211 | ) | |||||||||||||||
At October 3, 2014 | $ | (672 | ) | $ | (293 | ) | $ | 12,530 | $ | 11,565 | $ | 485 | $ | 12,050 | ||||||||||
Defined | Cash | Foreign | Total | Tax | Net-of-Tax | |||||||||||||||||||
Benefit | Flow | Currency | Pre-Tax | Amount | ||||||||||||||||||||
Plan | Hedges | Translation | Amount | |||||||||||||||||||||
Liability | Adjustment | |||||||||||||||||||||||
At January 3, 2014 | $ | (672 | ) | $ | (468 | ) | $ | 14,952 | $ | 13,812 | $ | 546 | $ | 14,358 | ||||||||||
Unrealized gain on cash flow hedges | — | 35 | — | 35 | (12 | ) | 23 | |||||||||||||||||
Realized gain on foreign currency hedges | — | (204 | ) | — | (204 | ) | 71 | (133 | ) | |||||||||||||||
Realized loss on interest rate swap hedges | — | 344 | — | 344 | (120 | ) | 224 | |||||||||||||||||
Foreign currency translation loss | — | — | (2,422 | ) | (2,422 | ) | — | (2,422 | ) | |||||||||||||||
At October 3, 2014 | $ | (672 | ) | $ | (293 | ) | $ | 12,530 | $ | 11,565 | $ | 485 | $ | 12,050 | ||||||||||
Defined | Cash | Foreign | Total | Tax | Net-of-Tax | |||||||||||||||||||
Benefit | Flow | Currency | Pre-Tax | Amount | ||||||||||||||||||||
Plan | Hedges | Translation | Amount | |||||||||||||||||||||
Liability | Adjustment | |||||||||||||||||||||||
At June 28, 2013 | $ | (365 | ) | $ | 178 | $ | 10,999 | $ | 10,812 | $ | 338 | $ | 11,150 | |||||||||||
Unrealized loss on cash flow hedges | — | (419 | ) | — | (419 | ) | 147 | (272 | ) | |||||||||||||||
Realized gain on foreign currency hedges | — | (346 | ) | — | (346 | ) | 121 | (225 | ) | |||||||||||||||
Realized loss on interest rate swap hedges | — | 145 | — | 145 | (51 | ) | 94 | |||||||||||||||||
Foreign currency translation gain | — | — | 3,579 | 3,579 | — | 3,579 | ||||||||||||||||||
At September 27, 2013 | $ | (365 | ) | $ | (442 | ) | $ | 14,578 | $ | 13,771 | $ | 555 | $ | 14,326 | ||||||||||
Defined | Cash | Foreign | Total | Tax | Net-of-Tax | |||||||||||||||||||
Benefit | Flow | Currency | Pre-Tax | Amount | ||||||||||||||||||||
Plan | Hedges | Translation | Amount | |||||||||||||||||||||
Liability | Adjustment | |||||||||||||||||||||||
At December 28, 2012 | $ | (962 | ) | $ | 120 | $ | 13,431 | $ | 12,589 | $ | 358 | $ | 12,947 | |||||||||||
Unrealized gain on cash flow hedges | — | 2 | — | 2 | (1 | ) | 1 | |||||||||||||||||
Realized gain on foreign currency hedges | — | (908 | ) | — | (908 | ) | 318 | (590 | ) | |||||||||||||||
Realized loss on interest rate swap hedges | — | 344 | — | 344 | (120 | ) | 224 | |||||||||||||||||
Net defined benefit plan gain (Note 7) | 597 | — | — | 597 | — | 597 | ||||||||||||||||||
Foreign currency translation gain | — | — | 1,147 | 1,147 | — | 1,147 | ||||||||||||||||||
At September 27, 2013 | $ | (365 | ) | $ | (442 | ) | $ | 14,578 | $ | 13,771 | $ | 555 | $ | 14,326 | ||||||||||
The realized (gains) losses relating to the Company’s foreign currency and interest rate swap hedges were recognized in Cost of Sales and Interest Expense, respectively, in the Condensed Consolidated Statements of Operations. | ||||||||||||||||||||||||
The net defined benefit plan reclassifications from Accumulated Other Comprehensive Income are as follows (in thousands): | ||||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||
27-Sep-13 | ||||||||||||||||||||||||
Net gain occurring during the period | $ | (171 | ) | |||||||||||||||||||||
Amortization of losses | (581 | ) | ||||||||||||||||||||||
Prior service cost | 155 | |||||||||||||||||||||||
Pre-tax adjustment | (597 | ) | ||||||||||||||||||||||
Taxes | — | |||||||||||||||||||||||
Net gain | $ | (597 | ) |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||
Oct. 03, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
FAIR VALUE MEASUREMENTS | ' | ||||||||||||||||
FAIR VALUE MEASUREMENTS | |||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||||||||||||||||
Fair value measurement standards apply to certain financial assets and liabilities that are measured at fair value on a recurring basis (each reporting period). For the Company, these financial assets and liabilities include its derivative instruments and accrued contingent consideration. The Company does not have any nonfinancial assets or liabilities that are measured at fair value on a recurring basis. | |||||||||||||||||
Foreign currency contracts – The fair value of foreign currency contracts are determined through the use of cash flow models that utilize observable market data inputs to estimate fair value. These observable market data inputs include foreign exchange rate and credit spread curves. In addition, the Company received fair value estimates from the foreign currency contract counterparty to verify the reasonableness of the Company’s estimates. The Company’s foreign currency contracts are categorized in Level 2 of the fair value hierarchy. The fair value of the Company’s foreign currency contracts will be realized as Cost of Sales as the inventory, which the contracts are hedging the cash flows to produce, is sold, of which approximately $0.1 million is expected to be realized within the next three months as an increase to Cost of Sales. | |||||||||||||||||
Interest rate swap – The fair value of the Company’s interest rate swap outstanding at October 3, 2014 was determined through the use of a cash flow model that utilizes observable market data inputs. These observable market data inputs include LIBOR, swap rates, and credit spread curves. In addition, the Company received a fair value estimate from the interest rate swap counterparty to verify the reasonableness of the Company’s estimate. This fair value calculation was categorized in Level 2 of the fair value hierarchy. The fair value of the Company’s interest rate swap will be realized as Interest Expense as interest on the Credit Facility is accrued. | |||||||||||||||||
Accrued contingent consideration – In circumstances where a business combination involves a contingent consideration arrangement, the Company recognizes a liability equal to the fair value of the contingent payments it expects to make as of the acquisition date. The Company re-measures this liability each reporting period and records changes in the fair value through Other Operating Expenses, Net. Increases or decreases in the fair value of the contingent consideration liability can result from changes in discount periods and rates, as well as changes in the timing, amount, or the likelihood of achieving the applicable milestones. | |||||||||||||||||
The fair value of accrued contingent consideration recorded by the Company represents the estimated fair value of the contingent consideration the Company expects to pay to the former shareholders of NeuroNexus Technologies, Inc. acquired in 2012 based upon the achievement of certain financial and development-based milestones. The fair value of the contingent consideration liability was estimated by discounting to present value, the probability weighted contingent payments expected to be made utilizing a risk adjusted discount rate. During the first quarter of 2014, the financial milestone expired unachieved and as a result, was determined to have a fair value of zero. The maximum amount of future contingent consideration (undiscounted) that the Company could be required to pay for the development milestone is $1.0 million. The Company’s accrued contingent consideration is categorized in Level 3 of the fair value hierarchy. Changes in accrued contingent consideration were as follows (in thousands): | |||||||||||||||||
At January 3, 2014 | $ | 840 | |||||||||||||||
Fair value adjustments | (750 | ) | |||||||||||||||
At October 3, 2014 | $ | 90 | |||||||||||||||
The recurring Level 3 fair value measurements of the Company’s contingent consideration liability include the following significant unobservable inputs (dollars in thousands): | |||||||||||||||||
Contingent Consideration Liability | Fair Value at October 3, 2014 | Valuation Technique | Unobservable Inputs | ||||||||||||||
Development milestone | $ | 90 | Discounted cash flow | Discount rate | 20 | % | |||||||||||
Projected year of payment | 2015 | ||||||||||||||||
Probability weighted payment amount | $ | 100 | |||||||||||||||
The following table provides information regarding assets and liabilities recorded at fair value on a recurring basis in the Condensed Consolidated Balance Sheet (in thousands): | |||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
At | Quoted | Significant | Significant | ||||||||||||||
October 3, | Prices in | Other | Unobservable | ||||||||||||||
Active Markets | Observable | Inputs | |||||||||||||||
for Identical | Inputs | ||||||||||||||||
Assets | |||||||||||||||||
Description | 2014 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Liabilities | |||||||||||||||||
Foreign currency contracts (Note 11) | $ | 102 | $ | — | $ | 102 | $ | — | |||||||||
Interest rate swap (Note 6) | 191 | — | 191 | — | |||||||||||||
Accrued contingent consideration (Note 14) | 90 | — | — | 90 | |||||||||||||
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | |||||||||||||||||
Fair value standards also apply to certain nonfinancial assets and liabilities that are measured at fair value on a nonrecurring basis. The carrying amounts of cash, accounts receivable, accounts payable and accrued expenses approximate fair value because of the short-term nature of these items. As of October 3, 2014, the fair value of the Company’s variable rate Long-Term Debt approximates its carrying value and is categorized in Level 2 of the fair value hierarchy. A summary of the valuation methodologies for the Company’s assets and liabilities measured on a nonrecurring basis is as follows: | |||||||||||||||||
Long-lived assets – The Company reviews the carrying amount of its long-lived assets to be held and used, other than goodwill and indefinite-lived intangible assets, for potential impairment whenever certain indicators are present such as: a significant decrease in the market price of the asset or asset group; a significant change in the extent or manner in which the long-lived asset or asset group is being used or in its physical condition; a significant change in legal factors or in the business climate that could affect the value of the long-lived asset or asset group, including an action or assessment by a regulator; an accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; a current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of the long-lived asset or asset group; or a current expectation that it is more likely than not the long-lived asset or asset group will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. The term more likely than not refers to a level of likelihood that is more than 50 percent. | |||||||||||||||||
If an indicator is present, potential recoverability is measured by comparing the carrying amount of the long-lived asset or asset group to its related total future undiscounted cash flows. If the carrying value is not recoverable, the asset or asset group is considered to be impaired. Impairment is measured by comparing the asset or asset group’s carrying amount to its fair value, which is determined by using independent appraisals or discounted cash flow models. The discounted cash flow model requires inputs such as a risk-adjusted discount rate, terminal values, cash flow projections, and remaining useful lives of the asset or asset group. If the carrying value of the long-lived asset or asset group exceeds the fair value, the carrying value is written down to the fair value in the period identified. During the second quarter of 2014, the Company transferred $2.1 million of assets relating to the Company's Orvin, Switzerland property to held for sale. The Company did not record any impairment charges related to any of its long-lived assets during the first nine months of 2014 and 2013. | |||||||||||||||||
Goodwill and indefinite-lived intangible assets – The Company assesses the impairment of goodwill and other indefinite-lived intangible assets on the last day of each fiscal year, or more frequently if certain indicators are present as described above under long-lived assets. The Company assesses goodwill for impairment by comparing the fair value of its reporting units to their carrying amounts. If the fair value of a reporting unit is less than its carrying value, an impairment loss is recorded to the extent that the implied fair value of the goodwill within the reporting unit is less than its carrying value. Fair values for reporting units are determined based on discounted cash flow models and market multiples. The discounted cash flow model requires inputs such as a risk-adjusted discount rate, terminal values, probability of success factor, and cash flow projections. The fair value from the discounted cash flow model is then combined, based on certain weightings, with market multiples in order to determine the fair value of the reporting unit. These market multiples include revenue multiples and multiples of earnings before interest, taxes, depreciation and amortization. | |||||||||||||||||
Indefinite-lived intangible assets are assessed for impairment by comparing the fair value of the intangible asset to its carrying value. If the carrying value of the indefinite-lived intangible asset exceeds the fair value, the carrying value is written down to the fair value in the period identified. The fair value of indefinite-lived intangible assets is determined by using a discounted cash flow model. The discounted cash flow model requires inputs such as a risk-adjusted discount rate, royalty rates, and cash flow projections. | |||||||||||||||||
The Company did not record any impairment charges related to its indefinite-lived intangible assets, including goodwill, during the first nine months of 2014 and 2013, respectively. See Note 5 “Intangible Assets” for additional information on the Company’s intangible assets. | |||||||||||||||||
Cost and equity method investments – The Company holds investments in equity and other securities that are accounted for as either cost or equity method investments and are classified as Other Assets. The total carrying value of these investments is reviewed quarterly for changes in circumstance or the occurrence of events that suggest the Company’s investment may not be recoverable. The fair value of cost or equity method investments is not adjusted if there are no identified events or changes in circumstances that may have a material effect on the fair value of the investments. Gains and losses realized on cost and equity method investments are recorded in Other (Income) Expense, Net, unless separately stated. In the third quarter of 2014, the Company sold one of its cost method investments. This transaction resulted in a pre-tax gain of $3.2 million. The aggregate recorded amount of cost and equity method investments at October 3, 2014 and January 3, 2014 was $12.0 million and $12.3 million, respectively. The Company recorded income (loss) related to its cost and equity method investments of $3.9 million and ($0.6) million during the first nine months of 2014 and 2013, respectively. |
Business_Segment_Geographic_an
Business Segment, Geographic and Concentration Risk Information | 9 Months Ended | |||||||||||||||
Oct. 03, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
BUSINESS SEGMENT, GEOGRAPHIC AND CONCENTRATION RISK INFORMATION | ' | |||||||||||||||
BUSINESS SEGMENT, GEOGRAPHIC AND CONCENTRATION RISK INFORMATION | ||||||||||||||||
In connection with the realignment of the Company’s operating structure in 2013 to optimize profitable growth, which included changing the Company’s management and reporting structure, the Company reevaluated its operating and reporting segments. Beginning in the fourth quarter of 2013, the Company determined that it has two reportable segments: Greatbatch Medical and QiG Group (“QiG”). As required, the Company reclassified certain prior year amounts to conform them to the current year presentation, including goodwill, segment operating income (loss), and segment sales categorizations. | ||||||||||||||||
Greatbatch Medical designs and manufactures medical devices and components where Greatbatch either owns the intellectual property or has unique manufacturing and assembly expertise and includes the financial results of the former Implantable Medical and Electrochem segments, excluding QiG. Greatbatch Medical provides medical devices and components to the following markets: | ||||||||||||||||
• | Cardiac/Neuromodulation: Products include batteries, capacitors, filtered and unfiltered feed-throughs, engineered components, implantable stimulation leads, and enclosures used in implantable medical devices. | |||||||||||||||
• | Orthopaedic: Products include hip and shoulder joint reconstruction implants, bone plates and spinal devices, and instruments and delivery systems used in hip and knee replacement, trauma fixation, and spinal surgeries. | |||||||||||||||
• | Portable Medical: Products include batteries, chargers and power supplies for a wide range of medical devices including automated external defibrillators, portable oxygen concentrators, ventilators, and powered surgical tools. | |||||||||||||||
• | Vascular: Products include introducers, medical coatings, steerable sheaths, and catheters that deliver therapies for various markets such as coronary and neurovascular disease, peripheral vascular disease, interventional radiology, vascular access, atrial fibrillation, and interventional cardiology, plus products for medical imaging and pharmaceutical delivery. | |||||||||||||||
• | Energy, Military, and Environmental (“EME”): Products include primary and rechargeable batteries and battery packs for demanding applications such as down hole drilling tools. | |||||||||||||||
Greatbatch Medical also offers value-added assembly and design engineering services for medical devices that utilize its component products. | ||||||||||||||||
QiG focuses on developing medical device systems for some of healthcare’s most pressing challenges and reflects Greatbatch’s strategic evolution of its product offerings in order to raise the growth and profitability profile of the Company. QiG utilizes a disciplined and diversified portfolio approach with three investment modes: new medical device systems commercialization, collaborative programs with original equipment manufacturers (“OEM”), and strategic equity positions in start-up companies. The development of new medical device systems are facilitated through the establishment of newly formed business entities, usually limited liability companies (“LLC”). These entities do not own, but have the exclusive right to use the technology of Greatbatch Medical in certain specifically designated fields of use and have an exclusive manufacturing agreement with Greatbatch Medical. QiG currently owns 89% - 100% of three LLCs. Minority interest in these LLCs was granted to key opinion leaders, clinicians and strategic partners. Under the agreements governing these LLCs, QiG is responsible for 100% of the expenses incurred by the LLC. However, no allocations of capital are made to the minority holders of the LLC until QiG is reimbursed for all expenses paid. Once QiG has been fully reimbursed, future net income is allocated based upon the respective LLCs ownership percentages. One of the LLCs established by QiG is for the Company's Algovita spinal cord stimulator to treat chronic intractable pain of the trunk and/or limbs. This product was submitted for premarket approval (“PMA”) to the United States Food & Drug Administration (“FDA”) in December 2013 and in January 2014 documentation for European CE Mark was submitted to the notified body, TÜV SÜD America. CE Mark approval was obtained on June 17, 2014. | ||||||||||||||||
QiG revenue includes sales of neural interface technology, components and systems to the neuroscience and clinical markets. As further discussed in Note 2 “Acquisition,” during the third quarter of 2014, the Company acquired CCC, a neuromodulation medical device developer and manufacturer. As a result of this transaction, QiG revenue also includes sales of various medical device products such as implantable pulse generators, programmer systems, battery chargers, patient wands and leads to medical device companies. For the 2014 and 2013 periods, no revenue earned by QiG was manufactured by Greatbatch Medical. Future income of QiG is expected to come from various sources including investment gains from the sales of its LLC ownership interests, technology licensing fees, royalty revenue, and/or the sales of medical device systems. | ||||||||||||||||
Historical results reflecting the new business segments for previously reported periods are shown below. An analysis and reconciliation of the Company’s business segment, product line and geographic information to the respective information in the Condensed Consolidated Financial Statements follows. Sales by geographic area are presented by allocating sales from external customers based on where the products are shipped to (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
3-Oct-14 | 27-Sep-13 | 3-Oct-14 | 27-Sep-13 | |||||||||||||
Sales: | ||||||||||||||||
Greatbatch Medical | ||||||||||||||||
Cardiac/Neuromodulation | $ | 85,618 | $ | 86,302 | $ | 252,403 | $ | 240,003 | ||||||||
Orthopaedic | 32,489 | 30,079 | 106,785 | 92,043 | ||||||||||||
Portable Medical | 17,199 | 19,320 | 53,139 | 60,376 | ||||||||||||
Vascular | 14,903 | 12,279 | 43,210 | 35,152 | ||||||||||||
Energy, Military, Environmental | 19,016 | 19,072 | 58,499 | 57,594 | ||||||||||||
Total Greatbatch Medical | 169,225 | 167,052 | 514,036 | 485,168 | ||||||||||||
QiG | 2,474 | 678 | 4,025 | 2,158 | ||||||||||||
Total sales | $ | 171,699 | $ | 167,730 | $ | 518,061 | $ | 487,326 | ||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
3-Oct-14 | 27-Sep-13 | 3-Oct-14 | 27-Sep-13 | |||||||||||||
Segment income from operations: | ||||||||||||||||
Greatbatch Medical | $ | 31,121 | $ | 28,236 | $ | 98,688 | $ | 84,596 | ||||||||
QiG | (6,796 | ) | (6,946 | ) | (18,882 | ) | (21,679 | ) | ||||||||
Total segment income from operations | 24,325 | 21,290 | 79,806 | 62,917 | ||||||||||||
Unallocated operating expenses | (8,142 | ) | (4,288 | ) | (21,560 | ) | (14,441 | ) | ||||||||
Operating income as reported | 16,183 | 17,002 | 58,246 | 48,476 | ||||||||||||
Unallocated other income (expense) | 2,717 | (1,458 | ) | 847 | (10,855 | ) | ||||||||||
Income before provision for income taxes | $ | 18,900 | $ | 15,544 | $ | 59,093 | $ | 37,621 | ||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
3-Oct-14 | 27-Sep-13 | 3-Oct-14 | 27-Sep-13 | |||||||||||||
Sales by geographic area: | ||||||||||||||||
United States | $ | 76,330 | $ | 81,736 | $ | 235,203 | $ | 242,304 | ||||||||
Non-Domestic locations: | ||||||||||||||||
Puerto Rico | 34,581 | 31,936 | 101,064 | 87,592 | ||||||||||||
Belgium | 13,722 | 14,947 | 47,351 | 49,895 | ||||||||||||
Rest of world | 47,066 | 39,111 | 134,443 | 107,535 | ||||||||||||
Total sales | $ | 171,699 | $ | 167,730 | $ | 518,061 | $ | 487,326 | ||||||||
Three customers accounted for a significant portion of the Company’s sales as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
3-Oct-14 | 27-Sep-13 | 3-Oct-14 | 27-Sep-13 | |||||||||||||
Customer A | 19 | % | 21 | % | 19 | % | 20 | % | ||||||||
Customer B | 15 | % | 16 | % | 16 | % | 16 | % | ||||||||
Customer C | 11 | % | 11 | % | 12 | % | 13 | % | ||||||||
Total | 45 | % | 48 | % | 47 | % | 49 | % | ||||||||
Long-lived tangible assets by geographic area are as follows (in thousands): | ||||||||||||||||
As of | ||||||||||||||||
3-Oct-14 | 3-Jan-14 | |||||||||||||||
United States | $ | 113,310 | $ | 116,484 | ||||||||||||
Rest of world | 29,026 | 29,289 | ||||||||||||||
Total | $ | 142,336 | $ | 145,773 | ||||||||||||
Impact_of_Recently_Issued_Acco
Impact of Recently Issued Accounting Standards | 9 Months Ended |
Oct. 03, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS | ' |
IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS | |
In the normal course of business, management evaluates all new accounting pronouncements issued by the Financial Accounting Standards Board (“FASB”), Securities and Exchange Commission, Emerging Issues Task Force, American Institute of Certified Public Accountants or other authoritative accounting bodies to determine the potential impact they may have on the Company’s Condensed Consolidated Financial Statements. Based upon this review, except as noted below, management does not expect any of the recently issued accounting pronouncements, which have not already been adopted, to have a material impact on the Company’s Condensed Consolidated Financial Statements. | |
In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers.” The core principle behind ASU 2014-09 is that an entity should recognize revenue in an amount that reflects the consideration to which the entity expects to be entitled in exchange for delivering goods and services. This model involves a five-step process that includes identifying the contract with the customer, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations in the contract and recognizing revenue when the entity satisfies the performance obligations. This ASU supersedes existing revenue recognition guidance and is effective for annual reporting periods beginning after December 15, 2016 with early application not permitted. This ASU allows two methods of adoption; a full retrospective approach where three years of financial information are presented in accordance with the new standard, and a modified retrospective approach where this ASU is applied to the most current period presented in the financial statements. The Company is currently assessing the financial impact of adopting the new standard and the methods of adoption; however, given the scope of the new standard, the company is currently unable to provide a reasonable estimate regarding the financial impact or which method of adoption will be elected. | |
In April 2014, the FASB issued ASU No. 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity,” which amends the definition of a discontinued operation and requires entities to provide additional disclosures about disposal transactions that do not meet the discontinued operations criteria. The revised guidance changes how entities identify and disclose information about disposal transactions under U.S. GAAP. This ASU is effective prospectively for all disposals (except disposals classified as held for sale before the adoption date) or components initially classified as held for sale in periods beginning on or after December 15, 2014, with early adoption permitted. This ASU will be applicable for disposal transactions, if any, that the Company enters into after the adoption date. | |
In July 2013, the FASB issued ASU No. 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” This ASU requires that entities present an unrecognized tax benefit, or portion of an unrecognized tax benefit, as a reduction to a deferred tax asset in the financial statements for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, with certain exceptions. This ASU was adopted during the first quarter of 2014 and did not impact the Company's Condensed Consolidated Financial Statements as the Company does not have any net operating loss carryforward deferred tax assets that are eligible to be reduced by an unrecognized tax benefit as required by the ASU. |
Accounting_Policies_Policies
Accounting Policies (Policies) | 9 Months Ended |
Oct. 03, 2014 | |
Accounting Policies [Abstract] | ' |
Interim Basis of Accounting | ' |
The January 3, 2014 condensed consolidated balance sheet data was derived from audited consolidated financial statements but does not include all disclosures required by GAAP. For further information, refer to the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended January 3, 2014. | |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information (Accounting Standards Codification (“ASC”) 270, Interim Reporting) and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information necessary for a full presentation of financial position, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Operating results for interim periods are not necessarily indicative of results that may be expected for the fiscal year as a whole. In the opinion of management, the condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the results of Greatbatch, Inc. and its wholly-owned subsidiary, Greatbatch Ltd. (collectively “Greatbatch” or the “Company”), for the periods presented. | |
Use of Estimates, Policy | ' |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, sales, expenses, and related disclosures at the date of the financial statements and during the reporting period. Actual results could differ materially from these estimates. | |
Fiscal Period, Policy | ' |
The Company utilizes a fifty-two, fifty-three week fiscal year ending on the Friday nearest December 31st. The third quarter and year-to-date periods of 2014 and 2013 each contained 13 weeks and 39 weeks, respectively, and ended on October 3, and September 27, respectively. | |
Income Tax, Policy | ' |
The income tax provision for interim periods is determined using an estimate of the annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the estimate of the annual effective tax rate is updated, and if the estimated effective tax rate changes, a cumulative adjustment is made. There is a potential for volatility of the effective tax rate due to several factors, including changes in the mix of the pre-tax income and the jurisdictions to which it relates, changes in tax laws and foreign tax holidays, business reorganizations, settlements with taxing authorities and foreign currency fluctuations. | |
Contingent Liability Reserve Estimate, Policy | ' |
In circumstances where a business combination involves a contingent consideration arrangement, the Company recognizes a liability equal to the fair value of the contingent payments it expects to make as of the acquisition date. The Company re-measures this liability each reporting period and records changes in the fair value through Other Operating Expenses, Net. Increases or decreases in the fair value of the contingent consideration liability can result from changes in discount periods and rates, as well as changes in the timing, amount, or the likelihood of achieving the applicable milestones. | |
Long Lived Assets Finite Lived Intangible Assets | ' |
The Company reviews the carrying amount of its long-lived assets to be held and used, other than goodwill and indefinite-lived intangible assets, for potential impairment whenever certain indicators are present such as: a significant decrease in the market price of the asset or asset group; a significant change in the extent or manner in which the long-lived asset or asset group is being used or in its physical condition; a significant change in legal factors or in the business climate that could affect the value of the long-lived asset or asset group, including an action or assessment by a regulator; an accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; a current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of the long-lived asset or asset group; or a current expectation that it is more likely than not the long-lived asset or asset group will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. The term more likely than not refers to a level of likelihood that is more than 50 percent. | |
If an indicator is present, potential recoverability is measured by comparing the carrying amount of the long-lived asset or asset group to its related total future undiscounted cash flows. If the carrying value is not recoverable, the asset or asset group is considered to be impaired. Impairment is measured by comparing the asset or asset group’s carrying amount to its fair value, which is determined by using independent appraisals or discounted cash flow models. The discounted cash flow model requires inputs such as a risk-adjusted discount rate, terminal values, cash flow projections, and remaining useful lives of the asset or asset group. If the carrying value of the long-lived asset or asset group exceeds the fair value, the carrying value is written down to the fair value in the period identified. | |
Goodwill and Intangible Assets, Goodwill, Policy | ' |
The Company assesses the impairment of goodwill and other indefinite-lived intangible assets on the last day of each fiscal year, or more frequently if certain indicators are present as described above under long-lived assets. The Company assesses goodwill for impairment by comparing the fair value of its reporting units to their carrying amounts. If the fair value of a reporting unit is less than its carrying value, an impairment loss is recorded to the extent that the implied fair value of the goodwill within the reporting unit is less than its carrying value. | |
Goodwill and Intangible Assets, Intangible Assets, Indefinite-Lived, Policy | ' |
Indefinite-lived intangible assets are assessed for impairment by comparing the fair value of the intangible asset to its carrying value. If the carrying value of the indefinite-lived intangible asset exceeds the fair value, the carrying value is written down to the fair value in the period identified. | |
Cost And Equity Method Investments Policy | ' |
The Company holds investments in equity and other securities that are accounted for as either cost or equity method investments and are classified as Other Assets. The total carrying value of these investments is reviewed quarterly for changes in circumstance or the occurrence of events that suggest the Company’s investment may not be recoverable. The fair value of cost or equity method investments is not adjusted if there are no identified events or changes in circumstances that may have a material effect on the fair value of the investments. Gains and losses realized on cost and equity method investments are recorded in Other (Income) Expense, Net, unless separately stated. |
Acquisitions_Tables
Acquisitions (Tables) | 9 Months Ended | |||||||||||||||
Oct. 03, 2014 | ||||||||||||||||
Business Combinations [Abstract] | ' | |||||||||||||||
Summary of assets acquired and liabilities assumed | ' | |||||||||||||||
The following table summarizes the preliminary allocation of the CCC purchase price to the assets acquired and liabilities assumed as of the acquisition date (in thousands): | ||||||||||||||||
Assets acquired | ||||||||||||||||
Current assets | $ | 9,519 | ||||||||||||||
Property, plant and equipment | 1,106 | |||||||||||||||
Amortizing intangible assets | 6,100 | |||||||||||||||
Goodwill | 8,321 | |||||||||||||||
Total assets acquired | 25,046 | |||||||||||||||
Liabilities assumed | ||||||||||||||||
Current liabilities | 3,874 | |||||||||||||||
Deferred income taxes | 1,590 | |||||||||||||||
Total liabilities assumed | 5,464 | |||||||||||||||
Net assets acquired | $ | 19,582 | ||||||||||||||
Summary of finite-lived intangibles assets acquired | ' | |||||||||||||||
The purchase price was allocated to intangible assets as follows (dollars in thousands): | ||||||||||||||||
Amortizing Intangible Assets | Fair | Weighted | Weighted | |||||||||||||
Value | Average | Average | ||||||||||||||
Assigned | Amortization | Discount | ||||||||||||||
Period (Years) | Rate | |||||||||||||||
Technology | $ | 1,400 | 10 | 18% | ||||||||||||
Customer lists | 4,600 | 10 | 18% | |||||||||||||
Trademarks and tradenames | 100 | 2 | 18% | |||||||||||||
6,100 | ||||||||||||||||
Summary of acquisition pro forma results | ' | |||||||||||||||
The following unaudited pro forma information presents the consolidated results of operations of the Company and CCC as if that acquisition occurred as of the beginning of fiscal year 2013 (in thousands, except per share amounts): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
3-Oct-14 | 27-Sep-13 | 3-Oct-14 | 27-Sep-13 | |||||||||||||
Sales | $ | 173,413 | $ | 171,158 | $ | 526,631 | $ | 497,610 | ||||||||
Net income | 14,219 | 11,407 | 42,165 | 27,495 | ||||||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.57 | $ | 0.47 | 1.7 | 1.15 | ||||||||||
Diluted | $ | 0.55 | $ | 0.45 | 1.63 | 1.1 | ||||||||||
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 9 Months Ended | |||||||
Oct. 03, 2014 | ||||||||
Supplemental Cash Flow Elements [Abstract] | ' | |||||||
Schedule of Cash Flow, Supplemental Disclosures | ' | |||||||
Nine Months Ended | ||||||||
(in thousands) | October 3, 2014 | September 27, 2013 | ||||||
Noncash investing and financing activities: | ||||||||
Common stock contributed to 401(k) Plan | $ | 4,341 | $ | 2,477 | ||||
Property, plant and equipment purchases included in accounts payable | 2,618 | 711 | ||||||
Cash paid during the period for: | ||||||||
Interest | $ | 2,736 | $ | 4,388 | ||||
Income taxes | 11,791 | 31,755 | ||||||
Acquisition of noncash assets | $ | 21,282 | $ | — | ||||
Liabilities assumed | 5,464 | — | ||||||
Inventories_Tables
Inventories (Tables) | 9 Months Ended | |||||||
Oct. 03, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Schedule of Inventory, Current | ' | |||||||
Inventories are comprised of the following (in thousands): | ||||||||
As of | ||||||||
3-Oct-14 | 3-Jan-14 | |||||||
Raw materials | $ | 74,718 | $ | 67,939 | ||||
Work-in-process | 39,604 | 36,670 | ||||||
Finished goods | 14,405 | 13,749 | ||||||
Total | $ | 128,727 | $ | 118,358 | ||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 9 Months Ended | |||||||||||||||
Oct. 03, 2014 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Schedule of Finite-Lived Intangible Assets by Major Class | ' | |||||||||||||||
Amortizing intangible assets are comprised of the following (in thousands): | ||||||||||||||||
Gross | Accumulated | Foreign | Net | |||||||||||||
Carrying | Amortization | Currency | Carrying | |||||||||||||
Amount | Translation | Amount | ||||||||||||||
At October 3, 2014 | ||||||||||||||||
Technology and patents | $ | 95,776 | $ | (74,287 | ) | $ | 1,966 | $ | 23,455 | |||||||
Customer lists | 72,857 | (29,705 | ) | 1,374 | 44,526 | |||||||||||
Other | 4,534 | (4,555 | ) | 803 | 782 | |||||||||||
Total amortizing intangible assets | $ | 173,167 | $ | (108,547 | ) | $ | 4,143 | $ | 68,763 | |||||||
At January 3, 2014 | ||||||||||||||||
Technology and patents | $ | 97,376 | $ | (69,026 | ) | $ | 1,980 | $ | 30,330 | |||||||
Customer lists | 68,257 | (24,671 | ) | 1,367 | 44,953 | |||||||||||
Other | 4,434 | (4,399 | ) | 804 | 839 | |||||||||||
Total amortizing intangible assets | $ | 170,067 | $ | (98,096 | ) | $ | 4,151 | $ | 76,122 | |||||||
Schedule of Finite-Lived Intangible Assets, Amortization Expense | ' | |||||||||||||||
Aggregate intangible asset amortization expense is comprised of the following (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
3-Oct-14 | 27-Sep-13 | 3-Oct-14 | 27-Sep-13 | |||||||||||||
Cost of sales | $ | 1,567 | $ | 1,668 | $ | 4,696 | $ | 5,207 | ||||||||
Selling, general and administrative expenses | 1,756 | 1,446 | 5,190 | 4,343 | ||||||||||||
Research, development and engineering costs, net | 164 | 137 | 565 | 409 | ||||||||||||
Total intangible asset amortization expense | $ | 3,487 | $ | 3,251 | $ | 10,451 | $ | 9,959 | ||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | ' | |||||||||||||||
Estimated future intangible asset amortization expense based on the current carrying value is as follows (in thousands): | ||||||||||||||||
Estimated | ||||||||||||||||
Amortization | ||||||||||||||||
Expense | ||||||||||||||||
Remainder of 2014 | $ | 3,426 | ||||||||||||||
2015 | 12,988 | |||||||||||||||
2016 | 10,676 | |||||||||||||||
2017 | 9,520 | |||||||||||||||
2018 | 7,232 | |||||||||||||||
Thereafter | 24,921 | |||||||||||||||
Total estimated amortization expense | $ | 68,763 | ||||||||||||||
Schedule of Intangible Assets Goodwill | ' | |||||||||||||||
Indefinite-lived intangible assets are comprised of the following (in thousands): | ||||||||||||||||
Trademarks | ||||||||||||||||
and | ||||||||||||||||
Tradenames | ||||||||||||||||
At January 3, 2014 | $ | 20,288 | ||||||||||||||
At October 3, 2014 | $ | 20,288 | ||||||||||||||
The change in goodwill is as follows (in thousands): | ||||||||||||||||
Greatbatch Medical | QiG | Total | ||||||||||||||
At January 3, 2014 | $ | 304,856 | $ | 41,800 | $ | 346,656 | ||||||||||
Goodwill acquired | — | 8,321 | 8,321 | |||||||||||||
Foreign currency translation | (394 | ) | — | (394 | ) | |||||||||||
At October 3, 2014 | $ | 304,462 | $ | 50,121 | $ | 354,583 | ||||||||||
Debt_Tables
Debt (Tables) | 9 Months Ended | |||||||||||||||||||||
Oct. 03, 2014 | ||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||
Schedule of Debt | ' | |||||||||||||||||||||
Long-term debt is comprised of the following (in thousands): | ||||||||||||||||||||||
As of | ||||||||||||||||||||||
3-Oct-14 | 3-Jan-14 | |||||||||||||||||||||
Revolving line of credit | $ | — | $ | — | ||||||||||||||||||
Variable rate term loan | 190,000 | 197,500 | ||||||||||||||||||||
Total long-term debt | $ | 190,000 | $ | 197,500 | ||||||||||||||||||
Schedule Of Interest Rate Derivatives | ' | |||||||||||||||||||||
Information regarding the Company’s outstanding interest rate swap as of October 3, 2014 is as follows (dollars in thousands): | ||||||||||||||||||||||
Instrument | Type of | Notional | Start | End | Pay | Current | Fair Value October 3, 2014 | Balance | ||||||||||||||
Hedge | Amount | Date | Date | Fixed | Receive | Sheet Location | ||||||||||||||||
Rate | Floating | |||||||||||||||||||||
Rate | ||||||||||||||||||||||
Interest rate swap | Cash flow | $ | 100,000 | 13-Feb | 16-Feb | 0.573 | % | 0.154 | % | $ | (191 | ) | Other Long-Term Liabilities | |||||||||
Schedule Of Maturities Of Long Term Debt | ' | |||||||||||||||||||||
The expected future minimum principal payments under the Term Loan as of October 3, 2014 are as follows (in thousands): | ||||||||||||||||||||||
Remainder of 2014 | $ | 2,500 | ||||||||||||||||||||
2015 | 11,250 | |||||||||||||||||||||
2016 | 16,250 | |||||||||||||||||||||
2017 | 20,000 | |||||||||||||||||||||
2018 | 20,000 | |||||||||||||||||||||
Thereafter | 120,000 | |||||||||||||||||||||
Total | $ | 190,000 | ||||||||||||||||||||
Schedule of Interest | ' | |||||||||||||||||||||
The contractual interest and discount amortization for CSN were as follows (in thousands): | ||||||||||||||||||||||
Three Months ended | Nine Months Ended | |||||||||||||||||||||
3-Oct-14 | 27-Sep-13 | 3-Oct-14 | 27-Sep-13 | |||||||||||||||||||
Contractual interest | $ | — | $ | — | $ | — | $ | 634 | ||||||||||||||
Discount amortization | — | — | — | 5,368 | ||||||||||||||||||
Schedule of Deferred Financing Costs | ' | |||||||||||||||||||||
The change in deferred financing fees is as follows (in thousands): | ||||||||||||||||||||||
At January 3, 2014 | $ | 3,860 | ||||||||||||||||||||
Amortization during the period | (580 | ) | ||||||||||||||||||||
At October 3, 2014 | $ | 3,280 | ||||||||||||||||||||
Defined_Benefit_Plans_Tables
Defined Benefit Plans (Tables) | 9 Months Ended | |||||||||||||||
Oct. 03, 2014 | ||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ' | |||||||||||||||
Schedule of Defined Benefit Plans Disclosures | ' | |||||||||||||||
The change in net defined benefit plan liability is as follows (in thousands): | ||||||||||||||||
At January 3, 2014 | $ | 1,691 | ||||||||||||||
Net defined benefit cost | 229 | |||||||||||||||
Benefit payments | (96 | ) | ||||||||||||||
Foreign currency translation | (153 | ) | ||||||||||||||
At October 3, 2014 | $ | 1,671 | ||||||||||||||
Schedule of Net Benefit Costs | ' | |||||||||||||||
Net defined benefit cost (income) is comprised of the following (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
3-Oct-14 | 27-Sep-13 | 3-Oct-14 | 27-Sep-13 | |||||||||||||
Service cost | $ | 51 | $ | 76 | $ | 155 | $ | 227 | ||||||||
Interest cost | 18 | 41 | 57 | 144 | ||||||||||||
Curtailment gain (Other Operating Expenses, Net) | — | — | — | (1,150 | ) | |||||||||||
Amortization of net loss | 6 | — | 17 | — | ||||||||||||
Net defined benefit (income) cost | $ | 75 | $ | 117 | $ | 229 | $ | (779 | ) | |||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | |||||||||||||||
Oct. 03, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ' | |||||||||||||||
The components and classification of stock-based compensation expense were as follows (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
3-Oct-14 | 27-Sep-13 | 3-Oct-14 | 27-Sep-13 | |||||||||||||
Stock options | $ | 595 | $ | 1,374 | $ | 1,811 | $ | 2,784 | ||||||||
Restricted stock and units | 1,850 | 2,013 | 5,008 | 4,958 | ||||||||||||
401(k) Plan stock contribution | 1,357 | 679 | 3,712 | 3,671 | ||||||||||||
Total stock-based compensation expense | $ | 3,802 | $ | 4,066 | $ | 10,531 | $ | 11,413 | ||||||||
Cost of sales | $ | 1,129 | $ | 1,117 | $ | 3,187 | $ | 3,246 | ||||||||
Selling, general and administrative expenses | 1,951 | 1,598 | 5,872 | 6,052 | ||||||||||||
Research, development and engineering costs, net | 429 | 215 | 1,179 | 979 | ||||||||||||
Modification expense – Other Operating Expenses, Net (Note 9) | 293 | 1,136 | 293 | 1,136 | ||||||||||||
Total stock-based compensation expense | $ | 3,802 | $ | 4,066 | $ | 10,531 | $ | 11,413 | ||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | ' | |||||||||||||||
The weighted average fair value and assumptions used to value options granted are as follows: | ||||||||||||||||
Nine Months Ended | ||||||||||||||||
3-Oct-14 | 27-Sep-13 | |||||||||||||||
Weighted average fair value | $ | 16.43 | $ | 8.38 | ||||||||||||
Risk-free interest rate | 1.73 | % | 0.73 | % | ||||||||||||
Expected volatility | 39 | % | 39 | % | ||||||||||||
Expected life (in years) | 5 | 5 | ||||||||||||||
Expected dividend yield | — | % | — | % | ||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | ' | |||||||||||||||
The following table summarizes time-vested stock option activity: | ||||||||||||||||
Number of | Weighted | Weighted | Aggregate | |||||||||||||
Time-Vested | Average | Average | Intrinsic | |||||||||||||
Stock | Exercise | Remaining | Value | |||||||||||||
Options | Price | Contractual | (In Millions) | |||||||||||||
Life | ||||||||||||||||
(In Years) | ||||||||||||||||
Outstanding at January 3, 2014 | 1,616,409 | $ | 22.92 | |||||||||||||
Granted | 183,571 | 43.84 | ||||||||||||||
Exercised | (191,501 | ) | 22.94 | |||||||||||||
Forfeited or expired | (33,279 | ) | 27.82 | |||||||||||||
Outstanding at October 3, 2014 | 1,575,200 | 25.26 | 6.3 | $ | 28.9 | |||||||||||
Exercisable at October 3, 2014 | 1,159,129 | 23.09 | 5.5 | $ | 23.7 | |||||||||||
The following table summarizes performance-vested stock option activity: | ||||||||||||||||
Number of | Weighted | Weighted | Aggregate | |||||||||||||
Performance- | Average | Average | Intrinsic | |||||||||||||
Vested Stock | Exercise | Remaining | Value | |||||||||||||
Options | Price | Contractual | (In Millions) | |||||||||||||
Life | ||||||||||||||||
(In Years) | ||||||||||||||||
Outstanding at January 3, 2014 | 177,261 | $ | 23.27 | |||||||||||||
Exercised | (56,243 | ) | 23.34 | |||||||||||||
Outstanding at October 3, 2014 | 121,018 | 23.25 | 3.2 | $ | 2.5 | |||||||||||
Exercisable at October 3, 2014 | 121,018 | 23.25 | 3.2 | $ | 2.5 | |||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | ' | |||||||||||||||
The following table summarizes time-vested restricted stock and restricted stock unit activity: | ||||||||||||||||
Time-Vested | Weighted | |||||||||||||||
Activity | Average | |||||||||||||||
Fair Value | ||||||||||||||||
Nonvested at January 3, 2014 | 67,575 | $ | 26.37 | |||||||||||||
Granted | 63,817 | 44.78 | ||||||||||||||
Vested | (14,118 | ) | 43.8 | |||||||||||||
Forfeited | (7,073 | ) | 33.79 | |||||||||||||
Nonvested at October 3, 2014 | 110,201 | 34.32 | ||||||||||||||
The following table summarizes performance-vested restricted stock and restricted stock unit activity: | ||||||||||||||||
Performance- | Weighted | |||||||||||||||
Vested | Average | |||||||||||||||
Activity | Fair Value | |||||||||||||||
Nonvested at January 3, 2014 | 779,678 | $ | 16.41 | |||||||||||||
Granted | 186,825 | 31.33 | ||||||||||||||
Vested | (221,470 | ) | 18.51 | |||||||||||||
Forfeited | (28,870 | ) | 18.42 | |||||||||||||
Nonvested at October 3, 2014 | 716,163 | 19.57 | ||||||||||||||
Other_Operating_Income_Expense1
Other Operating (Income) Expenses, Net (Tables) | 9 Months Ended | |||||||||||||||
Oct. 03, 2014 | ||||||||||||||||
Other Income and Expenses [Abstract] | ' | |||||||||||||||
Schedule Of Other Operating Cost and Expense By Component | ' | |||||||||||||||
Other Operating Expenses, Net is comprised of the following (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
3-Oct-14 | 27-Sep-13 | 3-Oct-14 | 27-Sep-13 | |||||||||||||
2014 investments in capacity and capabilities | $ | 2,787 | $ | — | $ | 5,005 | $ | — | ||||||||
2013 operating unit realignment | (31 | ) | 2,214 | 1,004 | 3,066 | |||||||||||
Orthopaedic facility optimization costs | 996 | 1,420 | 1,032 | 6,723 | ||||||||||||
Medical device facility optimization | — | 52 | 11 | 282 | ||||||||||||
ERP system upgrade (income) costs | — | (121 | ) | (82 | ) | 264 | ||||||||||
Acquisition and integration (income) costs | 133 | (522 | ) | (248 | ) | (340 | ) | |||||||||
Asset dispositions, severance and other | 2,291 | 457 | 3,501 | 565 | ||||||||||||
$ | 6,176 | $ | 3,500 | $ | 10,223 | $ | 10,560 | |||||||||
Schedule of Restructuring Reserve by Type of Cost | ' | |||||||||||||||
The change in accrued liabilities related to the ERP system upgrade is as follows (in thousands): | ||||||||||||||||
Training & | Accelerated | Total | ||||||||||||||
Consulting | Depreciation/Asset | |||||||||||||||
Costs | Write-offs | |||||||||||||||
At January 3, 2014 | $ | — | $ | — | $ | — | ||||||||||
Restructuring income | (82 | ) | — | (82 | ) | |||||||||||
Cash receipts | 82 | — | 82 | |||||||||||||
At October 3, 2014 | $ | — | $ | — | $ | — | ||||||||||
The change in accrued liabilities related to the 2014 investments in capacity and capabilities is as follows (in thousands): | ||||||||||||||||
Severance and | Accelerated | Other | Total | |||||||||||||
Retention | Depreciation/Asset | |||||||||||||||
Write-offs | ||||||||||||||||
At January 3, 2014 | $ | — | $ | — | $ | — | $ | — | ||||||||
Restructuring charges | 1,445 | 33 | 3,527 | 5,005 | ||||||||||||
Write-offs | — | (33 | ) | — | (33 | ) | ||||||||||
Cash payments | (434 | ) | — | (2,838 | ) | (3,272 | ) | |||||||||
At October 3, 2014 | $ | 1,011 | $ | — | $ | 689 | $ | 1,700 | ||||||||
The change in accrued liabilities related to the 2013 operating unit realignment is as follows (in thousands): | ||||||||||||||||
Severance and | Other | Total | ||||||||||||||
Retention | ||||||||||||||||
At January 3, 2014 | $ | 465 | $ | 746 | $ | 1,211 | ||||||||||
Restructuring charges | 849 | 155 | 1,004 | |||||||||||||
Cash payments | (1,314 | ) | (901 | ) | (2,215 | ) | ||||||||||
At October 3, 2014 | $ | — | $ | — | $ | — | ||||||||||
The change in accrued liabilities related to the orthopaedic facility optimization is as follows (in thousands): | ||||||||||||||||
Severance | Accelerated | Other | Total | |||||||||||||
and | Depreciation/Asset | |||||||||||||||
Retention | Write-offs | |||||||||||||||
At January 3, 2014 | $ | — | $ | — | $ | 857 | $ | 857 | ||||||||
Restructuring charges (income) | — | (2,655 | ) | 3,687 | 1,032 | |||||||||||
Cash (payments) receipts | — | 2,655 | (4,004 | ) | (1,349 | ) | ||||||||||
At October 3, 2014 | $ | — | $ | — | $ | 540 | $ | 540 | ||||||||
The change in accrued liabilities related to the medical device facility optimization is as follows (in thousands): | ||||||||||||||||
Production | Personnel | Other | Total | |||||||||||||
Inefficiencies, | ||||||||||||||||
Moving and | ||||||||||||||||
Revalidation | ||||||||||||||||
At January 3, 2014 | $ | — | $ | — | $ | — | $ | — | ||||||||
Restructuring charges | — | 1 | 10 | 11 | ||||||||||||
Cash payments | — | (1 | ) | (10 | ) | (11 | ) | |||||||||
At October 3, 2014 | $ | — | $ | — | $ | — | $ | — | ||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | |||||||||||||||||||
Oct. 03, 2014 | ||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||||||||||
Schedule of Product Warranty Liability | ' | |||||||||||||||||||
The change in aggregate product warranty liability is as follows (in thousands): | ||||||||||||||||||||
At January 3, 2014 | $ | 1,819 | ||||||||||||||||||
Increase to warranty reserve | 680 | |||||||||||||||||||
Warranty claims paid | (1,934 | ) | ||||||||||||||||||
At October 3, 2014 | $ | 565 | ||||||||||||||||||
Schedule of Future Minimum Rental Payments for Operating Leases | ' | |||||||||||||||||||
Estimated future operating lease expense is as follows (in thousands): | ||||||||||||||||||||
Remainder of 2014 | $ | 1,285 | ||||||||||||||||||
2015 | 5,635 | |||||||||||||||||||
2016 | 5,036 | |||||||||||||||||||
2017 | 2,548 | |||||||||||||||||||
2018 | 2,099 | |||||||||||||||||||
Thereafter | 6,352 | |||||||||||||||||||
Total estimated operating lease expense | $ | 22,955 | ||||||||||||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | ' | |||||||||||||||||||
The impact to the Company’s results of operations from these forward contracts was as follows (in thousands): | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
3-Oct-14 | 27-Sep-13 | 3-Oct-14 | 27-Sep-13 | |||||||||||||||||
Reduction in cost of sales | $ | (48 | ) | $ | (346 | ) | $ | (204 | ) | $ | (908 | ) | ||||||||
Ineffective portion of change in fair value | — | — | — | — | ||||||||||||||||
Schedule of Foreign Exchange Contracts, Statement of Financial Position | ' | |||||||||||||||||||
Instrument | Type of | Aggregate | Start | End | $/Peso | Fair | Balance Sheet Location | |||||||||||||
Hedge | Notional | Date | Date | Value | ||||||||||||||||
Amount | ||||||||||||||||||||
FX Contract | Cash flow | $ | 1,927 | 14-Jan | 14-Dec | 0.0767 | $ | (72 | ) | Accrued expenses | ||||||||||
FX Contract | Cash flow | $ | 1,580 | 14-Jan | 14-Dec | 0.0752 | $ | (30 | ) | Accrued expenses | ||||||||||
Earnings_Per_Share_EPS_Tables
Earnings Per Share (EPS) (Tables) | 9 Months Ended | |||||||||||||||
Oct. 03, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | ' | |||||||||||||||
The following table illustrates the calculation of Basic and Diluted EPS (in thousands, except per share amounts): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
3-Oct-14 | 27-Sep-13 | 3-Oct-14 | 27-Sep-13 | |||||||||||||
Numerator for basic and diluted EPS: | ||||||||||||||||
Net income | $ | 14,012 | $ | 11,071 | $ | 41,282 | $ | 26,486 | ||||||||
Denominator for basic EPS: | ||||||||||||||||
Weighted average shares outstanding | 24,899 | 24,047 | 24,784 | 23,904 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Stock options, restricted stock and restricted stock units | 1,024 | 1,141 | 1,066 | 1,113 | ||||||||||||
Denominator for diluted EPS | 25,923 | 25,188 | 25,850 | 25,017 | ||||||||||||
Basic EPS | $ | 0.56 | $ | 0.46 | $ | 1.67 | $ | 1.11 | ||||||||
Diluted EPS | $ | 0.54 | $ | 0.44 | $ | 1.6 | $ | 1.06 | ||||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | ' | |||||||||||||||
The diluted weighted average share calculations do not include the following securities, which are not dilutive to the EPS calculations or the performance criteria have not been met: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
3-Oct-14 | 27-Sep-13 | 3-Oct-14 | 27-Sep-13 | |||||||||||||
Time-vested stock options, restricted stock and restricted stock units | 163,000 | 43,000 | 177,000 | 59,000 | ||||||||||||
Performance-vested restricted stock units | 4,400 | 27,000 | 3,600 | 26,000 | ||||||||||||
Comprehensive_Income_Tables
Comprehensive Income (Tables) | 9 Months Ended | |||||||||||||||||||||||
Oct. 03, 2014 | ||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | |||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||||||||||
Accumulated Other Comprehensive Income is comprised of the following (in thousands): | ||||||||||||||||||||||||
Defined | Cash | Foreign | Total | Tax | Net-of-Tax | |||||||||||||||||||
Benefit | Flow | Currency | Pre-Tax | Amount | ||||||||||||||||||||
Plan | Hedges | Translation | Amount | |||||||||||||||||||||
Liability | Adjustment | |||||||||||||||||||||||
At July 4, 2014 | $ | (672 | ) | $ | (218 | ) | $ | 15,741 | $ | 14,851 | $ | 459 | $ | 15,310 | ||||||||||
Unrealized loss on cash flow hedges | — | (133 | ) | — | (133 | ) | 46 | (87 | ) | |||||||||||||||
Realized gain on foreign currency hedges | — | (48 | ) | — | (48 | ) | 17 | (31 | ) | |||||||||||||||
Realized loss on interest rate swap hedges | — | 106 | — | 106 | (37 | ) | 69 | |||||||||||||||||
Foreign currency translation loss | — | — | (3,211 | ) | (3,211 | ) | — | (3,211 | ) | |||||||||||||||
At October 3, 2014 | $ | (672 | ) | $ | (293 | ) | $ | 12,530 | $ | 11,565 | $ | 485 | $ | 12,050 | ||||||||||
Defined | Cash | Foreign | Total | Tax | Net-of-Tax | |||||||||||||||||||
Benefit | Flow | Currency | Pre-Tax | Amount | ||||||||||||||||||||
Plan | Hedges | Translation | Amount | |||||||||||||||||||||
Liability | Adjustment | |||||||||||||||||||||||
At January 3, 2014 | $ | (672 | ) | $ | (468 | ) | $ | 14,952 | $ | 13,812 | $ | 546 | $ | 14,358 | ||||||||||
Unrealized gain on cash flow hedges | — | 35 | — | 35 | (12 | ) | 23 | |||||||||||||||||
Realized gain on foreign currency hedges | — | (204 | ) | — | (204 | ) | 71 | (133 | ) | |||||||||||||||
Realized loss on interest rate swap hedges | — | 344 | — | 344 | (120 | ) | 224 | |||||||||||||||||
Foreign currency translation loss | — | — | (2,422 | ) | (2,422 | ) | — | (2,422 | ) | |||||||||||||||
At October 3, 2014 | $ | (672 | ) | $ | (293 | ) | $ | 12,530 | $ | 11,565 | $ | 485 | $ | 12,050 | ||||||||||
Defined | Cash | Foreign | Total | Tax | Net-of-Tax | |||||||||||||||||||
Benefit | Flow | Currency | Pre-Tax | Amount | ||||||||||||||||||||
Plan | Hedges | Translation | Amount | |||||||||||||||||||||
Liability | Adjustment | |||||||||||||||||||||||
At June 28, 2013 | $ | (365 | ) | $ | 178 | $ | 10,999 | $ | 10,812 | $ | 338 | $ | 11,150 | |||||||||||
Unrealized loss on cash flow hedges | — | (419 | ) | — | (419 | ) | 147 | (272 | ) | |||||||||||||||
Realized gain on foreign currency hedges | — | (346 | ) | — | (346 | ) | 121 | (225 | ) | |||||||||||||||
Realized loss on interest rate swap hedges | — | 145 | — | 145 | (51 | ) | 94 | |||||||||||||||||
Foreign currency translation gain | — | — | 3,579 | 3,579 | — | 3,579 | ||||||||||||||||||
At September 27, 2013 | $ | (365 | ) | $ | (442 | ) | $ | 14,578 | $ | 13,771 | $ | 555 | $ | 14,326 | ||||||||||
Defined | Cash | Foreign | Total | Tax | Net-of-Tax | |||||||||||||||||||
Benefit | Flow | Currency | Pre-Tax | Amount | ||||||||||||||||||||
Plan | Hedges | Translation | Amount | |||||||||||||||||||||
Liability | Adjustment | |||||||||||||||||||||||
At December 28, 2012 | $ | (962 | ) | $ | 120 | $ | 13,431 | $ | 12,589 | $ | 358 | $ | 12,947 | |||||||||||
Unrealized gain on cash flow hedges | — | 2 | — | 2 | (1 | ) | 1 | |||||||||||||||||
Realized gain on foreign currency hedges | — | (908 | ) | — | (908 | ) | 318 | (590 | ) | |||||||||||||||
Realized loss on interest rate swap hedges | — | 344 | — | 344 | (120 | ) | 224 | |||||||||||||||||
Net defined benefit plan gain (Note 7) | 597 | — | — | 597 | — | 597 | ||||||||||||||||||
Foreign currency translation gain | — | — | 1,147 | 1,147 | — | 1,147 | ||||||||||||||||||
At September 27, 2013 | $ | (365 | ) | $ | (442 | ) | $ | 14,578 | $ | 13,771 | $ | 555 | $ | 14,326 | ||||||||||
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) | ' | |||||||||||||||||||||||
The net defined benefit plan reclassifications from Accumulated Other Comprehensive Income are as follows (in thousands): | ||||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||
27-Sep-13 | ||||||||||||||||||||||||
Net gain occurring during the period | $ | (171 | ) | |||||||||||||||||||||
Amortization of losses | (581 | ) | ||||||||||||||||||||||
Prior service cost | 155 | |||||||||||||||||||||||
Pre-tax adjustment | (597 | ) | ||||||||||||||||||||||
Taxes | — | |||||||||||||||||||||||
Net gain | $ | (597 | ) |
Fair_Value_Tables
Fair Value (Tables) | 9 Months Ended | ||||||||||||||||
Oct. 03, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ' | ||||||||||||||||
Changes in accrued contingent consideration were as follows (in thousands): | |||||||||||||||||
At January 3, 2014 | $ | 840 | |||||||||||||||
Fair value adjustments | (750 | ) | |||||||||||||||
At October 3, 2014 | $ | 90 | |||||||||||||||
Fair Value, Measurement Inputs, Disclosure | ' | ||||||||||||||||
The recurring Level 3 fair value measurements of the Company’s contingent consideration liability include the following significant unobservable inputs (dollars in thousands): | |||||||||||||||||
Contingent Consideration Liability | Fair Value at October 3, 2014 | Valuation Technique | Unobservable Inputs | ||||||||||||||
Development milestone | $ | 90 | Discounted cash flow | Discount rate | 20 | % | |||||||||||
Projected year of payment | 2015 | ||||||||||||||||
Probability weighted payment amount | $ | 100 | |||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ||||||||||||||||
The following table provides information regarding assets and liabilities recorded at fair value on a recurring basis in the Condensed Consolidated Balance Sheet (in thousands): | |||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
At | Quoted | Significant | Significant | ||||||||||||||
October 3, | Prices in | Other | Unobservable | ||||||||||||||
Active Markets | Observable | Inputs | |||||||||||||||
for Identical | Inputs | ||||||||||||||||
Assets | |||||||||||||||||
Description | 2014 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Liabilities | |||||||||||||||||
Foreign currency contracts (Note 11) | $ | 102 | $ | — | $ | 102 | $ | — | |||||||||
Interest rate swap (Note 6) | 191 | — | 191 | — | |||||||||||||
Accrued contingent consideration (Note 14) | 90 | — | — | 90 | |||||||||||||
Business_Segment_Geographic_an1
Business Segment, Geographic and Concentration Risk Information (Tables) | 9 Months Ended | |||||||||||||||
Oct. 03, 2014 | ||||||||||||||||
Segment Reconciliation [Abstract] | ' | |||||||||||||||
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | ' | |||||||||||||||
Sales by geographic area are presented by allocating sales from external customers based on where the products are shipped to (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
3-Oct-14 | 27-Sep-13 | 3-Oct-14 | 27-Sep-13 | |||||||||||||
Sales: | ||||||||||||||||
Greatbatch Medical | ||||||||||||||||
Cardiac/Neuromodulation | $ | 85,618 | $ | 86,302 | $ | 252,403 | $ | 240,003 | ||||||||
Orthopaedic | 32,489 | 30,079 | 106,785 | 92,043 | ||||||||||||
Portable Medical | 17,199 | 19,320 | 53,139 | 60,376 | ||||||||||||
Vascular | 14,903 | 12,279 | 43,210 | 35,152 | ||||||||||||
Energy, Military, Environmental | 19,016 | 19,072 | 58,499 | 57,594 | ||||||||||||
Total Greatbatch Medical | 169,225 | 167,052 | 514,036 | 485,168 | ||||||||||||
QiG | 2,474 | 678 | 4,025 | 2,158 | ||||||||||||
Total sales | $ | 171,699 | $ | 167,730 | $ | 518,061 | $ | 487,326 | ||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | ' | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
3-Oct-14 | 27-Sep-13 | 3-Oct-14 | 27-Sep-13 | |||||||||||||
Segment income from operations: | ||||||||||||||||
Greatbatch Medical | $ | 31,121 | $ | 28,236 | $ | 98,688 | $ | 84,596 | ||||||||
QiG | (6,796 | ) | (6,946 | ) | (18,882 | ) | (21,679 | ) | ||||||||
Total segment income from operations | 24,325 | 21,290 | 79,806 | 62,917 | ||||||||||||
Unallocated operating expenses | (8,142 | ) | (4,288 | ) | (21,560 | ) | (14,441 | ) | ||||||||
Operating income as reported | 16,183 | 17,002 | 58,246 | 48,476 | ||||||||||||
Unallocated other income (expense) | 2,717 | (1,458 | ) | 847 | (10,855 | ) | ||||||||||
Income before provision for income taxes | $ | 18,900 | $ | 15,544 | $ | 59,093 | $ | 37,621 | ||||||||
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | ' | |||||||||||||||
Three customers accounted for a significant portion of the Company’s sales as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
3-Oct-14 | 27-Sep-13 | 3-Oct-14 | 27-Sep-13 | |||||||||||||
Customer A | 19 | % | 21 | % | 19 | % | 20 | % | ||||||||
Customer B | 15 | % | 16 | % | 16 | % | 16 | % | ||||||||
Customer C | 11 | % | 11 | % | 12 | % | 13 | % | ||||||||
Total | 45 | % | 48 | % | 47 | % | 49 | % | ||||||||
Geographic Areas, Revenues from External Customers [Abstract] | ' | |||||||||||||||
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | ' | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
3-Oct-14 | 27-Sep-13 | 3-Oct-14 | 27-Sep-13 | |||||||||||||
Sales by geographic area: | ||||||||||||||||
United States | $ | 76,330 | $ | 81,736 | $ | 235,203 | $ | 242,304 | ||||||||
Non-Domestic locations: | ||||||||||||||||
Puerto Rico | 34,581 | 31,936 | 101,064 | 87,592 | ||||||||||||
Belgium | 13,722 | 14,947 | 47,351 | 49,895 | ||||||||||||
Rest of world | 47,066 | 39,111 | 134,443 | 107,535 | ||||||||||||
Total sales | $ | 171,699 | $ | 167,730 | $ | 518,061 | $ | 487,326 | ||||||||
Geographic Areas, Long-Lived Assets [Abstract] | ' | |||||||||||||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | ' | |||||||||||||||
Long-lived tangible assets by geographic area are as follows (in thousands): | ||||||||||||||||
As of | ||||||||||||||||
3-Oct-14 | 3-Jan-14 | |||||||||||||||
United States | $ | 113,310 | $ | 116,484 | ||||||||||||
Rest of world | 29,026 | 29,289 | ||||||||||||||
Total | $ | 142,336 | $ | 145,773 | ||||||||||||
Basis_of_Presentation_Details
Basis of Presentation (Details) | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2014 | Sep. 27, 2013 | Oct. 03, 2014 | Sep. 27, 2013 | |
Accounting Policies [Abstract] | ' | ' | ' | ' |
Weeks In Reporting Period | '13 | '13 | '39 | '39 |
Acquisitions_Summary_of_Assets
Acquisitions (Summary of Assets Acquired and Liabilities Assumed) (Details) (USD $) | Oct. 03, 2014 | Jan. 03, 2014 | Aug. 12, 2014 |
In Thousands, unless otherwise specified | CCC [Member] | ||
Assets acquired | ' | ' | ' |
Current assets | ' | ' | $9,519 |
Property, plant and equipment | ' | ' | 1,106 |
Amortizing intangible assets | ' | ' | 6,100 |
Goodwill | 354,583 | 346,656 | 8,321 |
Total assets acquired | ' | ' | 25,046 |
Liabilities assumed | ' | ' | ' |
Current liabilities | ' | ' | 3,874 |
Deferred income taxes | ' | ' | 1,590 |
Total liabilities assumed | ' | ' | 5,464 |
Net assets acquired | ' | ' | $19,582 |
Acquisitions_Summary_of_Intang
Acquisitions (Summary of Intangible Assets) (Details) (CCC [Member], USD $) | 0 Months Ended |
In Thousands, unless otherwise specified | Aug. 12, 2014 |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Fair value assigned | $6,100 |
Technology And Patents [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Fair value assigned | 1,400 |
Weighted average amortization period (years) | '10 years |
Weighted average discount rate | 18.00% |
Customer Lists [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Fair value assigned | 4,600 |
Weighted average amortization period (years) | '10 years |
Weighted average discount rate | 18.00% |
Trademarks And Tradenames [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Fair value assigned | $100 |
Weighted average amortization period (years) | '2 years |
Weighted average discount rate | 18.00% |
Acquisitions_Pro_Forma_Informa
Acquisitions (Pro Forma Information) (Details) (CCC [Member], USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Oct. 03, 2014 | Sep. 27, 2013 | Oct. 03, 2014 | Sep. 27, 2013 |
CCC [Member] | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' |
Sales | $173,413 | $171,158 | $526,631 | $497,610 |
Net income | $14,219 | $11,407 | $42,165 | $27,495 |
Earnings per share: | ' | ' | ' | ' |
Basic (in dollars per share) | $0.57 | $0.47 | $1.70 | $1.15 |
Diluted (in dollars per share) | $0.55 | $0.45 | $1.63 | $1.10 |
Acquisitions_Narrative_Details
Acquisitions (Narrative) (Details) (CCC [Member], USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | |
In Millions, unless otherwise specified | Aug. 12, 2014 | Oct. 03, 2014 | Oct. 03, 2014 | Aug. 12, 2014 |
Business Acquisition [Line Items] | ' | ' | ' | ' |
Business Acquisition, Effective Date of Acquisition | 12-Aug-14 | ' | ' | ' |
Business Acquisition, Name of Acquired Entity | 'Centro de Construcción de Cardioestimuladores del Uruguay (“CCCâ€) | ' | ' | ' |
Business Acquisition, Description of Acquired Entity | 'CCC is an active implantable neuromodulation medical device systems developer and manufacturer that produces a range of medical devices including implantable pulse generators, programmer systems, battery chargers, patient wands and leads. | ' | ' | ' |
Business Combination, Reason for Business Combination | 'This acquisition allows the Company to more broadly partner with medical device companies, complements the Company’s core discrete technology offerings and enhances the Company’s medical device innovation efforts. | ' | ' | ' |
Business Combinations, Inventory Step-up Adjustment | ' | ' | ' | $0.30 |
Total revenue included from the acquired entity | ' | 1.6 | 1.6 | ' |
Total net income included from acquired entity | ' | 0.4 | 0.4 | ' |
Payment to acquire entity | $19.60 | ' | ' | ' |
Technology And Patents [Member] | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' |
Royalty rate (percent) | ' | ' | 3.00% | ' |
Customer Lists [Member] | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' |
Customer annual attrition rate | ' | ' | 15.00% | ' |
Trademarks And Tradenames [Member] | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' |
Royalty rate (percent) | ' | ' | 0.50% | ' |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Oct. 03, 2014 | Sep. 27, 2013 |
Noncash investing and financing activities: | ' | ' |
Common stock contributed to 401(k) Plan | $4,341 | $2,477 |
Property, plant and equipment purchases included in accounts payable | 2,618 | 711 |
Cash paid during the period for: | ' | ' |
Interest | 2,736 | 4,388 |
Income taxes | 11,791 | 31,755 |
Acquisition of noncash assets | 21,282 | 0 |
Liabilities assumed | $5,464 | $0 |
Inventories_Details
Inventories (Details) (USD $) | Oct. 03, 2014 | Jan. 03, 2014 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Inventory Raw Materials | $74,718 | $67,939 |
Inventory, Work in Process | 39,604 | 36,670 |
Inventory, Finished Goods | 14,405 | 13,749 |
Inventories | $128,727 | $118,358 |
Intangible_Assets_Amortizing_I
Intangible Assets (Amortizing Intangible Assets) (Details) (USD $) | Oct. 03, 2014 | Jan. 03, 2014 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-Lived Intangible Assets, Gross | $173,167 | $170,067 |
Finite-Lived Intangible Assets, Accumulated Amortization | -108,547 | -98,096 |
Foreign Currency Translation | 4,143 | 4,151 |
Amortizing intangible assets, net | 68,763 | 76,122 |
Purchased Technology And Patents [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-Lived Intangible Assets, Gross | 95,776 | 97,376 |
Finite-Lived Intangible Assets, Accumulated Amortization | -74,287 | -69,026 |
Foreign Currency Translation | 1,966 | 1,980 |
Amortizing intangible assets, net | 23,455 | 30,330 |
Customer Lists [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-Lived Intangible Assets, Gross | 72,857 | 68,257 |
Finite-Lived Intangible Assets, Accumulated Amortization | -29,705 | -24,671 |
Foreign Currency Translation | 1,374 | 1,367 |
Amortizing intangible assets, net | 44,526 | 44,953 |
Other Intangible Assets [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-Lived Intangible Assets, Gross | 4,534 | 4,434 |
Finite-Lived Intangible Assets, Accumulated Amortization | -4,555 | -4,399 |
Foreign Currency Translation | 803 | 804 |
Amortizing intangible assets, net | $782 | $839 |
Intangible_Assets_Amortization
Intangible Assets (Amortization Expense by Categories) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Oct. 03, 2014 | Sep. 27, 2013 | Oct. 03, 2014 | Sep. 27, 2013 | Jan. 03, 2014 |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Finite Lived Intangible Assets, Amortization Expense | $3,487 | $3,251 | $10,451 | $9,959 | ' |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | ' | ' | ' | ' | ' |
Remainder of 2014 | 3,426 | ' | 3,426 | ' | ' |
2015 | 12,988 | ' | 12,988 | ' | ' |
2016 | 10,676 | ' | 10,676 | ' | ' |
2017 | 9,520 | ' | 9,520 | ' | ' |
2018 | 7,232 | ' | 7,232 | ' | ' |
Thereafter | 24,921 | ' | 24,921 | ' | ' |
Amortizing intangible assets, net | 68,763 | ' | 68,763 | ' | 76,122 |
Cost of Sales [Member] | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Finite Lived Intangible Assets, Amortization Expense | 1,567 | 1,668 | 4,696 | 5,207 | ' |
Selling General And Administrative Expense [Member] | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Finite Lived Intangible Assets, Amortization Expense | 1,756 | 1,446 | 5,190 | 4,343 | ' |
Research and Development Expense [Member] | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Finite Lived Intangible Assets, Amortization Expense | $164 | $137 | $565 | $409 | ' |
Intangible_Assets_Indefinite_L
Intangible Assets (Indefinite Lived Intangible Assets) (Details) (USD $) | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Oct. 03, 2014 | Oct. 03, 2014 | Oct. 03, 2014 | Oct. 03, 2014 | Jan. 03, 2014 |
Greatbatch Medical [Member] | QiG [Member] | Trademarks And Tradenames [Member] | Trademarks And Tradenames [Member] | ||
Indefinite-lived Intangible Assets [Roll Forward] | ' | ' | ' | ' | ' |
Indefinite-lived intangible assets, beginning | $20,288 | ' | ' | $20,288 | $20,288 |
Indefinite-lived intangible assets, ending | 20,288 | ' | ' | 20,288 | 20,288 |
Goodwill [Roll Forward] | ' | ' | ' | ' | ' |
Goodwill | 346,656 | 304,856 | 41,800 | ' | ' |
Goodwill, Acquired During Period | 8,321 | 0 | 8,321 | ' | ' |
Foreign currency translation | -394 | -394 | 0 | ' | ' |
Goodwill | $354,583 | $304,462 | $50,121 | ' | ' |
Intangible_Assets_Narratives_D
Intangible Assets (Narratives) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Oct. 03, 2014 | Jan. 03, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' |
Contingent Liability From Intangible Asset Purchase | ' | $4 |
Reversal of Contingent Liability From Intangible Asset Purchase | $3 | ' |
Debt_Schedule_of_LongTerm_Debt
Debt (Schedule of Long-Term Debt) (Details) (USD $) | Oct. 03, 2014 | Jan. 03, 2014 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ' | ' |
Revolving line of credit | $0 | $0 |
Variable rate term loan | 190,000 | 197,500 |
Long-term debt | $190,000 | $197,500 |
Debt_Credit_Facility_Details_D
Debt (Credit Facility Details) (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Oct. 03, 2014 |
Line of Credit Facility [Abstract] | ' |
Credit Facility, Amendment Date | 20-Sep-13 |
Line of Credit Facility, Maximum Borrowing Capacity | $300 |
Term Loan, Maximum Borrowing Capacity | 200 |
Letter of Credit Subfacility Maximum Borrowing Capacity | 15 |
Swingline Subfacility Maximum Borrowing Capacity | 15 |
Credit Facility Borrowing Capacity Increase | 200 |
Line of Credit Facility, Expiration Date | 20-Sep-18 |
Line Of Credit Expiration Date Extension | 20-Sep-19 |
Debt Instrument, Maturity Date | 20-Sep-19 |
Debt Instrument, Collateral | 'The Credit Facility is secured by the Company’s non-realty assets including cash, accounts receivable and inventories. |
Interest Margin Above Prime Minimum Credit Facility | 0.00% |
Interest Margin Above Prime Maximum Credit Facility | 0.75% |
Interest Margin Above LIBOR Minimum Credit Facility | 1.38% |
Interest Margin Above LIBOR Maximum Credit Facility | 2.75% |
Interest Margin Above Prime Minimum Swingline | 0.00% |
Interest Margin Above Prime Maximum Swingline | 0.75% |
Line of Credit Facility Commitment Fee Percentage Minimum | 0.18% |
Line of Credit Facility Commitment Fee Percentage Maximum | 0.25% |
Credit Facility Aggregate Restricted Activities Limit | 300 |
Credit Facility Maximum Permitted Acquisitions | 250 |
Credit Facility Maximum Other Investment Purchases | 100 |
Credit Facility Maximum Stock Repurchases and Declare Dividends | 150 |
Credit Facility Maximum Foreign Subsidiary Investment | 20 |
Line of Credit, Adjustments to Limitations on Incurrence of Indebtedness, Maximum Leverage Ratio | 2.75 |
Credit Facility Restriction Available | 100.00% |
Credit Facility Aggregate Restricted Activities Limit Remaining | 280 |
Credit Facility Maximum Permitted Acquisitions Remaining | 230 |
Line of Credit Covenant, Adjusted EBITDA to Interest Expense, Ratio Required | 3 |
Line of Credit Covenant, Leverage Ratio, Maximum | 4.5 |
Line of Credit Covenant, Leverage Ratio, Maximum, As of Covenant Restrictive Effective Date | 4.25 |
Total Leverage Covenant Restriction Effective Date | 2-Jan-16 |
Debt Instrument, Covenant Compliance | 'As of October 3, 2014, the Company was in compliance with all covenants under the Credit Facility. |
Debt Weighted Average Interest Rate | 1.56% |
Debt Instrument, Unused Borrowing Capacity Amount | $300 |
Debt_Convertible_Notes_and_Int
Debt (Convertible Notes and Interest Rate Swap Details) (Details) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | 0 Months Ended | 0 Months Ended | |||||||||
Feb. 20, 2013 | Oct. 03, 2014 | Sep. 27, 2013 | Oct. 03, 2014 | Sep. 27, 2013 | Mar. 31, 2007 | Oct. 03, 2014 | Sep. 27, 2013 | Dec. 28, 2012 | Oct. 03, 2014 | Nov. 03, 2014 | Nov. 03, 2014 | Nov. 03, 2014 | Nov. 03, 2014 | Nov. 03, 2014 | |
Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |||||||
Other Liabilities [Member] | Interest Rate Swap 2 [Member] | Interest Rate Swap 2 [Member] | Interest Rate Swap 3 [Member] | Interest Rate Swap 3 [Member] | |||||||||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional Amount | ' | ' | ' | ' | ' | ' | $100,000,000 | ' | $150,000,000 | ' | ' | ' | $45,000,000 | ' | $45,000,000 |
Type of Hedge | ' | ' | ' | ' | ' | ' | 'Cash flow | ' | ' | ' | ' | ' | ' | ' | ' |
Start Date | ' | ' | ' | ' | ' | ' | 20-Feb-13 | ' | ' | ' | ' | 20-Feb-15 | ' | 22-Feb-16 | ' |
End Date | ' | ' | ' | ' | ' | ' | 22-Feb-16 | ' | ' | ' | ' | ' | ' | 20-Sep-19 | ' |
Pay Fixed Interest Rate | ' | ' | ' | ' | ' | ' | 0.57% | ' | ' | ' | ' | ' | 1.92% | ' | ' |
Current Receive Variable Interest Rate | ' | ' | ' | ' | ' | ' | 0.15% | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | -191,000 | ' | ' | ' | ' | ' |
Gain (Loss) Recognized In Income Ineffective Portion | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' |
Interest expense | ' | 1,051,000 | 1,515,000 | 3,208,000 | 9,948,000 | ' | 300,000 | 300,000 | ' | ' | ' | ' | ' | ' | ' |
Subsequent Event, Date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3-Nov-14 | ' | ' | ' | ' |
Annual Notional Amortizing Amount | ' | ' | ' | ' | ' | ' | 50,000,000 | ' | ' | ' | ' | ' | 10,000,000 | ' | ' |
Notional amortizing start date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21-Feb-17 | ' | ' | ' | ' |
Description Of Interest Rate Risk Exposure | ' | ' | ' | ' | ' | ' | 'This swap was entered into in order to hedge against potential changes in cash flows on the outstanding Credit Facility borrowings, which are also indexed to the one-month LIBOR rate. | ' | ' | ' | ' | 'The Company entered into an additional interest rate swap in order to hedge against potential changes in cash flows on the outstanding borrowings on the Credit Facility. | ' | ' | ' |
Description Of Interest Rate Cash Flow Hedge Accounting Method | ' | ' | ' | ' | ' | ' | 'This swap is being accounted for as a cash flow hedge. | ' | ' | ' | ' | 'The swap will be accounted for as a cash flow hedge. | ' | ' | ' |
Debt Instruments [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible Subordinated Debt | ' | ' | ' | ' | ' | $197,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Discount Percentage at Issuance | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | ' | 2.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate During Period | ' | ' | ' | ' | 8.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Redemption Date | 20-Feb-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt_Contractual_Interest_Deta
Debt (Contractual Interest) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 03, 2014 | Sep. 27, 2013 | Oct. 03, 2014 | Sep. 27, 2013 |
Interest Costs Incurred [Abstract] | ' | ' | ' | ' |
Contractual interest | $0 | $0 | $0 | $634 |
Discount amortization | $0 | $0 | $0 | $5,368 |
Debt_Longterm_Debt_Maturity_Sc
Debt (Long-term Debt Maturity Schedule) (Details) (USD $) | Oct. 03, 2014 | Jan. 03, 2014 |
In Thousands, unless otherwise specified | ||
Long-term Debt, Fiscal Year Maturity [Abstract] | ' | ' |
Remainder of 2014 | $2,500 | ' |
2015 | 11,250 | ' |
2016 | 16,250 | ' |
2017 | 20,000 | ' |
2018 | 20,000 | ' |
Thereafter | 120,000 | ' |
Long-term debt | $190,000 | $197,500 |
Debt_Deferred_Financing_Fees_D
Debt (Deferred Financing Fees) (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Oct. 03, 2014 |
Deferred Finance Costs [Roll Forward] | ' |
Deferred Finance Costs, Net, Beginning Balance | $3,860 |
Amortization during the period | -580 |
Deferred Finance Costs, Net, Ending Balance | $3,280 |
Defined_Benefit_Plans_Benefit_
Defined Benefit Plans (Benefit Obligation Roll Forward) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 03, 2014 | Sep. 27, 2013 | Oct. 03, 2014 | Sep. 27, 2013 |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' | ' |
At January 3, 2014 | ' | ' | $1,691 | ' |
Net defined benefit cost | 75 | 117 | 229 | -779 |
Benefit payments | ' | ' | -96 | ' |
Foreign currency translation | ' | ' | -153 | ' |
At October 3, 2014 | $1,671 | ' | $1,671 | ' |
Defined_Benefit_Plans_Defined_
Defined Benefit Plans (Defined Benefit Plan Costs) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 03, 2014 | Sep. 27, 2013 | Oct. 03, 2014 | Sep. 27, 2013 |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ' | ' | ' | ' |
Service cost | $51 | $76 | $155 | $227 |
Interest cost | 18 | 41 | 57 | 144 |
Curtailment gain (Other Operating Expenses, Net) | 0 | 0 | 0 | -1,150 |
Amortization of net loss | 6 | 0 | 17 | 0 |
Net defined benefit (income) cost | $75 | $117 | $229 | ($779) |
StockBased_Compensation_Expens
Stock-Based Compensation (Expense Details) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 03, 2014 | Sep. 27, 2013 | Oct. 03, 2014 | Sep. 27, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | $3,802 | $4,066 | $10,531 | $11,413 |
Stock Option [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 595 | 1,374 | 1,811 | 2,784 |
Restricted Stock And Unit Awards [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 1,850 | 2,013 | 5,008 | 4,958 |
Retirement Plan [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 1,357 | 679 | 3,712 | 3,671 |
Cost of Sales [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 1,129 | 1,117 | 3,187 | 3,246 |
Selling General And Administrative Expense [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 1,951 | 1,598 | 5,872 | 6,052 |
Research and Development Expense [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 429 | 215 | 1,179 | 979 |
Other Operating Expenses, net [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | $293 | $1,136 | $293 | $1,136 |
StockBased_Compensation_Fair_V
Stock-Based Compensation (Fair Value Assumptions) (Details) (USD $) | 9 Months Ended | |
Oct. 03, 2014 | Sep. 27, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' |
Weighted average fair value | $16.43 | $8.38 |
Risk-free interest rate | 1.73% | 0.73% |
Expected volatility | 39.00% | 39.00% |
Expected life (in years) | '5 years | '5 years |
Expected dividend yield | 0.00% | 0.00% |
StockBased_Compensation_Stock_
Stock-Based Compensation (Stock Option Activity) (Details) (USD $) | 9 Months Ended |
In Millions, except Share data, unless otherwise specified | Oct. 03, 2014 |
Stock Options Time Based [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' |
Stock Options Outstanding, Beginning | 1,616,409 |
Option Grants in Period, Gross | 183,571 |
Option Exercises in Period | -191,501 |
Option Forfeitures and Expirations in Period | -33,279 |
Stock Options Outstanding, Ending | 1,575,200 |
Options Exercisable, Number | 1,159,129 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ' |
Options Outstanding, Weighted Average Exercise Price, Beginning | $22.92 |
Option Grants in Period, Weighted Average Exercise Price | $43.84 |
Option Exercises in Period, Weighted Average Exercise Price | $22.94 |
Option Forfeitures and Expirations in Period, Weighted Average Exercise Price | $27.82 |
Options Outstanding, Weighted Average Exercise Price, Ending | $25.26 |
Options Exercisable, Weighted Average Exercise Price | $23.09 |
Options Outstanding, Weighted Average Remaining Contractual Term | '6 years 3 months 18 days |
Options Exercisable, Weighted Average Remaining Contractual Term | '5 years 6 months |
Options Outstanding, Intrinsic Value | $28.90 |
Options Exercisable, Intrinsic Value | 23.7 |
Stock Options Performance Based [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' |
Stock Options Outstanding, Beginning | 177,261 |
Option Exercises in Period | -56,243 |
Stock Options Outstanding, Ending | 121,018 |
Options Exercisable, Number | 121,018 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ' |
Options Outstanding, Weighted Average Exercise Price, Beginning | $23.27 |
Option Exercises in Period, Weighted Average Exercise Price | $23.34 |
Options Outstanding, Weighted Average Exercise Price, Ending | $23.25 |
Options Exercisable, Weighted Average Exercise Price | $23.25 |
Options Outstanding, Weighted Average Remaining Contractual Term | '3 years 2 months 12 days |
Options Exercisable, Weighted Average Remaining Contractual Term | '3 years 2 months 12 days |
Options Outstanding, Intrinsic Value | 2.5 |
Options Exercisable, Intrinsic Value | $2.50 |
StockBased_Compensation_Stock_1
Stock-Based Compensation (Stock Award Activity) (Details) (USD $) | 9 Months Ended |
Oct. 03, 2014 | |
Restricted Stock And Restricted Stock Units Time Based [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' |
Nonvested Restricted Stock Units and Awards, Beginning | 67,575 |
Restricted Stock Units and Awards Granted | 63,817 |
Restricted Stock Units and Awards Vested | -14,118 |
Restricted Stock Units and Awards Forfeited | -7,073 |
Nonvested Restricted Stock Units and Awards, Ending | 110,201 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ' |
Restricted Stock Units and Awards, Weighted Average Grant Date Fair Value, Beginning | $26.37 |
Restricted Stock Units and Awards Granted, Weighted Average Fair Value | $44.78 |
Restricted Stock Units and Awards Vested, Weighted Average Fair Value | $43.80 |
Restricted Stock Units and Awards Forfeited, Weighted Average Fair Value | $33.79 |
Restricted Stock Units and Awards, Weighted Average Grant Date Fair Value, Ending | $34.32 |
Restricted Stock And Restricted Stock Units Performance Based [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' |
Nonvested Restricted Stock Units and Awards, Beginning | 779,678 |
Restricted Stock Units and Awards Granted | 186,825 |
Restricted Stock Units and Awards Vested | -221,470 |
Restricted Stock Units and Awards Forfeited | -28,870 |
Nonvested Restricted Stock Units and Awards, Ending | 716,163 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ' |
Restricted Stock Units and Awards, Weighted Average Grant Date Fair Value, Beginning | $16.41 |
Restricted Stock Units and Awards Granted, Weighted Average Fair Value | $31.33 |
Restricted Stock Units and Awards Vested, Weighted Average Fair Value | $18.51 |
Restricted Stock Units and Awards Forfeited, Weighted Average Fair Value | $18.42 |
Restricted Stock Units and Awards, Weighted Average Grant Date Fair Value, Ending | $19.57 |
Other_Operating_Income_Expense2
Other Operating (Income) Expenses, Net (Expense Categories) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 03, 2014 | Sep. 27, 2013 | Oct. 03, 2014 | Sep. 27, 2013 |
Other Operating Income Expense Detail [Line Items] | ' | ' | ' | ' |
Other Operating (Income) Expenses, Net | $6,176 | $3,500 | $10,223 | $10,560 |
Investments in Capacity and Capabilities [Member] | ' | ' | ' | ' |
Other Operating Income Expense Detail [Line Items] | ' | ' | ' | ' |
Other Operating (Income) Expenses, Net | 2,787 | 0 | 5,005 | 0 |
Operating Unit Realignment [Member] | ' | ' | ' | ' |
Other Operating Income Expense Detail [Line Items] | ' | ' | ' | ' |
Other Operating (Income) Expenses, Net | -31 | 2,214 | 1,004 | 3,066 |
Orthopaedic Facility Optimization [Member] | ' | ' | ' | ' |
Other Operating Income Expense Detail [Line Items] | ' | ' | ' | ' |
Other Operating (Income) Expenses, Net | 996 | 1,420 | 1,032 | 6,723 |
Medical Device Facility Optimization [Member] | ' | ' | ' | ' |
Other Operating Income Expense Detail [Line Items] | ' | ' | ' | ' |
Other Operating (Income) Expenses, Net | 0 | 52 | 11 | 282 |
ERP System Upgrade [Member] | ' | ' | ' | ' |
Other Operating Income Expense Detail [Line Items] | ' | ' | ' | ' |
Other Operating (Income) Expenses, Net | 0 | -121 | -82 | 264 |
Acquisition And Integration Costs [Member] | ' | ' | ' | ' |
Other Operating Income Expense Detail [Line Items] | ' | ' | ' | ' |
Other Operating (Income) Expenses, Net | 133 | -522 | -248 | -340 |
Asset Dispositions Severance And Other [Member] | ' | ' | ' | ' |
Other Operating Income Expense Detail [Line Items] | ' | ' | ' | ' |
Other Operating (Income) Expenses, Net | $2,291 | $457 | $3,501 | $565 |
Other_Operating_Income_Expense3
Other Operating (Income) Expenses, Net (Restructuring Costs and Reserve Details) (Details) (USD $) | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 3 Months Ended | |||||||||||||||||||||||||
Oct. 03, 2014 | Sep. 27, 2013 | Oct. 03, 2014 | Oct. 03, 2014 | Oct. 03, 2014 | Oct. 03, 2014 | Oct. 03, 2014 | Oct. 03, 2014 | Oct. 03, 2014 | Oct. 03, 2014 | Oct. 03, 2014 | Oct. 03, 2014 | Oct. 03, 2014 | Oct. 03, 2014 | Oct. 03, 2014 | Oct. 03, 2014 | Oct. 03, 2014 | Oct. 03, 2014 | Oct. 03, 2014 | Jan. 03, 2014 | Oct. 03, 2014 | Oct. 03, 2014 | Oct. 03, 2014 | Oct. 03, 2014 | Oct. 03, 2014 | Oct. 03, 2014 | Oct. 03, 2014 | Oct. 03, 2014 | Oct. 03, 2014 | Oct. 03, 2014 | Oct. 03, 2014 | Oct. 03, 2014 | Oct. 03, 2014 | Oct. 03, 2014 | Oct. 03, 2014 | Oct. 03, 2014 | Oct. 03, 2014 | |
Investments in Capacity and Capabilities [Member] | Investments in Capacity and Capabilities [Member] | Investments in Capacity and Capabilities [Member] | Investments in Capacity and Capabilities [Member] | Investments in Capacity and Capabilities [Member] | Investments in Capacity and Capabilities [Member] | Investments in Capacity and Capabilities [Member] | Investments in Capacity and Capabilities [Member] | Investments in Capacity and Capabilities [Member] | Operating Unit Realignment [Member] | Operating Unit Realignment [Member] | Operating Unit Realignment [Member] | Operating Unit Realignment [Member] | Operating Unit Realignment [Member] | Operating Unit Realignment [Member] | Operating Unit Realignment [Member] | Orthopaedic Facility Optimization [Member] | Orthopaedic Facility Optimization [Member] | Orthopaedic Facility Optimization [Member] | Orthopaedic Facility Optimization [Member] | Orthopaedic Facility Optimization [Member] | Orthopaedic Facility Optimization [Member] | Orthopaedic Facility Optimization [Member] | Orthopaedic Facility Optimization [Member] | Medical Device Facility Optimization [Member] | Medical Device Facility Optimization [Member] | Medical Device Facility Optimization [Member] | Medical Device Facility Optimization [Member] | Medical Device Facility Optimization [Member] | Medical Device Facility Optimization [Member] | Medical Device Facility Optimization [Member] | ERP System Upgrade [Member] | ERP System Upgrade [Member] | ERP System Upgrade [Member] | Executive Vice President [Member] | |||
Minimum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | building | Severance And Retention [Member] | Accelerated Depreciation And Asset Write Offs [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | facility | Production Inefficiencies, Moving And Revalidation [Member] | Personnel [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Training And Consulting Costs [Member] | Accelerated Depreciation And Asset Write Offs [Member] | ||||||||
Severance And Retention [Member] | Accelerated Depreciation And Asset Write Offs [Member] | Other Restructuring [Member] | Severance And Retention [Member] | Accelerated Depreciation And Asset Write Offs [Member] | Other Restructuring [Member] | Severance And Retention [Member] | Other Restructuring [Member] | Severance And Retention [Member] | Other Restructuring [Member] | Other Restructuring [Member] | Other Restructuring [Member] | Other Restructuring [Member] | Other Restructuring [Member] | ||||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and Related Activities, Description | ' | ' | 'In 2014, the Company announced several initiatives to invest in capacity and capabilities and to better align its resources to meet its customers' needs and drive organic growth and profitability. This included the following: Functions currently performed at the Company’s facility in Plymouth, MN to manufacture catheters and introducers will transfer into the Company’s existing facility in Tijuana, Mexico by the first half of 2016. Functions currently performed at the Company’s facilities in Beaverton, OR and Raynham, MA to manufacture products for the portable medical market will transfer to a new facility in Tijuana, Mexico by the end of 2015. Products currently manufactured at the Beaverton facility, which do not serve the portable medical market, are planned to transfer to the Company’s Raynham facility. Establishing a R&D hub in the Minneapolis/St. Paul, MN area for the Company's Global R&D QiG - Medical Device Systems team, which will serve as the technical center of expertise for active implantable medical device development, implantable leads design, system level design verification testing, and continuation engineering. As part of this initiative, the design engineering responsibilities currently performed at our Cleveland, OH facility will be transferred to the new R&D hub by the end of 2014. Establishing a commercial operations hub at the Company's global headquarters in Frisco, Texas. This initiative will build upon the investment the Company has made in its global sales and marketing function and is expected to be completed during the first half of 2015. | ' | ' | ' | ' | ' | ' | ' | ' | 'In June 2013, the Company initiated a plan to realign its operating structure in order to optimize its continued focus on profitable growth. As part of this initiative, the sales and marketing and operations groups of its former Implantable Medical and Electrochem Solutions ("Electrochem") reportable segments were combined into one sales and marketing and one operations group serving the entire Company. This initiative is expected to be completed by the end of 2014. | ' | ' | ' | ' | ' | ' | 'In 2010, the Company began updating its Indianapolis, IN facility to streamline operations, consolidate two buildings, increase capacity, further expand capabilities and reduce dependence on outside suppliers. This initiative was completed in 2011. In 2011, the Company began construction on an orthopaedic manufacturing facility in Fort Wayne, IN and transferred manufacturing operations being performed at its Columbia City, IN location into this new facility. This initiative was completed in 2012. During 2012, the Company transferred manufacturing and development operations performed at its facilities in Orvin and Corgemont, Switzerland into existing facilities in Fort Wayne, IN and Tijuana, Mexico. During 2013, the Company initiated a project to expand its Chaumont, France facility in order to enhance its capabilities and fulfill larger volume customer supply agreements. This initiative is expected to be completed over the next three years. | ' | ' | ' | ' | ' | ' | ' | 'Near the end of 2011, the Company initiated plans to upgrade and expand its manufacturing infrastructure in order to support its medical device strategy. This includes the transfer of certain product lines to create additional capacity for the manufacture of medical devices, expansion of two existing facilities, as well as the purchase of equipment to enable the production of medical devices. These initiatives are expected to be completed over the next three months. | ' | ' | ' | ' | ' | ' | 'In 2011, the Company initiated plans to upgrade its existing global ERP system. This initiative was completed during the first half of 2014. | ' | ' | ' |
Restructuring Initiation Date | ' | ' | '2014 | ' | ' | ' | ' | ' | ' | ' | ' | 'June 2013 | ' | ' | ' | ' | ' | ' | '2010 | ' | ' | ' | ' | ' | ' | ' | '2011 | ' | ' | ' | ' | ' | ' | '2011 | ' | ' | ' |
Restructuring and Related Costs, Facility Consolidations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and Related Costs, Facility Expansions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring And Related Activities Expected Capital Expenditures | ' | ' | ' | $25,000,000 | ' | ' | ' | $27,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $30,000,000 | ' | $35,000,000 | ' | ' | ' | ' | $12,500,000 | ' | $13,000,000 | ' | ' | ' | ' | ' |
Restructuring And Related Activities Capital Expenditures Incurred To Date | ' | ' | 1,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23,700,000 | ' | ' | ' | ' | ' | ' | ' | 12,500,000 | ' | ' | ' | ' | ' | ' | 4,000,000 | ' | ' | ' |
Restructuring and Related Cost, Expected Cost | ' | ' | ' | 29,000,000 | 7,000,000 | 2,000,000 | 20,000,000 | 34,000,000 | 9,000,000 | 3,000,000 | 22,000,000 | ' | 6,600,000 | 5,000,000 | 1,600,000 | 7,000,000 | 5,200,000 | 1,800,000 | ' | ' | 11,000,000 | 13,000,000 | 43,000,000 | 19,000,000 | 48,000,000 | 24,000,000 | ' | 700,000 | 600,000 | 1,800,000 | 500,000 | 2,000,000 | 700,000 | ' | ' | ' | ' |
Restructuring and Related Cost, Cost Incurred to Date | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 6,600,000 | ' | ' | ' | ' | ' | ' | 42,000,000 | ' | ' | ' | ' | ' | ' | ' | 1,800,000 | ' | ' | ' | ' | ' | ' | 5,800,000 | 3,300,000 | 2,500,000 | ' |
Proceeds from sale of orthopaedic product lines | 2,655,000 | 3,228,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liabilities Assumed By Third Parties | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain (Loss) on Disposition of Business | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and Related Costs, Expected Completion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | '3 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Severance Costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $800,000 |
Other_Operating_Income_Expense4
Other Operating (Income) Expenses, Net Changes in Accrued Liabilities (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Oct. 03, 2014 |
Investments in Capacity and Capabilities [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Restructuring Reserve, Beginning Balance | $0 |
Restructuring charges | 5,005 |
Restructuring Reserve, Settled without Cash | -33 |
Cash (payments) receipts | -3,272 |
Restructuring Reserve, Ending Balance | 1,700 |
Operating Unit Realignment [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Restructuring Reserve, Beginning Balance | 1,211 |
Restructuring charges | 1,004 |
Cash (payments) receipts | -2,215 |
Restructuring Reserve, Ending Balance | 0 |
Orthopaedic Facility Optimization [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Restructuring Reserve, Beginning Balance | 857 |
Restructuring charges | 1,032 |
Cash (payments) receipts | -1,349 |
Restructuring Reserve, Ending Balance | 540 |
Medical Device Facility Optimization [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Restructuring Reserve, Beginning Balance | 0 |
Restructuring charges | 11 |
Cash (payments) receipts | -11 |
Restructuring Reserve, Ending Balance | 0 |
ERP System Upgrade [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Restructuring Reserve, Beginning Balance | 0 |
Restructuring charges | -82 |
Cash (payments) receipts | 82 |
Restructuring Reserve, Ending Balance | 0 |
Severance And Retention [Member] | Investments in Capacity and Capabilities [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Restructuring Reserve, Beginning Balance | 0 |
Restructuring charges | 1,445 |
Restructuring Reserve, Settled without Cash | 0 |
Cash (payments) receipts | -434 |
Restructuring Reserve, Ending Balance | 1,011 |
Severance And Retention [Member] | Operating Unit Realignment [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Restructuring Reserve, Beginning Balance | 465 |
Restructuring charges | 849 |
Cash (payments) receipts | -1,314 |
Restructuring Reserve, Ending Balance | 0 |
Severance And Retention [Member] | Orthopaedic Facility Optimization [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Restructuring Reserve, Beginning Balance | 0 |
Restructuring charges | 0 |
Cash (payments) receipts | 0 |
Restructuring Reserve, Ending Balance | 0 |
Production Inefficiencies, Moving And Revalidation [Member] | Medical Device Facility Optimization [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Restructuring Reserve, Beginning Balance | 0 |
Restructuring charges | 0 |
Cash (payments) receipts | 0 |
Restructuring Reserve, Ending Balance | 0 |
Training And Consulting Costs [Member] | ERP System Upgrade [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Restructuring Reserve, Beginning Balance | 0 |
Restructuring charges | -82 |
Cash (payments) receipts | 82 |
Restructuring Reserve, Ending Balance | 0 |
Accelerated Depreciation And Asset Write Offs [Member] | Investments in Capacity and Capabilities [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Restructuring Reserve, Beginning Balance | 0 |
Restructuring charges | 33 |
Restructuring Reserve, Settled without Cash | -33 |
Cash (payments) receipts | 0 |
Restructuring Reserve, Ending Balance | 0 |
Accelerated Depreciation And Asset Write Offs [Member] | Orthopaedic Facility Optimization [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Restructuring Reserve, Beginning Balance | 0 |
Restructuring charges | -2,655 |
Cash (payments) receipts | 2,655 |
Restructuring Reserve, Ending Balance | 0 |
Accelerated Depreciation And Asset Write Offs [Member] | ERP System Upgrade [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Restructuring Reserve, Beginning Balance | 0 |
Restructuring charges | 0 |
Cash (payments) receipts | 0 |
Restructuring Reserve, Ending Balance | 0 |
Personnel [Member] | Medical Device Facility Optimization [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Restructuring Reserve, Beginning Balance | 0 |
Restructuring charges | 1 |
Cash (payments) receipts | -1 |
Restructuring Reserve, Ending Balance | 0 |
Other Restructuring [Member] | Investments in Capacity and Capabilities [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Restructuring Reserve, Beginning Balance | 0 |
Restructuring charges | 3,527 |
Restructuring Reserve, Settled without Cash | 0 |
Cash (payments) receipts | -2,838 |
Restructuring Reserve, Ending Balance | 689 |
Other Restructuring [Member] | Operating Unit Realignment [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Restructuring Reserve, Beginning Balance | 746 |
Restructuring charges | 155 |
Cash (payments) receipts | -901 |
Restructuring Reserve, Ending Balance | 0 |
Other Restructuring [Member] | Orthopaedic Facility Optimization [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Restructuring Reserve, Beginning Balance | 857 |
Restructuring charges | 3,687 |
Cash (payments) receipts | -4,004 |
Restructuring Reserve, Ending Balance | 540 |
Other Restructuring [Member] | Medical Device Facility Optimization [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Restructuring Reserve, Beginning Balance | 0 |
Restructuring charges | 10 |
Cash (payments) receipts | -10 |
Restructuring Reserve, Ending Balance | $0 |
Income_Taxes_Narratives_Detail
Income Taxes (Narratives) (Details) (USD $) | Oct. 03, 2014 |
In Millions, unless otherwise specified | |
Income Tax Disclosure [Abstract] | ' |
Unrecognized Tax Benefits | $1.60 |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | 0.6 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $1.50 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Narratives) (Details) (USD $) | 9 Months Ended |
Oct. 03, 2014 | |
Loss Contingencies [Line Items] | ' |
Standard Product Warranty Description | 'The Company generally warrants that its products will meet customer specifications and will be free from defects in materials and workmanship. |
Significant Purchase Commitment Description | 'Contractual obligations for purchase of goods or services are defined as agreements that are enforceable and legally binding on the Company and that specify all significant terms, including: fixed or minimum quantities to be purchased; fixed, minimum, or variable price provisions; and the approximate timing of the transaction. The Company’s purchase orders are normally based on its current manufacturing needs and are fulfilled by its vendors within short time horizons. The Company also enters into blanket orders with vendors that have preferred pricing and terms, however these orders are normally cancelable without penalty. |
Significant Purchase Commitment Remaining Minimum Amount Committed | $31,700,000 |
Description of Types of Foreign Currency Cash Flow Hedging Instruments Used | 'The Company enters into forward contracts to purchase Mexican pesos in order to hedge the risk of peso-denominated payments associated with the operations at its Tijuana, Mexico facility. |
Maximum Aggregate Loss Under Medical Plan Stop Loss Insurance Per Employee | 225,000 |
Accrued Self Insured Medical Plan Liability | 1,800,000 |
Litigation One [Member] | ' |
Loss Contingencies [Line Items] | ' |
Customer Product Liability Insurance Coverage | 5,000,000 |
Loss Contingency Domicile Of Litigation | '113th Judicial District Court of Harris County, Texas |
Loss Contingency Allegations | 'The complaint seeks damages alleging marketing and product defects and failure to warn, negligence and gross negligence relating to a product the Company manufactured and sold to a customer, one of the other named defendants. The Company's customer, in turn, incorporated the Greatbatch product into its own product which it sold to its customer, another named defendant. |
Product Liability Insurance Coverage | $10,000,000 |
Loss Contingency Opinion Of Counsel | 'To date, the Company has not recorded a reserve in connection with this matter since any potential loss is not currently probable and the range of loss is not reasonably estimable at this time. |
Commitments_and_Contingencies_2
Commitments and Contingencies (Product Warranty Rollforward) (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Oct. 03, 2014 |
Movement in Standard Product Warranty Accrual [Roll Forward] | ' |
Standard Product Warranty Accrual, Beginning Balance | $1,819 |
Standard Product Warranty Accrual, Warranties Issued | 680 |
Standard Product Warranty Accrual, Payments | -1,934 |
Standard Product Warranty Accrual, Ending Balance | $565 |
Commitments_and_Contingencies_3
Commitments and Contingencies (Future Lease Payments) (Details) (USD $) | Oct. 03, 2014 |
In Thousands, unless otherwise specified | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ' |
Remainder of 2014 | $1,285 |
2015 | 5,635 |
2016 | 5,036 |
2017 | 2,548 |
2018 | 2,099 |
Thereafter | 6,352 |
Total estimated operating lease expense | $22,955 |
Commitments_and_Contingencies_4
Commitments and Contingencies (FX Contract Details) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 03, 2014 | Sep. 27, 2013 | Oct. 03, 2014 | Sep. 27, 2013 |
Foreign Currency Cash Flow Hedges [Abstract] | ' | ' | ' | ' |
Increase (reduction) in Cost of Sales | ($48) | ($346) | ($204) | ($908) |
Ineffective portion of change in fair value | 0 | 0 | 0 | 0 |
Fx Contract 1 [Member] | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' |
Derivative, Type of Instrument | ' | ' | 'FX Contract | ' |
Notional Amount of Foreign Currency Cash Flow Hedge Derivatives | 1,927 | ' | 1,927 | ' |
Start Date | ' | ' | 1-Jan-14 | ' |
End Date | ' | ' | 31-Dec-14 | ' |
$/Peso | 0.0767 | ' | 0.0767 | ' |
Foreign Currency Cash Flow Hedge Liability at Fair Value | -72 | ' | -72 | ' |
Balance Sheet Location | ' | ' | 'Accrued expenses | ' |
Fx Contract 2 [Member] | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' |
Derivative, Type of Instrument | ' | ' | 'FX Contract | ' |
Notional Amount of Foreign Currency Cash Flow Hedge Derivatives | 1,580 | ' | 1,580 | ' |
Start Date | ' | ' | 1-Jan-14 | ' |
End Date | ' | ' | 31-Dec-14 | ' |
$/Peso | 0.0752 | ' | 0.0752 | ' |
Foreign Currency Cash Flow Hedge Liability at Fair Value | ($30) | ' | ($30) | ' |
Balance Sheet Location | ' | ' | 'Accrued expenses | ' |
Earnings_Per_Share_EPS_Details
Earnings Per Share (EPS) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Oct. 03, 2014 | Sep. 27, 2013 | Oct. 03, 2014 | Sep. 27, 2013 |
Net Income (Loss) Available to Common Stockholders, Diluted [Abstract] | ' | ' | ' | ' |
Net income | $14,012 | $11,071 | $41,282 | $26,486 |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ' | ' | ' | ' |
Basic | 24,899,000 | 24,047,000 | 24,784,000 | 23,904,000 |
Effect of dilutive securities stock options, restricted stock and restricted stock units | 1,024,000 | 1,141,000 | 1,066,000 | 1,113,000 |
Denominator for diluted EPS | 25,923,000 | 25,188,000 | 25,850,000 | 25,017,000 |
Basic EPS | $0.56 | $0.46 | $1.67 | $1.11 |
Diluted EPS | $0.54 | $0.44 | $1.60 | $1.06 |
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Debt Securities | ' | ' | ' | 0 |
Anitdilutive Securities Excluded From Earnings Per Share [Abstract] | ' | ' | ' | ' |
Time-vested stock options, restricted stock and restricted stock units | 163,000 | 43,000 | 177,000 | 59,000 |
Performance-vested stock options and restricted stock units | 4,400 | 27,000 | 3,600 | 26,000 |
Comprehensive_Income_Details
Comprehensive Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 03, 2014 | Sep. 27, 2013 | Oct. 03, 2014 | Sep. 27, 2013 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Tax, [Abstract] | ' | ' | ' | ' |
Defined Benefit Plan Liability, Beginning | ($672) | ($365) | ($672) | ($962) |
Defined Benefit Plan Liability, Ending | -672 | -365 | -672 | -365 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax [Abstract] | ' | ' | ' | ' |
Cash Flow Hedges, Beginning | -218 | 178 | -468 | 120 |
Unrealized gain (loss) on cash flow hedges | -133 | -419 | 35 | 2 |
Realized Gain Loss On Foreign Currency Contracts Before Tax | -48 | -346 | -204 | -908 |
Realized Gain Loss On Interest Rate Swaps Before Tax | 106 | 145 | 344 | 344 |
Cash Flow Hedges, End | -293 | -442 | -293 | -442 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax [Abstract] | ' | ' | ' | ' |
Foreign Currency Translation Adjustment, Beginning | 15,741 | 10,999 | 14,952 | 13,431 |
Net foreign currency translation gain (loss) | -3,211 | 3,579 | -2,422 | 1,147 |
Foreign Currency Translation Adjustment, End | 12,530 | 14,578 | 12,530 | 14,578 |
Other Comprehensive Income (Loss), before Tax [Abstract] | ' | ' | ' | ' |
Total Pre-Tax Amount, Beginning | 14,851 | 10,812 | 13,812 | 12,589 |
Unrealized gain (loss) on cash flow hedges | -133 | -419 | 35 | 2 |
Realized gain loss on foreign currency hedges - before tax | -48 | -346 | -204 | -908 |
Realized gain loss on interest rate swaps - before tax | 106 | 145 | 344 | 344 |
Net defined benefit plan liability adjustments | ' | ' | ' | 597 |
Net foreign currency translation gain (loss) | -3,211 | 3,579 | -2,422 | 1,147 |
Total Pre-Tax Amount, End | 11,565 | 13,771 | 11,565 | 13,771 |
Other Comprehensive Income (Loss), Tax [Abstract] | ' | ' | ' | ' |
Tax, Beginning | 459 | 338 | 546 | 358 |
Unrealized gain (loss) on cash flow hedges | 46 | 147 | -12 | -1 |
Realized gain loss on foreign currency contracts - tax | 17 | 121 | 71 | 318 |
Realized gain loss on interest rate swap hedges - tax | -37 | -51 | -120 | -120 |
Net defined benefit plan gain - tax | ' | ' | ' | 0 |
Net foreign currency translation gain (loss) | 0 | 0 | 0 | 0 |
Tax, End | 485 | 555 | 485 | 555 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' | ' | ' |
Net-of-Tax Amount, Beginning | 15,310 | 11,150 | 14,358 | 12,947 |
Unrealized gain (loss) on cash flow hedges, net of tax | -87 | -272 | 23 | 1 |
Realized gain loss on foreign currency hedges, net of tax | -31 | -225 | -133 | -590 |
Realized gain loss on interest rate swap hedges, net of tax | 69 | 94 | 224 | 224 |
Net defined benefit plan gain, net of tax | 0 | 0 | 0 | 597 |
Foreign currency translation gain (loss) | -3,211 | 3,579 | -2,422 | 1,147 |
Net-of-Tax Amount, End | $12,050 | $14,326 | $12,050 | $14,326 |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income Amounts Recognized in AOCI (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 03, 2014 | Sep. 27, 2013 | Oct. 03, 2014 | Sep. 27, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net gain occurring during the period | ' | ' | ' | ($171) |
Amortization of losses | ' | ' | ' | -581 |
Prior service cost | ' | ' | ' | 155 |
Pre-tax adjustment | ' | ' | ' | -597 |
Taxes | ' | ' | ' | 0 |
Net | $0 | $0 | $0 | ($597) |
Fair_Value_Measurement_Recurri
Fair Value Measurement (Recurring Measurements) (Details) (USD $) | Oct. 03, 2014 |
In Millions, unless otherwise specified | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ' |
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months | $0.10 |
Fair_Value_Measurement_Conting
Fair Value Measurement (Contingent Consideration Roll Forward) (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Oct. 03, 2014 |
Contingent Consideration Liability [Roll Forward] | ' |
At January 3, 2014 | $840 |
Fair value adjustments | -750 |
At October 3, 2014 | $90 |
Fair_Value_Measurement_Conting1
Fair Value Measurement (Contingent Consideration Assumptions) (Details) (USD $) | Oct. 03, 2014 | Jan. 03, 2014 | Oct. 03, 2014 |
Development Milestones [Member] | |||
Fair Value Assumptions [Line Items] | ' | ' | ' |
Business Combination, Contingent Consideration, Liability | $90,000 | $840,000 | $90,000 |
Risk Adjusted Discount Rate For Contingent Consideration | ' | ' | 20.00% |
Contingent Consideration Liability Projected Year Of Payment | ' | ' | '2015 |
Contingent Consideration Liability Probability Weighted Payment Amount | ' | ' | $100,000 |
Fair_Value_Measurement_Recurri1
Fair Value Measurement (Recurring and Nonrecurring Measurement Basis) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2014 | Oct. 03, 2014 | Sep. 27, 2013 | Jan. 03, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Foreign Currency Contracts, Liability, Fair Value Disclosure | $102,000 | $102,000 | ' | ' |
Interest rate swap | 191,000 | 191,000 | ' | ' |
Business Combination, Contingent Consideration, Liability | 90,000 | 90,000 | ' | 840,000 |
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' | ' |
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 2,100,000 | 2,100,000 | ' | ' |
Long Lived Assets Impairment Loss | ' | 0 | 0 | ' |
Maximum Potential Payment Due Upon Achievement Of Certain Milestones | 1,000,000 | 1,000,000 | ' | ' |
Goodwill, Impairment Loss | ' | 0 | 0 | ' |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | ' | ' | 0 | ' |
Impairment of Intangible Assets (Excluding Goodwill) | ' | 0 | ' | ' |
Cost-method Investments, Realized Gains | 3,200,000 | ' | ' | ' |
Cost And Equity Method Investments Aggregate Carrying Amount | 12,000,000 | 12,000,000 | ' | 12,300,000 |
Cost And Equity Method Investments Realized Gains Losses Net | ' | 3,900,000 | -600,000 | ' |
Fair Value, Inputs, Level 1 [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0 | 0 | ' | ' |
Interest rate swap | 0 | 0 | ' | ' |
Business Combination, Contingent Consideration, Liability | 0 | 0 | ' | ' |
Fair Value, Inputs, Level 2 [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 102,000 | 102,000 | ' | ' |
Interest rate swap | 191,000 | 191,000 | ' | ' |
Business Combination, Contingent Consideration, Liability | 0 | 0 | ' | ' |
Fair Value, Inputs, Level 3 [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0 | 0 | ' | ' |
Interest rate swap | 0 | 0 | ' | ' |
Business Combination, Contingent Consideration, Liability | 90,000 | 90,000 | ' | ' |
Financial Milestones [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Business Combination, Contingent Consideration, Liability | $0 | $0 | ' | ' |
Recovered_Sheet1
Business Segment, Geographic And Concentration Risk Information (Segment Revenue by Categories) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 03, 2014 | Sep. 27, 2013 | Oct. 03, 2014 | Sep. 27, 2013 |
Segment | ||||
Segment Reporting [Abstract] | ' | ' | ' | ' |
Number of Reportable Segments | ' | ' | 2 | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Sales Revenue, Net | $171,699 | $167,730 | $518,061 | $487,326 |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' |
Revenue Major Customer Percent | 45.00% | 48.00% | 47.00% | 49.00% |
Customer A [Member] | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' |
Revenue Major Customer Percent | 19.00% | 21.00% | 19.00% | 20.00% |
Customer B [Member] | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' |
Revenue Major Customer Percent | 15.00% | 16.00% | 16.00% | 16.00% |
Customer C [Member] | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' |
Revenue Major Customer Percent | 11.00% | 11.00% | 12.00% | 13.00% |
United States [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Sales Revenue, Net | 76,330 | 81,736 | 235,203 | 242,304 |
Puerto Rico [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Sales Revenue, Net | 34,581 | 31,936 | 101,064 | 87,592 |
Belgium [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Sales Revenue, Net | 13,722 | 14,947 | 47,351 | 49,895 |
Rest Of World [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Sales Revenue, Net | 47,066 | 39,111 | 134,443 | 107,535 |
Greatbatch Medical [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Sales Revenue, Net | 169,225 | 167,052 | 514,036 | 485,168 |
Greatbatch Medical [Member] | Cardiac Neuromodulation [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Sales Revenue, Net | 85,618 | 86,302 | 252,403 | 240,003 |
Greatbatch Medical [Member] | Orthopaedic [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Sales Revenue, Net | 32,489 | 30,079 | 106,785 | 92,043 |
Greatbatch Medical [Member] | Portable Medical [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Sales Revenue, Net | 17,199 | 19,320 | 53,139 | 60,376 |
Greatbatch Medical [Member] | Vascular [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Sales Revenue, Net | 14,903 | 12,279 | 43,210 | 35,152 |
Greatbatch Medical [Member] | EME and Other [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Sales Revenue, Net | 19,016 | 19,072 | 58,499 | 57,594 |
QiG [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Controlling Interest, Number of Ownership Interests | 3 | ' | 3 | ' |
Controlling Interest, Liability of Expenses Incurred, Percentage | ' | ' | 100.00% | ' |
FDA submission date | ' | ' | 16-Dec-13 | ' |
CE submission date | ' | ' | 10-Jan-14 | ' |
CE Approval Date | ' | ' | 17-Jun-14 | ' |
Sales Revenue, Net | 2,474 | 678 | 4,025 | 2,158 |
Minimum [Member] | QiG [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Noncontrolling Interest, Ownership Percentage by Parent | 89.00% | ' | 89.00% | ' |
Maximum [Member] | QiG [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | ' | 100.00% | ' |
Between Operating Segments [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Sales Revenue, Net | ' | ' | $0 | ' |
Recovered_Sheet2
Business Segment, Geographic And Concentration Risk Information (Segment Income From Operations) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 03, 2014 | Sep. 27, 2013 | Oct. 03, 2014 | Sep. 27, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating income as reported | $16,183 | $17,002 | $58,246 | $48,476 |
Unallocated Other Expense | 2,717 | -1,458 | 847 | -10,855 |
Income before provision for income taxes | 18,900 | 15,544 | 59,093 | 37,621 |
Greatbatch Medical [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating income as reported | 31,121 | 28,236 | 98,688 | 84,596 |
QiG [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating income as reported | -6,796 | -6,946 | -18,882 | -21,679 |
Operating Segments [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating income as reported | 24,325 | 21,290 | 79,806 | 62,917 |
Segment Reconciling Items [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating income as reported | ($8,142) | ($4,288) | ($21,560) | ($14,441) |
Business_Segment_Geographic_An2
Business Segment, Geographic And Concentration Risk Information (Long-lived Assets by Category) (Details) (USD $) | Oct. 03, 2014 | Jan. 03, 2014 |
In Thousands, unless otherwise specified | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Property, plant and equipment, net | $142,336 | $145,773 |
United States [Member] | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Property, plant and equipment, net | 113,310 | 116,484 |
Rest Of World [Member] | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Property, plant and equipment, net | $29,026 | $29,289 |