Cover
Cover - shares | 3 Months Ended | |
Apr. 01, 2022 | Apr. 22, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 1, 2022 | |
Document Transition Report | false | |
Entity File Number | 1-16137 | |
Entity Registrant Name | INTEGER HOLDINGS CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 16-1531026 | |
Entity Address, Address Line One | 5830 Granite Parkway, | |
Entity Address, Address Line Two | Suite 1150 | |
Entity Address, City or Town | Plano, | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75024 | |
City Area Code | 214 | |
Local Phone Number | 618-5243 | |
Title of 12(b) Security | Common Stock, $0.001 par value per share | |
Trading Symbol | ITGR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 33,102,550 | |
Entity Central Index Key | 0001114483 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Apr. 01, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 25,668 | $ 17,885 |
Accounts receivable, net of provision for credit losses of $0.1 million and $0.1 million, respectively | 198,041 | 182,310 |
Inventories | 173,313 | 155,699 |
Refundable income taxes | 3,682 | 4,735 |
Contract assets | 66,343 | 64,743 |
Prepaid expenses and other current assets | 27,743 | 27,610 |
Total current assets | 494,790 | 452,982 |
Property, plant and equipment, net | 273,866 | 277,099 |
Goodwill | 923,594 | 924,704 |
Other intangible assets, net | 792,395 | 807,810 |
Deferred income taxes | 5,702 | 5,711 |
Operating lease assets | 75,521 | 70,053 |
Other long-term assets | 42,174 | 43,856 |
Total assets | 2,608,042 | 2,582,215 |
Current liabilities: | ||
Current portion of long-term debt | 15,250 | 15,250 |
Accounts payable | 90,018 | 76,859 |
Income taxes payable | 1,350 | 725 |
Operating lease liabilities | 10,700 | 9,862 |
Accrued expenses and other current liabilities | 55,764 | 56,933 |
Total current liabilities | 173,082 | 159,629 |
Long-term debt | 814,382 | 812,876 |
Deferred income taxes | 170,908 | 171,505 |
Operating lease liabilities | 64,262 | 59,767 |
Other long-term liabilities | 21,058 | 23,741 |
Total liabilities | 1,243,692 | 1,227,518 |
Commitments and contingencies (Note 10) | ||
Stockholders’ equity: | ||
Common stock, $0.001 par value; 100,000,000 shares authorized; 33,102,167 and 33,063,336 shares issued and outstanding, respectively | 33 | 33 |
Additional paid-in capital | 716,589 | 713,150 |
Retained earnings | 625,691 | 614,324 |
Accumulated other comprehensive income | 22,037 | 27,190 |
Total stockholders’ equity | 1,364,350 | 1,354,697 |
Total liabilities and stockholders’ equity | $ 2,608,042 | $ 2,582,215 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Apr. 01, 2022 | Dec. 31, 2021 |
Current assets: | ||
Allowance for doubtful accounts | $ 0.1 | $ 0.1 |
Stockholders’ equity: | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 33,102,167 | 33,063,336 |
Common stock, shares outstanding (in shares) | 33,102,167 | 33,063,336 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Income Statement [Abstract] | ||
Sales | $ 310,912 | $ 290,467 |
Cost of sales | 229,437 | 205,981 |
Gross profit | 81,475 | 84,486 |
Operating expenses: | ||
Selling, general and administrative | 39,560 | 35,502 |
Research, development and engineering | 16,083 | 13,461 |
Restructuring and other charges | 3,335 | 915 |
Total operating expenses | 58,978 | 49,878 |
Operating income | 22,497 | 34,608 |
Interest expense | 5,968 | 8,532 |
Loss on equity investments | 2,404 | 1,335 |
Other (income) loss, net | 177 | (237) |
Income before taxes | 13,948 | 24,978 |
Provision for income taxes | 2,581 | 3,458 |
Net income | $ 11,367 | $ 21,520 |
Earnings per share: | ||
Basic (in dollars per share) | $ 0.34 | $ 0.65 |
Diluted (in dollars per share) | $ 0.34 | $ 0.65 |
Weighted average shares outstanding: | ||
Basic (in shares) | 33,091 | 32,957 |
Diluted (in shares) | 33,302 | 33,188 |
Comprehensive Income | ||
Net income | $ 11,367 | $ 21,520 |
Other comprehensive loss: | ||
Foreign currency translation loss | (7,887) | (16,364) |
Change in fair value of cash flow hedges, net of tax | 2,734 | (706) |
Other comprehensive loss, net of tax | (5,153) | (17,070) |
Comprehensive income, net of tax | $ 6,214 | $ 4,450 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 11,367 | $ 21,520 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 22,542 | 20,294 |
Debt related charges included in interest expense | 481 | 1,372 |
Inventory step-up amortization | 798 | 0 |
Stock-based compensation | 4,995 | 4,704 |
Non-cash lease expense | 2,539 | 2,004 |
Non-cash loss on equity investments | 2,404 | 1,335 |
Other non-cash losses | 1,328 | 45 |
Deferred income taxes | (709) | (242) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (15,998) | (9,373) |
Inventories | (20,153) | (5,157) |
Prepaid expenses and other assets | (458) | (189) |
Contract assets | (1,754) | (4,677) |
Accounts payable | 14,997 | 11,434 |
Accrued expenses and other liabilities | (5,851) | (7,887) |
Income taxes | 1,633 | 1,246 |
Net cash provided by operating activities | 18,161 | 36,429 |
Cash flows from investing activities: | ||
Acquisition of property, plant and equipment | (10,863) | (7,660) |
Proceeds from sale of property, plant and equipment | 465 | 15 |
Net cash used in investing activities | (10,398) | (7,645) |
Cash flows from financing activities: | ||
Principal payments of term loans | (3,813) | (45,375) |
Proceeds from revolving credit facility | 15,000 | 0 |
Payments of revolving credit facility | (10,000) | 0 |
Proceeds from the exercise of stock options | 0 | 116 |
Payment of debt issuance costs | 0 | (72) |
Tax withholdings related to net share settlements of restricted stock unit awards | (1,556) | (2,601) |
Contingent consideration payments | (493) | (1,621) |
Principal payments on finance leases | (166) | (9) |
Net cash used in financing activities | (1,028) | (49,562) |
Effect of foreign currency exchange rates on cash and cash equivalents | 1,048 | (26) |
Net increase (decrease) in cash and cash equivalents | 7,783 | (20,804) |
Cash and cash equivalents, beginning of period | 17,885 | 49,206 |
Cash and cash equivalents, end of period | $ 25,668 | $ 28,402 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common stock and additional paid-in capital | Retained earnings | Accumulated other comprehensive income |
Balance, beginning of period at Dec. 31, 2020 | $ 1,271,055 | $ 700,847 | $ 517,516 | $ 52,692 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock awards exercised or vested | (2,485) | |||
Stock-based compensation | 4,704 | |||
Net income | 21,520 | 21,520 | ||
Other comprehensive loss | (17,070) | (17,070) | ||
Balance, ending balance at Apr. 02, 2021 | 1,277,724 | 703,066 | 539,036 | 35,622 |
Balance, beginning of period at Dec. 31, 2021 | 1,354,697 | 713,183 | 614,324 | 27,190 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock awards exercised or vested | (1,556) | |||
Stock-based compensation | 4,995 | |||
Net income | 11,367 | 11,367 | ||
Other comprehensive loss | (5,153) | (5,153) | ||
Balance, ending balance at Apr. 01, 2022 | $ 1,364,350 | $ 716,622 | $ 625,691 | $ 22,037 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Apr. 01, 2022 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION Integer Holdings Corporation (together with its consolidated subsidiaries, “Integer” or the “Company”) is a publicly-traded corporation listed on the New York Stock Exchange under the symbol “ITGR.” Integer is a medical device outsource manufacturer serving the cardiac, neuromodulation, vascular, orthopedics, advanced surgical and portable medical markets. The Company provides innovative, high-quality medical technologies that enhance the lives of patients worldwide. In addition, it develops batteries for high-end niche applications in the energy, military, and environmental markets. The accompanying condensed consolidated financial statements are presented in accordance with the rules and regulations of the United States ("U.S.") Securities and Exchange Commission ("SEC") and do not include all of the disclosures normally required by U.S. generally accepted accounting principles (“U.S. GAAP”) as contained in the Company’s Annual Report on Form 10-K. Accordingly, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2021 . 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 the Company for the periods presented. The results for interim periods are not necessarily indicative of results or trends that may be expected for the fiscal year as a whole. The condensed consolidated financial statements were prepared using U.S. GAAP, which require management to make estimates and assumptions that affect the reported amounts of assets, liabilities, certain components of equity, 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 first quarters of 2022 and 2021 ended on April 1 and April 2, respectively, and consisted of 91 days and 92 days, respectively. Reclassifications Certain prior period amounts have been reclassified to conform to current year presentation. Refer to Note 14, “Segment Information,” for a description of the changes made to the Company’s prior period product line sales classification to reflect the current year presentation. Refer to Note 5, “Goodwill and Other Intangibles, Net,” for a description of the changes made to the Company’s prior period definite-lived asset classification to reflect the current year presentation. Risks and Uncertainties Beginning in early March 2020, the global spread of the novel coronavirus (“COVID-19”) created significant uncertainty and worldwide economic disruption. Specific impacts to the Company’s business included and continue to include labor shortages, disruptions in the supply chain, delayed or reduced customer orders and sales, restrictions on associates’ ability to travel or work, and delays in shipments to and from certain countries. The Company is uncertain of the future impact of the ongoing COVID-19 pandemic or recovery of prior deterioration in economic conditions to its sales channels, supply chain, manufacturing, and distribution. Additionally, the current conflict between Russia and Ukraine and the related sanctions and other penalties imposed by countries across the globe against Russia are creating substantial uncertainty in the global economy. While the Company does not have operations in Russia or Ukraine and does not have significant direct exposure to customers and vendors in those countries, it is unable to predict the impact that these actions will have on the global economy or on the Company’s financial condition, results of operations, and cash flows as of the date of these financial statements. Recent Accounting Pronouncements The Company considers the applicability and impact of all Accounting Standard Updates (“ASU”) issued by the Financial Accounting Standards Board (“FASB”). The Company evaluated all recent accounting pronouncements issued, including those that are currently effective, and determined that the adoption of these pronouncements would not have a material effect on the financial position, results of operations or cash flows of the Company. There have been no new or material changes to the significant accounting policies discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, that are of significance, or potential significance, to the Company. |
Business Acquisitions
Business Acquisitions | 3 Months Ended |
Apr. 01, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
BUSINESS ACQUISITIONS | BUSINESS ACQUISITIONS 2021 Acquisition On December 1, 2021, the Company acquired 100% of the equity interests of Oscor Inc., Oscor Caribe, LLC and Oscor Europe GmbH (collectively “Oscor”), privately-held companies with operations in Florida, the Dominican Republic and Germany that design, develop, manufacture and market a comprehensive portfolio of highly specialized medical devices, venous access systems and diagnostic catheters and implantable devices for a cash purchase price of $220.4 million, of which $2.6 million is net cash acquired subject to payment in connection with working capital and other closing adjustments. Serving the Company’s current markets, Oscor broadens the Company’s product portfolio, expands its research and development capabilities, and adds low-cost manufacturing capacity. The Company used proceeds from its Senior Secured Credit Facilities to fund the acquisition. Oscor is included in the Company’s Medical segment. The goodwill is primarily associated with future customer relationships and an acquired assembled work force. The Company has provisionally estimated fair values for the assets purchased, liabilities assumed and purchase consideration as of the date of the acquisition. The determination of estimated fair value required management to make significant estimates and assumptions based on information that was available at the time the consolidated financial statements were prepared. The Company recorded the preliminary purchase price allocation in the fourth quarter of 2021. During the first quarter of 2022, the Company recorded measurement period adjustment resulting in an increase to goodwill of $2.9 million which consisted of a $1.0 million decrease in inventory and a $1.9 million increase in current liabilities. The preliminary purchase price allocation remains subject to working capital adjustments. As a result, the allocation of the provisional purchase price may change in the future. The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed (in thousands): Fair value of net assets acquired Current assets (excluding inventory) $ 12,148 Inventory 11,270 Property, plant and equipment 17,977 Goodwill 80,778 Intangible assets 105,300 Operating lease assets 15,142 Other noncurrent assets 695 Current liabilities (10,824) Operating lease liabilities (12,044) Fair value of net assets acquired $ 220,442 Actual and Pro Forma (unaudited) disclosures For segment reporting purposes, the results of operations and assets from the Oscor have been included in the Company’s Medical segment since the acquisition date. For the three months ended April 1, 2022, sales related to Oscor were $19.0 million . Earnings related to the operations of Oscor for the three months ended April 1, 2022 were not material. Pro forma results of operations for the three months ended April 2, 2021, assuming the acquisition of Oscor occurred as of the beginning of fiscal year 2020, are presented in the following table (in thousands). The pro forma results include the historical results of operations of the Company and Oscor, as well as adjustments for additional amortization of the assets acquired, additional interest expense related to the financing of the transaction and other transactional adjustments. The pro forma results do not include efficiencies, cost reductions or synergies expected to result from the acquisition. These pro forma results do not purport to be indicative of the results that would have been obtained, or to be a projection of results that may be obtained in the future. Sales $ 304,101 Net income 19,936 (2.) BUSINESS ACQUISITIONS (Continued) Acquisition costs During the three months ended April 1, 2022, direct costs of this acquisition of $0.4 million were expensed as incurred and included in Restructuring and other charges in the Condensed Consolidated Statements of Operations and Comprehensive Income. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Apr. 01, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION The following is supplemental information relating to the Condensed Consolidated Statements of Cash Flows (in thousands): Three Months Ended April 1, April 2, Noncash investing and financing activities: Property, plant and equipment purchases included in accounts payable $ 3,688 $ 2,981 Supplemental lease disclosures: Assets acquired under operating leases 7,914 7,414 |
Inventories
Inventories | 3 Months Ended |
Apr. 01, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories comprise the following (in thousands): April 1, December 31, Raw materials $ 75,749 $ 70,956 Work-in-process 84,586 74,152 Finished goods 12,978 10,591 Total $ 173,313 $ 155,699 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, Net | 3 Months Ended |
Apr. 01, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | GOODWILL AND OTHER INTANGIBLE ASSETS, NET Goodwill The changes in the carrying amount of goodwill by reportable segment for the three months ended April 1, 2022 were as follows (in thousands): Medical Non- Medical Total December 31, 2021 $ 907,704 $ 17,000 $ 924,704 Acquisitions and related adjustments (Note 2) 2,891 — 2,891 Foreign currency translation (4,001) — (4,001) April 1, 2022 $ 906,594 $ 17,000 $ 923,594 Intangible Assets The Company reclassified purchased tradenames with a net carrying value of $16.2 million from Purchased technology and patents as of December 31, 2021 to Amortizing tradenames and other to conform to the current period presentation. The Company made this reclassification to better align with the classification of amortization expense for similar assets. Intangible assets comprise the following (in thousands): Gross Accumulated Net April 1, 2022 Definite-lived: Purchased technology and patents $ 268,350 $ (167,423) $ 100,927 Customer lists 779,412 (194,174) 585,238 Amortizing tradenames and other 20,447 (4,505) 15,942 Total amortizing intangible assets $ 1,068,209 $ (366,102) $ 702,107 Indefinite-lived: Trademarks and tradenames $ 90,288 December 31, 2021 Definite-lived: Purchased technology and patents $ 269,359 $ (164,298) $ 105,061 Customer lists 783,618 (187,412) 596,206 Amortizing tradenames and other 20,462 (4,207) 16,255 Total amortizing intangible assets $ 1,073,439 $ (355,917) $ 717,522 Indefinite-lived: Trademarks and tradenames $ 90,288 Aggregate intangible asset amortization expense comprises the following (in thousands): Three Months Ended April 1, April 2, Cost of sales $ 3,645 $ 3,268 Selling, general and administrative expenses 7,959 7,182 Total intangible asset amortization expense $ 11,604 $ 10,450 Estimated future intangible asset amortization expense based on the carrying value as of April 1, 2022 is as follows (in thousands): Remainder of 2022 2023 2024 2025 2026 After 2026 Amortization Expense $ 34,782 48,257 47,349 45,724 43,397 482,598 |
Debt
Debt | 3 Months Ended |
Apr. 01, 2022 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT The Company has senior secured credit facilities (the “Senior Secured Credit Facilities”), which consist of a five-year $400 million revolving credit facility (the “Revolving Credit Facility”), a five-year “term A” loan (the “TLA Facility”) and a seven-year “term B” loan (the “TLB Facility” and, together with the TLA Facility, the “Term Loan Facilities”). The TLB Facility was issued at a 0.50% discount. Long-term debt related to the Senior Secured Credit Facilities as of April 1, 2022 and December 31, 2021, respectively, comprises the following (in thousands): April 1, December 31, Senior secured term loan A $ 464,125 $ 467,062 Senior secured term loan B 348,250 349,125 Senior secured revolving credit facility 24,300 19,300 Unamortized discount on term loan B and deferred debt issuance costs (7,043) (7,361) Total debt 829,632 828,126 Current portion of long-term debt (15,250) (15,250) Total long-term debt $ 814,382 $ 812,876 Revolving Credit Facility The Revolving Credit Facility matures on September 2, 2026 and includes a $40 million sublimit for swingline loans and standby letters of credit. As of April 1, 2022, the Company had available borrowing capacity on the Revolving Credit Facility of $370.2 million after giving effect to $24.3 million of outstanding borrowings and $5.5 million of outstanding standby letters of credit. Interest rates on the Revolving Credit Facility are at the Company’s option, either at: (i) the applicable LIBOR (or an applicable benchmark replacement) plus the applicable margin, which will range between 1.25% and 2.25%, based on the Company’s Total Net Leverage Ratio (as defined in the Senior Secured Credit Facilities agreement), or (ii) the Base Rate (as defined below) plus the applicable margin, which will range between 0.25% and 1.25%, based on the Company’s Total Net Leverage Ratio. The Base Rate is defined, for any day, as the per annum rate equal to the highest of (i) the prime rate (as defined in the Senior Secured Credit Facilities agreement), (ii) the Federal Funds Rate, as published by the Federal Reserve Bank of New York, plus 0.50%, and (iii) one-month LIBOR plus 1.00%. As of April 1, 2022, the interest rate on outstanding borrowings under the Revolving Credit Facility was 1.96%. The Company is required to pay a commitment fee on the unused portion of the Revolving Credit Facility, which will range between 0.15% and 0.25%, depending on the Company’s Total Net Leverage Ratio. As of April 1, 2022, the commitment fee on the unused portion of the Revolving Credit Facility was 0.15%. Term Loan Facilities The TLA Facility and TLB Facility mature on September 2, 2026 and September 2, 2028, respectively, and require quarterly installments. The quarterly principal installments under the TLA Facility increase over the term of the loan. The interest rate terms for the TLA Facility are the same as those outlined above for the Revolving Credit Facility. Interest rates on the TLB Facility are, at the Company’s option, either at: (i) the applicable LIBOR rate plus 2.50%, with LIBOR subject to a 0.50% floor, or (ii) the Base Rate plus 1.50%. As of April 1, 2022, the interest rates on the TLA Facility and TLB Facility were 1.96% and 3.00%, respectively. Covenants The Senior Secured Credit Facilities agreement contains customary terms and conditions, including representations and warranties and affirmative and negative covenants, as well as financial covenants for the benefit of the lenders under the Revolving Credit Facility and the TLA Facility, which require that (i) the Company maintain a Total Net Leverage Ratio not to exceed 5.50:1.00 (stepping down to 5.00:1.00 for the third fiscal quarter of 2023 through maturity and subject to increase in certain circumstances following qualified acquisitions, but shall not exceed 5.50:1.00) and (ii) the Company maintain an interest coverage ratio of at least 2.50:1.00. The TLB Facility does not contain any financial maintenance covenants. As of April 1, 2022, the Company was in compliance with these financial covenants. (6.) DEBT (Continued) Contractual maturities under the Senior Secured Credit Facilities for the remainder of 2022 and through maturity, excluding any discounts or premiums, as of April 1, 2022 are as follows (in thousands): Remainder of 2022 2023 2024 2025 2026 After 2026 Future minimum principal payments $ 11,438 18,187 29,938 38,750 406,737 331,625 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Apr. 01, 2022 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The Company maintains certain stock-based compensation plans that were approved by the Company’s stockholders and are administered by the Board of Directors (the “Board”) or the Compensation and Organization Committee of the Board. The stock-based compensation plans provide for the granting of stock options, restricted stock awards, restricted stock units (“RSUs”), stock appreciation rights and stock bonuses to employees, non-employee directors, consultants, and service providers. Stock-based Compensation Expense The components and classification of stock-based compensation expense were as follows (in thousands): Three Months Ended April 1, April 2, RSUs and PRSUs $ 4,995 $ 4,704 Total stock-based compensation expense $ 4,995 $ 4,704 Cost of sales $ 769 $ 1,114 Selling, general and administrative 3,545 3,355 Research, development and engineering 325 235 Restructuring and other charges 356 — Total stock-based compensation expense $ 4,995 $ 4,704 Stock Options The following table summarizes the Company’s stock option activity for the three month period ended April 1, 2022: Number of Weighted Weighted Aggregate Outstanding at December 31, 2021 247,640 $ 38.03 No activity — — Outstanding and exercisable at April 1, 2022 247,640 $ 38.03 3.9 $ 11.0 (7.) STOCK-BASED COMPENSATION (Continued) Restricted Stock Units During the three months ended April 1, 2022, the Company awarded grants of either time-based RSUs or a mix of time-based RSUs and performance-based RSUs (“PRSUs”) to certain members of its management. Most time-based RSUs granted during the three months ended April 1, 2022 vest over a period of three years from the grant date, subject to the recipient’s continuous service to the Company. The grant-date fair value of all time-based RSUs is equal to the closing market price of Integer common stock on the date of grant. The following table summarizes time-vested RSU activity for the three month period ended April 1, 2022: Time-Vested Weighted Nonvested at December 31, 2021 248,131 $ 81.14 Granted 133,995 79.76 Vested (60,814) 78.49 Forfeited (9,613) 78.98 Nonvested at April 1, 2022 311,699 $ 81.13 For the Company’s PRSUs, in addition to service conditions, the ultimate number of shares to be earned depends on the achievement of market-based performance conditions. The market-based performance conditions are based on the Company’s achievement of a relative total shareholder return (“TSR”) performance requirement, on a percentile basis, compared to a defined group of peer companies over three year performance periods, or contingent upon achieving specified stock price milestones over a five year performance period. The following table summarizes PRSU activity for the three month period ended April 1, 2022: Performance- Weighted Nonvested at December 31, 2021 198,869 $ 92.07 Granted 131,393 90.84 Forfeited (51,375) 99.62 Nonvested at April 1, 2022 278,887 $ 90.10 The Company uses a Monte Carlo simulation model to determine the grant-date fair value of awards with market-based performance conditions. The grant-date fair value of all other PRSUs is equal to the closing market price of Integer common stock on the date of grant. The weighted average fair value and assumptions used to value the PRSU awards granted with market-based performance conditions are as follows: Three Months Ended April 1, April 2, Weighted average fair value $ 97.58 $ 85.16 Risk-free interest rate 1.58 % 0.19 % Expected volatility 42 % 41 % Expected life (in years) 3.9 3.0 Expected dividend yield — % — % The valuation of the market-based PRSUs granted during 2022 and 2021 also reflects a weighted average illiquidity discount of 9.25% and 8.19%, respectively, related to the six-month period that recipients are restricted from selling, transferring, pledging or assigning the underlying shares, in the event of vesting. |
Restructuring and Other Charges
Restructuring and Other Charges | 3 Months Ended |
Apr. 01, 2022 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING AND OTHER CHARGES | RESTRUCTURING AND OTHER CHARGES The Company continuously evaluates the business and identifies opportunities to realign its resources to better serve its customers and markets, improve operational efficiency and capabilities, and lower its operating costs or improve profitability. To realize the benefits associated with these opportunities, the Company undertakes restructuring-type activities to transform its business. The Company incurs costs associated with these activities, which primarily include exit and disposal costs and other costs directly related to the restructuring initiative. The Company records exit and disposal costs (“restructuring charges”) as incurred in accordance with ASC 420, Exit or Disposal Cost Obligations , and are classified within Restructuring and other charges, while other costs directly related to the restructuring initiatives (“restructuring-related charges”) are classified within Cost of sales, Selling, general and administrative, and Research, development and engineering expenses in the Company’s Condensed Consolidated Statements of Operations and Comprehensive Income. In addition, from time to time, the Company incurs costs associated with acquiring and integrating businesses, and certain other general expenses, including asset impairments. The Company classifies costs associated with these items within Restructuring and other charges in the Company’s Condensed Consolidated Statements of Operations and Comprehensive Income. Restructuring and other charges comprise the following (in thousands): Three Months Ended April 1, April 2, Restructuring charges $ 1,103 $ 654 Acquisition and integration costs 1,936 84 Other general expenses 296 177 Total restructuring and other charges $ 3,335 $ 915 Restructuring programs The following table comprises restructuring and restructuring-related charges by income statement classification for the three month period ended April 1, 2022 (in thousands): Restructuring charges: Restructuring and other charges $ 1,103 Restructuring-related expenses (a) : Cost of sales 155 Selling, general and administrative 318 Research, development and engineering 177 Total restructuring and restructuring-related charges $ 1,753 __________ (a) Restructuring-related expenses primarily include retention bonuses and manufacturing transfer charges. Restructuring related expense for the three month period ended April 2, 2021 were not material. Operational excellence initiatives The Company’s operational excellence (“OE”) initiatives mainly consist of costs associated with executing on its sales force, manufacturing, business process and performance excellence operational strategic imperatives. These projects focus on changing the Company’s organizational structure to match product line growth strategies and customer needs, transitioning its manufacturing process into a competitive advantage and standardizing and optimizing its business processes. 2022 OE Initiatives - Costs related to the Company’s 2022 OE initiatives are primarily recorded within the Medical segment or unallocated operating expenses and mainly include termination benefits. The Company estimates that it will incur aggregate pre-tax charges in connection with the 2022 OE initiatives of between approximately $3 million to $5 million, the majority of which are expected to be cash expenditures. As of April 1, 2022, total restructuring and restructuring-related charges incurred since inception were $0.4 million. These actions are expected to be substantially complete by the end of 2023. (8.) RESTRUCTURING AND OTHER CHARGES (Continued) 2021 OE Initiatives - Costs related to the Company’s 2021 OE initiatives are primarily recorded within the Medical segment or unallocated operating expenses and mainly include termination benefits. The Company estimates that it will incur aggregate pre-tax charges in connection with the 2021 OE initiatives of between approximately $4 million to $5 million, the majority of which are expected to be cash expenditures. As of April 1, 2022, total restructuring and restructuring-related charges incurred since inception were $3.9 million. These actions are expected to be substantially complete by the end of 2022. Strategic reorganization and alignment The Company’s strategic reorganization and alignment (“SRA”) initiatives primarily include those that align resources with market conditions and the Company’s strategic direction in order to enhance the profitability of its portfolio of products. 2021 SRA Initiatives - During the fourth quarter of 2021, the Company initiated plans to exit certain markets served in our Medical segment to enhance profitability and reallocate manufacturing capacity needed to support our overall growth plans. The Company estimates that it will incur a range of pre-tax charges in connection with the 2021 SRA initiatives of approximately $5 million and $8 million, the majority of which are expected to be cash expenditures. Costs related to the Company’s 2021 SRA Initiatives are primarily recorded within the Medical segment and mainly include termination benefits. As of April 1, 2022, total restructuring and restructuring-related charges incurred since inception were $1.4 million. These actions are expected to be completed by the end of 2025. The following table summarizes the activity for restructuring reserves (in thousands): Operational Strategic reorganization and alignment Total December 31, 2021 $ 298 $ 134 $ 432 Charges incurred, net of reversals 647 456 1,103 Cash payments (657) (34) (691) April 1, 2022 $ 288 $ 556 $ 844 Acquisition and integration Acquisition and integration costs primarily consist of professional fees and other costs related to business acquisitions. During the three months ended April 1, 2022, acquisition and integration costs included $1.9 million of expenses primarily related to the acquisitions of Oscor and Aran. Other general expenses |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 01, 2022 | |
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 discrete items, changes in the mix and amount of 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. In addition, the Company continues to explore tax planning opportunities that may have a material impact on its effective tax rate. The Company’s effective tax rate for the first quarter of 2022 was 18.5% on $13.9 million of income before taxes compared to 13.8% on $25.0 million of income before taxes for the same period in 2021. The difference between the Company’s effective tax rates and the U.S. federal statutory income tax rate of 21% for the first quarter of 2022 and 2021 is due principally to the net impact of the Company’s earnings outside the U.S., which are generally taxed at rates that differ from the U.S federal rate, the Global Intangible Low-Taxed Income (“GILTI”) tax, the Foreign Derived Intangible Income (“FDII”) deduction, the availability of tax credits, and the recognition of certain discrete tax items. The Company recorded a discrete tax expense of $0.5 million for the first quarter of 2022, compared to discrete tax benefits of $0.6 million, for the first quarter of 2021. The discrete tax amounts for both periods are predominately related to excess tax benefits recognized upon vesting of RSUs during those quarters and/or tax shortfalls recorded for the forfeiture of certain PRSUs. Unrecognized tax benefits reflect the difference between positions taken or expected to be taken on income tax returns and the amounts reflected in the financial statements. As of April 1, 2022, the Company had unrecognized tax benefits of approximately $5.7 million, of which approximately $5.6 million would favorably impact the effective tax rate, net of federal benefit on state issues, if recognized. As of April 1, 2022, the Company believes the reasonably possible total amount of unrecognized tax benefits that could increase or decrease in the next 12 months as a result of various statute expirations, audit closures, and/or tax settlements would not be material to its consolidated financial statements. In response to the COVID-19 pandemic, many governments have enacted or are contemplating measures to provide aid and economic stimulus. These measures may include deferring the due dates of tax payments or other changes to their income and non-income-based tax laws. The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which was enacted on March 27, 2020 in the U.S., includes measures to assist companies, including temporary changes to income and non-income-based tax laws. The CARES Act provided for deferred payment of the employer portion of social security taxes through the end of 2020. As of April 1, 2022 and December 31, 2021, the Company had a remaining deferred amount of $4.8 million, which the Company expects to pay within the next twelve months. The deferred payroll taxes are included within Accrued expenses and other current liabilities on the Condensed Consolidated Balance Sheets. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 01, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Contingent Consideration Arrangements The Company records contingent consideration liabilities related to the earn-out provisions for certain acquisitions. See Note 13 “Financial Instruments and Fair Value Measurements” for additional information. Litigation The Company is subject to litigation arising from time to time in the ordinary course of its business. The Company does not expect that the ultimate resolution of any pending legal actions will have a material effect on its consolidated results of operations, financial position, or cash flows. However, litigation is subject to inherent uncertainties. As such, there can be no assurance that any pending legal action, which the Company currently believes to be immaterial, will 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 product warranty liability is presented within Accrued expenses and other current liabilities on the Condensed Consolidated Balance Sheets. The change in product warranty liability comprised the following (in thousands): December 31, 2021 $ 509 Additions to warranty reserve, net of reversals (20) Adjustments to pre-existing warranties (111) April 1, 2022 $ 378 |
Earnings Per Share (_EPS_)
Earnings Per Share (“EPS”) | 3 Months Ended |
Apr. 01, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE (“EPS”) | EARNINGS PER SHARE (“EPS”) The following table sets forth a reconciliation of the information used in computing basic and diluted EPS (in thousands, except per share amounts): Three Months Ended April 1, April 2, Numerator for basic and diluted EPS: Net income $ 11,367 $ 21,520 Denominator for basic and diluted EPS: Weighted average shares outstanding - Basic 33,091 32,957 Dilutive effect of share-based awards 211 231 Weighted average shares outstanding - Diluted 33,302 33,188 Basic EPS $ 0.34 $ 0.65 Diluted EPS $ 0.34 $ 0.65 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 (in thousands): Three Months Ended April 1, April 2, Time-vested RSUs 3 10 PRSUs 166 64 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Apr. 01, 2022 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Common Stock The following is a summary of the number of shares of common stock issued, treasury stock and common stock outstanding for the three month periods ended April 1, 2022 and April 2, 2021: Three Months Ended April 1, April 2, Shares outstanding at beginning of period 33,063,336 32,908,178 Stock options exercised — 4,229 Vesting of RSUs, net of shares withheld to cover taxes 38,831 62,295 Shares outstanding at end of period 33,102,167 32,974,702 Accumulated Other Comprehensive Income Accumulated other comprehensive income comprises the following (in thousands): Defined Cash Foreign Total Tax Net-of-Tax December 31, 2021 $ (890) $ (2,291) $ 29,720 $ 26,539 $ 651 $ 27,190 Unrealized gain on cash flow hedges — 2,856 — 2,856 (600) 2,256 Realized gain on foreign currency hedges — (162) — (162) 34 (128) Realized loss on interest rate swap hedge — 767 — 767 (161) 606 Foreign currency translation loss — — (7,887) (7,887) — (7,887) April 1, 2022 $ (890) $ 1,170 $ 21,833 $ 22,113 $ (76) $ 22,037 December 31, 2020 $ (1,095) $ (4,956) $ 57,546 $ 51,495 $ 1,197 $ 52,692 Unrealized loss on cash flow hedges — (1,269) — (1,269) 266 (1,003) Realized gain on foreign currency hedges — (659) — (659) 139 (520) Realized loss on interest rate swap hedges — 1,034 — 1,034 (217) 817 Foreign currency translation loss — — (16,364) (16,364) — (16,364) April 2, 2021 $ (1,095) $ (5,850) $ 41,182 $ 34,237 $ 1,385 $ 35,622 |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 3 Months Ended |
Apr. 01, 2022 | |
Fair Value Disclosures [Abstract] | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | FINANCIAL INSTRUMENTS AND 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 contingent consideration. The Company does not have any nonfinancial assets or liabilities that are measured at fair value on a recurring basis. The Company is exposed to global market risks, including the effect of changes in interest rates and foreign currency exchange rates, and uses derivatives to manage these exposures that occur in the normal course of business. The Company does not hold or issue derivatives for trading or speculative purposes. All derivatives are recorded at fair value on the Condensed Consolidated Balance Sheets. The following tables provide information regarding assets and liabilities recorded at fair value on a recurring basis (in thousands): Fair Value Quoted Significant Significant April 1, 2022 Assets: Foreign currency hedging contracts $ 1,887 $ — $ 1,887 $ — Liabilities: Foreign currency hedging contracts 330 — 330 — Liabilities: Interest rate swap 387 — 387 — Liabilities: Contingent consideration 1,976 — — 1,976 December 31, 2021 Assets: Foreign currency hedging contracts $ 687 $ — $ 687 $ — Liabilities: Interest rate swap 2,978 — 2,978 — Liabilities: Contingent consideration 2,415 — — 2,415 Derivatives Designated as Hedging Instruments Interest Rate Swaps The Company periodically enters into interest rate swap agreements in order to reduce the cash flow risk caused by interest rate changes on its outstanding floating rate borrowings. Under these swap agreements, the Company pays a fixed rate of interest and receives a floating rate equal to one-month LIBOR. The variable rate received from the swap agreements and the variable rate paid on the outstanding debt will have the same rate of interest, excluding the credit spread, and will reset and pay interest on the same date. The Company has designated these swap agreements as cash flow hedges based on concluding the hedged forecasted transaction is probable of occurring within the period the cash flow hedge is anticipated to affect earnings. Information regarding the Company’s outstanding interest rate swap designated as cash flow hedges as of April 1, 2022 is as follows (dollars in thousands): Notional Amount Start Date End Pay Fixed Rate Receive Current Floating Rate Fair Value Balance Sheet Location $ 150,000 Jun 2020 Jun 2023 2.1785 % 0.4470 % $ (387) Other long-term liabilities Information regarding the Company’s outstanding interest rate swap designated as cash flow hedges as of December 31, 2021 is as follows (dollars in thousands): Notional Amount Start Date End Pay Fixed Rate Receive Current Floating Rate Fair Value Balance Sheet Location $ 150,000 Jun 2020 Jun 2023 2.1785 % 0.1013 % $ (2,978) Other long-term liabilities (13.) FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Continued) Foreign Currency Contracts The Company periodically enters into foreign currency forward contracts to hedge its exposure to foreign currency exchange rate fluctuations in its international operations. The Company has designated these foreign currency forward contracts as cash flow hedges. Information regarding outstanding foreign currency forward contracts designated as cash flow hedges as of April 1, 2022 is as follows (dollars in thousands): Notional Amount End $/Foreign Currency Fair Value Balance Sheet Location $ 16,516 Dec 2022 0.0459 MXN Peso $ 1,141 Prepaid expenses and other current assets 10,231 Dec 2022 1.1368 Euro (220) Accrued expenses and other current liabilities 6,543 Dec 2022 0.0218 UYU Peso 746 Prepaid expenses and other current assets 10,121 Dec 2022 1.1245 Euro (110) Accrued expenses and other current liabilities Information regarding outstanding foreign currency forward contracts designated as cash flow hedges as of December 31, 2021 is as follows (dollars in thousands): Notional Amount End $/Foreign Currency Fair Value Balance Sheet Location $ 22,201 Dec 2022 0.0463 MXN Peso $ 408 Prepaid expenses and other current assets 17,017 Dec 2022 1.1344 Euro 130 Prepaid expenses and other current assets 9,020 Dec 2022 0.0220 UYU Peso 149 Prepaid expenses and other current assets The following tables present the effect of cash flow hedge derivative instruments on other comprehensive income (loss) (“OCI”), AOCI and the Company’s Condensed Consolidated Statements of Operations and Comprehensive Income for the three months ended April 1, 2022 and April 2, 2021 (in thousands): Three Months Ended April 1, 2022 April 2, 2021 Total Amount of Gain (Loss) on Cash Flow Hedge Activity Total Amount of Gain (Loss) on Cash Flow Hedge Activity Sales $ 310,912 $ (54) $ 290,467 $ 8 Cost of sales 229,437 192 205,981 624 Operating expenses 58,978 24 49,878 27 Interest expense 5,968 (767) 8,532 (1,034) Unrealized Gain (Loss) Recognized in OCI Realized Gain (Loss) Reclassified from AOCI Three Months Ended Location in Statements of Operations and Comprehensive Income Three Months Ended April 1, April 2, April 1, April 2, Interest rate swap $ 1,824 $ 266 Interest expense $ (767) $ (1,034) Foreign exchange contracts (514) (886) Sales (54) 8 Foreign exchange contracts 1,269 (559) Cost of sales 192 624 Foreign exchange contracts 277 (90) Operating expenses 24 27 The Company expects to reclassify net losses totaling $0.9 million related to its cash flow hedges from AOCI into earnings during the next twelve months. (13.) FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Continued) Derivatives Not Designated as Hedging Instruments The Company also has foreign currency exposure on balances, primarily intercompany, that are denominated in a foreign currency and are adjusted to current values using period-end exchange rates. To minimize foreign currency exposure, the Company enters into foreign currency contracts with a one month maturity. At April 1, 2022, the Company had one contract outstanding, with a notional amount of $8.0 million and a fair value of $0.1 million. At December 31, 2021, the Company had one contract outstanding, with a notional amount of $15.0 million and a fair value of $(0.1) million. The Company recorded a net gain on foreign currency contracts not designated as hedging instruments of $0.3 million for the three months ended April 1, 2022, which is included in Other (income) loss, net in the Company’s Condensed Consolidated Statements of Operations and Comprehensive Income and generally offset the gains or losses from the foreign currency adjustments on the intercompany balances that are also included in Other (income) loss, net. The Company did not have foreign currency contracts not designated as hedging instruments outstanding during the three months ended April 2, 2021. Contingent Consideration The following table presents the changes in the estimated fair values of the Company’s liabilities for contingent consideration measured using significant unobservable inputs (Level 3) for the three months ended April 1, 2022 and April 2, 2021 (in thousands): Three Months Ended April 1, April 2, Fair value measurement at beginning of period $ 2,415 $ 3,900 Fair value measurement adjustment 54 — Payments (493) (1,621) Foreign currency translation — 2 Fair value measurement at end of period $ 1,976 $ 2,281 On February 19, 2020, the Company acquired certain assets and liabilities of InoMec Ltd. (“InoMec”), a privately-held company based in Israel that specializes in the research, development and manufacturing of medical devices, including minimally invasive tools, delivery systems, tubing and catheters, surgery tools, drug-device combination, laser combined devices, and tooling and production. On October 7, 2019, the Company acquired certain assets and liabilities of US BioDesign, LLC (“USB”), a privately-held developer and manufacturer of complex braided biomedical structures for disposable and implantable medical devices. The contingent consideration at April 1, 2022 is the estimated fair value of the Company’s obligations, under the asset purchase agreements for InoMec and USB, to make additional payments if certain revenue goals are met. During 2022, the Company made a $0.5 million payment associated with the USB acquisition, resulting from achievement of revenue-based goals for the period from January 1, 2021 to December 31, 2021 for USB. During 2021, the Company made payments associated with the InoMec and USB acquisitions, resulting from achievement of revenue-based goals for the period from March 1, 2020 to February 28, 2021 for InoMec and January 1, 2020 to December 31, 2020 for USB. As of April 1, 2022 and December 31, 2021, the current portion of contingent consideration liabilities included in Accrued expenses and other current liabilities was $1.3 million and $0.9 million, respectively, and the non-current portion included in Other long-term liabilities on the Condensed Consolidated Balance Sheets was $0.7 million and $1.5 million, respectively. (13.) FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Continued) The following table provides quantitative information associated with the fair value measurement of the Company’s liabilities for contingent consideration: April 1, 2022 Contingency Type Maximum Payout (undiscounted) Fair Value Valuation Technique Unobservable Inputs Weighted Average or Range Revenue-based payments $ 5,375 $ 1,976 Monte Carlo Revenue volatility 26.7 % Discount rate 1.8 % Projected year(s) of payment 2022-2024 December 31, 2021 Contingency Type Maximum Payout (undiscounted) Fair Value Valuation Technique Unobservable Inputs Weighted Average or Range Revenue-based payments $ 6,750 $ 2,415 Monte Carlo Revenue volatility 29.0 % Discount rate 1.8 % Projected year(s) of payment 2022-2024 Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Fair value standards also apply to certain 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. Borrowings under the Company’s Revolving Credit Facility, TLA Facility and TLB Facility accrue interest at a floating rate tied to a standard short-term borrowing index, selected at the Company’s option, plus an applicable margin. The carrying amount of this floating rate debt approximates fair value based upon the respective interest rates adjusting with market rate adjustments. Equity Investments The Company holds long-term, strategic investments in companies to promote business and strategic objectives. These investments are included in Other long-term assets on the Condensed Consolidated Balance Sheets. Equity investments comprise the following (in thousands): April 1, December 31, Equity method investment $ 13,788 $ 16,192 Non-marketable equity securities 5,637 5,637 Total equity investments $ 19,425 $ 21,829 The components of Loss on equity investments for each period were as follows (in thousands): Three Months Ended April 1, April 2, Equity method investment loss $ 2,404 $ 1,335 The Company’s equity method investment is in a venture capital fund focused on investing in life sciences companies. As of April 1, 2022, the Company owned 6.8% of this fund. |
Segment Information
Segment Information | 3 Months Ended |
Apr. 01, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company organizes its business into two reportable segments: (1) Medical and (2) Non-Medical. This segment structure reflects the financial information and reports used by the Company’s management, specifically its Chief Operating Decision Maker, to make decisions regarding the Company’s business, including resource allocations and performance assessments. This segment structure reflects the Company’s current operating focus in compliance with ASC 280, Segment Reporting . For purposes of segment reporting, intercompany sales between segments are not material. The Company has communicated to certain customers that it is exiting certain markets it serves in the Advanced Surgical, Orthopedics & Portable Medical product line. In order to align with the planned exit of those markets and better align to its end markets and product line strategies, the Company recast its product line sales within the Medical segment to reflect the reclassification of certain products from the historical product lines to the product lines associated with those revenues that will be utilized for future revenue reporting. The Company believes the revised presentation will provide improved reporting and better transparency into the operational results of its business and markets. The Company has reclassified the prior year information in the table below to conform to the current year presentation. For the three months ended April 2, 2021, Cardio & Vascular sales of $8.0 million and Advanced Surgical, Orthopedics & Portable Medical sales of $5.3 million were reclassified to the Cardiac Rhythm Management & Neuromodulation product line. The following table presents sales by product line (in thousands): Three Months Ended April 1, April 2, Segment sales by product line: Medical Cardio & Vascular $ 159,037 $ 141,206 Cardiac Rhythm Management & Neuromodulation 123,324 121,703 Advanced Surgical, Orthopedics & Portable Medical 19,666 20,056 Total Medical 302,027 282,965 Non-Medical 8,885 7,502 Total sales $ 310,912 $ 290,467 The following table presents income for the Company’s reportable segments (in thousands): Three Months Ended April 1, April 2, Segment income: Medical $ 44,148 $ 55,525 Non-Medical 665 2 Total segment income 44,813 55,527 Unallocated operating expenses (22,316) (20,919) Operating income 22,497 34,608 Unallocated expenses, net (8,549) (9,630) Income before taxes $ 13,948 $ 24,978 |
Revenue From Contracts With Cus
Revenue From Contracts With Customers | 3 Months Ended |
Apr. 01, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE FROM CONTRACTS WITH CUSTOMERS Disaggregated Revenue In general, the Company’s business segmentation is aligned according to the nature and economic characteristics of its products and customer relationships and provides meaningful disaggregation of each business segment’s results of operations. For a summary by disaggregated product line sales for each segment, refer to Note 14, “Segment Information.” Revenue recognized from products and services transferred to customers over time represented 31% and 29%, respectively, for the three months ended April 1, 2022 and April 2, 2021. Substantially all of the revenue recognized from products and services transferred to customers over time during the periods presented was within the Medical segment. The following tables present revenues by significant customers, which are defined as any customer who individually represents 10% or more of a segment’s total revenues. Three Months Ended April 1, 2022 April 2, 2021 Customer Medical Non-Medical Medical Non-Medical Customer A 18% * 22% * Customer B 18% * 13% * Customer C 14% * 17% * Customer D * 33% * 26% All other customers 50% 67% 48% 74% __________ * Less than 10% of segment’s total revenues for the period. The following tables present revenues by significant ship to location, which is defined as any country where 10% or more of a segment’s total revenues are shipped. Three Months Ended April 1, 2022 April 2, 2021 Ship to Location Medical Non-Medical Medical Non-Medical United States 54% 63% 53% 69% United Kingdom * 10% * 10% Canada * * * 11% All other countries 46% 27% 47% 10% __________ * Less than 10% of segment’s total revenues for the period. Contract Balances The opening and closing balances of the Company’s contract assets and contract liabilities are as follows (in thousands): April 1, December 31, Contract assets $ 66,343 $ 64,743 Contract liabilities 7,016 3,776 During the three months ended April 1, 2022, the Company recognized $0.9 million of revenue that was included in the contract liability balance as of December 31, 2021. During the three months ended April 2, 2021, the Company recognized $0.9 million of revenue that was included in the contract liability balance as of December 31, 2020. |
Subsequent Event
Subsequent Event | 3 Months Ended |
Apr. 01, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Event | SUBSEQUENT EVENT On April 6, 2022, the Company acquired Connemara Biomedical Holdings Teoranta, including its operating subsidiaries Aran Biomedical and Proxy Biomedical (collectively “Aran”) in an all cash transaction for €120 million (approximately $131 million at the exchange rate as of April 6, 2022), subject to customary working capital and other adjustments, with up to €10 million (approximately $11 million at the exchange rate as of April 6, 2022) of contingent consideration payable based on Aran’s achievement of 2022 revenue growth milestones. The Company funded the purchase price with borrowings under its Revolving Credit Facility. A recognized leader in proprietary medical textiles, high precision biomaterial coverings and coatings as well as advanced metal and polymer braiding, Aran delivers development and manufacturing solutions for implantable medical devices. Consistent with the Company’s strategy, the combination with Aran further increases Integer’s ability to offer complete solutions for complex delivery and therapeutic devices in high growth cardiovascular markets such as structural heart, neurovascular, peripheral vascular, and endovascular as well as general surgery. For segment reporting purposes, the results of operations and assets from this acquisition will be included in the Company’s Medical segment. During the three months ended April 1, 2022, direct costs of this acquisition of $0.9 million were expensed as incurred and included in Restructuring and other charges in the Condensed Consolidated Statements of Operations and Comprehensive Income. In addition to assets acquired and liabilities assumed, the Company expects to allocate the purchase price to identifiable intangible assets such as developed technology and customer relationships. The Company expects to determine the preliminary purchase price allocation prior to the end of the second quarter of 2022. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Apr. 01, 2022 | |
Accounting Policies [Abstract] | |
Interim Basis of Accounting | 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 the Company for the periods presented. The results for interim periods are not necessarily indicative of results or trends that may be expected for the fiscal year as a whole. The condensed consolidated financial statements were prepared using U.S. GAAP, which require management to make estimates and assumptions that affect the reported amounts of assets, liabilities, certain components of equity, 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. |
Reclassifications | ReclassificationsCertain prior period amounts have been reclassified to conform to current year presentation. Refer to Note 14, “Segment Information,” for a description of the changes made to the Company’s prior period product line sales classification to reflect the current year presentation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company considers the applicability and impact of all Accounting Standard Updates (“ASU”) issued by the Financial Accounting Standards Board (“FASB”). The Company evaluated all recent accounting pronouncements issued, including those that are currently effective, and determined that the adoption of these pronouncements would not have a material effect on the financial position, results of operations or cash flows of the Company. There have been no new or material changes to the significant accounting policies discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, that are of significance, or potential significance, to the Company. |
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 discrete items, changes in the mix and amount of 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. In addition, the Company continues to explore tax planning opportunities that may have a material impact on its effective tax rate. |
Equity Investments | Equity Investments The Company holds long-term, strategic investments in companies to promote business and strategic objectives. These investments are included in Other long-term assets on the Condensed Consolidated Balance Sheets. |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 3 Months Ended |
Apr. 01, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Final Allocation of Purchase Consideration | The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed (in thousands): Fair value of net assets acquired Current assets (excluding inventory) $ 12,148 Inventory 11,270 Property, plant and equipment 17,977 Goodwill 80,778 Intangible assets 105,300 Operating lease assets 15,142 Other noncurrent assets 695 Current liabilities (10,824) Operating lease liabilities (12,044) Fair value of net assets acquired $ 220,442 |
Schedule of Business Acquisition, Pro Forma Information | These pro forma results do not purport to be indicative of the results that would have been obtained, or to be a projection of results that may be obtained in the future. Sales $ 304,101 Net income 19,936 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Apr. 01, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | The following is supplemental information relating to the Condensed Consolidated Statements of Cash Flows (in thousands): Three Months Ended April 1, April 2, Noncash investing and financing activities: Property, plant and equipment purchases included in accounts payable $ 3,688 $ 2,981 Supplemental lease disclosures: Assets acquired under operating leases 7,914 7,414 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Apr. 01, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories comprise the following (in thousands): April 1, December 31, Raw materials $ 75,749 $ 70,956 Work-in-process 84,586 74,152 Finished goods 12,978 10,591 Total $ 173,313 $ 155,699 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, Net (Tables) | 3 Months Ended |
Apr. 01, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill by reportable segment for the three months ended April 1, 2022 were as follows (in thousands): Medical Non- Medical Total December 31, 2021 $ 907,704 $ 17,000 $ 924,704 Acquisitions and related adjustments (Note 2) 2,891 — 2,891 Foreign currency translation (4,001) — (4,001) April 1, 2022 $ 906,594 $ 17,000 $ 923,594 |
Schedule of Finite-Lived Intangible Assets, Major Class | Intangible assets comprise the following (in thousands): Gross Accumulated Net April 1, 2022 Definite-lived: Purchased technology and patents $ 268,350 $ (167,423) $ 100,927 Customer lists 779,412 (194,174) 585,238 Amortizing tradenames and other 20,447 (4,505) 15,942 Total amortizing intangible assets $ 1,068,209 $ (366,102) $ 702,107 Indefinite-lived: Trademarks and tradenames $ 90,288 December 31, 2021 Definite-lived: Purchased technology and patents $ 269,359 $ (164,298) $ 105,061 Customer lists 783,618 (187,412) 596,206 Amortizing tradenames and other 20,462 (4,207) 16,255 Total amortizing intangible assets $ 1,073,439 $ (355,917) $ 717,522 Indefinite-lived: Trademarks and tradenames $ 90,288 |
Schedule of Indefinite-Lived Intangible Assets | Intangible assets comprise the following (in thousands): Gross Accumulated Net April 1, 2022 Definite-lived: Purchased technology and patents $ 268,350 $ (167,423) $ 100,927 Customer lists 779,412 (194,174) 585,238 Amortizing tradenames and other 20,447 (4,505) 15,942 Total amortizing intangible assets $ 1,068,209 $ (366,102) $ 702,107 Indefinite-lived: Trademarks and tradenames $ 90,288 December 31, 2021 Definite-lived: Purchased technology and patents $ 269,359 $ (164,298) $ 105,061 Customer lists 783,618 (187,412) 596,206 Amortizing tradenames and other 20,462 (4,207) 16,255 Total amortizing intangible assets $ 1,073,439 $ (355,917) $ 717,522 Indefinite-lived: Trademarks and tradenames $ 90,288 |
Schedule of Finite-Lived Intangible Assets, Amortization Expense | Aggregate intangible asset amortization expense comprises the following (in thousands): Three Months Ended April 1, April 2, Cost of sales $ 3,645 $ 3,268 Selling, general and administrative expenses 7,959 7,182 Total intangible asset amortization expense $ 11,604 $ 10,450 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated future intangible asset amortization expense based on the carrying value as of April 1, 2022 is as follows (in thousands): Remainder of 2022 2023 2024 2025 2026 After 2026 Amortization Expense $ 34,782 48,257 47,349 45,724 43,397 482,598 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Apr. 01, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt related to the Senior Secured Credit Facilities as of April 1, 2022 and December 31, 2021, respectively, comprises the following (in thousands): April 1, December 31, Senior secured term loan A $ 464,125 $ 467,062 Senior secured term loan B 348,250 349,125 Senior secured revolving credit facility 24,300 19,300 Unamortized discount on term loan B and deferred debt issuance costs (7,043) (7,361) Total debt 829,632 828,126 Current portion of long-term debt (15,250) (15,250) Total long-term debt $ 814,382 $ 812,876 |
Schedule of Maturities of Long-term Debt | Contractual maturities under the Senior Secured Credit Facilities for the remainder of 2022 and through maturity, excluding any discounts or premiums, as of April 1, 2022 are as follows (in thousands): Remainder of 2022 2023 2024 2025 2026 After 2026 Future minimum principal payments $ 11,438 18,187 29,938 38,750 406,737 331,625 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Apr. 01, 2022 | |
Share-based Payment Arrangement [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 April 1, April 2, RSUs and PRSUs $ 4,995 $ 4,704 Total stock-based compensation expense $ 4,995 $ 4,704 Cost of sales $ 769 $ 1,114 Selling, general and administrative 3,545 3,355 Research, development and engineering 325 235 Restructuring and other charges 356 — Total stock-based compensation expense $ 4,995 $ 4,704 |
Schedule of Share-based Compensation, Stock Options Activity | The following table summarizes the Company’s stock option activity for the three month period ended April 1, 2022: Number of Weighted Weighted Aggregate Outstanding at December 31, 2021 247,640 $ 38.03 No activity — — Outstanding and exercisable at April 1, 2022 247,640 $ 38.03 3.9 $ 11.0 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The following table summarizes time-vested RSU activity for the three month period ended April 1, 2022: Time-Vested Weighted Nonvested at December 31, 2021 248,131 $ 81.14 Granted 133,995 79.76 Vested (60,814) 78.49 Forfeited (9,613) 78.98 Nonvested at April 1, 2022 311,699 $ 81.13 The following table summarizes PRSU activity for the three month period ended April 1, 2022: Performance- Weighted Nonvested at December 31, 2021 198,869 $ 92.07 Granted 131,393 90.84 Forfeited (51,375) 99.62 Nonvested at April 1, 2022 278,887 $ 90.10 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The weighted average fair value and assumptions used to value the PRSU awards granted with market-based performance conditions are as follows: Three Months Ended April 1, April 2, Weighted average fair value $ 97.58 $ 85.16 Risk-free interest rate 1.58 % 0.19 % Expected volatility 42 % 41 % Expected life (in years) 3.9 3.0 Expected dividend yield — % — % |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 3 Months Ended |
Apr. 01, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Charges | Restructuring and other charges comprise the following (in thousands): Three Months Ended April 1, April 2, Restructuring charges $ 1,103 $ 654 Acquisition and integration costs 1,936 84 Other general expenses 296 177 Total restructuring and other charges $ 3,335 $ 915 The following table comprises restructuring and restructuring-related charges by income statement classification for the three month period ended April 1, 2022 (in thousands): Restructuring charges: Restructuring and other charges $ 1,103 Restructuring-related expenses (a) : Cost of sales 155 Selling, general and administrative 318 Research, development and engineering 177 Total restructuring and restructuring-related charges $ 1,753 __________ (a) Restructuring-related expenses primarily include retention bonuses and manufacturing transfer charges. Restructuring related expense for the three month period ended April 2, 2021 were not material. |
Schedule of Changes in Restructuring Reserves | The following table summarizes the activity for restructuring reserves (in thousands): Operational Strategic reorganization and alignment Total December 31, 2021 $ 298 $ 134 $ 432 Charges incurred, net of reversals 647 456 1,103 Cash payments (657) (34) (691) April 1, 2022 $ 288 $ 556 $ 844 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Apr. 01, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability | The change in product warranty liability comprised the following (in thousands): December 31, 2021 $ 509 Additions to warranty reserve, net of reversals (20) Adjustments to pre-existing warranties (111) April 1, 2022 $ 378 |
Earnings Per Share (_EPS_) (Tab
Earnings Per Share (“EPS”) (Tables) | 3 Months Ended |
Apr. 01, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | The following table sets forth a reconciliation of the information used in computing basic and diluted EPS (in thousands, except per share amounts): Three Months Ended April 1, April 2, Numerator for basic and diluted EPS: Net income $ 11,367 $ 21,520 Denominator for basic and diluted EPS: Weighted average shares outstanding - Basic 33,091 32,957 Dilutive effect of share-based awards 211 231 Weighted average shares outstanding - Diluted 33,302 33,188 Basic EPS $ 0.34 $ 0.65 Diluted EPS $ 0.34 $ 0.65 |
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 (in thousands): Three Months Ended April 1, April 2, Time-vested RSUs 3 10 PRSUs 166 64 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Apr. 01, 2022 | |
Equity [Abstract] | |
Schedule of Common Stock Outstanding Roll Forward | The following is a summary of the number of shares of common stock issued, treasury stock and common stock outstanding for the three month periods ended April 1, 2022 and April 2, 2021: Three Months Ended April 1, April 2, Shares outstanding at beginning of period 33,063,336 32,908,178 Stock options exercised — 4,229 Vesting of RSUs, net of shares withheld to cover taxes 38,831 62,295 Shares outstanding at end of period 33,102,167 32,974,702 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive income comprises the following (in thousands): Defined Cash Foreign Total Tax Net-of-Tax December 31, 2021 $ (890) $ (2,291) $ 29,720 $ 26,539 $ 651 $ 27,190 Unrealized gain on cash flow hedges — 2,856 — 2,856 (600) 2,256 Realized gain on foreign currency hedges — (162) — (162) 34 (128) Realized loss on interest rate swap hedge — 767 — 767 (161) 606 Foreign currency translation loss — — (7,887) (7,887) — (7,887) April 1, 2022 $ (890) $ 1,170 $ 21,833 $ 22,113 $ (76) $ 22,037 December 31, 2020 $ (1,095) $ (4,956) $ 57,546 $ 51,495 $ 1,197 $ 52,692 Unrealized loss on cash flow hedges — (1,269) — (1,269) 266 (1,003) Realized gain on foreign currency hedges — (659) — (659) 139 (520) Realized loss on interest rate swap hedges — 1,034 — 1,034 (217) 817 Foreign currency translation loss — — (16,364) (16,364) — (16,364) April 2, 2021 $ (1,095) $ (5,850) $ 41,182 $ 34,237 $ 1,385 $ 35,622 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 3 Months Ended |
Apr. 01, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables provide information regarding assets and liabilities recorded at fair value on a recurring basis (in thousands): Fair Value Quoted Significant Significant April 1, 2022 Assets: Foreign currency hedging contracts $ 1,887 $ — $ 1,887 $ — Liabilities: Foreign currency hedging contracts 330 — 330 — Liabilities: Interest rate swap 387 — 387 — Liabilities: Contingent consideration 1,976 — — 1,976 December 31, 2021 Assets: Foreign currency hedging contracts $ 687 $ — $ 687 $ — Liabilities: Interest rate swap 2,978 — 2,978 — Liabilities: Contingent consideration 2,415 — — 2,415 Information regarding the Company’s outstanding interest rate swap designated as cash flow hedges as of April 1, 2022 is as follows (dollars in thousands): Notional Amount Start Date End Pay Fixed Rate Receive Current Floating Rate Fair Value Balance Sheet Location $ 150,000 Jun 2020 Jun 2023 2.1785 % 0.4470 % $ (387) Other long-term liabilities Information regarding the Company’s outstanding interest rate swap designated as cash flow hedges as of December 31, 2021 is as follows (dollars in thousands): Notional Amount Start Date End Pay Fixed Rate Receive Current Floating Rate Fair Value Balance Sheet Location $ 150,000 Jun 2020 Jun 2023 2.1785 % 0.1013 % $ (2,978) Other long-term liabilities Information regarding outstanding foreign currency forward contracts designated as cash flow hedges as of April 1, 2022 is as follows (dollars in thousands): Notional Amount End $/Foreign Currency Fair Value Balance Sheet Location $ 16,516 Dec 2022 0.0459 MXN Peso $ 1,141 Prepaid expenses and other current assets 10,231 Dec 2022 1.1368 Euro (220) Accrued expenses and other current liabilities 6,543 Dec 2022 0.0218 UYU Peso 746 Prepaid expenses and other current assets 10,121 Dec 2022 1.1245 Euro (110) Accrued expenses and other current liabilities Information regarding outstanding foreign currency forward contracts designated as cash flow hedges as of December 31, 2021 is as follows (dollars in thousands): Notional Amount End $/Foreign Currency Fair Value Balance Sheet Location $ 22,201 Dec 2022 0.0463 MXN Peso $ 408 Prepaid expenses and other current assets 17,017 Dec 2022 1.1344 Euro 130 Prepaid expenses and other current assets 9,020 Dec 2022 0.0220 UYU Peso 149 Prepaid expenses and other current assets |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following tables present the effect of cash flow hedge derivative instruments on other comprehensive income (loss) (“OCI”), AOCI and the Company’s Condensed Consolidated Statements of Operations and Comprehensive Income for the three months ended April 1, 2022 and April 2, 2021 (in thousands): Three Months Ended April 1, 2022 April 2, 2021 Total Amount of Gain (Loss) on Cash Flow Hedge Activity Total Amount of Gain (Loss) on Cash Flow Hedge Activity Sales $ 310,912 $ (54) $ 290,467 $ 8 Cost of sales 229,437 192 205,981 624 Operating expenses 58,978 24 49,878 27 Interest expense 5,968 (767) 8,532 (1,034) Unrealized Gain (Loss) Recognized in OCI Realized Gain (Loss) Reclassified from AOCI Three Months Ended Location in Statements of Operations and Comprehensive Income Three Months Ended April 1, April 2, April 1, April 2, Interest rate swap $ 1,824 $ 266 Interest expense $ (767) $ (1,034) Foreign exchange contracts (514) (886) Sales (54) 8 Foreign exchange contracts 1,269 (559) Cost of sales 192 624 Foreign exchange contracts 277 (90) Operating expenses 24 27 |
Schedule of Estimated Fair Values for Contingent Consideration | The following table presents the changes in the estimated fair values of the Company’s liabilities for contingent consideration measured using significant unobservable inputs (Level 3) for the three months ended April 1, 2022 and April 2, 2021 (in thousands): Three Months Ended April 1, April 2, Fair value measurement at beginning of period $ 2,415 $ 3,900 Fair value measurement adjustment 54 — Payments (493) (1,621) Foreign currency translation — 2 Fair value measurement at end of period $ 1,976 $ 2,281 |
Schedule of Contingent Consideration Measurement Inputs | The following table provides quantitative information associated with the fair value measurement of the Company’s liabilities for contingent consideration: April 1, 2022 Contingency Type Maximum Payout (undiscounted) Fair Value Valuation Technique Unobservable Inputs Weighted Average or Range Revenue-based payments $ 5,375 $ 1,976 Monte Carlo Revenue volatility 26.7 % Discount rate 1.8 % Projected year(s) of payment 2022-2024 December 31, 2021 Contingency Type Maximum Payout (undiscounted) Fair Value Valuation Technique Unobservable Inputs Weighted Average or Range Revenue-based payments $ 6,750 $ 2,415 Monte Carlo Revenue volatility 29.0 % Discount rate 1.8 % Projected year(s) of payment 2022-2024 |
Schedule of Equity Method Investments | Equity investments comprise the following (in thousands): April 1, December 31, Equity method investment $ 13,788 $ 16,192 Non-marketable equity securities 5,637 5,637 Total equity investments $ 19,425 $ 21,829 The components of Loss on equity investments for each period were as follows (in thousands): Three Months Ended April 1, April 2, Equity method investment loss $ 2,404 $ 1,335 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Apr. 01, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Reconciliation of Revenue from Segments to Consolidated | The following table presents sales by product line (in thousands): Three Months Ended April 1, April 2, Segment sales by product line: Medical Cardio & Vascular $ 159,037 $ 141,206 Cardiac Rhythm Management & Neuromodulation 123,324 121,703 Advanced Surgical, Orthopedics & Portable Medical 19,666 20,056 Total Medical 302,027 282,965 Non-Medical 8,885 7,502 Total sales $ 310,912 $ 290,467 |
Schedule of Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following table presents income for the Company’s reportable segments (in thousands): Three Months Ended April 1, April 2, Segment income: Medical $ 44,148 $ 55,525 Non-Medical 665 2 Total segment income 44,813 55,527 Unallocated operating expenses (22,316) (20,919) Operating income 22,497 34,608 Unallocated expenses, net (8,549) (9,630) Income before taxes $ 13,948 $ 24,978 |
Revenue From Contracts With C_2
Revenue From Contracts With Customers (Tables) | 3 Months Ended |
Apr. 01, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue by Major Customers by Reporting Segments | The following tables present revenues by significant customers, which are defined as any customer who individually represents 10% or more of a segment’s total revenues. Three Months Ended April 1, 2022 April 2, 2021 Customer Medical Non-Medical Medical Non-Medical Customer A 18% * 22% * Customer B 18% * 13% * Customer C 14% * 17% * Customer D * 33% * 26% All other customers 50% 67% 48% 74% __________ * Less than 10% of segment’s total revenues for the period. |
Schedule of Revenue by Ship To Location | The following tables present revenues by significant ship to location, which is defined as any country where 10% or more of a segment’s total revenues are shipped. Three Months Ended April 1, 2022 April 2, 2021 Ship to Location Medical Non-Medical Medical Non-Medical United States 54% 63% 53% 69% United Kingdom * 10% * 10% Canada * * * 11% All other countries 46% 27% 47% 10% __________ * Less than 10% of segment’s total revenues for the period. |
Schedule of Contract with Customer, Asset and Liability | The opening and closing balances of the Company’s contract assets and contract liabilities are as follows (in thousands): April 1, December 31, Contract assets $ 66,343 $ 64,743 Contract liabilities 7,016 3,776 |
Business Acquisitions (Narrativ
Business Acquisitions (Narrative) (Details) - USD ($) $ in Thousands | Apr. 01, 2022 | Dec. 01, 2021 | Apr. 01, 2022 | Apr. 02, 2021 |
Business Acquisition [Line Items] | ||||
Goodwill accounting adjustment | $ 2,891 | |||
Total sales | 310,912 | $ 290,467 | ||
Oscor Inc | ||||
Business Acquisition [Line Items] | ||||
Percentage of voting interests acquired | 100.00% | |||
Consideration transferred | $ 220,400 | |||
Cash acquired from acquisition | $ 2,600 | |||
Goodwill accounting adjustment | 2,900 | |||
Decrease in inventory | 1,000 | |||
Adjustment in current liabilities | $ 1,900 | |||
Total sales | $ 19,000 | |||
Acquisition related costs | $ 400 |
Business Acquisitions (Allocati
Business Acquisitions (Allocation Of The Provisional Purchase Price ) (Details) - USD ($) $ in Thousands | Apr. 01, 2022 | Dec. 31, 2021 | Dec. 01, 2021 |
Business Acquisition [Line Items] | |||
Goodwill | $ 923,594 | $ 924,704 | |
Oscor Inc | |||
Business Acquisition [Line Items] | |||
Current assets (excluding inventory) | $ 12,148 | ||
Inventory | 11,270 | ||
Property, plant and equipment | 17,977 | ||
Goodwill | 80,778 | ||
Intangible assets | 105,300 | ||
Operating lease assets | 15,142 | ||
Other noncurrent assets | 695 | ||
Current liabilities | (10,824) | ||
Operating lease liabilities | (12,044) | ||
Fair value of net assets acquired | $ 220,442 |
Business Acquisitions (Pro Form
Business Acquisitions (Pro Forma Information) (Details) - Oscor Inc $ in Thousands | Apr. 01, 2022USD ($) |
Business Combination, Separately Recognized Transactions [Line Items] | |
Sales | $ 304,101 |
Net income | $ 19,936 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Noncash investing and financing activities: | ||
Property, plant and equipment purchases included in accounts payable | $ 3,688 | $ 2,981 |
Supplemental lease disclosures: | ||
Assets acquired under operating leases | $ 7,914 | $ 7,414 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Apr. 01, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 75,749 | $ 70,956 |
Work-in-process | 84,586 | 74,152 |
Finished goods | 12,978 | 10,591 |
Total | $ 173,313 | $ 155,699 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, Net (Schedule of Goodwill) (Details) $ in Thousands | 3 Months Ended |
Apr. 01, 2022USD ($) | |
Goodwill [Roll Forward] | |
Opening goodwill | $ 924,704 |
Acquisitions and related adjustments (Note 2) | 2,891 |
Foreign currency translation | (4,001) |
Closing goodwill | 923,594 |
Medical | |
Goodwill [Roll Forward] | |
Opening goodwill | 907,704 |
Acquisitions and related adjustments (Note 2) | 2,891 |
Foreign currency translation | (4,001) |
Closing goodwill | 906,594 |
Non-Medical | |
Goodwill [Roll Forward] | |
Opening goodwill | 17,000 |
Acquisitions and related adjustments (Note 2) | 0 |
Foreign currency translation | 0 |
Closing goodwill | $ 17,000 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets, Net (Intangible Assets Narrative) (Details) - USD ($) $ in Thousands | Apr. 01, 2022 | Dec. 31, 2021 |
Indefinite-lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset | $ 702,107 | $ 717,522 |
Purchased technology and patents | Revision of Prior Period, Adjustment | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset | (16,200) | |
Amortizing tradenames and other | Revision of Prior Period, Adjustment | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset | $ 16,200 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets, Net (Schedule of Definite-Lived and Indefinite-Lived Intangible Assets, Major Class) (Details) - USD ($) $ in Thousands | Apr. 01, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,068,209 | $ 1,073,439 |
Accumulated Amortization | (366,102) | (355,917) |
Net Carrying Amount | 702,107 | 717,522 |
Trademarks and tradenames | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived | 90,288 | 90,288 |
Purchased technology and patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 268,350 | 269,359 |
Accumulated Amortization | (167,423) | (164,298) |
Net Carrying Amount | 100,927 | 105,061 |
Customer lists | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 779,412 | 783,618 |
Accumulated Amortization | (194,174) | (187,412) |
Net Carrying Amount | 585,238 | 596,206 |
Amortizing tradenames and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 20,447 | 20,462 |
Accumulated Amortization | (4,505) | (4,207) |
Net Carrying Amount | $ 15,942 | $ 16,255 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets, Net (Schedule of Finite-Lived Intangible Assets, Amortization Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible asset amortization expense | $ 11,604 | $ 10,450 |
Cost of sales | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible asset amortization expense | 3,645 | 3,268 |
Selling, general and administrative expenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible asset amortization expense | $ 7,959 | $ 7,182 |
Goodwill and Other Intangible_7
Goodwill and Other Intangible Assets, Net (Schedule of Finite-Lived Intangible Assets, Future Amortization Expense) (Details) $ in Thousands | Apr. 01, 2022USD ($) |
Amortization Expense | |
Remainder of 2022 | $ 34,782 |
2023 | 48,257 |
2024 | 47,349 |
2025 | 45,724 |
2026 | 43,397 |
After 2026 | $ 482,598 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | Sep. 02, 2021USD ($) | Apr. 01, 2022USD ($) | Dec. 31, 2021 |
Secured Debt | Senior secured term loan A | |||
Debt Instrument [Line Items] | |||
Debt instrument term | 5 years | ||
Debt weighted average interest rate | 1.96% | ||
Secured Debt | Senior secured term loan B | |||
Debt Instrument [Line Items] | |||
Debt instrument term | 7 years | ||
Discount percentage | 0.50% | ||
Debt weighted average interest rate | 3.00% | ||
Secured Debt | Senior secured term loan B | London Interbank Offered Rate One- Month (LIBOR) | |||
Debt Instrument [Line Items] | |||
Variable rate basis spread | 2.50% | ||
Interest rate floor | 0.50% | ||
Secured Debt | Senior secured term loan B | Base rate | |||
Debt Instrument [Line Items] | |||
Variable rate basis spread | 1.50% | ||
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Debt weighted average interest rate | 1.96% | ||
Revolving Credit Facility | Line of Credit | |||
Debt Instrument [Line Items] | |||
Debt instrument term | 5 years | ||
Remaining borrowing capacity | $ 370,200,000 | ||
Outstanding amount | $ 24,300,000 | ||
Commitment fee on unused portion | 0.15% | ||
Revolving Credit Facility | Line of Credit | Minimum | |||
Debt Instrument [Line Items] | |||
Commitment fee on unused portion | 0.15% | ||
Revolving Credit Facility | Line of Credit | Maximum | |||
Debt Instrument [Line Items] | |||
Commitment fee on unused portion | 0.25% | ||
Revolving Credit Facility | Line of Credit | London Interbank Offered Rate One- Month (LIBOR) | Minimum | |||
Debt Instrument [Line Items] | |||
Variable rate basis spread | 1.25% | ||
Revolving Credit Facility | Line of Credit | London Interbank Offered Rate One- Month (LIBOR) | Maximum | |||
Debt Instrument [Line Items] | |||
Variable rate basis spread | 2.25% | ||
Revolving Credit Facility | Line of Credit | Senior secured term loan A | |||
Debt Instrument [Line Items] | |||
Credit facility maximum borrowing capacity | $ 400,000,000 | ||
Revolving Credit Facility | Line of Credit | Senior secured term loan A | London Interbank Offered Rate One- Month (LIBOR) | |||
Debt Instrument [Line Items] | |||
Variable rate basis spread | 1.00% | ||
Revolving Credit Facility | Line of Credit | Senior secured term loan A | Base rate | Minimum | |||
Debt Instrument [Line Items] | |||
Variable rate basis spread | 0.25% | ||
Revolving Credit Facility | Line of Credit | Senior secured term loan A | Base rate | Maximum | |||
Debt Instrument [Line Items] | |||
Variable rate basis spread | 1.25% | ||
Revolving Credit Facility | Line of Credit | Senior secured term loan A | Federal funds rate | |||
Debt Instrument [Line Items] | |||
Variable rate basis spread | 0.50% | ||
Revolving Credit Facility | Secured Debt | Senior secured term loan A | |||
Debt Instrument [Line Items] | |||
Interest expense ratio | 2.50 | ||
Revolving Credit Facility | Secured Debt | Senior secured term loan A | Through Maturity | |||
Debt Instrument [Line Items] | |||
Net leverage ratio incremental increase option | 5.50 | ||
Revolving Credit Facility | Secured Debt | Senior secured term loan A | Third Fiscal Quarter of 2023 | |||
Debt Instrument [Line Items] | |||
Net leverage ratio incremental increase option | 5 | ||
Swingline loans | Line of Credit | |||
Debt Instrument [Line Items] | |||
Credit facility maximum borrowing capacity | $ 40,000,000 | ||
Standby Letters of Credit | |||
Debt Instrument [Line Items] | |||
Letters of credit outstanding amount | $ 5,500,000 |
Debt (Schedule of Long-Term Deb
Debt (Schedule of Long-Term Debt) (Details) - USD ($) $ in Thousands | Apr. 01, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Unamortized discount on term loan B and deferred debt issuance costs | $ (7,043) | $ (7,361) |
Total debt | 829,632 | 828,126 |
Current portion of long-term debt | (15,250) | (15,250) |
Total long-term debt | 814,382 | 812,876 |
Secured Debt | Senior secured term loan A | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 464,125 | 467,062 |
Secured Debt | Senior secured term loan B | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 348,250 | 349,125 |
Revolving Credit Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 24,300 | $ 19,300 |
Debt (Long-term Debt Maturity S
Debt (Long-term Debt Maturity Schedule) (Details) $ in Thousands | Apr. 01, 2022USD ($) |
Debt Disclosure [Abstract] | |
Remainder of 2022 | $ 11,438 |
2023 | 18,187 |
2024 | 29,938 |
2025 | 38,750 |
2026 | 406,737 |
After 2026 | $ 331,625 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) | 3 Months Ended |
Apr. 01, 2022 | |
Time-vested RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Requisite service period | 3 years |
PRSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Requisite service period | 3 years |
Performance period | 5 years |
Stock-Based Compensation (Alloc
Stock-Based Compensation (Allocation of Recognized Period Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share-based payment arrangement, expense | $ 4,995 | $ 4,704 |
Cost of sales | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share-based payment arrangement, expense | 769 | 1,114 |
Selling, general and administrative | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share-based payment arrangement, expense | 3,545 | 3,355 |
Research, development and engineering | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share-based payment arrangement, expense | 325 | 235 |
Restructuring and other charges | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share-based payment arrangement, expense | 356 | 0 |
RSUs and PRSUs | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share-based payment arrangement, expense | $ 4,995 | $ 4,704 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Options Activity) (Details) $ / shares in Units, $ in Millions | 3 Months Ended |
Apr. 01, 2022USD ($)$ / sharesshares | |
Number of Stock Options | |
Options outstanding, beginning balance (in shares) | shares | 247,640 |
Options outstanding, ending balance (in shares) | shares | 247,640 |
Options exercisable at period end (in dollars per share) | shares | 247,640 |
Weighted Average Exercise Price | |
Options outstanding, beginning (in dollars per share) | $ / shares | $ 38.03 |
Options outstanding, ending (in dollars per share) | $ / shares | 38.03 |
Options exercisable at period end (in dollars per share) | $ / shares | $ 38.03 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Options outstanding, weighted average remaining contractual life | 3 years 10 months 24 days |
Options exercisable, weighted average remaining contractual life | 3 years 10 months 24 days |
Options outstanding, intrinsic value | $ | $ 11 |
Options exercisable, intrinsic value | $ | $ 11 |
Stock-Based Compensation (Restr
Stock-Based Compensation (Restricted Stock and Restricted Stock Units Activity) (Details) | 3 Months Ended |
Apr. 01, 2022$ / sharesshares | |
Time-vested RSUs | |
Time-Vested and Performance-Vested Activity | |
Nonvested, beginning (in shares) | shares | 248,131 |
Granted (in shares) | shares | 133,995 |
Vested (in shares) | shares | (60,814) |
Forfeited (in shares) | shares | (9,613) |
Nonvested, ending (in shares) | shares | 311,699 |
Weighted Average Grant Date Fair Value | |
Nonvested, beginning (in dollars per share) | $ / shares | $ 81.14 |
Granted (in dollars per share) | $ / shares | 79.76 |
Vested (in dollars per share) | $ / shares | 78.49 |
Forfeited (in dollars per share) | $ / shares | 78.98 |
Nonvested, ending (in dollars per share) | $ / shares | $ 81.13 |
PRSUs | |
Time-Vested and Performance-Vested Activity | |
Nonvested, beginning (in shares) | shares | 198,869 |
Granted (in shares) | shares | 131,393 |
Forfeited (in shares) | shares | (51,375) |
Nonvested, ending (in shares) | shares | 278,887 |
Weighted Average Grant Date Fair Value | |
Nonvested, beginning (in dollars per share) | $ / shares | $ 92.07 |
Granted (in dollars per share) | $ / shares | 90.84 |
Forfeited (in dollars per share) | $ / shares | 99.62 |
Nonvested, ending (in dollars per share) | $ / shares | $ 90.10 |
Stock-Based Compensation (Valua
Stock-Based Compensation (Valuation Assumptions) (Details) - PRSUs - $ / shares | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average fair value (in dollars per share) | $ 97.58 | $ 85.16 |
Risk-free interest rate | 1.58% | 0.19% |
Expected volatility | 42.00% | 41.00% |
Expected life (in years) | 3 years 10 months 24 days | 3 years |
Expected dividend yield | 0.00% | 0.00% |
Restriction period | 6 months | 6 months |
Weighted average illiquidity discount | 9.25% | 8.19% |
Restructuring and Other Charg_3
Restructuring and Other Charges (Schedule of Restructuring And Other Charges Components) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Restructuring and Related Activities [Abstract] | ||
Restructuring and other charges | $ 1,103 | $ 654 |
Acquisition and integration costs | 1,936 | 84 |
Other general expenses | 296 | 177 |
Restructuring and other charges | $ 3,335 | $ 915 |
Restructuring and Other Charg_4
Restructuring and Other Charges (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||
Acquisition and integration costs | $ 1,936 | $ 84 |
Oscor And Aran Acquisitions | ||
Restructuring Cost and Reserve [Line Items] | ||
Acquisition and integration costs | 1,900 | |
Strategic Reorganization And Alignment Initiatives 2021 | ||
Restructuring Cost and Reserve [Line Items] | ||
Costs incurred since inception | 1,400 | |
Strategic Reorganization And Alignment Initiatives 2021 | Minimum | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected costs | 5,000 | |
Strategic Reorganization And Alignment Initiatives 2021 | Maximum | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected costs | 8,000 | |
Employee Severance | Operational Excellence Initiatives, 2022 Initiatives | ||
Restructuring Cost and Reserve [Line Items] | ||
Costs incurred since inception | 400 | |
Employee Severance | Operational Excellence Initiatives, 2022 Initiatives | Minimum | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected costs | 3,000 | |
Employee Severance | Operational Excellence Initiatives, 2022 Initiatives | Maximum | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected costs | 5,000 | |
Employee Severance | Operational Excellence Initiatives, 2021 Initiatives | ||
Restructuring Cost and Reserve [Line Items] | ||
Costs incurred since inception | 3,900 | |
Employee Severance | Operational Excellence Initiatives, 2021 Initiatives | Minimum | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected costs | 4,000 | |
Employee Severance | Operational Excellence Initiatives, 2021 Initiatives | Maximum | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected costs | $ 5,000 |
Restructuring and Other Charg_5
Restructuring and Other Charges (Schedule of Restructuring Restructuring-Related Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Restructuring charges: | ||
Restructuring and other charges | $ 1,103 | $ 654 |
Total restructuring and restructuring-related charges | 1,753 | |
Cost of sales | ||
Restructuring charges: | ||
Total restructuring and restructuring-related charges | 155 | |
Selling, general and administrative expenses | ||
Restructuring charges: | ||
Total restructuring and restructuring-related charges | 318 | |
Research, development and engineering | ||
Restructuring charges: | ||
Total restructuring and restructuring-related charges | $ 177 |
Restructuring and Other Charg_6
Restructuring and Other Charges (Schedule of Restructuring Reserve By Type of Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $ 432 | |
Charges incurred, net of reversals | 1,103 | $ 654 |
Cash payments | (691) | |
Ending balance | 844 | |
Operational excellence initiatives | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 298 | |
Charges incurred, net of reversals | 647 | |
Cash payments | (657) | |
Ending balance | 288 | |
Strategic reorganization and alignment | ||
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 134 | |
Charges incurred, net of reversals | 456 | |
Cash payments | (34) | |
Ending balance | $ 556 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 01, 2022 | Apr. 02, 2021 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Effective income tax rate | 18.50% | 13.80% | |
Income before provision for income taxes | $ 13,948 | $ 24,978 | |
Discrete tax benefits | 500 | $ 600 | |
Unrecognized tax benefits | 5,700 | ||
Unrecognized tax benefits that would impact effective tax rate | 5,600 | ||
Accrued payroll taxes | $ 4,800 | $ 4,800 |
Commitments and Contingencies_2
Commitments and Contingencies (Schedule of Product Warranty Liability) (Details) $ in Thousands | 3 Months Ended |
Apr. 01, 2022USD ($) | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |
Balance at beginning of period | $ 509 |
Additions to warranty reserve, net of reversals | (20) |
Adjustments to pre-existing warranties | (111) |
Balance at end of period | $ 378 |
Earnings Per Share (_EPS_) (Det
Earnings Per Share (“EPS”) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Numerator for basic and diluted EPS: | ||
Net income | $ 11,367 | $ 21,520 |
Denominator for basic and diluted EPS: | ||
Weighted average shares outstanding - Basic (in shares) | 33,091 | 32,957 |
Dilutive effect of share-based awards (in shares) | 211 | 231 |
Weighted average shares outstanding - Diluted (in shares) | 33,302 | 33,188 |
Basic EPS (in dollars per share) | $ 0.34 | $ 0.65 |
Diluted EPS (in dollars per share) | $ 0.34 | $ 0.65 |
Time-vested RSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Securities excluded from calculation of earnings per share (in shares) | 3 | 10 |
PRSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Securities excluded from calculation of earnings per share (in shares) | 166 | 64 |
Stockholders' Equity (Shares Is
Stockholders' Equity (Shares Issued and Outstanding) (Details) - shares | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Class Of Stock [Roll Forward] | ||
Shares outstanding beginning balance (in shares) | 33,063,336 | |
Shares outstanding ending balance (in shares) | 33,102,167 | |
Common Stock | ||
Class Of Stock [Roll Forward] | ||
Shares outstanding beginning balance (in shares) | 33,063,336 | 32,908,178 |
Stock options exercised (in shares) | 0 | 4,229 |
Shares outstanding ending balance (in shares) | 33,102,167 | 32,974,702 |
Restricted Stock | Common Stock | ||
Class Of Stock [Roll Forward] | ||
Vesting of RSUs, net of shares withheld to cover taxes (in shares) | 38,831 | 62,295 |
Stockholders' Equity (Accumulat
Stockholders' Equity (Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning of period | $ 1,354,697 | $ 1,271,055 |
Reclassification from AOCI, net of tax | 2,256 | (1,003) |
Balance, ending balance | 1,364,350 | 1,277,724 |
Foreign exchange contracts | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Reclassification from AOCI, net of tax | (128) | (520) |
Interest rate swap | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Reclassification from AOCI, net of tax | 606 | 817 |
Defined Benefit Plan Liability | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning of period | (890) | (1,095) |
Balance, ending balance | (890) | (1,095) |
Cash Flow Hedges | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning of period | (2,291) | (4,956) |
Reclassification from AOCI, before tax | 2,856 | (1,269) |
Reclassification from AOCI, tax | (600) | 266 |
Balance, ending balance | 1,170 | (5,850) |
Cash Flow Hedges | Foreign exchange contracts | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Reclassification from AOCI, before tax | (162) | (659) |
Reclassification from AOCI, tax | 34 | 139 |
Cash Flow Hedges | Interest rate swap | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Reclassification from AOCI, before tax | 767 | 1,034 |
Reclassification from AOCI, tax | (161) | (217) |
Foreign Currency Translation Adjustment | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning of period | 29,720 | 57,546 |
Reclassification from AOCI, before tax | (7,887) | (16,364) |
Reclassification from AOCI, tax | 0 | 0 |
Reclassification from AOCI, net of tax | (7,887) | (16,364) |
Balance, ending balance | 21,833 | 41,182 |
Total Pre-Tax Amount | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning of period | 26,539 | 51,495 |
Balance, ending balance | 22,113 | 34,237 |
Tax | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning of period | 651 | 1,197 |
Balance, ending balance | (76) | 1,385 |
Net-of-Tax Amount | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning of period | 27,190 | 52,692 |
Balance, ending balance | $ 22,037 | $ 35,622 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements (Assets and Liabilities Recorded at Fair Value on a Recurring Basis) (Details) - Fair Value - USD ($) $ in Thousands | Apr. 01, 2022 | Dec. 31, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets: Foreign currency hedging contracts | $ 1,887 | $ 687 |
Liabilities: Foreign currency hedging contracts | 330 | |
Liabilities: Interest rate swap | 387 | 2,978 |
Liabilities: Contingent consideration | 1,976 | 2,415 |
Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets: Foreign currency hedging contracts | 0 | 0 |
Liabilities: Foreign currency hedging contracts | 0 | |
Liabilities: Interest rate swap | 0 | 0 |
Liabilities: Contingent consideration | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets: Foreign currency hedging contracts | 1,887 | 687 |
Liabilities: Foreign currency hedging contracts | 330 | |
Liabilities: Interest rate swap | 387 | 2,978 |
Liabilities: Contingent consideration | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets: Foreign currency hedging contracts | 0 | 0 |
Liabilities: Foreign currency hedging contracts | 0 | |
Liabilities: Interest rate swap | 0 | 0 |
Liabilities: Contingent consideration | $ 1,976 | $ 2,415 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurements (Schedule of Interest Rate Swaps) (Details) - Interest Rate Swap Maturing June 2023 - Other long-term liabilities - Designated as Hedging Instrument - USD ($) | Apr. 01, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 150,000,000 | $ 150,000,000 |
Pay Fixed Rate | 2.1785% | 2.1785% |
Receive Current Floating Rate | 0.447% | 0.1013% |
Fair Value | $ (387,000) | $ (2,978,000) |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measurements (Schedule of Foreign Currency Contracts) (Details) - Foreign Exchange Contract Maturing December 2021 - Designated as Hedging Instrument $ in Thousands | Apr. 01, 2022USD ($)$ / €$ / $$ / $ | Dec. 31, 2021USD ($)$ / $$ / $$ / € |
Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 16,516 | |
$/Foreign currency (in dollars per foreign currency) | $ / $ | 0.0459 | |
Fair Value | $ 1,141 | |
Accrued expenses and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 10,231 | |
$/Foreign currency (in dollars per foreign currency) | $ / € | 1.1368 | |
Fair Value | $ (220) | |
Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 6,543 | |
$/Foreign currency (in dollars per foreign currency) | $ / $ | 0.0218 | |
Fair Value | $ 746 | |
Accrued expenses and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 10,121 | |
$/Foreign currency (in dollars per foreign currency) | $ / € | 1.1245 | |
Fair Value | $ (110) | |
Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 22,201 | |
$/Foreign currency (in dollars per foreign currency) | $ / $ | 0.0463 | |
Fair Value | $ 408 | |
Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 17,017 | |
$/Foreign currency (in dollars per foreign currency) | $ / € | 1.1344 | |
Fair Value | $ 130 | |
Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 9,020 | |
$/Foreign currency (in dollars per foreign currency) | $ / $ | 0.0220 | |
Fair Value | $ 149 |
Financial Instruments and Fai_6
Financial Instruments and Fair Value Measurements (Impact of Cash Flow Hedges on Other Comprehensive Income, AOCI and the Condensed Consolidated Statements of Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Total sales | $ 310,912 | $ 290,467 |
Cost of sales | 229,437 | 205,981 |
Operating expenses | 58,978 | 49,878 |
Interest expense | 5,968 | 8,532 |
Sales | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of Gain (Loss) on Cash Flow Hedge Activity | (54) | 8 |
Sales | Foreign exchange contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Unrealized Gain (Loss) Recognized in OCI | (514) | (886) |
Cost of sales | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of Gain (Loss) on Cash Flow Hedge Activity | 192 | 624 |
Cost of sales | Foreign exchange contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Unrealized Gain (Loss) Recognized in OCI | 1,269 | (559) |
Operating expenses | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of Gain (Loss) on Cash Flow Hedge Activity | 24 | 27 |
Operating expenses | Foreign exchange contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Unrealized Gain (Loss) Recognized in OCI | 277 | (90) |
Interest expense | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of Gain (Loss) on Cash Flow Hedge Activity | (767) | (1,034) |
Interest expense | Interest rate swap | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Unrealized Gain (Loss) Recognized in OCI | $ 1,824 | $ 266 |
Financial Instruments and Fai_7
Financial Instruments and Fair Value Measurements (Narrative) (Details) $ in Thousands | 3 Months Ended | ||
Apr. 01, 2022USD ($)contract | Apr. 02, 2021USD ($) | Dec. 31, 2021USD ($)contract | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Derivative instruments net loss to be reclassified to net income during next twelve months | $ 900 | ||
Payments | 493 | $ 1,621 | |
USB Acquisition | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Payments | 500 | ||
Accrued expenses and other current liabilities | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Contingent consideration liability, current | 1,300 | $ 900 | |
Other long-term liabilities | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Contingent consideration liability, noncurrent | $ 700 | 1,500 | |
Chinese Venture Capital Fund | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equity method investment ownership | 6.80% | ||
Not Designated as Hedging Instrument | Foreign exchange contracts | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
National amount | $ 8,000 | 15,000 | |
Derivative asset, fair value | 100 | $ 100 | |
Unrealized gain on cash flow hedges, pretax | $ 300 | ||
Derivative, Number of Instruments Held | contract | 1 | 1 |
Financial Instruments and Fai_8
Financial Instruments and Fair Value Measurements (Estimated Fair Values for Contingent Consideration) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | $ 2,415 | $ 3,900 |
Fair value measurement adjustment | 54 | 0 |
Payments | (493) | (1,621) |
Foreign currency translation | 0 | 2 |
Balance at end of period | $ 1,976 | $ 2,281 |
Financial Instruments and Fai_9
Financial Instruments and Fair Value Measurements (Contingent Consideration Measurement Inputs) (Details) $ in Thousands | Apr. 01, 2022USD ($) | Dec. 31, 2021USD ($) |
InoMec Ltd | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Revenue-based payments, maximum payout (undiscounted) | $ 5,375 | $ 6,750 |
Fair Value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Revenue-based payments, fair value | $ 1,976 | $ 2,415 |
Fair Value | Revenue volatility | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.267 | 0.290 |
Fair Value | Discount rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.018 | 0.018 |
Financial Instruments and Fa_10
Financial Instruments and Fair Value Measurements (Equity Method Investments) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 01, 2022 | Apr. 02, 2021 | Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |||
Equity method investment | $ 13,788 | $ 16,192 | |
Non-marketable equity securities | 5,637 | 5,637 | |
Total equity investments | 19,425 | $ 21,829 | |
Equity method investment loss | $ 2,404 | $ 1,335 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) $ in Thousands | 3 Months Ended | |
Apr. 01, 2022USD ($)segment | Apr. 02, 2021USD ($) | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Number of reportable segments | segment | 2 | |
Total sales | $ 310,912 | $ 290,467 |
Operating Segments | Medical | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total sales | 302,027 | 282,965 |
Cardio & Vascular | Operating Segments | Medical | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total sales | 159,037 | 141,206 |
Cardio & Vascular | Operating Segments | Medical | Revision of Prior Period, Adjustment | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total sales | (8,000) | |
Advanced Surgical, Orthopedics & Portable Medical | Operating Segments | Medical | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total sales | $ 19,666 | 20,056 |
Advanced Surgical, Orthopedics & Portable Medical | Operating Segments | Medical | Revision of Prior Period, Adjustment | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total sales | $ (5,300) |
Segment Information (Reconcilia
Segment Information (Reconciliation of Revenue from Segments to Consolidated) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total sales | $ 310,912 | $ 290,467 |
Operating Segments | Medical | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total sales | 302,027 | 282,965 |
Operating Segments | Medical | Cardio & Vascular | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total sales | 159,037 | 141,206 |
Operating Segments | Medical | Cardiac Rhythm Management & Neuromodulation | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total sales | 123,324 | 121,703 |
Operating Segments | Medical | Advanced Surgical, Orthopedics & Portable Medical | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total sales | 19,666 | 20,056 |
Operating Segments | Non-Medical | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total sales | $ 8,885 | $ 7,502 |
Segment Information (Reconcil_2
Segment Information (Reconciliation of Operating Profit (Loss) from Segments to Consolidated) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Segment Reporting Information [Line Items] | ||
Operating income | $ 22,497 | $ 34,608 |
Unallocated expenses, net | (8,549) | (9,630) |
Income before taxes | 13,948 | 24,978 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Operating income | 44,813 | 55,527 |
Operating Segments | Medical | ||
Segment Reporting Information [Line Items] | ||
Operating income | 44,148 | 55,525 |
Operating Segments | Non-Medical | ||
Segment Reporting Information [Line Items] | ||
Operating income | 665 | 2 |
Segment Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
Operating income | $ (22,316) | $ (20,919) |
Revenue From Contracts With C_3
Revenue From Contracts With Customers (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Concentration Risk [Line Items] | ||
Revenue recognized that was included in contract liability balance at beginning of period | $ 0.9 | $ 0.9 |
Revenue Benchmark | Product Concentration Risk | Transferred over Time | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 31.00% | 29.00% |
Revenue From Contracts With C_4
Revenue From Contracts With Customers (Disaggregated Revenue) (Details) - Revenue from contract with customer benchmark - Customer Concentration Risk | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Medical | Customer A | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk percentage | 18.00% | 22.00% |
Medical | Customer B | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk percentage | 18.00% | 13.00% |
Medical | Customer C | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk percentage | 14.00% | 17.00% |
Medical | All other customers | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk percentage | 50.00% | 48.00% |
Non-Medical | Customer D | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk percentage | 33.00% | 26.00% |
Non-Medical | All other customers | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk percentage | 67.00% | 74.00% |
Revenue From Contracts With C_5
Revenue From Contracts With Customers (Schedule of Revenue by Ship To Location) (Details) - Geographic Concentration Risk - Revenue from contract with customer benchmark | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Medical Segment | United States | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk percentage | 54.00% | 53.00% |
Medical Segment | All other countries | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk percentage | 46.00% | 47.00% |
Non-Medical Segment | United States | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk percentage | 63.00% | 69.00% |
Non-Medical Segment | United Kingdom | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk percentage | 10.00% | 10.00% |
Non-Medical Segment | Canada | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk percentage | 11.00% | |
Non-Medical Segment | All other countries | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk percentage | 27.00% | 10.00% |
Revenue From Contracts With C_6
Revenue From Contracts With Customers Contract with Customer (Assets and Liability) (Details) - USD ($) $ in Thousands | Apr. 01, 2022 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 66,343 | $ 64,743 |
Contract liabilities | $ 7,016 | $ 3,776 |
Subsequent Event (Details)
Subsequent Event (Details) - Aran Acquisition € in Millions, $ in Millions | Apr. 06, 2022USD ($) | Apr. 06, 2022EUR (€) | Apr. 01, 2022USD ($) | Apr. 06, 2022EUR (€) |
Subsequent Event [Line Items] | ||||
Acquisition related costs | $ 0.9 | |||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Consideration transferred | $ 131 | € 120 | ||
Contingent consideration liability, current | $ 11 | € 10 |