Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 27, 2013 | Nov. 05, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'GREATBATCH, INC. | ' |
Entity Central Index Key | '0001114483 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 27-Sep-13 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Current Fiscal Year End Date | '--01-03 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 24,135,656 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Sep. 27, 2013 | Dec. 28, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $4,973 | $20,284 |
Accounts receivable, net of allowance for doubtful accounts | 130,966 | 120,923 |
Inventories | 122,823 | 106,612 |
Refundable income taxes | 566 | 0 |
Deferred income taxes | 8,077 | 7,678 |
Prepaid expenses and other current assets | 8,028 | 12,636 |
Total current assets | 275,433 | 268,133 |
Property, plant and equipment, net | 147,431 | 150,893 |
Amortizing intangible assets, net | 77,518 | 87,345 |
Indefinite-lived intangible assets | 20,402 | 20,828 |
Goodwill | 346,614 | 349,035 |
Deferred income taxes | 2,762 | 2,534 |
Other assets | 14,551 | 11,107 |
Total assets | 884,711 | 889,875 |
Current liabilities: | ' | ' |
Accounts payable | 36,478 | 45,274 |
Income taxes payable | 11,177 | 94 |
Deferred income taxes | 881 | 874 |
Accrued expenses | 43,207 | 45,515 |
Total current liabilities | 91,743 | 91,757 |
Long-term debt | 210,000 | 225,414 |
Deferred income taxes | 51,732 | 82,462 |
Other long-term liabilities | 6,779 | 9,382 |
Total liabilities | 360,254 | 409,015 |
Stockholders' equity: | ' | ' |
Preferred stock | 0 | 0 |
Common stock | 24 | 24 |
Additional paid-in capital | 336,491 | 320,618 |
Treasury stock, at cost | -593 | -452 |
Retained earnings | 174,209 | 147,723 |
Accumulated other comprehensive income (loss) | 14,326 | 12,947 |
Total stockholders' equity | 524,457 | 480,860 |
Total liabilities and stockholders' equity | $884,711 | $889,875 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Sep. 27, 2013 | Dec. 28, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Current assets: | ' | ' |
Allowance for doubtful accounts | $2,000,000 | $2,400,000 |
Stockholders' equity: | ' | ' |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 24,141,395 | 23,731,570 |
Common stock, shares outstanding | 24,119,390 | 23,711,838 |
Treasury stock, shares | 22,005 | 19,732 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Condensed Consolidated Statements of Operations and Comprehensive Income [Abstract] | ' | ' | ' | ' |
Sales | $167,730 | $161,340 | $487,326 | $486,991 |
Cost of sales | 111,853 | 110,386 | 325,398 | 337,216 |
Gross profit | 55,877 | 50,954 | 161,928 | 149,775 |
Operating expenses: | ' | ' | ' | ' |
Selling, general and administrative expenses | 21,569 | 20,274 | 63,909 | 60,053 |
Research, development and engineering costs, net | 13,806 | 13,240 | 38,983 | 41,325 |
Other operating (income) expense, net | 3,500 | 15,313 | 10,560 | 23,981 |
Total operating expenses | 38,875 | 48,827 | 113,452 | 125,359 |
Operating income (loss) | 17,002 | 2,127 | 48,476 | 24,416 |
Interest expense | 1,515 | 4,401 | 9,948 | 13,175 |
Other (income) expense | -57 | -102 | 907 | 424 |
Income before provision for income taxes | 15,544 | -2,172 | 37,621 | 10,817 |
Provision for income taxes | 4,473 | 5,389 | 11,135 | 10,060 |
Net income (loss) | 11,071 | -7,561 | 26,486 | 757 |
Earnings per share: | ' | ' | ' | ' |
Basic | $0.46 | ($0.32) | $1.11 | $0.03 |
Diluted | $0.44 | ($0.32) | $1.06 | $0.03 |
Weighted average shares outstanding: | ' | ' | ' | ' |
Basic | 24,047 | 23,646 | 23,904 | 23,559 |
Diluted | 25,188 | 23,646 | 25,017 | 23,924 |
Comprehensive income (loss): | ' | ' | ' | ' |
Net income (loss) | 11,071 | -7,561 | 26,486 | 757 |
Foreign currency translation gain (loss) | 3,579 | 1,005 | 1,147 | -522 |
Net change in cash flow hedges, net of tax | -403 | 399 | -365 | 924 |
Defined benefit plan liability adjustment, net of tax | 0 | 0 | 597 | 0 |
Total other comprehensive income (loss) | 3,176 | 1,404 | 1,379 | 402 |
Comprehensive income (loss) | $14,247 | ($6,157) | $27,865 | $1,159 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 |
Cash flows from operating activities: | ' | ' |
Net income (loss) | $26,486 | $757 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 26,658 | 34,070 |
Debt related amortization included in interest expense | 6,171 | 9,008 |
Stock-based compensation | 11,413 | 9,007 |
Other non-cash (gains) losses | 184 | 2,950 |
Deferred income taxes | -31,197 | 3,004 |
Changes in operating assets and liabilities, net of acquisitions: | ' | ' |
Accounts receivable | -9,901 | -22,795 |
Inventories | -15,999 | -4,765 |
Prepaid expenses and other current assets | 1,010 | 1,380 |
Accounts payable | -7,220 | 3,257 |
Accrued expenses | -1,732 | -314 |
Income taxes payable | 10,202 | 3,985 |
Net cash provided by (used in) operating activities | 16,075 | 39,544 |
Cash flows from investing activities: | ' | ' |
Acquisition of property, plant and equipment | -14,953 | -33,645 |
Proceeds from sale of orthopaedic product lines | 3,228 | 0 |
Net proceeds from sale (purchase) of cost and equity method investments, net | -1,928 | -1,653 |
Acquisitions, net of cash acquired | 0 | -17,224 |
Other investing activities | -194 | 95 |
Net cash provided by (used in) investing activities | -13,847 | -52,427 |
Cash flows from financing activities: | ' | ' |
Principal payments of long-term debt | -445,782 | -24,000 |
Proceeds from issuance of long-term debt | 425,000 | 10,000 |
Issuance of common stock | 6,213 | 1,056 |
Payment of debt issuance costs | -2,697 | 0 |
Other financing activities | -327 | -12 |
Net cash provided by (used in) financing activities | -17,593 | -12,956 |
Effect of foreign currency exchange rates on cash and cash equivalents | 54 | 174 |
Net increase (decrease) in cash and cash equivalents | -15,311 | -25,665 |
Cash and cash equivalents, beginning of period | 20,284 | 36,508 |
Cash and cash equivalents, end of period | $4,973 | $10,843 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) (USD $) | Total | Common Stock | Additional Paid-In Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
In Thousands | ||||||
Balance at Dec. 28, 2012 | $480,860 | $24 | $320,618 | ($452) | $147,723 | $12,947 |
Balance, shares at Dec. 28, 2012 | ' | 23,732 | ' | -20 | ' | ' |
Stock-based compensation | 7,742 | ' | 7,742 | ' | ' | ' |
Net shares issued under stock incentive plans, shares | ' | 318 | ' | -2 | ' | ' |
Net shares issued under stock incentive plans | 5,513 | ' | 5,654 | -141 | ' | ' |
Income tax liability from stock options, restricted stock and restricted stock units | 0 | ' | 0 | ' | ' | ' |
Shares contributed to 401(k), shares | ' | 91 | ' | ' | ' | ' |
Shares contrbuted to 401(k) | 2,477 | ' | 2,477 | ' | ' | ' |
Net income (loss) | 26,486 | ' | ' | ' | 26,486 | ' |
Total other comprehensive income (loss) | 1,379 | ' | ' | ' | ' | 1,379 |
Balance at Sep. 27, 2013 | $524,457 | $24 | $336,491 | ($593) | $174,209 | $14,326 |
Balance, shares at Sep. 27, 2013 | ' | 24,141 | ' | -22 | ' | ' |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 27, 2013 | |
Basis of Presentation [Abstract] | ' |
BASIS OF PRESENTATION | ' |
1. BASIS OF PRESENTATION | |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information (Accounting Standards Codification (“ASC”) 270, Interim Reporting) and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information necessary for a full presentation of financial position, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Operating results for interim periods are not necessarily indicative of results that may be expected for the fiscal year as a whole. In the opinion of management, the condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the results of Greatbatch, Inc. and its wholly-owned subsidiary, Greatbatch Ltd. (collectively “Greatbatch” or the “Company”), for the periods presented. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, sales, expenses, and related disclosures at the date of the financial statements and during the reporting period. Actual results could differ materially from these estimates. The December 28, 2012 condensed consolidated balance sheet data was derived from audited consolidated financial statements but does not include all disclosures required by GAAP. For further information, refer to the consolidated financial statements and notes included in the Company's Annual Report on Form 10-K for the year ended December 28, 2012. The Company utilizes a fifty-two, fifty-three week fiscal year ending on the Friday nearest December 31st. The third quarter and year-to-date periods of 2013 and 2012 each contained 13 weeks and 39 weeks, respectively, and ended on September 27, and September 28, respectively. | |
Acquisitions
Acquisitions | 9 Months Ended | ||||||||||||||
Sep. 27, 2013 | |||||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||||
ACQUISITIONS | ' | ||||||||||||||
2. ACQUISITIONS | |||||||||||||||
NeuroNexus Technologies, Inc. | |||||||||||||||
On February 16, 2012, the Company purchased all of the outstanding common stock of NeuroNexus Technologies, Inc. (“NeuroNexus”) headquartered in Ann Arbor, MI. NeuroNexus is an active implantable medical device design firm specializing in developing and commercializing neural interface technology, components and systems for neuroscience and clinical markets. NeuroNexus has an extensive intellectual property portfolio, core technologies and capabilities to support the development and manufacturing of neural interface devices across a wide range of applications including neuromodulation, sensing, optical stimulation and targeted drug delivery. The aggregate purchase price of NeuroNexus was $13.2 million. Total assets acquired from NeuroNexus were $14.6 million, of which $2.9 million were amortizing intangible assets and $8.9 million was allocated to goodwill. | |||||||||||||||
This transaction was accounted for under the acquisition method of accounting. Accordingly, the operating results of NeuroNexus were included in the Company's Implantable Medical segment from the date of acquisition and the purchase price was allocated to the assets acquired and liabilities assumed based on their fair values as of the close of the acquisition, with the amount exceeding the fair value of net assets acquired being recorded as goodwill. The purchase price of NeuroNexus consisted of cash payments of $11.7 million and potential future payments of up to an additional $2 million. These future payments are contingent upon the achievement of certain financial and development-based milestones and had an estimated fair value of $1.5 million as of the acquisition date. The valuation of the assets acquired and liabilities assumed from NeuroNexus was finalized during the first quarter of 2013 and did not result in a material adjustment to the original valuation of net assets acquired, including goodwill. | |||||||||||||||
Pro Forma Results (Unaudited) | |||||||||||||||
The following unaudited pro forma information presents the consolidated results of operations of the Company and NeuroNexus as if that acquisition occurred as of the beginning of fiscal year 2012 (in thousands, except per share amounts): | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Sales | $ | 167,730 | $ | 161,340 | $ | 487,326 | $ | 487,431 | |||||||
Net income (loss) | 11,071 | -7,561 | 26,486 | 583 | |||||||||||
Earnings (loss) per share: | |||||||||||||||
Basic | $ | 0.46 | $ | -0.32 | $ | 1.11 | $ | 0.02 | |||||||
Diluted | $ | 0.44 | $ | -0.32 | $ | 1.06 | $ | 0.02 | |||||||
The unaudited pro forma information presents the combined operating results of Greatbatch and NeuroNexus, with the results prior to the acquisition date adjusted to include the pro forma impact of the amortization of acquired intangible assets based on the purchase price allocations, the adjustment to interest expense reflecting the amount borrowed in connection with the acquisition at Greatbatch's interest rate, and the impact of income taxes on the pro forma adjustments utilizing the applicable statutory tax rate. The unaudited pro forma consolidated basic and diluted earnings (loss) per share calculations are based on the consolidated basic and diluted weighted average shares of Greatbatch. | |||||||||||||||
The unaudited pro forma results are presented for illustrative purposes only and do not reflect the realization of potential cost savings, and any related integration costs. Certain cost savings may result from the acquisition; however, there can be no assurance that these cost savings will be achieved. These pro forma results do not purport to be indicative of the results that would have been obtained, or to be a projection of results that may be obtained in the future. |
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 9 Months Ended | ||||||||
Sep. 27, 2013 | |||||||||
Supplemental Cash Flow Information [Abstract] | ' | ||||||||
SUPPLEMENTAL CASH FLOW INFORMATION | ' | ||||||||
3. SUPPLEMENTAL CASH FLOW INFORMATION | |||||||||
Nine Months Ended | |||||||||
September 27, | September 28, | ||||||||
(in thousands) | 2013 | 2012 | |||||||
Noncash investing and financing activities: | |||||||||
Common stock contributed to 401(k) Plan | $ | 2,477 | $ | 4,793 | |||||
Property, plant and equipment purchases included | |||||||||
in accounts payable | 711 | 4,611 | |||||||
Cash paid during the period for: | |||||||||
Interest | $ | 4,388 | $ | 3,250 | |||||
Income taxes | 31,755 | 2,923 | |||||||
Acquisition of noncash assets | $ | - | $ | 14,396 | |||||
Liabilities assumed | - | 1,244 |
Inventories
Inventories | 9 Months Ended | |||||||
Sep. 27, 2013 | ||||||||
Inventories [Abstract] | ' | |||||||
INVENTORIES | ' | |||||||
4. INVENTORIES | ||||||||
Inventories are comprised of the following (in thousands): | ||||||||
As of | ||||||||
September 27, | December 28, | |||||||
2013 | 2012 | |||||||
Raw materials | $ | 67,515 | $ | 58,204 | ||||
Work-in-process | 38,321 | 30,022 | ||||||
Finished goods | 16,987 | 18,386 | ||||||
Total | $ | 122,823 | $ | 106,612 |
Intangible_Assets
Intangible Assets | 9 Months Ended | |||||||||||||
Sep. 27, 2013 | ||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||
INTANGIBLE ASSETS | ' | |||||||||||||
5. INTANGIBLE ASSETS | ||||||||||||||
Amortizing intangible assets are comprised of the following (in thousands): | ||||||||||||||
At | 27-Sep-13 | Gross Carrying Amount | Accumulated Amortization | Foreign Currency Translation | Net Carrying Amount | |||||||||
Technology and patents | $ | 95,576 | $ | -68,427 | $ | 3,129 | $ | 30,278 | ||||||
Customer lists | 68,257 | -22,076 | 207 | 46,388 | ||||||||||
Other | 4,434 | -4,385 | 803 | 852 | ||||||||||
Total amortizing intangible assets | $ | 168,267 | $ | -94,888 | $ | 4,139 | $ | 77,518 | ||||||
At | 28-Dec-12 | |||||||||||||
Technology and patents | $ | 95,576 | $ | -61,659 | $ | 1,932 | $ | 35,849 | ||||||
Customer lists | 68,257 | -18,929 | 1,270 | 50,598 | ||||||||||
Other | 4,434 | -4,341 | 805 | 898 | ||||||||||
Total amortizing intangible assets | $ | 168,267 | $ | -84,929 | $ | 4,007 | $ | 87,345 | ||||||
Aggregate intangible asset amortization expense is comprised of the following (in thousands): | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 27, | September 28, | September 27, | September 28, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Cost of sales | $ | 1,668 | $ | 1,863 | $ | 5,207 | $ | 5,658 | ||||||
Selling, general and administrative expenses | 1,446 | 1,573 | 4,343 | 4,713 | ||||||||||
Research, development and engineering costs, net | 137 | 136 | 409 | 409 | ||||||||||
Total intangible asset amortization expense | $ | 3,251 | $ | 3,572 | $ | 9,959 | $ | 10,780 | ||||||
Estimated future intangible asset amortization expense based on the current carrying value is as follows (in thousands): | ||||||||||||||
Estimated | ||||||||||||||
Amortization | ||||||||||||||
Expense | ||||||||||||||
Remainder of | 2013 | $ | 3,207 | |||||||||||
2014 | 13,437 | |||||||||||||
2015 | 12,386 | |||||||||||||
2016 | 10,092 | |||||||||||||
2017 | 8,969 | |||||||||||||
Thereafter | 29,427 | |||||||||||||
Total estimated amortization expense | $ | 77,518 | ||||||||||||
Indefinite-lived intangible assets are comprised of the following (in thousands): | ||||||||||||||
Trademarks and Tradenames | IPR&D | Total | ||||||||||||
At | 28-Dec-12 | $ | 20,288 | $ | 540 | $ | 20,828 | |||||||
Indefinite-lived asset write-off | - | -426 | -426 | |||||||||||
At | 27-Sep-13 | $ | 20,288 | $ | 114 | $ | 20,402 | |||||||
The change in goodwill is as follows (in thousands): | ||||||||||||||
Implantable Medical | Electrochem | Total | ||||||||||||
At | 28-Dec-12 | $ | 307,201 | $ | 41,834 | $ | 349,035 | |||||||
Goodwill disposed (Note 9) | -2,771 | - | -2,771 | |||||||||||
Foreign currency translation | 350 | - | 350 | |||||||||||
At | 27-Sep-13 | $ | 304,780 | $ | 41,834 | $ | 346,614 |
Debt
Debt | 9 Months Ended | |||||||||||||||||||
Sep. 27, 2013 | ||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||
DEBT | ' | |||||||||||||||||||
6. DEBT | ||||||||||||||||||||
Long-term debt is comprised of the following (in thousands): | ||||||||||||||||||||
As of | ||||||||||||||||||||
September 27, | December 28, | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Revolving line of credit | $ | 10,000 | $ | 33,000 | ||||||||||||||||
Variable rate term loan | 200,000 | - | ||||||||||||||||||
2.25% convertible subordinated notes | - | 197,782 | ||||||||||||||||||
Unamortized discount | - | -5,368 | ||||||||||||||||||
Total long-term debt | $ | 210,000 | $ | 225,414 | ||||||||||||||||
Credit Facility –In September 2013, the Company amended and extended its credit facility (the “Credit Facility”). The new Credit Facility provides a $300 million revolving credit facility (the “Revolving Credit Facility”), a $200 million term loan (the “Term Loan”), a $15 million letter of credit subfacility, and a $15 million swingline subfacility. The Credit Facility can be increased by $200 million upon the Company's request and approval by the lenders. The Revolving Credit Facility has a maturity date of September 20, 2018, which may be extended to September 20, 2019 upon notice by the Company and subject to certain conditions. The principal of the Term Loan is payable in quarterly installments as specified in the Credit Facility until its maturity date of September 20, 2019 when the unpaid balance is due in full. | ||||||||||||||||||||
The Credit Facility is secured by the Company's non-realty assets including cash, accounts receivable and inventories. Interest rates on the revolving and term loans under the Credit Facility are, at the Company's option either at: (i) the prime rate plus the applicable margin, which ranges between 0.0% and 0.75%, based on the Company's total leverage ratio or (ii) the applicable LIBOR rate plus the applicable margin, which ranges between 1.375% and 2.75%, based on the Company's total leverage ratio. Loans under the swingline subfacility will bear interest at the prime rate plus the applicable margin, which ranges between 0.0% and 0.75%, based on the Company's total leverage ratio. The Company is also required to pay a commitment fee, which varies between 0.175% and 0.25% depending on the Company's total leverage ratio. | ||||||||||||||||||||
The Credit Facility contains limitations on the incurrence of indebtedness, liens and licensing of intellectual property, investments and certain payments. The Credit Facility permits the Company to engage in the following activities up to an aggregate amount of $300 million: 1) engage in permitted acquisitions in the aggregate not to exceed $250 million; 2) make other investments in the aggregate not to exceed $100 million; 3) make stock repurchases and declare dividends not to exceed $150 million in the aggregate; and 4) make investments in foreign subsidiaries not to exceed $20 million in the aggregate. At any time that the total leverage ratio of the Company for the two most recently ended fiscal quarters is less than 2.75 to 1.0, the Company may make an election to reset each of the amounts specified above. Additionally, these limitations can be waived upon the Company's request and approval of a majority of the lenders. As of September 27, 2013, the Company had available to it 100% of the above limits except for the aggregate limit and other investments limit which are now $299 million and $99 million, respectively. | ||||||||||||||||||||
The Credit Facility requires the Company to maintain a rolling four quarter ratio of adjusted EBITDA to interest expense of at least 3.0 to 1.0, and a total leverage ratio of not greater than 4.5 to 1.0 and a total leverage ratio not greater than 4.25 to 1.0 after January 2, 2016. The calculation of adjusted EBITDA and total leverage ratio excludes non-cash charges, extraordinary, unusual, or non-recurring expenses or losses, non-cash stock-based compensation, and non-recurring expenses or charges incurred in connection with permitted acquisitions. As of September 27, 2013, the Company was in compliance with all covenants under the Credit Facility. | ||||||||||||||||||||
The Credit Facility contains customary events of default. Upon the occurrence and during the continuance of an event of default, a majority of the lenders may declare the outstanding advances and all other obligations under the Credit Facility immediately due and payable. | ||||||||||||||||||||
As of September 27, 2013, the weighted average interest rate on borrowings under the Credit Facility, which does not take into account the impact of the Company's interest rate swap, was 1.81%. As of September 27, 2013, the Company had $290 million of borrowing capacity available under the Credit Facility. This borrowing capacity may vary from period to period based upon the debt and EBITDA levels of the Company, which impacts the covenant calculations described above. | ||||||||||||||||||||
Interest Rate Swap – From time to time, the Company enters into interest rate swap agreements in order to hedge against potential changes in cash flows on the outstanding borrowings on the Credit Facility. The variable rate received on the interest rate swaps and the variable rate paid on the debt have the same rate of interest, excluding the credit spread, and resets and pays interest on the same date. During 2012, the Company entered into a three-year $150 million interest rate swap, which amortizes $50 million per year. This swap was entered into in order to hedge against potential changes in cash flows on the outstanding Credit Facility borrowings, which are also indexed to the one-month LIBOR rate. This swap is being accounted for as a cash flow hedge. Information regarding the Company's outstanding interest rate swap as of September 27, 2013 is as follows (dollars in thousands): | ||||||||||||||||||||
Current | Fair | |||||||||||||||||||
Pay | Receive | Value | Balance | |||||||||||||||||
Type of | Notional | Start | End | Fixed | Floating | Sept. 27, | Sheet | |||||||||||||
Instrument | Hedge | Amount | Date | Date | Rate | Rate | 2013 | Location | ||||||||||||
Interest rate swap | Cash flow | $ | 150,000 | 13-Feb | 16-Feb | 0.57% | 0.18% | $ | -400 | Other Long-Term Liabilities | ||||||||||
The estimated fair value of the interest rate swap agreement represents the amount the Company expects to receive (pay) to terminate the contract. No portion of the change in fair value of the Company's interest rate swap during the nine months ended September 27, 2013 was considered ineffective. The amount recorded as Interest Expense during the three and nine months ended September 27, 2013 related to the Company's interest rate swap was $0.1 million and $0.3 million, respectively. | ||||||||||||||||||||
Convertible Subordinated Notes – In March 2007, the Company issued $197.8 million of convertible subordinated notes (“CSN”) at a 5% discount. CSN accrued interest at 2.25% per annum. The effective interest rate of CSN, which took into consideration the amortization of the discount and deferred fees related to the issuance of these notes, was 8.5%. On February 20, 2013, the Company redeemed all outstanding CSN. | ||||||||||||||||||||
The contractual interest and discount amortization for CSN were as follows (in thousands): | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 27, | September 28, | September 27, | September 28, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Contractual interest | $ | - | $ | 1,113 | $ | 634 | $ | 3,338 | ||||||||||||
Discount amortization | - | 2,781 | 5,368 | 8,205 | ||||||||||||||||
The expected future minimum principal payments under the Credit Facility as of September 27, 2013 is as follows (in thousands): | ||||||||||||||||||||
Remainder of 2013 | $ | 2,500 | ||||||||||||||||||
2014 | 10,000 | |||||||||||||||||||
2015 | 11,250 | |||||||||||||||||||
2016 | 16,250 | |||||||||||||||||||
2017 | 20,000 | |||||||||||||||||||
Thereafter | 150,000 | |||||||||||||||||||
Total | $ | 210,000 | ||||||||||||||||||
The Company has the ability and intent to use availability under the Revolving Credit Facility to fund principal payments on the Term Loan. | ||||||||||||||||||||
Deferred Financing Fees - The change in deferred financing fees is as follows (in thousands): | ||||||||||||||||||||
At | 28-Dec-12 | $ | 2,056 | |||||||||||||||||
Financing costs deferred | 2,697 | |||||||||||||||||||
Write-off during the period | -156 | |||||||||||||||||||
Amortization during the period | -648 | |||||||||||||||||||
At | 27-Sep-13 | $ | 3,949 |
Defined_Benefit_Plans
Defined Benefit Plans | 9 Months Ended | ||||||||||||
Sep. 27, 2013 | |||||||||||||
Defined Benefit Plans [Abstract] | ' | ||||||||||||
DEFINED BENEFIT PLANS | ' | ||||||||||||
7. DEFINED BENEFIT PLANS | |||||||||||||
The Company is required to provide its employees located in Switzerland, Mexico and France certain statutorily mandated defined benefits. Under these plans, benefits accrue to employees based upon years of service, position, age and compensation. The defined benefit plan provided to employees located in Switzerland is a funded contributory plan while the plans that provide benefits to employees located in Mexico and France are unfunded and noncontributory. The liability and corresponding expense related to these benefit plans is based on actuarial computations of current and future benefits for employees. | |||||||||||||
During 2012, the Company transferred manufacturing and development operations performed at its facilities in Switzerland into other existing facilities. As a result, the Company curtailed its defined benefit plan provided to employees at those Swiss facilities during the third quarter of 2012. In accordance with ASC 715, the gain recognized in connection with this curtailment is realized as the related employees are terminated. As nearly all of the Swiss pension liability is expected to be paid in 2013, the Company moved all Swiss pension plan assets into cash accounts during 2012. Swiss plan assets are expected to be sufficient to cover plan liabilities. During 2013, the Company settled approximately $7.7 million of its defined benefit obligation. | |||||||||||||
The change in net defined benefit plan liability is as follows (in thousands): | |||||||||||||
At | 28-Dec-12 | $ | 3,946 | ||||||||||
Service cost | 227 | ||||||||||||
Interest cost | 144 | ||||||||||||
Curtailment | -1,581 | ||||||||||||
Actuarial gain | -171 | ||||||||||||
Benefit payments | -125 | ||||||||||||
Foreign currency translation | 14 | ||||||||||||
At | 27-Sep-13 | $ | 2,454 | ||||||||||
Amounts recognized in Accumulated Other Comprehensive Income are as follows (in thousands): | |||||||||||||
Nine Months Ended | |||||||||||||
27-Sep-13 | |||||||||||||
Net gain occurring during the period | $ | -171 | |||||||||||
Amortization of losses | -581 | ||||||||||||
Prior service cost | 155 | ||||||||||||
Pre-tax adjustment | -597 | ||||||||||||
Taxes | - | ||||||||||||
Net gain | $ | -597 | |||||||||||
Net defined benefit cost (income) is comprised of the following (in thousands): | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Service cost | $ | 76 | $ | 272 | $ | 227 | $ | 835 | |||||
Interest cost | 41 | 98 | 144 | 305 | |||||||||
Curtailment gain (Other Operating Expenses, Net) | - | - | -1,150 | - | |||||||||
Amortization of net loss | - | 30 | - | 92 | |||||||||
Expected return on plan assets | - | -103 | - | -318 | |||||||||
Net defined benefit (income) cost | $ | 117 | $ | 297 | $ | -779 | $ | 914 |
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | |||||||||||||||
Sep. 27, 2013 | ||||||||||||||||
Stock-Based Compensation [Abstract] | ' | |||||||||||||||
STOCK-BASED COMPENSATION | ' | |||||||||||||||
8. STOCK-BASED COMPENSATION | ||||||||||||||||
The components and classification of stock-based compensation expense were as follows (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 27, | September 28, | September 27, | September 28, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Stock options | $ | 1,374 | $ | 671 | $ | 2,784 | $ | 2,038 | ||||||||
Restricted stock and units | 2,013 | 1,523 | 4,958 | 4,559 | ||||||||||||
401(k) stock contribution | 679 | 1,280 | 3,671 | 2,410 | ||||||||||||
Total stock-based compensation expense | $ | 4,066 | $ | 3,474 | $ | 11,413 | $ | 9,007 | ||||||||
Cost of sales | $ | 1,117 | $ | 1,119 | $ | 3,246 | $ | 2,486 | ||||||||
Selling, general and administrative | 1,598 | 2,006 | 6,052 | 5,732 | ||||||||||||
Research, development and engineering | 215 | 349 | 979 | 789 | ||||||||||||
2013 operating unit realignment modification expense - Other Operating Expenses, Net (Note 9) | 1,136 | - | 1,136 | - | ||||||||||||
Total stock-based compensation expense | $ | 4,066 | $ | 3,474 | $ | 11,413 | $ | 9,007 | ||||||||
The weighted average fair value and assumptions used to value options granted are as follows: | ||||||||||||||||
Nine Months Ended | ||||||||||||||||
September 27, | September 28, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Weighted average fair value | $ | 8.38 | $ | 8.2 | ||||||||||||
Risk-free interest rate | 0.73% | 0.83% | ||||||||||||||
Expected volatility | 39% | 40% | ||||||||||||||
Expected life (in years) | 5 | 5 | ||||||||||||||
Expected dividend yield | 0% | 0% | ||||||||||||||
The following table summarizes time-vested stock option activity: | ||||||||||||||||
Number of Time-Vested Stock Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (In Years) | Aggregate Intrinsic Value (In Millions) | |||||||||||||
Outstanding at | 28-Dec-12 | 1,775,847 | $ | 23.17 | ||||||||||||
Granted | 372,676 | 23.33 | ||||||||||||||
Exercised | -215,200 | 22.87 | ||||||||||||||
Forfeited or expired | -69,467 | 26.2 | ||||||||||||||
Outstanding at | 27-Sep-13 | 1,863,856 | $ | 23.13 | 6.2 | $ | 19.9 | |||||||||
Exercisable at | 27-Sep-13 | 1,287,345 | $ | 23.17 | 5 | $ | 13.7 | |||||||||
The following table summarizes performance-vested stock option activity: | ||||||||||||||||
Number of Performance-Vested Stock Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (In Years) | Aggregate Intrinsic Value (In Millions) | |||||||||||||
Outstanding at | 28-Dec-12 | 284,925 | $ | 23.26 | ||||||||||||
Granted | 0 | 0 | ||||||||||||||
Exercised | -55,571 | 23.21 | ||||||||||||||
Forfeited or expired | - | - | ||||||||||||||
Outstanding at | 27-Sep-13 | 229,354 | $ | 23.27 | 3.6 | $ | 2.4 | |||||||||
Exercisable at | 27-Sep-13 | 229,354 | $ | 23.27 | 3.6 | $ | 2.4 | |||||||||
The following table summarizes time-vested restricted stock and unit activity: | ||||||||||||||||
Time-Vested Activity | Weighted Average Fair Value | |||||||||||||||
Nonvested at | 28-Dec-12 | 80,269 | $ | 23.48 | ||||||||||||
Granted | 63,022 | 25.85 | ||||||||||||||
Vested | -30,592 | 22.46 | ||||||||||||||
Forfeited | -4,463 | 21.65 | ||||||||||||||
Nonvested at | 27-Sep-13 | 108,236 | $ | 25.23 | ||||||||||||
The following table summarizes performance-vested restricted stock and unit activity: | ||||||||||||||||
Performance-Vested Activity | Weighted Average Fair Value | |||||||||||||||
Nonvested at | 28-Dec-12 | 782,446 | $ | 16.02 | ||||||||||||
Granted | 318,169 | 15.86 | ||||||||||||||
Vested | -49,139 | 14.68 | ||||||||||||||
Forfeited | -240,312 | 14.94 | ||||||||||||||
Nonvested at | 27-Sep-13 | 811,164 | $ | 16.36 |
Other_Operating_Income_Expense
Other Operating (Income) Expense, Net | 9 Months Ended | |||||||||||||||||||
Sep. 27, 2013 | ||||||||||||||||||||
Other Operating (Income) Expense, Net [Abstract] | ' | |||||||||||||||||||
OTHER OPERATING (INCOME) EXPENSE NET | ' | |||||||||||||||||||
9. OTHER OPERATING EXPENSES, NET | ||||||||||||||||||||
Other Operating Expenses, Net is comprised of the following (in thousands): | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 27, | September 28, | September 27, | September 28, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
2013 operating unit realignment | $ | 2,214 | $ | - | $ | 3,066 | $ | - | ||||||||||||
Orthopaedic facility optimization | 1,420 | 12,452 | 6,723 | 14,774 | ||||||||||||||||
Medical device facility optimization | 52 | 388 | 282 | 1,282 | ||||||||||||||||
ERP system upgrade | -121 | 1,938 | 264 | 4,745 | ||||||||||||||||
Acquisition and integration (income) costs | -522 | 232 | -340 | 1,287 | ||||||||||||||||
Asset dispositions, severance and other | 457 | 303 | 565 | 1,893 | ||||||||||||||||
$ | 3,500 | $ | 15,313 | $ | 10,560 | $ | 23,981 | |||||||||||||
2013 operating unit realignment. In June 2013, the Company initiated a plan to realign its operating structure in order to optimize its continued focus on profitable growth. As part of this initiative, the sales and marketing and operations groups of its Implantable Medical and Electrochem segments were combined into one sales and marketing and one operations group serving the entire Company. Total restructuring charges expected to be incurred in connection with this realignment is between $6.2 million and $7.0 million, of which $3.1 million has been incurred to date. Expenses related to this initiative will be recorded within the applicable segment and corporate cost centers that the expenditures relate to and include the following: | ||||||||||||||||||||
Severance and retention: $5.0 million - $5.2 million; and | ||||||||||||||||||||
Other: $1.2 million – $1.8 million. | ||||||||||||||||||||
Other costs primarily consist of relocation, recruitment and travel expenditures. | ||||||||||||||||||||
The change in accrued liabilities related to the 2013 operating unit realignment is as follows (in thousands): | ||||||||||||||||||||
Severance and Retention | Other | Total | ||||||||||||||||||
At | 28-Dec-12 | $ | 0 | $ | 0 | $ | 0 | |||||||||||||
Restructuring charges | 2,153 | 913 | 3,066 | |||||||||||||||||
Non-cash settlement (modification expense - Note 8) | -1,136 | - | -1,136 | |||||||||||||||||
Cash payments | -391 | -463 | -854 | |||||||||||||||||
At | 27-Sep-13 | $ | 626 | $ | 450 | $ | 1,076 | |||||||||||||
Orthopaedic facility optimization. In 2010, the Company began updating its Indianapolis, IN facility to streamline operations, consolidate two buildings, increase capacity, further expand capabilities and reduce dependence on outside suppliers. This initiative was completed in 2011. | ||||||||||||||||||||
In 2011, the Company began construction on an orthopaedic manufacturing facility in Fort Wayne, IN and transferred the manufacturing operations being performed at its Columbia City, IN facility into this new facility. This initiative was completed in 2012. | ||||||||||||||||||||
During 2012, the Company transferred manufacturing and development operations performed at its facilities in Orvin and Corgemont, Switzerland into existing facilities in Fort Wayne, IN and Tijuana, Mexico. In connection with this consolidation, in 2012, the Company entered into an agreement to sell assets related to certain non-core Swiss orthopaedic product lines to an independent third party including inventory, machinery, equipment, customer lists and technology related to these product lines. As these product lines were considered a business, goodwill was allocated to the transaction (See Note 5). As these product lines did not have cash flows that were clearly distinguishable, both operationally and for financial reporting purposes, from the rest of the Company, they were not considered discontinued operations. This transaction closed in the first quarter of 2013 and no additional loss on sale was recognized. During 2013, the Company received payments totaling $3.2 million in connection with this transaction and the third party assumed $2.4 million of severance liabilities. | ||||||||||||||||||||
The total capital investment expected for these initiatives is between $25 million and $30 million, of which $22.0 million has been expended to date. Total expense expected to be incurred for these initiatives is between $40 million and $41 million, of which $39.9 million has been incurred to date. All expenses will be recorded within the Implantable Medical segment and are expected to include the following: | ||||||||||||||||||||
Severance and retention: approximately $11 million; | ||||||||||||||||||||
Accelerated depreciation and asset write-offs: approximately $15 million; and | ||||||||||||||||||||
Other: $14 million - $15 million. | ||||||||||||||||||||
Other costs include production inefficiencies, moving, revalidation, personnel, training and travel costs associated with these consolidation projects. | ||||||||||||||||||||
The change in accrued liabilities related to the orthopaedic facility optimization is as follows (in thousands): | ||||||||||||||||||||
Severance and Retention | Accelerated Depreciation/Asset Write-offs | Other | Total | |||||||||||||||||
At | 28-Dec-12 | $ | 9,567 | $ | - | $ | - | $ | 9,567 | |||||||||||
Restructuring charges | 544 | 192 | 5,987 | 6,723 | ||||||||||||||||
Write-offs | - | -192 | - | -192 | ||||||||||||||||
Liability assumed by third party | -2,398 | - | - | -2,398 | ||||||||||||||||
Cash payments | -6,978 | - | -5,622 | -12,600 | ||||||||||||||||
At | 27-Sep-13 | $ | 735 | $ | - | $ | 365 | $ | 1,100 | |||||||||||
Medical device facility optimization. Near the end of 2011, the Company initiated plans to upgrade and expand its manufacturing infrastructure in order to support its medical device strategy. This includes the transfer of certain product lines to create additional capacity for the manufacture of medical devices, expansion of two existing facilities, as well as the purchase of equipment to enable the production of medical devices. These initiatives are expected to be completed over the next year. Total capital investment under these initiatives is expected to be between $15 million and $20 million of which approximately $12.4 million has been expended to date. Total expenses expected to be incurred on these projects is between $2.0 million and $3.0 million, of which $1.8 million has been incurred to date. All expenses will be recorded within the Implantable Medical segment and are expected to include the following: | ||||||||||||||||||||
Production inefficiencies, moving and revalidation: $0.5 million - $1.0 million; | ||||||||||||||||||||
Personnel: $1.0 million - $1.5 million; and | ||||||||||||||||||||
Other: approximately $1.0 million. | ||||||||||||||||||||
The change in accrued liabilities related to the medical device facility optimization is as follows (in thousands): | ||||||||||||||||||||
Production Inefficiencies, Moving and Revalidation | Personnel | Other | Total | |||||||||||||||||
At | 28-Dec-12 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||||
Restructuring charges | 19 | 2 | 261 | 282 | ||||||||||||||||
Cash payments | -19 | -2 | -261 | -282 | ||||||||||||||||
At | 27-Sep-13 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||||
ERP system upgrade. In 2011, the Company initiated plans to upgrade its existing global ERP system. This initiative is expected to be completed over the next six months. Total capital investment under this initiative is expected to be between $4.5 million to $5 million of which approximately $4.3 million has been expended to date. Total expenses expected to be incurred on this initiative is between $6 million to $7 million, of which $5.3 million has been incurred to date. Expenses related to this initiative will be recorded within the applicable segment and corporate cost centers that the expenditures relate to and include the following: | ||||||||||||||||||||
Training and consulting costs: $4 million - $4.5 million; and | ||||||||||||||||||||
Accelerated depreciation and asset write-offs: $2 million – $2.5 million. | ||||||||||||||||||||
The change in accrued liabilities related to the ERP system upgrade is as follows (in thousands): | ||||||||||||||||||||
Training & Consulting Costs | Accelerated Depreciation/ Asset Write-offs | Total | ||||||||||||||||||
At | 28-Dec-12 | $ | 169 | $ | 0 | $ | 169 | |||||||||||||
Charges | 264 | - | 264 | |||||||||||||||||
Cash payments | -433 | 0 | -433 | |||||||||||||||||
At | 27-Sep-13 | $ | 0 | $ | 0 | $ | 0 | |||||||||||||
Acquisition and integration (income) costs. During 2013 and 2012, the Company incurred costs (income) related to the integration of Micro Power Electronics, Inc. and NeuroNexus, which were acquired in December 2011 and February 2012, respectively. These expenses were primarily for retention bonuses, travel costs in connection with integration efforts, training, severance, and the change in fair value of the contingent consideration recorded in connection with these acquisitions. | ||||||||||||||||||||
Asset dispositions, severance and other. During 2013 and 2012, the Company recorded (gains) losses in connection with various asset disposals and/or write-down's. Additionally, during the second quarter of 2012, the Company incurred $1.2 million of costs related to the relocation of its global headquarters to Frisco, Texas. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 27, 2013 | |
Income Tax Disclosure [Abstract] | ' |
INCOME TAXES | ' |
10. INCOME TAXES | |
The income tax provision for interim periods is determined using an estimate of the annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the estimate of the annual effective tax rate is updated, and if the estimated effective tax rate changes, a cumulative adjustment is made. There is a potential for volatility of the effective tax rate due to several factors, including changes in the mix of the pre-tax income and the jurisdictions to which it relates, changes in tax laws and foreign tax holidays, business reorganizations, settlements with taxing authorities and foreign currency fluctuations. | |
As of September 27, 2013, the balance of unrecognized tax benefits is approximately $1.4 million. It is reasonably possible that a reduction of up to $0.1 million of the balance of unrecognized tax benefits may occur within the next twelve months as a result of potential audit settlements. Approximately $1.2 million of the balance of unrecognized tax benefits would favorably impact the effective tax rate, net of federal benefit on state issues, if recognized. | |
As a result of the repayment of CSN during the first quarter of 2013, the Company reclassified $30.4 million of Long-Term Deferred Income Taxes to Income Taxes Payable of which approximately $8.0 million was paid in the third quarter of 2013 and $19.6 million was paid in the first nine months of 2013. |
Commitments_And_Contingencies
Commitments And Contingencies | 9 Months Ended | |||||||||||||||
Sep. 27, 2013 | ||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||||||
COMMITMENTS AND CONTINGENCIES | ' | |||||||||||||||
11. COMMITMENTS AND CONTINGENCIES | ||||||||||||||||
Litigation – The Company is a party to various legal actions arising in the normal course of business. While the Company does not believe that the ultimate resolution of any such pending actions will have a material effect on its results of operations, financial position, or cash flows, litigation is subject to inherent uncertainties. If an unfavorable ruling were to occur, there exists the possibility of a material impact in the period in which the ruling occurs. | ||||||||||||||||
During 2012, Electrochem and several other unaffiliated parties were named as defendants in a personal injury and wrongful death action filed in the 113th Judicial District Court of Harris County, Texas. The complaint seeks damages alleging marketing defects and failure to warn, negligence and gross negligence relating to a product Electrochem manufactured and sold to a customer, one of the other named defendants, which, in turn, incorporated the Electrochem product into its own product which it sold to its customer, another named defendant. The cost of defense in this matter is the responsibility of Electrochem's customer. Electrochem also has product liability insurance coverage. Electrochem believes that it has meritorious defenses and it intends to vigorously defend the matter. Given the early stages of this action, the amount of loss or range of possible loss cannot be reasonably estimated at this time. | ||||||||||||||||
Product Warranties – The Company generally warrants that its products will meet customer specifications and will be free from defects in materials and workmanship. The change in aggregate product warranty liability is as follows (in thousands): | ||||||||||||||||
At | 28-Dec-12 | $ | 2,626 | |||||||||||||
Additions to warranty reserve | 1,372 | |||||||||||||||
Warranty claims paid | -123 | |||||||||||||||
At | 27-Sep-13 | $ | 3,875 | |||||||||||||
Contractual Obligations – Contractual obligations are defined as agreements that are enforceable and legally binding on the Company and that specify all significant terms, including: fixed or minimum obligations; fixed or minimum price provisions; and the approximate timing of the transaction. The Company's contractual obligations are normally fulfilled within short time horizons. The Company also enters into blanket orders with vendors that have preferred pricing and terms, however these orders are normally cancelable without penalty. As of September 27, 2013, the total contractual obligations of the Company are approximately $24.1 million and will primarily be funded by existing cash and cash equivalents, cash flow from operations, or the Credit Facility. The Company also enters into contracts for outsourced services; however, the obligations under these contracts were not significant and the contracts generally contain clauses allowing for cancellation without significant penalty. | ||||||||||||||||
Operating Leases – The Company is a party to various operating lease agreements for buildings, equipment and software. Estimated future operating lease expense is as follows (in thousands): | ||||||||||||||||
Remainder of | 2013 | $ | 1,400 | |||||||||||||
2014 | 5,123 | |||||||||||||||
2015 | 4,522 | |||||||||||||||
2016 | 3,826 | |||||||||||||||
2017 | 1,424 | |||||||||||||||
Thereafter | 1,933 | |||||||||||||||
Total estimated operating lease expense | $ | 18,228 | ||||||||||||||
Foreign Currency Contracts - The Company enters into forward contracts to purchase Mexican pesos in order to hedge the risk of peso-denominated payments associated with the operations at its Tijuana, Mexico facility. The impact to the Company's results of operations from these forward contracts was as follows (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 27, | September 28, | September 27, | September 28, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Increase (reduction) in cost of sales | $ | -346 | $ | 11 | $ | -908 | $ | -8 | ||||||||
Ineffective portion of change in fair value | 0 | 0 | 0 | 0 | ||||||||||||
Instrument | Type of Hedge | Aggregate Notional Amount | Start Date | End Date | $/Peso | Fair Value | Balance Sheet Location | |||||||||
FX Contract | Cash flow | $ | 1,500 | 13-Jan | 13-Dec | 0.0727 | $ | 59 | Current Assets | |||||||
FX Contract | Cash flow | 1,500 | 13-Jan | 13-Dec | 0.0693 | 138 | Current Assets | |||||||||
FX Contract | Cash flow | 7,700 | 14-Jan | 14-Dec | 0.0767 | -239 | Current Assets/ Other Long-Term Liabilities | |||||||||
Self-Insured Medical Plan – The Company self-funds the medical insurance coverage provided to its U.S. based employees. The risk to the Company is being limited through the use of stop loss insurance, which has specific stop loss coverage per associate for claims in the year exceeding $225 thousand per associate with no annual maximum aggregate stop loss coverage. As of September 27, 2013, the Company has $1.9 million accrued related to the self-insurance of its medical plan, which is recorded in Accrued Expenses in the Condensed Consolidated Balance Sheet, and is primarily based upon claim history. |
Earnings_Per_Share_Eps
Earnings Per Share (Eps) | 9 Months Ended | |||||||||||||
Sep. 27, 2013 | ||||||||||||||
EARNINGS PER SHARE (EPS) [Abstract] | ' | |||||||||||||
EARNINGS PER SHARE (EPS) | ' | |||||||||||||
12. EARNINGS (LOSS) PER SHARE (“EPS”) | ||||||||||||||
The following table illustrates the calculation of Basic and Diluted EPS (in thousands, except per share amounts): | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 27, | September 28, | September 27, | September 28, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Numerator for basic and diluted EPS: | ||||||||||||||
Net income (loss) | $ | 11,071 | $ | -7,561 | $ | 26,486 | $ | 757 | ||||||
Denominator for basic EPS: | ||||||||||||||
Weighted average shares outstanding | 24,047 | 23,646 | 23,904 | 23,559 | ||||||||||
Effect of dilutive securities: | ||||||||||||||
Stock options, restricted stock and restricted stock units | 1,141 | - | 1,113 | 365 | ||||||||||
Denominator for diluted EPS | 25,188 | 23,646 | 25,017 | 23,924 | ||||||||||
Basic EPS | $ | 0.46 | $ | -0.32 | $ | 1.11 | $ | 0.03 | ||||||
Diluted EPS | $ | 0.44 | $ | -0.32 | $ | 1.06 | $ | 0.03 | ||||||
The diluted weighted average share calculations do not include the following securities, which are not dilutive to the EPS calculations or the performance criteria have not been met: | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 27, | September 28, | September 27, | September 28, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Time-vested stock options, restricted | ||||||||||||||
stock and restricted stock units | 43,000 | 2,223,000 | 59,000 | 1,237,000 | ||||||||||
Performance-vested stock options | ||||||||||||||
and restricted stock units | 27,000 | 781,000 | 26,000 | 692,000 | ||||||||||
For the 2013 and 2012 periods, no shares related to CSN were included in the diluted EPS calculations as the average share price of the Company's common stock for those periods did not exceed CSN's conversion price per share. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 9 Months Ended | ||||||||||||||||||
Sep. 27, 2013 | |||||||||||||||||||
Accumulated Other Comprehensive Income Notes [Abstract] | ' | ||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME | ' | ||||||||||||||||||
13. ACCUMULATED OTHER COMPREHENSIVE INCOME | |||||||||||||||||||
Accumulated Other Comprehensive Income for the quarter and year to date periods are as follows (in thousands): | |||||||||||||||||||
Three Month Period | Defined Benefit Plan Liability | Cash Flow Hedges | Foreign Currency Translation Adjustment | Total Pre-Tax Amount | Tax | Net-of-Tax Amount | |||||||||||||
At | 28-Jun-13 | $ | -365 | $ | 178 | $ | 10,999 | $ | 10,812 | $ | 338 | $ | 11,150 | ||||||
Unrealized loss on cash flow hedges | - | -419 | - | -419 | 147 | -272 | |||||||||||||
Realized gain on foreign currency hedges | - | -346 | - | -346 | 121 | -225 | |||||||||||||
Realized loss on interest rate swap hedges | - | 145 | - | 145 | -51 | 94 | |||||||||||||
Foreign currency translation gain | - | - | 3,579 | 3,579 | 0 | 3,579 | |||||||||||||
At | 27-Sep-13 | $ | -365 | $ | -442 | $ | 14,578 | $ | 13,771 | $ | 555 | $ | 14,326 | ||||||
Nine Month Period | Defined Benefit Plan Liability | Cash Flow Hedges | Foreign Currency Translation Adjustment | Total Pre-Tax Amount | Tax | Net-of-Tax Amount | |||||||||||||
At | 28-Dec-12 | $ | -962 | $ | 120 | $ | 13,431 | $ | 12,589 | $ | 358 | $ | 12,947 | ||||||
Unrealized gain on cash flow hedges | - | 2 | - | 2 | -1 | 1 | |||||||||||||
Realized gain on foreign currency hedges | - | -908 | - | -908 | 318 | -590 | |||||||||||||
Realized loss on interest rate swap hedges | - | 344 | - | 344 | -120 | 224 | |||||||||||||
Net defined benefit plan gain (Note 7) | 597 | - | - | 597 | - | 597 | |||||||||||||
Foreign currency translation gain | - | - | 1,147 | 1,147 | - | 1,147 | |||||||||||||
At | 27-Sep-13 | $ | -365 | $ | -442 | $ | 14,578 | $ | 13,771 | $ | 555 | $ | 14,326 | ||||||
The realized (gain) loss relating to the Company's foreign currency and interest rate swap hedges was reclassified from Accumulated Other Comprehensive Income and included in Cost of Sales and Interest Expense, respectively, in the Condensed Consolidated Statements of Operations. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||||||||
Sep. 27, 2013 | ||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||
14. FAIR VALUE MEASUREMENTS | ||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||||||||||||||
Fair value measurement standards apply to certain financial assets and liabilities that are measured at fair value on a recurring basis (each reporting period). For the Company, these financial assets and liabilities include its derivative instruments and accrued contingent consideration. The Company does not have any nonfinancial assets or liabilities that are measured at fair value on a recurring basis. | ||||||||||||||
Foreign currency contracts - The fair value of foreign currency contracts are determined through the use of cash flow models that utilize observable market data inputs to estimate fair value. These observable market data inputs include foreign exchange rate and credit spread curves. In addition to the above, the Company receives fair value estimates from the foreign currency contract counterparty to verify the reasonableness of the Company's estimates. The Company's foreign currency contracts are categorized in Level 2 of the fair value hierarchy. The fair value of the Company's foreign currency contracts will be realized as Cost of Sales as the inventory, which the contracts are hedging the cash flows to produce, is sold, of which approximately $0.04 million is expected to be realized within the next twelve months. | ||||||||||||||
Interest rate swap - The fair value of the Company's interest rate swap outstanding at September 27, 2013 was determined through the use of a cash flow model that utilizes observable market data inputs. These observable market data inputs include LIBOR, swap rates, and credit spread curves. In addition to the above, the Company received a fair value estimate from the interest rate swap counterparty to verify the reasonableness of the Company's estimate. This fair value calculation was categorized in Level 2 of the fair value hierarchy. The fair value of the Company's interest rate swap will be realized as Interest Expense as interest on the Company's Credit Facility is accrued. | ||||||||||||||
Accrued contingent consideration – In circumstances where an acquisition involves a contingent consideration arrangement, the Company recognizes a liability equal to the fair value of the contingent payments it expects to make as of the acquisition date. The Company re-measures this liability each reporting period and records changes in the fair value through Other Operating Expenses, Net. Increases or decreases in the fair value of the contingent consideration liability can result from changes in discount periods and rates, as well as changes in the timing, amount of, or the likelihood of achieving the applicable milestones. | ||||||||||||||
The fair value of accrued contingent consideration recorded by the Company represents the estimated fair value of the contingent consideration the Company expects to pay to the former shareholders of NeuroNexus based upon the achievement of certain financial and development-based milestones. The fair value of the contingent consideration liability was estimated by discounting to present value, the probability weighted contingent payments expected to be made. The maximum amount of future contingent consideration (undiscounted) that the Company could be required to pay is $2.0 million. The Company's accrued contingent consideration is categorized in Level 3 of the fair value hierarchy. Changes in accrued contingent consideration were as follows (in thousands): | ||||||||||||||
At | 28-Dec-12 | $ | 1,530 | |||||||||||
Fair value adjustments | -430 | |||||||||||||
At | 27-Sep-13 | $ | 1,100 | |||||||||||
The recurring Level 3 fair value measurements of the Company's contingent consideration liability include the following significant unobservable inputs (dollars in thousands): | ||||||||||||||
Fair | ||||||||||||||
Contingent | Value at | |||||||||||||
Consideration | September 27, | Valuation | Unobservable | |||||||||||
Liability | 2013 | Technique | Inputs | |||||||||||
Financial milestones | $ | 470 | Discounted cash flow | Discount rate | 12% | |||||||||
Projected year | ||||||||||||||
of payment | 2014 | |||||||||||||
Probability weighted payment amount | $ | 500 | ||||||||||||
Development milestones | 630 | Discounted cash flow | Discount rate | 20% | ||||||||||
Projected year | ||||||||||||||
of payment | 2016 | |||||||||||||
Probability weighted payment amount | $ | 1,000 | ||||||||||||
The following table provides information regarding assets and liabilities recorded at fair value on a recurring basis in the Condensed Consolidated Balance Sheet (in thousands): | ||||||||||||||
Fair Value Measurements Using | ||||||||||||||
Quoted | ||||||||||||||
Prices in | Significant | |||||||||||||
Active Markets | Other | Significant | ||||||||||||
At | for Identical | Observable | Unobservable | |||||||||||
September 27, | Assets | Inputs | Inputs | |||||||||||
Description | 2013 | (Level 1) | (Level 2) | (Level 3) | ||||||||||
Assets | ||||||||||||||
Foreign currency contracts (Note 11) | $ | 37 | $ | 0 | $ | 37 | $ | 0 | ||||||
Liabilities | ||||||||||||||
Interest rate swap (Note 6) | $ | 400 | $ | 0 | $ | 400 | $ | 0 | ||||||
Foreign currency contracts (Note 11) | 79 | 0 | 79 | 0 | ||||||||||
Accrued contingent consideration | 1,100 | 0 | 0 | 1,100 | ||||||||||
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | ||||||||||||||
Fair value standards also apply to certain nonfinancial assets and liabilities that are measured at fair value on a nonrecurring basis. As of September 27, 2013, the fair value of the Company's variable rate Long-Term Debt approximates its carrying value. A summary of the valuation methodologies for the Company's assets and liabilities measured on a nonrecurring basis is as follows: | ||||||||||||||
Long-lived assets - The Company reviews the carrying amount of its long-lived assets to be held and used, other than goodwill and indefinite-lived intangible assets, for potential impairment whenever certain indicators are present such as: a significant decrease in the market price of the asset or asset group; a significant change in the extent or manner in which the long-lived asset or asset group is being used or in its physical condition; a significant change in legal factors or in the business climate that could affect the value of the long-lived asset or asset group, including an action or assessment by a regulator; an accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; a current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of the long-lived asset or asset group; or a current expectation that it is more likely than not the long-lived asset or asset group will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. The term more likely than not refers to a level of likelihood that is more than 50 percent. | ||||||||||||||
If an indicator is present, potential recoverability is measured by comparing the carrying amount of the long-lived asset or asset group to its related total future undiscounted cash flows. If the carrying value is not recoverable, the asset or asset group is considered to be impaired. Impairment is measured by comparing the asset or asset group's carrying amount to its fair value, which is determined by using independent appraisals or discounted cash flow models. The discounted cash flow model requires inputs such as a risk-adjusted discount rate, terminal values, operating budgets, long-term strategic plans and remaining useful lives of the asset or asset group. If the carrying value of the long-lived asset or asset group exceeds the fair value, the carrying value is written down to the fair value in the period identified. The Company did not record any impairment charge related to its long-lived assets, other than goodwill and indefinite-lived intangible assets, during the first nine months of 2013. During the first nine months of 2012, the Company recorded an impairment charge to Other Operating Expenses, Net of $0.3 million relating to the write-off of a definite-lived intangible asset. | ||||||||||||||
Goodwill and indefinite-lived intangible assets – The Company assess the impairment of goodwill and other indefinite-lived intangible assets on the last day of each fiscal year, or more frequently if certain indicators are present as described above under long-lived assets. The Company assesses goodwill for impairment by comparing the fair value of its reporting units to their carrying amounts. If the fair value of a reporting unit is less than its carrying value, an impairment loss is recorded to the extent that the implied fair value of the goodwill within the reporting unit is less than its carrying value. Fair values for reporting units are determined based on discounted cash flow models and market multiples. The discounted cash flow model requires inputs such as a risk-adjusted discount rate, terminal values, operating budgets, and long-term strategic plans. The fair value from the discounted cash flow model is then combined, based on certain weightings, with market multiples in order to determine the fair value of the reporting unit. These market multiples include revenue multiples and multiples of earnings before interest, taxes, depreciation and amortization. | ||||||||||||||
Indefinite-lived intangible assets are assessed for impairment by comparing the fair value of the intangible asset to its carrying value. If the carrying value of the indefinite-lived intangible asset exceeds the fair value, the carrying value is written down to the fair value in the period identified. The fair value of indefinite-lived intangible assets is determined by using a discounted cash flow model. The discounted cash flow model requires inputs such as a risk-adjusted discount rate, royalty rates, operating budgets, and long-term strategic plans. | ||||||||||||||
The Company recorded impairment charges in Other Operating Expenses, Net related to its indefinite-lived intangible assets, excluding goodwill, of $0.4 million and $0 during the first nine months of 2013 and 2012, respectively. No impairment loss was recorded for goodwill during the first nine months of 2013 or 2012. Note 5 “Intangible Assets” contains additional information on the Company's intangible assets. | ||||||||||||||
Cost and equity method investments - The Company holds investments in equity and other securities that are accounted for as either cost or equity method investments and are classified as Other Assets. The total carrying value of these investments is reviewed quarterly for changes in circumstance or the occurrence of events that suggest the Company's investment may not be recoverable. The fair value of cost or equity method investments is not adjusted if there are no identified events or changes in circumstances that may have a material effect on the fair value of the investments. Gains and losses realized on cost and equity method investments are recorded in Other (Income) Expense, Net, unless separately stated. The aggregate recorded amount of cost and equity method investments at September 27, 2013 and December 28, 2012 was $10.6 million and $9.1 million, respectively. The Company recorded losses related to its cost and equity method investments of $0.6 million and $0 during the first nine months of 2013 and 2012, respectively. |
Business_Segment_Geographic_an
Business Segment, Geographic and Concentration Risk Information | 9 Months Ended | ||||||||||||||
Sep. 27, 2013 | |||||||||||||||
Business Segment, Geographic and Concentration Risk Information [Abstract] | ' | ||||||||||||||
BUSINESS SEGMENT, GEOGRAPHIC AND CONCENTRATION RISK INFORMATION | ' | ||||||||||||||
15. BUSINESS SEGMENT, GEOGRAPHIC AND CONCENTRATION RISK INFORMATION | |||||||||||||||
The Company currently operates its business in two reportable segments – Implantable Medical and Electrochem. The Implantable Medical segment is comprised of Greatbatch Medical and QiG Group and designs and manufactures medical devices and components for the cardiac, neuromodulation, vascular and orthopaedic markets. The Implantable Medical segment offers complete medical devices including design, development, manufacturing, regulatory submission and supporting worldwide distribution, which is facilitated through the QiG Group and leverages the component technology of Greatbatch Medical. The devices designed and developed by the QiG Group are manufactured by Greatbatch Medical. The Implantable Medical segment also offers individual components for implantable medical devices as well as value-added assembly and design engineering services for its component products. Examples of these components include batteries, capacitors, filtered and un-filtered feedthroughs, machined components, enclosures, leads, introducers, catheters, as well as orthopaedic implants, instruments and cases and trays. | |||||||||||||||
Electrochem is an industry leader in designing and manufacturing total power solutions for critical applications with market-leading OEMs, largely in the portable medical and energy space. Electrochem offers its customers components, consultation, design, development and testing for medical device applications, in high-value markets, including those that support the transition of delivery of health care from clinical to outpatient and home settings, as well as those that enhance the quality of life for an aging population. Examples of these devices include powered surgical tools, automated external defibrillators, portable ultrasound devices, portable oxygen concentrators, and ventilators, among others. Electrochem provides cell and battery pack configurations for rechargeable and non-rechargeable battery power systems, charging and docking stations, and power supplies, for devices where failure is not an option. | |||||||||||||||
As discussed further in Note 9 “Other Operating Expenses, Net,” in June 2013, the Company initiated a plan to realign its operating structure in order to optimize its continued focus on profitable growth. As part of this initiative, the sales and marketing and operations groups of its Implantable Medical and Electrochem segments were combined into one sales and marketing and one operations group serving the entire Company. As a result of this realignment initiative, which includes changing the management and reporting structure, the Company is re-evaluating its operating and reportable segments. | |||||||||||||||
The Company defines segment income from operations as sales less cost of sales including amortization and expenses attributable to segment-specific selling, general, administrative, research, development, engineering and other operating activities. Segment income also includes a portion of non-segment specific selling, general, and administrative expenses based on allocations appropriate to the expense categories. The remaining unallocated operating and other expenses are primarily administrative corporate headquarters expenses and capital costs that are not allocated to reportable segments. Transactions between the two segments are not significant. | |||||||||||||||
An analysis and reconciliation of the Company's business segment, product line and geographic information to the respective information in the Condensed Consolidated Financial Statements follows. Sales by geographic area are presented by allocating sales from external customers based on the location to which products are shipped (in thousands): | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||||
Sales: | 2013 | 2012 | 2013 | 2012 | |||||||||||
Implantable Medical | |||||||||||||||
Cardiac/Neuromodulation | $ | 86,980 | $ | 80,246 | $ | 242,161 | $ | 235,406 | |||||||
Orthopaedic | 30,079 | 27,173 | 92,043 | 91,079 | |||||||||||
Vascular | 12,279 | 13,674 | 35,152 | 37,791 | |||||||||||
Total Implantable Medical | 129,338 | 121,093 | 369,356 | 364,276 | |||||||||||
Electrochem | |||||||||||||||
Portable Medical | 19,320 | 20,219 | 60,376 | 59,346 | |||||||||||
Energy | 13,625 | 13,054 | 39,025 | 41,024 | |||||||||||
Other | 5,447 | 6,974 | 18,569 | 22,345 | |||||||||||
Total Electrochem | 38,392 | 40,247 | 117,970 | 122,715 | |||||||||||
Total sales | $ | 167,730 | $ | 161,340 | $ | 487,326 | $ | 486,991 | |||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Segment income from operations: | |||||||||||||||
Implantable Medical | $ | 19,074 | $ | 2,744 | $ | 50,057 | $ | 24,252 | |||||||
Electrochem | 2,216 | 5,350 | 12,860 | 16,020 | |||||||||||
Total segment income from operations | 21,290 | 8,094 | 62,917 | 40,272 | |||||||||||
Unallocated operating expenses | -4,288 | -5,967 | -14,441 | -15,856 | |||||||||||
Operating income as reported | 17,002 | 2,127 | 48,476 | 24,416 | |||||||||||
Unallocated other expense | -1,458 | -4,299 | -10,855 | -13,599 | |||||||||||
Income (loss) before provision for income taxes | $ | 15,544 | $ | -2,172 | $ | 37,621 | $ | 10,817 | |||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Sales by geographic area: | |||||||||||||||
United States | $ | 81,736 | $ | 82,522 | $ | 242,304 | $ | 249,306 | |||||||
Non-Domestic locations: | |||||||||||||||
Puerto Rico | 31,936 | 31,320 | 87,592 | 81,541 | |||||||||||
Belgium | 14,947 | 11,346 | 49,895 | 41,737 | |||||||||||
Rest of world | 39,111 | 36,152 | 107,535 | 114,407 | |||||||||||
Total sales | $ | 167,730 | $ | 161,340 | $ | 487,326 | $ | 486,991 | |||||||
Three customers accounted for a significant portion of the Company’s sales as follows: | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Customer A | 21% | 19% | 20% | 19% | |||||||||||
Customer B | 16% | 18% | 16% | 15% | |||||||||||
Customer C | 11% | 10% | 13% | 10% | |||||||||||
Total | 48% | 47% | 49% | 44% | |||||||||||
Long-lived tangible assets by geographic area are as follows (in thousands): | |||||||||||||||
As of | |||||||||||||||
September 27, | December 28, | ||||||||||||||
2013 | 2012 | ||||||||||||||
United States | $ | 117,393 | $ | 123,104 | |||||||||||
Rest of world | 30,038 | 27,789 | |||||||||||||
Total | $ | 147,431 | $ | 150,893 |
Impact_of_Recently_Issued_Acco
Impact of Recently Issued Accounting Standards | 9 Months Ended |
Sep. 27, 2013 | |
Impact of Recently Issued Accounting Standards [Abstract] | ' |
IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS | ' |
16. IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS | |
In the normal course of business, management evaluates all new accounting pronouncements issued by the Financial Accounting Standards Board (“FASB”), Securities and Exchange Commission, Emerging Issues Task Force, American Institute of Certified Public Accountants or other authoritative accounting bodies to determine the potential impact they may have on the Company's Condensed Consolidated Financial Statements. Based upon this review except as noted below, management does not expect any of the recently issued accounting pronouncements, which have not already been adopted, to have a material impact on the Company's Condensed Consolidated Financial Statements. | |
On February 5, 2013, the FASB issued Accounting Standards Update (“ASU”) 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” This ASU added new disclosure requirements regarding the effect of significant amounts reclassified from each component of accumulated other comprehensive income (“AOCI”) based on its source and the income statement line items affected by the reclassification. This ASU gave companies the flexibility to present the information either in the notes or parenthetically on the face of the financial statements provided that all of the required information is presented in a single location. This ASU was effective prospectively for annual and interim reporting periods beginning after December 15, 2012. This ASU was adopted during the first quarter of 2013 and did not have a material impact on the Company's Condensed Consolidated Financial Statements as it only changed the disclosures surrounding AOCI. | |
In July 2012, the FASB issued ASU No. 2012-02, “Intangibles—Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment.” This ASU simplified the guidance for testing the decline in the realizable value (impairment) of indefinite-lived intangible assets other than goodwill. The amendment allowed an organization the option to first assess qualitative factors to determine whether it is necessary to perform the quantitative impairment test. An organization electing to perform a qualitative assessment is no longer required to calculate the fair value of an indefinite-lived intangible asset unless the organization determines, based on a qualitative assessment, that it is “more likely than not” that the asset is impaired. The amendments in this ASU were effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. This ASU did not have a material impact on the Company's Condensed Consolidated Financial Statements as it only impacted the timing of when the Company was required to perform the two-step impairment test of its indefinite-lived intangible assets other than goodwill. | |
In December 2011, the FASB issued ASU No. 2011-11 “Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities.” This ASU requires companies to provide expanded disclosures about trading in financial instruments and related derivatives, and creates new disclosure requirements about the nature of an entity's rights of offset and related arrangements associated with its financial instruments and derivative instruments. The disclosure requirements are effective for annual reporting periods beginning on or after January 1, 2013, and interim periods therein, with retrospective application required. This ASU did not have a material impact on the Company's Condensed Consolidated Financial Statements as it only changes the disclosures surrounding the Company's offsetting assets and liabilities. |
Accounting_Policies_Policies
Accounting Policies (Policies) | 9 Months Ended |
Sep. 27, 2013 | |
Basis of Presentation [Abstract] | ' |
Interim Basis of Accounting [Policy Text Block] | ' |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information (Accounting Standards Codification (“ASC”) 270, Interim Reporting) and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information necessary for a full presentation of financial position, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Operating results for interim periods are not necessarily indicative of results that may be expected for the fiscal year as a whole. In the opinion of management, the condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the results of Greatbatch, Inc. and its wholly-owned subsidiary, Greatbatch Ltd. (collectively “Greatbatch” or the “Company”), for the periods presented. | |
The December 28, 2012 condensed consolidated balance sheet data was derived from audited consolidated financial statements but does not include all disclosures required by GAAP. For further information, refer to the consolidated financial statements and notes included in the Company's Annual Report on Form 10-K for the year ended December 28, 2012. | |
Use of Estimates, Policy [Policy Text Block] | ' |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, sales, expenses, and related disclosures at the date of the financial statements and during the reporting period. Actual results could differ materially from these estimates. | |
Fiscal Period, Policy [Policy Text Block] | ' |
The Company utilizes a fifty-two, fifty-three week fiscal year ending on the Friday nearest December 31st. The third quarter and year-to-date periods of 2013 and 2012 each contained 13 weeks and 39 weeks, respectively, and ended on September 27, and September 28, respectively. | |
Income Tax, Policy [Policy Text Block] | ' |
The income tax provision for interim periods is determined using an estimate of the annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the estimate of the annual effective tax rate is updated, and if the estimated effective tax rate changes, a cumulative adjustment is made. There is a potential for volatility of the effective tax rate due to several factors, including changes in the mix of the pre-tax income and the jurisdictions to which it relates, changes in tax laws and foreign tax holidays, business reorganizations, settlements with taxing authorities and foreign currency fluctuations. | |
Contingent Liability Reserve Estimate, Policy [Policy Text Block] | ' |
In circumstances where an acquisition involves a contingent consideration arrangement, the Company recognizes a liability equal to the fair value of the contingent payments it expects to make as of the acquisition date. The Company re-measures this liability each reporting period and records changes in the fair value through Other Operating Expenses, Net. Increases or decreases in the fair value of the contingent consideration liability can result from changes in discount periods and rates, as well as changes in the timing, amount of, or the likelihood of achieving the applicable milestones. | |
Long Lived Assets Finite Lived Intangible Assets [Policy Text Block] | ' |
The Company reviews the carrying amount of its long-lived assets to be held and used, other than goodwill and indefinite-lived intangible assets, for potential impairment whenever certain indicators are present such as: a significant decrease in the market price of the asset or asset group; a significant change in the extent or manner in which the long-lived asset or asset group is being used or in its physical condition; a significant change in legal factors or in the business climate that could affect the value of the long-lived asset or asset group, including an action or assessment by a regulator; an accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; a current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of the long-lived asset or asset group; or a current expectation that it is more likely than not the long-lived asset or asset group will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. The term more likely than not refers to a level of likelihood that is more than 50 percent. | |
If an indicator is present, potential recoverability is measured by comparing the carrying amount of the long-lived asset or asset group to its related total future undiscounted cash flows. If the carrying value is not recoverable, the asset or asset group is considered to be impaired. Impairment is measured by comparing the asset or asset group's carrying amount to its fair value | |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | ' |
The Company assess the impairment of goodwill and other indefinite-lived intangible assets on the last day of each fiscal year, or more frequently if certain indicators are present as described above under long-lived assets. The Company assesses goodwill for impairment by comparing the fair value of its reporting units to their carrying amounts. If the fair value of a reporting unit is less than its carrying value, an impairment loss is recorded to the extent that the implied fair value of the goodwill within the reporting unit is less than its carrying value. | |
Goodwill and Intangible Assets, Intangible Assets, Indefinite-Lived, Policy [Policy Text Block] | ' |
Indefinite-lived intangible assets are assessed for impairment by comparing the fair value of the intangible asset to its carrying value. If the carrying value of the indefinite-lived intangible asset exceeds the fair value, the carrying value is written down to the fair value in the period identified. | |
Cost And Equity Method Investments Policy [Policy Text Block] | ' |
The Company holds investments in equity and other securities that are accounted for as either cost or equity method investments and are classified as Other Assets. The total carrying value of these investments is reviewed quarterly for changes in circumstance or the occurrence of events that suggest the Company's investment may not be recoverable. The fair value of cost or equity method investments is not adjusted if there are no identified events or changes in circumstances that may have a material effect on the fair value of the investments. |
Acquistions_Tables
Acquistions (Tables) | 9 Months Ended | ||||||||||||||
Sep. 27, 2013 | |||||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||||
Business Acquisition, Pro Forma Information [Table Text Block] | ' | ||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Sales | $ | 167,730 | $ | 161,340 | $ | 487,326 | $ | 487,431 | |||||||
Net income (loss) | 11,071 | -7,561 | 26,486 | 583 | |||||||||||
Earnings (loss) per share: | |||||||||||||||
Basic | $ | 0.46 | $ | -0.32 | $ | 1.11 | $ | 0.02 | |||||||
Diluted | $ | 0.44 | $ | -0.32 | $ | 1.06 | $ | 0.02 |
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 9 Months Ended | ||||||||
Sep. 27, 2013 | |||||||||
Supplemental Cash Flow Information [Abstract] | ' | ||||||||
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | ' | ||||||||
Nine Months Ended | |||||||||
September 27, | September 28, | ||||||||
(in thousands) | 2013 | 2012 | |||||||
Noncash investing and financing activities: | |||||||||
Common stock contributed to 401(k) Plan | $ | 2,477 | $ | 4,793 | |||||
Property, plant and equipment purchases included | |||||||||
in accounts payable | 711 | 4,611 | |||||||
Cash paid during the period for: | |||||||||
Interest | $ | 4,388 | $ | 3,250 | |||||
Income taxes | 31,755 | 2,923 | |||||||
Acquisition of noncash assets | $ | - | $ | 14,396 | |||||
Liabilities assumed | - | 1,244 |
Inventories_Tables
Inventories (Tables) | 9 Months Ended | |||||||
Sep. 27, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Schedule of Inventory, Current [Table Text Block] | ' | |||||||
Inventories are comprised of the following (in thousands): | ||||||||
As of | ||||||||
September 27, | December 28, | |||||||
2013 | 2012 | |||||||
Raw materials | $ | 67,515 | $ | 58,204 | ||||
Work-in-process | 38,321 | 30,022 | ||||||
Finished goods | 16,987 | 18,386 | ||||||
Total | $ | 122,823 | $ | 106,612 |
Intangible_Assets_Tables
Intangible Assets (Tables) | 9 Months Ended | |||||||||||||
Sep. 27, 2013 | ||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||
Schedule of Finite-Lived Intangible Assets by Major Class [Table Text Block] | ' | |||||||||||||
Amortizing intangible assets are comprised of the following (in thousands): | ||||||||||||||
At | 27-Sep-13 | Gross Carrying Amount | Accumulated Amortization | Foreign Currency Translation | Net Carrying Amount | |||||||||
Technology and patents | $ | 95,576 | $ | -68,427 | $ | 3,129 | $ | 30,278 | ||||||
Customer lists | 68,257 | -22,076 | 207 | 46,388 | ||||||||||
Other | 4,434 | -4,385 | 803 | 852 | ||||||||||
Total amortizing intangible assets | $ | 168,267 | $ | -94,888 | $ | 4,139 | $ | 77,518 | ||||||
At | 28-Dec-12 | |||||||||||||
Technology and patents | $ | 95,576 | $ | -61,659 | $ | 1,932 | $ | 35,849 | ||||||
Customer lists | 68,257 | -18,929 | 1,270 | 50,598 | ||||||||||
Other | 4,434 | -4,341 | 805 | 898 | ||||||||||
Total amortizing intangible assets | $ | 168,267 | $ | -84,929 | $ | 4,007 | $ | 87,345 | ||||||
Schedule of Finite-Lived Intangible Assets, Amortization Expense [Table Text Block] | ' | |||||||||||||
Aggregate intangible asset amortization expense is comprised of the following (in thousands): | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 27, | September 28, | September 27, | September 28, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Cost of sales | $ | 1,668 | $ | 1,863 | $ | 5,207 | $ | 5,658 | ||||||
Selling, general and administrative expenses | 1,446 | 1,573 | 4,343 | 4,713 | ||||||||||
Research, development and engineering costs, net | 137 | 136 | 409 | 409 | ||||||||||
Total intangible asset amortization expense | $ | 3,251 | $ | 3,572 | $ | 9,959 | $ | 10,780 | ||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | ' | |||||||||||||
Estimated future intangible asset amortization expense based on the current carrying value is as follows (in thousands): | ||||||||||||||
Estimated | ||||||||||||||
Amortization | ||||||||||||||
Expense | ||||||||||||||
Remainder of | 2013 | $ | 3,207 | |||||||||||
2014 | 13,437 | |||||||||||||
2015 | 12,386 | |||||||||||||
2016 | 10,092 | |||||||||||||
2017 | 8,969 | |||||||||||||
Thereafter | 29,427 | |||||||||||||
Total estimated amortization expense | $ | 77,518 | ||||||||||||
Schedule of Intangible Assets Goodwill [Table Text Block] | ' | |||||||||||||
Indefinite-lived intangible assets are comprised of the following (in thousands): | ||||||||||||||
Trademarks and Tradenames | IPR&D | Total | ||||||||||||
At | 28-Dec-12 | $ | 20,288 | $ | 540 | $ | 20,828 | |||||||
Indefinite-lived asset write-off | - | -426 | -426 | |||||||||||
At | 27-Sep-13 | $ | 20,288 | $ | 114 | $ | 20,402 | |||||||
The change in goodwill is as follows (in thousands): | ||||||||||||||
Implantable Medical | Electrochem | Total | ||||||||||||
At | 28-Dec-12 | $ | 307,201 | $ | 41,834 | $ | 349,035 | |||||||
Goodwill disposed (Note 9) | -2,771 | - | -2,771 | |||||||||||
Foreign currency translation | 350 | - | 350 | |||||||||||
At | 27-Sep-13 | $ | 304,780 | $ | 41,834 | $ | 346,614 |
Debt_Tables
Debt (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 27, 2013 | ||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||
Schedule of Debt [Table Text Block] | ' | |||||||||||||||||||
Long-term debt is comprised of the following (in thousands): | ||||||||||||||||||||
As of | ||||||||||||||||||||
September 27, | December 28, | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Revolving line of credit | $ | 10,000 | $ | 33,000 | ||||||||||||||||
Variable rate term loan | 200,000 | - | ||||||||||||||||||
2.25% convertible subordinated notes | - | 197,782 | ||||||||||||||||||
Unamortized discount | - | -5,368 | ||||||||||||||||||
Total long-term debt | $ | 210,000 | $ | 225,414 | ||||||||||||||||
Schedule Of Interest Rate Derivatives [Table Text Block] | ' | |||||||||||||||||||
Current | Fair | |||||||||||||||||||
Pay | Receive | Value | Balance | |||||||||||||||||
Type of | Notional | Start | End | Fixed | Floating | Sept. 27, | Sheet | |||||||||||||
Instrument | Hedge | Amount | Date | Date | Rate | Rate | 2013 | Location | ||||||||||||
Interest rate swap | Cash flow | $ | 150,000 | 13-Feb | 16-Feb | 0.57% | 0.18% | $ | -400 | Other Long-Term Liabilities | ||||||||||
Schedule of Interest [Table Text Block] | ' | |||||||||||||||||||
The contractual interest and discount amortization for CSN were as follows (in thousands): | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 27, | September 28, | September 27, | September 28, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Contractual interest | $ | - | $ | 1,113 | $ | 634 | $ | 3,338 | ||||||||||||
Discount amortization | - | 2,781 | 5,368 | 8,205 | ||||||||||||||||
Schedule Of Maturities Of Long Term Debt [Table Text Block] | ' | |||||||||||||||||||
The expected future minimum principal payments under the Credit Facility as of September 27, 2013 is as follows (in thousands): | ||||||||||||||||||||
Remainder of 2013 | $ | 2,500 | ||||||||||||||||||
2014 | 10,000 | |||||||||||||||||||
2015 | 11,250 | |||||||||||||||||||
2016 | 16,250 | |||||||||||||||||||
2017 | 20,000 | |||||||||||||||||||
Thereafter | 150,000 | |||||||||||||||||||
Total | $ | 210,000 | ||||||||||||||||||
Schedule of Deferred Financing Costs [Table Text Block] | ' | |||||||||||||||||||
At | 28-Dec-12 | $ | 2,056 | |||||||||||||||||
Financing costs deferred | 2,697 | |||||||||||||||||||
Write-off during the period | -156 | |||||||||||||||||||
Amortization during the period | -648 | |||||||||||||||||||
At | 27-Sep-13 | $ | 3,949 |
Defined_Benefit_Plans_Tables
Defined Benefit Plans (Tables) | 9 Months Ended | ||||||||||||
Sep. 27, 2013 | |||||||||||||
Defined Benefit Pension Plans And Defined Benefit Postretirement Plans Disclosure [Abstract] | ' | ||||||||||||
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | ' | ||||||||||||
The change in net defined benefit plan liability is as follows (in thousands): | |||||||||||||
At | 28-Dec-12 | $ | 3,946 | ||||||||||
Service cost | 227 | ||||||||||||
Interest cost | 144 | ||||||||||||
Curtailment | -1,581 | ||||||||||||
Actuarial gain | -171 | ||||||||||||
Benefit payments | -125 | ||||||||||||
Foreign currency translation | 14 | ||||||||||||
At | 27-Sep-13 | $ | 2,454 | ||||||||||
Schedule Of Defined Benefit Plan Amounts Recognized In Other Comprehensive Income Loss [Table Text Block] | ' | ||||||||||||
Amounts recognized in Accumulated Other Comprehensive Income are as follows (in thousands): | |||||||||||||
Nine Months Ended | |||||||||||||
27-Sep-13 | |||||||||||||
Net gain occurring during the period | $ | -171 | |||||||||||
Amortization of losses | -581 | ||||||||||||
Prior service cost | 155 | ||||||||||||
Pre-tax adjustment | -597 | ||||||||||||
Taxes | - | ||||||||||||
Net gain | $ | -597 | |||||||||||
Schedule of Net Benefit Costs [Table Text Block] | ' | ||||||||||||
Net defined benefit cost (income) is comprised of the following (in thousands): | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Service cost | $ | 76 | $ | 272 | $ | 227 | $ | 835 | |||||
Interest cost | 41 | 98 | 144 | 305 | |||||||||
Curtailment gain (Other Operating Expenses, Net) | - | - | -1,150 | - | |||||||||
Amortization of net loss | - | 30 | - | 92 | |||||||||
Expected return on plan assets | - | -103 | - | -318 | |||||||||
Net defined benefit (income) cost | $ | 117 | $ | 297 | $ | -779 | $ | 914 |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | |||||||||||||||
Sep. 27, 2013 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | ' | |||||||||||||||
The components and classification of stock-based compensation expense were as follows (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 27, | September 28, | September 27, | September 28, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Stock options | $ | 1,374 | $ | 671 | $ | 2,784 | $ | 2,038 | ||||||||
Restricted stock and units | 2,013 | 1,523 | 4,958 | 4,559 | ||||||||||||
401(k) stock contribution | 679 | 1,280 | 3,671 | 2,410 | ||||||||||||
Total stock-based compensation expense | $ | 4,066 | $ | 3,474 | $ | 11,413 | $ | 9,007 | ||||||||
Cost of sales | $ | 1,117 | $ | 1,119 | $ | 3,246 | $ | 2,486 | ||||||||
Selling, general and administrative | 1,598 | 2,006 | 6,052 | 5,732 | ||||||||||||
Research, development and engineering | 215 | 349 | 979 | 789 | ||||||||||||
2013 operating unit realignment modification expense - Other Operating Expenses, Net (Note 9) | 1,136 | - | 1,136 | - | ||||||||||||
Total stock-based compensation expense | $ | 4,066 | $ | 3,474 | $ | 11,413 | $ | 9,007 | ||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | |||||||||||||||
The weighted average fair value and assumptions used to value options granted are as follows: | ||||||||||||||||
Nine Months Ended | ||||||||||||||||
September 27, | September 28, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Weighted average fair value | $ | 8.38 | $ | 8.2 | ||||||||||||
Risk-free interest rate | 0.73% | 0.83% | ||||||||||||||
Expected volatility | 39% | 40% | ||||||||||||||
Expected life (in years) | 5 | 5 | ||||||||||||||
Expected dividend yield | 0% | 0% | ||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | |||||||||||||||
The following table summarizes time-vested stock option activity: | ||||||||||||||||
Number of Time-Vested Stock Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (In Years) | Aggregate Intrinsic Value (In Millions) | |||||||||||||
Outstanding at | 28-Dec-12 | 1,775,847 | $ | 23.17 | ||||||||||||
Granted | 372,676 | 23.33 | ||||||||||||||
Exercised | -215,200 | 22.87 | ||||||||||||||
Forfeited or expired | -69,467 | 26.2 | ||||||||||||||
Outstanding at | 27-Sep-13 | 1,863,856 | $ | 23.13 | 6.2 | $ | 19.9 | |||||||||
Exercisable at | 27-Sep-13 | 1,287,345 | $ | 23.17 | 5 | $ | 13.7 | |||||||||
The following table summarizes performance-vested stock option activity: | ||||||||||||||||
Number of Performance-Vested Stock Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (In Years) | Aggregate Intrinsic Value (In Millions) | |||||||||||||
Outstanding at | 28-Dec-12 | 284,925 | $ | 23.26 | ||||||||||||
Granted | 0 | 0 | ||||||||||||||
Exercised | -55,571 | 23.21 | ||||||||||||||
Forfeited or expired | - | - | ||||||||||||||
Outstanding at | 27-Sep-13 | 229,354 | $ | 23.27 | 3.6 | $ | 2.4 | |||||||||
Exercisable at | 27-Sep-13 | 229,354 | $ | 23.27 | 3.6 | $ | 2.4 | |||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | ' | |||||||||||||||
The following table summarizes time-vested restricted stock and unit activity: | ||||||||||||||||
Time-Vested Activity | Weighted Average Fair Value | |||||||||||||||
Nonvested at | 28-Dec-12 | 80,269 | $ | 23.48 | ||||||||||||
Granted | 63,022 | 25.85 | ||||||||||||||
Vested | -30,592 | 22.46 | ||||||||||||||
Forfeited | -4,463 | 21.65 | ||||||||||||||
Nonvested at | 27-Sep-13 | 108,236 | $ | 25.23 | ||||||||||||
The following table summarizes performance-vested restricted stock and unit activity: | ||||||||||||||||
Performance-Vested Activity | Weighted Average Fair Value | |||||||||||||||
Nonvested at | 28-Dec-12 | 782,446 | $ | 16.02 | ||||||||||||
Granted | 318,169 | 15.86 | ||||||||||||||
Vested | -49,139 | 14.68 | ||||||||||||||
Forfeited | -240,312 | 14.94 | ||||||||||||||
Nonvested at | 27-Sep-13 | 811,164 | $ | 16.36 |
Other_Operating_Income_Expense1
Other Operating (Income) Expense (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 27, 2013 | ||||||||||||||||||||
Other Operating (Income) Expense, Net [Abstract] | ' | |||||||||||||||||||
Schedule Of Other Operating Cost And Expense By Component [Table Text Block] | ' | |||||||||||||||||||
Other Operating Expenses, Net is comprised of the following (in thousands): | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 27, | September 28, | September 27, | September 28, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
2013 operating unit realignment | $ | 2,214 | $ | - | $ | 3,066 | $ | - | ||||||||||||
Orthopaedic facility optimization | 1,420 | 12,452 | 6,723 | 14,774 | ||||||||||||||||
Medical device facility optimization | 52 | 388 | 282 | 1,282 | ||||||||||||||||
ERP system upgrade | -121 | 1,938 | 264 | 4,745 | ||||||||||||||||
Acquisition and integration (income) costs | -522 | 232 | -340 | 1,287 | ||||||||||||||||
Asset dispositions, severance and other | 457 | 303 | 565 | 1,893 | ||||||||||||||||
$ | 3,500 | $ | 15,313 | $ | 10,560 | $ | 23,981 | |||||||||||||
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | ' | |||||||||||||||||||
The change in accrued liabilities related to the 2013 operating unit realignment is as follows (in thousands): | ||||||||||||||||||||
Severance and Retention | Other | Total | ||||||||||||||||||
At | 28-Dec-12 | $ | 0 | $ | 0 | $ | 0 | |||||||||||||
Restructuring charges | 2,153 | 913 | 3,066 | |||||||||||||||||
Non-cash settlement (modification expense - Note 8) | -1,136 | - | -1,136 | |||||||||||||||||
Cash payments | -391 | -463 | -854 | |||||||||||||||||
At | 27-Sep-13 | $ | 626 | $ | 450 | $ | 1,076 | |||||||||||||
The change in accrued liabilities related to the orthopaedic facility optimization is as follows (in thousands): | ||||||||||||||||||||
Severance and Retention | Accelerated Depreciation/Asset Write-offs | Other | Total | |||||||||||||||||
At | 28-Dec-12 | $ | 9,567 | $ | - | $ | - | $ | 9,567 | |||||||||||
Restructuring charges | 544 | 192 | 5,987 | 6,723 | ||||||||||||||||
Write-offs | - | -192 | - | -192 | ||||||||||||||||
Liability assumed by third party | -2,398 | - | - | -2,398 | ||||||||||||||||
Cash payments | -6,978 | - | -5,622 | -12,600 | ||||||||||||||||
At | 27-Sep-13 | $ | 735 | $ | - | $ | 365 | $ | 1,100 | |||||||||||
The change in accrued liabilities related to the medical device facility optimization is as follows (in thousands): | ||||||||||||||||||||
Production Inefficiencies, Moving and Revalidation | Personnel | Other | Total | |||||||||||||||||
At | 28-Dec-12 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||||
Restructuring charges | 19 | 2 | 261 | 282 | ||||||||||||||||
Cash payments | -19 | -2 | -261 | -282 | ||||||||||||||||
At | 27-Sep-13 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||||
The change in accrued liabilities related to the ERP system upgrade is as follows (in thousands): | ||||||||||||||||||||
Training & Consulting Costs | Accelerated Depreciation/ Asset Write-offs | Total | ||||||||||||||||||
At | 28-Dec-12 | $ | 169 | $ | 0 | $ | 169 | |||||||||||||
Charges | 264 | - | 264 | |||||||||||||||||
Cash payments | -433 | 0 | -433 | |||||||||||||||||
At | 27-Sep-13 | $ | 0 | $ | 0 | $ | 0 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | |||||||||||||||
Sep. 27, 2013 | ||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||||||
Schedule of Product Warranty Liability [Table Text Block] | ' | |||||||||||||||
At | 28-Dec-12 | $ | 2,626 | |||||||||||||
Additions to warranty reserve | 1,372 | |||||||||||||||
Warranty claims paid | -123 | |||||||||||||||
At | 27-Sep-13 | $ | 3,875 | |||||||||||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | ' | |||||||||||||||
Remainder of | 2013 | $ | 1,400 | |||||||||||||
2014 | 5,123 | |||||||||||||||
2015 | 4,522 | |||||||||||||||
2016 | 3,826 | |||||||||||||||
2017 | 1,424 | |||||||||||||||
Thereafter | 1,933 | |||||||||||||||
Total estimated operating lease expense | $ | 18,228 | ||||||||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] | ' | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 27, | September 28, | September 27, | September 28, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Increase (reduction) in cost of sales | $ | -346 | $ | 11 | $ | -908 | $ | -8 | ||||||||
Ineffective portion of change in fair value | 0 | 0 | 0 | 0 | ||||||||||||
Schedule of Foreign Exchange Contracts, Statement of Financial Position [Table Text Block] | ' | |||||||||||||||
Instrument | Type of Hedge | Aggregate Notional Amount | Start Date | End Date | $/Peso | Fair Value | Balance Sheet Location | |||||||||
FX Contract | Cash flow | $ | 1,500 | 13-Jan | 13-Dec | 0.0727 | $ | 59 | Current Assets | |||||||
FX Contract | Cash flow | 1,500 | 13-Jan | 13-Dec | 0.0693 | 138 | Current Assets | |||||||||
FX Contract | Cash flow | 7,700 | 14-Jan | 14-Dec | 0.0767 | -239 | Current Assets/ Other Long-Term Liabilities |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | |||||||||||||
Sep. 27, 2013 | ||||||||||||||
EARNINGS PER SHARE (EPS) [Abstract] | ' | |||||||||||||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share [Table Text Block] | ' | |||||||||||||
The following table illustrates the calculation of Basic and Diluted EPS (in thousands, except per share amounts): | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 27, | September 28, | September 27, | September 28, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Numerator for basic and diluted EPS: | ||||||||||||||
Net income (loss) | $ | 11,071 | $ | -7,561 | $ | 26,486 | $ | 757 | ||||||
Denominator for basic EPS: | ||||||||||||||
Weighted average shares outstanding | 24,047 | 23,646 | 23,904 | 23,559 | ||||||||||
Effect of dilutive securities: | ||||||||||||||
Stock options, restricted stock and restricted stock units | 1,141 | - | 1,113 | 365 | ||||||||||
Denominator for diluted EPS | 25,188 | 23,646 | 25,017 | 23,924 | ||||||||||
Basic EPS | $ | 0.46 | $ | -0.32 | $ | 1.11 | $ | 0.03 | ||||||
Diluted EPS | $ | 0.44 | $ | -0.32 | $ | 1.06 | $ | 0.03 | ||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | ' | |||||||||||||
The diluted weighted average share calculations do not include the following securities, which are not dilutive to the EPS calculations or the performance criteria have not been met: | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 27, | September 28, | September 27, | September 28, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Time-vested stock options, restricted | ||||||||||||||
stock and restricted stock units | 43,000 | 2,223,000 | 59,000 | 1,237,000 | ||||||||||
Performance-vested stock options | ||||||||||||||
and restricted stock units | 27,000 | 781,000 | 26,000 | 692,000 |
Comprehensive_Income_Tables
Comprehensive Income (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 27, 2013 | |||||||||||||||||||
Accumulated Other Comprehensive Income Notes [Abstract] | ' | ||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ' | ||||||||||||||||||
Accumulated Other Comprehensive Income for the quarter and year to date periods are as follows (in thousands): | |||||||||||||||||||
Three Month Period | Defined Benefit Plan Liability | Cash Flow Hedges | Foreign Currency Translation Adjustment | Total Pre-Tax Amount | Tax | Net-of-Tax Amount | |||||||||||||
At | 28-Jun-13 | $ | -365 | $ | 178 | $ | 10,999 | $ | 10,812 | $ | 338 | $ | 11,150 | ||||||
Unrealized loss on cash flow hedges | - | -419 | - | -419 | 147 | -272 | |||||||||||||
Realized gain on foreign currency hedges | - | -346 | - | -346 | 121 | -225 | |||||||||||||
Realized loss on interest rate swap hedges | - | 145 | - | 145 | -51 | 94 | |||||||||||||
Foreign currency translation gain | - | - | 3,579 | 3,579 | 0 | 3,579 | |||||||||||||
At | 27-Sep-13 | $ | -365 | $ | -442 | $ | 14,578 | $ | 13,771 | $ | 555 | $ | 14,326 | ||||||
Nine Month Period | Defined Benefit Plan Liability | Cash Flow Hedges | Foreign Currency Translation Adjustment | Total Pre-Tax Amount | Tax | Net-of-Tax Amount | |||||||||||||
At | 28-Dec-12 | $ | -962 | $ | 120 | $ | 13,431 | $ | 12,589 | $ | 358 | $ | 12,947 | ||||||
Unrealized gain on cash flow hedges | - | 2 | - | 2 | -1 | 1 | |||||||||||||
Realized gain on foreign currency hedges | - | -908 | - | -908 | 318 | -590 | |||||||||||||
Realized loss on interest rate swap hedges | - | 344 | - | 344 | -120 | 224 | |||||||||||||
Net defined benefit plan gain (Note 7) | 597 | - | - | 597 | - | 597 | |||||||||||||
Foreign currency translation gain | - | - | 1,147 | 1,147 | - | 1,147 | |||||||||||||
At | 27-Sep-13 | $ | -365 | $ | -442 | $ | 14,578 | $ | 13,771 | $ | 555 | $ | 14,326 |
Fair_Value_Tables
Fair Value (Tables) | 9 Months Ended | |||||||||||||
Sep. 27, 2013 | ||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | ' | |||||||||||||
At | 28-Dec-12 | $ | 1,530 | |||||||||||
Fair value adjustments | -430 | |||||||||||||
At | 27-Sep-13 | $ | 1,100 | |||||||||||
Fair Value, Measurement Inputs, Disclosure [Table Text Block] | ' | |||||||||||||
Fair | ||||||||||||||
Contingent | Value at | |||||||||||||
Consideration | September 27, | Valuation | Unobservable | |||||||||||
Liability | 2013 | Technique | Inputs | |||||||||||
Financial milestones | $ | 470 | Discounted cash flow | Discount rate | 12% | |||||||||
Projected year | ||||||||||||||
of payment | 2014 | |||||||||||||
Probability weighted payment amount | $ | 500 | ||||||||||||
Development milestones | 630 | Discounted cash flow | Discount rate | 20% | ||||||||||
Projected year | ||||||||||||||
of payment | 2016 | |||||||||||||
Probability weighted payment amount | $ | 1,000 | ||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | ' | |||||||||||||
The following table provides information regarding assets and liabilities recorded at fair value on a recurring basis in the Condensed Consolidated Balance Sheet (in thousands): | ||||||||||||||
Fair Value Measurements Using | ||||||||||||||
Quoted | ||||||||||||||
Prices in | Significant | |||||||||||||
Active Markets | Other | Significant | ||||||||||||
At | for Identical | Observable | Unobservable | |||||||||||
September 27, | Assets | Inputs | Inputs | |||||||||||
Description | 2013 | (Level 1) | (Level 2) | (Level 3) | ||||||||||
Assets | ||||||||||||||
Foreign currency contracts (Note 11) | $ | 37 | $ | 0 | $ | 37 | $ | 0 | ||||||
Liabilities | ||||||||||||||
Interest rate swap (Note 6) | $ | 400 | $ | 0 | $ | 400 | $ | 0 | ||||||
Foreign currency contracts (Note 11) | 79 | 0 | 79 | 0 | ||||||||||
Accrued contingent consideration | 1,100 | 0 | 0 | 1,100 |
Business_Segment_Tables
Business Segment (Tables) | 9 Months Ended | ||||||||||||||
Sep. 27, 2013 | |||||||||||||||
Geographic Areas, Long-Lived Assets [Abstract] | ' | ||||||||||||||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | ' | ||||||||||||||
Long-lived tangible assets by geographic area are as follows (in thousands): | |||||||||||||||
As of | |||||||||||||||
September 27, | December 28, | ||||||||||||||
2013 | 2012 | ||||||||||||||
United States | $ | 117,393 | $ | 123,104 | |||||||||||
Rest of world | 30,038 | 27,789 | |||||||||||||
Total | $ | 147,431 | $ | 150,893 | |||||||||||
Geographic Areas, Revenues from External Customers [Abstract] | ' | ||||||||||||||
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | ' | ||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Sales by geographic area: | |||||||||||||||
United States | $ | 81,736 | $ | 82,522 | $ | 242,304 | $ | 249,306 | |||||||
Non-Domestic locations: | |||||||||||||||
Puerto Rico | 31,936 | 31,320 | 87,592 | 81,541 | |||||||||||
Belgium | 14,947 | 11,346 | 49,895 | 41,737 | |||||||||||
Rest of world | 39,111 | 36,152 | 107,535 | 114,407 | |||||||||||
Total sales | $ | 167,730 | $ | 161,340 | $ | 487,326 | $ | 486,991 | |||||||
Reconciliation from Segment Totals to Consolidated [Abstract] | ' | ||||||||||||||
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | ' | ||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||||
Sales: | 2013 | 2012 | 2013 | 2012 | |||||||||||
Implantable Medical | |||||||||||||||
Cardiac/Neuromodulation | $ | 86,980 | $ | 80,246 | $ | 242,161 | $ | 235,406 | |||||||
Orthopaedic | 30,079 | 27,173 | 92,043 | 91,079 | |||||||||||
Vascular | 12,279 | 13,674 | 35,152 | 37,791 | |||||||||||
Total Implantable Medical | 129,338 | 121,093 | 369,356 | 364,276 | |||||||||||
Electrochem | |||||||||||||||
Portable Medical | 19,320 | 20,219 | 60,376 | 59,346 | |||||||||||
Energy | 13,625 | 13,054 | 39,025 | 41,024 | |||||||||||
Other | 5,447 | 6,974 | 18,569 | 22,345 | |||||||||||
Total Electrochem | 38,392 | 40,247 | 117,970 | 122,715 | |||||||||||
Total sales | $ | 167,730 | $ | 161,340 | $ | 487,326 | $ | 486,991 | |||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | ' | ||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Segment income from operations: | |||||||||||||||
Implantable Medical | $ | 19,074 | $ | 2,744 | $ | 50,057 | $ | 24,252 | |||||||
Electrochem | 2,216 | 5,350 | 12,860 | 16,020 | |||||||||||
Total segment income from operations | 21,290 | 8,094 | 62,917 | 40,272 | |||||||||||
Unallocated operating expenses | -4,288 | -5,967 | -14,441 | -15,856 | |||||||||||
Operating income as reported | 17,002 | 2,127 | 48,476 | 24,416 | |||||||||||
Unallocated other expense | -1,458 | -4,299 | -10,855 | -13,599 | |||||||||||
Income (loss) before provision for income taxes | $ | 15,544 | $ | -2,172 | $ | 37,621 | $ | 10,817 | |||||||
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | ' | ||||||||||||||
Three customers accounted for a significant portion of the Company’s sales as follows: | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Customer A | 21% | 19% | 20% | 19% | |||||||||||
Customer B | 16% | 18% | 16% | 15% | |||||||||||
Customer C | 11% | 10% | 13% | 10% | |||||||||||
Total | 48% | 47% | 49% | 44% |
Basis_of_Presentation_Details
Basis of Presentation (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | |
Basis of Presentation [Abstract] | ' | ' | ' | ' |
Weeks In Reporting Period | '13 | '13 | '39 | '39 |
Acquisitions_Narrative_Details
Acquisitions (Narrative) (Details) (Neuro Nexus Technologies Inc [Member], USD $) | 0 Months Ended |
In Millions, unless otherwise specified | Feb. 16, 2012 |
Neuro Nexus Technologies Inc [Member] | ' |
Business Acquisition [Line Items] | ' |
Business Acquisition, Name of Acquired Entity | 'NeuroNexus Technologies, Inc. |
Business Acquisition, Description of Acquired Entity | 'NeuroNexus is an active implantable medical device design firm specializing in developing and commercializing neural interface technology, components and systems for neuroscience and clinical markets. NeuroNexus has an extensive intellectual property portfolio, core technologies and capabilities to support the development and manufacturing of neural interface devices across a wide range of applications including neuromodulation, sensing, optical stimulation and targeted drug delivery. The aggregate purchase price of NeuroNexus was $13.2 million. Total assets acquired from NeuroNexus were $14.6 million, of which $2.9 million were amortizing intangible assets and $8.9 million was allocated to goodwill. |
Business Acquisition, Cost of Acquired Entity, Cash Paid | $11.70 |
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 2 |
Business Acquisition, Contingent Consideration, at Fair Value | $1.50 |
Acquisitions_Net_Assets_Acquir
Acquisitions (Net Assets Acquired) (Details 1) (Neuro Nexus Technologies Inc [Member], USD $) | 0 Months Ended |
In Millions, unless otherwise specified | Feb. 16, 2012 |
Neuro Nexus Technologies Inc [Member] | ' |
Business Acquisition [Line Items] | ' |
Amortizing intangible assets | $2.90 |
Goodwill | 8.9 |
Total assets acquired | 14.6 |
Net assets acquired | $13.20 |
Acquisitions_Pro_Forma_Informa
Acquisitions (Pro Forma Information) (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Business Acquisition, Pro Forma Information [Abstract] | ' | ' | ' | ' |
Sales | $167,730 | $161,340 | $487,326 | $487,431 |
Net income | $11,071 | ($7,561) | $26,486 | $583 |
Basic earnings per share | $0.46 | ($0.32) | $1.11 | $0.02 |
Diluted earnings per share | $0.44 | ($0.32) | $1.06 | $0.02 |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 |
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract] | ' | ' |
Stock Issued During Period, Value, Employee Benefit Plan | $2,477 | $4,793 |
Property, plant and equipment purchases included in accounts payable | 711 | 4,611 |
Interest Paid | 4,388 | 3,250 |
Income Taxes Paid | 31,755 | 2,923 |
Acquisition of noncash assts | 0 | 14,396 |
Liabilities Assumed | $0 | $1,244 |
Inventories_Details
Inventories (Details) (USD $) | Sep. 27, 2013 | Dec. 28, 2012 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Inventory Raw Materials | $67,515 | $58,204 |
Inventory, Work in Process | 38,321 | 30,022 |
Inventory, Finished Goods | 16,987 | 18,386 |
Inventories | $122,823 | $106,612 |
Intangible_Assets_Amortizing_I
Intangible Assets (Amortizing Intangible Assets) (Details) (USD $) | Sep. 27, 2013 | Dec. 28, 2012 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-Lived Intangible Assets, Gross | $168,267 | $168,267 |
Finite-Lived Intangible Assets, Accumulated Amortization | -94,888 | -84,929 |
Foreign Currency Translation | 4,139 | 4,007 |
Amortizing intangible assets, net | 77,518 | 87,345 |
Purchased Technology And Patents [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-Lived Intangible Assets, Gross | 95,576 | 95,576 |
Finite-Lived Intangible Assets, Accumulated Amortization | -68,427 | -61,659 |
Foreign Currency Translation | 3,129 | 1,932 |
Amortizing intangible assets, net | 30,278 | 35,849 |
Customer Lists [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-Lived Intangible Assets, Gross | 68,257 | 68,257 |
Finite-Lived Intangible Assets, Accumulated Amortization | -22,076 | -18,929 |
Foreign Currency Translation | 207 | 1,270 |
Amortizing intangible assets, net | 46,388 | 50,598 |
Other Intangible Assets [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-Lived Intangible Assets, Gross | 4,434 | 4,434 |
Finite-Lived Intangible Assets, Accumulated Amortization | -4,385 | -4,341 |
Foreign Currency Translation | 803 | 805 |
Amortizing intangible assets, net | $852 | $898 |
Intangible_Assets_Amortization
Intangible Assets (Amortization Expense by Categories) (Details 1) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Dec. 28, 2012 |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense | $3,251 | $3,572 | $9,959 | $10,780 | ' |
Future Amortization Expense, Remainder of Fiscal Year | 3,207 | ' | 3,207 | ' | ' |
Future Amortization Expense, Year Two | 13,437 | ' | 13,437 | ' | ' |
Future Amortization Expense, Year Three | 12,386 | ' | 12,386 | ' | ' |
Future Amortization Expense, Year Four | 10,092 | ' | 10,092 | ' | ' |
Future Amortization Expense, Year Five | 8,969 | ' | 8,969 | ' | ' |
Future Amortization Expense, after Year Five | 29,427 | ' | 29,427 | ' | ' |
Amortizing intangible assets, net | 77,518 | ' | 77,518 | ' | 87,345 |
Cost of Sales [Member] | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense | 1,668 | 1,863 | 5,207 | 5,658 | ' |
Selling General And Administrative Expense [Member] | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense | 1,446 | 1,573 | 4,343 | 4,713 | ' |
Research and Development Expense [Member] | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense | $137 | $136 | $409 | $409 | ' |
Intangible_Assets_Indefinite_L
Intangible Assets (Indefinite Lived Intangible Assets) (Details 3) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 |
Indefinite-lived Intangible Assets [Roll Forward] | ' | ' |
Indefinite-lived intangible assets, beginning | $20,828 | ' |
Impairment Of Intangible Assets Indefinite lived Excluding Goodwill | -426 | 0 |
Indefinite-lived intangible assets, ending | 20,402 | ' |
Goodwill [Roll Forward] | ' | ' |
Goodwill | 349,035 | ' |
Goodwill Disposed | -2,771 | ' |
Goodwill, Translation Adjustments | 350 | ' |
Goodwill | 346,614 | ' |
Implantable Medical [Member] | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Goodwill | 307,201 | ' |
Goodwill Disposed | -2,771 | ' |
Goodwill, Translation Adjustments | 350 | ' |
Goodwill | 304,780 | ' |
Electrochem [Member] | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Goodwill | 41,834 | ' |
Goodwill Disposed | 0 | ' |
Goodwill, Translation Adjustments | 0 | ' |
Goodwill | 41,834 | ' |
Trademarks And Tradenames [Member] | ' | ' |
Indefinite-lived Intangible Assets [Roll Forward] | ' | ' |
Indefinite-lived intangible assets, beginning | 20,288 | ' |
Impairment Of Intangible Assets Indefinite lived Excluding Goodwill | 0 | ' |
Indefinite-lived intangible assets, ending | 20,288 | ' |
In Process Research And Development [Member] | ' | ' |
Indefinite-lived Intangible Assets [Roll Forward] | ' | ' |
Indefinite-lived intangible assets, beginning | 540 | ' |
Impairment Of Intangible Assets Indefinite lived Excluding Goodwill | -426 | ' |
Indefinite-lived intangible assets, ending | $114 | ' |
Debt_Schedule_of_LongTerm_Debt
Debt (Schedule of Long-Term Debt) (Details) (USD $) | Sep. 27, 2013 | Dec. 28, 2012 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ' | ' |
Line of Credit Facility, Amount Outstanding | $10,000 | $33,000 |
Term Loan | 200,000 | 0 |
Convertible Subordinated Debt | 0 | 197,782 |
Debt Instrument, Unamortized Discount | 0 | 5,368 |
Long-term debt | $210,000 | $225,414 |
Debt_Credit_Facility_Details_D
Debt (Credit Facility Details) (Details 1) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 27, 2013 |
Line of Credit Facility [Abstract] | ' |
Credit Facility, Amendment Date | 20-Sep-13 |
Line of Credit Facility, Maximum Borrowing Capacity | $300 |
Term Loan, Maximum Borrowing Capacity | 200 |
Credit Facility Borrowing Capacity Increase | 200 |
Letter of Credit Subfacility Maximum Borrowing Capacity | 15 |
Swingline Subfacility Maximum Borrowing Capacity | 15 |
Line of Credit Facility, Expiration Date | 20-Sep-18 |
Line Of Credit Expiration Date Extension | 20-Sep-19 |
Debt Instrument, Maturity Date | 20-Sep-19 |
DebtInstrumentCollateral | 'The Credit Facility is secured by the Company’s non-realty assets including cash, accounts receivable and inventories. |
Interest Margin Above Prime Minimum Credit Facility | 0.00% |
Interest Margin Above Prime Maximum Credit Facility | 0.75% |
Interest Margin Above LIBOR Minimum Credit Facility | 1.38% |
Interest Margin Above LIBOR Maximum Credit Facility | 2.75% |
Interest Margin Above Prime Minimum Swingline | 0.00% |
Interest Margin Above Prime Maximum Swingline | 0.75% |
Line of Credit Facility Commitment Fee Percentage Minimum | 0.18% |
Line of Credit Facility Commitment Fee Percentage Maximum | 0.25% |
Credit Facility Aggregate Restricted Activities Limit | 300 |
Credit Facility Maximum Permitted Acquisitions | 250 |
Credit Facility Maximum Other Investment Purchases | 100 |
Credit Facility Maximum Stock Repurchases and Declare Dividends | 150 |
Credit Facility Maximum Foreign Subsidiary Investment | 20 |
Leverage Ratio Required To Reset Credit Facility Restrictions | '2.75 to 1.0 |
Credit Facility Restriction Available | 100.00% |
Credit Facility Aggregate Restricted Activities Limit Remaining | 299 |
Credit Facility Maximum Oth Investment Purchases Remaining | 99 |
EBITDA Covenant Restriction | '3.0 to 1.0 |
Total Leverage Covenant Restriction | '4.5 to 1.0 |
Total Leverage Covenant Restriction 2 | '4.25 to 1.0 |
Total Leverage Covenant Restriction Effective Date | 2-Jan-16 |
DebtInstrumentCovenantCompliance | 'As of September 27, 2013, the Company was in compliance with all covenants under the Credit Facility. |
DebtWeightedAverageInterestRate | 1.81% |
DebtInstrumentUnusedBorrowingCapacityAmount | $290 |
Debt_Convertible_Notes_and_Int
Debt (Convertible Notes and Interest Rate Swap Details) (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Dec. 28, 2012 | |
Debt Instruments [Abstract] | ' | ' | ' | ' | ' |
Convertible Subordinated Debt | $0 | ' | $0 | ' | $197,782,000 |
Debt Discount Percentage at Issuance | ' | ' | ' | ' | 5.00% |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | 2.25% |
Debt Instrument, Interest Rate During Period | ' | ' | ' | ' | 8.50% |
Debt Redemption Date | ' | ' | 20-Feb-13 | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' | ' |
Interest expense | 1,515,000 | 4,401,000 | 9,948,000 | 13,175,000 | ' |
Interest Rate Swap [Member] | ' | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' | ' |
Type of Hedge | ' | ' | 'Cash flow | ' | ' |
Notional Amount | 150,000,000 | ' | 150,000,000 | ' | ' |
Start Date | ' | ' | 20-Feb-13 | ' | ' |
End Date | ' | ' | 22-Feb-16 | ' | ' |
Pay Fixed Interest Rate | 0.57% | ' | 0.57% | ' | ' |
Current Receive Variable Interest Rate | 0.18% | ' | 0.18% | ' | ' |
Annual Notional Amortizing Amount | 50,000,000 | ' | 50,000,000 | ' | ' |
Description Of Interest Rate Risk Exposure | ' | ' | 'This swap was entered into in order to hedge against potential changes in cash flows on the outstanding Credit Facility borrowings, which are also indexed to the one-month LIBOR rate. | ' | ' |
DescriptionOfInterestRateCashFlowHedgeAccountingMethod | ' | ' | 'This swap is being accounted for as a cash flow hedge. | ' | ' |
Gain (Loss) Recognized In Income Ineffective Portion | 0 | 0 | 0 | 0 | ' |
Interest expense | 100,000 | 0 | 300,000 | 0 | ' |
Interest Rate Swap [Member] | OtherLiabilitiesMember | ' | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' | ' |
Fair Value | ($400,000) | ' | ($400,000) | ' | ' |
Debt_Contractual_Interest_Deta
Debt (Contractual Interest) (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Interest Costs Incurred [Abstract] | ' | ' | ' | ' |
Contractual interest | $0 | $1,113 | $634 | $3,338 |
Discount amortization | $0 | $2,781 | $5,368 | $8,205 |
Debt_Longterm_Debt_Maturity_Sc
Debt (Long-term Debt Maturity Schedule) (Details 4) (USD $) | Sep. 27, 2013 | Dec. 28, 2012 |
In Thousands, unless otherwise specified | ||
LongTermDebtByMaturityAbstract | ' | ' |
LongTermDebtMaturitiesRepaymentsOfPrincipalRemainderOfFiscalYear | $2,500 | ' |
Long Term Debt Maturities Repayments Of Principal In Year Two | 10,000 | ' |
Long Term Debt Maturities Repayments Of Principal In Year Three | 11,250 | ' |
Long Term Debt Maturities Repayments Of Principal In Year Four | 16,250 | ' |
Long Term Debt Maturities Repayments Of Principal In Year Five | 20,000 | ' |
Long Term Debt Maturities Repayments Of Principal After Year Five | 150,000 | ' |
Long-term debt | $210,000 | $225,414 |
Debt_Deferred_Financing_Fees_D
Debt (Deferred Financing Fees) (Details 5) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 27, 2013 |
Deferred Finance Costs [Roll Forward] | ' |
Deferred Finance Costs, Net, Beginning Balance | $2,056 |
Financing Costs Deferred | 2,697 |
Financing Costs Written Off | -156 |
Amortization Of Financing Costs | -648 |
Deferred Finance Costs, Net, Ending Balance | $3,949 |
Defined_Benefit_Plans_Benefit_
Defined Benefit Plans (Benefit Obligation Roll Forward) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' | ' |
Defined Benefit Plan, Benefit Obligation Beginning | ' | ' | $3,946 | ' |
Defined Benefit Plan, Service Cost | 76 | 272 | 227 | 835 |
Defined Benefit Plan, Interest Cost | 41 | 98 | 144 | 305 |
Actuarial Gain Loss | ' | ' | -171 | ' |
Defined Benefit Plan, Benefits Paid | ' | ' | -125 | ' |
Curtailments | ' | ' | -1,581 | ' |
Foreign Currency Translation | ' | ' | 14 | ' |
Defined Benefit Plan, Benefit Obligation Ending | $2,454 | ' | $2,454 | ' |
Defined_Benefit_Plans_Plan_Ass
Defined Benefit Plans (Plan Asset Roll Forward) (Details 1) (USD $) | 9 Months Ended |
Sep. 27, 2013 | |
Defined Benefit Plan Change In Fair Value Of Plan Assets [Roll Forward] | ' |
Defined Benefit Plan, Benefits Paid | ($125,000) |
Defined Benefit Plan Settlements Plan Assets | $7,700,000 |
Defined_Benefit_Plans_Amounts_
Defined Benefit Plans (Amounts Recognized in AOCI) (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Defined Benefit Pension Plans And Defined Benefit Postretirement Plans Disclosure [Abstract] | ' | ' | ' | ' |
Net Gain Loss Arising During Period Before Tax | ' | ' | ($171) | ' |
Net Gain Loss Recognized In Net Periodic Benefit Cost Before Tax | ' | ' | -581 | ' |
Prior Service Cost Credit Arising During Period Before Tax | ' | ' | 155 | ' |
Net defined benefit plan liability adjustments | ' | ' | -597 | ' |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Tax | ' | ' | 0 | ' |
Defined benefit plan liability adjustment, net of tax | $0 | $0 | ($597) | $0 |
Defined_Benefit_Plans_Defined_
Defined Benefit Plans (Defined Benefit Plan Costs) (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ' | ' | ' | ' |
Defined Benefit Plan, Service Cost | $76 | $272 | $227 | $835 |
Defined Benefit Plan, Interest Cost | 41 | 98 | 144 | 305 |
Net Gain Loss Due To Curtailments | 0 | 0 | -1,150 | 0 |
Defined Benefit Plan, Amortization of (Gains) Losses | 0 | 30 | 0 | 92 |
Defined Benefit Plan, Expected Return on Plan Assets | 0 | -103 | 0 | -318 |
Defined Benefit Plan, Net Periodic Benefit Cost | $117 | $297 | ($779) | $914 |
Defined_Benefit_Plans_Narrativ
Defined Benefit Plans (Narrative) (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 27, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ' |
Defined Benefit Plan Settlements Plan Assets | $7.70 |
Cash And Cash Equivalents [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
DefinedBenefitPlanWeightedAverageAssetAllocations | 100.00% |
StockBased_Compensation_Expens
Stock-Based Compensation (Expense Details) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | $4,066 | $3,474 | $11,413 | $9,007 |
Employee Stock Option Member | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 1,374 | 671 | 2,784 | 2,038 |
Restricted Stock And Unit Awards [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 2,013 | 1,523 | 4,958 | 4,559 |
Retirement Plan [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 679 | 1,280 | 3,671 | 2,410 |
Cost of Sales [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 1,117 | 1,119 | 3,246 | 2,486 |
Selling General And Administrative Expense [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 1,598 | 2,006 | 6,052 | 5,732 |
Research and Development Expense [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 215 | 349 | 979 | 789 |
Other Operating Expenses, net [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | $1,136 | $0 | $1,136 | $0 |
StockBased_Compensation_Fair_V
Stock-Based Compensation (Fair Value Assumptions) (Details 1) (USD $) | 9 Months Ended | |
Sep. 27, 2013 | Sep. 28, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ' | ' |
Weighted Average Grant Date Fair Value | $8.38 | $8.20 |
Risk Free Interest Rate | 0.73% | 0.83% |
Expected Volatility Rate | 39.00% | 40.00% |
Expected Term (in years) | '5 years | '5 years |
Expected Dividend Rate | 0.00% | 0.00% |
StockBased_Compensation_Stock_
Stock-Based Compensation (Stock Option Activity) (Details 2) (USD $) | 9 Months Ended |
In Millions, except Share data, unless otherwise specified | Sep. 27, 2013 |
Stock Options Time Based [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' |
Stock Options Outstanding, Beginning | 1,775,847 |
Option Grants in Period, Gross | 372,676 |
Option Exercises in Period | -215,200 |
Option Forfeitures and Expirations in Period | -69,467 |
Stock Options Outstanding, Ending | 1,863,856 |
Options Exercisable, Number | 1,287,345 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ' |
Options Outstanding, Weighted Average Exercise Price, Beginning | $23.17 |
Option Grants in Period, Weighted Average Exercise Price | $23.33 |
Option Exercises in Period, Weighted Average Exercise Price | $22.87 |
Option Forfeitures and Expirations in Period, Weighted Average Exercise Price | $26.20 |
Options Outstanding, Weighted Average Exercise Price, Ending | $23.13 |
Options Exercisable, Weighted Average Exercise Price | $23.17 |
Options Outstanding, Weighted Average Remaining Contractual Term | '6 years 2 months |
Options Exercisable, Weighted Average Remaining Contractual Term | '5 years 0 months |
Options Outstanding, Intrinsic Value | $19.90 |
Options Exercisable, Intrinsic Value | 13.7 |
Stock Options Performance Based [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' |
Stock Options Outstanding, Beginning | 284,925 |
Option Grants in Period, Gross | 0 |
Option Exercises in Period | -55,571 |
Option Forfeitures and Expirations in Period | 0 |
Stock Options Outstanding, Ending | 229,354 |
Options Exercisable, Number | 229,354 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ' |
Options Outstanding, Weighted Average Exercise Price, Beginning | $23.26 |
Option Grants in Period, Weighted Average Exercise Price | $0 |
Option Exercises in Period, Weighted Average Exercise Price | $23.21 |
Option Forfeitures and Expirations in Period, Weighted Average Exercise Price | $0 |
Options Outstanding, Weighted Average Exercise Price, Ending | $23.27 |
Options Exercisable, Weighted Average Exercise Price | $23.27 |
Options Outstanding, Weighted Average Remaining Contractual Term | '3 years 7 months |
Options Exercisable, Weighted Average Remaining Contractual Term | '3 years 7 months |
Options Outstanding, Intrinsic Value | 2.4 |
Options Exercisable, Intrinsic Value | $2.40 |
StockBased_Compensation_Stock_1
Stock-Based Compensation (Stock Award Activity) (Details 3) (USD $) | 9 Months Ended |
Sep. 27, 2013 | |
Restricted Stock And Restricted Stock Units Time Based [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ' |
Nonvested Restricted Stock Units and Awards, Beginning | 80,269 |
Restricted Stock Units and Awards Granted | 63,022 |
Restricted Stock Units and Awards Vested | -30,592 |
Restricted Stock Units and Awards Forfeited | -4,463 |
Nonvested Restricted Stock Units and Awards, Ending | 108,236 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ' |
Restricted Stock Units and Awards, Weighted Average Grant Date Fair Value, Beginning | $23.48 |
Restricted Stock Units and Awards Granted, Weighted Average Fair Value | $25.85 |
Restricted Stock Units and Awards Vested, Weighted Average Fair Value | $22.46 |
Restricted Stock Units and Awards Forfeited, Weighted Average Fair Value | $21.65 |
Restricted Stock Units and Awards, Weighted Average Grant Date Fair Value, Ending | $25.23 |
Restricted Stock And Restricted Stock Units Performance Based [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ' |
Nonvested Restricted Stock Units and Awards, Beginning | 782,446 |
Restricted Stock Units and Awards Granted | 318,169 |
Restricted Stock Units and Awards Vested | -49,139 |
Restricted Stock Units and Awards Forfeited | -240,312 |
Nonvested Restricted Stock Units and Awards, Ending | 811,164 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ' |
Restricted Stock Units and Awards, Weighted Average Grant Date Fair Value, Beginning | $16.02 |
Restricted Stock Units and Awards Granted, Weighted Average Fair Value | $15.86 |
Restricted Stock Units and Awards Vested, Weighted Average Fair Value | $14.68 |
Restricted Stock Units and Awards Forfeited, Weighted Average Fair Value | $14.94 |
Restricted Stock Units and Awards, Weighted Average Grant Date Fair Value, Ending | $16.36 |
Other_Operating_Expense_Net_Ex
Other Operating Expense Net (Expense Categories) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Other Operating Income Expense Detail [Line Items] | ' | ' | ' | ' |
Other operating (income) expense, net | $3,500 | $15,313 | $10,560 | $23,981 |
Operating Unit Realignment [Member] | ' | ' | ' | ' |
Other Operating Income Expense Detail [Line Items] | ' | ' | ' | ' |
Other operating (income) expense, net | 2,214 | 0 | 3,066 | 0 |
Orthopaedic Facility Optimization [Member] | ' | ' | ' | ' |
Other Operating Income Expense Detail [Line Items] | ' | ' | ' | ' |
Other operating (income) expense, net | 1,420 | 12,452 | 6,723 | 14,774 |
Medical Device Facility Optimization [Member] | ' | ' | ' | ' |
Other Operating Income Expense Detail [Line Items] | ' | ' | ' | ' |
Other operating (income) expense, net | 52 | 388 | 282 | 1,282 |
ERP System Upgrade [Member] | ' | ' | ' | ' |
Other Operating Income Expense Detail [Line Items] | ' | ' | ' | ' |
Other operating (income) expense, net | -121 | 1,938 | 264 | 4,745 |
Acquisition And Integration Costs [Member] | ' | ' | ' | ' |
Other Operating Income Expense Detail [Line Items] | ' | ' | ' | ' |
Other operating (income) expense, net | -522 | 232 | -340 | 1,287 |
Asset Dispositions Severance And Other [Member] | ' | ' | ' | ' |
Other Operating Income Expense Detail [Line Items] | ' | ' | ' | ' |
Other operating (income) expense, net | $457 | $303 | $565 | $1,893 |
Other_Operating_Expense_Net_Re
Other Operating Expense Net (Restructuring Costs and Reserve Details) (Details) (USD $) | 9 Months Ended | 3 Months Ended | |||||||||||||||||||||||||||||||||||
Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 28, 2012 | |
Operating Unit Realignment [Member] | Operating Unit Realignment [Member] | Operating Unit Realignment [Member] | Operating Unit Realignment [Member] | Operating Unit Realignment [Member] | Operating Unit Realignment [Member] | Operating Unit Realignment [Member] | Orthopaedic Facility Optimization [Member] | Orthopaedic Facility Optimization [Member] | Orthopaedic Facility Optimization [Member] | Orthopaedic Facility Optimization [Member] | Orthopaedic Facility Optimization [Member] | Orthopaedic Facility Optimization [Member] | Orthopaedic Facility Optimization [Member] | Orthopaedic Facility Optimization [Member] | Orthopaedic Facility Optimization [Member] | Orthopaedic Facility Optimization [Member] | Orthopaedic Facility Optimization [Member] | Orthopaedic Facility Optimization [Member] | Medical Device Facility Optimization [Member] | Medical Device Facility Optimization [Member] | Medical Device Facility Optimization [Member] | Medical Device Facility Optimization [Member] | Medical Device Facility Optimization [Member] | Medical Device Facility Optimization [Member] | Medical Device Facility Optimization [Member] | Medical Device Facility Optimization [Member] | ERP System Upgrade [Member] | ERP System Upgrade [Member] | ERP System Upgrade [Member] | ERP System Upgrade [Member] | ERP System Upgrade [Member] | ERP System Upgrade [Member] | ERP System Upgrade [Member] | Corporate Headquarters Relocation [Member] | |||
Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Severance And Retention [Member] | Accelerated Depreciation And Asset Write Offs [Member] | Other Restructuring [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Other Restructuring [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | ||||||||
Severance And Retention [Member] | Other Restructuring [Member] | Severance And Retention [Member] | Other Restructuring [Member] | Severance And Retention [Member] | Accelerated Depreciation And Asset Write Offs [Member] | Other Restructuring [Member] | Severance And Retention [Member] | Accelerated Depreciation And Asset Write Offs [Member] | Other Restructuring [Member] | Production Inefficiencies, Moving And Revalidation [Member] | Personnel [Member] | Production Inefficiencies, Moving And Revalidation [Member] | Personnel [Member] | Training And Consulting Costs [Member] | Accelerated Depreciation And Asset Write Offs [Member] | Training And Consulting Costs [Member] | Accelerated Depreciation And Asset Write Offs [Member] | ||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and Related Activities, Description | ' | ' | 'In June 2013, the Company initiated a plan to realign its operating structure in order to optimize its continued focus on profitable growth. As part of this initiative, the sales and marketing and operations groups of its Implantable Medical and Electrochem segments were combined into one sales and marketing and one operations group serving the entire Company. | ' | ' | ' | ' | ' | ' | 'In 2010, the Company began updating its Indianapolis, IN facility to streamline operations, consolidate two buildings, increase capacity, further expand capabilities and reduce dependence on outside suppliers. This initiative was completed in 2011. In 2011, the Company began construction on an orthopaedic manufacturing facility in Fort Wayne, IN and transferred the manufacturing operations being performed at its Columbia City, IN facility into this new facility. This initiative was completed in 2012. During 2012, the Company transferred manufacturing and development operations performed at its facilities in Orvin and Corgemont, Switzerland into existing facilities in Fort Wayne, IN and Tijuana, Mexico. In connection with this consolidation, in 2012, the Company entered into an agreement to sell assets related to certain non-core Swiss orthopaedic product lines to an independent third party including inventory, machinery, equipment, customer lists and technology related to these product lines. As these product lines were considered a business, goodwill was allocated to the transaction (See Note 5). As these product lines did not have cash flows that were clearly distinguishable, both operationally and for financial reporting purposes, from the rest of the Company, they were not considered discontinued operations. This transaction closed in the first quarter of 2013 and no additional loss on sale was recognized. During 2013, the Company received payments totaling $3.2 million in connection with this transaction and the third party assumed $2.4 million of severance liabilities. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Near the end of 2011, the Company initiated plans to upgrade and expand its manufacturing infrastructure in order to support its medical device strategy. This includes the transfer of certain product lines to create additional capacity for the manufacture of medical devices, expansion of two existing facilities, as well as the purchase of equipment to enable the production of medical devices. These initiatives are expected to be completed over the next year. | ' | ' | ' | ' | ' | ' | ' | 'In 2011, the Company initiated plans to upgrade its existing global ERP system. This initiative is expected to be completed over the next six months. | ' | ' | ' | ' | ' | ' | ' |
Restructuring Initiation Date | ' | ' | 'June 2013 | ' | ' | ' | ' | ' | ' | '2010 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2011 | ' | ' | ' | ' | ' | ' | ' | '2011 | ' | ' | ' | ' | ' | ' | ' |
Restructuring And Related Activities Expected Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $25,000,000 | ' | ' | ' | $30,000,000 | ' | ' | ' | ' | ' | $15,000,000 | ' | ' | $20,000,000 | ' | ' | ' | $4,500,000 | ' | ' | $5,000,000 | ' | ' | ' |
Restructuring And Related Activities Capital Expenditures Incurred To Date | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,400,000 | ' | ' | ' | ' | ' | ' | ' | 4,300,000 | ' | ' | ' | ' | ' | ' | ' |
Restructuring and Related Cost, Expected Cost | ' | ' | ' | 6,200,000 | 5,000,000 | 1,200,000 | 7,000,000 | 5,200,000 | 1,800,000 | ' | ' | ' | ' | 40,000,000 | 11,000,000 | 15,000,000 | 14,000,000 | 41,000,000 | 11,000,000 | 15,000,000 | 15,000,000 | ' | 1,000,000 | 2,000,000 | 500,000 | 1,000,000 | 3,000,000 | 1,000,000 | 1,500,000 | ' | 6,000,000 | 4,000,000 | 2,000,000 | 7,000,000 | 4,500,000 | 2,500,000 | ' |
Restructuring and Related Cost, Cost Incurred to Date | ' | ' | 3,100,000 | ' | ' | ' | ' | ' | ' | 39,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,800,000 | ' | ' | ' | ' | ' | ' | ' | 5,300,000 | ' | ' | ' | ' | ' | ' | 1,200,000 |
Proceeds from sale of orthopaedic product lines | 3,228,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liabilities Assumed By Third Parties | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($2,398,000) | ($2,398,000) | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other_Operating_Expense_Net_Ch
Other Operating Expense Net Changes in Accrued Liabilities (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 27, 2013 |
Operating Unit Realignment [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Restructuring Reserve, Beginning Balance | $0 |
Restructuring charges | 3,066 |
Restructuring Reserve, Settled without Cash | -1,136 |
Cash payments | -854 |
Restructuring Reserve, Ending Balance | 1,076 |
Orthopaedic Facility Optimization [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Restructuring Reserve, Beginning Balance | 9,567 |
Restructuring charges | 6,723 |
Restructuring Reserve, Settled without Cash | -192 |
Liability assumed in sale of prouct lines | -2,398 |
Cash payments | -12,600 |
Restructuring Reserve, Ending Balance | 1,100 |
Medical Device Facility Optimization [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Restructuring Reserve, Beginning Balance | 0 |
Restructuring charges | 282 |
Restructuring Reserve, Settled without Cash | 0 |
Cash payments | -282 |
Restructuring Reserve, Ending Balance | 0 |
ERP System Upgrade [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Restructuring Reserve, Beginning Balance | 169 |
Restructuring charges | 264 |
Restructuring Reserve, Settled without Cash | 0 |
Cash payments | -433 |
Restructuring Reserve, Ending Balance | 0 |
Severance And Retention [Member] | Operating Unit Realignment [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Restructuring Reserve, Beginning Balance | 0 |
Restructuring charges | 2,153 |
Restructuring Reserve, Settled without Cash | -1,136 |
Cash payments | -391 |
Restructuring Reserve, Ending Balance | 626 |
Severance And Retention [Member] | Orthopaedic Facility Optimization [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Restructuring Reserve, Beginning Balance | 9,567 |
Restructuring charges | 544 |
Restructuring Reserve, Settled without Cash | 0 |
Liability assumed in sale of prouct lines | -2,398 |
Cash payments | -6,978 |
Restructuring Reserve, Ending Balance | 735 |
Production Inefficiencies, Moving And Revalidation [Member] | Medical Device Facility Optimization [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Restructuring Reserve, Beginning Balance | 0 |
Restructuring charges | 19 |
Restructuring Reserve, Settled without Cash | 0 |
Cash payments | -19 |
Restructuring Reserve, Ending Balance | 0 |
Training And Consulting Costs [Member] | ERP System Upgrade [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Restructuring Reserve, Beginning Balance | 169 |
Restructuring charges | 264 |
Restructuring Reserve, Settled without Cash | 0 |
Cash payments | -433 |
Restructuring Reserve, Ending Balance | 0 |
Accelerated Depreciation And Asset Write Offs [Member] | Orthopaedic Facility Optimization [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Restructuring Reserve, Beginning Balance | 0 |
Restructuring charges | 192 |
Restructuring Reserve, Settled without Cash | -192 |
Liability assumed in sale of prouct lines | 0 |
Cash payments | 0 |
Restructuring Reserve, Ending Balance | 0 |
Accelerated Depreciation And Asset Write Offs [Member] | ERP System Upgrade [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Restructuring Reserve, Beginning Balance | 0 |
Restructuring charges | 0 |
Restructuring Reserve, Settled without Cash | 0 |
Cash payments | 0 |
Restructuring Reserve, Ending Balance | 0 |
Personnel [Member] | Medical Device Facility Optimization [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Restructuring Reserve, Beginning Balance | 0 |
Restructuring charges | 2 |
Restructuring Reserve, Settled without Cash | 0 |
Cash payments | -2 |
Restructuring Reserve, Ending Balance | 0 |
Other Restructuring [Member] | Operating Unit Realignment [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Restructuring Reserve, Beginning Balance | 0 |
Restructuring charges | 913 |
Restructuring Reserve, Settled without Cash | 0 |
Cash payments | -463 |
Restructuring Reserve, Ending Balance | 450 |
Other Restructuring [Member] | Orthopaedic Facility Optimization [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Restructuring Reserve, Beginning Balance | 0 |
Restructuring charges | 5,987 |
Restructuring Reserve, Settled without Cash | 0 |
Liability assumed in sale of prouct lines | 0 |
Cash payments | -5,622 |
Restructuring Reserve, Ending Balance | 365 |
Other Restructuring [Member] | Medical Device Facility Optimization [Member] | ' |
Restructuring Reserve [Roll Forward] | ' |
Restructuring Reserve, Beginning Balance | 0 |
Restructuring charges | 261 |
Restructuring Reserve, Settled without Cash | 0 |
Cash payments | -261 |
Restructuring Reserve, Ending Balance | $0 |
Income_Taxes_Narratives_Detail
Income Taxes (Narratives) (Details) (USD $) | 3 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 27, 2013 |
Income Tax Disclosure [Abstract] | ' | ' |
Unrecognized Tax Benefits | $1.40 | $1.40 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 1.2 | 1.2 |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | 0.1 | 0.1 |
Convertible Debt Deferred Tax Reclassified To Taxes Payable | 30.4 | 30.4 |
Tax Payment Related To Convertible Note Deferred Tax | $8 | $19.60 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Narratives) (Details) (USD $) | 9 Months Ended |
Sep. 27, 2013 | |
Loss Contingencies [Line Items] | ' |
Standard Product Warranty Description | 'The Company generally warrants that its products will meet customer specifications and will be free from defects in materials and workmanship. |
Significant Purchase Commitment Description | 'Contractual obligations are defined as agreements that are enforceable and legally binding on the Company and that specify all significant terms, including: fixed or minimum obligations; fixed or minimum price provisions; and the approximate timing of the transaction. The Company’s contractual obligations are normally fulfilled within short time horizons. The Company also enters into blanket orders with vendors that have preferred pricing and terms, however these orders are normally cancelable without penalty. |
Significant Purchase Commitment Remaining Minimum Amount Committed | $24,100,000 |
Description of Types of Foreign Currency Cash Flow Hedging Instruments Used | 'The Company enters into forward contracts to purchase Mexican pesos in order to hedge the risk of peso-denominated payments associated with the operations at its Tijuana, Mexico facility. |
Maximum Aggregate Loss Under Medical Plan Stop Loss Insurance Per Employee | 225,000 |
Accrued Self Insured Medical Plan Liability | $1,900,000 |
Electrochem Litigation One [Member] | ' |
Loss Contingencies [Line Items] | ' |
Loss Contingency Lawsuit Filing Date | '2012 |
Loss Contingency Domicile Of Litigation | '113th Judicial District Court of Harris County, Texas |
Loss Contingency Allegations | 'The complaint seeks damages alleging marketing defects and failure to warn, negligence and gross negligence relating to a product Electrochem manufactured and sold to a customer, one of the other named defendants, which, in turn, incorporated the Electrochem product into its own product which it sold to its customer, another named defendant. |
Loss Contingency Opinion Of Counsel | 'Given the early stages of this action, the amount of loss or range of possible loss cannot be reasonably estimated at this time |
Commitments_and_Contingencies_2
Commitments and Contingencies (Product Warranty Rollforward) (Details 1) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 27, 2013 |
Movement in Standard Product Warranty Accrual [Roll Forward] | ' |
Standard Product Warranty Accrual, Beginning Balance | $2,626 |
Standard Product Warranty Accrual, Warranties Issued | 1,372 |
Standard Product Warranty Accrual, Payments | -123 |
Standard Product Warranty Accrual, Ending Balance | $3,875 |
Commitments_and_Contingencies_3
Commitments and Contingencies (Future Lease Payments) (Details 2) (USD $) | Sep. 27, 2013 |
In Thousands, unless otherwise specified | |
Operating Leases, Future Minimum Payments Due [Abstract] | ' |
OperatingLeasesFutureMinimumPaymentsRemainderOfFiscalYear | $1,400 |
Operating Leases, Future Minimum Payments, Due in Two Years | 5,123 |
Operating Leases, Future Minimum Payments, Due in Three Years | 4,522 |
Operating Leases, Future Minimum Payments, Due in Four Years | 3,826 |
Operating Leases, Future Minimum Payments, Due in Five Years | 1,424 |
Operating Leases, Future Minimum Payments, Due Thereafter | 1,933 |
Total estimated operating lease expense | $18,228 |
Commitments_and_Contingencies_4
Commitments and Contingencies (FX Contract Details) (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Foreign Currency Cash Flow Hedges [Abstract] | ' | ' | ' | ' |
Increase (reduction) in Cost of Sales | ($346) | $11 | ($908) | ($8) |
Ineffective portion of change in fair value | 0 | 0 | 0 | 0 |
Fx Contract 1 [Member] | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' |
Derivative, Type of Instrument | ' | ' | 'FX Contract | ' |
Notional Amount of Foreign Currency Cash Flow Hedge Derivatives | 1,500 | ' | 1,500 | ' |
Start Date | ' | ' | 1-Jan-13 | ' |
End Date | ' | ' | 31-Dec-13 | ' |
$/Peso | 0.0727 | ' | 0.0727 | ' |
Fair Value | 59 | ' | 59 | ' |
Balance Sheet Location | ' | ' | 'Current Assets | ' |
Fx Contract 2 [Member] | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' |
Derivative, Type of Instrument | ' | ' | 'FX Contract | ' |
Notional Amount of Foreign Currency Cash Flow Hedge Derivatives | 1,500 | ' | 1,500 | ' |
Start Date | ' | ' | 1-Jan-13 | ' |
End Date | ' | ' | 31-Dec-13 | ' |
$/Peso | 0.0693 | ' | 0.0693 | ' |
Fair Value | 138 | ' | 138 | ' |
Balance Sheet Location | ' | ' | 'Current Assets | ' |
Fx Contract 3 [Member] | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' |
Derivative, Type of Instrument | ' | ' | 'FX Contract | ' |
Notional Amount of Foreign Currency Cash Flow Hedge Derivatives | 7,700 | ' | 7,700 | ' |
Start Date | ' | ' | 1-Jan-14 | ' |
End Date | ' | ' | 31-Dec-14 | ' |
$/Peso | 0.0767 | ' | 0.0767 | ' |
Fair Value | ($239) | ' | ($239) | ' |
Balance Sheet Location | ' | ' | 'Current Assets/ Other Long-Term Liabilities | ' |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Anitdilutive Securities Excluded From Earnings Per Share [Abstract] | ' | ' | ' | ' |
Time-vested stock options, restricted stock and restricted stock units | 43,000 | 2,223,000 | 59,000 | 1,237,000 |
Performance-vested stock options and restricted stock units | 27,000 | 781,000 | 26,000 | 692,000 |
Convertible Note Shares Included In Diluted Share Calculation | 0 | 0 | 0 | 0 |
EARNINGS PER SHARE (EPS) [Abstract] | ' | ' | ' | ' |
Basic EPS | $0.46 | ($0.32) | $1.11 | $0.03 |
Diluted EPS | $0.44 | ($0.32) | $1.06 | $0.03 |
Net Income (Loss) Available to Common Stockholders, Diluted [Abstract] | ' | ' | ' | ' |
Net income (loss) | $11,071 | ($7,561) | $26,486 | $757 |
Net Income (Loss) Available to Common Stockholders, Diluted | $11,071 | ($7,561) | $26,486 | $757 |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ' | ' | ' | ' |
Basic | 24,047,000 | 23,646,000 | 23,904,000 | 23,559,000 |
Effect of dilutive securities convertible subordinated notes | 0 | 0 | 0 | 0 |
Effect of dilutive securities stock optons, restricted stock and restricted stock units | 1,141,000 | 0 | 1,113,000 | 365,000 |
Denominator for diluted EPS | 25,188,000 | 23,646,000 | 25,017,000 | 23,924,000 |
Comprehensive_Income_Details
Comprehensive Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax [Abstract] | ' | ' | ' | ' |
Cash Flow Hedges, Beginning | $178 | ' | $120 | ' |
Unrealized gain (loss) on cash flow hedges | -419 | ' | 2 | ' |
Realized Gain Loss On Foreign Currency Contracts Before Tax | -346 | ' | -908 | ' |
Realized Gain Loss On Interest Rate Swaps Before Tax | 145 | ' | 344 | ' |
Cash Flow Hedges, End | -442 | ' | -442 | ' |
Other Comprehensive Income (Loss), Tax [Abstract] | ' | ' | ' | ' |
Tax, Beginning | 338 | ' | 358 | ' |
Unrealized gain (loss) on cash flow hedges | 147 | ' | -1 | ' |
Realized gain loss on foreign currency contracts - tax | 121 | ' | 318 | ' |
Realized gain loss on interest rate swap hedges - tax | -51 | ' | -120 | ' |
Net defined benefit plan liability adjustments | ' | ' | 0 | ' |
Net foreign currency translation gain (loss) | 0 | ' | 0 | ' |
Tax, End | 555 | ' | 555 | ' |
Other Comprehensive Income Defined Benefit Plans Adjustment Before Tax Period Increase Decrease Abstract | ' | ' | ' | ' |
Defined Benefit Plan Liability, Beginning | -365 | ' | -962 | ' |
Net defined benefit plan liability adjustments | ' | ' | 597 | ' |
Defined Benefit Plan Liability, Ending | -365 | ' | -365 | ' |
Other Comprehensive Income Foreign Currency Transaction And Translation Adjustment Before Tax Period Increase Decrease Abstract | ' | ' | ' | ' |
Foreign Currency Translation Adjustment, Beginning | 10,999 | ' | 13,431 | ' |
Net foreign currency translation gain (loss) | 3,579 | ' | 1,147 | ' |
Foreign Currency Translation Adjustment, End | 14,578 | ' | 14,578 | ' |
Other Comprehensive Income Loss Before Tax Period Increase Decrease Abstract | ' | ' | ' | ' |
Total Pre-Tax Amount, Beginning | 10,812 | ' | 12,589 | ' |
Unrealized gain (loss) on cash flow hedges | -419 | ' | 2 | ' |
Realized gain loss on foreign currency hedges - before tax | -346 | ' | -908 | ' |
Realized gain loss on interest rate swaps - before tax | 145 | ' | 344 | ' |
Net defined benefit plan liability adjustments | ' | ' | 597 | ' |
Net foreign currency translation gain (loss) | 3,579 | ' | 1,147 | ' |
Total Pre-Tax Amount, End | 13,771 | ' | 13,771 | ' |
Other Comprehensive Income Loss Net Of Tax Period Increase Decrease Abstract | ' | ' | ' | ' |
Net-of-Tax Amount, Beginning | 11,150 | ' | 12,947 | ' |
Unrealized gain (loss) on cash flow hedges, net of tax | -272 | ' | 1 | ' |
Realized gain loss on foreign currency hedges, net of tax | -225 | ' | -590 | ' |
Realized gain loss on interest rate swap hedges, net of tax | 94 | ' | 224 | ' |
Net defined benefit plan liability adjustments | 597 | ' | 597 | ' |
Foreign currency translation gain (loss) | 3,579 | 1,005 | 1,147 | -522 |
Net-of-Tax Amount, End | $14,326 | ' | $14,326 | ' |
Fair_Value_Measurement_Recurri
Fair Value Measurement (Recurring Measurements) (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 27, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ' |
Description of Reclassification of Foreign Currency Cash Flow Hedge Gain (Loss) | 'The fair value of the Company’s foreign currency contracts will be realized as Cost of Sales as the inventory, which the contracts are hedging the cash flows to produce, is sold |
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months | $0.04 |
Fair_Value_Measurement_Conting
Fair Value Measurement (Contingent Consideration Roll Forward) (Details 1) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 27, 2013 |
Contingent Consideration Liability [Roll Forward] | ' |
Accrued Contingent Consideration, Beginning Balance | $1,530 |
Contingent Consideration Recognized In Period | 0 |
Change in Amount of Contingent Consideration Liability | -430 |
Contingent Payment Related To Business Combination | 0 |
Accrued Contingent Consideration, Ending Balance | $1,100 |
Fair_Value_Measurement_Conting1
Fair Value Measurement (Contingent Consideration Assumptions) (Details 2) (USD $) | Sep. 27, 2013 |
In Thousands, unless otherwise specified | |
Financial Milestones [Member] | ' |
Fair Value Assumptions [Line Items] | ' |
Contingent Consideration Fair Value | $470 |
Risk Adjusted Discount Rate For Contingent Consideration | 12.00% |
Contingent Consideration Liability Projected Year Of Payment | '2014 |
Contingent Consideration Liability Probability Weighted Payment Amount | 500 |
Development Milestones [Member] | ' |
Fair Value Assumptions [Line Items] | ' |
Contingent Consideration Fair Value | 630 |
Risk Adjusted Discount Rate For Contingent Consideration | 20.00% |
Contingent Consideration Liability Projected Year Of Payment | '2016 |
Contingent Consideration Liability Probability Weighted Payment Amount | $1,000 |
Fair_Value_Measurement_Recurri1
Fair Value Measurement (Recurring Measurement Table) (Details 3) (USD $) | 9 Months Ended | ||
Sep. 27, 2013 | Sep. 28, 2012 | Dec. 28, 2012 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Foreign Currency Contract, Asset, Fair Value Disclosure | $37,000 | ' | ' |
Foreign Currency Contract Liability Fair Value Disclosure | 79,000 | ' | ' |
InterestRateDerivativeLiabilitiesAtFairValue | 400,000 | ' | ' |
Accrued Contingent Consideration | 1,100,000 | ' | 1,530,000 |
Maximum Potential Payment Due Upon Achievement Of Certain Milestones | 2,000,000 | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' | ' |
Debt Instrument Fair Value | 210,000,000 | ' | ' |
Long Lived Assets Impairment Loss | 0 | 300,000 | ' |
Impairment Of Intangible Assets Indefinite lived Excluding Goodwill | -426,000 | 0 | ' |
GoodwillImpairmentLoss | 0 | 0 | ' |
Cost And Equity Method Investments Aggregate Carrying Amount | 10,600,000 | ' | 9,100,000 |
Cost And Equity Method Investments Realized Gains Losses Net | 600,000 | 0 | ' |
Fair Value, Inputs, Level 1 [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | ' | ' |
Foreign Currency Contract Liability Fair Value Disclosure | 0 | ' | ' |
InterestRateDerivativeLiabilitiesAtFairValue | 0 | ' | ' |
Accrued Contingent Consideration | 0 | ' | ' |
Fair Value, Inputs, Level 2 [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Foreign Currency Contract, Asset, Fair Value Disclosure | 37,000 | ' | ' |
Foreign Currency Contract Liability Fair Value Disclosure | 79,000 | ' | ' |
InterestRateDerivativeLiabilitiesAtFairValue | 400,000 | ' | ' |
Accrued Contingent Consideration | 0 | ' | ' |
Fair Value, Inputs, Level 3 [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | ' | ' |
Foreign Currency Contract Liability Fair Value Disclosure | 0 | ' | ' |
InterestRateDerivativeLiabilitiesAtFairValue | 0 | ' | ' |
Accrued Contingent Consideration | $1,100,000 | ' | ' |
Recovered_Sheet1
Business Segment, Geographic And Concentration Risk Information (Segment Revenue by Categories) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Sales Revenue, Net | $167,730 | $161,340 | $487,326 | $486,991 |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' |
Revenue Major Customer Percent | 48.00% | 47.00% | 49.00% | 44.00% |
Customera [Member] | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' |
Revenue Major Customer Percent | 21.00% | 19.00% | 20.00% | 19.00% |
Customer B [Member] | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' |
Revenue Major Customer Percent | 16.00% | 18.00% | 16.00% | 15.00% |
Customer C [Member] | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' |
Revenue Major Customer Percent | 11.00% | 10.00% | 13.00% | 10.00% |
United States [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Sales Revenue, Net | 81,736 | 82,522 | 242,304 | 249,306 |
Puerto Rico [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Sales Revenue, Net | 31,936 | 31,320 | 87,592 | 81,541 |
Belgium [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Sales Revenue, Net | 14,947 | 11,346 | 49,895 | 41,737 |
Rest Of World [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Sales Revenue, Net | 39,111 | 36,152 | 107,535 | 114,407 |
Implantable Medical [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Sales Revenue, Net | 129,338 | 121,093 | 369,356 | 364,276 |
Implantable Medical [Member] | Cardiac Neuromodulation [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Sales Revenue, Net | 86,980 | 80,246 | 242,161 | 235,406 |
Implantable Medical [Member] | Orthopaedic [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Sales Revenue, Net | 30,079 | 27,173 | 92,043 | 91,079 |
Implantable Medical [Member] | Vascular [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Sales Revenue, Net | 12,279 | 13,674 | 35,152 | 37,791 |
Electrochem [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Sales Revenue, Net | 38,392 | 40,247 | 117,970 | 122,715 |
Electrochem [Member] | Portable Medical [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Sales Revenue, Net | 19,320 | 20,219 | 60,376 | 59,346 |
Electrochem [Member] | Energy [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Sales Revenue, Net | 13,625 | 13,054 | 39,025 | 41,024 |
Electrochem [Member] | Other Electrochem [Member] | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Sales Revenue, Net | $5,447 | $6,974 | $18,569 | $22,345 |
Business_Segment_Geographic_An1
Business Segment, Geographic And Concentration Risk Information (Segment Income From Operations) (Details 1) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total segment income from operations | $21,290 | $8,094 | $62,917 | $40,272 |
Unallocated Operating Expenses | -4,288 | -5,967 | -14,441 | -15,856 |
Operating income as reported | 17,002 | 2,127 | 48,476 | 24,416 |
Unallocated Other Expense | -1,458 | -4,299 | -10,855 | -13,599 |
Income before provision for income taxes | 15,544 | -2,172 | 37,621 | 10,817 |
Implantable Medical [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total segment income from operations | 19,074 | 2,744 | 50,057 | 24,252 |
Electrochem [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total segment income from operations | $2,216 | $5,350 | $12,860 | $16,020 |
Business_Segment_Geographic_An2
Business Segment, Geographic And Concentration Risk Information (Long-lived Assets by Category) (Details 2) (USD $) | Sep. 27, 2013 | Dec. 28, 2012 |
In Thousands, unless otherwise specified | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Property, plant and equipment, net | $147,431 | $150,893 |
United States [Member] | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Property, plant and equipment, net | 117,393 | 123,104 |
Rest Of World [Member] | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Property, plant and equipment, net | $30,038 | $27,789 |