Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 02, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | LMAT | ||
Entity Registrant Name | LEMAITRE VASCULAR INC | ||
Entity Central Index Key | 1,158,895 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 18,339,704 | ||
Entity Public Float | $ 130,107,007 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 27,451 | $ 18,692 |
Accounts receivable, net of allowances of $243 at December 31, 2015, and $242 at December 31, 2014 | 11,971 | 10,803 |
Inventory | 15,205 | 16,714 |
Prepaid expenses and other current assets | 3,557 | 2,379 |
Total current assets | 58,184 | 48,588 |
Property and equipment, net | 7,022 | 6,878 |
Goodwill | 17,789 | 17,281 |
Other intangibles, net | 6,336 | 7,157 |
Deferred tax assets | 1,205 | 1,418 |
Other assets | 168 | 170 |
Total assets | 90,704 | 81,492 |
Current liabilities: | ||
Accounts payable | 1,366 | 1,127 |
Accrued expenses | 8,837 | 7,479 |
Acquisition-related obligations | 165 | 1,435 |
Total current liabilities | 10,368 | 10,041 |
Deferred tax liabilities | 1,678 | 2,919 |
Other long-term liabilities | 774 | 325 |
Total liabilities | $ 12,820 | $ 13,285 |
Commitments and contingencies (Note 7) | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value; authorized 3,000,000 shares; none outstanding | ||
Common stock, $0.01 par value; authorized 37,000,000 shares; issued 19,748,321 shares at December 31, 2015, and 18,778,436 shares at December 31, 2014 | $ 197 | $ 188 |
Additional paid-in capital | 82,094 | 75,389 |
Retained earnings (accumulated deficit) | 8,161 | 3,248 |
Accumulated other comprehensive loss | (4,049) | (2,365) |
Treasury stock, at cost; 1,431,139 shares at December 31, 2015, and 1,407,211 shares at December 31, 2014 | (8,519) | (8,253) |
Total stockholders' equity | 77,884 | 68,207 |
Total liabilities and stockholders' equity | $ 90,704 | $ 81,492 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 243 | $ 242 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 3,000,000 | 3,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 37,000,000 | 37,000,000 |
Common stock, shares issued | 19,748,321 | 18,778,436 |
Treasury stock, at cost | 1,431,139 | 1,407,211 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Net sales | $ 78,352 | $ 71,097 | $ 64,549 |
Cost of sales | 24,186 | 22,666 | 19,434 |
Gross profit | 54,166 | 48,431 | 45,115 |
Sales and marketing | 22,780 | 22,087 | 22,143 |
General and administrative | 14,010 | 13,889 | 12,576 |
Research and development | 5,479 | 4,671 | 5,243 |
Medical device excise tax | 744 | 689 | 635 |
Restructuring charges | 526 | ||
Gain on divestitures | (360) | ||
Impairment charges | 229 | ||
Total operating expenses | 42,653 | 42,091 | 40,597 |
Income from operations | 11,513 | 6,340 | 4,518 |
Other income (expense): | |||
Interest income | 13 | 1 | 4 |
Interest expense | (5) | (12) | |
Foreign currency loss | (102) | (16) | (182) |
Income before income taxes | 11,424 | 6,320 | 4,328 |
Provision for income taxes | 3,666 | 2,405 | 1,126 |
Net income | $ 7,758 | $ 3,915 | $ 3,202 |
Earnings per share of common stock: | |||
Basic | $ 0.44 | $ 0.24 | $ 0.21 |
Diluted | $ 0.42 | $ 0.23 | $ 0.20 |
Weighted-average shares outstanding: | |||
Basic | 17,764 | 16,614 | 15,317 |
Diluted | 18,316 | 17,008 | 15,764 |
Cash dividends declared per common share | $ 0.16 | $ 0.14 | $ 0.12 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |||
Net income | $ 7,758 | $ 3,915 | $ 3,202 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment, net | (1,684) | (2,112) | 180 |
Total other comprehensive income (loss) | (1,684) | (2,112) | 180 |
Comprehensive income | $ 6,074 | $ 1,803 | $ 3,382 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] |
Beginning Balance at Dec. 31, 2012 | $ 52,888 | $ 165 | $ 64,694 | $ (3,869) | $ (433) | $ (7,669) |
Beginning Balance, Shares at Dec. 31, 2012 | 16,539,621 | 1,323,537 | ||||
Net income | 3,202 | 3,202 | ||||
Other comprehensive income | 180 | 180 | ||||
Issuance of common stock for stock options exercised | 1,218 | $ 4 | 1,214 | |||
Issuance of common stock for stock options exercised, Shares | 307,425 | |||||
Vested restricted stock units | 1 | $ 1 | ||||
Vested restricted stock units, shares | 112,284 | |||||
Excess tax benefits from stock-based compensation awards | 31 | 31 | ||||
Stock based compensation expense | 1,253 | 1,253 | ||||
Repurchase of common stock at cost | (373) | $ (373) | ||||
Repurchase of common stock at cost, shares | 56,582 | |||||
Common stock cash dividend paid | (1,838) | (1,838) | ||||
Ending Balance at Dec. 31, 2013 | 56,562 | $ 170 | 65,354 | (667) | (253) | $ (8,042) |
Ending Balance, Shares at Dec. 31, 2013 | 16,959,330 | 1,380,119 | ||||
Net income | 3,915 | 3,915 | ||||
Other comprehensive income | (2,112) | (2,112) | ||||
Issuance of common stock | 10,490 | $ 16 | 10,474 | |||
Issuance of common stock,shares | 1,644,500 | |||||
Issuance of common stock for stock options exercised | 343 | $ 1 | 342 | |||
Issuance of common stock for stock options exercised, Shares | 103,064 | |||||
Vested restricted stock units | 1 | $ 1 | ||||
Vested restricted stock units, shares | 71,542 | |||||
Excess tax benefits from stock-based compensation awards | 225 | 225 | ||||
Stock based compensation expense | 1,302 | 1,302 | ||||
Repurchase of common stock at cost | (211) | $ (211) | ||||
Repurchase of common stock at cost, shares | 27,092 | |||||
Common stock cash dividend paid | (2,308) | (2,308) | ||||
Ending Balance at Dec. 31, 2014 | 68,207 | $ 188 | 75,389 | 3,248 | (2,365) | $ (8,253) |
Ending Balance, Shares at Dec. 31, 2014 | 18,778,436 | 1,407,211 | ||||
Net income | 7,758 | 7,758 | ||||
Other comprehensive income | (1,684) | (1,684) | ||||
Issuance of common stock for stock options exercised | $ 4,836 | $ 9 | 4,827 | |||
Issuance of common stock for stock options exercised, Shares | 906,936 | 906,936 | ||||
Vested restricted stock units | $ 0 | |||||
Vested restricted stock units, shares | 62,949 | |||||
Excess tax benefits from stock-based compensation awards | 454 | 454 | ||||
Stock based compensation expense | 1,424 | 1,424 | ||||
Repurchase of common stock at cost | (266) | $ (266) | ||||
Repurchase of common stock at cost, shares | 23,928 | |||||
Common stock cash dividend paid | (2,845) | (2,845) | ||||
Ending Balance at Dec. 31, 2015 | $ 77,884 | $ 197 | $ 82,094 | $ 8,161 | $ (4,049) | $ (8,519) |
Ending Balance, Shares at Dec. 31, 2015 | 19,748,321 | 1,431,139 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating activities | |||
Net income | $ 7,758 | $ 3,915 | $ 3,202 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 3,394 | 3,334 | 2,793 |
Stock-based compensation | 1,424 | 1,302 | 1,253 |
Fair value adjustments to contingent consideration obligations | 138 | 57 | |
Impairment charges | 229 | ||
Provision (recovery) of doubtful accounts | 182 | 54 | (29) |
Provision for inventory write-downs | 462 | 667 | 479 |
Provision (benefit) for deferred income taxes | (384) | (72) | 287 |
Gain on divestitures | (360) | ||
Excess tax benefits from stock-based compensation awards | (454) | (225) | (31) |
Loss on disposal of property and equipment | 5 | 8 | 52 |
Foreign currency transaction gain | 100 | 60 | 115 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (1,879) | (654) | (1,247) |
Inventory | 608 | (2,711) | (2,168) |
Prepaid expenses and other assets | (2,035) | 553 | (236) |
Accounts payable and other liabilities | 2,617 | (1,086) | 861 |
Net cash provided by operating activities | 11,438 | 5,512 | 5,388 |
Investing activities | |||
Purchases of property and equipment | (2,273) | (1,174) | (2,733) |
Payments related to acquisitions, net of cash acquired | (1,565) | (6,559) | (3,291) |
Proceeds from divestitures, net of expenses | 360 | ||
Proceeds from sale of property and equipment | 15 | ||
Purchase of intellectual property | (17) | (15) | (164) |
Net cash used in investing activities | (3,480) | (7,748) | (6,188) |
Financing activities | |||
Payments of long-term debt | (1,133) | ||
Payment of deferred acquisition consideration | (1,100) | (745) | |
Proceeds from issuance of common stock | 4,836 | 10,834 | 1,219 |
Purchase of treasury stock | (266) | (211) | (373) |
Common stock cash dividend paid | (2,845) | (2,308) | (1,838) |
Excess tax benefits from stock-based compensation awards | 454 | 225 | 31 |
Net cash provided by (used in) financing activities | 1,079 | 6,662 | (961) |
Effect of exchange rate changes on cash and cash equivalents | (278) | (445) | 24 |
Net increase (decrease) in cash and cash equivalents | 8,759 | 3,981 | (1,737) |
Cash and cash equivalents at beginning of year | 18,692 | 14,711 | 16,448 |
Cash and cash equivalents at end of year | $ 27,451 | $ 18,692 | $ 14,711 |
Significant Accounting Policies
Significant Accounting Policies and Related Matters | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Related Matters | 1. Significant Accounting Policies and Related Matters Description of Business Unless the context requires otherwise, references to LeMaitre Vascular, we, our, and us refer to LeMaitre Vascular, Inc. and our subsidiaries. We develop, manufacture, and market medical devices and implants used primarily in the field of vascular surgery. We operate in a single segment in which our principal product lines include the following: valvulotomes, balloon catheters, carotid shunts, biologic vascular patches, biologic vascular grafts, radiopaque marking tape, anastomotic clips, remote endarterectomy devices, laparoscopic cholecystectomy devices, vascular grafts, angioscopes, and powered phlebectomy devices. Our offices are located in Burlington, Massachusetts; Mississauga, Canada; Sulzbach, Germany; Milan, Italy; Madrid, Spain; North Melbourne, Australia; Tokyo, Japan; and Shanghai, China. Consolidation and Basis of Presentation Our consolidated financial statements include the accounts of LeMaitre Vascular and the accounts of our wholly-owned subsidiaries, LeMaitre Vascular GmbH, LeMaitre Vascular GK, Vascutech Acquisition LLC, LeMaitre Acquisition LLC, LeMaitre Vascular SAS, LeMaitre Vascular S.r.l., LeMaitre Vascular Spain SL, LeMaitre Vascular Switzerland GmbH, LeMaitre Vascular ULC, LeMaitre Vascular AS, LeMaitre Vascular Pty Ltd, Xenotis Pty Ltd, LeMaitre Vascular, Ltd. and LeMaitre Medical Technology (Shanghai) Co. Ltd. All significant intercompany accounts and transactions have been eliminated in consolidation. Foreign Currency Translation Balance sheet accounts of foreign subsidiaries are translated into U.S. dollars at year-end exchange rates. Operating accounts are translated at average exchange rates for each year. Net translation gains or losses are adjusted directly to a separate component of other comprehensive income (loss) within stockholders’ equity. Foreign exchange transaction gains (losses), substantially all of which relate to intercompany activity between us and our foreign subsidiaries, are included in other income (expense) in the accompanying consolidated statements of operations. Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires us to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes. Our estimates and assumptions, including those related to bad debts, inventories, intangible assets, sales returns and discounts, and income taxes are reviewed on an ongoing basis and updated as appropriate. Actual results could differ from those estimates. Revenue Recognition Our revenue is derived primarily from the sale of disposable or implantable devices used during vascular surgery. We sell primarily directly to hospitals and to a lesser extent to distributors, as described below, and, during the periods presented in our consolidated financial statements, entered into consigned inventory arrangements with either hospitals or distributors on a limited basis. We recognize revenue when four basic criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been rendered; (3) the fee is fixed or determinable; and (4) collectability is reasonably assured. We assess whether the fee is fixed or determinable based on the terms of the agreement associated with the transaction. Sales transactions are based on prices that are determinable at the time the customer’s purchase order is accepted by us. Orders that are not accompanied with a purchase order are either confirmed in writing or verbally with the customer. After the delivery of the product, there is no uncertainty about customer acceptance due to the nature of the product. There is no contingency for acceptance, warranty, or price protection. We do not recognize revenue on consigned sales until the customer notifies us that the products have been used. In order to determine whether collection is reasonably assured, we assess a number of factors, including past transaction history with the customer and the creditworthiness of the customer. If we determine that collection is not reasonably assured, we defer the recognition of revenue until collection becomes reasonably assured, which is generally upon receipt of payment. We provide for product returns at the time revenue is recognized based on our product return history. Based on these policies, we recognize revenue, net of allowances for returns and discounts, as well as any sales and value added taxes required to be invoiced as products are shipped, based on shipping point terms, or at the time consigned inventory is consumed at which time title passes to customers. We recognize revenue net of allowances for returns and discounts, at the time of shipment of our products to our distributors. Customers returning products are entitled to full or partial credit based on the condition and timing of the return. To be accepted, a returned product must be unopened (if sterile), unadulterated, and undamaged, must have at least 18 months remaining prior to its expiration date, or twelve months for our hospital customers in Europe, and generally be returned within 30 days of shipment. These return policies apply to sales to both hospitals and distributors. The amount of products returned to us, either for exchange or credit, has not been material. Nevertheless, we provide for an allowance for future sales returns based on historical return experience. Our cost of replacing defective products has not been material and is accounted for at the time of replacement. Research and Development Expense Research and development costs, principally salaries, laboratory testing, and supplies, are expensed as incurred and also include royalty payments associated with licensed and acquired intellectual property. Shipping and Handling Costs Shipping and handling fees paid by customers are recorded within net sales, with the related expense recorded in cost of sales. Advertising Costs Advertising costs are expensed as incurred and are included as a component of sales and marketing expense in the accompanying consolidated statements of operations. Advertising costs are as follows: Year ended December 31, 2015 2014 2013 (in thousands) Advertising expense $ 428 $ 462 $ 421 Cash and Cash Equivalents We consider all highly liquid instruments purchased with maturity dates of 90 days or less to be cash equivalents. Cash and cash equivalents are primarily invested in money market funds. These amounts are stated at cost, which approximates fair value. Concentrations of Credit Risk Our financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. Cash equivalents represent highly liquid investments with maturities of 90 days or less at the date of purchase. Credit risk related to cash and cash equivalents are limited based on the creditworthiness of the financial institutions at which these funds are held. We maintain cash balances in several banks. Accounts located in the United States are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. Certain of our account balances exceed the FDIC limit. Cash balances held outside the United States totaled approximately $4.7 million as of December 31, 2015. Our accounts receivable are with customers based in the United States and internationally. Accounts receivable generally are due within 30 to 90 days of invoice and are stated at amounts due from customers, net of an allowance for doubtful accounts and sales returns, other than in certain European markets where longer payment terms are customary and may range from 90 to 240 days. We perform ongoing credit evaluations of the financial condition of our customers and adjust credit limits based upon payment history and the current creditworthiness of the customers, as determined by a review of their current credit information. We continuously monitor aging reports, collections, and payments from customers, and maintain a provision for estimated credit losses based upon historical experience and any specific customer collection issues we identify. We closely monitor outstanding receivables for potential collection risks, including those that may arise from economic conditions, in both the U.S. and international economies. Our European sales to government-owned or supported customers such as hospitals, distributors and agents, in Southern Europe, specifically Italy and Spain may be subject to significant payment delays due to government austerity measures impacting funding and payment practices. As of December 31, 2015 our receivables in Italy and Spain totaled $1.0 million and $0.5 million, respectively. Receivables balances with certain publicly-owned hospitals and government supported customers in these countries can accumulate over a period of time and then subsequently be settled as large lump sum payments. While we believe our allowance for doubtful accounts in these countries is adequate as of December 31, 2015, if significant changes were to occur in the payment practices of these European governments or if government funding becomes unavailable, we may not be able to collect on receivables due to us from these customers and our write offs of uncollectible amounts may increase. We write off accounts receivable when they become uncollectible. Such credit losses have historically been within our expectations and allowances. The allowance for doubtful accounts is our best estimate of the amount of probable credit losses in our existing accounts receivable. We review our allowance for doubtful accounts on a monthly basis and all past due balances are reviewed individually for collectability. The provision for the allowance for doubtful accounts is recorded in general and administrative expenses. The following is a summary of our allowance for doubtful accounts and sales returns: Balance at Additions Deductions Balance at (in thousands) Allowance for doubtful accounts and sales returns: Year ended December 31, 2015 $ 242 $ 182 $ 181 243 Year ended December 31, 2014 263 54 75 242 Year ended December 31, 2013 326 (29 ) 34 263 Fair Value of Financial Instruments Our financial instruments include cash and cash equivalents, accounts receivable and trade payables. The fair value of the majority of these instruments approximates their carrying value based upon their short-term nature or variable rates of interest. Inventory Inventory consists of finished products, work-in-process, and raw materials. We value inventory at the lower of cost or market value. Cost includes materials, labor, and manufacturing overhead and is determined using the first-in, first-out (FIFO) method. On a quarterly basis, we review inventory quantities on hand and analyze the provision for excess and obsolete inventory based primarily on product expiration dating and our estimated sales forecast, which is based on sales history and anticipated future demand. Our estimates of future product demand may not be accurate, and we may understate or overstate the provision required for excess and obsolete inventory. Accordingly, any significant unanticipated changes in demand could have a significant impact on the value of our inventory and results of operations. Property and Equipment Property and equipment are recorded at cost. Depreciation is provided over the estimated useful lives of the related assets using straight-line method as follows: Description Useful Life Computers and equipment 3–5 years Machinery and equipment 3–10 years Leasehold improvements The shorter of its useful life or lease term Expenditures for maintenance and repairs are charged to operations when incurred, while additions and betterments are capitalized. When assets are retired or disposed, the asset’s original cost and related accumulated depreciation are eliminated from the accounts and any gain or loss is reflected in the statement of operations. Valuation of Business Combinations We assign the value of the consideration transferred to acquire a business to the tangible assets and identifiable intangible assets acquired and liabilities assumed on the basis of their fair values at the date of acquisition. We assess the fair value of assets, including intangible assets, using a variety of methods and are usually performed by an independent appraiser who measures fair value from the perspective of a market participant. Acquisitions have been accounted for using the acquisition method, and the acquired companies’ results have been included in the accompanying consolidated financial statements from their respective dates of acquisition. Acquisition transaction costs have been recorded in general and administrative expenses, and are expensed as incurred. Allocation of the purchase price for acquisitions is based on estimates of the fair value of the net assets acquired and, for acquisitions completed within the past year, is subject to adjustment upon finalization of the purchase price allocation. Our acquisitions have historically been made at prices above the fair value of the acquired assets, resulting in goodwill, due to expectations of synergies of combining the businesses. These synergies include use of our existing commercial infrastructure to expand sales of the acquired businesses’ products, use of the commercial infrastructure of the acquired businesses to cost-effectively expand sales of our products, and the elimination of redundant facilities, functions and staffing. Contingent Consideration The Financial Accounting Standards Board (the FASB) requires contingent consideration be recognized at the date of acquisition, based on the fair value at that date, and then re-measured periodically through adjustments to net income. Impairment of Long-lived Assets We review our long-lived assets (primarily property and equipment and intangible assets) subject to amortization quarterly to determine if any adverse conditions exist or a change in circumstances has occurred that would indicate impairment or a change in the remaining useful life. Conditions that may indicate impairment include, but are not limited to, a significant adverse change in legal factors or business climate that could affect the value of an asset, a product recall, or an adverse action or assessment by a regulator. If an impairment indicator exists, we test the intangible asset for recoverability. We record impairment losses on long-lived assets used in operations when events and circumstances indicate that the assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amount of those assets. Impairment is measured based on the fair market value of the affected asset using discounted cash flows. In 2014, we recognized an impairment charge of $0.2 million related to trademarks, technology, and manufacturing equipment upon the terminaton of The UnBalloon, our non-occlusive modeling catheter product line. This impairment adjustment falls within Level 3 of the fair value hierarchy, due to the use of significant unobservable inputs to determine fair value. The fair value measurements were calculated using unobservable inputs, primarily using the income approach, specifically the discounted cash flow method. As the product line was terminated, we concluded there would be no additional future cashflows. Goodwill Goodwill represents the amount of consideration paid in connection with business acquisitions in excess of the fair value of assets acquired and liabilities assumed. Goodwill is evaluated for impairment annually or more frequently if indicators of impairment are present or changes in circumstances suggest that an impairment may exist. We evaluate the December 31 balance of the carrying value of goodwill based on a single reporting unit annually. We perform an assessment of qualitative factors to determine if it is “more likely than not” that the fair value of our reporting unit is less than its carrying value as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. The “more likely than not” threshold is defined as having a likelihood of more than 50 percent. If required, the next step of the goodwill impairment test is to determine the fair value of the reporting unit. The implied fair value of goodwill is determined on the same basis as the amount of goodwill recognized in connection with a business combination. Specifically, the fair value of a reporting unit is allocated to all of the assets and liabilities (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination as of the date of the impairment review and as if the fair value of the reporting unit was the price paid to acquire the reporting unit. The excess of the fair value of a reporting unit over the amounts assigned to its assets and liabilities is the implied fair value of goodwill. If the carrying amount of the reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss shall be recognized in an amount equal to that excess. We have determined that no goodwill impairment charges were required for the years ended December 31, 2015, 2014, or 2013. Other Intangible Assets Other intangible assets consist primarily of patents, trademarks, technology licenses, and customer relationships acquired in connection with business acquisitions and asset acquisitions and are amortized over their estimated useful lives, ranging from 1 to 13 years. Stock-based Compensation We recognize, as expense, the estimated fair value of stock options to employees which is determined using the Black-Scholes option pricing model. We have elected to recognize the compensation cost of all share-based awards on a straight-line basis over the vesting period of the award. In periods that we grant stock options, fair value assumptions are based on volatility, interest, dividend yield, and expected term over which the stock options will be outstanding. The computation of expected volatility is based on the historical volatility of the company’s stock. The interest rate for periods within the contractual life of the award is based on the U.S. Treasury risk-free interest rate in effect at the time of grant. Historical data on exercise patterns is the basis for estimating the expected life of an option. The expected annual dividend rate was calculated by dividing our annual dividend, based on the most recent quarterly dividend rate, by the closing stock price on the grant date. We also issue restricted stock units (RSUs) as an additional form of equity compensation to our employees, officers, and directors, pursuant to our stockholder-approved 2006 Plan. RSUs entitle the grantee to an issuance of stock at no cost and generally vest over a period of time determined by our Board of Directors at the time of grant based upon the continued service to the company. The fair market value of the award is determined based on the number of RSUs granted and the market value of our common stock on the grant date and is amortized to expense over the period of vesting. Unvested RSUs are forfeited and canceled as of the date that employment or service to the company terminates. RSUs are settled in shares of our common stock upon vesting. We may repurchase common stock upon our employees’ vesting in RSUs in order to cover any minimum tax withholding liability as a result of the RSUs having vested. Share-based compensation charges are recorded net of the estimated forfeitures based upon historical rates and will be adjusted in future periods to reflect the results of actual forfeitures and vesting. Share-based compensation charges are recorded across the consolidated statement of operations based upon the grantee’s primary function. Commitments and Contingencies In the normal course of business, we are subject to proceedings, lawsuits, and other claims and assessments for matters related to, among other things, patent infringement, business acquisitions, employment, and product recalls. We assess the likelihood of any adverse judgments or outcomes to these matters as well as potential ranges of probable losses. A determination of the amount of reserves required, if any, for these contingencies is made after careful analysis of each individual issue. The required reserves may change in the future due to new developments in each matter or changes in approach such as a change in settlement strategy in dealing with these matters. We record charges for the losses we anticipate incurring in connection with litigation and claims against us when we conclude a loss is probable and we can reasonably estimate these losses. During the years ended December 31, 2015, 2014, and 2013, we were not subject to any material litigation or claims and assessments. Income Taxes We account for income taxes under the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred taxes are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. The provision for income taxes includes taxes currently payable and deferred taxes resulting from the tax effects of temporary differences between the financial statement and tax bases of assets and liabilities. We maintain valuation allowances where it is more likely than not that all or a portion of a deferred tax asset will not be realized. Changes in the valuation allowances are included in our tax provision in the period of change. In determining whether a valuation allowance is warranted, we evaluate factors such as prior earnings history, expected future earnings, carry-back and carry-forward periods and tax strategies that could potentially enhance the likelihood of the realization of a deferred tax asset. We recognize, measure, present and disclose in our financial statements, uncertain tax positions that we have taken or expect to take on a tax return. We recognize in our financial statements the impact of tax positions that meet a “more likely than not” threshold, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. Our policy is to classify interest and penalties related to unrecognized tax benefits as income tax expense. During November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes”, which simplifies the presentation of deferred income taxes. This ASU requires that deferred tax assets and liabilities be classified as non-current in a statement of financial position. We early adopted ASU 2015-17 effective October 31, 2015 on a prospective basis. Adoption of this ASU resulted in a reclassification of our net current deferred tax asset to the net non-current deferred tax asset in our Consolidated Balance Sheet as of December 31, 2015. No prior periods were retrospectively adjusted. A provision has not been made for U.S. or additional non-U.S. taxes on $2.9 million of undistributed earnings of international subsidiaries that could be subject to taxation if remitted to the U.S. because we plan to keep these amounts permanently reinvested overseas. To the extent such foreign earnings were remitted in the future a deferred tax liability of $0.8 million would be recorded. Comprehensive Income Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Other than reported net income, comprehensive income includes foreign currency translation adjustments, which are disclosed in the accompanying consolidated statements of comprehensive income. There were no reclassifications out of comprehensive income for the years ended December 31, 2015 and 2014. Accumulated other comprehensive loss consisted of foreign currency translation adjustment losses of $4.0 million and $2.4 million as of December 31, 2015 and 2014, respectively. Restructuring We record restructuring charges incurred in connection with consolidation or relocation of operations, exited business lines, reductions in force, or distributor terminations. These restructuring charges, which reflect our commitment to a termination or exit plan that will begin within twelve months, are based on estimates of the expected costs associated with site closure, legal matters, contract terminations, severance payments, or other costs directly related to the restructuring. If the actual cost incurred exceeds the estimated cost, an additional charge to earnings will result. If the actual cost is less than the estimated cost, a credit to earnings will be recognized. Earnings per Share We compute basic earnings per share by dividing net income available for common stockholders by the weighted average number of shares outstanding during the year. Except where the result would be anti-dilutive to net income per share, diluted earnings per share has been computed using the treasury stock method and reflects the potential vesting of restricted common stock and the potential exercise of stock options, as well as their related income tax effects. The computation of basic and diluted net income per share is as follows: Year ended December 31, 2015 2014 2013 (in thousands, except per share data) Basic: Net income available for common stockholders $ 7,758 $ 3,915 $ 3,202 Weighted average shares outstanding 17,764 16,614 15,317 Basic earnings per share $ 0.44 $ 0.24 $ 0.21 Diluted: Net income available for common stockholders $ 7,758 $ 3,915 $ 3,202 Weighted-average shares outstanding 17,764 16,614 15,317 Common stock equivalents, if dilutive 552 394 447 Shares used in computing diluted earnings per common share 18,316 17,008 15,764 Diluted earnings per share $ 0.42 $ 0.23 $ 0.20 Shares excluded in computing diluted earnings per share as those shares would be anti-dilutive 55 277 373 Recent Accounting Pronouncements On February 25, 2016, the Financial Accounting Standards Board (FASB) issued its new lease accounting guidance in Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842) The new lease guidance simplifies the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees will no longer be provided with a source of off-balance sheet financing. The standard is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years (i.e., January 1, 2019, for a calendar year entity). Early application is permitted. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. We have not yet determined the impact on our consolidated financial statements. During November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes”, which simplifies the presentation of deferred income taxes. This ASU requires that deferred tax assets and liabilities be classified as non-current in a statement of financial position. We early adopted ASU 2015-17 effective December 31, 2015 on a prospective basis. Adoption of this ASU resulted in a reclassification of our net current deferred tax asset to the net non-current deferred tax asset in our Consolidated Balance Sheet as of December 31, 2015. No prior periods were retrospectively adjusted. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory, On May 28, 2014, the FASB and the International Accounting Standards Board (the “IASB”) issued substantially converged final standards on revenue recognition. The FASB’s Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606), was issued in three parts: (a) Section A, “Summary and Amendments That Create Revenue from Contracts with Customers (Topic 606) and Other Assets and Deferred Costs-Contracts with Customers (Subtopic 340-40),” (b) Section B, “Conforming Amendments to Other Topics and Subtopics in the Codification and Status Tables” and (c) Section C, “Background Information and Basis for Conclusions.” The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The new revenue recognition guidance becomes effective for the Company on January 1, 2018, with early adoption permitted for the Company on January 1, 2017. Entities have the option of using either a full retrospective or a modified approach to adopt the guidance in the ASU. The Company has not yet selected a transition method and is currently evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | 2. Acquisitions and Divestitures Acquisitions are accounted for using the acquisition method and the acquired companies’ results have been included in the accompanying consolidated financial statements from their respective dates of acquisition. In each case for the acquisitions disclosed below, pro forma information assuming the acquisition had occurred at the beginning of the earliest period presented is not included as the impact is immaterial. XenoSure Manufacturing and Distribution Rights In October 2012, we entered into an asset purchase agreement (the Neovasc Agreement) with Neovasc, Inc. and its subsidiary, Neovasc Medical Inc. (collectively Neovasc) to acquire the manufacturing and distribution rights of the XenoSure biologic vascular patch. Previously, we were the exclusive distributor of the XenoSure biologic vascular patch through January 26, 2016 and held an option to purchase the manufacturing and distribution rights. Assets acquired in October 2012 include intellectual property, manufacturing know-how, and a five year non-compete agreement. Other provisions of the Neovasc Agreement include transitional assistance from Neovasc and mutual indemnification for losses arising out of or relating to certain breaches of, and misrepresentations under, the Neovasc Agreement. Additionally, we entered into a supply agreement with Neovasc while we transition manufacturing to our Burlington facility. The purchase price for this acquisition was $4.6 million. We paid Neovasc $4.3 million at the closing of the acquisition. The remaining $0.3 million was paid in October 2013. We accounted for the acquisition as a business combination. We recorded $2.8 million of intangible assets and $1.8 million of goodwill. The weighted-average amortization period for the acquired intangible assets as of November 1, 2012 was 12.0 years. The goodwill is deductible for tax purposes over 15 years. Clinical Instruments International, Inc. In July 2013, we entered into an asset purchase agreement with Clinical Instruments International, Inc. (Clinical Instruments) to acquire substantially all the assets of Clinical Instruments for $1.1 million. We paid $0.9 million at the closing and paid the remaining $0.2 million in October 2014. We accounted for the acquisition as a business combination. Assets acquired include inventory and intellectual property. We recorded $0.2 million of inventory, $0.3 million of intangible assets and $0.6 million of goodwill. The weighted-average amortization period for the acquired intangible assets as of July 31, 2013 was 5.7 years. The goodwill is deductible for tax purposes over 15 years. InaVein, LLC In August 2013, we entered into an Asset Purchase Agreement with InaVein, LLC (InaVein) to acquire substantially all the assets of InaVein for $2.5 million and potential acquisition-related contingent consideration totaling $1.4 million in 2014 and 2015 dependent on the sales performance of the acquired business and the timing of regulatory approval in China. We paid $2.1 million at the closing and the remaining $0.4 million fixed payment was made in September 2014. We accounted for the acquisition as a business combination. Assets acquired include receivables, inventory, equipment, and intellectual property. Liabilities assumed include payables and service contracts. The following table summarizes the fair value of the assets acquired and liabilities assumed at the date of the acquisition: Allocated Fair Value (in thousands) Current assets $ 670 Property and equipment, net 154 Intangible assets 1,143 Goodwill 668 Total assets acquired 2,635 Total liabilities assumed (100 ) $ 2,535 The goodwill of $0.7 million will be deductible for tax purposes over 15 years. Of the $1.1 million of acquired intangible assets, the following table reflects the allocation of the acquired intangible assets and related estimated useful lives: Allocated Weighted (in thousands) Non-compete agreement $ 70 5.0 years Tradename 163 8.0 years Technology 354 6.0 years Customer relationships 556 7.0 years Total intangible assets $ 1,143 The contingent consideration was initially valued at the date of acquisition and is remeasured each reporting period until the contingency is resolved. Based upon stronger than expected sales to China, we recorded an increase of $0.1 million related to the contingent consideration, which was dependent on the sales performance of the acquired business in the first year following the closing of the transaction as a charge to general and administrative expense in 2014. In October 2014, we paid $0.2 million related to the first sales related milestone. Neither the milestone related to the timing of the regulatory approval in China nor the second sales milestone was achieved. Xenotis Pty Ltd In August 2014, we entered into a stock purchase agreement with the shareholders of Xenotis Pty Ltd (Xenotis) to acquire all of the capital stock of Xenotis for $6.7 million with a mechanism for a purchase price adjustment based on the net tangible assets of Xenotis at closing. Xenotis is the parent company of Bio Nova International, the manufacturer and marketer of the Omniflow II biosynthetic vascular graft for lower extremity bypass and AV access. We paid $5.1 million at the closing and the remaining $1.4 million was paid in August 2015. The net tangible asset purchase price adjustment of $0.2 million was paid in November 2014. We accounted for the acquisition as a business combination. Assets acquired include receivables, inventory, equipment, a building, and intellectual property. Liabilities assumed include payables and debt. The following table summarizes the fair value of the assets acquired and liabilities assumed at the date of the acquisition: Allocated Fair Value (in thousands) Current assets $ 2,110 Property and equipment, net 2,054 Intangible assets 1,794 Goodwill 2,475 Total assets acquired 8,433 Total liabilities assumed (1,731 ) Purchase price $ 6,702 Total liabilities assumed of $1.7 million include $1.1 million of assumed debt, which we paid in full in August 2014. The purchase accounting is complete. The goodwill of $2.5 million will not be deductible for tax purposes. In addition, we acquired deferred tax assets of $2.4 million which consist primarily of net operating loss carry-forwards and capital loss carry-forwards. We assessed the need for a valuation allowance on the acquired deferred tax assets in Australia. Our assessment considered evidence such as current profitability, utilization of certain available tax assets and liabilities, and projected future earnings. Based on this evidence, we concluded that it was more likely than not that we would not be able to utilize the deferred tax assets in Australia. We recorded a full valuation allowance on these deferred tax assets. The following table reflects the allocation of the acquired intangible assets and related estimated useful lives: Allocated Weighted (in thousands) Non-compete agreement $ 135 5.0 years Tradename 142 7.0 years Technology 1,465 7.0 years Customer relationships 52 7.0 years Total intangible assets $ 1,794 In September 2014, we entered into definitive agreements with eight former Xenotis distributors in Europe to terminate their distribution of our Omniflow II biosynthetic vascular grafts for $1.3 million. We paid approximately $1.1 million in 2014 with the remainder due in 2015. We recorded $0.4 million of inventory and $0.9 million of intangible assets. We allocated the payment to the tangible and intangible assets acquired based on the estimated fair value of each of these elements to the transactions. The weighted-average amortization period for the acquired intangible assets is 5.0 years. Angioscope In September 2014, we entered into an asset purchase agreement with Applied Medical Resource Corporation (Applied Medical) to acquire substantially all the assets related to Applied Medical’s angioscope product line for $0.4 million. We paid $0.3 million at closing and the remaining $0.1 million is payable in December 2015. We accounted for the acquisition as a business combination. Assets acquired include inventory, property and equipment, and intellectual property. The following table summarizes the fair value of the assets acquired and liabilities assumed at the date of the acquisition: Allocated (in thousands) Inventory $ 26 Property and equipment, net 38 Intangible assets 276 Goodwill 80 Total assets acquired 420 Total liabilities assumed — Purchase price $ 420 The goodwill of $0.1 million is deductible for tax purposes over 15 years. The following table reflects the allocation of the acquired intangible assets and related estimated useful lives: Allocated Weighted (in thousands) Non-compete agreement $ 3 2.0 years Tradename 28 7.0 years Technology 163 7.0 years Customer relationships 82 9.0 years Total intangible assets $ 276 Tru-Incise Valvulotome In May 2015, we entered into an asset purchase agreement with UreSil, LLC (UreSil) to acquire the production and distribution rights of UreSil’s Tru-Incise valvulotome for sales outside the United States for a purchase price of approximately $1.4 million. We paid $1.1 million with the remaining $0.3 million payable at various points in 2016 and 2017. We accounted for the acquisition as a business combination. Assets acquired include inventory and intellectual property. We did not assume any liabilities. The purchase accounting is complete. The following table summarizes the purchase price allocation at the date of the acquisition: Allocated (in thousands) Inventory $ 88 Intangible assets 545 Goodwill 742 Purchase price $ 1,375 The goodwill is deductible for tax purposes over 15 years. The following table reflects the allocation of the acquired intangible assets and related estimated useful lives: Allocated Fair Value Weighted (in thousands) Non-compete agreement $ 120 5.0 years Tradename license 17 3.0 years Technology 391 7.0 years Customer relationships 17 3.0 years Total intangible assets $ 545 Other Items Following the Tru-Incise valvulotome acquisition, we entered into definitive agreements with eight UreSil distributors to terminate their distribution of the Tru-Incise valvulotome for aggregated termination fees of $0.2 million. We recorded approximately $0.2 million of intangible assets with a weighted-average amortization period of 3.0 years. In August 2015, we entered into a definitive agreement with Grex Medical Oy (Grex) our then-distributor in Finland in order to terminate its distribution of our products and we began selling direct to hospitals in Finland as of January 1, 2016. The agreement required us to pay approximately $0.2 million in exchange for the purchase of customer lists and a non-compete agreement. Our acquisitions have historically been made at prices above the fair value of the acquired identifiable assets, resulting in goodwill, due to expectations of synergies that will be realized by combining businesses. These synergies include the use of our existing sales channel to expand sales of the acquired businesses’ products, consolidation of manufacturing facilities, and the leveraging of our existing administrative infrastructure. The UnBalloon Divestiture In July 2015, we entered into an asset sales agreement with Merit Medical Ireland Limited to sell our inventory, intellectual property, and customer lists associated with our The UnBalloon non-occlusive modeling catheter product line for $0.4 million which was recognized as a gain on divestiture in the third quarter of 2015. During the year ended December 31, 2014, we had recognized an impairment charge of $0.2 million on The UnBalloon non-occlusive modeling catheter product line. Additionally, in 2014 we recognized a $0.3 million charge to cost of sales related to the non-occlusive modeling catheter inventory. The fair market valuations associated with these transactions fall within Level 3 of the fair value hierarchy, due to the use of significant unobservable inputs to determine fair value. The fair value measurements were calculated using unobservable inputs, primarily using the income approach, specifically the discounted cash flow method. The amount and timing of future cash flows within our analysis was based on our due diligence models, most recent operational budgets, long range strategic plans and other estimates. |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventory | 3. Inventory Inventory consists of the following: As of December 31, 2015 2014 (in thousands) Raw materials $ 3,062 $ 3,367 Work-in-process 2,681 3,464 Finished products 9,462 9,883 Total inventory $ 15,205 $ 16,714 We held inventory on consignment of $1.1 million and $0.8 million as of December 31, 2015 and 2014, respectively. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 4. Property and Equipment Property and equipment consists of the following: As of December 31, 2015 2014 (in thousands) Computers and equipment $ 2,560 $ 2,399 Machinery and equipment 8,264 7,278 Building and leasehold improvements 6,143 5,721 Gross property and equipment 16,967 15,398 Less accumulated depreciation (9,945 ) (8,520 ) Property and equipment, net $ 7,022 $ 6,878 Depreciation expense is as follows: Year ended December 31, 2015 2014 2013 (in thousands) Depreciation expense $ 1,881 $ 1,795 $ 1,573 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | 5. Goodwill and Other Intangibles Goodwill consists of the following: As of December 31, 2015 2014 (in thousands) Balance at beginning of year $ 17,281 $ 15,031 Additions for acquisitions 742 2,555 Effects of currency exchange (234 ) (305 ) Balance at end of year $ 17,789 $ 17,281 Other intangibles consist of the following: 2015 2014 Gross Accumulated Net Carrying Gross Accumulated Net (in thousands) Product technology $ 7,113 $ 3,247 $ 3,866 $ 7,134 $ 2,777 $ 4,357 Trademarks and licenses 1,560 1,230 330 1,557 1,074 483 Customer relationships 3,801 2,143 1,658 3,694 1,781 1,913 Other intangible assets 1,297 815 482 1,084 680 404 Total identifiable intangible assets $ 13,771 $ 7,435 $ 6,336 $ 13,469 $ 6,312 $ 7,157 These assets are being amortized over useful lives ranging from 1 to 13 years. The weighted-average amortization period for these intangibles as of December 31, 2015, is 6.0 years. Amortization expense is included in general and administrative expense and is as follows: Year ended December 31, 2015 2014 2013 (in thousands) Amortization expense $ 1,513 $ 1,539 $ 1,220 Estimated amortization expense for each of the five succeeding fiscal years, based upon the intangible assets at December 31, 2015, is as follows: Year ended December 31, 2016 2017 2018 2019 2020 (in thousands) Amortization expense $ 1,469 $ 1,212 $ 1,025 $ 838 $ 585 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
Accrued Expenses | 6. Accrued Expenses Accrued expenses consist of the following: As of December 31, 2015 2014 (in thousands) Compensation and related taxes $ 6,062 $ 4,819 Income and other taxes 483 444 Professional fees 530 496 Other 1,762 1,720 Total $ 8,837 $ 7,479 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 7. Commitments and Contingencies Leases We conduct the majority of our operations in leased facilities, which are accounted for as operating leases. Certain leases include renewal options. In addition, we lease automobiles and equipment under operating leases. There were no assets held under capital leases at December 31, 2015 and 2014. Rent expense was as follows: Year ended December 31, 2015 2014 2013 (in thousands) Rent expense $ 1,506 $ 1,435 $ 1,264 At December 31, 2015, the minimum rental commitments under all non-cancelable operating leases with initial or remaining terms of more than one year, for each of the following fiscal years, are as follows: Year ended December 31, 2016 2017 2018 2019 2020 Thereafter (in thousands) Operating leases $ 1,258 $ 973 $ 996 $ 901 $ 868 $ 2,608 Purchase Commitments As part of our normal course of business, we have purchase commitments to purchase $2.8 million of inventory through 2017. The purchase commitments for inventory are to be used in operations over the normal course of business and do not represent excess commitments or loss contracts. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes Income (loss) before income taxes is as follows: Year ended December 31, 2015 2014 2013 (in thousands) United States $ 10,469 $ 5,341 $ 4,692 Foreign 955 979 (364 ) Total $ 11,424 $ 6,320 $ 4,328 Certain of our foreign subsidiaries are included in the U.S. tax return as branches but are included as foreign for purposes of the table above. The provision (benefit) for income taxes is as follows: Year ended December 31, 2015 2014 2013 (in thousands) Current: Federal $ 3,218 $ 2,058 $ 504 State 333 238 143 Foreign 499 181 192 4,050 2,477 839 Deferred: Federal (12 ) (176 ) 1,968 State (466 ) (14 ) (84 ) Foreign 94 118 (1,597 ) (384 ) (72 ) 287 Provision for income taxes $ 3,666 $ 2,405 $ 1,126 We have reviewed the tax positions taken, or to be taken, in our tax returns for all tax years currently open to examination by a taxing authority. As of December 31, 2015, the gross amount of unrecognized tax benefits exclusive of interest and penalties was $82,000, which may increase within the twelve months ending December 31, 2016. We remain subject to examination until the statute of limitations expires for each respective tax jurisdiction. The statute of limitations will be open with respect to these tax positions through 2024. A reconciliation of beginning and ending amount of our unrecognized tax benefits is as follows: 2015 2014 2013 (in thousands) Unrecognized tax benefits at the beginning of year $ 23 $ 111 $ 321 Additions for tax positions of current year — 20 — Additions for tax positions of prior years 59 — — Reductions for settlements with taxing authorities. — (33 ) — Reductions for lapses of the applicable statutes of limitations — (75 ) (210 ) Unrecognized tax benefits at the end of the year $ 82 $ 23 $ 111 Deferred taxes are attributable to the following temporary differences: As of December 31, 2015 2014 (in thousands) Deferred tax assets: Inventory $ 589 $ 524 Net operating loss carryforwards 2,786 3,296 Tax credit carryforwards 654 585 Capital loss carryforwards 1,090 1,306 Reserves and accruals 631 434 Intangible assets 996 1,040 Stock options 355 312 Other 16 48 Total deferred tax assets 7,117 7,545 Deferred tax liabilities: Property and equipment (668 ) (706 ) Goodwill (3,504 ) (3,130 ) Foreign branch deferred offset (1,176 ) (1,411 ) Total deferred tax liabilities (5,348 ) (5,247 ) Net deferred tax assets before valuation allowance 1,769 2,298 Valuation allowance (2,242 ) (3,157 ) Net deferred tax liabiltity $ (473 ) $ (859 ) Deferred tax classification Short-term deferred tax asset $ — $ 758 Short-term deferred tax liability — (116 ) Net short-term deferred tax asset $ — $ 642 Long-term deferred tax asset $ 1,205 $ 1,418 Long-term deferred tax liability (1,678 ) (2,919 ) Net long-term deferred tax liability $ (473 ) $ (1,501 ) Net deferred tax liability $ (473 ) $ (859 ) We have assessed the need for a valuation allowance against our deferred tax assets and continue to carry a valuation allowance against $2.2 million of foreign deferred tax assets; based on the weight of available evidence, we believe it is more likely than not such assets will not be realized. As of December 31, 2015, $2.0 million of our valuation allowance related to our Xenotis acquisition in Australia. The valuation allowance against our deferred tax assets may require adjustment in the future based on changes in the mix of temporary differences, changes in tax laws, and operating performance. In 2015, we released approximately $400,000 of valuation allowances on certain deferred assets associated with state research and development credits. Our assessment considered evidence such as current profitability, utilization of certain available tax assets and liabilities, and projected future earnings. Based on this evidence, we concluded that it was more likely than not that we would generate sufficient pre-tax income in future periods to utilize all of our deferred tax assets related to state research and development credits. Realization of our deferred tax assets is dependent on our generating sufficient taxable income in future periods. Although we believe it is more likely than not that future taxable income will be sufficient to allow us to recover substantially all of the value of our deferred tax assets remaining after we apply the valuation allowances, realization is not assured and future events could cause us to change our judgment. In the event that actual results differ from our estimates, or we adjust these estimates in the future periods, further adjustments to our valuation allowance may be recorded, which could materially impact our financial position and net income (loss) in the period of the adjustment. As of December 31, 2015, we have net operating loss carryforwards in Australia of $4.6 million that do not expire, in France of $2.7 million that do not expire, in Spain of $1.1 million that begin to expire in 2029, in Italy of $0.6 million that do not expire, in Sweden of $0.1 million that do not expire, in Switzerland of $0.1 million that begin to expire in 2020 and in Norway of $0.1 million that do not expire. We have a capital loss carryforward in Australia of $3.6 million that does not expire. We also have state tax credit carryforwards of approximately $1.0 million that are available to reduce future tax liabilities, which expire at various dates through 2030, or can be carried forward indefinitely. Approximately $10,000 of these state tax credits relate to excess stock compensation deductions and as such, the benefit of these tax deductions will be credited to additional paid-in capital when we receive a cash benefit from these credits being utilized. Ownership changes, as defined by the Internal Revenue Code, may limit the amount of net operating losses and research and experimentation credit carryforwards that can be utilized annually to offset future taxable income and taxes payable. A provision has not been made for U.S. or additional non-U.S. taxes on $2.9 million of undistributed earnings of international subsidiaries that could be subject to taxation if remitted to the U.S. because we plan to keep these amounts permanently reinvested overseas. To the extent such foreign earnings were remitted in the future a deferred tax liability of $0.8 million would be recorded. A reconciliation of the Federal statutory rate to our effective tax rate is as follows: 2015 2014 2013 Federal statutory rate 34.0 % 34.0 % 34.0 % State tax, net of federal benefit (2.1 %) 2.3 % 0.4 % Effect of foreign taxes 1.4 % (1.4 %) (4.1 %) Subpart F income 2.2 % 1.7 % 2.2 % Valuation allowance 0.4 % 0.1 % (38.2 %) Foreign deferred tax liability offset (0.9 %) (1.9 %) 36.1 % Manufacturing deduction (2.8 %) (3.5 %) (2.9 %) Research & development tax credits (1.5 %) (2.4 %) (8.0 %) Stock options 0.6 % 4.3 % 3.6 % Uncertain tax positions 0.6 % (0.2 %) (5.1 %) Italian permanent differences 0.0 % 3.2 % 5.2 % Other permanent differences 1.3 % 3.1 % 3.0 % Other (1.1 %) (1.3 %) (0.2 %) Effective tax rate 32.1 % 38.0 % 26.0 % In September 2015 we were notified that our 2013 U.S. federal tax return would be audited by the Internal Revenue Service. As of December 31, 2015, the audit was in the early stages of the audit and no additional taxes have been assessed. We believe that there will be no material changes to our income taxes as a result of this audit. We are not currently under audit in any other tax jurisdictions. In October 2014, the German tax authority completed an audit of our German subsidiary for the tax years 2009 through 2012. In October 2014, the French tax authority completed an audit of our French subsidiary for the tax years 2011 through 2013. The German audit resulted in additional income taxes of $39,000. The France audit did not result in any material changes to our income tax liability. As of December 31, 2015, a summary of the tax years that remain subject to examination in our most significant tax jurisdictions are: United States 2012 and forward Foreign 2008 and forward |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | 9. Stockholders’ Equity Authorized Shares On June 14, 2012, our stockholders approved an amendment (Charter Amendment) to our Second Amended and Restated Certificate of Incorporation to reduce the number of authorized shares of common stock from 100,000,000 to 37,000,000 shares and of undesignated preferred stock from 5,000,000 to 3,000,000 shares. The Charter Amendment was previously approved by our Board of Directors on April 12, 2012, subject to approval by our stockholders. The Charter Amendment was filed with the Secretary of State of the State of Delaware on June 14, 2012. Under the terms of our certificate of incorporation, our board of directors is authorized to issue shares of preferred stock in one or more series without stockholder approval. Our board of directors has the discretion to determine the rights, preferences, privileges and restrictions, including voting rights, dividend rights, conversion rights, redemption privileges and liquidation preferences, of each series of preferred stock. Currently, we have no shares of preferred stock outstanding. Share Offering On June 4, 2014, we issued 1,644,500 shares of our common stock, $0.01 par value per share, at a price to the public of $7.00 per share less underwriting discounts. The net proceeds, after deducting the underwriting discounts and other estimated offering expenses, were approximately $10.5 million. We have deployed a portion of the net proceeds from the offering on our recent acquisitions and expect to use the remainder for general corporate purposes, including continued development of our products, working capital and capital expenditures, payments under our quarterly dividend program, deferred payments related to prior acquisitions, and to fund future acquisitions. Stock Award Plans Under our 1997, 1998, 2000, and 2004 stock option plans, we authorized the granting of options in the form of incentive stock options or non-qualified stock options to employees, directors, and consultants to purchase up to 1,688,702 shares of common stock. The stock options provide the holder the right to purchase common stock at a specific exercise price and the expected term will not exceed ten years. Incentive stock options are required to be issued at not less than fair market value at the date of the grant and generally vest over four or five years. The term of the options is determined by our Board of Directors but in no event will exceed ten years from date of grant, except with respect to one non-qualified option issued under our 1997 stock option plan. In May 2006 we approved a 2006 Stock Option and Incentive Plan (as subsequently amended, the 2006 Plan), which became effective upon the initial public offering. In 2010 we amended the 2006 Plan to increase the aggregate pool of available shares to 3,000,000 of common stock, and in 2015 the 2006 Plan was amended to increase the aggregate pool to 5,500,000 shares. The 2006 Plan allows for granting of incentive stock options, non-qualified stock options, stock appreciation rights, RSUs, unrestricted stock awards, and deferred stock awards to our officers, employees, directors, and consultants. In connection with the adoption of the 2006 Plan, no further option grants are permitted under the 1997, 1998, 2000, and 2004 stock option plans and any expirations, cancellations, or terminations under the previous plans are available for issuance under the 2006 Plan. We may satisfy awards upon exercise of stock options or RSUs with either newly issued or treasury shares. The total number of shares currently authorized for the 2006 Plan is 7,118,003 shares, of which 2,329,104 remain available for grant as of December 31, 2015. We have computed the fair value of employee stock options using the following weighted average assumptions: 2015 2014 2013 Dividend yield 1.4 % 1.8 % 1.8 % Volatility 28.6 % 45.2 % 57.8 % Risk-free interest rate 1.8 % 2.0 % 1.5 % Weighted average expected option term (in years) 5.6 5.5 5.5 Weighted average fair value per share of options granted $ 2.80 $ 2.81 $ 3.01 Aggregate intrinsic value of options exercised $ 6,534,800 $ 819,478 $ 1,009,726 A summary of option activity as of December 31, 2015 and the year then ended is presented below: Number of Weighted Weighted Aggregate (in years) Balance outstanding at December 31, 2014 2,238,734 $ 6.42 4.41 $ 3,767,658 Granted 511,227 $ 11.72 Exercised (1) (906,936 ) $ 5.33 $ 6,534,800 Canceled / Expired (107,045 ) $ 9.06 Balance outstanding at December 31, 2015 (2) 1,735,980 $ 8.39 4.28 $ 15,381,584 Vested and exercisable at December 31, 2015 517,932 $ 6.35 2.71 $ 5,645,756 Expected to vest at December 31, 2015 (3) 902,258 $ 9.11 4.85 Total 1,420,190 (1) The aggregate intrinsic value represents the difference between the exercise price and the closing price of our stock on the date of exercise. (2) The aggregate intrinsic value represents the difference between the exercise price and $17.25, the closing price of our stock on December 31, 2015, for all in-the-money options outstanding. (3) Options outstanding that are expected to vest are net of estimated future option forfeitures Restricted Stock Units A summary of our RSU activity is as follows: Weighted Average Grant Date Shares Fair Value Balance outstanding at December 31, 2014 220,298 $ 7.04 Granted 62,942 $ 11.32 Vested (1) (61,362 ) $ 6.84 Canceled (30,533 ) $ 7.47 Balance outstanding at December 31, 2015 191,345 $ 8.45 (1) The number of RSUs vested includes the shares that we withheld on behalf of employees to satisfy minimum statutory tax withholding requirements. The fair values of the RSUs that vested during 2015, 2014, and 2013 were $0.7 million, $0.5 million, and $0.8 million, respectively. We repurchase shares of our common stock in order to cover any minimum tax withholding liability associated with RSU vestings. A summary of our repurchases is as follows: 2015 2014 Shares of common stock repurchased 23,928 27,092 Average per share repurchase price $ 11.12 $ 7.80 Aggregage purchase price $ 266,090 $ 211,379 Stock-based Compensation The components of stock-based compensation expense included in the consolidated statements of operations are as follows: 2015 2014 2013 (in thousands) Stock option awards $ 992 $ 917 $ 789 Restricted stock units 432 385 464 Total stock-based compensation $ 1,424 $ 1,302 $ 1,253 Stock-based compensation is included in our statements of operations as follows: 2015 2014 2013 (in thousands) Cost of sales $ 165 $ 150 $ 148 Sales and marketing 284 309 295 General and administrative 869 757 726 Research and development 106 86 84 Total stock-based compensation $ 1,424 $ 1,302 $ 1,253 We expect to record the unamortized portion of share-based compensation expense of $3.2 million for existing stock options and RSUs outstanding at December 31, 2015, over a weighted-average period of 3.5 years. Stock Repurchase Plan In July 2009, our Board of Directors authorized a repurchase of our common stock from time to time on the open market or in privately negotiated transactions. In November 2011, our Board of Directors increased this authorization to $10.0 million and extended the program through December 31, 2013. The repurchase program concluded as of December 31, 2013. The following is a summary of the stock repurchase activity for the year ended December 31, 2013: December 31, 2013 Shares Total Purchased Purchased ( $ in thousands) Share repurchases 15,323 $ 88 Dividends In February 2011, our Board of Directors approved a policy for the payment of quarterly cash dividends on our common stock. Future declarations of quarterly dividends and the establishment of future record and payment dates are subject to approval by our Board of Directors on a quarterly basis. The dividend activity for the periods presented is as follows: Record Date Payment Date Per Share Amount Dividend Payment (in thousands) Fiscal Year 2015 March 20, 2015 April 3, 2015 $ 0.040 $ 700 May 22, 2015 June 5, 2015 $ 0.040 $ 705 August 20, 2015 September 3, 2015 $ 0.040 $ 715 November 20, 2015 December 4, 2015 $ 0.040 $ 725 Fiscal Year 2014 March 20, 2014 April 3, 2014 $ 0.035 $ 546 May 22, 2014 June 5, 2014 $ 0.035 $ 547 August 21, 2014 September 4, 2014 $ 0.035 $ 607 November 20, 2014 December 4, 2014 $ 0.035 $ 608 On February 22, 2016, our Board of Directors approved a quarterly cash dividend on our common stock of $0.045 per share payable on April 4, 2016, to stockholders of record at the close of business on March 21, 2016, which will total approximately $0.8 million in payments. |
Profit-Sharing Plan
Profit-Sharing Plan | 12 Months Ended |
Dec. 31, 2015 | |
Postemployment Benefits [Abstract] | |
Profit-Sharing Plan | 10. Profit-Sharing Plan We offer a 401(k) profit-sharing plan (the Plan) covering eligible U.S. employees to make tax deferred contributions, a portion of which are matched by us. We may make discretionary profit sharing contributions to the Plan in an amount determined by our Board of Directors. Our contributions vest ratably over six years of employment and amounted to approximately $50,000, $30,000 and $40,000 for 2015, 2014 and 2013, respectively. |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | 11. Restructuring Charges In February 2014, we committed to a plan intended to improve operational efficiencies, which included a reduction in force of approximately 10% of our workforce and other cost-cutting measures, including the transfer of our Clinical Instruments manufacturing to our Burlington headquarters and corresponding closure of our Southbridge manufacturing facility. As a result, we recorded approximately $0.4 million of severance related restructuring expense during the year ended December 31, 2014. In April 2014, we committed to an additional reduction in force of approximately seven employees. As a result, we recorded approximately $0.1 million of severance related restructuring expense during the year ended December 31, 2014. The components of the restructuring charges were as follows: Year ended December 31, 2014 (in thousands) Severance $ 499 Other 27 Total $ 526 The 2014 restructuring plans were paid in full during the year ended December 31, 2014. |
Segment and Enterprise-wide Dis
Segment and Enterprise-wide Disclosures | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment and Enterprise-wide Disclosures | 12. Segment and Enterprise-wide Disclosures The FASB establishes standards for reporting information regarding operating segments in financial statements. Operating segments are identified as components of an enterprise that engage in business activities for which separate, discrete financial information is available and are regularly reviewed by the chief operating decision-maker in making decisions on how to allocate resources and assess performance. We view our operations and manage our business as one operating segment. No discrete operating information is prepared by us except for product sales by product line and by legal entity for local reporting purposes. Most of our revenues were generated in the United States, Germany, and other European countries, Canada and Japan, and substantially all of our assets are located in the United States. Net sales to unaffiliated customers by country were as follows: Year ended December 31, 2015 2014 2013 (in thousands) United States $ 45,177 $ 41,545 $ 39,240 Germany 9,090 7,639 6,939 Other countries 24,085 21,913 18,370 Net sales $ 78,352 $ 71,097 $ 64,549 Total property and equipment held by geography were as follows: As of December 31, 2015 2014 (in thousands) United States $ 5,199 $ 4,786 Australia 1,593 1,802 Germany 170 186 Other countries 60 104 Total property and equipment $ 7,022 $ 6,878 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | 13. Supplemental Cash Flow Information Supplemental disclosures of cash flow information are as follows: Year ended December 31, 2015 2014 2013 (in thousands) Cash paid for income taxes, net $ 4,792 $ 2,088 $ 1,019 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 14. Fair Value Measurements The fair value accounting guidance requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. Level 1 assets being measured at fair value on a recurring basis as of December 31, 2015 included our money market mutual fund account. We had no Level 2 assets being measured at fair value on a recurring basis as of December 31, 2015. As discussed in Notes 1 and 2, several measurements of acquisition-related assets and impairments of intangible assets were measured using Level 3 techniques. The following table provides a rollforward of the fair value, as determined by Level 3 inputs, of the contingent consideration. Year ended December 31, 2014 2013 (in thousands) Beginning balance $ 99 $ — Additions — 42 Payments (237 ) — Change in fair value included in earnings 138 57 Ending balance $ — $ 99 |
Quarterly Financial Data (unaud
Quarterly Financial Data (unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (unaudited) | 15. Quarterly Financial Data (unaudited) Three months ended 2015 March 31 June 30 September 30 December 31 (in thousands, except per share data) Total net sales $ 18,947 $ 19,897 $ 19,025 $ 20,483 Gross profit 13,117 13,130 13,516 14,403 Income from operations 2,309 2,794 3,321 3,089 Net income 1,369 1,767 2,092 2,530 Earnings per share Basic $ 0.08 $ 0.10 $ 0.12 $ 0.14 Diluted $ 0.08 $ 0.10 $ 0.11 $ 0.13 Three months ended 2014 March 31 June 30 September 30 December 31 (in thousands, except per share data) Total net sales $ 16,754 $ 18,161 $ 17,501 $ 18,681 Gross profit 11,224 12,376 12,003 12,828 Income (loss) from operations (231 ) 1,980 1,852 2,739 Net income (loss) (207 ) 1,272 934 1,916 Earnings per share Basic $ (0.01 ) $ 0.08 $ 0.05 $ 0.11 Diluted $ (0.01 ) $ 0.08 $ 0.05 $ 0.11 |
Significant Accounting Polici23
Significant Accounting Policies and Related Matters (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business Unless the context requires otherwise, references to LeMaitre Vascular, we, our, and us refer to LeMaitre Vascular, Inc. and our subsidiaries. We develop, manufacture, and market medical devices and implants used primarily in the field of vascular surgery. We operate in a single segment in which our principal product lines include the following: valvulotomes, balloon catheters, carotid shunts, biologic vascular patches, biologic vascular grafts, radiopaque marking tape, anastomotic clips, remote endarterectomy devices, laparoscopic cholecystectomy devices, vascular grafts, angioscopes, and powered phlebectomy devices. Our offices are located in Burlington, Massachusetts; Mississauga, Canada; Sulzbach, Germany; Milan, Italy; Madrid, Spain; North Melbourne, Australia; Tokyo, Japan; and Shanghai, China. |
Consolidation and Basis of Presentation | Consolidation and Basis of Presentation Our consolidated financial statements include the accounts of LeMaitre Vascular and the accounts of our wholly-owned subsidiaries, LeMaitre Vascular GmbH, LeMaitre Vascular GK, Vascutech Acquisition LLC, LeMaitre Acquisition LLC, LeMaitre Vascular SAS, LeMaitre Vascular S.r.l., LeMaitre Vascular Spain SL, LeMaitre Vascular Switzerland GmbH, LeMaitre Vascular ULC, LeMaitre Vascular AS, LeMaitre Vascular Pty Ltd, Xenotis Pty Ltd, LeMaitre Vascular, Ltd. and LeMaitre Medical Technology (Shanghai) Co. Ltd. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Foreign Currency Translation | Foreign Currency Translation Balance sheet accounts of foreign subsidiaries are translated into U.S. dollars at year-end exchange rates. Operating accounts are translated at average exchange rates for each year. Net translation gains or losses are adjusted directly to a separate component of other comprehensive income (loss) within stockholders’ equity. Foreign exchange transaction gains (losses), substantially all of which relate to intercompany activity between us and our foreign subsidiaries, are included in other income (expense) in the accompanying consolidated statements of operations. |
Estimates | Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires us to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes. Our estimates and assumptions, including those related to bad debts, inventories, intangible assets, sales returns and discounts, and income taxes are reviewed on an ongoing basis and updated as appropriate. Actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition Our revenue is derived primarily from the sale of disposable or implantable devices used during vascular surgery. We sell primarily directly to hospitals and to a lesser extent to distributors, as described below, and, during the periods presented in our consolidated financial statements, entered into consigned inventory arrangements with either hospitals or distributors on a limited basis. We recognize revenue when four basic criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been rendered; (3) the fee is fixed or determinable; and (4) collectability is reasonably assured. We assess whether the fee is fixed or determinable based on the terms of the agreement associated with the transaction. Sales transactions are based on prices that are determinable at the time the customer’s purchase order is accepted by us. Orders that are not accompanied with a purchase order are either confirmed in writing or verbally with the customer. After the delivery of the product, there is no uncertainty about customer acceptance due to the nature of the product. There is no contingency for acceptance, warranty, or price protection. We do not recognize revenue on consigned sales until the customer notifies us that the products have been used. In order to determine whether collection is reasonably assured, we assess a number of factors, including past transaction history with the customer and the creditworthiness of the customer. If we determine that collection is not reasonably assured, we defer the recognition of revenue until collection becomes reasonably assured, which is generally upon receipt of payment. We provide for product returns at the time revenue is recognized based on our product return history. Based on these policies, we recognize revenue, net of allowances for returns and discounts, as well as any sales and value added taxes required to be invoiced as products are shipped, based on shipping point terms, or at the time consigned inventory is consumed at which time title passes to customers. We recognize revenue net of allowances for returns and discounts, at the time of shipment of our products to our distributors. Customers returning products are entitled to full or partial credit based on the condition and timing of the return. To be accepted, a returned product must be unopened (if sterile), unadulterated, and undamaged, must have at least 18 months remaining prior to its expiration date, or twelve months for our hospital customers in Europe, and generally be returned within 30 days of shipment. These return policies apply to sales to both hospitals and distributors. The amount of products returned to us, either for exchange or credit, has not been material. Nevertheless, we provide for an allowance for future sales returns based on historical return experience. Our cost of replacing defective products has not been material and is accounted for at the time of replacement. |
Research and Development Expense | Research and Development Expense Research and development costs, principally salaries, laboratory testing, and supplies, are expensed as incurred and also include royalty payments associated with licensed and acquired intellectual property. |
Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling fees paid by customers are recorded within net sales, with the related expense recorded in cost of sales. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred and are included as a component of sales and marketing expense in the accompanying consolidated statements of operations. Advertising costs are as follows: Year ended December 31, 2015 2014 2013 (in thousands) Advertising expense $ 428 $ 462 $ 421 |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all highly liquid instruments purchased with maturity dates of 90 days or less to be cash equivalents. Cash and cash equivalents are primarily invested in money market funds. These amounts are stated at cost, which approximates fair value. |
Concentrations of Credit Risk | Concentrations of Credit Risk Our financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. Cash equivalents represent highly liquid investments with maturities of 90 days or less at the date of purchase. Credit risk related to cash and cash equivalents are limited based on the creditworthiness of the financial institutions at which these funds are held. We maintain cash balances in several banks. Accounts located in the United States are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. Certain of our account balances exceed the FDIC limit. Cash balances held outside the United States totaled approximately $4.7 million as of December 31, 2015. Our accounts receivable are with customers based in the United States and internationally. Accounts receivable generally are due within 30 to 90 days of invoice and are stated at amounts due from customers, net of an allowance for doubtful accounts and sales returns, other than in certain European markets where longer payment terms are customary and may range from 90 to 240 days. We perform ongoing credit evaluations of the financial condition of our customers and adjust credit limits based upon payment history and the current creditworthiness of the customers, as determined by a review of their current credit information. We continuously monitor aging reports, collections, and payments from customers, and maintain a provision for estimated credit losses based upon historical experience and any specific customer collection issues we identify. We closely monitor outstanding receivables for potential collection risks, including those that may arise from economic conditions, in both the U.S. and international economies. Our European sales to government-owned or supported customers such as hospitals, distributors and agents, in Southern Europe, specifically Italy and Spain may be subject to significant payment delays due to government austerity measures impacting funding and payment practices. As of December 31, 2015 our receivables in Italy and Spain totaled $1.0 million and $0.5 million, respectively. Receivables balances with certain publicly-owned hospitals and government supported customers in these countries can accumulate over a period of time and then subsequently be settled as large lump sum payments. While we believe our allowance for doubtful accounts in these countries is adequate as of December 31, 2015, if significant changes were to occur in the payment practices of these European governments or if government funding becomes unavailable, we may not be able to collect on receivables due to us from these customers and our write offs of uncollectible amounts may increase. We write off accounts receivable when they become uncollectible. Such credit losses have historically been within our expectations and allowances. The allowance for doubtful accounts is our best estimate of the amount of probable credit losses in our existing accounts receivable. We review our allowance for doubtful accounts on a monthly basis and all past due balances are reviewed individually for collectability. The provision for the allowance for doubtful accounts is recorded in general and administrative expenses. The following is a summary of our allowance for doubtful accounts and sales returns: Balance at Additions Deductions Balance at (in thousands) Allowance for doubtful accounts and sales returns: Year ended December 31, 2015 $ 242 $ 182 $ 181 243 Year ended December 31, 2014 263 54 75 242 Year ended December 31, 2013 326 (29 ) 34 263 |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Our financial instruments include cash and cash equivalents, accounts receivable and trade payables. The fair value of the majority of these instruments approximates their carrying value based upon their short-term nature or variable rates of interest. |
Inventory | Inventory Inventory consists of finished products, work-in-process, and raw materials. We value inventory at the lower of cost or market value. Cost includes materials, labor, and manufacturing overhead and is determined using the first-in, first-out (FIFO) method. On a quarterly basis, we review inventory quantities on hand and analyze the provision for excess and obsolete inventory based primarily on product expiration dating and our estimated sales forecast, which is based on sales history and anticipated future demand. Our estimates of future product demand may not be accurate, and we may understate or overstate the provision required for excess and obsolete inventory. Accordingly, any significant unanticipated changes in demand could have a significant impact on the value of our inventory and results of operations. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost. Depreciation is provided over the estimated useful lives of the related assets using straight-line method as follows: Description Useful Life Computers and equipment 3–5 years Machinery and equipment 3–10 years Leasehold improvements The shorter of its useful life or lease term Expenditures for maintenance and repairs are charged to operations when incurred, while additions and betterments are capitalized. When assets are retired or disposed, the asset’s original cost and related accumulated depreciation are eliminated from the accounts and any gain or loss is reflected in the statement of operations. |
Valuation of Business Combinations | Valuation of Business Combinations We assign the value of the consideration transferred to acquire a business to the tangible assets and identifiable intangible assets acquired and liabilities assumed on the basis of their fair values at the date of acquisition. We assess the fair value of assets, including intangible assets, using a variety of methods and are usually performed by an independent appraiser who measures fair value from the perspective of a market participant. Acquisitions have been accounted for using the acquisition method, and the acquired companies’ results have been included in the accompanying consolidated financial statements from their respective dates of acquisition. Acquisition transaction costs have been recorded in general and administrative expenses, and are expensed as incurred. Allocation of the purchase price for acquisitions is based on estimates of the fair value of the net assets acquired and, for acquisitions completed within the past year, is subject to adjustment upon finalization of the purchase price allocation. Our acquisitions have historically been made at prices above the fair value of the acquired assets, resulting in goodwill, due to expectations of synergies of combining the businesses. These synergies include use of our existing commercial infrastructure to expand sales of the acquired businesses’ products, use of the commercial infrastructure of the acquired businesses to cost-effectively expand sales of our products, and the elimination of redundant facilities, functions and staffing. |
Contingent Consideration | Contingent Consideration The Financial Accounting Standards Board (the FASB) requires contingent consideration be recognized at the date of acquisition, based on the fair value at that date, and then re-measured periodically through adjustments to net income. |
Impairment of Long-lived Assets | Impairment of Long-lived Assets We review our long-lived assets (primarily property and equipment and intangible assets) subject to amortization quarterly to determine if any adverse conditions exist or a change in circumstances has occurred that would indicate impairment or a change in the remaining useful life. Conditions that may indicate impairment include, but are not limited to, a significant adverse change in legal factors or business climate that could affect the value of an asset, a product recall, or an adverse action or assessment by a regulator. If an impairment indicator exists, we test the intangible asset for recoverability. We record impairment losses on long-lived assets used in operations when events and circumstances indicate that the assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amount of those assets. Impairment is measured based on the fair market value of the affected asset using discounted cash flows. In 2014, we recognized an impairment charge of $0.2 million related to trademarks, technology, and manufacturing equipment upon the terminaton of The UnBalloon, our non-occlusive modeling catheter product line. This impairment adjustment falls within Level 3 of the fair value hierarchy, due to the use of significant unobservable inputs to determine fair value. The fair value measurements were calculated using unobservable inputs, primarily using the income approach, specifically the discounted cash flow method. As the product line was terminated, we concluded there would be no additional future cashflows. |
Goodwill | Goodwill Goodwill represents the amount of consideration paid in connection with business acquisitions in excess of the fair value of assets acquired and liabilities assumed. Goodwill is evaluated for impairment annually or more frequently if indicators of impairment are present or changes in circumstances suggest that an impairment may exist. We evaluate the December 31 balance of the carrying value of goodwill based on a single reporting unit annually. We perform an assessment of qualitative factors to determine if it is “more likely than not” that the fair value of our reporting unit is less than its carrying value as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. The “more likely than not” threshold is defined as having a likelihood of more than 50 percent. If required, the next step of the goodwill impairment test is to determine the fair value of the reporting unit. The implied fair value of goodwill is determined on the same basis as the amount of goodwill recognized in connection with a business combination. Specifically, the fair value of a reporting unit is allocated to all of the assets and liabilities (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination as of the date of the impairment review and as if the fair value of the reporting unit was the price paid to acquire the reporting unit. The excess of the fair value of a reporting unit over the amounts assigned to its assets and liabilities is the implied fair value of goodwill. If the carrying amount of the reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss shall be recognized in an amount equal to that excess. We have determined that no goodwill impairment charges were required for the years ended December 31, 2015, 2014, or 2013. |
Other Intangible Assets | Other Intangible Assets Other intangible assets consist primarily of patents, trademarks, technology licenses, and customer relationships acquired in connection with business acquisitions and asset acquisitions and are amortized over their estimated useful lives, ranging from 1 to 13 years. |
Stock-Based Compensation | Stock-based Compensation We recognize, as expense, the estimated fair value of stock options to employees which is determined using the Black-Scholes option pricing model. We have elected to recognize the compensation cost of all share-based awards on a straight-line basis over the vesting period of the award. In periods that we grant stock options, fair value assumptions are based on volatility, interest, dividend yield, and expected term over which the stock options will be outstanding. The computation of expected volatility is based on the historical volatility of the company’s stock. The interest rate for periods within the contractual life of the award is based on the U.S. Treasury risk-free interest rate in effect at the time of grant. Historical data on exercise patterns is the basis for estimating the expected life of an option. The expected annual dividend rate was calculated by dividing our annual dividend, based on the most recent quarterly dividend rate, by the closing stock price on the grant date. We also issue restricted stock units (RSUs) as an additional form of equity compensation to our employees, officers, and directors, pursuant to our stockholder-approved 2006 Plan. RSUs entitle the grantee to an issuance of stock at no cost and generally vest over a period of time determined by our Board of Directors at the time of grant based upon the continued service to the company. The fair market value of the award is determined based on the number of RSUs granted and the market value of our common stock on the grant date and is amortized to expense over the period of vesting. Unvested RSUs are forfeited and canceled as of the date that employment or service to the company terminates. RSUs are settled in shares of our common stock upon vesting. We may repurchase common stock upon our employees’ vesting in RSUs in order to cover any minimum tax withholding liability as a result of the RSUs having vested. Share-based compensation charges are recorded net of the estimated forfeitures based upon historical rates and will be adjusted in future periods to reflect the results of actual forfeitures and vesting. Share-based compensation charges are recorded across the consolidated statement of operations based upon the grantee’s primary function. |
Commitments and Contingencies | Commitments and Contingencies In the normal course of business, we are subject to proceedings, lawsuits, and other claims and assessments for matters related to, among other things, patent infringement, business acquisitions, employment, and product recalls. We assess the likelihood of any adverse judgments or outcomes to these matters as well as potential ranges of probable losses. A determination of the amount of reserves required, if any, for these contingencies is made after careful analysis of each individual issue. The required reserves may change in the future due to new developments in each matter or changes in approach such as a change in settlement strategy in dealing with these matters. We record charges for the losses we anticipate incurring in connection with litigation and claims against us when we conclude a loss is probable and we can reasonably estimate these losses. During the years ended December 31, 2015, 2014, and 2013, we were not subject to any material litigation or claims and assessments. |
Income Taxes | Income Taxes We account for income taxes under the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred taxes are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. The provision for income taxes includes taxes currently payable and deferred taxes resulting from the tax effects of temporary differences between the financial statement and tax bases of assets and liabilities. We maintain valuation allowances where it is more likely than not that all or a portion of a deferred tax asset will not be realized. Changes in the valuation allowances are included in our tax provision in the period of change. In determining whether a valuation allowance is warranted, we evaluate factors such as prior earnings history, expected future earnings, carry-back and carry-forward periods and tax strategies that could potentially enhance the likelihood of the realization of a deferred tax asset. We recognize, measure, present and disclose in our financial statements, uncertain tax positions that we have taken or expect to take on a tax return. We recognize in our financial statements the impact of tax positions that meet a “more likely than not” threshold, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. Our policy is to classify interest and penalties related to unrecognized tax benefits as income tax expense. During November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes”, which simplifies the presentation of deferred income taxes. This ASU requires that deferred tax assets and liabilities be classified as non-current in a statement of financial position. We early adopted ASU 2015-17 effective October 31, 2015 on a prospective basis. Adoption of this ASU resulted in a reclassification of our net current deferred tax asset to the net non-current deferred tax asset in our Consolidated Balance Sheet as of December 31, 2015. No prior periods were retrospectively adjusted. A provision has not been made for U.S. or additional non-U.S. taxes on $2.9 million of undistributed earnings of international subsidiaries that could be subject to taxation if remitted to the U.S. because we plan to keep these amounts permanently reinvested overseas. To the extent such foreign earnings were remitted in the future a deferred tax liability of $0.8 million would be recorded. |
Comprehensive Income | Comprehensive Income Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Other than reported net income, comprehensive income includes foreign currency translation adjustments, which are disclosed in the accompanying consolidated statements of comprehensive income. There were no reclassifications out of comprehensive income for the years ended December 31, 2015 and 2014. Accumulated other comprehensive loss consisted of foreign currency translation adjustment losses of $4.0 million and $2.4 million as of December 31, 2015 and 2014, respectively. |
Restructuring | Restructuring We record restructuring charges incurred in connection with consolidation or relocation of operations, exited business lines, reductions in force, or distributor terminations. These restructuring charges, which reflect our commitment to a termination or exit plan that will begin within twelve months, are based on estimates of the expected costs associated with site closure, legal matters, contract terminations, severance payments, or other costs directly related to the restructuring. If the actual cost incurred exceeds the estimated cost, an additional charge to earnings will result. If the actual cost is less than the estimated cost, a credit to earnings will be recognized. |
Earnings Per Share | Earnings per Share We compute basic earnings per share by dividing net income available for common stockholders by the weighted average number of shares outstanding during the year. Except where the result would be anti-dilutive to net income per share, diluted earnings per share has been computed using the treasury stock method and reflects the potential vesting of restricted common stock and the potential exercise of stock options, as well as their related income tax effects. The computation of basic and diluted net income per share is as follows: Year ended December 31, 2015 2014 2013 (in thousands, except per share data) Basic: Net income available for common stockholders $ 7,758 $ 3,915 $ 3,202 Weighted average shares outstanding 17,764 16,614 15,317 Basic earnings per share $ 0.44 $ 0.24 $ 0.21 Diluted: Net income available for common stockholders $ 7,758 $ 3,915 $ 3,202 Weighted-average shares outstanding 17,764 16,614 15,317 Common stock equivalents, if dilutive 552 394 447 Shares used in computing diluted earnings per common share 18,316 17,008 15,764 Diluted earnings per share $ 0.42 $ 0.23 $ 0.20 Shares excluded in computing diluted earnings per share as those shares would be anti-dilutive 55 277 373 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements On February 25, 2016, the Financial Accounting Standards Board (FASB) issued its new lease accounting guidance in Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842) The new lease guidance simplifies the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees will no longer be provided with a source of off-balance sheet financing. The standard is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years (i.e., January 1, 2019, for a calendar year entity). Early application is permitted. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. We have not yet determined the impact on our consolidated financial statements. During November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes”, which simplifies the presentation of deferred income taxes. This ASU requires that deferred tax assets and liabilities be classified as non-current in a statement of financial position. We early adopted ASU 2015-17 effective December 31, 2015 on a prospective basis. Adoption of this ASU resulted in a reclassification of our net current deferred tax asset to the net non-current deferred tax asset in our Consolidated Balance Sheet as of December 31, 2015. No prior periods were retrospectively adjusted. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory, On May 28, 2014, the FASB and the International Accounting Standards Board (the “IASB”) issued substantially converged final standards on revenue recognition. The FASB’s Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606), was issued in three parts: (a) Section A, “Summary and Amendments That Create Revenue from Contracts with Customers (Topic 606) and Other Assets and Deferred Costs-Contracts with Customers (Subtopic 340-40),” (b) Section B, “Conforming Amendments to Other Topics and Subtopics in the Codification and Status Tables” and (c) Section C, “Background Information and Basis for Conclusions.” The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The new revenue recognition guidance becomes effective for the Company on January 1, 2018, with early adoption permitted for the Company on January 1, 2017. Entities have the option of using either a full retrospective or a modified approach to adopt the guidance in the ASU. The Company has not yet selected a transition method and is currently evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures. |
Segment Reporting | The FASB establishes standards for reporting information regarding operating segments in financial statements. Operating segments are identified as components of an enterprise that engage in business activities for which separate, discrete financial information is available and are regularly reviewed by the chief operating decision-maker in making decisions on how to allocate resources and assess performance. We view our operations and manage our business as one operating segment. No discrete operating information is prepared by us except for product sales by product line and by legal entity for local reporting purposes. |
Fair Value Measurement | The fair value accounting guidance requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. |
Significant Accounting Polici24
Significant Accounting Policies and Related Matters (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Advertising Costs | Advertising costs are as follows: Year ended December 31, 2015 2014 2013 (in thousands) Advertising expense $ 428 $ 462 $ 421 |
Summary of Allowance for Doubtful Accounts and Sales Returns | The following is a summary of our allowance for doubtful accounts and sales returns: Balance at Additions Deductions Balance at (in thousands) Allowance for doubtful accounts and sales returns: Year ended December 31, 2015 $ 242 $ 182 $ 181 243 Year ended December 31, 2014 263 54 75 242 Year ended December 31, 2013 326 (29 ) 34 263 |
Summary of Property and Equipment | Property and equipment are recorded at cost. Depreciation is provided over the estimated useful lives of the related assets using straight-line method as follows: Description Useful Life Computers and equipment 3–5 years Machinery and equipment 3–10 years Leasehold improvements The shorter of its useful life or lease term |
Computation of Basic and Diluted Net Income per Share | The computation of basic and diluted net income per share is as follows: Year ended December 31, 2015 2014 2013 (in thousands, except per share data) Basic: Net income available for common stockholders $ 7,758 $ 3,915 $ 3,202 Weighted average shares outstanding 17,764 16,614 15,317 Basic earnings per share $ 0.44 $ 0.24 $ 0.21 Diluted: Net income available for common stockholders $ 7,758 $ 3,915 $ 3,202 Weighted-average shares outstanding 17,764 16,614 15,317 Common stock equivalents, if dilutive 552 394 447 Shares used in computing diluted earnings per common share 18,316 17,008 15,764 Diluted earnings per share $ 0.42 $ 0.23 $ 0.20 Shares excluded in computing diluted earnings per share as those shares would be anti-dilutive 55 277 373 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tru-Incise Valvulotome [Member] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the purchase price allocation at the date of the acquisition: Allocated (in thousands) Inventory $ 88 Intangible assets 545 Goodwill 742 Purchase price $ 1,375 |
Acquired Intangible Assets and Related Estimated Useful Lives | The following table reflects the allocation of the acquired intangible assets and related estimated useful lives: Allocated Fair Value Weighted (in thousands) Non-compete agreement $ 120 5.0 years Tradename license 17 3.0 years Technology 391 7.0 years Customer relationships 17 3.0 years Total intangible assets $ 545 |
InaVein LLC [Member] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the fair value of the assets acquired and liabilities assumed at the date of the acquisition: Allocated Fair Value (in thousands) Current assets $ 670 Property and equipment, net 154 Intangible assets 1,143 Goodwill 668 Total assets acquired 2,635 Total liabilities assumed (100 ) $ 2,535 |
Acquired Intangible Assets and Related Estimated Useful Lives | the following table reflects the allocation of the acquired intangible assets and related estimated useful lives: Allocated Weighted (in thousands) Non-compete agreement $ 70 5.0 years Tradename 163 8.0 years Technology 354 6.0 years Customer relationships 556 7.0 years Total intangible assets $ 1,143 |
Xenotis Pty Ltd [Member] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the fair value of the assets acquired and liabilities assumed at the date of the acquisition: Allocated Fair Value (in thousands) Current assets $ 2,110 Property and equipment, net 2,054 Intangible assets 1,794 Goodwill 2,475 Total assets acquired 8,433 Total liabilities assumed (1,731 ) Purchase price $ 6,702 |
Acquired Intangible Assets and Related Estimated Useful Lives | The following table reflects the allocation of the acquired intangible assets and related estimated useful lives: Allocated Weighted (in thousands) Non-compete agreement $ 135 5.0 years Tradename 142 7.0 years Technology 1,465 7.0 years Customer relationships 52 7.0 years Total intangible assets $ 1,794 |
AngioScope [Member] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the fair value of the assets acquired and liabilities assumed at the date of the acquisition: Allocated (in thousands) Inventory $ 26 Property and equipment, net 38 Intangible assets 276 Goodwill 80 Total assets acquired 420 Total liabilities assumed — Purchase price $ 420 |
Acquired Intangible Assets and Related Estimated Useful Lives | The following table reflects the allocation of the acquired intangible assets and related estimated useful lives: Allocated Weighted (in thousands) Non-compete agreement $ 3 2.0 years Tradename 28 7.0 years Technology 163 7.0 years Customer relationships 82 9.0 years Total intangible assets $ 276 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Summary of Inventory | Inventory consists of the following: As of December 31, 2015 2014 (in thousands) Raw materials $ 3,062 $ 3,367 Work-in-process 2,681 3,464 Finished products 9,462 9,883 Total inventory $ 15,205 $ 16,714 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment consists of the following: As of December 31, 2015 2014 (in thousands) Computers and equipment $ 2,560 $ 2,399 Machinery and equipment 8,264 7,278 Building and leasehold improvements 6,143 5,721 Gross property and equipment 16,967 15,398 Less accumulated depreciation (9,945 ) (8,520 ) Property and equipment, net $ 7,022 $ 6,878 |
Depreciation Expense | Depreciation expense is as follows: Year ended December 31, 2015 2014 2013 (in thousands) Depreciation expense $ 1,881 $ 1,795 $ 1,573 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Goodwill consists of the following: As of December 31, 2015 2014 (in thousands) Balance at beginning of year $ 17,281 $ 15,031 Additions for acquisitions 742 2,555 Effects of currency exchange (234 ) (305 ) Balance at end of year $ 17,789 $ 17,281 |
Components of Identifiable Intangible Assets | Other intangibles consist of the following: 2015 2014 Gross Accumulated Net Carrying Gross Accumulated Net (in thousands) Product technology $ 7,113 $ 3,247 $ 3,866 $ 7,134 $ 2,777 $ 4,357 Trademarks and licenses 1,560 1,230 330 1,557 1,074 483 Customer relationships 3,801 2,143 1,658 3,694 1,781 1,913 Other intangible assets 1,297 815 482 1,084 680 404 Total identifiable intangible assets $ 13,771 $ 7,435 $ 6,336 $ 13,469 $ 6,312 $ 7,157 |
Amortization Expense Included in General and Administrative Expense | Amortization expense is included in general and administrative expense and is as follows: Year ended December 31, 2015 2014 2013 (in thousands) Amortization expense $ 1,513 $ 1,539 $ 1,220 |
Estimated Amortization Expense for Each of Five Succeeding Fiscal Years | Estimated amortization expense for each of the five succeeding fiscal years, based upon the intangible assets at December 31, 2015, is as follows: Year ended December 31, 2016 2017 2018 2019 2020 (in thousands) Amortization expense $ 1,469 $ 1,212 $ 1,025 $ 838 $ 585 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
Accrued Expenses | Accrued expenses consist of the following: As of December 31, 2015 2014 (in thousands) Compensation and related taxes $ 6,062 $ 4,819 Income and other taxes 483 444 Professional fees 530 496 Other 1,762 1,720 Total $ 8,837 $ 7,479 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Rent Expenses | Rent expense was as follows: Year ended December 31, 2015 2014 2013 (in thousands) Rent expense $ 1,506 $ 1,435 $ 1,264 |
Minimum Rental Commitments Under All Non-Cancelable Operating Leases With Initial or Remaining Terms of More Than One Year | At December 31, 2015, the minimum rental commitments under all non-cancelable operating leases with initial or remaining terms of more than one year, for each of the following fiscal years, are as follows: Year ended December 31, 2016 2017 2018 2019 2020 Thereafter (in thousands) Operating leases $ 1,258 $ 973 $ 996 $ 901 $ 868 $ 2,608 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income (Loss) Before Income Taxes | Income (loss) before income taxes is as follows: Year ended December 31, 2015 2014 2013 (in thousands) United States $ 10,469 $ 5,341 $ 4,692 Foreign 955 979 (364 ) Total $ 11,424 $ 6,320 $ 4,328 |
The Provision (Benefit) for Income Taxes | The provision (benefit) for income taxes is as follows: Year ended December 31, 2015 2014 2013 (in thousands) Current: Federal $ 3,218 $ 2,058 $ 504 State 333 238 143 Foreign 499 181 192 4,050 2,477 839 Deferred: Federal (12 ) (176 ) 1,968 State (466 ) (14 ) (84 ) Foreign 94 118 (1,597 ) (384 ) (72 ) 287 Provision for income taxes $ 3,666 $ 2,405 $ 1,126 |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of beginning and ending amount of our unrecognized tax benefits is as follows: 2015 2014 2013 (in thousands) Unrecognized tax benefits at the beginning of year $ 23 $ 111 $ 321 Additions for tax positions of current year — 20 — Additions for tax positions of prior years 59 — — Reductions for settlements with taxing authorities. — (33 ) — Reductions for lapses of the applicable statutes of limitations — (75 ) (210 ) Unrecognized tax benefits at the end of the year $ 82 $ 23 $ 111 |
Deferred Taxes | Deferred taxes are attributable to the following temporary differences: As of December 31, 2015 2014 (in thousands) Deferred tax assets: Inventory $ 589 $ 524 Net operating loss carryforwards 2,786 3,296 Tax credit carryforwards 654 585 Capital loss carryforwards 1,090 1,306 Reserves and accruals 631 434 Intangible assets 996 1,040 Stock options 355 312 Other 16 48 Total deferred tax assets 7,117 7,545 Deferred tax liabilities: Property and equipment (668 ) (706 ) Goodwill (3,504 ) (3,130 ) Foreign branch deferred offset (1,176 ) (1,411 ) Total deferred tax liabilities (5,348 ) (5,247 ) Net deferred tax assets before valuation allowance 1,769 2,298 Valuation allowance (2,242 ) (3,157 ) Net deferred tax liabiltity $ (473 ) $ (859 ) Deferred tax classification Short-term deferred tax asset $ — $ 758 Short-term deferred tax liability — (116 ) Net short-term deferred tax asset $ — $ 642 Long-term deferred tax asset $ 1,205 $ 1,418 Long-term deferred tax liability (1,678 ) (2,919 ) Net long-term deferred tax liability $ (473 ) $ (1,501 ) Net deferred tax liability $ (473 ) $ (859 ) |
Reconciliation of the Federal Statutory Rate to Effective Tax Rate | A reconciliation of the Federal statutory rate to our effective tax rate is as follows: 2015 2014 2013 Federal statutory rate 34.0 % 34.0 % 34.0 % State tax, net of federal benefit (2.1 %) 2.3 % 0.4 % Effect of foreign taxes 1.4 % (1.4 %) (4.1 %) Subpart F income 2.2 % 1.7 % 2.2 % Valuation allowance 0.4 % 0.1 % (38.2 %) Foreign deferred tax liability offset (0.9 %) (1.9 %) 36.1 % Manufacturing deduction (2.8 %) (3.5 %) (2.9 %) Research & development tax credits (1.5 %) (2.4 %) (8.0 %) Stock options 0.6 % 4.3 % 3.6 % Uncertain tax positions 0.6 % (0.2 %) (5.1 %) Italian permanent differences 0.0 % 3.2 % 5.2 % Other permanent differences 1.3 % 3.1 % 3.0 % Other (1.1 %) (1.3 %) (0.2 %) Effective tax rate 32.1 % 38.0 % 26.0 % |
Summary of Tax Years Subject to Examination in Most Significant Tax Jurisdictions | As of December 31, 2015, a summary of the tax years that remain subject to examination in our most significant tax jurisdictions are: United States 2012 and forward Foreign 2008 and forward |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Fair Value of Employee Stock Options Using Weighted Average Assumptions | We have computed the fair value of employee stock options using the following weighted average assumptions: 2015 2014 2013 Dividend yield 1.4 % 1.8 % 1.8 % Volatility 28.6 % 45.2 % 57.8 % Risk-free interest rate 1.8 % 2.0 % 1.5 % Weighted average expected option term (in years) 5.6 5.5 5.5 Weighted average fair value per share of options granted $ 2.80 $ 2.81 $ 3.01 Aggregate intrinsic value of options exercised $ 6,534,800 $ 819,478 $ 1,009,726 |
Summary of Option Activity | A summary of option activity as of December 31, 2015 and the year then ended is presented below: Number of Weighted Weighted Aggregate (in years) Balance outstanding at December 31, 2014 2,238,734 $ 6.42 4.41 $ 3,767,658 Granted 511,227 $ 11.72 Exercised (1) (906,936 ) $ 5.33 $ 6,534,800 Canceled / Expired (107,045 ) $ 9.06 Balance outstanding at December 31, 2015 (2) 1,735,980 $ 8.39 4.28 $ 15,381,584 Vested and exercisable at December 31, 2015 517,932 $ 6.35 2.71 $ 5,645,756 Expected to vest at December 31, 2015 (3) 902,258 $ 9.11 4.85 Total 1,420,190 (1) The aggregate intrinsic value represents the difference between the exercise price and the closing price of our stock on the date of exercise. (2) The aggregate intrinsic value represents the difference between the exercise price and $17.25, the closing price of our stock on December 31, 2015, for all in-the-money options outstanding. (3) Options outstanding that are expected to vest are net of estimated future option forfeitures |
Summary of RSU Activity | A summary of our RSU activity is as follows: Weighted Average Grant Date Shares Fair Value Balance outstanding at December 31, 2014 220,298 $ 7.04 Granted 62,942 $ 11.32 Vested (1) (61,362 ) $ 6.84 Canceled (30,533 ) $ 7.47 Balance outstanding at December 31, 2015 191,345 $ 8.45 (1) The number of RSUs vested includes the shares that we withheld on behalf of employees to satisfy minimum statutory tax withholding requirements. |
Summary of Repurchases | A summary of our repurchases is as follows: 2015 2014 Shares of common stock repurchased 23,928 27,092 Average per share repurchase price $ 11.12 $ 7.80 Aggregage purchase price $ 266,090 $ 211,379 |
Share-Based Compensation Expense | The components of stock-based compensation expense included in the consolidated statements of operations are as follows: 2015 2014 2013 (in thousands) Stock option awards $ 992 $ 917 $ 789 Restricted stock units 432 385 464 Total stock-based compensation $ 1,424 $ 1,302 $ 1,253 |
Schedule of Stock-based Compensation Expenses Included in Statements of Operations | Stock-based compensation is included in our statements of operations as follows: 2015 2014 2013 (in thousands) Cost of sales $ 165 $ 150 $ 148 Sales and marketing 284 309 295 General and administrative 869 757 726 Research and development 106 86 84 Total stock-based compensation $ 1,424 $ 1,302 $ 1,253 |
Summary of Stock Repurchase Activity | The following is a summary of the stock repurchase activity for the year ended December 31, 2013: December 31, 2013 Shares Total Purchased Purchased ( $ in thousands) Share repurchases 15,323 $ 88 |
Dividend Activity | The dividend activity for the periods presented is as follows: Record Date Payment Date Per Share Amount Dividend Payment (in thousands) Fiscal Year 2015 March 20, 2015 April 3, 2015 $ 0.040 $ 700 May 22, 2015 June 5, 2015 $ 0.040 $ 705 August 20, 2015 September 3, 2015 $ 0.040 $ 715 November 20, 2015 December 4, 2015 $ 0.040 $ 725 Fiscal Year 2014 March 20, 2014 April 3, 2014 $ 0.035 $ 546 May 22, 2014 June 5, 2014 $ 0.035 $ 547 August 21, 2014 September 4, 2014 $ 0.035 $ 607 November 20, 2014 December 4, 2014 $ 0.035 $ 608 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Components of Restructuring Charges | The components of the restructuring charges were as follows: Year ended December 31, 2014 (in thousands) Severance $ 499 Other 27 Total $ 526 |
Segment and Enterprise-wide D34
Segment and Enterprise-wide Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Net Sales to Unaffiliated Customers by Geography | located in the United States. Net sales to unaffiliated customers by country were as follows: Year ended December 31, 2015 2014 2013 (in thousands) United States $ 45,177 $ 41,545 $ 39,240 Germany 9,090 7,639 6,939 Other countries 24,085 21,913 18,370 Net sales $ 78,352 $ 71,097 $ 64,549 |
Total Property and Equipment Held by Geography | Total property and equipment held by geography were as follows: As of December 31, 2015 2014 (in thousands) United States $ 5,199 $ 4,786 Australia 1,593 1,802 Germany 170 186 Other countries 60 104 Total property and equipment $ 7,022 $ 6,878 |
Supplemental Cash Flow Inform35
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental disclosures of cash flow information are as follows: Year ended December 31, 2015 2014 2013 (in thousands) Cash paid for income taxes, net $ 4,792 $ 2,088 $ 1,019 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Rollforward of the Fair Value as Determined by Level 3 | The following table provides a rollforward of the fair value, as determined by Level 3 inputs, of the contingent consideration. Year ended December 31, 2014 2013 (in thousands) Beginning balance $ 99 $ — Additions — 42 Payments (237 ) — Change in fair value included in earnings 138 57 Ending balance $ — $ 99 |
Quarterly Financial Data (una37
Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Three months ended 2015 March 31 June 30 September 30 December 31 (in thousands, except per share data) Total net sales $ 18,947 $ 19,897 $ 19,025 $ 20,483 Gross profit 13,117 13,130 13,516 14,403 Income from operations 2,309 2,794 3,321 3,089 Net income 1,369 1,767 2,092 2,530 Earnings per share Basic $ 0.08 $ 0.10 $ 0.12 $ 0.14 Diluted $ 0.08 $ 0.10 $ 0.11 $ 0.13 Three months ended 2014 March 31 June 30 September 30 December 31 (in thousands, except per share data) Total net sales $ 16,754 $ 18,161 $ 17,501 $ 18,681 Gross profit 11,224 12,376 12,003 12,828 Income (loss) from operations (231 ) 1,980 1,852 2,739 Net income (loss) (207 ) 1,272 934 1,916 Earnings per share Basic $ (0.01 ) $ 0.08 $ 0.05 $ 0.11 Diluted $ (0.01 ) $ 0.08 $ 0.05 $ 0.11 |
Significant Accounting Polici38
Significant Accounting Policies and Related Matters - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Concentration Risk [Line Items] | |||
Remaining prior period of expiration for return of product | 18 months | ||
Remaining prior period of expiration for return of product for hospital customers | 12 months | ||
Maximum number of days for product return of shipment | 30 days | ||
Cash and cash equivalents with maturity dates | 90 days | ||
Accounts receivable | $ 11,971,000 | $ 10,803,000 | |
Impairment charges | 229,000 | ||
Percentage of goodwill impairment | 50.00% | ||
Impairment charges of goodwill | $ 0 | 0 | $ 0 |
Undistributed earnings | 2,900,000 | ||
Deferred tax liability | 800,000 | ||
Reclassification out of comprehensive income | 0 | 0 | |
Accumulated other comprehensive loss foreign currency translation adjustment losses | $ 4,000,000 | $ 2,400,000 | |
Commitment to a termination or exit plan | 12 months | ||
Foreign Deposits [Member] | |||
Concentration Risk [Line Items] | |||
Cash balances held outside United States | $ 4,700,000 | ||
Maximum [Member] | |||
Concentration Risk [Line Items] | |||
Cash balances insured by the FDCIC | $ 250,000 | ||
Intangible assets useful lives | 13 years | ||
Minimum [Member] | |||
Concentration Risk [Line Items] | |||
Intangible assets useful lives | 1 year | ||
United States [Member] | Maximum [Member] | |||
Concentration Risk [Line Items] | |||
Accounts receivable due period | 90 days | ||
United States [Member] | Minimum [Member] | |||
Concentration Risk [Line Items] | |||
Accounts receivable due period | 30 days | ||
Europe [Member] | Maximum [Member] | |||
Concentration Risk [Line Items] | |||
Accounts receivable due period | 240 days | ||
Europe [Member] | Minimum [Member] | |||
Concentration Risk [Line Items] | |||
Accounts receivable due period | 90 days | ||
Italy [Member] | |||
Concentration Risk [Line Items] | |||
Accounts receivable | $ 1,000,000 | ||
Spain [Member] | |||
Concentration Risk [Line Items] | |||
Accounts receivable | $ 500,000 |
Significant Accounting Polici39
Significant Accounting Policies and Related Matters - Summary of Advertising Costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounting Policies [Abstract] | |||
Advertising expense | $ 428 | $ 462 | $ 421 |
Significant Accounting Polici40
Significant Accounting Policies and Related Matters - Summary of Allowance for Doubtful Accounts and Sales Returns (Detail) - Allowance for Doubtful Accounts and Sales Returns [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $ 242 | $ 263 | $ 326 |
Additions (recoveries) charged to Income | 182 | 54 | (29) |
Deductions from Reserves | 181 | 75 | 34 |
Balance at End of Period | $ 243 | $ 242 | $ 263 |
Significant Accounting Polici41
Significant Accounting Policies and Related Matters - Summary of Property and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
Computers and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 5 years |
Computers and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 3 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 10 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 3 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | The shorter of its useful life or lease term |
Significant Accounting Polici42
Significant Accounting Policies and Related Matters - Computation of Basic and Diluted Net Income per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Basic: | |||||||||||
Net income available for common stockholders | $ 2,530 | $ 2,092 | $ 1,767 | $ 1,369 | $ 1,916 | $ 934 | $ 1,272 | $ (207) | $ 7,758 | $ 3,915 | $ 3,202 |
Weighted average shares outstanding | 17,764 | 16,614 | 15,317 | ||||||||
Basic earnings per share | $ 0.14 | $ 0.12 | $ 0.10 | $ 0.08 | $ 0.11 | $ 0.05 | $ 0.08 | $ (0.01) | $ 0.44 | $ 0.24 | $ 0.21 |
Diluted: | |||||||||||
Net income available for common stockholders | $ 2,530 | $ 2,092 | $ 1,767 | $ 1,369 | $ 1,916 | $ 934 | $ 1,272 | $ (207) | $ 7,758 | $ 3,915 | $ 3,202 |
Weighted-average shares outstanding | 17,764 | 16,614 | 15,317 | ||||||||
Common stock equivalents, if dilutive | 552 | 394 | 447 | ||||||||
Shares used in computing diluted earnings per common share | 18,316 | 17,008 | 15,764 | ||||||||
Diluted earnings per share | $ 0.13 | $ 0.11 | $ 0.10 | $ 0.08 | $ 0.11 | $ 0.05 | $ 0.08 | $ (0.01) | $ 0.42 | $ 0.23 | $ 0.20 |
Shares excluded in computing diluted earnings per share as those shares would be anti-dilutive | 55 | 277 | 373 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Additional Information (Detail) $ in Thousands | Nov. 30, 2014USD ($) | Aug. 31, 2015USD ($) | Jul. 31, 2015USD ($) | May. 31, 2015USD ($)Agreement | Oct. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Aug. 31, 2014USD ($) | Aug. 31, 2013USD ($) | Jul. 31, 2013USD ($) | Oct. 31, 2012USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Oct. 31, 2013USD ($) |
Business Acquisition [Line Items] | |||||||||||||||
Weighted average useful life | 6 years | ||||||||||||||
Goodwill | $ 17,789 | $ 17,281 | $ 15,031 | ||||||||||||
Gain on divestiture | $ 360 | ||||||||||||||
Impairment charges | 229 | ||||||||||||||
Non-Occlusive Modeling Catheter Divestiture [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Impairment charges | 200 | ||||||||||||||
Charge to cost of sales | 300 | ||||||||||||||
Merit Medical Ireland Limited [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Asset sales agreement amount | $ 400 | ||||||||||||||
Gain on divestiture | $ 400 | ||||||||||||||
XenoSure [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Purchase price for acquisition of assets and rights | $ 4,600 | ||||||||||||||
Cash paid for assets purchased | 4,300 | ||||||||||||||
Cash paid for manufacturing and distribution rights | $ 300 | ||||||||||||||
Intangible assets | 2,800 | ||||||||||||||
Goodwill | $ 1,800 | ||||||||||||||
Maximum goodwill deductible for tax purposes | 15 years | ||||||||||||||
Weighted average useful life | 12 years | ||||||||||||||
XenoSure [Member] | Non-Compete Agreement [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Acquisition date of assets and rights | Oct. 31, 2012 | ||||||||||||||
Clinical Instruments International, Inc [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Purchase price for acquisition of assets and rights | $ 1,100 | ||||||||||||||
Acquisition date of assets and rights | Jul. 30, 2013 | ||||||||||||||
Cash paid for assets purchased | $ 200 | 900 | |||||||||||||
Intangible assets | 300 | ||||||||||||||
Goodwill | 600 | ||||||||||||||
Maximum goodwill deductible for tax purposes | 15 years | ||||||||||||||
Weighted average useful life | 5 years 8 months 12 days | ||||||||||||||
Inventory | $ 200 | ||||||||||||||
InaVein LLC [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Purchase price for acquisition of assets and rights | $ 2,500 | ||||||||||||||
Acquisition date of assets and rights | Aug. 30, 2013 | ||||||||||||||
Cash paid for assets purchased | $ 400 | 2,100 | |||||||||||||
Intangible assets | 1,143 | ||||||||||||||
Goodwill | $ 700 | ||||||||||||||
Maximum goodwill deductible for tax purposes | 15 years | ||||||||||||||
Acquisition-related contingent consideration | $ 1,400 | ||||||||||||||
Fair value of contingent consideration | $ 100 | ||||||||||||||
Assumed liabilities | $ 200 | 100 | |||||||||||||
Goodwill | 668 | ||||||||||||||
InaVein LLC [Member] | Non-Compete Agreement [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Intangible assets | $ 70 | ||||||||||||||
Weighted average useful life | 5 years | ||||||||||||||
Xenotis Pty Ltd [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Purchase price for acquisition of assets and rights | 6,700 | ||||||||||||||
Acquisition date of assets and rights | Aug. 31, 2014 | ||||||||||||||
Cash paid for assets purchased | $ 1,400 | 5,100 | |||||||||||||
Intangible assets | 1,794 | ||||||||||||||
Assumed liabilities | 1,731 | ||||||||||||||
Adjustment to tangible asset acquired | $ 200 | ||||||||||||||
Business acquisition, assumed debt | 1,100 | ||||||||||||||
Goodwill | 2,475 | ||||||||||||||
Deferred tax assets acquired | 2,400 | ||||||||||||||
Xenotis Pty Ltd [Member] | Non-Compete Agreement [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Intangible assets | $ 135 | ||||||||||||||
Weighted average useful life | 5 years | ||||||||||||||
Xenotis Pty Ltd [Member] | Europe [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Purchase price for acquisition of assets and rights | $ 1,300 | ||||||||||||||
Cash paid for assets purchased | $ 1,100 | ||||||||||||||
Intangible assets | $ 900 | ||||||||||||||
Weighted average useful life | 5 years | ||||||||||||||
Inventory | $ 400 | ||||||||||||||
AngioScope [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Purchase price for acquisition of assets and rights | $ 400 | ||||||||||||||
Cash paid for assets purchased | 300 | ||||||||||||||
Intangible assets | 276 | ||||||||||||||
Goodwill | $ 100 | ||||||||||||||
Maximum goodwill deductible for tax purposes | 15 years | ||||||||||||||
Inventory | $ 26 | ||||||||||||||
Goodwill | 80 | ||||||||||||||
Balance payable to Clinical Instruments | 100 | ||||||||||||||
AngioScope [Member] | Non-Compete Agreement [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Intangible assets | $ 3 | ||||||||||||||
Weighted average useful life | 2 years | ||||||||||||||
Tru-Incise Valvulotome [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Purchase price for acquisition of assets and rights | $ 1,400 | ||||||||||||||
Acquisition date of assets and rights | May 31, 2015 | ||||||||||||||
Cash paid for assets purchased | 1,100 | ||||||||||||||
Intangible assets | 545 | ||||||||||||||
Maximum goodwill deductible for tax purposes | 15 years | ||||||||||||||
Inventory | 88 | ||||||||||||||
Goodwill | 742 | ||||||||||||||
Balance payable to Clinical Instruments | 300 | ||||||||||||||
Tru-Incise Valvulotome [Member] | Non-Compete Agreement [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Intangible assets | $ 120 | ||||||||||||||
Weighted average useful life | 5 years | ||||||||||||||
UreSil, LLC, Distributors [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Purchase price for acquisition of assets and rights | $ 200 | ||||||||||||||
Intangible assets | $ 200 | ||||||||||||||
Weighted average useful life | 3 years | ||||||||||||||
Number of definitive agreements | Agreement | 8 | ||||||||||||||
Grex Medical Oy [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Purchase price for acquisition of assets and rights | $ 200 | ||||||||||||||
Acquisition date of assets and rights | Jan. 1, 2016 |
Acquisitions and Divestitures44
Acquisitions and Divestitures - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | May. 31, 2015 | Dec. 31, 2014 | Oct. 31, 2014 | Sep. 30, 2014 | Aug. 31, 2014 | Dec. 31, 2013 | Aug. 31, 2013 |
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 17,789 | $ 17,281 | $ 15,031 | |||||
InaVein LLC [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Current assets | $ 670 | |||||||
Property and equipment, net | 154 | |||||||
Intangible assets | 1,143 | |||||||
Goodwill | 668 | |||||||
Total assets acquired | 2,635 | |||||||
Total liabilities assumed | $ (200) | (100) | ||||||
Purchase price | $ 2,535 | |||||||
Xenotis Pty Ltd [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Current assets | $ 2,110 | |||||||
Property and equipment, net | 2,054 | |||||||
Intangible assets | 1,794 | |||||||
Goodwill | 2,475 | |||||||
Total assets acquired | 8,433 | |||||||
Total liabilities assumed | (1,731) | |||||||
Purchase price | $ 6,702 | |||||||
AngioScope [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Inventory | $ 26 | |||||||
Property and equipment, net | 38 | |||||||
Intangible assets | 276 | |||||||
Goodwill | 80 | |||||||
Total assets acquired | 420 | |||||||
Purchase price | $ 420 | |||||||
Tru-Incise Valvulotome [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Inventory | $ 88 | |||||||
Intangible assets | 545 | |||||||
Goodwill | 742 | |||||||
Purchase price | $ 1,375 |
Acquisitions and Divestitures45
Acquisitions and Divestitures - Acquired Intangible Assets and Related Estimated Useful Lives (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
May. 31, 2015 | Sep. 30, 2014 | Aug. 31, 2014 | Aug. 31, 2013 | Dec. 31, 2015 | |
Business Acquisition [Line Items] | |||||
Weighted average useful life | 6 years | ||||
InaVein LLC [Member] | |||||
Business Acquisition [Line Items] | |||||
Allocated fair value | $ 1,143 | ||||
InaVein LLC [Member] | Non-Compete Agreement [Member] | |||||
Business Acquisition [Line Items] | |||||
Allocated fair value | $ 70 | ||||
Weighted average useful life | 5 years | ||||
InaVein LLC [Member] | Trade Name [Member] | |||||
Business Acquisition [Line Items] | |||||
Allocated fair value | $ 163 | ||||
Weighted average useful life | 8 years | ||||
InaVein LLC [Member] | Technology [Member] | |||||
Business Acquisition [Line Items] | |||||
Allocated fair value | $ 354 | ||||
Weighted average useful life | 6 years | ||||
InaVein LLC [Member] | Customer Relationships [Member] | |||||
Business Acquisition [Line Items] | |||||
Allocated fair value | $ 556 | ||||
Weighted average useful life | 7 years | ||||
Xenotis Pty Ltd [Member] | |||||
Business Acquisition [Line Items] | |||||
Allocated fair value | $ 1,794 | ||||
Xenotis Pty Ltd [Member] | Non-Compete Agreement [Member] | |||||
Business Acquisition [Line Items] | |||||
Allocated fair value | $ 135 | ||||
Weighted average useful life | 5 years | ||||
Xenotis Pty Ltd [Member] | Trade Name [Member] | |||||
Business Acquisition [Line Items] | |||||
Allocated fair value | $ 142 | ||||
Weighted average useful life | 7 years | ||||
Xenotis Pty Ltd [Member] | Technology [Member] | |||||
Business Acquisition [Line Items] | |||||
Allocated fair value | $ 1,465 | ||||
Weighted average useful life | 7 years | ||||
Xenotis Pty Ltd [Member] | Customer Relationships [Member] | |||||
Business Acquisition [Line Items] | |||||
Allocated fair value | $ 52 | ||||
Weighted average useful life | 7 years | ||||
AngioScope [Member] | |||||
Business Acquisition [Line Items] | |||||
Allocated fair value | $ 276 | ||||
AngioScope [Member] | Non-Compete Agreement [Member] | |||||
Business Acquisition [Line Items] | |||||
Allocated fair value | $ 3 | ||||
Weighted average useful life | 2 years | ||||
AngioScope [Member] | Trade Name [Member] | |||||
Business Acquisition [Line Items] | |||||
Allocated fair value | $ 28 | ||||
Weighted average useful life | 7 years | ||||
AngioScope [Member] | Technology [Member] | |||||
Business Acquisition [Line Items] | |||||
Allocated fair value | $ 163 | ||||
Weighted average useful life | 7 years | ||||
AngioScope [Member] | Customer Relationships [Member] | |||||
Business Acquisition [Line Items] | |||||
Allocated fair value | $ 82 | ||||
Weighted average useful life | 9 years | ||||
Tru-Incise Valvulotome [Member] | |||||
Business Acquisition [Line Items] | |||||
Allocated fair value | $ 545 | ||||
Tru-Incise Valvulotome [Member] | Non-Compete Agreement [Member] | |||||
Business Acquisition [Line Items] | |||||
Allocated fair value | $ 120 | ||||
Weighted average useful life | 5 years | ||||
Tru-Incise Valvulotome [Member] | Technology [Member] | |||||
Business Acquisition [Line Items] | |||||
Allocated fair value | $ 391 | ||||
Weighted average useful life | 7 years | ||||
Tru-Incise Valvulotome [Member] | Customer Relationships [Member] | |||||
Business Acquisition [Line Items] | |||||
Allocated fair value | $ 17 | ||||
Weighted average useful life | 3 years | ||||
Tru-Incise Valvulotome [Member] | Tradename License [Member] | |||||
Business Acquisition [Line Items] | |||||
Allocated fair value | $ 17 | ||||
Weighted average useful life | 3 years |
Inventory - Summary of Inventor
Inventory - Summary of Inventory (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 3,062 | $ 3,367 |
Work-in-process | 2,681 | 3,464 |
Finished products | 9,462 | 9,883 |
Total inventory | $ 15,205 | $ 16,714 |
Inventory - Additional Informat
Inventory - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Inventory on consignment | $ 1.1 | $ 0.8 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | $ 16,967 | $ 15,398 |
Less accumulated depreciation | (9,945) | (8,520) |
Property and equipment, net | 7,022 | 6,878 |
Computers and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | 2,560 | 2,399 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | 8,264 | 7,278 |
Building and Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | $ 6,143 | $ 5,721 |
Property and Equipment - Deprec
Property and Equipment - Depreciation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 1,881 | $ 1,795 | $ 1,573 |
Goodwill and Other Intangible50
Goodwill and Other Intangibles - Schedule of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Balance at beginning of year | $ 17,281 | $ 15,031 |
Additions for acquisitions | 742 | 2,555 |
Effects of currency exchange | (234) | (305) |
Balance at end of year | $ 17,789 | $ 17,281 |
Goodwill and Other Intangible51
Goodwill and Other Intangibles - Components of Identifiable Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 13,771 | $ 13,469 |
Accumulated Amortization | 7,435 | 6,312 |
Net Carrying Value of Intangible Assets | 6,336 | 7,157 |
Product Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 7,113 | 7,134 |
Accumulated Amortization | 3,247 | 2,777 |
Net Carrying Value of Intangible Assets | 3,866 | 4,357 |
Trademarks and Licenses [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 1,560 | 1,557 |
Accumulated Amortization | 1,230 | 1,074 |
Net Carrying Value of Intangible Assets | 330 | 483 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 3,801 | 3,694 |
Accumulated Amortization | 2,143 | 1,781 |
Net Carrying Value of Intangible Assets | 1,658 | 1,913 |
Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 1,297 | 1,084 |
Accumulated Amortization | 815 | 680 |
Net Carrying Value of Intangible Assets | $ 482 | $ 404 |
Goodwill and Other Intangible52
Goodwill and Other Intangibles - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average amortization period for intangibles | 6 years |
Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets useful lives | 13 years |
Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets useful lives | 1 year |
Goodwill and Other Intangible53
Goodwill and Other Intangibles - Amortization Expense Included in General and Administrative Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 1,513 | $ 1,539 | $ 1,220 |
Goodwill and Other Intangible54
Goodwill and Other Intangibles - Estimated Amortization Expense for Each of Five Succeeding Fiscal Years (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Amortization expense, Fiscal Year 2016 | $ 1,469 |
Amortization expense, Fiscal Year 2017 | 1,212 |
Amortization expense, Fiscal Year 2018 | 1,025 |
Amortization expense, Fiscal Year 2019 | 838 |
Amortization expense, Fiscal Year 2020 | $ 585 |
Accrued Expenses - Accrued Expe
Accrued Expenses - Accrued Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||
Compensation and related taxes | $ 6,062 | $ 4,819 |
Income and other taxes | 483 | 444 |
Professional fees | 530 | 496 |
Other | 1,762 | 1,720 |
Total | $ 8,837 | $ 7,479 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Loss Contingencies [Line Items] | ||
Commitments to purchase inventory | $ 2,800,000 | |
Purchase commitments inventory expire year | 2,017 | |
Assets Held under Capital Leases [Member] | ||
Loss Contingencies [Line Items] | ||
Assets held under capital leases | $ 0 | $ 0 |
Commitments and Contingencies57
Commitments and Contingencies - Summary of Rent Expenses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rent expense | $ 1,506 | $ 1,435 | $ 1,264 |
Commitments and Contingencies58
Commitments and Contingencies - Minimum Rental Commitments Under All Non-Cancelable Operating Leases with Initial or Remaining Terms of More Than One Year (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Operating leases, Fiscal Year 2016 | $ 1,258 |
Operating leases, Fiscal Year 2017 | 973 |
Operating leases, Fiscal Year 2018 | 996 |
Operating leases, Fiscal Year 2019 | 901 |
Operating leases, Fiscal Year 2020 | 868 |
Operating leases, Thereafter | $ 2,608 |
Income Taxes - Income (Loss) Be
Income Taxes - Income (Loss) Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 10,469 | $ 5,341 | $ 4,692 |
Foreign | 955 | 979 | (364) |
Total | $ 11,424 | $ 6,320 | $ 4,328 |
Income Taxes - The Provision (B
Income Taxes - The Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | |||
Federal | $ 3,218 | $ 2,058 | $ 504 |
State | 333 | 238 | 143 |
Foreign | 499 | 181 | 192 |
Current, Total | 4,050 | 2,477 | 839 |
Deferred: | |||
Federal | (12) | (176) | 1,968 |
State | (466) | (14) | (84) |
Foreign | 94 | 118 | (1,597) |
Deferred, Total | (384) | (72) | 287 |
Provision for income taxes | $ 3,666 | $ 2,405 | $ 1,126 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Examination [Line Items] | ||||
Unrecognized tax benefits exclusive of interest and penalties, gross | $ 82,000 | $ 23,000 | $ 111,000 | $ 321,000 |
Statute of limitations expiration period | Through 2,024 | |||
Valuation allowances | $ 2,242,000 | 3,157,000 | ||
Net operating loss carryforwards | 2,786,000 | 3,296,000 | ||
Capital loss carryforward | 1,090,000 | $ 1,306,000 | ||
Undistributed earnings | 2,900,000 | |||
Deferred tax liability | $ 800,000 | |||
Income tax examination period | In October 2014, the French tax authority completed an audit of our French subsidiary for the tax years 2011 through 2013. | |||
Additional income taxes | $ 39,000 | |||
German Tax Authority [Member] | ||||
Income Tax Examination [Line Items] | ||||
Income tax examination period | In October 2014, the German tax authority completed an audit of our German subsidiary for the tax years 2009 through 2012. | |||
Certain Deferred Tax Assets [Member] | ||||
Income Tax Examination [Line Items] | ||||
Valuation allowances | $ 400,000 | |||
Australia [Member] | Xenotis Pty Ltd [Member] | ||||
Income Tax Examination [Line Items] | ||||
Valuation allowances | 2,000,000 | |||
Foreign [Member] | Australia [Member] | ||||
Income Tax Examination [Line Items] | ||||
Net operating loss carryforwards | 4,600,000 | |||
Capital loss carryforward | 3,600,000 | |||
Foreign [Member] | France [Member] | ||||
Income Tax Examination [Line Items] | ||||
Net operating loss carryforwards | 2,700,000 | |||
Foreign [Member] | Spain [Member] | ||||
Income Tax Examination [Line Items] | ||||
Net operating loss carryforwards | $ 1,100,000 | |||
Net operating loss carryforwards, Expiration date | 2,029 | |||
Foreign [Member] | Italy [Member] | ||||
Income Tax Examination [Line Items] | ||||
Net operating loss carryforwards | $ 600,000 | |||
Foreign [Member] | Sweden [Member] | ||||
Income Tax Examination [Line Items] | ||||
Net operating loss carryforwards | 100,000 | |||
Foreign [Member] | Switzerland [Member] | ||||
Income Tax Examination [Line Items] | ||||
Net operating loss carryforwards | $ 100,000 | |||
Net operating loss carryforwards, Expiration date | 2,020 | |||
Foreign [Member] | Norway [Member] | ||||
Income Tax Examination [Line Items] | ||||
Net operating loss carryforwards | $ 100,000 | |||
State and Local Jurisdiction [Member] | ||||
Income Tax Examination [Line Items] | ||||
Tax credit carryforwards | $ 1,000,000 | |||
State tax credit carryforwards, expiration date | 2,030 | |||
State and Local Jurisdiction [Member] | Excess Stock Compensation Deductions [Member] | ||||
Income Tax Examination [Line Items] | ||||
Tax credit carryforwards | $ 10,000 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits at the beginning of year | $ 23 | $ 111 | $ 321 |
Additions for tax positions of current year | 20 | ||
Additions for tax positions of prior years | 59 | ||
Reductions for settlements with taxing authorities | (33) | ||
Reductions for lapses of the applicable statutes of limitations | (75) | (210) | |
Unrecognized tax benefits at the end of the year | $ 82 | $ 23 | $ 111 |
Income Taxes - Deferred Taxes (
Income Taxes - Deferred Taxes (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Inventory | $ 589 | $ 524 |
Net operating loss carryforwards | 2,786 | 3,296 |
Tax credit carryforwards | 654 | 585 |
Capital loss carryforwards | 1,090 | 1,306 |
Reserves and accruals | 631 | 434 |
Intangible assets | 996 | 1,040 |
Stock options | 355 | 312 |
Other | 16 | 48 |
Total deferred tax assets | 7,117 | 7,545 |
Deferred tax liabilities: | ||
Property and equipment | (668) | (706) |
Goodwill | (3,504) | (3,130) |
Foreign branch deferred offset | (1,176) | (1,411) |
Total deferred tax liabilities | (5,348) | (5,247) |
Net deferred tax assets before valuation allowance | 1,769 | 2,298 |
Valuation allowance | (2,242) | (3,157) |
Net deferred tax liability | (473) | (859) |
Deferred tax classification | ||
Short-term deferred tax asset | 758 | |
Short-term deferred tax liability | (116) | |
Net short-term deferred tax asset | 642 | |
Long-term deferred tax asset | 1,205 | 1,418 |
Long-term deferred tax liability | (1,678) | (2,919) |
Net long-term deferred tax liability | (473) | (1,501) |
Net deferred tax liability | $ (473) | $ (859) |
Income Taxes - Reconciliation64
Income Taxes - Reconciliation of the Federal Statutory Rate to Effective Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 34.00% | 34.00% | 34.00% |
State tax, net of federal benefit | (2.10%) | 2.30% | 0.40% |
Effect of foreign taxes | 1.40% | (1.40%) | (4.10%) |
Subpart F income | 2.20% | 1.70% | 2.20% |
Valuation allowance | 0.40% | 0.10% | (38.20%) |
Foreign deferred tax liability offset | (0.90%) | (1.90%) | 36.10% |
Manufacturing deduction | (2.80%) | (3.50%) | (2.90%) |
Research & development tax credits | (1.50%) | (2.40%) | (8.00%) |
Stock options | 0.60% | 4.30% | 3.60% |
Uncertain tax positions | 0.60% | (0.20%) | (5.10%) |
Italian permanent differences | 0.00% | 3.20% | 5.20% |
Other permanent differences | 1.30% | 3.10% | 3.00% |
Other | (1.10%) | (1.30%) | (0.20%) |
Effective tax rate | 32.10% | 38.00% | 26.00% |
Income Taxes - Summary of Tax Y
Income Taxes - Summary of Tax Years Subject to Examination in Most Significant Tax Jurisdictions (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
United States [Member] | |
Income Tax Examination [Line Items] | |
Income tax year under examination | 2012 and forward |
Foreign [Member] | |
Income Tax Examination [Line Items] | |
Income tax year under examination | 2008 and forward |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | Feb. 22, 2016 | Jun. 04, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2010 | Jun. 14, 2012 | Nov. 30, 2011 |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||||||
Common stock, shares authorized | 37,000,000 | 37,000,000 | ||||||
Preferred stock, shares authorized | 3,000,000 | 3,000,000 | ||||||
Preferred stock, shares outstanding | 0 | 0 | ||||||
Common stock, shares issued | 1,644,500 | 19,748,321 | 18,778,436 | |||||
Common stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | |||||
Share price, per share | $ 7 | |||||||
Net proceeds from issuance of shares | $ 10,500,000 | $ 4,836,000 | $ 10,834,000 | $ 1,219,000 | ||||
Shares of common stock purchased | 1,688,702 | |||||||
Expected term | Not exceed ten years | |||||||
Aggregate purchase price | 5,500,000 | 3,000,000 | ||||||
Total number of shares currently authorized for stock award plans | 7,118,003 | |||||||
Number of shares remain available for grant | 2,329,104 | |||||||
Further option grants | $ 0 | |||||||
Fair values of RSUs, vested | 700,000 | $ 500,000 | $ 800,000 | |||||
Unamortized portion of share-based compensation expense | $ 3,200,000 | |||||||
RSUs outstanding over a weighted-average period | 3 years 6 months | |||||||
Cash dividend on common stock per share | $ 0.16 | $ 0.14 | $ 0.12 | |||||
Dividend payment date | Apr. 4, 2016 | |||||||
Dividend record date | Mar. 21, 2016 | |||||||
Subsequent Event [Member] | ||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||||||
Cash dividend on common stock per share | $ 0.045 | |||||||
Dividend payments | $ 800,000 | |||||||
Common Stock [Member] | ||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||||||
Repurchase of common stock | $ 10,000,000 | |||||||
Maximum [Member] | ||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||||||
Common stock, shares authorized | 100,000,000 | |||||||
Preferred stock, shares authorized | 5,000,000 | |||||||
Incentive stock options vest | 5 years | |||||||
Minimum [Member] | ||||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||||||
Common stock, shares authorized | 37,000,000 | |||||||
Preferred stock, shares authorized | 3,000,000 | |||||||
Incentive stock options vest | 4 years |
Stockholders' Equity - Weighted
Stockholders' Equity - Weighted Average Fair Values of Employee Stock Options for Option Grants Issued Valuation Assumptions Using Black-Scholes Option Model (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity [Abstract] | |||
Dividend yield | 1.40% | 1.80% | 1.80% |
Volatility | 28.60% | 45.20% | 57.80% |
Risk-free interest rate | 1.80% | 2.00% | 1.50% |
Weighted average expected option term (in years) | 5 years 7 months 6 days | 5 years 6 months | 5 years 6 months |
Weighted average fair value per share of options granted | $ 2.80 | $ 2.81 | $ 3.01 |
Aggregate intrinsic value of options exercised | $ 6,534,800 | $ 819,478 | $ 1,009,726 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Option Activity (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity [Abstract] | |||
Number of Shares, Balance outstanding at beginning | 2,238,734 | ||
Number of Shares, Granted | 511,227 | ||
Number of Shares, Exercised | (906,936) | ||
Number of Shares, Canceled / Expired | (107,045) | ||
Number of Shares, Balance outstanding at ending | 1,735,980 | 2,238,734 | |
Number of Shares, Vested and exercisable | 517,932 | ||
Number of Shares, Expected to vest | 902,258 | ||
Number of Shares, Total | 1,420,190 | ||
Weighted Average Exercise Price, Balance outstanding at beginning | $ 6.42 | ||
Weighted Average Exercise Price, Granted | 11.72 | ||
Weighted Average Exercise Price, Exercised | 5.33 | ||
Weighted Average Exercise Price, Canceled / Expired | 9.06 | ||
Weighted Average Exercise Price, Balance outstanding at ending | 8.39 | $ 6.42 | |
Weighted Average Exercise Price, Vested and exercisable | 6.35 | ||
Weighted Average Exercise Price, Expected to vest | $ 9.11 | ||
Weighted Average Remaining Contractual Term | 4 years 3 months 11 days | 4 years 4 months 28 days | |
Weighted Average Remaining Contractual Term, Vested and exercisable | 2 years 8 months 16 days | ||
Weighted Average Remaining Contractual Term, Expected to vest | 4 years 10 months 6 days | ||
Aggregate Intrinsic Value, Beginning Balance outstanding | $ 3,767,658 | ||
Aggregate Intrinsic Value, Exercised | 6,534,800 | $ 819,478 | $ 1,009,726 |
Aggregate Intrinsic Value, Ending Balance outstanding | 15,381,584 | $ 3,767,658 | |
Aggregate Intrinsic Value, Vested and exercisable | $ 5,645,756 |
Stockholders' Equity - Summar69
Stockholders' Equity - Summary of Option Activity (Parenthetical) (Detail) | Dec. 31, 2015$ / shares |
Equity [Abstract] | |
Closing price of stock | $ 17.25 |
Stockholders' Equity - Summar70
Stockholders' Equity - Summary of RSU Activity (Detail) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Equity [Abstract] | |
Balance outstanding at the beginning, Shares | shares | 220,298 |
Shares Granted | shares | 62,942 |
Shares Vested | shares | (61,362) |
Shares Canceled | shares | (30,533) |
Balance outstanding at the ending, shares | shares | 191,345 |
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 7.04 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 11.32 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 6.84 |
Weighted Average Grant Date Fair Value, Canceled | $ / shares | 7.47 |
Weighted Average Grant Date Fair Value, Ending Balance | $ / shares | $ 8.45 |
Stockholders' Equity - Summar71
Stockholders' Equity - Summary of Repurchases (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate purchase price | $ 266,000 | $ 211,000 | $ 373,000 |
Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock repurchased | 23,928 | 27,092 | |
Average per share repurchase price | $ 11.12 | $ 7.80 | |
Aggregate purchase price | $ 266,090 | $ 211,379 |
Stockholders' Equity - Share-Ba
Stockholders' Equity - Share-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Total stock-based compensation | $ 1,424 | $ 1,302 | $ 1,253 |
Stock Option Awards [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Total stock-based compensation | 992 | 917 | 789 |
Restricted Stock Units [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Total stock-based compensation | $ 432 | $ 385 | $ 464 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Stock-based Compensation Expenses Included in Statements of Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation | $ 1,424 | $ 1,302 | $ 1,253 |
Cost of Sales [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation | 165 | 150 | 148 |
Sales and Marketing [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation | 284 | 309 | 295 |
General and Administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation | 869 | 757 | 726 |
Research and Development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation | $ 106 | $ 86 | $ 84 |
Stockholders' Equity - Stock Re
Stockholders' Equity - Stock Repurchase Activity (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity, Class of Treasury Stock [Line Items] | |||
Total purchased, Total | $ 266 | $ 211 | $ 373 |
Share Repurchase Plan [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Shares repurchased, Shares | 15,323 | ||
Total purchased, Total | $ 88 |
Stockholders' Equity - Dividend
Stockholders' Equity - Dividend Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||||
Feb. 28, 2011 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 04, 2015 | Sep. 03, 2015 | Jun. 05, 2015 | Apr. 03, 2015 | Dec. 04, 2014 | Sep. 04, 2014 | Jun. 05, 2014 | Apr. 03, 2014 | |
Dividends Payable [Line Items] | ||||||||||||
Record Date | Mar. 21, 2016 | |||||||||||
Payment Date | Apr. 4, 2016 | |||||||||||
Per Share Amount | $ 0.16 | $ 0.14 | $ 0.12 | |||||||||
Installment 1 FY 2015 [Member] | ||||||||||||
Dividends Payable [Line Items] | ||||||||||||
Record Date | Mar. 20, 2015 | |||||||||||
Payment Date | Apr. 3, 2015 | |||||||||||
Per Share Amount | $ 0.040 | |||||||||||
Dividend Payment | $ 700 | |||||||||||
Installment 2 FY 2015 [Member] | ||||||||||||
Dividends Payable [Line Items] | ||||||||||||
Record Date | May 22, 2015 | |||||||||||
Payment Date | Jun. 5, 2015 | |||||||||||
Per Share Amount | 0.040 | |||||||||||
Dividend Payment | $ 705 | |||||||||||
Installment 3 FY 2015 [Member] | ||||||||||||
Dividends Payable [Line Items] | ||||||||||||
Record Date | Aug. 20, 2015 | |||||||||||
Payment Date | Sep. 3, 2015 | |||||||||||
Per Share Amount | 0.040 | |||||||||||
Dividend Payment | $ 715 | |||||||||||
Installment 4 FY 2015 [Member] | ||||||||||||
Dividends Payable [Line Items] | ||||||||||||
Record Date | Nov. 20, 2015 | |||||||||||
Payment Date | Dec. 4, 2015 | |||||||||||
Per Share Amount | 0.040 | |||||||||||
Dividend Payment | $ 725 | |||||||||||
Installment 1 FY 2014 [Member] | ||||||||||||
Dividends Payable [Line Items] | ||||||||||||
Record Date | Mar. 20, 2014 | |||||||||||
Payment Date | Apr. 3, 2014 | |||||||||||
Per Share Amount | 0.035 | |||||||||||
Dividend Payment | $ 546 | |||||||||||
Installment 2 FY 2014 [Member] | ||||||||||||
Dividends Payable [Line Items] | ||||||||||||
Record Date | May 22, 2014 | |||||||||||
Payment Date | Jun. 5, 2014 | |||||||||||
Per Share Amount | 0.035 | |||||||||||
Dividend Payment | $ 547 | |||||||||||
Installment 3 FY 2014 [Member] | ||||||||||||
Dividends Payable [Line Items] | ||||||||||||
Record Date | Aug. 21, 2014 | |||||||||||
Payment Date | Sep. 4, 2014 | |||||||||||
Per Share Amount | 0.035 | |||||||||||
Dividend Payment | $ 607 | |||||||||||
Installment 4 FY 2014 [Member] | ||||||||||||
Dividends Payable [Line Items] | ||||||||||||
Record Date | Nov. 20, 2014 | |||||||||||
Payment Date | Dec. 4, 2014 | |||||||||||
Per Share Amount | $ 0.035 | |||||||||||
Dividend Payment | $ 608 |
Profit-Sharing Plan - Additiona
Profit-Sharing Plan - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Vesting period of contributions | 6 years | ||
Deferred Profit Sharing [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Contribution amount | $ 50,000 | $ 30,000 | $ 40,000 |
Restructuring Charges - Additio
Restructuring Charges - Additional Information (Detail) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Apr. 30, 2014Employees | Feb. 28, 2014 | Dec. 31, 2014USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||
Severance costs | $ 499 | ||
Southbridge Manufacturing Facility [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Percentage of reduction in workforce | 10.00% | ||
Severance costs | 400 | ||
Employee Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance costs | $ 100 | ||
Employees terminated | Employees | 7 |
Restructuring Charges - Compone
Restructuring Charges - Components of Restructuring Charges (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2014USD ($) | |
Reorganizations [Abstract] | |
Severance | $ 499 |
Other | 27 |
Total | $ 526 |
Segment and Enterprise-Wide D79
Segment and Enterprise-Wide Disclosures - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2015Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Segment and Enterprise-Wide D80
Segment and Enterprise-Wide Disclosures - Net Sales to Unaffiliated Customers by Geography (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 78,352 | $ 71,097 | $ 64,549 |
United States [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 45,177 | 41,545 | 39,240 |
Germany [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 9,090 | 7,639 | 6,939 |
Other Countries [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | $ 24,085 | $ 21,913 | $ 18,370 |
Segment and Enterprise-wide D81
Segment and Enterprise-wide Disclosures - Total Property and Equipment Held by Geography (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 7,022 | $ 6,878 |
United States [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 5,199 | 4,786 |
Australia [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 1,593 | 1,802 |
Germany [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 170 | 186 |
Other Countries [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 60 | $ 104 |
Supplemental Cash Flow Inform82
Supplemental Cash Flow Information - Supplemental Cash Flow Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Supplemental Cash Flow Elements [Abstract] | |||
Cash paid for income taxes, net | $ 4,792 | $ 2,088 | $ 1,019 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - Recurring [Member] | Dec. 31, 2015USD ($) |
Level 1 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets measured at fair value | $ 0 |
Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets measured at fair value | $ 0 |
Fair Value Measurements - Rollf
Fair Value Measurements - Rollforward of the Fair Value as Determined by Level 3 (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value Disclosures [Abstract] | ||
Beginning balance | $ 99 | |
Additions | $ 42 | |
Payments | (237) | |
Change in fair value included in earnings | $ 138 | 57 |
Ending balance | $ 99 |
Quarterly Financial Data (una85
Quarterly Financial Data (unaudited) - Quarterly Financial Data (Unaudited) (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total net sales | $ 20,483 | $ 19,025 | $ 19,897 | $ 18,947 | $ 18,681 | $ 17,501 | $ 18,161 | $ 16,754 | |||
Gross profit | 14,403 | 13,516 | 13,130 | 13,117 | 12,828 | 12,003 | 12,376 | 11,224 | $ 54,166 | $ 48,431 | $ 45,115 |
Income (loss) from operations | 3,089 | 3,321 | 2,794 | 2,309 | 2,739 | 1,852 | 1,980 | (231) | |||
Net income | $ 2,530 | $ 2,092 | $ 1,767 | $ 1,369 | $ 1,916 | $ 934 | $ 1,272 | $ (207) | $ 7,758 | $ 3,915 | $ 3,202 |
Basic: | |||||||||||
Basic | $ 0.14 | $ 0.12 | $ 0.10 | $ 0.08 | $ 0.11 | $ 0.05 | $ 0.08 | $ (0.01) | $ 0.44 | $ 0.24 | $ 0.21 |
Diluted | $ 0.13 | $ 0.11 | $ 0.10 | $ 0.08 | $ 0.11 | $ 0.05 | $ 0.08 | $ (0.01) | $ 0.42 | $ 0.23 | $ 0.20 |