Globus Medical (GMED) 10-Q 4 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	Apr. 28, 2017
Document Information
Entity Registrant Name	GLOBUS MEDICAL INC
Entity Central Index Key	1,237,831
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		96,085,636

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
ASSETS
Cash and cash equivalents	$ 182,435	$ 132,639
Restricted cash	477	477
Short-term marketable securities	143,663	157,673
Accounts receivable, net of allowances of $3,627 and $2,771, respectively	94,232	91,983
Inventories	113,037	112,692
Prepaid expenses and other current assets	7,008	14,502
Income taxes receivable	47	3,800
Total current assets	540,899	513,766
Property and equipment, net of accumulated depreciation of $173,890 and $166,711, respectively	124,840	124,229
Long-term marketable securities	63,066	60,444
Note receivable	30,000	30,000
Intangible assets, net	61,343	61,706
Goodwill	106,215	105,926
Other assets	954	928
Deferred income taxes	33,104	30,638
Total assets	960,421	927,637
LIABILITIES AND EQUITY
Accounts payable	17,013	17,472
Accrued expenses	37,409	46,401
Income taxes payable	11,708	1,911
Business acquisition liabilities, current	9,239	14,108
Total current liabilities	75,369	79,892
Business acquisition liabilities, net of current portion	6,087	5,972
Deferred income taxes	8,261	7,876
Other liabilities	1,819	1,819
Total liabilities	91,536	95,559
Commitments and contingencies (Note 13)
Equity:
Additional paid-in capital	217,257	211,725
Accumulated other comprehensive loss	(6,081)	(8,642)
Retained earnings	657,613	628,899
Total equity	868,885	832,078
Total liabilities and equity	960,421	927,637
Class A Common
Equity:
Common stock	72	72
Class B Common
Equity:
Common stock	$ 24	$ 24

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current Assets:
Allowance for doubtful accounts	$ 3,627	$ 2,513
Property, Plant and Equipment, Net
Accumulated depreciation	$ 173,890	$ 166,711
Equity:
Common stock, shares authorized	785,000,000
Common stock, shares issued	96,077,111	95,929,916
Common stock, shares outstanding	96,077,111	95,929,916
Class A Common
Equity:
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	72,199,555	72,052,360
Common stock, shares outstanding	72,199,555	72,052,360
Class B Common
Equity:
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	275,000,000	275,000,000
Common stock, shares issued	23,877,556	23,877,556
Common stock, shares outstanding	23,877,556	23,877,556

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Statement [Abstract]
Sales	$ 155,809	$ 139,264
Cost of goods sold	35,600	31,519
Gross profit	120,209	107,745
Operating expenses:
Research and development	10,666	10,030
Selling, general and administrative	67,059	53,798
Amortization of intangibles	1,782	392
Acquisition related costs	388	674
Total operating expenses	79,895	64,894
Operating Income	40,314	42,851
Other income, net
Interest income, net	1,418	496
Foreign currency transaction gain	548	108
Other income	134	156
Total other income, net	2,100	760
Income before income taxes	42,414	43,611
Income tax provision	13,700	15,601
Net Income	$ 28,714	$ 28,010
Earnings per share:
Basic	$ 0.30	$ 0.29
Diluted	$ 0.30	$ 0.29
Weighted average shares outstanding:
Basic	95,996	95,398
Dilutive stock options	1,152	895
Diluted	97,148	96,293
Anti-dilutive stock options excluded from weighted average calculation	5,758	5,208

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 28,714	$ 28,010
Other comprehensive income:
Unrealized gain on marketable securities, net of tax	120	224
Foreign currency translation gain	2,441	81
Total other comprehensive income	2,561	305
Comprehensive Income	$ 31,275	$ 28,315

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities:
Net income	$ 28,714	$ 28,010
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	12,240	6,676
Amortization of premium on marketable securities	1,008	953
Write-down for excess and obsolete inventories	1,671	2,225
Stock-based compensation expense	3,491	2,770
Allowance for doubtful accounts	794	88
Change in fair value of contingent consideration	478	0
Change in deferred income taxes	(2,399)	391
(Increase)/decrease in:
Restricted cash	0	15,668
Accounts receivable	(2,225)	2,201
Inventories	(2,102)	(2,252)
Prepaid expenses and other assets	8,628	1,209
Increase/(decrease) in:
Accounts payable	(172)	(1,238)
Accrued expenses and other liabilities	(10,170)	(15,661)
Income taxes payable/receivable	13,493	14,517
Net cash provided by operating activities	53,449	55,557
Cash flows from investing activities:
Purchases of marketable securities	(51,215)	(104,208)
Maturities of marketable securities	55,280	69,656
Sales of marketable securities	6,505	7,798
Purchases of property and equipment	(11,533)	(9,366)
Net cash used in investing activities	(963)	(36,120)
Cash flows from financing activities:
Payment of business acquisition liabilities	(5,001)	(300)
Proceeds from exercise of stock options	1,990	1,895
Net cash (used in)/provided by financing activities	(3,011)	1,595
Effect of foreign exchange rate on cash	321	91
Net increase in cash and cash equivalents	49,796	21,123
Cash and cash equivalents, beginning of period	132,639	60,152
Cash and cash equivalents, end of period	182,435	81,275
Supplemental disclosures of cash flow information:
Interest paid	8	1
Income taxes paid	$ 2,656	$ 774

BACKGROUND AND SUMMARY OF SIGNI

BACKGROUND AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2017
BACKGROUND AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Background and Summary of Significant Accounting Policies	BACKGROUND AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) The Company Globus Medical, Inc., together with its subsidiaries, is a medical device company focused on the design, development and commercialization of musculoskeletal implants. We are currently focused on implants that promote healing in patients with spine disorders. We have also recently begun to develop a robotic surgical navigation device and products to treat patients who have experienced orthopedic traumas, although those development efforts are still ongoing and we currently have no robotic or orthopedic trauma products that are cleared by the U.S. Food and Drug Administration for sale. We are an engineering-driven company with a history of rapidly developing and commercializing advanced products and procedures that assist surgeons in effectively treating their patients, respond to evolving surgeon needs and address new treatment options. Since our inception in 2003, we have launched over 170 products and offer a product portfolio addressing a broad array of spinal pathologies. We are headquartered in Audubon, Pennsylvania, and market and sell our products through our exclusive sales force in the United States, as well as within North, Central & South America, Europe, Asia, Africa and Australia. Our sales force consists of direct sales representatives and distributor sales representatives employed by exclusive independent distributors. The terms “the Company,” “Globus,” “we,” “us” and “our” refer to Globus Medical, Inc. and, where applicable, our consolidated subsidiaries. (b) Basis of Presentation The accompanying interim unaudited condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial statements and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in complete financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). As such, the information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying footnotes included in our Annual Report on Form 10-K for the year ended December 31, 2016 . In the opinion of management, the statements include all adjustments necessary, which are of a normal and recurring nature, for the fair presentation of our financial position and of the results for the three month periods presented. The results of operations for any interim period are not indicative of results for the full year. Certain reclassifications have been made to the prior period statements to include amortization of intangibles and acquisition related costs within operating expenses to conform to the current year presentation. In addition, we have recast an immaterial amount from cost of goods sold to amortization of intangibles to be consistent with our presentation for the year ended December 31, 2016. (c) Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of Globus and its wholly-owned subsidiaries. All intercompany balances and transactions are eliminated in consolidation. (d) Use of Estimates The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. We base our estimates, in part, on historical experience that management believes to be reasonable under the circumstances. Actual results could differ from those estimates. Estimates and assumptions are periodically reviewed and the effects of revisions are reflected in the condensed consolidated financial statements in the period they are determined to be necessary. Significant areas that require management’s estimates include intangible assets, contingent payment liabilities, allowance for doubtful accounts, stock-based compensation, write-down for excess and obsolete inventory, useful lives of assets, the outcome of litigation, recoverability of intangible assets and income taxes. We are subject to risks and uncertainties due to changes in the healthcare environment, regulatory oversight, competition, and legislation that may cause actual results to differ from estimated results. (e) Restricted Cash In December 2014, we set aside cash for the payment of a portion of the DePuy Synthes and Bianco litigation. We classified this cash as restricted, as the amount was placed in escrow to be used for payment of the litigation obligations, should we not be successful with our appeals. On January 13, 2016, we settled our litigation with DePuy Synthes and made a payment of $7.9 million and recovered approximately $8.4 million related to that settlement shortly thereafter. As of March 31, 2017 , we have $0.5 million of restricted cash remaining related to the Bianco matter. See “Note 13. Commitments and Contingencies” below for more details regarding these litigations. (f) Marketable Securities Our marketable securities include municipal bonds, corporate debt securities, commercial paper, securities of U.S. government-sponsored agencies and asset-backed securities, and are classified as available-for-sale as of March 31, 2017 . Available-for-sale securities are recorded at fair value in both short-term and long-term marketable securities on our condensed consolidated balance sheets. The change in fair value for available-for-sale securities is recorded, net of taxes, as a component of accumulated other comprehensive loss on our condensed consolidated balance sheets. Premiums and discounts are recognized over the life of the related security as an adjustment to yield using the straight-line method. Realized gains or losses from the sale of our marketable securities are determined on a specific identification basis. Realized gains and losses, along with interest income and the amortization/accretion of premiums/discounts are included as a component of other income, net, on our condensed consolidated statements of income. Interest receivable is recorded as a component of prepaid expenses and other current assets on our condensed consolidated balance sheets. We maintain a portfolio of various holdings, types and maturities, though most of the securities in our portfolio could be liquidated at minimal cost at any time. We invest in securities that meet or exceed standards as defined in our investment policy. Our policy also limits the amount of credit exposure to any one issue, issuer or type of security. We review our securities for other-than-temporary impairment at each reporting period. If an unrealized loss for any security is considered to be other-than-temporary, the loss will be recognized in our condensed consolidated statement of income in the period the determination is made. (g) Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined on a first-in, first-out basis. The majority of our inventories are finished goods and we utilize both in-house manufacturing and third-party suppliers to source our products. We periodically evaluate the carrying value of our inventories in relation to our estimated forecast of product demand, which takes into consideration the estimated life cycle of product releases. When quantities on hand exceed estimated sales forecasts, we record a write-down for such excess inventories. (h) Revenue Recognition Revenue is recognized when persuasive evidence of an arrangement exists, product delivery has occurred, pricing is fixed or determinable, and collection is reasonably assured. A significant portion of our revenue is generated from consigned inventory maintained at hospitals or with sales representatives. For these products, revenue is recognized at the time the product is used or implanted. For all other transactions, we recognize revenue when title to the goods and risk of loss transfer to customers, provided there are no remaining performance obligations that will affect the customer’s final acceptance of the sale. Our policy is to classify shipping and handling costs billed to customers as sales and the related expenses as cost of goods sold. (i) Recently Issued Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”) . ASU 2014-09 amends the guidance in former Topic 605, Revenue Recognition , and most other existing revenue guidances in US GAAP. Under the new standard, an entity will recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the payment to which the entity expects to be entitled in exchange for those goods or services and provide additional disclosures. As amended, the effective date for public entities is annual reporting periods beginning after December 15, 2017 and interim periods therein. Early adoption is not permitted prior to the first quarter of 2017. We will adopt ASU 2014-09 effective January 1, 2018 using the modified retrospective method (retrospective application with the cumulative effect of initially applying the guidance recognized at the date of initial application). This update will not have a material impact on our financial position, results of operations, and disclosures. In July 2015, the FASB released ASU 2015-11, Simplifying the Measurement of Inventory (Topic 330) (“ASU 2015-11”) as part of the FASB’s Simplification Initiative. This update is intended to more closely align the measurement of inventory under GAAP with the measurement of inventory under International Financial Reporting Standards. Within the scope of the update, an entity is required to measure inventory at the lower of cost or net realizable value. Net realizable value is defined as the estimated selling price in the ordinary course of business, less reasonable and predictable costs of completion, disposal and transportation. ASU 2015-11 is effective for all public entities for fiscal years beginning after December 31, 2016, including interim reporting periods within that period, and is required to be applied prospectively, with early adoption permitted. We adopted ASU 2015-11 on January 1, 2017. This update does not have a material impact on our financial position, results of operations, and disclosures. In February 2016, the FASB released ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”). Under ASU 2016-02, a right-of-use asset and lease obligation will be recorded for all leases with terms greater than 12 months, whether operating or financing, while the income statement will reflect lease expense for operating leases and amortization/interest expense for financing leases. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, with early adoption permitted, and requires the use of the modified retrospective method, which will require adjustment to all comparative periods presented in the consolidated financial statements. We are currently evaluating the impact of this update on our financial position, results of operations, and disclosures. In March 2016, the FASB released ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), which will simplify the income tax consequences, accounting for forfeitures, and classification on the statements of cash flows. ASU 2016-09 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016, and is required to be applied either prospectively, retrospectively or using a modified retrospective transition method, depending on the area covered in this update. We adopted ASU 2016-09 effective January 1, 2017. ASU 2016-09 requires that all excess tax benefits and tax deficiencies are recognized as income tax expense or benefit in the income statement as discrete items in the reporting period in which they occur. The adoption of this provision is required to be applied using a prospective transition method, therefore prior period net income has not been adjusted. Under the provisions of the new guidance, we elected to account for forfeitures as they occur, and using the required modified retrospective adoption, the impact to retained earnings was immaterial. We elected to apply the presentation requirements for cash flows related to excess tax benefits retrospectively to all periods presented. As a result of this retrospective application, our cash provided by operating activities increased by $0.5 million for the three months ended March 31, 2016, and our cash provided by financing activities decreased by $0.5 million for the three months ended March 31, 2016. In November 2016, the FASB released ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”), which requires that amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the total beginning and ending amounts for the periods shown on the statement of cash flows. Transfers between cash and cash equivalents and restricted cash and restricted cash equivalents will no longer be presented in the statement of cash flows. The amendments in this update should be applied using a retrospective transition method to each period presented. This update is effective for annual periods beginning after December 15, 2017, and interim periods within those fiscal years; early adoption is permitted, including adoption in an interim period. We do not expect the adoption of this update to have any material impact on our financial position, cash flows, or disclosures. In January 2017. the FASB released ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (“ASU 2017-01”), which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The amendments in this ASU should be applied prospectively and are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early application permitted. No disclosures are required at transition. We are currently evaluating the timing and impact of the new standard on our financial position, results of operations and disclosures. In January 2017. the FASB released ASU 2017-04, Intangibles - Goodwill and Other (Topic 805): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”), which eliminates the Step 2 calculation for the implied fair value of goodwill to measure a goodwill impairment charge. Under the updated standard, an entity will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. ASU 2017-04 does not change the guidance on completing Step 1 of the goodwill impairment test and still allows an entity to perform the optional qualitative goodwill impairment assessment before determining whether to proceed to Step 1. This update is effective for annual and interim goodwill impairment tests in fiscal years beginning after December 15, 2019 with early adoption permitted for any impairment test performed on testing dates after January 1, 2017. We are currently evaluating the timing and impact of the new standard on our financial position, results of operations and disclosures.

ACQUISITIONS

ACQUISITIONS	3 Months Ended
	Mar. 31, 2017
Business Combinations [Abstract]
Business Combination Disclosure	ACQUISITIONS Alphatec International On September 1, 2016 (the “Closing Date”), Globus Medical Ireland, Ltd. (“Globus Ireland”), a private limited company existing under the laws of Ireland and an indirect wholly-owned subsidiary of Globus, acquired from Alphatec Holdings, Inc., a Delaware corporation (“Alphatec”) (i) substantially all of the assets and certain liabilities of Alphatec’s subsidiaries in the United Kingdom, Italy, the Netherlands, Germany and Hong Kong and (ii) all of the outstanding equity interests of Alphatec’s subsidiaries in Japan, Brazil, China, Singapore and Australia (“Alphatec International”) pursuant to a Purchase and Sale Agreement entered into on July 25, 2016 (the “Purchase Agreement” and the “Acquisition”). The aggregate consideration for the transaction was approximately $77.8 million in cash, subject to customary adjustment after closing for certain working capital items as provided in the Purchase Agreement. In addition, in connection with the Acquisition, Globus Ireland entered into a supply agreement with Alphatec, pursuant to which Alphatec will supply products to Globus Ireland and its newly-acquired subsidiaries for up to five years after the Closing Date. We accounted for the acquisition under the purchase method of accounting, and as a result, recorded preliminary goodwill of approximately $14.8 million . The results of operations of Alphatec International have been included in our results of operations from the date of acquisition. Amounts recognized for assets acquired and liabilities assumed are based on preliminary purchase price allocations and on certain management judgments. These preliminary allocations are based on an analysis of the estimated fair values of assets acquired and liabilities assumed, including identifiable tangible assets, and estimates of the useful lives of tangible assets. The final purchase price allocations will be completed after we finalize our third-party appraisal, review all available data, and complete our own internal assessments. We expect to complete our final purchase price allocations in mid-2017. Any additional adjustments resulting from finalization of the purchase price allocations for Alphatec International will affect the amount assigned to goodwill. Based on our preliminary purchase price allocations, we estimate that $9.1 million of the goodwill from this acquisition is deductible for tax purposes. As of March 31, 2017 , we recorded the following preliminary purchase price allocation for the identifiable tangible and intangible assets and liabilities of Alphatec International: (In thousands) Consideration: Cash paid at closing $ 80,000 Net working capital adjustment due (2,217 ) Fair value of consideration $ 77,783 Identifiable assets acquired and liabilities assumed: Cash acquired $ 4,010 Accounts receivable 12,402 Inventory 10,579 Customer relationships 38,800 Property and equipment 4,800 Deferred tax assets 1,436 Other assets 8,092 Accounts payable and accrued expenses (8,119 ) Deferred tax liabilities (9,002 ) Total identifiable net assets 62,998 Goodwill 14,785 Total allocated purchase price $ 77,783 The following unaudited pro forma information is based on our historical data and our assumptions for consolidated results of operations, and gives effect to our acquisition of Alphatec International as if the acquisition had occurred on January 1, 2015. These unaudited pro forma results include adjustments having a continuing impact on our condensed consolidated statements of income. These adjustments primarily consist of: adjustments to the fair value of inventory, adjustments to depreciation for the fair value and depreciable lives of property and equipment, amortization of intangibles, interest income and adjustments to tax expense based on condensed consolidated pro forma results. These results have been prepared using assumptions our management believes are reasonable, are not necessarily indicative of the actual results that would have occurred if the acquisition had occurred on January 1, 2015, and are not necessarily indicative of the results that may be achieved in the future, including but not limited to operating synergies that we may realize as a result of the acquisition. Three Months Ended (pro forma, in thousands, except per share amounts) March 31, Net sales $ 151,153 Net income 29,456 Earnings per share: Basic $ 0.31 Diluted $ 0.31

NOTE RECEIVABLE

NOTE RECEIVABLE	3 Months Ended
	Mar. 31, 2017
Note Receivable [Abstract]
Note Receivable Disclosure	NOTE RECEIVABLE On September 1, 2016, in connection with the Acquisition, we entered into a Credit, Security and Guaranty Agreement (the “Credit Agreement”) with Alphatec and Alphatec Spine, Inc. (“Alphatec Spine” and together with Alphatec, the “Alphatec Borrowers”), pursuant to which we made available to the Alphatec Borrowers a senior secured term loan facility in an amount not to exceed $30.0 million . On the Closing Date, we made an initial loan of $25.0 million and the Alphatec Borrowers issued a note for such amount to us. On December 20, 2016, the remaining $5.0 million was drawn by the Alphatec Borrowers and added to the note. The Credit Agreement contains customary operational and financial covenants, including a fixed charge coverage ratio to be maintained by the Alphatec Borrowers, and provides us with a security interest in all of the assets of the Alphatec Borrowers. The Credit Agreement has a scheduled maturity date five years from the Closing Date. The term loan interest rate for the first two years following the Closing Date will be priced at the London Interbank Offered Rate (“ LIBOR ”) plus 8.0% , subject to a 9.5% floor. The term loan interest rate thereafter will be LIBOR plus 13.0% . On March 30, 2017 we entered into a First Amendment to the Credit Agreement which modified the time periods during which the Alphatec Borrowers are required to calculate the fixed charge coverage ratio in order to determine compliance with the Credit Agreement. Interest accrues on the note receivable based on the contractual terms of the note. We consider a note to be impaired when, based on current information or factors (such as payment history, value of collateral and assessment of the borrower’s current creditworthiness), it is probable that the principal and interest payments will not be collected according to the note agreement. As of March 31, 2017 , we do not consider this note to be impaired. We believe that the note’s carrying value approximates its fair value.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	3 Months Ended
	Mar. 31, 2017
Intangible Assets Disclosure [Abstract]
Intangible Assets Disclosure	INTANGIBLE ASSETS A summary of intangible assets is presented below: March 31, 2017 (In thousands) Weighted Gross Accumulated Amortization Intangible In-process research & development — $ 20,460 $ — $ 20,460 Supplier network 10.0 4,000 (967 ) 3,033 Customer relationships & other intangibles 6.8 42,452 (6,934 ) 35,518 Patents 16.1 3,035 (703 ) 2,332 Total intangible assets $ 69,947 $ (8,604 ) $ 61,343 December 31, 2016 (In thousands) Weighted Gross Accumulated Amortization Intangible In-process research & development — $ 20,460 $ — $ 20,460 Supplier network 10.0 4,000 (867 ) 3,133 Customer relationships & other intangibles 6.8 40,936 (5,201 ) 35,735 Patents 16.1 3,035 (657 ) 2,378 Total intangible assets $ 68,431 $ (6,725 ) $ 61,706

MARKETABLE SECURITIES

MARKETABLE SECURITIES	3 Months Ended
	Mar. 31, 2017
Marketable Securities [Abstract]
Marketable Securities	MARKETABLE SECURITIES The composition of our short-term and long-term marketable securities is as follows: March 31, 2017 (In thousands) Contractual Maturity (in years) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-term: Municipal bonds Less than 1 $ 98,486 $ 16 $ (27 ) $ 98,475 Corporate debt securities Less than 1 27,783 18 (8 ) 27,793 Commercial paper Less than 1 16,035 2 — 16,037 Asset-backed securities Less than 1 1,358 — — 1,358 Total short-term marketable securities $ 143,662 $ 36 $ (35 ) $ 143,663 Long-term: Municipal bonds 1-2 $ 25,705 $ 8 $ (27 ) $ 25,686 Corporate debt securities 1-2 23,167 7 (35 ) 23,139 Asset-backed securities 1-2 9,265 1 (4 ) 9,262 Securities of U.S. government-sponsored agencies 1-2 5,001 — (22 ) 4,979 Total long-term marketable securities $ 63,138 $ 16 $ (88 ) $ 63,066 December 31, 2016 (In thousands) Contractual Maturity (in years) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-term: Municipal bonds Less than 1 $ 114,826 $ 2 $ (88 ) $ 114,740 Corporate debt securities Less than 1 36,020 21 (4 ) 36,037 Commercial paper Less than 1 6,898 — (2 ) 6,896 Total short-term marketable securities $ 157,744 $ 23 $ (94 ) $ 157,673 Long-term: Municipal bonds 1-2 $ 30,207 $ — $ (137 ) $ 30,070 Corporate debt securities 1-2 15,278 9 (40 ) 15,247 Asset-backed securities 1-2 10,146 6 (1 ) 10,151 Securities of U.S. government-sponsored agencies 1-2 5,002 — (26 ) 4,976 Total long-term marketable securities $ 60,633 $ 15 $ (204 ) $ 60,444

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements	FAIR VALUE MEASUREMENTS Under the accounting for fair value measurements and disclosures, fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or the liability in an orderly transaction between market participants on the measurement date. Additionally, a fair value hierarchy was established that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable inputs. The level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Our assets and liabilities measured at fair value on a recurring basis are classified and disclosed in one of the following three categories: Level 1—quoted prices (unadjusted) in active markets for identical assets and liabilities; Level 2—observable inputs other than quoted prices in active markets for identical assets and liabilities; and Level 3—unobservable inputs in which there is little or no market data available, which require the reporting entity to use significant unobservable inputs or valuation techniques. The fair value of our assets and liabilities measured at fair value on a recurring basis was as follows: Balance at (In thousands) March 31, Level 1 Level 2 Level 3 Assets Cash equivalents $ 103,327 $ 986 $ 102,341 $ — Municipal bonds 124,161 — 124,161 — Corporate debt securities 50,932 — 50,932 — Commercial paper 16,037 — 16,037 — Asset-backed securities 10,620 — 10,620 — Securities of U.S. government-sponsored agencies 4,979 — 4,979 — Liabilities Contingent consideration 15,326 — — 15,326 Balance at (In thousands) December 31, Level 1 Level 2 Level 3 Assets Cash equivalents $ 76,157 $ 957 $ 75,200 $ — Municipal bonds 144,810 — 144,810 — Corporate debt securities 51,284 — 51,284 — Commercial paper 6,896 — 6,896 — Asset-backed securities 10,151 — 10,151 — Securities of U.S. government-sponsored agencies 4,976 — 4,976 — Liabilities Contingent consideration 19,849 — — 19,849 Our marketable securities are classified as Level 2 within the fair value hierarchy, as we measure their fair value using market prices for similar instruments and inputs such as actual trade data, benchmark yields, broker/dealer quotes and other similar data obtained from quoted market prices or independent pricing vendors. Contingent consideration represents our contingent milestone, performance and revenue-sharing payment obligations related to our acquisitions and is measured at fair value, based on significant inputs not observable in the market, which represents a Level 3 measurement within the fair value hierarchy. The valuation of contingent consideration uses assumptions we believe would be made by a market participant. We assess these estimates on an ongoing basis as additional data impacting the assumptions is obtained. The balances of the fair value of contingent consideration are recognized within business acquisition liabilities on our condensed consolidated balance sheets, and the changes in the fair value of contingent consideration are recognized within research and development and selling, general and administrative expenses in the condensed consolidated statements of income. The recurring Level 3 fair value measurements of our contingent consideration liabilities include the following significant unobservable inputs: Fair Value at (In thousands) March 31, Valuation technique Unobservable input Range Discount rate 6.7% - 8.5% Revenue-based payments $ 10,451 Discounted cash flow Probability of payment 87.0% - 97.5% Projected year of payment 2017 - 2029 Discount rate 13.5% Milestone-based payments $ 4,875 Discounted cash flow Probability of payment 100.0% Projected year of payment 2017 The following table provides a reconciliation of the beginning and ending balances of contingent consideration: Three Months Ended (In thousands) March 31, March 31, Beginning balance $ 19,849 $ 26,617 Contingent payments (5,001 ) (5,000 ) Changes in fair value of contingent consideration 478 643 Ending balance $ 15,326 $ 22,260

INVENTORIES

INVENTORIES	3 Months Ended
	Mar. 31, 2017
Inventory Disclosure [Abstract]
Inventories	INVENTORIES (In thousands) March 31, December 31, 2016 Raw materials $ 13,507 $ 13,257 Work in process 13,684 10,747 Finished goods 85,846 88,688 Total inventories $ 113,037 $ 112,692

ACCRUED EXPENSES

ACCRUED EXPENSES	3 Months Ended
	Mar. 31, 2017
Payables and Accruals [Abstract]
Accrued Expenses	ACCRUED EXPENSES (In thousands) March 31, December 31, Compensation and other employee-related costs $ 17,615 $ 23,214 Legal and other settlements and expenses 1,387 734 Accrued non-income taxes 6,015 6,946 Royalties 4,758 4,671 Other 7,634 10,836 Total accrued expenses $ 37,409 $ 46,401

DEBT

DEBT	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Debt	DEBT Line of Credit In May 2011 , we entered into a credit agreement with Wells Fargo Bank related to a revolving credit facility that provides for borrowings up to $50.0 million . At our request, and with the approval of the bank, the amount of borrowings available under the revolving credit facility can be increased to $75.0 million . The revolving credit facility includes up to a $25.0 million sub-limit for letters of credit. As amended to date, the revolving credit facility expires in May 2017. Cash advances bear interest at our option either at a fluctuating rate per annum equal to the daily LIBOR in effect for a one -month period plus 0.75% , or a fixed rate for a one - or three -month period equal to LIBOR plus 0.75% . The credit agreement governing the revolving credit facility also subjects us to various restrictive covenants, including the requirement to maintain maximum consolidated leverage. The covenants also include limitations on our ability to repurchase shares, to pay cash dividends or to enter into a sale transaction. As of March 31, 2017 , we were in compliance with all financial covenants under the credit agreement, there were no outstanding borrowings under the revolving credit facility and available borrowings were $50.0 million . We may terminate the credit agreement at any time on ten days’ notice without premium or penalty. We expect to extend the maturity date of our revolving credit facility in May 2017.

EQUITY

EQUITY	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Equity	EQUITY Our amended and restated Certificate of Incorporation provides for a total of 785,000,000 authorized shares of common stock. Of the authorized number of shares of common stock, 500,000,000 shares are designated as Class A common stock (“Class A Common”), 275,000,000 shares are designated as Class B common stock (“Class B Common”) and 10,000,000 shares are designated as Class C common stock (“Class C Common”). Our issued and outstanding common shares by Class were as follows: (Shares) Class A Common Class B Common Total March 31, 2017 72,199,555 23,877,556 96,077,111 December 31, 2016 72,052,360 23,877,556 95,929,916 The following table summarizes changes in total equity: Three Months Ended (In thousands) March 31, Total equity, beginning of period $ 832,078 Net income 28,714 Stock-based compensation cost 3,542 Exercise of stock options 1,990 Other comprehensive income 2,561 Total equity, end of period $ 868,885 The tables below present the changes in each component of accumulated other comprehensive income/(loss), including current period other comprehensive income/(loss) and reclassifications out of accumulated other comprehensive income/(loss): (In thousands) Unrealized gain/(loss) on marketable securities, net of tax Foreign currency translation adjustments Accumulated other comprehensive loss Accumulated other comprehensive loss, net of tax, at December 31, 2016 $ (167 ) $ (8,475 ) $ (8,642 ) Other comprehensive income before reclassifications 166 2,441 2,607 Amounts reclassified from accumulated other comprehensive income, net of tax (46 ) — (46 ) Other comprehensive income, net of tax 120 2,441 2,561 Accumulated other comprehensive loss, net of tax, at March 31, 2017 $ (47 ) $ (6,034 ) $ (6,081 ) (In thousands) Unrealized gain/(loss) on marketable securities, net of tax Foreign currency translation adjustments Accumulated other comprehensive loss Accumulated other comprehensive loss, net of tax, at December 31, 2015 $ (119 ) $ (1,839 ) $ (1,958 ) Other comprehensive income before reclassifications 224 81 305 Amounts reclassified from accumulated other comprehensive income, net of tax — — — Other comprehensive income, net of tax 224 81 305 Accumulated other comprehensive income/(loss), net of tax, at March 31, 2016 $ 105 $ (1,758 ) $ (1,653 )

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	STOCK-BASED COMPENSATION We have three stock plans: our Amended and Restated 2003 Stock Plan, our 2008 Stock Plan, and our 2012 Equity Incentive Plan (the “2012 Plan”). The 2012 Plan is the only remaining active stock plan. The purpose of these stock plans was, and the 2012 Plan is, to provide incentive to employees, directors, and consultants of Globus. The Plans are administered by the Board of Directors of Globus (the “Board”) or its delegates. The number, type of option, exercise price, and vesting terms are determined by the Board or its delegates in accordance with the terms of the Plans. The options granted expire on a date specified by the Board, but generally not more than ten years from the grant date. Option grants to employees generally vest in varying installments over a four -year period. The 2012 Plan was approved by our Board in March 2012, and by our stockholders in June 2012. Under the 2012 Plan, the aggregate number of shares of Class A Common stock that may be issued subject to options and other awards is equal to the sum of (i) 3,076,923 shares, (ii) any shares available for issuance under the 2008 Plan as of March 13, 2012, (iii) any shares underlying awards outstanding under the 2008 Plan as of March 13, 2012 that, on or after that date, are forfeited, terminated, expired or lapse for any reason, or are settled for cash without delivery of shares and (iv) starting January 1, 2013, an annual increase in the number of shares available under the 2012 Plan equal to up to 3% of the number of shares of our common and preferred stock outstanding at the end of the previous year, as determined by our Board. The number of shares that may be issued or transferred pursuant to incentive stock options under the 2012 Plan is limited to 10,769,230 shares. The shares of Class A Common stock issuable under the 2012 Plan include authorized but unissued shares, treasury shares or shares of common stock purchased on the open market. As of March 31, 2017 , pursuant to the 2012 Plan, there were 14,887,393 shares of Class A Common stock reserved and 6,323,262 shares of Class A Common stock available for future grants. The weighted average grant date fair value per share of the options awarded to employees were as follows: Three Months Ended March 31, March 31, Weighted average grant date fair value per share $ 8.34 $ 7.81 Stock option activity during the three months ended March 31, 2017 is summarized as follows: Option Shares(thousands) Weighted average exercise price Weighted average remaining contractual life (years) Aggregate intrinsic value (thousands) Outstanding at December 31, 2016 7,741 $ 21.08 Granted 1,460 26.23 Exercised (147 ) 13.52 Forfeited (183 ) 23.65 Outstanding at March 31, 2017 8,871 $ 21.98 7.7 $ 67,736 Exercisable at March 31, 2017 3,867 $ 18.40 6.3 $ 43,391 Expected to vest at March 31, 2017 5,003 $ 24.75 8.9 $ 24,346 The intrinsic value of stock options exercised and the compensation cost related to stock options granted to employees and non-employees under our stock plans was as follows: Three Months Ended (In thousands) March 31, March 31, Intrinsic value of stock options exercised $ 1,890 $ 2,731 Stock-based compensation expense $ 3,491 $ 2,770 Net stock-based compensation capitalized into inventory 51 71 Total stock-based compensation cost $ 3,542 $ 2,841 As of March 31, 2017 , there was $35.9 million of unrecognized compensation expense related to unvested employee stock options that are expected to vest over a weighted average period of three years.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Income Taxes	INCOME TAXES In computing our income tax provision, we make certain estimates and management judgments, such as estimated annual taxable income or loss, annual effective tax rate, the nature and timing of permanent and temporary differences between taxable income for financial reporting and tax reporting, and the recoverability of deferred tax assets. Our estimates and assumptions may change as new events occur, additional information is obtained, or as the tax environment changes. Should facts and circumstances change during a quarter causing a material change to the estimated effective income tax rate, a cumulative adjustment is recorded. The following table provides a summary of our effective tax rate: Three Months Ended March 31, March 31, Effective income tax rate 32.3 % 35.8 % The period over period change in the effective income tax rate for the three months ended is primarily driven by a one-time charge from the reorganization of our domestic legal structure for the period ended March 31, 2016 and a benefit from the adoption of ASU 2016-09 for the period ended March 31, 2017.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	COMMITMENTS AND CONTINGENCIES We are involved in a number of proceedings, legal actions, and claims. Such matters are subject to many uncertainties, and the outcomes of these matters are not within our control and may not be known for prolonged periods of time. In some actions, the claimants seek damages, as well as other relief, including injunctions prohibiting us from engaging in certain activities, which, if granted, could require significant expenditures and/or result in lost revenues. We record a liability in the condensed consolidated financial statements for these actions when a loss is known or considered probable and the amount can be reasonably estimated. If the reasonable estimate of a known or probable loss is a range, and no amount within the range is a better estimate than any other, the minimum amount of the range is accrued. If a loss is possible but not known or probable, and can be reasonably estimated, the estimated loss or range of loss is disclosed. In most cases, significant judgment is required to estimate the amount and timing of a loss to be recorded. While it is not possible to predict the outcome for most of the matters discussed, we believe it is possible that costs associated with them could have a material adverse impact on our condensed consolidated earnings, financial position or cash flows. N-Spine, Synthes and DePuy Synthes Litigation In April 2010, N-Spine, Inc. and Synthes USA Sales, LLC filed suit against us in the U.S. District Court for the District of Delaware for patent infringement. N-Spine, the patent owner, and Synthes USA, a licensee of the subject patent, allege that we infringe one or more claims of the patent by making, using, offering for sale or selling our TRANSITION ® stabilization system product. N-Spine and Synthes USA sought injunctive relief and an unspecified amount in damages. This matter was one of the four patent infringement lawsuits concerning spinal implant technologies between Globus Medical, Inc. and DePuy Synthes settled on January 13, 2016 for $7.9 million . In a related matter, on January 8, 2014, DePuy Synthes Products, LLC (“DePuy Synthes”) filed suit against us in the U.S. District Court for the District of Delaware for patent infringement. DePuy Synthes alleges that we infringe one or more claims of the asserted patent by making, using, offering for sale or selling our TRANSITION ® stabilization system product. DePuy Synthes seeks injunctive relief and an unspecified amount in damages. This matter was one of the four patent infringement lawsuits concerning spinal implant technologies between Globus Medical, Inc. and DePuy Synthes settled on January 13, 2016 for $7.9 million . Synthes USA, LLC, Synthes USA Products, LLC and Synthes USA Sales, LLC Litigation In July 2011, Synthes USA, LLC, Synthes USA Products, LLC and Synthes USA Sales, LLC filed suit against us in the U.S. District Court for the District of Delaware for patent infringement. Synthes USA LLC, the patent owner, Synthes USA Products, LLC, a licensee to manufacture products of the subject patents, and Synthes USA Sales LLC, a licensee to sell products of the subject patents, allege that we infringed one or more claims of three patents by making, using, offering for sale or selling our COALITION ® , INDEPENDENCE ® and INTERCONTINENTAL ® products. This matter was one of the four patent infringement lawsuits concerning spinal implant technologies between Globus Medical, Inc. and DePuy Synthes settled on January 13, 2016 for $7.9 million . L5 Litigation In December 2009, we filed suit in the Court of Common Pleas of Montgomery County, Pennsylvania against our former exclusive independent distributor L5 Surgical, LLC and its principals, seeking an injunction and declaratory judgment concerning certain restrictive covenants made to L5 by its sales representatives. L5 brought counterclaims against us alleging tortious interference, unfair competition and conspiracy. The injunction phase was resolved in September 2010, and this matter is now in the discovery phase of litigation on the underlying damages claims. We intend to defend our rights vigorously. The probable outcome of this litigation cannot be determined, nor can we estimate a range of potential loss. Therefore, in accordance with authoritative guidance on the evaluation of loss contingencies, we have not recorded an accrual related to this litigation. Bianco Litigation On March 21, 2012, Sabatino Bianco filed suit against us in the Federal District Court for the Eastern District of Texas claiming that we misappropriated his trade secret and confidential information and improperly utilized it in developing our CALIBER ® product. Bianco alleges that we engaged in misappropriation of trade secrets, breach of contract, unfair competition, fraud and theft and seeks correction of inventorship, injunctive relief and exemplary damages. On April 20, 2012, Bianco filed a motion for a preliminary injunction, seeking to enjoin us from making, using, selling, importing or offering for sale our CALIBER ® product. On November 15, 2012, the court denied Bianco’s motion for preliminary injunction. On October 1, 2013, Bianco amended his complaint to claim that his trade secrets and confidential information were also used improperly in developing our RISE ® and CALIBER-L ® products. On January 17, 2014, the jury in this case returned a verdict in favor of Bianco on a claim of misappropriation of trade secret. We accrued the verdict amount of $4.3 million as of December 31, 2013. The jury found against Bianco on the claims of breach of contract and disgorgement of profits. The court granted our motion for judgment as a matter of law and dismissed Bianco’s claims for unfair competition, fraud, and exemplary damages, and Bianco abandoned the claim of misappropriation of confidential information. Bianco’s claims of correction of inventorship, unjust enrichment, and permanent injunctive relief were not submitted to the jury. On March 7, 2014, the court denied Bianco’s claim for correction of inventorship and ruled he is not entitled to be named as a co-inventor on any of the patents at issue, and also denied his claim for unjust enrichment. On March 17, 2014, the court denied Bianco’s claim for permanent injunctive relief. On July 2, 2014, the court awarded Bianco an ongoing royalty of 5% of the net sales of the CALIBER ® , CALIBER ® -L, and RISE ® products, or products that are not colorably different from those products, for a fifteen year period on sales starting on January 18, 2014. The court entered final judgment on the jury verdict on July 17, 2014. On October 19, 2015, the United States Federal Circuit Court of Appeals affirmed the judgment without opinion. On March 22, 2016, we filed a Petition for a Writ of Certiorari with the United States Supreme Court and on June 20, 2016 the Writ was denied. We do not expect the judgment to impact our ability to conduct our business or to have any material impact on our future revenues. Bonutti Skeletal Innovations, LLC Litigation On November 19, 2014, Bonutti Skeletal Innovations, LLC (“Bonutti Skeletal”) filed suit against us in the U.S. District Court for the Eastern District of Pennsylvania for patent infringement. Bonutti Skeletal, a non-practicing entity, alleges that Globus willfully infringes one or more claims of six patents by making, using, offering for sale or selling the CALIBER ® , CALIBER ® -L, COALITION ® , CONTINENTAL ® , FORGE ® , FORTIFY ® , INDEPENDENCE ® , INTERCONTINENTAL ® , MONUMENT ® , NIKO ® , RISE ® , SIGNATURE ® , SUSTAIN ® , and TRANSCONTINENTAL ® products. Bonutti Skeletal sought an unspecified amount in damages and injunctive relief. This matter was stayed on June 26, 2015 pending the resolution of inter partes reviews on the asserted patents by the USPTO. Globus Medical, Inc. and Bonutti Skeletal settled this matter on June 9, 2016. Flexuspine, Inc. Litigation On March 11, 2015, Flexuspine, Inc. filed suit against us in the U.S. District Court for the Eastern District of Texas for patent infringement. Flexuspine, Inc. alleged that Globus willfully infringed one or more claims of five patents by making, using, offering for sale or selling the CALIBER ® , CALIBER ® -L, and ALTERA ® products. Flexuspine sought an unspecified amount in damages and injunctive relief. On August 19, 2016, the jury returned a verdict in our favor finding no infringement of the asserted patents by the CALIBER ® , CALIBER ® -L, and ALTERA ® products. On November 1, 2016, plaintiff filed a notice of appeal to the United States Court of Appeals for the Federal Circuit. Stern Litigation On February 17, 2016, Joseph D. Stern filed suit against us in the U.S. District Court for the District of Delaware for patent infringement. Stern alleges that Globus willfully infringes one or more claims of three patents by making, using, offering for sale or selling the Xtend ® products. On October 10, 2016, Stern amended the accused products to further include our Providence ® , VIP ® , Unify ® , and Assure ® products. On March 28, 2017, one patent was dismissed with prejudice and our PROVIDENCE ® , VIP ® , UNIFY ® , and ASSURE ® products are no longer being accused of infringement. Stern seeks an unspecified amount in damages and injunctive relief. The probable outcome of this litigation cannot be determined, nor can we estimate a range of potential loss. Therefore, in accordance with authoritative guidance on the evaluation of loss contingencies, we have not recorded an accrual related to this litigation. Silverstein Litigation On September 28, 2015, a putative securities class action lawsuit was filed against us and certain of our officers in the U.S. District Court for the Eastern District of Pennsylvania. Plaintiff in the lawsuit purported to represent a class of our stockholders who purchased shares between February 26, 2014 and August 5, 2014. The complaint purported to assert claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and sought damages in an unspecified amount, attorney’s fees and other relief. This matter was dismissed with prejudice on August 26, 2016. On September 9, 2016, plaintiff’s motion for reconsideration was denied, and on September 13, 2016 plaintiff filed an appeal in the United States Court of Appeals for the Third Circuit. In addition, we are subject to legal proceedings arising in the ordinary course of business.

SEGMENT AND GEOGRAPHIC INFORMAT

SEGMENT AND GEOGRAPHIC INFORMATION	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Segment And Geographic Information	SEGMENT AND GEOGRAPHIC INFORMATION Operating segments are defined as components of an enterprise for which separate discrete financial information is available and evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. We globally manage the business within one reportable segment. Segment information is consistent with how management reviews the business, makes investing and resource allocation decisions and assesses operating performance. Products are sold principally in the United States. The following table represents total sales by geographic area, based on the location of the customer: Three Months Ended (In thousands) March 31, March 31, United States $ 129,663 $ 127,560 International 26,146 11,704 Total sales $ 155,809 $ 139,264 We classify our products into two categories: innovative fusion products and disruptive technology products. The following table represents total sales by product category: Three Months Ended (In thousands) March 31, March 31, Innovative Fusion $ 81,872 $ 70,046 Disruptive Technology 73,937 69,218 Total sales $ 155,809 $ 139,264

BACKGROUND AND SUMMARY OF SIG21

BACKGROUND AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2017
BACKGROUND AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Principles of Consolidation	Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of Globus and its wholly-owned subsidiaries. All intercompany balances and transactions are eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. We base our estimates, in part, on historical experience that management believes to be reasonable under the circumstances. Actual results could differ from those estimates. Estimates and assumptions are periodically reviewed and the effects of revisions are reflected in the condensed consolidated financial statements in the period they are determined to be necessary. Significant areas that require management’s estimates include intangible assets, contingent payment liabilities, allowance for doubtful accounts, stock-based compensation, write-down for excess and obsolete inventory, useful lives of assets, the outcome of litigation, recoverability of intangible assets and income taxes. We are subject to risks and uncertainties due to changes in the healthcare environment, regulatory oversight, competition, and legislation that may cause actual results to differ from estimated results.
Marketable Securities	Marketable Securities Our marketable securities include municipal bonds, corporate debt securities, commercial paper, securities of U.S. government-sponsored agencies and asset-backed securities, and are classified as available-for-sale as of March 31, 2017 . Available-for-sale securities are recorded at fair value in both short-term and long-term marketable securities on our condensed consolidated balance sheets. The change in fair value for available-for-sale securities is recorded, net of taxes, as a component of accumulated other comprehensive loss on our condensed consolidated balance sheets. Premiums and discounts are recognized over the life of the related security as an adjustment to yield using the straight-line method. Realized gains or losses from the sale of our marketable securities are determined on a specific identification basis. Realized gains and losses, along with interest income and the amortization/accretion of premiums/discounts are included as a component of other income, net, on our condensed consolidated statements of income. Interest receivable is recorded as a component of prepaid expenses and other current assets on our condensed consolidated balance sheets. We maintain a portfolio of various holdings, types and maturities, though most of the securities in our portfolio could be liquidated at minimal cost at any time. We invest in securities that meet or exceed standards as defined in our investment policy. Our policy also limits the amount of credit exposure to any one issue, issuer or type of security. We review our securities for other-than-temporary impairment at each reporting period. If an unrealized loss for any security is considered to be other-than-temporary, the loss will be recognized in our condensed consolidated statement of income in the period the determination is made.
Inventories	Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined on a first-in, first-out basis. The majority of our inventories are finished goods and we utilize both in-house manufacturing and third-party suppliers to source our products. We periodically evaluate the carrying value of our inventories in relation to our estimated forecast of product demand, which takes into consideration the estimated life cycle of product releases. When quantities on hand exceed estimated sales forecasts, we record a write-down for such excess inventories.
Revenue Recognition	Revenue Recognition Revenue is recognized when persuasive evidence of an arrangement exists, product delivery has occurred, pricing is fixed or determinable, and collection is reasonably assured. A significant portion of our revenue is generated from consigned inventory maintained at hospitals or with sales representatives. For these products, revenue is recognized at the time the product is used or implanted. For all other transactions, we recognize revenue when title to the goods and risk of loss transfer to customers, provided there are no remaining performance obligations that will affect the customer’s final acceptance of the sale. Our policy is to classify shipping and handling costs billed to customers as sales and the related expenses as cost of goods sold.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”) . ASU 2014-09 amends the guidance in former Topic 605, Revenue Recognition , and most other existing revenue guidances in US GAAP. Under the new standard, an entity will recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the payment to which the entity expects to be entitled in exchange for those goods or services and provide additional disclosures. As amended, the effective date for public entities is annual reporting periods beginning after December 15, 2017 and interim periods therein. Early adoption is not permitted prior to the first quarter of 2017. We will adopt ASU 2014-09 effective January 1, 2018 using the modified retrospective method (retrospective application with the cumulative effect of initially applying the guidance recognized at the date of initial application). This update will not have a material impact on our financial position, results of operations, and disclosures. In July 2015, the FASB released ASU 2015-11, Simplifying the Measurement of Inventory (Topic 330) (“ASU 2015-11”) as part of the FASB’s Simplification Initiative. This update is intended to more closely align the measurement of inventory under GAAP with the measurement of inventory under International Financial Reporting Standards. Within the scope of the update, an entity is required to measure inventory at the lower of cost or net realizable value. Net realizable value is defined as the estimated selling price in the ordinary course of business, less reasonable and predictable costs of completion, disposal and transportation. ASU 2015-11 is effective for all public entities for fiscal years beginning after December 31, 2016, including interim reporting periods within that period, and is required to be applied prospectively, with early adoption permitted. We adopted ASU 2015-11 on January 1, 2017. This update does not have a material impact on our financial position, results of operations, and disclosures. In February 2016, the FASB released ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”). Under ASU 2016-02, a right-of-use asset and lease obligation will be recorded for all leases with terms greater than 12 months, whether operating or financing, while the income statement will reflect lease expense for operating leases and amortization/interest expense for financing leases. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, with early adoption permitted, and requires the use of the modified retrospective method, which will require adjustment to all comparative periods presented in the consolidated financial statements. We are currently evaluating the impact of this update on our financial position, results of operations, and disclosures. In March 2016, the FASB released ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), which will simplify the income tax consequences, accounting for forfeitures, and classification on the statements of cash flows. ASU 2016-09 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016, and is required to be applied either prospectively, retrospectively or using a modified retrospective transition method, depending on the area covered in this update. We adopted ASU 2016-09 effective January 1, 2017. ASU 2016-09 requires that all excess tax benefits and tax deficiencies are recognized as income tax expense or benefit in the income statement as discrete items in the reporting period in which they occur. The adoption of this provision is required to be applied using a prospective transition method, therefore prior period net income has not been adjusted. Under the provisions of the new guidance, we elected to account for forfeitures as they occur, and using the required modified retrospective adoption, the impact to retained earnings was immaterial. We elected to apply the presentation requirements for cash flows related to excess tax benefits retrospectively to all periods presented. As a result of this retrospective application, our cash provided by operating activities increased by $0.5 million for the three months ended March 31, 2016, and our cash provided by financing activities decreased by $0.5 million for the three months ended March 31, 2016. In November 2016, the FASB released ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”), which requires that amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the total beginning and ending amounts for the periods shown on the statement of cash flows. Transfers between cash and cash equivalents and restricted cash and restricted cash equivalents will no longer be presented in the statement of cash flows. The amendments in this update should be applied using a retrospective transition method to each period presented. This update is effective for annual periods beginning after December 15, 2017, and interim periods within those fiscal years; early adoption is permitted, including adoption in an interim period. We do not expect the adoption of this update to have any material impact on our financial position, cash flows, or disclosures. In January 2017. the FASB released ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (“ASU 2017-01”), which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The amendments in this ASU should be applied prospectively and are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early application permitted. No disclosures are required at transition. We are currently evaluating the timing and impact of the new standard on our financial position, results of operations and disclosures. In January 2017. the FASB released ASU 2017-04, Intangibles - Goodwill and Other (Topic 805): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”), which eliminates the Step 2 calculation for the implied fair value of goodwill to measure a goodwill impairment charge. Under the updated standard, an entity will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. ASU 2017-04 does not change the guidance on completing Step 1 of the goodwill impairment test and still allows an entity to perform the optional qualitative goodwill impairment assessment before determining whether to proceed to Step 1. This update is effective for annual and interim goodwill impairment tests in fiscal years beginning after December 15, 2019 with early adoption permitted for any impairment test performed on testing dates after January 1, 2017. We are currently evaluating the timing and impact of the new standard on our financial position, results of operations and disclosures.

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	3 Months Ended
	Mar. 31, 2017
Business Combinations [Abstract]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	As of March 31, 2017 , we recorded the following preliminary purchase price allocation for the identifiable tangible and intangible assets and liabilities of Alphatec International: (In thousands) Consideration: Cash paid at closing $ 80,000 Net working capital adjustment due (2,217 ) Fair value of consideration $ 77,783 Identifiable assets acquired and liabilities assumed: Cash acquired $ 4,010 Accounts receivable 12,402 Inventory 10,579 Customer relationships 38,800 Property and equipment 4,800 Deferred tax assets 1,436 Other assets 8,092 Accounts payable and accrued expenses (8,119 ) Deferred tax liabilities (9,002 ) Total identifiable net assets 62,998 Goodwill 14,785 Total allocated purchase price $ 77,783
Business Acquisition, Pro Forma Information	The following unaudited pro forma information is based on our historical data and our assumptions for consolidated results of operations, and gives effect to our acquisition of Alphatec International as if the acquisition had occurred on January 1, 2015. These unaudited pro forma results include adjustments having a continuing impact on our condensed consolidated statements of income. These adjustments primarily consist of: adjustments to the fair value of inventory, adjustments to depreciation for the fair value and depreciable lives of property and equipment, amortization of intangibles, interest income and adjustments to tax expense based on condensed consolidated pro forma results. These results have been prepared using assumptions our management believes are reasonable, are not necessarily indicative of the actual results that would have occurred if the acquisition had occurred on January 1, 2015, and are not necessarily indicative of the results that may be achieved in the future, including but not limited to operating synergies that we may realize as a result of the acquisition. Three Months Ended (pro forma, in thousands, except per share amounts) March 31, Net sales $ 151,153 Net income 29,456 Earnings per share: Basic $ 0.31 Diluted $ 0.31

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	3 Months Ended
	Mar. 31, 2017
Intangible Assets Disclosure [Abstract]
Intangible Assets Acquired as Part of Business Combination	A summary of intangible assets is presented below: March 31, 2017 (In thousands) Weighted Gross Accumulated Amortization Intangible In-process research & development — $ 20,460 $ — $ 20,460 Supplier network 10.0 4,000 (967 ) 3,033 Customer relationships & other intangibles 6.8 42,452 (6,934 ) 35,518 Patents 16.1 3,035 (703 ) 2,332 Total intangible assets $ 69,947 $ (8,604 ) $ 61,343 December 31, 2016 (In thousands) Weighted Gross Accumulated Amortization Intangible In-process research & development — $ 20,460 $ — $ 20,460 Supplier network 10.0 4,000 (867 ) 3,133 Customer relationships & other intangibles 6.8 40,936 (5,201 ) 35,735 Patents 16.1 3,035 (657 ) 2,378 Total intangible assets $ 68,431 $ (6,725 ) $ 61,706

MARKETABLE SECURITIES (Tables)

MARKETABLE SECURITIES (Tables)	3 Months Ended
	Mar. 31, 2017
Marketable Securities [Abstract]
Marketable Securities	The composition of our short-term and long-term marketable securities is as follows: March 31, 2017 (In thousands) Contractual Maturity (in years) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-term: Municipal bonds Less than 1 $ 98,486 $ 16 $ (27 ) $ 98,475 Corporate debt securities Less than 1 27,783 18 (8 ) 27,793 Commercial paper Less than 1 16,035 2 — 16,037 Asset-backed securities Less than 1 1,358 — — 1,358 Total short-term marketable securities $ 143,662 $ 36 $ (35 ) $ 143,663 Long-term: Municipal bonds 1-2 $ 25,705 $ 8 $ (27 ) $ 25,686 Corporate debt securities 1-2 23,167 7 (35 ) 23,139 Asset-backed securities 1-2 9,265 1 (4 ) 9,262 Securities of U.S. government-sponsored agencies 1-2 5,001 — (22 ) 4,979 Total long-term marketable securities $ 63,138 $ 16 $ (88 ) $ 63,066 December 31, 2016 (In thousands) Contractual Maturity (in years) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-term: Municipal bonds Less than 1 $ 114,826 $ 2 $ (88 ) $ 114,740 Corporate debt securities Less than 1 36,020 21 (4 ) 36,037 Commercial paper Less than 1 6,898 — (2 ) 6,896 Total short-term marketable securities $ 157,744 $ 23 $ (94 ) $ 157,673 Long-term: Municipal bonds 1-2 $ 30,207 $ — $ (137 ) $ 30,070 Corporate debt securities 1-2 15,278 9 (40 ) 15,247 Asset-backed securities 1-2 10,146 6 (1 ) 10,151 Securities of U.S. government-sponsored agencies 1-2 5,002 — (26 ) 4,976 Total long-term marketable securities $ 60,633 $ 15 $ (204 ) $ 60,444

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value, Assets Measured on Recurring Basis	The fair value of our assets and liabilities measured at fair value on a recurring basis was as follows: Balance at (In thousands) March 31, Level 1 Level 2 Level 3 Assets Cash equivalents $ 103,327 $ 986 $ 102,341 $ — Municipal bonds 124,161 — 124,161 — Corporate debt securities 50,932 — 50,932 — Commercial paper 16,037 — 16,037 — Asset-backed securities 10,620 — 10,620 — Securities of U.S. government-sponsored agencies 4,979 — 4,979 — Liabilities Contingent consideration 15,326 — — 15,326 Balance at (In thousands) December 31, Level 1 Level 2 Level 3 Assets Cash equivalents $ 76,157 $ 957 $ 75,200 $ — Municipal bonds 144,810 — 144,810 — Corporate debt securities 51,284 — 51,284 — Commercial paper 6,896 — 6,896 — Asset-backed securities 10,151 — 10,151 — Securities of U.S. government-sponsored agencies 4,976 — 4,976 — Liabilities Contingent consideration 19,849 — — 19,849
Significant unobservable inputs	The recurring Level 3 fair value measurements of our contingent consideration liabilities include the following significant unobservable inputs: Fair Value at (In thousands) March 31, Valuation technique Unobservable input Range Discount rate 6.7% - 8.5% Revenue-based payments $ 10,451 Discounted cash flow Probability of payment 87.0% - 97.5% Projected year of payment 2017 - 2029 Discount rate 13.5% Milestone-based payments $ 4,875 Discounted cash flow Probability of payment 100.0% Projected year of payment 2017
Rollforward of contingent consideration	The following table provides a reconciliation of the beginning and ending balances of contingent consideration: Three Months Ended (In thousands) March 31, March 31, Beginning balance $ 19,849 $ 26,617 Contingent payments (5,001 ) (5,000 ) Changes in fair value of contingent consideration 478 643 Ending balance $ 15,326 $ 22,260

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	Mar. 31, 2017
Inventory Disclosure [Abstract]
Schedule of Inventory	(In thousands) March 31, December 31, 2016 Raw materials $ 13,507 $ 13,257 Work in process 13,684 10,747 Finished goods 85,846 88,688 Total inventories $ 113,037 $ 112,692

ACCRUED EXPENSES (Tables)

ACCRUED EXPENSES (Tables)	3 Months Ended
	Mar. 31, 2017
Payables and Accruals [Abstract]
Accrued Expenses	(In thousands) March 31, December 31, Compensation and other employee-related costs $ 17,615 $ 23,214 Legal and other settlements and expenses 1,387 734 Accrued non-income taxes 6,015 6,946 Royalties 4,758 4,671 Other 7,634 10,836 Total accrued expenses $ 37,409 $ 46,401

EQUITY (Tables)

EQUITY (Tables)	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Schedule of Issued and Outstanding Shares by Class	Our issued and outstanding common shares by Class were as follows: (Shares) Class A Common Class B Common Total March 31, 2017 72,199,555 23,877,556 96,077,111 December 31, 2016 72,052,360 23,877,556 95,929,916
Schedule of Stockholders Equity	The following table summarizes changes in total equity: Three Months Ended (In thousands) March 31, Total equity, beginning of period $ 832,078 Net income 28,714 Stock-based compensation cost 3,542 Exercise of stock options 1,990 Other comprehensive income 2,561 Total equity, end of period $ 868,885

EQUITY Accumulated Other Compre

EQUITY Accumulated Other Comprehensive Income (Tables)	3 Months Ended
	Mar. 31, 2017
Accumulated Other Comprehensive Income [Abstract]
Accumulated Other Comprehensive Income/(Loss), Net of Tax	The tables below present the changes in each component of accumulated other comprehensive income/(loss), including current period other comprehensive income/(loss) and reclassifications out of accumulated other comprehensive income/(loss): (In thousands) Unrealized gain/(loss) on marketable securities, net of tax Foreign currency translation adjustments Accumulated other comprehensive loss Accumulated other comprehensive loss, net of tax, at December 31, 2016 $ (167 ) $ (8,475 ) $ (8,642 ) Other comprehensive income before reclassifications 166 2,441 2,607 Amounts reclassified from accumulated other comprehensive income, net of tax (46 ) — (46 ) Other comprehensive income, net of tax 120 2,441 2,561 Accumulated other comprehensive loss, net of tax, at March 31, 2017 $ (47 ) $ (6,034 ) $ (6,081 ) (In thousands) Unrealized gain/(loss) on marketable securities, net of tax Foreign currency translation adjustments Accumulated other comprehensive loss Accumulated other comprehensive loss, net of tax, at December 31, 2015 $ (119 ) $ (1,839 ) $ (1,958 ) Other comprehensive income before reclassifications 224 81 305 Amounts reclassified from accumulated other comprehensive income, net of tax — — — Other comprehensive income, net of tax 224 81 305 Accumulated other comprehensive income/(loss), net of tax, at March 31, 2016 $ 105 $ (1,758 ) $ (1,653 )

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Grants in Period, Weighted Average Grant Date Fair Value	The weighted average grant date fair value per share of the options awarded to employees were as follows: Three Months Ended March 31, March 31, Weighted average grant date fair value per share $ 8.34 $ 7.81
Summary of Stock Option Activity	Stock option activity during the three months ended March 31, 2017 is summarized as follows: Option Shares(thousands) Weighted average exercise price Weighted average remaining contractual life (years) Aggregate intrinsic value (thousands) Outstanding at December 31, 2016 7,741 $ 21.08 Granted 1,460 26.23 Exercised (147 ) 13.52 Forfeited (183 ) 23.65 Outstanding at March 31, 2017 8,871 $ 21.98 7.7 $ 67,736 Exercisable at March 31, 2017 3,867 $ 18.40 6.3 $ 43,391 Expected to vest at March 31, 2017 5,003 $ 24.75 8.9 $ 24,346
Intrinsic Value and Stock-based Compensation Schedule	The intrinsic value of stock options exercised and the compensation cost related to stock options granted to employees and non-employees under our stock plans was as follows: Three Months Ended (In thousands) March 31, March 31, Intrinsic value of stock options exercised $ 1,890 $ 2,731 Stock-based compensation expense $ 3,491 $ 2,770 Net stock-based compensation capitalized into inventory 51 71 Total stock-based compensation cost $ 3,542 $ 2,841

INCOME TAXES (Tables)

INCOME TAXES (Tables)	3 Months Ended
	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Effective income tax rate	The following table provides a summary of our effective tax rate: Three Months Ended March 31, March 31, Effective income tax rate 32.3 % 35.8 %

SEGMENT AND GEOGRAPHIC INFORM32

SEGMENT AND GEOGRAPHIC INFORMATION (Tables)	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Schedule of Revenue from External Customers by Geographical Area	The following table represents total sales by geographic area, based on the location of the customer: Three Months Ended (In thousands) March 31, March 31, United States $ 129,663 $ 127,560 International 26,146 11,704 Total sales $ 155,809 $ 139,264
Revenue from External Customers by Products and Services	The following table represents total sales by product category: Three Months Ended (In thousands) March 31, March 31, Innovative Fusion $ 81,872 $ 70,046 Disruptive Technology 73,937 69,218 Total sales $ 155,809 $ 139,264

BACKGROUND AND SUMMARY OF SIG33

BACKGROUND AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2017USD ($)	Mar. 31, 2016USD ($)	Dec. 31, 2016USD ($)
Summary of Significant Accounting Policies
Excess Tax Benefit from Share-based Compensation, Operating Activities		$ 500
Decrease in restricted cash	$ 0	15,668
Restricted cash	$ 477		$ 477
Excess Tax Benefit from Share-based Compensation, Financing Activities		$ (500)
Minimum
Summary of Significant Accounting Policies
Number of Products Launched Since Inception	170
Synthes related Litigations
Summary of Significant Accounting Policies
Payments for Legal Settlements			7,900
Decrease in restricted cash			$ 8,400

ACQUISITIONS (Details)

ACQUISITIONS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Mar. 31, 2017	Sep. 01, 2016
Business Acquisition
Goodwill	$ 105,926	$ 106,215
Acquisition 2,016
Business Acquisition
Payments to Acquire Businesses, Gross	80,000
Net working capital adjustment due	(2,217)
Business Combination, Consideration Transferred	$ 77,783
Cash acquired			$ 4,010
Accounts receivable			12,402
Inventory			10,579
Customer relationships			38,800
Other assets			8,092
Property and equipment			4,800
Deferred tax assets			1,436
Accounts payable and accrued expenses			(8,119)
Deferred tax liabilities			(9,002)
Total identifiable net assets			62,998
Goodwill			14,785
Total allocated purchase price			77,783
Estimated tax deductible goodwill			$ 9,100

ACQUISITIONS Proforma (Details)

ACQUISITIONS Proforma (Details) - Acquisition 2016 $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)$ / shares
Net sales | $	$ 151,153
Net income | $	$ 29,456
Earnings per share - Basic | $ / shares	$ 0.31
Earnings per share - Diluted | $ / shares	$ 0.31

NOTE RECEIVABLE (Details)

NOTE RECEIVABLE (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016	Dec. 20, 2016	Sep. 01, 2016
Note Receivable
Note receivable, variable rate basis	LIBOR
Note Receivable, gross, noncurrent	$ 30,000	$ 30,000
Maximum
Note Receivable
Note Receivable, gross, noncurrent	$ 30,000
Minimum
Note Receivable
Note receivable, basis spread on variable rate	9.50%
Initial
Note Receivable
Note Receivable, gross, noncurrent				$ 25,000
Final
Note Receivable
Note Receivable, gross, noncurrent			$ 5,000
First Two Years
Note Receivable
Note receivable, basis spread on variable rate	8.00%
Last Three Years
Note Receivable
Note receivable, basis spread on variable rate	13.00%

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Acquired Intangible Assets
Intangible assets, gross	$ 69,947	$ 68,431
Accumulated amortization	(8,604)	(6,725)
Intangible assets, net	$ 61,343	61,706
Supplier Network
Acquired Intangible Assets
Weighted average amortization period	10 years
Gross carrying amount	$ 4,000	4,000
Accumulated amortization	(967)	(867)
Finite-lived intangible assets, net	$ 3,033	3,133
Customer Relationships & Other Intangibles
Acquired Intangible Assets
Weighted average amortization period	6 years 9 months 18 days
Gross carrying amount	$ 42,452	40,936
Accumulated amortization	(6,934)	(5,201)
Finite-lived intangible assets, net	$ 35,518	35,735
Patents
Acquired Intangible Assets
Weighted average amortization period	16 years 1 month 6 days
Gross carrying amount	$ 3,035	3,035
Accumulated amortization	(703)	(657)
Finite-lived intangible assets, net	2,332	2,378
In-Process Research & Development
Acquired Intangible Assets
Indefinite-lived intangible assets	$ 20,460	$ 20,460

MARKETABLE SECURITIES (Details)

MARKETABLE SECURITIES (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Short-term Marketable Securities
Schedule of Marketable Securities
Amortized Cost	$ 143,662	$ 157,744
Gross Unrealized Gains	36	23
Gross Unrealized Losses	(35)	(94)
Fair Value	143,663	157,673
Short-term Marketable Securities | Municipal Bonds
Schedule of Marketable Securities
Amortized Cost	98,486	114,826
Gross Unrealized Gains	16	2
Gross Unrealized Losses	(27)	(88)
Fair Value	$ 98,475	$ 114,740
Short-term Marketable Securities | Municipal Bonds | Maximum
Schedule of Marketable Securities
Contractual Maturity	1 year	1 year
Short-term Marketable Securities | Corporate Debt Securities
Schedule of Marketable Securities
Amortized Cost	$ 27,783	$ 36,020
Gross Unrealized Gains	18	21
Gross Unrealized Losses	(8)	(4)
Fair Value	$ 27,793	$ 36,037
Short-term Marketable Securities | Corporate Debt Securities | Maximum
Schedule of Marketable Securities
Contractual Maturity	1 year	1 year
Short-term Marketable Securities | Commercial Paper
Schedule of Marketable Securities
Amortized Cost	$ 16,035	$ 6,898
Gross Unrealized Gains	2	0
Gross Unrealized Losses	0	(2)
Fair Value	$ 16,037	$ 6,896
Short-term Marketable Securities | Commercial Paper | Maximum
Schedule of Marketable Securities
Contractual Maturity	1 year	1 year
Short-term Marketable Securities | Asset-backed Securities
Schedule of Marketable Securities
Amortized Cost	$ 1,358
Gross Unrealized Gains	0
Gross Unrealized Losses	0
Fair Value	$ 1,358
Short-term Marketable Securities | Asset-backed Securities | Maximum
Schedule of Marketable Securities
Contractual Maturity	1 year
Long-term Marketable Securities
Schedule of Marketable Securities
Amortized Cost	$ 63,138	$ 60,633
Gross Unrealized Gains	16	15
Gross Unrealized Losses	(88)	(204)
Fair Value	63,066	60,444
Long-term Marketable Securities | Municipal Bonds
Schedule of Marketable Securities
Amortized Cost	25,705	30,207
Gross Unrealized Gains	8	0
Gross Unrealized Losses	(27)	(137)
Fair Value	$ 25,686	$ 30,070
Long-term Marketable Securities | Municipal Bonds | Minimum
Schedule of Marketable Securities
Contractual Maturity	1 year	1 year
Long-term Marketable Securities | Municipal Bonds | Maximum
Schedule of Marketable Securities
Contractual Maturity	2 years	2 years
Long-term Marketable Securities | Corporate Debt Securities
Schedule of Marketable Securities
Amortized Cost	$ 23,167	$ 15,278
Gross Unrealized Gains	7	9
Gross Unrealized Losses	(35)	(40)
Fair Value	$ 23,139	$ 15,247
Long-term Marketable Securities | Corporate Debt Securities | Minimum
Schedule of Marketable Securities
Contractual Maturity	1 year	1 year
Long-term Marketable Securities | Corporate Debt Securities | Maximum
Schedule of Marketable Securities
Contractual Maturity	2 years	2 years
Long-term Marketable Securities | Asset-backed Securities
Schedule of Marketable Securities
Amortized Cost	$ 9,265	$ 10,146
Gross Unrealized Gains	1	6
Gross Unrealized Losses	(4)	(1)
Fair Value	$ 9,262	$ 10,151
Long-term Marketable Securities | Asset-backed Securities | Minimum
Schedule of Marketable Securities
Contractual Maturity	1 year	1 year
Long-term Marketable Securities | Asset-backed Securities | Maximum
Schedule of Marketable Securities
Contractual Maturity	2 years	2 years
Long-term Marketable Securities | Securities of U.S. government-sponsored agencies
Schedule of Marketable Securities
Amortized Cost	$ 5,001	$ 5,002
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(22)	(26)
Fair Value	$ 4,979	$ 4,976
Long-term Marketable Securities | Securities of U.S. government-sponsored agencies | Minimum
Schedule of Marketable Securities
Contractual Maturity	1 year	1 year
Long-term Marketable Securities | Securities of U.S. government-sponsored agencies | Maximum
Schedule of Marketable Securities
Contractual Maturity	2 years	2 years

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring Basis
Contingent consideration	$ 19,849	$ 26,617	$ 15,326	$ 19,849
Contingent Consideration Payment [Roll Forward]
Contingent consideration, beginning balance	19,849	26,617
Contingent Payments	(5,001)	(5,000)
Changes in fair value of contingent consideration	478	643
Contingent consideration, ending balance	15,326	$ 22,260
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis
Cash equivalents			103,327	76,157
Contingent consideration	19,849		15,326	19,849
Contingent Consideration Payment [Roll Forward]
Contingent consideration, beginning balance	19,849
Contingent consideration, ending balance	15,326
Fair Value, Measurements, Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis
Cash equivalents			986	957
Contingent consideration	0		0	0
Contingent Consideration Payment [Roll Forward]
Contingent consideration, beginning balance	0
Contingent consideration, ending balance	0
Fair Value, Measurements, Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis
Cash equivalents			102,341	75,200
Contingent consideration	0		0	0
Contingent Consideration Payment [Roll Forward]
Contingent consideration, beginning balance	0
Contingent consideration, ending balance	0
Fair Value, Measurements, Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring Basis
Cash equivalents			0	0
Contingent consideration	19,849		15,326	19,849
Contingent Consideration Payment [Roll Forward]
Contingent consideration, beginning balance	19,849
Contingent consideration, ending balance	15,326
Municipal Bonds | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis
Marketable Securities			124,161	144,810
Municipal Bonds | Fair Value, Measurements, Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis
Marketable Securities			0	0
Municipal Bonds | Fair Value, Measurements, Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis
Marketable Securities			124,161	144,810
Municipal Bonds | Fair Value, Measurements, Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring Basis
Marketable Securities			0	0
Corporate Debt Securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis
Marketable Securities			50,932	51,284
Corporate Debt Securities | Fair Value, Measurements, Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis
Marketable Securities			0	0
Corporate Debt Securities | Fair Value, Measurements, Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis
Marketable Securities			50,932	51,284
Corporate Debt Securities | Fair Value, Measurements, Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring Basis
Marketable Securities			0	0
Commercial Paper | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis
Marketable Securities			16,037	6,896
Commercial Paper | Fair Value, Measurements, Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis
Marketable Securities			0	0
Commercial Paper | Fair Value, Measurements, Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis
Marketable Securities			16,037	6,896
Commercial Paper | Fair Value, Measurements, Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring Basis
Marketable Securities			0	0
Asset-backed Securities | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis
Marketable Securities			10,620	10,151
Asset-backed Securities | Fair Value, Measurements, Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis
Marketable Securities			0	0
Asset-backed Securities | Fair Value, Measurements, Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis
Marketable Securities			10,620	10,151
Asset-backed Securities | Fair Value, Measurements, Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring Basis
Marketable Securities			0	0
Securities of U.S. government-sponsored agencies | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis
Marketable Securities			4,979	4,976
Securities of U.S. government-sponsored agencies | Fair Value, Measurements, Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis
Marketable Securities			0	0
Securities of U.S. government-sponsored agencies | Fair Value, Measurements, Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis
Marketable Securities			4,979	4,976
Securities of U.S. government-sponsored agencies | Fair Value, Measurements, Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring Basis
Marketable Securities			0	$ 0
Revenue-based payments | Fair Value, Measurements, Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring Basis
Contingent consideration	10,451		10,451
Contingent Consideration Payment [Roll Forward]
Contingent consideration, ending balance	$ 10,451
Revenue-based payments | Fair Value, Measurements, Recurring | Level 3 | Minimum
Fair Value, Assets and Liabilities Measured on Recurring Basis
Discount Rate	6.70%
Probability of Payment	87.00%
Revenue-based payments | Fair Value, Measurements, Recurring | Level 3 | Maximum
Fair Value, Assets and Liabilities Measured on Recurring Basis
Discount Rate	8.50%
Probability of Payment	97.50%
Milestone-based payments | Fair Value, Measurements, Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring Basis
Contingent consideration	$ 4,875		$ 4,875
Contingent Consideration Payment [Roll Forward]
Contingent consideration, ending balance	$ 4,875
Milestone-based payments | Fair Value, Measurements, Recurring | Level 3 | Maximum
Fair Value, Assets and Liabilities Measured on Recurring Basis
Discount Rate	13.50%
Probability of Payment	100.00%

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Raw Materials	$ 13,507	$ 13,257
Work in process	13,684	10,747
Finished goods	85,846	88,688
Total inventories	$ 113,037	$ 112,692

ACCRUED EXPENSES (Details)

ACCRUED EXPENSES (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Payables and Accruals [Abstract]
Compensation and other employee-related costs	$ 17,615	$ 23,214
Legal and other settlements and expenses	1,387	734
Accrued non-income taxes	6,015	6,946
Royalties	4,758	4,671
Other	7,634	10,836
Total accrued expenses	$ 37,409	$ 46,401

DEBT (Details)

DEBT (Details) - Revolving Credit Facility $ in Millions	3 Months Ended
	Mar. 31, 2017USD ($)
Debt Instrument
Credit facility, current borrowing capacity	$ 50
Credit facility, maximum borrowing capacity	75
Credit facility, outstanding borrowings	$ 0
Credit facility, termination period without penalty	10 days
Fluctuating Rate Per Annum
Debt Instrument
Credit facility, variable rate	LIBOR
Credit facility, period of variable rate	1 month
Credit facility, basis spread on variable rate	0.75%
Fixed Rate
Debt Instrument
Credit facility, variable rate	LIBOR
Credit facility, basis spread on variable rate	0.75%
Fixed Rate | Minimum
Debt Instrument
Credit facility, period of variable rate	1 month
Fixed Rate | Maximum
Debt Instrument
Credit facility, period of variable rate	3 months
Letter of Credit
Debt Instrument
Credit facility, maximum borrowing capacity	$ 25

EQUITY (Textuals) (Details)

EQUITY (Textuals) (Details) - shares	Mar. 31, 2017	Dec. 31, 2016
Class of Stock
Common stock, shares authorized	785,000,000
Class A Common
Class of Stock
Common stock, shares authorized	500,000,000	500,000,000
Class B Common
Class of Stock
Common stock, shares authorized	275,000,000	275,000,000
Class C Common
Class of Stock
Common stock, shares authorized	10,000,000

EQUITY (Schedule of Issued and

EQUITY (Schedule of Issued and Outstanding Shares) (Details) - shares	Mar. 31, 2017	Dec. 31, 2016
Class of Stock
Common stock, shares outstanding	96,077,111	95,929,916
Common stock, shares issued	96,077,111	95,929,916
Class A Common
Class of Stock
Common stock, shares outstanding	72,199,555	72,052,360
Common stock, shares issued	72,199,555	72,052,360
Class B Common
Class of Stock
Common stock, shares outstanding	23,877,556	23,877,556
Common stock, shares issued	23,877,556	23,877,556

EQUITY Stockholders' Equity Rol

EQUITY Stockholders' Equity Rollforward (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Increase (Decrease) in Stockholders' Equity
Total equity, beginning of period	$ 832,078
Net income	28,714	$ 28,010
Stock-based compensation cost	3,542
Exercise of stock options	1,990
Other comprehensive income	2,561	$ 305
Total equity, end of period	$ 868,885

EQUITY Accumulated Other Comp46

EQUITY Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2015
Accumulated other comprehensive income/(loss), net of tax	$ (6,081)	$ (1,653)	$ (8,642)	$ (1,958)
Other comprehensive income before reclassifications	2,607	305
Amounts reclassified from accumulated other comprehensive income, net of tax	(46)	0
Other comprehensive income, net of tax	2,561	305
Foreign Currency Translation Adjustment
Accumulated other comprehensive income/(loss), net of tax	(6,034)	(1,758)	(8,475)	(1,839)
Other comprehensive income before reclassifications	2,441	81
Amounts reclassified from accumulated other comprehensive income, net of tax	0	0
Other comprehensive income, net of tax	2,441	81
Unrealized Gain/(Loss) on Marketable Securities, Net of Tax
Accumulated other comprehensive income/(loss), net of tax	(47)	105	$ (167)	$ (119)
Other comprehensive income before reclassifications	166	224
Amounts reclassified from accumulated other comprehensive income, net of tax	(46)	0
Other comprehensive income, net of tax	$ 120	$ 224

STOCK-BASED COMPENSATION (Textu

STOCK-BASED COMPENSATION (Textuals) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2017USD ($)shares
Share-based Compensation Arrangement by Share-based Payment Award
Number of stock plans	3
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award
Maximum contractual term	10 years
Unrecognized compensation expense, unvested stock options | $	$ 35.9
Weighted average period of recognition, unvested stock options	3 years
Stock Options | Minimum
Share-based Compensation Arrangement by Share-based Payment Award
Award vesting period	4 years
2012 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award
Base number of shares that may be issuable under stock plan	3,076,923
2012 Equity Incentive Plan | Maximum
Share-based Compensation Arrangement by Share-based Payment Award
Number of shares available for grant	10,769,230
Annual percentage limit for incremental shares that may be issued	3.00%
2012 Equity Incentive Plan | Class A Common
Share-based Compensation Arrangement by Share-based Payment Award
Number of shares available for grant	6,323,262
Shares reserved under the 2012 Equity Incentive Plan	14,887,393

STOCK-BASED COMPENSATION (Grant

STOCK-BASED COMPENSATION (Grant Date Fair Values of Options Awarded to Employees) (Details) - $ / shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Weighted average grant date fair value per share	$ 8.34	$ 7.81

STOCK-BASED COMPENSATION (Stock

STOCK-BASED COMPENSATION (Stock Option Activity) (Details) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding
Number of shares outstanding beginning balance | shares	7,741
Number of shares granted | shares	1,460
Number of shares exercised | shares	(147)
Number of shares forfeited | shares	(183)
Number of shares outstanding ending balance | shares	8,871
Number of shares exercisable | shares	3,867
Number of shares expected to vest | shares	5,003
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price
Weighted average exercise price per share outstanding beginning balance | $ / shares	$ 21.08
Weighted average exercise price per share granted | $ / shares	26.23
Weighted average exercise price per share exercised | $ / shares	13.52
Weighted average exercise price per share forfeited | $ / shares	23.65
Weighted average exercise price per share outstanding ending balance | $ / shares	21.98
Weighted average exercise price per share exercisable | $ / shares	18.40
Weighted average exercise price per share expected to vest | $ / shares	$ 24.75
Weighted average remaining contractual life outstanding	7 years 8 months 12 days
Weighted average remaining contractual life exercisable	6 years 3 months 18 days
Weighted average remaining contractual life expected to vest	8 years 10 months 24 days
Aggregate intrinsic value outstanding | $	$ 67,736
Aggregate intrinsic value exercisable | $	43,391
Aggregate intrinsic value expected to vest | $	$ 24,346

STOCK-BASED COMPENSATION (Compe

STOCK-BASED COMPENSATION (Compensation Expense Related to Stock Options and Their Intrinsic Values) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Intrinsic value of stock options exercised	$ 1,890	$ 2,731
Stock-based compensation expense	3,491	2,770
Net stock-based compensation capitalized into inventory	51	71
Total stock-based compensation cost	$ 3,542	$ 2,841

INCOME TAXES (Details)

INCOME TAXES (Details)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Effective income tax rate	32.30%	35.80%

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	12 Months Ended
	Dec. 31, 2016USD ($)	Dec. 31, 2014	Dec. 31, 2013USD ($)	Feb. 17, 2016claim	Mar. 11, 2015claim	Nov. 19, 2014claim	Jul. 31, 2011claim	Apr. 30, 2010claim
Synthes USA, LLC, Synthes USA Products, LLC, and Synthes USA Sales, LLC Litigation
Loss Contingencies
Loss Contingency, Pending Claims, Number							3
Synthes USA, LLC, Synthes USA Products, LLC, and Synthes USA Sales, LLC Litigation | Minimum
Loss Contingencies
Loss Contingency, Pending Claims, Number							1
Bianco Litigation
Loss Contingencies
Combined litigation loss | $			$ 4.3
Royalty Rate		5.00%
Royalty Period		15 years
N-Spine and Synthes Litigation | Minimum
Loss Contingencies
Loss Contingency, Pending Claims, Number								1
Synthes related Litigations
Loss Contingencies
Loss Contingency, Claims Settled, Number	4
Payments for Legal Settlements | $	$ 7.9
Bonutti Skeletal Innovations LLC Litigation
Loss Contingencies
Loss Contingency, Pending Claims, Number						6
Bonutti Skeletal Innovations LLC Litigation | Minimum
Loss Contingencies
Loss Contingency, Pending Claims, Number						1
Flexuspine Inc. Litigation
Loss Contingencies
Loss Contingency, Pending Claims, Number					5
Flexuspine Inc. Litigation | Minimum
Loss Contingencies
Loss Contingency, Pending Claims, Number					1
Stern Litigation
Loss Contingencies
Loss Contingency, Pending Claims, Number				3
Stern Litigation | Minimum
Loss Contingencies
Loss Contingency, Pending Claims, Number				1

SEGMENT AND GEOGRAPHIC INFORM53

SEGMENT AND GEOGRAPHIC INFORMATION (Geographic Location) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)segments	Mar. 31, 2016USD ($)
Revenues from External Customers
Number of Reportable Segments | segments	1
Total sales	$ 155,809	$ 139,264
United States
Revenues from External Customers
Total sales	129,663	127,560
International
Revenues from External Customers
Total sales	$ 26,146	$ 11,704

SEGMENT AND GEOGRAPHIC INFORM54

SEGMENT AND GEOGRAPHIC INFORMATION (Products) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)categories	Mar. 31, 2016USD ($)
Revenue from External Customer
Total sales	$ 155,809	$ 139,264
Textuals [Abstract]
Number of product categories | categories	2
Innovative Fusion
Revenue from External Customer
Total sales	$ 81,872	70,046
Disruptive Technology
Revenue from External Customer
Total sales	$ 73,937	$ 69,218