Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 17, 2020 | Jun. 30, 2019 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K/A | ||
Document Period End Date | Dec. 31, 2019 | ||
Entity Registrant Name | GLOBUS MEDICAL, INC. | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 99,835,463 | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Title of 12(b) Security | Class A Common Stock, par value $.001 per share | ||
Trading Symbol | GMED | ||
Security Exchange Name | NYSE | ||
Entity File Number | 001-35621 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 04-3744954 | ||
Entity Address, Address Line One | 2560 General Armistead Avenue | ||
Entity Address, City or Town | Audubon | ||
Entity Address, State or Province | PA | ||
Entity Address, Postal Zip Code | 19403 | ||
City Area Code | 610 | ||
Local Phone Number | 930-1800 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Amendment Flag | true | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001237831 | ||
Current Fiscal Year End Date | --12-31 | ||
EntityPublicFloat | $ 3.3 | ||
Entity Well Known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Documents Incorporated By Reference [Text Block] | DOCUMENTS INCORPORATED BY REFERENCE Portions of our Proxy Statement for our 2020 Annual Meeting of Stockholders, to be filed within 120 days of December 31, 2019, are incorporated by reference in Part III, Items 10, 11, 12, 13 and 14 herein of this Annual Report. Such Proxy Statement, except for the parts therein which have been specifically incorporated by reference, shall not be deemed “filed” for the purposes of this Annual Report on Form 10-K. | ||
Amendment Description | EXPLANATORY NOTE The sole purpose of this Amendment No. 1 to Globus Medical, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2019, originally filed with the Securities and Exchange Commission on February 20, 2020, is to correct certain errors in the Inline XBRL tags contained in the original filing. Except for the correction of the Inline XBRL tags, no other changes, financial or otherwise, have been made to the Form 10-K. This Amendment No. 1 speaks as of the original filing date of the Form 10-K, does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update in any way disclosures made in the original filing of the Form 10-K. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash, cash equivalents, and restricted cash | $ 195,724 | $ 139,747 |
Short-term marketable securities | 115,763 | 199,937 |
Accounts receivable, net of allowances of $5,599 and $4,226, respectively | 154,326 | 137,067 |
Inventories | 196,314 | 131,254 |
Prepaid expenses and other current assets | 17,243 | 15,387 |
Income taxes receivable | 8,098 | 7,289 |
Total current assets | 687,468 | 630,681 |
Property and equipment, net of accumulated depreciation of $243,732 and $216,809, respectively | 199,841 | 171,873 |
Long-term marketable securities | 409,514 | 263,117 |
Intangible assets, net | 78,812 | 87,323 |
Goodwill | 128,775 | 123,734 |
Other assets | 21,741 | 10,364 |
Deferred income taxes | 5,926 | 13,578 |
Total assets | 1,532,077 | 1,300,670 |
Current liabilities | ||
Account payable | 24,614 | 25,895 |
Accrued expenses | 63,283 | 59,878 |
Income taxes payable | 1,057 | 917 |
Business acquisition liabilities | 6,727 | 6,830 |
Deferred revenue | 5,402 | 2,598 |
Payable to broker | 10,320 | |
Total current liabilities | 111,403 | 96,118 |
Business acquisition liabilities, net of current portion | 2,822 | 3,288 |
Deferred income taxes | 6,023 | 8,114 |
Other liabilities | 9,377 | 7,634 |
Total liabilities | 129,625 | 115,154 |
Commitments and contingencies (Note 15) | ||
Equity: | ||
Additional paid-in capital | 357,320 | 299,869 |
Accumulated other comprehensive loss | (2,898) | (7,172) |
Retained earnings | 1,047,931 | 892,721 |
Total equity | 1,402,452 | 1,185,516 |
Total liabilities and equity | 1,532,077 | 1,300,670 |
Common Class A | ||
Equity: | ||
Common stock | 77 | 76 |
Common Class B | ||
Equity: | ||
Common stock | $ 22 | $ 22 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Accounts receivable, allowances | $ 5,599,000 | $ 4,226,000 |
Property and equipment | ||
Accumulated depreciation | $ 243,732 | $ 216,809 |
Equity: | ||
Common stock, shares authorized | 785,000,000 | |
Common stock, shares issued | 99,825,080 | 98,573,354 |
Common stock, shares outstanding | 99,825,080 | 98,573,354 |
Common Class A | ||
Equity: | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 77,394,983 | 76,143,257 |
Common stock, shares outstanding | 77,394,983 | 76,143,257 |
Common Class B | ||
Equity: | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 275,000,000 | 275,000,000 |
Common stock, shares issued | 22,430,097 | 22,430,097 |
Common stock, shares outstanding | 22,430,097 | 22,430,097 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Consolidated Statements of Income [Abstract] | |||
Sales | $ 785,368 | $ 712,969 | $ 635,977 |
Cost of goods sold | 179,975 | 159,410 | 150,453 |
Gross profit | 605,393 | 553,559 | 485,524 |
Operating expenses | |||
Research and development | 60,073 | 55,496 | 43,679 |
Selling, general and administrative | 354,757 | 311,591 | 267,817 |
Provision for litigation | 2,190 | 5,878 | 2,668 |
Amortization of intangibles | 13,809 | 9,588 | 7,909 |
Acquisition related costs | 2,575 | 1,681 | 1,611 |
Total operating expenses | 433,404 | 384,234 | 323,684 |
Operating income | 171,989 | 169,325 | 161,840 |
Interest income/(expense), net | 17,406 | 13,278 | 6,608 |
Foreign currency transaction gain/(loss) | 75 | 360 | 909 |
Other income/(expense) | 476 | 5,642 | 571 |
Total other income/(expense), net | 17,957 | 19,280 | 8,088 |
Income before income taxes | 189,946 | 188,605 | 169,928 |
Income tax provision | 34,736 | 32,131 | 62,580 |
Net income | $ 155,210 | $ 156,474 | $ 107,348 |
Earnings per share | |||
Basic | $ 1.57 | $ 1.60 | $ 1.12 |
Diluted | $ 1.52 | $ 1.54 | $ 1.10 |
Weighted average shares outstanding | |||
Basic | 99,150 | 97,884 | 96,243 |
Dilutive stock options | 2,848 | 3,432 | 1,644 |
Diluted | 101,998 | 101,316 | 97,887 |
Anti-dilutive stock options excluded from weighted average calculation | 4,494 | 2,451 | 2,873 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Consolidated Statements of Comprehensive Income [Abstract] | |||
Net income | $ 155,210 | $ 156,474 | $ 107,348 |
Other comprehensive income/(loss) | |||
Unrealized gain/(loss) on marketable securities, net of tax | 3,767 | 145 | (146) |
Foreign currency translation gain/(loss) | 507 | (410) | 1,881 |
Total other comprehensive income/(loss) | 4,274 | (265) | 1,735 |
Comprehensive income | $ 159,484 | $ 156,209 | $ 109,083 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Thousands | Common StockCommon Class A | Common StockCommon Class B | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total |
Shares, Outstanding, Beginning Balance at Dec. 31, 2016 | 72,052 | 23,878 | ||||
Total equity, beginning of period at Dec. 31, 2016 | $ 72 | $ 24 | $ 211,725 | $ (8,642) | $ 628,899 | $ 832,078 |
Stock-based compensation | 14,882 | 14,882 | ||||
Exercise of stock options (shares) | 728 | |||||
Exercise of stock options | $ 1 | 11,734 | 11,735 | |||
Comprehensive Income (Loss) | 1,735 | 107,348 | 109,083 | |||
Total equity, end of period at Dec. 31, 2017 | $ 73 | $ 24 | 238,341 | (6,907) | 736,247 | 967,778 |
Shares, Outstanding, Ending Balance at Dec. 31, 2017 | 72,780 | 23,878 | ||||
Stock-based compensation | 22,219 | 22,219 | ||||
Exercise of stock options (shares) | 1,917 | |||||
Exercise of stock options | $ 2 | 39,309 | 39,311 | |||
Comprehensive Income (Loss) | (265) | 156,474 | 156,209 | |||
Conversion of Stock, Shares Issued | 1,447 | (1,447) | ||||
Conversion of Stock, Amount Issued | $ 1 | $ (1) | ||||
Total equity, end of period at Dec. 31, 2018 | $ 76 | $ 22 | 299,869 | (7,172) | 892,721 | 1,185,516 |
Shares, Outstanding, Ending Balance at Dec. 31, 2018 | 76,144 | 22,431 | ||||
Stock-based compensation | 26,416 | $ 26,416 | ||||
Exercise of stock options (shares) | 1,250 | 1,251 | ||||
Exercise of stock options | $ 1 | 31,035 | $ 31,036 | |||
Comprehensive Income (Loss) | 4,274 | 155,210 | 159,484 | |||
Total equity, end of period at Dec. 31, 2019 | $ 77 | $ 22 | $ 357,320 | $ (2,898) | $ 1,047,931 | $ 1,402,452 |
Shares, Outstanding, Ending Balance at Dec. 31, 2019 | 77,394 | 22,431 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 155,210 | $ 156,474 | $ 107,348 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation and amortization | 52,734 | 41,630 | 42,067 |
Amortization of premium (discount) on marketable securities | (1,089) | 1,677 | 2,671 |
Write-down for excess and obsolete inventories | 2,498 | 10,475 | 11,519 |
Stock-based compensation expense | 26,085 | 21,899 | 14,686 |
Allowance for doubtful accounts | 3,026 | 957 | 1,718 |
Change in fair value of business acquisition liabilities | 1,787 | 985 | 1,240 |
Impairment of intangible assets | 516 | ||
Change in deferred income taxes | 4,302 | 971 | 8,292 |
(Gain)/loss on disposal of assets, net | 866 | (3,557) | |
(Increase)/decrease in: | |||
Accounts receivable | (18,306) | (21,789) | (24,955) |
Inventories | (50,018) | (31,382) | (5,277) |
Prepaid expenses and other assets | (12,263) | (7,496) | (4,774) |
Increase/(decrease) in: | |||
Accounts payable | 773 | (3,008) | 9,843 |
Accrued expenses and other liabilities | 7,043 | 14,728 | (2,064) |
Income taxes payable/receivable | (673) | (921) | (3,772) |
Net cash provided by operating activities | 171,975 | 181,643 | 159,058 |
Cash flows from investing activities: | |||
Purchases of marketable securities | (346,526) | (537,942) | (392,895) |
Maturities of marketable securities | 247,008 | 278,049 | 240,353 |
Sales of marketable securities | 53,786 | 106,388 | 122,512 |
Purchases of property and equipment | (70,750) | (59,697) | (51,303) |
Collections/(issuance) of note receivable | 30,000 | ||
Proceeds from sale of assets | 5,000 | ||
Acquisition of businesses, net of cash acquired and purchases of intangible and other assets | (23,799) | (14,825) | (29,944) |
Net cash used in investing activities | (140,281) | (193,027) | (111,277) |
Cash flows from financing activities: | |||
Payment of business acquisition liabilities | (6,597) | (6,739) | (10,109) |
Proceeds from exercise of stock options | 31,036 | 39,309 | 11,735 |
Net cash provided by financing activities | 24,439 | 32,570 | 1,626 |
Effect of foreign exchange rate on cash | (156) | (256) | 1,979 |
Net increase in cash, cash equivalents, and restricted cash | 55,977 | 20,930 | 51,386 |
Cash, cash equivalents, and restricted cash at beginning of period | 139,647 | 118,817 | 66,954 |
Cash, cash equivalents, and restricted cash at end of period | 195,724 | 139,747 | 118,817 |
Supplemental disclosures of cash flow information: | |||
Interest paid | 79 | 6 | 3 |
Income taxes paid | $ 34,139 | $ 30,552 | $ 59,111 |
BACKGROUND AND SUMMARY OF SIGNI
BACKGROUND AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
BACKGROUND AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Background and Summary of Significant Accounting Policies | NOTE 1. BACKGROUND AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) The Company Globus Medical, Inc., together with its subsidiaries, is a medical device company that develops and commercializes healthcare solutions in a mission to improve the quality of life of patients with musculoskeletal disorders. We are primarily focused on implants that promote healing in patients with musculoskeletal disorders, including the use of a robotic guidance and navigation system and products to treat patients who have experienced orthopedic traumas. We are an engineering-driven company with a history of rapidly developing and commercializing advanced products and procedures to assist surgeons in effectively treating their patients and to address new treatment options. With over 200 products launched, we offer a comprehensive portfolio of innovative and differentiated technologies that address a variety of musculoskeletal pathologies, anatomies, and surgical approaches. 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. The 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 consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). (c) Principles of Consolidation The accompanying 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 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 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 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. During fourth quarter of 2017, we completed a review of the estimated useful life of our Instruments and Modules and cases. Based on historical useful life information, forecasted product life cycles and demand expectations, the useful life of Instruments and Modules and cases were extended from three to five years . This was accounted for as a change in accounting estimate and was made on a prospective basis effective October 1, 2017. For the three months ended December 31, 2018, depreciation expense was lower by approximately $ 1.3 million than it would have been had the useful life of these assets not been extended. The effect of this change on basic and diluted earnings per share for the three months ended December 31, 2018 was $ 0.01 per share. For the year ended December 31, 2018, depreciation expense was lower by approximately $ 5.7 million than it would have been had the useful life of these assets not been extended, with a diluted earnings per share impact of $ 0.05 per share . (e ) Foreign Currency Translation The functional currency of our foreign subsidiaries is generally their local currency. Assets and liabilities of the foreign subsidiaries are translated at the period end currency exchange rate and revenues and expenses are translated at an average currency exchange rate for the period. The resulting foreign currency translation gains and losses are included as a component of accumulated other comprehensive income. Gains and losses arising from intercompany foreign transactions are included in other income, net on the consolidated statement of income (f) Cash, Cash Equivalents, and Restricted Cash Cash and cash equivalents include cash on hand and all highly liquid investments with a maturity of three months or less when purchased. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the statement of financial position that sum to the total of the same such amounts shown in the statement of cash flows: December 31, (In thousands) 2019 2018 2017 2016 Cash and cash equivalents $ 195,474 $ 139,647 $ 118,817 $ 66,954 Restricted cash 250 100 — 477 Total cash, cash equivalents, and restricted cash as presented in the consolidated statement of cash flows $ 195,724 $ 139,747 $ 118,817 $ 67,431 (g) Concentrations of Credit Risk Financial instruments, which potentially subject us to concentrations of credit risk, are primarily marketable securities and accounts receivable. Concentrations of credit risk with respect to accounts receivable are limited due to the large number of entities comprising our customer base. We perform ongoing credit evaluations of our customers and generally do not require collateral. There was no customer that accounted for 10 % or more of sales for the years ended December 31, 2019, 2018, and 2017, respectively. (h) Marketable Securities Our marketable securities include municipal bonds, corporate debt securities, commercial paper, securities of government, federal agency, and other sovereign obligations, and asset-backed securities, and are classified as available-for-sale as of December 31, 2019 and 2018. Available-for-sale securities are recorded at fair value in both short-term and long-term marketable securities on our 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 income or loss on our 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 consolidated statements of income. Interest receivable is recorded as a component of prepaid expenses and other current assets on our 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 consolidated statement of income in the period the determination is made. Purchases of marketable securities include payables to broker of $ 10.3 million during the twelve months ended December 31, 2019. (i) 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. Once inventory has been written down, it creates a new cost basis for inventory that is not subsequently written up. During years ended December 31, 2019, 2018 and 2017, net adjustments to cost of sales related to excess and obsolete inventory were $ 2.5 million, $ 10.5 million and $ 11.5 million, respectively. The net adjustments for the years ended December 31, 2019, 2018 and 2017 reflect a combination of additional expense for excess and obsolete related provisions ($ 11.2 million, $ 17.6 million and $ 20.7 million, respectively) offset by sales and disposals ($ 8.7 million, $ 7.1 million and $ 9.2 million, respectively) of inventory for which an excess and obsolete provision was provided previously through expense recognized in prior periods. (j) Property and Equipment Property and equipment are recorded at cost less accumulated depreciation. Additions or improvements are capitalized, while repairs and maintenance are expensed as incurred. Depreciation and amortization are provided using the straight-line method over the related useful lives of the assets. When assets are sold or otherwise disposed of, the related property, equipment, and accumulated depreciation amounts are relieved from the accounts, and any gain or loss is recorded in the consolidated statements of income. Purchases of property and equipment included in accounts payable and accrued expenses were $ 4.2 million, $ 10.1 million, and $ 6.5 million during the twelve months ended December 31, 2019, 2018, and 2017, respectively. (k) Goodwill and Intangible Assets Goodwill represents the excess purchase price over the fair values of the identifiable assets acquired less the liabilities assumed. Goodwill is tested for impairment at a minimum on an annual basis. Goodwill is tested for impairment at the reporting unit level by comparing the reporting unit’s carrying amount to the fair value of the reporting unit. The fair values are estimated using an income and discounted cash flow approach. We perform our annual impairment test for goodwill in the fourth quarter of each year. We consider qualitative indicators of the fair value of a reporting unit when it is unlikely that a reporting unit has impaired goodwill. During the years ended December 31, 2019, 2018 and 2017, we did not record any impairment charges related to goodwill. Intangible assets consist of purchased in-process research and development (“IPR&D”), developed technology, supplier network, patents, customer relationships and non-compete agreements. Intangible assets with finite useful lives are amortized over the period of estimated benefit using the straight-line method and estimated useful lives ranging from one to seventeen years. Intangible assets are tested for impairment annually or whenever events or circumstances indicate that a carrying amount of an asset (asset group) may not be recoverable. If impairment is indicated, we measure the amount of the impairment loss as the amount by which the carrying amount exceeds the fair value of the asset. Fair value is generally determined using a discounted future cash flow analysis. During 2017, we recorded an impairment charge of $ 0.5 million related to one of our developed technologies related to one of our systems as a component of selling, general and administrative expense. There were no impairments of finite-lived intangible assets during the years ended December 31, 2019 and 2018. IPR&D has an indefinite life and is not amortized until completion of the project at which time the IPR&D becomes an amortizable asset. If the related project is not completed in a timely manner, we may have an impairment related to the IPR&D, calculated as the excess of the asset’s carrying value over its fair value. There were no impairments of IPR&D during the years ended December 31, 2019, 2018 or 2017. (l) Impairment of Long-Lived Assets We periodically evaluate the recoverability of the carrying amount of long-lived assets, which include property and equipment, as well as whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be fully recoverable. An impairment is assessed when the undiscounted future cash flows from the use and eventual disposition of an asset group are less than its carrying value. If impairment is indicated, we measure the amount of the impairment loss as the amount by which the carrying amount exceeds the fair value of the asset group. Our fair value methodology is based on quoted market prices, if available. If quoted market prices are not available, an estimate of fair value is made based on prices of similar assets or other valuation techniques including present value techniques. During the years ended December 31, 2019, 2018 and 2017, we did no t record any impairment charges related to long-lived assets. (m) Revenue Recognition Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. Sales and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. Incidental items that are immaterial in the context of the contract are recognized as expense. For purposes of disclosing disaggregated revenue, we disaggregate our revenue, into two categories, Musculoskeletal Solutions and Enabling Technologies, based on the timing of revenue recognition. Our Musculoskeletal Solutions products consist primarily of the implantable devices, disposables, and unique instruments used in an expansive range of spine, orthopedic trauma, hip, knee and extremity procedures. The majority of our Musculoskeletal Solutions contracts have a single performance obligation and revenue is recognized at a point in time. Our Enabling Technologies products are the advanced hardware and software systems and related technologies that are designed to enhance a surgeon’s capabilities and streamline surgical procedures by making them less invasive, more accurate, and more reproducible to improve patient care. The majority of our Enabling Technologies product contracts typically contain multiple performance obligations, including maintenance and support, and revenue is recognized as we fulfill each performance obligation. For contracts with multiple performance obligations, we allocate the contract’s transaction price to each performance obligation using our best estimate of the standalone selling price of each distinct good or service in the contract. Our policy is to classify shipping and handling costs billed to customers as sales and the related expenses as cost of goods sold. Nature of Products and Services A significant portion of our Musculoskeletal Solutions product revenue is generated from consigned inventory maintained at hospitals or with sales representatives. Revenue from the sale of consigned Musculoskeletal products is recognized when we transfer control, which occurs at the time the product is used or implanted. For all other Musculoskeletal Solutions product transactions, we recognize revenue when we transfer title to the goods, provided there are no remaining performance obligations that will affect the customer’s final acceptance of the sale. We use an observable price to determine the stand-alone selling price for the identified performance obligation. Revenue from the sale of Enabling Technologies products is generally recognized when title transfers to the customer which occurs at the time the product is shipped or delivered. Depending on the terms of the arrangement, we may also defer the recognition of a portion of the consideration received as we have to satisfy a future performance obligation to provide maintenance and support. We use an observable price to determine the stand-alone selling price for each separate performance obligation. Contract Balances Timing of revenue recognition may differ from the timing of invoicing to customers. We record a receivable when revenue is recognized prior to invoicing, or deferred revenue when revenue is recognized subsequent to invoicing. Deferred revenue is comprised mainly of unearned revenue related to the sales of certain Enabling Technologies products, which includes maintenance and support services. Deferred revenue is generally invoiced annually at the beginning of each contract period and recognized ratably over the coverage period. For the three months and years ended December 31, 2019, 2018 and 2017, there was an immaterial amount of revenue recognized from previously deferred revenue. Disaggregation of Revenue The following table represents total sales by revenue stream: Three Months Ended Year Ended December 31, December 31, (In thousands) 2019 2018 2017 2019 2018 2017 Musculoskeletal Solutions products $ 197,757 $ 181,638 $ 165,114 $ 738,377 $ 666,040 $ 625,057 Enabling Technologies products 13,910 14,300 10,920 46,991 46,929 10,920 Total sales $ 211,667 $ 195,938 $ 176,034 $ 785,368 $ 712,969 $ 635,977 (n) Cost of Goods Sold Cost of goods sold consists primarily of costs from our in-house manufacturing, costs of products purchased from third-party suppliers, excess and obsolete inventory charges, depreciation of surgical instruments and cases, royalties, shipping, inspection and related costs incurred in making our products available for sale or use. (o) Research and Development Research and development costs are expensed as incurred. Research and development costs include salaries, employee benefits, supplies, consulting services, clinical services and clinical trial costs, and facilities costs. Costs incurred in obtaining technology licenses and patents are charged immediately to research and development expense if the technology licensed has not reached technological feasibility and has no alternative future use. (p) Other Income In June 2018, we sold assets for $ 5.0 million, which resulted in a gain on sale of assets of $ 4.6 million. (q) Stock -Based Compensation The cost for employee and non-employee director awards is measured at the grant date based on the fair value of the award. The fair value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service period (generally the vesting period of the equity award). Awards issued to non-employees are recorded at their fair value as determined in accordance with authoritative guidance, and are periodically revalued as the awards vest and are recognized as expense over the requisite service period. The determination of the fair value of stock options is made utilizing the Black-Scholes option-pricing model which is affected by our stock price and a number of assumptions, including expected volatility, expected term, risk-free interest rate and expected dividends. Expected volatility is based on the historical volatility of the Company’s common stock over the most recent period commensurate with the estimated expected term of the Company’s stock options offering period which is derived from historical experience. The risk-free interest rate assumption is based on observed interest rates of U.S. Treasury securities appropriate for the expected terms of the stock options. The dividend yield assumption is based on the history and expectation of no dividend payouts. (r) Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which such items are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. A valuation allowance is established to offset any deferred tax assets if, based upon available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. Significant judgment is required in determining income tax provisions and in evaluating tax positions. We will establish additional provisions for income taxes when, despite the belief that tax positions are fully supportable, there remain certain positions that do not meet the minimum probability threshold that a tax position is more likely than not to be sustained upon examination by the taxing authority. In the normal course of business, we and our subsidiaries are examined by various federal, state, and foreign tax authorities. We regularly assess the potential outcomes of these examinations and any future examinations for the current or prior years in determining the adequacy of the provision for income taxes. We periodically assess the likelihood and amount of potential adjustments and adjust the income tax provision, the current tax liability, and deferred taxes in the period in which the facts that give rise to a revision become known. (s) Fair Value of Financial Instruments As of December 31, 2019 and 2018, the carrying values of cash and cash equivalents, short and long-term investments, accounts receivable, accounts payable and accrued expenses approximate their respective fair values based on their short and long-term nature. We classify our financial assets and liabilities that are measured at fair value into one of the three categories based upon inputs used to determine fair value. See “Note 6. Fair Value Measurements” below for more details regarding inputs and classifications. (t) Advertising Expense We expense advertising costs as they are incurred. Advertising expense was $ 1.1 million, $ 1.9 million and $ 1.5 million, for the years ended December 31, 2019, 2018, and 2017, respectively. (u) Legal Costs 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 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 reasonably 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. We expense legal costs related to loss contingencies as incurred. (v) Acquisition Related Costs Acquisition related costs represents the change in fair value of business acquisition related contingent consideration; costs related to integrating recently acquired businesses including but not limited to costs to exit or convert contractual obligations, severance, and information system conversion; and specific costs related to the consummation of the acquisition process such as banker fees, legal fees, and other acquisition related professional fees. (w) Medical Device Excise Tax Effective as of January 1, 2013, the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Affordability Reconciliation Act imposed a medical device excise tax (“MDET”) of 2.3 % on any entity that manufactures or imports certain medical devices offered for sale in the United States. We have historically accounted for the MDET as a component of our cost of goods sold. On December 20, 2019, pursuant to the Further Consolidated Appropriations Act, the MDET was repealed. Prior to its repeal, the MDET was on a four-year moratorium. As a result, the MDET does not apply to sales of taxable medical devices after December 31, 2015. (x) Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 replaces the incurred loss impairment methodology for measuring and recognizing credit losses with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This amendment is effective for fiscal years beginning after December 15, 2019. We adopted ASU 2016-13 on January 1, 2020. This standard did not have a material impact 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 adopted ASU 2017-04 on January 1, 2020. This standard did not have a material impact on our financial position, results of operations, and disclosures . In August 2018, the FASB released ASU 2018-13, Fair Value Measurement (Topic 820), which modifies the disclosure requirements on fair value measurements in Topic 820, including the consideration of costs and benefits. This update is effective for public entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. We adopted ASU 2018-13 on January 1, 2020. This standard did not have a material impact on our financial position, results of operations, and disclosures . (y) Recently Adopted 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 guidance 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. We adopted the standard on January 1, 2018, using the modified retrospective method. We implemented internal controls to enable the preparation of financial information upon adoption. The adoption of this standard did not have a material impact on our financial position and results of operations. See “Note 1. Background and Summary of Significant Accounting Policies; (i) Revenue Recognition ” above for more detail regarding our disclosures. In October 2016, the FASB released ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory (“ASU 2016-16”). ASU 2016-16 removes the current exception in US GAAP prohibiting entities from recognizing current and deferred income tax expenses or benefits related to transfer of assets, other than inventory, within the consolidated entity. The current exception to defer the recognition of any tax impact on the transfer of inventory within the consolidated entity until it is sold to a third party remains unaffected. This update is effective for public entities for annual reporting periods beginning after December 15, 2017. We adopted ASU 2016-16 on January 1, 2018. This standard did not have a material impact on our financial position, results of operations, and disclosures. 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 adopted ASU 2016-18 on January 1, 2018. This standard did not have a material impact on our financial position, results of operations, and 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 adopted ASU 2017-01 on January 1, 2018. This standard did not have a material impact on our financial position, results of operations, and disclosures. In May 2017, the FASB released ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting (“ASU 2017-09”), which clarifies the changes to terms or conditions of a share-based payment award that requires application of modification accounting under Topic 718. A change to an award should be accounted for as a modification unless the fair value of the modified award is the same as the original award, the vesting conditions do not change, and the classification as an equity or liability instrument does not change. This update is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2017. Early application is permitted and prospective application is required for awards modified on or after the adoption date. We adopted ASU 2017-09 on January 1, 2018. This standard did 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 permits modified retrospective method or cumulative-effect adjustment method. We adopted the standard on January 1, 2019, using the cumulative-effect adjustment transition method. As part of the adoption, we elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed carry forward of historical lease classifications. The adoption of this standard did not have a material impact on our finan |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Business Combinations | NOTE 2. BUSINESS COMBINATIONS During the second quarter of 2019, the Company acquired substantially all of the assets of StelKast, Inc. (the “StelKast Acquisition”), a privately held company that designs, manufactures and distributes orthopedic implants for knee and hip replacement surgeries. The Company has included the financial results from the StelKast Acquisition in our consolidated financial statements from the acquisition date, and the results from the StelKast Acquisition were not material to our consolidated financial statements. The fair value of the net assets acquired is $ 28.1 million. The purchase price consisted of approximately $ 23.8 million of cash paid at closing, plus a potential $ 4.3 million contingent consideration payment based on product sales milestones. The Company recorded identifiable net assets, based on their preliminary estimated fair values, related to inventory of $ 15.3 million, fixed assets of $ 4.2 million and customer relationships of $ 3.9 million and goodwill of $ 4.8 million. The majority of the goodwill is expected to be deductible for tax purposes. As of December 31, 2019, the maximum aggregated undiscounted amount of contingent consideration potentially payable related to this acquisition is $ 5.0 million |
NOTE RECEIVABLE
NOTE RECEIVABLE | 12 Months Ended |
Dec. 31, 2019 | |
NOTE RECEIVABLE [Abstract] | |
Note Receivable | NOTE 3. NOTE RECEIVABLE On September 1, 2016, in connection with the acquisition of the international operations and distribution channels of Alphatec Holdings, Inc. (“Alphatec”), 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. The term loan interest rate for the first two years following the Closing Date was priced at the London Interbank Offered Rate (“LIBOR”) plus 8.0 %, subject to a 9.5 % floor. The term loan interest rate thereafter was LIBOR plus 13.0 %. 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. On November 7, 2018, the Alphatec Borrowers repaid all of the then outstanding principal and interest under the Credit Agreement in a total amount of $ 29.3 million. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
GOODWILL AND INTANGIBLE ASSETS [Abstract] | |
Goodwill and Intangible Assets | NOTE 4. GOODWILL AND INTANGIBLE ASSETS A summary of intangible assets is presented below: December 31, 2019 (In thousands) Weighted Average Amortization Period (in years) Gross Carrying Amount Accumulated Amortization Intangible Assets, net Supplier network 10.0 $ 4,000 $ ( 2,067 ) $ 1,933 Customer relationships & other intangibles 7.0 46,766 ( 24,264 ) 22,502 Developed technology 8.6 57,577 ( 10,189 ) 47,388 Patents 16.0 8,662 ( 1,673 ) 6,989 Total intangible assets $ 117,005 $ ( 38,193 ) $ 78,812 Due to the FDA 510(k) clearance for AQRate, a robotic guidance and navigation system, in the first quarter of 2019, $19.8 million of IPR&D was transferred to Developed technology and began to be amortized over a period of 8.5 years. December 31, 2018 (In thousands) Weighted Average Amortization Period (in years) Gross Carrying Amount Accumulated Amortization Intangible Assets, net In-process research & development — $ 19,813 $ — $ 19,813 Supplier network 10.0 4,000 ( 1,667 ) 2,333 Customer relationships & other intangibles 6.7 42,413 ( 17,746 ) 24,667 Developed technology 8.6 37,547 ( 3,498 ) 34,049 Patents 16.5 7,764 ( 1,303 ) 6,461 Total intangible assets $ 111,537 $ ( 24,214 ) $ 87,323 On September 5, 2018, we acquired Nemaris, Inc. (“Nemaris”), a privately held company that markets and develops Surgimap ® , a surgical planning software platform (“Nemaris Acquisition”). The assets of the Nemaris Acquisition consist primarily of developed technology. We determined that substantially all the fair value of the gross assets on the date of acquisition is captured in the developed technology and as a result, the Nemaris acquisition was accounted for as an asset purchase. We allocated the consideration paid of $ 15.2 million on a pro rata basis to the assets acquired on their respective fair values. The useful lives of the developed technology are seven years and will be amortized on a straight-line basis. In addition to the cash paid at closing, there is a potential $ 10.0 million contingent consideration payment based on product development milestones. A summary of the net carrying value of goodwill is presented below: (In thousands) December 31, 2017 $ 123,890 Additions and adjustments — Foreign exchange ( 156 ) December 31, 2018 123,734 Additions and adjustments 4,817 Foreign exchange 224 December 31, 2019 $ 128,775 For intangible assets subject to amortization as of December 31, 2019, the following is the expected future amortization: (In thousands) Annual Amortization Year ending December 31: 2020 $ 13,859 2021 13,623 2022 13,070 2023 11,012 2024 8,046 Thereafter 19,202 Total $ 78,812 |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 12 Months Ended |
Dec. 31, 2019 | |
MARKETABLE SECURITIES [Abstract] | |
Marketable Securities | NOTE 5. MARKETABLE SECURITIES The composition of our short-term and long-term marketable securities is as follows: December 31, 2019 (In thousands) Contractual Maturity (in years) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-term: Municipal bonds Less than 1 $ 7,840 $ 23 $ ( 1 ) $ 7,862 Corporate debt securities Less than 1 69,091 247 ( 3 ) 69,335 Commercial paper Less than 1 34,747 6 ( 1 ) 34,752 U.S. government and agency securities Less than 1 — — — — Asset-backed securities Less than 1 3,808 6 — 3,814 Total short-term marketable securities $ 115,486 $ 282 $ ( 5 ) $ 115,763 Long-term: Municipal bonds 1 - 3 $ 45,010 $ 254 $ ( 8 ) $ 45,256 Corporate debt securities 1 - 3 186,356 2,578 ( 5 ) 188,929 Asset-backed securities 1 - 3 161,347 1,583 ( 33 ) 162,897 U.S. government and agency securities 1 - 2 12,366 66 — 12,432 Total long-term marketable securities $ 405,079 $ 4,481 $ ( 46 ) $ 409,514 December 31, 2018 (In thousands) Contractual Maturity (in years) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-term: Municipal bonds Less than 1 $ 14,923 $ — $ ( 25 ) $ 14,898 Corporate debt securities Less than 1 118,823 — ( 185 ) 118,638 Commercial paper Less than 1 50,202 3 ( 11 ) 50,194 U.S. government and agency securities Less than 1 4,497 — ( 1 ) 4,496 Asset-backed securities Less than 1 11,765 — ( 54 ) 11,711 Total short-term marketable securities $ 200,210 $ 3 $ ( 276 ) $ 199,937 Long-term: Municipal bonds 1 - 2 $ 2,676 $ — $ ( 4 ) $ 2,672 Corporate debt securities 1 - 3 127,676 196 ( 295 ) 127,577 Asset-backed securities 1 - 3 128,297 262 ( 89 ) 128,470 U.S. government and agency securities 1 - 3 4,411 — ( 13 ) 4,398 Total long-term marketable securities $ 263,060 $ 458 $ ( 401 ) $ 263,117 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2019 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
Fair Value Measurements | NOTE 6. 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: (In thousands) Balance at December 31, 2019 Level 1 Level 2 Level 3 Assets Cash equivalents $ 18,218 $ 4,988 $ 13,230 $ — Municipal bonds 53,118 — 53,118 — Corporate debt securities 258,264 — 258,264 — Commercial paper 34,752 — 34,752 — Asset-backed securities 166,711 — 166,711 — Government, federal agency, and other sovereign obligations 12,432 — 12,432 — Liabilities Business acquisition liabilities 9,549 — — 9,549 (In thousands) Balance at December 31, 2018 Level 1 Level 2 Level 3 Assets Cash equivalents $ 48,040 $ 259 $ 47,781 $ — Municipal bonds 17,570 — 17,570 — Corporate debt securities 246,215 — 246,215 — Commercial paper 50,194 — 50,194 — Asset-backed securities 140,181 — 140,181 — Government, federal agency, and other sovereign obligations 8,894 — 8,894 — Liabilities Business acquisition liabilities 10,118 — — 10,118 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 . Assets and Liabilities That Are Measured at Fair Value on a Nonrecurring Basis The purchase price of business acquisitions is primarily allocated to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values on the acquisition dates, with the excess recorded as goodwill. We utilize Level 3 inputs in the determination of the initial fair value. Non-financial assets such as goodwill, intangible assets, and property, plant, and equipment are subsequently measured at fair value when there is an indicator of impairment and recorded at fair value only when an impairment is recognized. We assess the impairment of intangible assets annually or whenever events or changes in circumstances indicate that the carrying amount of an intangible asset may not be recoverable. The fair value of our goodwill and intangible assets is not estimated if there is no change in events or circumstances that indicate the carrying amount of an intangible asset may not be recoverable. 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 consolidated balance sheets, and the changes in the fair value of contingent consideration are recognized within acquisition related costs in the consolidated statements of income. As part of the StelKast Acquisition during the second quarter of 2019, we incurred a milestone-based contingent consideration liability. The recurring Level 3 fair value measurements of our contingent consideration liabilities include the following significant unobservable inputs, which have not materially changed since December 31, 2018: (In thousands) Fair Value at December 31, 2019 Valuation technique Unobservable input Range Discount rate 4.7 % - 8.5 % Revenue-based payments $ 9,549 Discounted cash flow Probability of payment 75 % - 100 % Projected year of payment 2020 - 2029 The following table provides a reconciliation of the beginning and ending balances of contingent consideration: Year Ended December 31, (In thousands) 2019 2018 Beginning balance $ 10,118 $ 15,919 Purchase price contingent consideration 4,299 — Changes resulting from foreign currency fluctuations ( 58 ) ( 48 ) Contingent payments ( 6,597 ) ( 6,738 ) Changes in fair value of business acquisition liabilities 1,787 985 Ending balance $ 9,549 $ 10,118 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2019 | |
INVENTORIES [Abstract] | |
Inventories | NOTE 7. INVENTORIES December 31, (In thousands) 2019 2018 Raw materials $ 33,025 $ 20,740 Work in process 15,940 13,179 Finished goods 147,349 97,335 Total inventories $ 196,314 $ 131,254 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 8. PROPERTY AND EQUIPMENT Useful December 31, (In thousands) Life 2019 2018 Land — $ 8,290 $ 8,298 Buildings and improvements 31.5 33,242 27,267 Equipment 5 - 15 97,829 84,150 Instruments 5 253,929 219,451 Modules and cases 5 38,293 34,183 Other property and equipment 3 - 5 11,990 15,333 443,573 388,682 Less: accumulated depreciation ( 243,732 ) ( 216,809 ) Total $ 199,841 $ 171,873 Instruments are hand-held devices used by surgeons to install implants during surgery. Modules and cases are used to store and transport the instruments and implants. Depreciation expense related to property and equipment was as follows: Year Ended December 31, (In thousands) 2019 2018 2017 Depreciation $ 38,924 $ 32,042 $ 34,158 |
ACCRUED EXPENSES
ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2019 | |
ACCRUED EXPENSES [Abstract] | |
Accrued Expenses | NOTE 9. ACCRUED EXPENSES December 31, (In thousands) 2019 2018 Compensation and other employee-related costs $ 37,178 $ 32,465 Legal and other settlements and expenses 1,538 6,684 Accrued non-income taxes 4,996 3,593 Royalties 2,370 2,500 Other 17,201 14,636 Total accrued expenses $ 63,283 $ 59,878 |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2019 | |
DEBT [Abstract] | |
Debt | NOTE 10. 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. In June 2018, we amended the credit agreement to increase the revolving credit facility amount from $ 50.0 million to $ 125.0 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 $ 150.0 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 2020. 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 December 31, 2019, 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 $ 125.0 million. We may terminate the credit agreement at any time on ten days ’ notice without premium or penalty. |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Equity | NOTE 11. 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”). The holders of Class A Common are entitled to one vote for each share of Class A Common held. The holders of Class B Common are entitled to 10 votes for each share of Class B Common held. The holders of Class A Common and Class B Common vote together as one class of common stock. The Class C Common is nonvoting. Except for voting rights, the Class A Common, Class B Common and Class C Common have the same rights and privileges. Our issued and outstanding common shares by Class were as follows: (Shares) Class A Common Class B Common Class C Common Total December 31, 2019 77,394,983 22,430,097 — 99,825,080 December 31, 2018 76,143,257 22,430,097 — 98,573,354 The tables below present the changes in each component of accumulated other comprehensive income (loss), including current period other comprehensive loss and reclassifications out of accumulated other comprehensive income (loss): Unrealized 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, 2017 $ ( 313 ) ( 6,594 ) ( 6,907 ) Other comprehensive loss before reclassifications 160 ( 410 ) ( 250 ) Amounts reclassified from accumulated other comprehensive loss, net of tax ( 15 ) — ( 15 ) Other comprehensive loss, net of tax 145 ( 410 ) ( 265 ) Accumulated other comprehensive loss, net of tax, at December 31, 2018 ( 168 ) ( 7,004 ) ( 7,172 ) Other comprehensive (loss)/income before reclassifications 4,932 507 5,439 Amounts reclassified from accumulated other comprehensive loss, net of tax ( 1,165 ) - ( 1,165 ) Other comprehensive (loss)/income, net of tax 3,767 507 4,274 Accumulated other comprehensive loss, net of tax, at December 31, 2019 3,599 ( 6,497 ) ( 2,898 ) Amounts reclassified from accumulated other comprehensive loss, net of tax, related to unrealized gains/losses on marketable securities were released to other income, net in our consolidated statements of income. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2019 | |
STOCK-BASED COMPENSATION [Abstract] | |
Stock-Based Compensation | NOTE 12. 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 covered by the 2012 Plan include authorized but unissued shares, treasury shares or shares of common stock purchased on the open market. As of December 31, 2019, pursuant to the 2012 Plan, there were 14,905,194 shares of Class A Common stock reserved and 795,058 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: Year Ended December 31, 2019 2018 2017 Weighted average grant date fair value per share $ 13.76 $ 14.90 $ 9.12 The fair value of the options was estimated on the date of the grant using a Black-Scholes option pricing model with the following assumptions: Year Ended December 31, 2019 2018 2017 Risk-free interest rate 1.35 % - 2.57 % 2.30 % - 3.09 % 1.74 % - 2.20 % Expected term (years) 5.0 5.8 - 7.5 5.8 - 6.4 Expected volatility 29.0 % 23.0 % - 28.0 % 26.0 % - 29.0 % Expected dividend yield —% —% —% Stock option activity during the year ended December 31, 2019 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, 2018 9,668 $ 31.45 Granted 2,920 46.55 Exercised ( 1,251 ) 24.86 Forfeited ( 687 ) 40.08 Outstanding at December 31, 2019 10,650 $ 35.80 7.3 $ 245,781 Exercisable at December 31, 2019 5,063 $ 27.44 6.0 $ 159,155 Expected to vest at December 31, 2019 5,587 $ 43.37 8.5 $ 86,625 We use the Black Scholes pricing model to determine the fair value of our stock options (see “Note 1. Background and Summary of Significant Accounting Policies, (q) Stock-Based Compensation” above). Compensation expense related to stock options granted to employees and non-employees under the Plans and the intrinsic value of stock options exercised was as follows: Year Ended December 31, (In thousands) 2019 2018 2017 Intrinsic value of stock options exercised $ 31,315 $ 59,345 $ 12,217 Stock-based compensation expense $ 26,085 $ 21,899 $ 14,686 Net stock-based compensation capitalized into inventory 331 320 196 Total stock-based compensation cost $ 26,416 $ 22,219 $ 14,882 As of December 31, 2019, there was $ 60.6 million of unrecognized compensation expense related to unvested employee stock options that vest over a weighted average period of three years . |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
INCOME TAXES [Abstract] | |
Income Taxes | NOTE 13. INCOME TAXES The components of income before income taxes are as follows: Year Ended December 31, (In thousands) 2019 2018 2017 Domestic $ 179,194 $ 180,701 $ 155,051 Foreign 10,752 7,904 14,877 Total $ 189,946 $ 188,605 $ 169,928 The components of the provision for income taxes are as follows: Year Ended December 31, (In thousands) 2019 2018 2017 Current: Federal $ 23,093 $ 23,774 $ 46,728 State 4,532 4,662 5,009 Foreign 2,819 2,724 2,638 30,444 31,160 54,375 Deferred: Federal 6,542 4,155 10,553 State ( 68 ) ( 587 ) ( 1,123 ) Foreign ( 2,182 ) ( 2,597 ) ( 1,225 ) 4,292 971 8,205 Total $ 34,736 $ 32,131 $ 62,580 A reconciliation of the statutory U.S. federal tax rate to our effective rate is as follows: Year Ended December 31, 2019 2018 2017 Statutory U.S. federal tax rate 21.0 % 21.0 % 35.0 % State income taxes, net of federal benefit 2.2 2.3 1.9 Foreign taxes 0.4 1.7 1.0 Domestic production activities deduction ( 0.6 ) ( 0.7 ) ( 2.3 ) Tax credits ( 2.6 ) ( 1.6 ) ( 3.8 ) Stock-based compensation windfall ( 2.5 ) ( 5.2 ) ( 1.4 ) Nondeductible expenses 0.3 ( 0.6 ) 0.1 Other 0.1 0.1 ( 0.2 ) Tax reform impact — — 6.5 Effective tax rate 18.3 % 17.0 % 36.8 % Deferred income taxes reflect the tax effects of temporary differences between the basis of assets and liabilities recognized for financial reporting purposes and tax purposes. Significant components of our deferred income taxes are as follows: December 31, (In thousands) 2019 2018 Deferred tax assets: Inventory reserve $ 26,381 $ 25,398 Accruals, reserves, and other currently not deductible 8,620 10,377 Stock-based compensation 14,020 10,959 Net operating loss carryforwards 3,857 3,852 Total deferred tax assets 52,878 50,586 Valuation allowance ( 2,846 ) ( 2,683 ) Total deferred tax assets, net of valuation allowance 50,032 47,903 Deferred tax liabilities: Depreciation and amortization ( 50,129 ) ( 42,439 ) Total deferred tax liabilities ( 50,129 ) ( 42,439 ) Net deferred tax assets $ ( 97 ) $ 5,464 In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that we will realize a portion of the benefits of these deductible differences at December 31, 2019 and 2018. The Company has established valuation allowances of $ 2.8 million and $ 2.7 million at December 31, 2019 and 2018, respectively, primarily related to the uncertainty of the utilization of certain deferred tax assets and primarily comprised of tax loss carryforwards in various jurisdictions. The increase in the valuation allowance during fiscal year 2019 is primarily driven by current year foreign tax losses that are not expected to be realized. The amount of the deferred tax asset considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carryforward period are reduced. As of December 31, 2019 and 2018, we have NOL carryforwards of $ 21.4 million and $ 24.0 million, respectively, which, if unused, will expire in years 2020 through 2037. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Year Ended December 31, (In thousands) 2019 2018 2017 Unrecognized tax benefits at the beginning of the year $ 4,777 $ 2,601 $ 1,862 Additions related to current year tax positions — — — Additions related to prior year tax positions — 2,176 739 Reductions related to prior year tax positions ( 2,378 ) — — Unrecognized tax benefits at the end of the year $ 2,399 $ 4,777 $ 2,601 The reduction s related to prior year tax positions for the year ending December 31, 2019 of $ 2.4 million are primarily related to resolution of certain tax positions confirmed from refunds on amended tax returns. The impact of our unrecognized tax benefits to the effective income tax rate is as follows: December 31, (In thousands) 2019 2018 2017 Portion of total unrecognized tax benefits that, if recognized, would affect the effective income tax rate $ 2,878 $ 4,084 $ 2,076 The Company intends to indefinitely reinvest its foreign earnings abroad to ensure sufficient working capital for further expansion of its existing operations outside the United States, therefore the Company has not recorded income taxes on the undistributed earnings of its foreign subsidiaries. The undistributed earnings of our foreign subsidiaries as of December 31, 2019 are immaterial. In the event we are required to repatriate funds from outside of the United States, such repatriation may be subject to local laws, customs, and tax consequences. Interest and penalties are recorded in the statement of income as provision for income taxes. The total interest and penalties recorded in the statement of income was nominal for the years ended December 31, 2019, 2018 and 2017. We do not expect a significant change in our uncertain tax benefits in the next twelve months. We are subject to federal income tax as well as income tax of multiple state and foreign jurisdictions. With few exceptions, we are no longer subject to income tax examination by tax authorities in major jurisdictions for years prior to 2014 as of December 31, 2019. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2019 | |
LEASES [Abstract] | |
Leases | NOTE 14. LEASES The Company leases certain equipment, vehicles, and facilities under operating leases. Our leases have initial lease terms ranging from one year to 14 years. Certain leases contain options to extend terms beyond the lease termination date. In these leases, we use judgment to determine whether it is reasonably possible that we will extend the lease beyond the initial term and the length of the possible extension. Leases that have terms of less than 12 months are treated as short-term and are not recognized as right of use assets or lease liabilities. As most leases do not provide an implicit rate, we use an incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. As of December 31, 2019, the Company’s short-term lease commitments and sublease income are immaterial. The Company classifies right-of-use assets as Other assets, short-term lease liabilities as Accrued expenses, and long-term lease liabilities as Other liabilities on the Consolidated Balance Sheet. Lease expense is recognized, on a straight-line basis over the term of the lease, as a component of operating income on the Consolidated Statement of Income. Amounts reported in the Consolidated Balance Sheet as of the twelve months ended December 31, 2019 are as follows: (In thousands, except weighted average lease term and discount rate) Operating leases: Right of use assets $ 2,481 Lease liability - short term 1,339 Lease liability - long term 1,142 Total operating lease liability $ 2,481 Lease expense as of December 31, 2019 $ 3,174 Weighted-average remaining lease term - operating leases (in years) 2.6 Weighted-average discount rate 3.4 % Future minimum lease payments under non-cancellable leases as of the quarter ended December 31, 2019 are as follows: (In thousands) Operating Leases 2020 $ 1,451 2021 553 2022 315 2023 226 2024 110 Thereafter 5 Total undiscounted leases payments $ 2,660 Less : imputed interest 179 Total lease liabilities $ 2,481 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
Commitments and Contingencies | NOTE 15. 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 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 reasonably 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 consolidated earnings, financial position or cash flows. 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 the remaining claims were fully resolved through settlement by the parties on February 6, 2019. 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. 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 September 13, 2017, we settled this matter with Bianco for $ 11.5 million in cash, which resulted in the reversal of a previously recorded accrual of $ 2.5 million and the recording of $ 9.0 million in other assets that will be amortized through June 30, 2022, as a component of cost of goods sold. Moskowitz Family LLC Litigation On November 20, 2019, Moskowitz Family LLC filed suit against us in the U.S. District Court for the Western District of Texas for patent infringement. Moskowitz, a non-practicing entity, alleges that Globus willfully infringes one or more claims of eight patents by making, using, offering for sale or selling the Coalition ® , Coalition MIS ® , Coalition AGX ® , Monument ® , Independence ® , Independence MIS ® , Fortify ® and XPand ® families , Rise ® , Rise ® Intralif, Rise ® -L, ELSA ® , ELSA ® ATP, RASS, Altera ® , Ariel ® , Latis ® , Caliber ® and Caliber ® -L products. Moskowitz 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. In addition, we are subject to legal proceedings arising in the ordinary course of business. |
RETIREMENT BENEFIT PLANS
RETIREMENT BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2019 | |
RETIREMENT BENEFIT PLANS [Abstract] | |
Retirement Benefit Plans | NOTE 16. RETIREMENT BENEFIT PLANS We sponsor a 401(k) Plan covering all eligible U.S. employees. Under the 401(k) Plan, we make nondiscretionary matching contributions at the rate of 100 % of employee’s contributions up to a maximum annual contribution of $ 6,000 per eligible employee, limited to 3 % of the employee’s compensation for the period. Additionally, we contribute to various foreign retirement benefit plans required by local law or coordinated with government sponsored plans which cover many of our international employees. The benefits offered under these plans are reflective of local customs and practices in the countries concerned. Company contributions to these retirement plans were as follows: Year Ended December 31, (In thousands) 2019 2018 2017 401(k) and other retirement plan contributions $ 5,363 $ 4,682 $ 3,597 |
SEGMENT AND GEOGRAPHIC INFORMAT
SEGMENT AND GEOGRAPHIC INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
SEGMENT AND GEOGRAPHIC INFORMATION [Abstract] | |
Segment and Geographic Information | NOTE 17. SEGMENT AND GEOGRAPHIC INFORMATION Operating segments are defined as components of an enterprise for which separate 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 operating segment. Segment information is consistent with how management reviews the business, makes investing and resource allocation decisions and assesses operating performance. The following table represents total sales by geographic area, based on the location of the customer: Year Ended December 31, (In thousands) 2019 2018 2017 United States $ 647,683 $ 593,878 $ 529,882 International 137,685 119,091 106,095 Total sales $ 785,368 $ 712,969 $ 635,977 |
QUARTERLY FINANCIAL DATA
QUARTERLY FINANCIAL DATA | 12 Months Ended |
Dec. 31, 2019 | |
QUARTERLY FINANCIAL DATA [Abstract] | |
Quarterly Financial Data | NOTE 18. QUARTERLY FINANCIAL DATA (unaudited) (unaudited) March 31, June 30, September 30, December 31, (In thousands, except per share amounts) 2019 2019 2019 2019 Sales $ 182,947 $ 194,539 $ 196,215 $ 211,667 Gross profit 141,109 150,549 150,828 162,907 Net income 33,210 38,163 38,307 45,530 Net earnings per common share - basic 0.34 0.39 0.39 0.46 Net earnings per common share - diluted 0.33 0.38 0.38 0.44 * amounts might not add due to rounding (unaudited) March 31, June 30, September 30, December 31, (In thousands, except per share amounts) 2018 2018 2018 2018 Sales $ 174,411 $ 173,384 $ 169,236 $ 195,938 Gross profit 136,441 135,747 131,387 149,984 Net income 39,538 44,977 35,208 36,751 Net earnings per common share - basic 0.41 0.46 0.36 0.37 Net earnings per common share - diluted 0.39 0.44 0.35 0.36 * amounts might not add due to rounding |
SCHEDULE II VALUATION ACCOUNTS
SCHEDULE II VALUATION ACCOUNTS AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2019 | |
SCHEDULE II VALUATION ACCOUNTS AND QUALIFYING ACCOUNTS [Abstract] | |
Schedule II Valuation Accounts and Qualifying Accounts | SCHEDULE II. VALUATION ACCOUNTS AND QUALIFYING ACCOUNTS Allowance for doubtful accounts: (In thousands) Beginning of period Charged to expenses Write-offs End of period Year ended December 31, 2017 $ 2,771 $ 1,718 $ ( 526 ) $ 3,963 Year ended December 31, 2018 3,963 960 ( 697 ) 4,226 Year ended December 31, 2019 $ 4,226 $ 3,026 $ ( 1,653 ) $ 5,599 Deferred tax valuation allowance: Additions Deductions (In thousands) Beginning of period Charged to expenses Charged to other accounts Other deductions End of period Year ended December 31, 2017 $ 83 $ 511 $ 1,227 $ — $ 1,821 Year ended December 31, 2018 1,821 924 — ( 62 ) 2,683 Year ended December 31, 2019 $ 2,683 $ 163 $ — $ — $ 2,846 |
BACKGROUND AND SUMMARY OF SIG_2
BACKGROUND AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policy) | 12 Months Ended |
Dec. 31, 2019 | |
BACKGROUND AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Basis of Presentation | (b) Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). |
Principles of Consolidation | Principles of Consolidation The accompanying 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 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 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 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. During fourth quarter of 2017, we completed a review of the estimated useful life of our Instruments and Modules and cases. Based on historical useful life information, forecasted product life cycles and demand expectations, the useful life of Instruments and Modules and cases were extended from three to five years . This was accounted for as a change in accounting estimate and was made on a prospective basis effective October 1, 2017. For the three months ended December 31, 2018, depreciation expense was lower by approximately $ 1.3 million than it would have been had the useful life of these assets not been extended. The effect of this change on basic and diluted earnings per share for the three months ended December 31, 2018 was $ 0.01 per share. For the year ended December 31, 2018, depreciation expense was lower by approximately $ 5.7 million than it would have been had the useful life of these assets not been extended, with a diluted earnings per share impact of $ 0.05 per share . |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | (e ) Foreign Currency Translation The functional currency of our foreign subsidiaries is generally their local currency. Assets and liabilities of the foreign subsidiaries are translated at the period end currency exchange rate and revenues and expenses are translated at an average currency exchange rate for the period. The resulting foreign currency translation gains and losses are included as a component of accumulated other comprehensive income. Gains and losses arising from intercompany foreign transactions are included in other income, net on the consolidated statement of income |
Cash, Cash Equivalents, and Restricted Cash | Cash, Cash Equivalents, and Restricted Cash Cash and cash equivalents include cash on hand and all highly liquid investments with a maturity of three months or less when purchased. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the statement of financial position that sum to the total of the same such amounts shown in the statement of cash flows: December 31, (In thousands) 2019 2018 2017 2016 Cash and cash equivalents $ 195,474 $ 139,647 $ 118,817 $ 66,954 Restricted cash 250 100 — 477 Total cash, cash equivalents, and restricted cash as presented in the consolidated statement of cash flows $ 195,724 $ 139,747 $ 118,817 $ 67,431 |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | (g) Concentrations of Credit Risk Financial instruments, which potentially subject us to concentrations of credit risk, are primarily marketable securities and accounts receivable. Concentrations of credit risk with respect to accounts receivable are limited due to the large number of entities comprising our customer base. We perform ongoing credit evaluations of our customers and generally do not require collateral. There was no customer that accounted for 10 % or more of sales for the years ended December 31, 2019, 2018, and 2017, respectively. |
Marketable Securities | Marketable Securities Our marketable securities include municipal bonds, corporate debt securities, commercial paper, securities of government, federal agency, and other sovereign obligations, and asset-backed securities, and are classified as available-for-sale as of December 31, 2019 and 2018. Available-for-sale securities are recorded at fair value in both short-term and long-term marketable securities on our 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 income or loss on our 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 consolidated statements of income. Interest receivable is recorded as a component of prepaid expenses and other current assets on our 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 consolidated statement of income in the period the determination is made. Purchases of marketable securities include payables to broker of $ 10.3 million during the twelve months ended December 31, 2019. |
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. Once inventory has been written down, it creates a new cost basis for inventory that is not subsequently written up. During years ended December 31, 2019, 2018 and 2017, net adjustments to cost of sales related to excess and obsolete inventory were $ 2.5 million, $ 10.5 million and $ 11.5 million, respectively. The net adjustments for the years ended December 31, 2019, 2018 and 2017 reflect a combination of additional expense for excess and obsolete related provisions ($ 11.2 million, $ 17.6 million and $ 20.7 million, respectively) offset by sales and disposals ($ 8.7 million, $ 7.1 million and $ 9.2 million, respectively) of inventory for which an excess and obsolete provision was provided previously through expense recognized in prior periods. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost less accumulated depreciation. Additions or improvements are capitalized, while repairs and maintenance are expensed as incurred. Depreciation and amortization are provided using the straight-line method over the related useful lives of the assets. When assets are sold or otherwise disposed of, the related property, equipment, and accumulated depreciation amounts are relieved from the accounts, and any gain or loss is recorded in the consolidated statements of income. Purchases of property and equipment included in accounts payable and accrued expenses were $ 4.2 million, $ 10.1 million, and $ 6.5 million during the twelve months ended December 31, 2019, 2018, and 2017, respectively. |
Revenue Recognition | Revenue Recognition Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. Sales and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. Incidental items that are immaterial in the context of the contract are recognized as expense. For purposes of disclosing disaggregated revenue, we disaggregate our revenue, into two categories, Musculoskeletal Solutions and Enabling Technologies, based on the timing of revenue recognition. Our Musculoskeletal Solutions products consist primarily of the implantable devices, disposables, and unique instruments used in an expansive range of spine, orthopedic trauma, hip, knee and extremity procedures. The majority of our Musculoskeletal Solutions contracts have a single performance obligation and revenue is recognized at a point in time. Our Enabling Technologies products are the advanced hardware and software systems and related technologies that are designed to enhance a surgeon’s capabilities and streamline surgical procedures by making them less invasive, more accurate, and more reproducible to improve patient care. The majority of our Enabling Technologies product contracts typically contain multiple performance obligations, including maintenance and support, and revenue is recognized as we fulfill each performance obligation. For contracts with multiple performance obligations, we allocate the contract’s transaction price to each performance obligation using our best estimate of the standalone selling price of each distinct good or service in the contract. Our policy is to classify shipping and handling costs billed to customers as sales and the related expenses as cost of goods sold. Nature of Products and Services A significant portion of our Musculoskeletal Solutions product revenue is generated from consigned inventory maintained at hospitals or with sales representatives. Revenue from the sale of consigned Musculoskeletal products is recognized when we transfer control, which occurs at the time the product is used or implanted. For all other Musculoskeletal Solutions product transactions, we recognize revenue when we transfer title to the goods, provided there are no remaining performance obligations that will affect the customer’s final acceptance of the sale. We use an observable price to determine the stand-alone selling price for the identified performance obligation. Revenue from the sale of Enabling Technologies products is generally recognized when title transfers to the customer which occurs at the time the product is shipped or delivered. Depending on the terms of the arrangement, we may also defer the recognition of a portion of the consideration received as we have to satisfy a future performance obligation to provide maintenance and support. We use an observable price to determine the stand-alone selling price for each separate performance obligation. Contract Balances Timing of revenue recognition may differ from the timing of invoicing to customers. We record a receivable when revenue is recognized prior to invoicing, or deferred revenue when revenue is recognized subsequent to invoicing. Deferred revenue is comprised mainly of unearned revenue related to the sales of certain Enabling Technologies products, which includes maintenance and support services. Deferred revenue is generally invoiced annually at the beginning of each contract period and recognized ratably over the coverage period. For the three months and years ended December 31, 2019, 2018 and 2017, there was an immaterial amount of revenue recognized from previously deferred revenue. Disaggregation of Revenue The following table represents total sales by revenue stream: Three Months Ended Year Ended December 31, December 31, (In thousands) 2019 2018 2017 2019 2018 2017 Musculoskeletal Solutions products $ 197,757 $ 181,638 $ 165,114 $ 738,377 $ 666,040 $ 625,057 Enabling Technologies products 13,910 14,300 10,920 46,991 46,929 10,920 Total sales $ 211,667 $ 195,938 $ 176,034 $ 785,368 $ 712,969 $ 635,977 |
Cost of Goods and Service [Policy Text Block] | (n) Cost of Goods Sold Cost of goods sold consists primarily of costs from our in-house manufacturing, costs of products purchased from third-party suppliers, excess and obsolete inventory charges, depreciation of surgical instruments and cases, royalties, shipping, inspection and related costs incurred in making our products available for sale or use. |
Research and Development Expense, Policy [Policy Text Block] | Research and Development Research and development costs are expensed as incurred. Research and development costs include salaries, employee benefits, supplies, consulting services, clinical services and clinical trial costs, and facilities costs. Costs incurred in obtaining technology licenses and patents are charged immediately to research and development expense if the technology licensed has not reached technological feasibility and has no alternative future use. |
Other Income | Other Income In June 2018, we sold assets for $ 5.0 million, which resulted in a gain on sale of assets of $ 4.6 million. |
Share-based Payment Arrangement [Policy Text Block] | Stock -Based Compensation The cost for employee and non-employee director awards is measured at the grant date based on the fair value of the award. The fair value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service period (generally the vesting period of the equity award). Awards issued to non-employees are recorded at their fair value as determined in accordance with authoritative guidance, and are periodically revalued as the awards vest and are recognized as expense over the requisite service period. The determination of the fair value of stock options is made utilizing the Black-Scholes option-pricing model which is affected by our stock price and a number of assumptions, including expected volatility, expected term, risk-free interest rate and expected dividends. Expected volatility is based on the historical volatility of the Company’s common stock over the most recent period commensurate with the estimated expected term of the Company’s stock options offering period which is derived from historical experience. The risk-free interest rate assumption is based on observed interest rates of U.S. Treasury securities appropriate for the expected terms of the stock options. The dividend yield assumption is based on the history and expectation of no dividend payouts. |
Income Tax, Policy [Policy Text Block] | Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which such items are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. A valuation allowance is established to offset any deferred tax assets if, based upon available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. Significant judgment is required in determining income tax provisions and in evaluating tax positions. We will establish additional provisions for income taxes when, despite the belief that tax positions are fully supportable, there remain certain positions that do not meet the minimum probability threshold that a tax position is more likely than not to be sustained upon examination by the taxing authority. In the normal course of business, we and our subsidiaries are examined by various federal, state, and foreign tax authorities. We regularly assess the potential outcomes of these examinations and any future examinations for the current or prior years in determining the adequacy of the provision for income taxes. We periodically assess the likelihood and amount of potential adjustments and adjust the income tax provision, the current tax liability, and deferred taxes in the period in which the facts that give rise to a revision become known. |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value of Financial Instruments As of December 31, 2019 and 2018, the carrying values of cash and cash equivalents, short and long-term investments, accounts receivable, accounts payable and accrued expenses approximate their respective fair values based on their short and long-term nature. We classify our financial assets and liabilities that are measured at fair value into one of the three categories based upon inputs used to determine fair value. See “Note 6. Fair Value Measurements” below for more details regarding inputs and classifications. |
Advertising Cost [Policy Text Block] | Advertising Expense We expense advertising costs as they are incurred. Advertising expense was $ 1.1 million, $ 1.9 million and $ 1.5 million, for the years ended December 31, 2019, 2018, and 2017, respectively. |
Legal Costs, Policy [Policy Text Block] | Legal Costs 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 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 reasonably 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. We expense legal costs related to loss contingencies as incurred. |
Business Combinations Policy [Policy Text Block] | Acquisition Related Costs Acquisition related costs represents the change in fair value of business acquisition related contingent consideration; costs related to integrating recently acquired businesses including but not limited to costs to exit or convert contractual obligations, severance, and information system conversion; and specific costs related to the consummation of the acquisition process such as banker fees, legal fees, and other acquisition related professional fees. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | (k) Goodwill and Intangible Assets Goodwill represents the excess purchase price over the fair values of the identifiable assets acquired less the liabilities assumed. Goodwill is tested for impairment at a minimum on an annual basis. Goodwill is tested for impairment at the reporting unit level by comparing the reporting unit’s carrying amount to the fair value of the reporting unit. The fair values are estimated using an income and discounted cash flow approach. We perform our annual impairment test for goodwill in the fourth quarter of each year. We consider qualitative indicators of the fair value of a reporting unit when it is unlikely that a reporting unit has impaired goodwill. During the years ended December 31, 2019, 2018 and 2017, we did not record any impairment charges related to goodwill. Intangible assets consist of purchased in-process research and development (“IPR&D”), developed technology, supplier network, patents, customer relationships and non-compete agreements. Intangible assets with finite useful lives are amortized over the period of estimated benefit using the straight-line method and estimated useful lives ranging from one to seventeen years. Intangible assets are tested for impairment annually or whenever events or circumstances indicate that a carrying amount of an asset (asset group) may not be recoverable. If impairment is indicated, we measure the amount of the impairment loss as the amount by which the carrying amount exceeds the fair value of the asset. Fair value is generally determined using a discounted future cash flow analysis. During 2017, we recorded an impairment charge of $ 0.5 million related to one of our developed technologies related to one of our systems as a component of selling, general and administrative expense. There were no impairments of finite-lived intangible assets during the years ended December 31, 2019 and 2018. IPR&D has an indefinite life and is not amortized until completion of the project at which time the IPR&D becomes an amortizable asset. If the related project is not completed in a timely manner, we may have an impairment related to the IPR&D, calculated as the excess of the asset’s carrying value over its fair value. There were no impairments of IPR&D during the years ended December 31, 2019, 2018 or 2017. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | (l) Impairment of Long-Lived Assets We periodically evaluate the recoverability of the carrying amount of long-lived assets, which include property and equipment, as well as whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be fully recoverable. An impairment is assessed when the undiscounted future cash flows from the use and eventual disposition of an asset group are less than its carrying value. If impairment is indicated, we measure the amount of the impairment loss as the amount by which the carrying amount exceeds the fair value of the asset group. Our fair value methodology is based on quoted market prices, if available. If quoted market prices are not available, an estimate of fair value is made based on prices of similar assets or other valuation techniques including present value techniques. During the years ended December 31, 2019, 2018 and 2017, we did no t record any impairment charges related to long-lived assets. |
Medical Device Excise Tax | (w) Medical Device Excise Tax Effective as of January 1, 2013, the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Affordability Reconciliation Act imposed a medical device excise tax (“MDET”) of 2.3 % on any entity that manufactures or imports certain medical devices offered for sale in the United States. We have historically accounted for the MDET as a component of our cost of goods sold. On December 20, 2019, pursuant to the Further Consolidated Appropriations Act, the MDET was repealed. Prior to its repeal, the MDET was on a four-year moratorium. As a result, the MDET does not apply to sales of taxable medical devices after December 31, 2015. |
Recently Issued Accounting Pronouncements | (x) Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 replaces the incurred loss impairment methodology for measuring and recognizing credit losses with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This amendment is effective for fiscal years beginning after December 15, 2019. We adopted ASU 2016-13 on January 1, 2020. This standard did not have a material impact 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 adopted ASU 2017-04 on January 1, 2020. This standard did not have a material impact on our financial position, results of operations, and disclosures . In August 2018, the FASB released ASU 2018-13, Fair Value Measurement (Topic 820), which modifies the disclosure requirements on fair value measurements in Topic 820, including the consideration of costs and benefits. This update is effective for public entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. We adopted ASU 2018-13 on January 1, 2020. This standard did not have a material impact on our financial position, results of operations, and disclosures . (y) Recently Adopted 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 guidance 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. We adopted the standard on January 1, 2018, using the modified retrospective method. We implemented internal controls to enable the preparation of financial information upon adoption. The adoption of this standard did not have a material impact on our financial position and results of operations. See “Note 1. Background and Summary of Significant Accounting Policies; (i) Revenue Recognition ” above for more detail regarding our disclosures. In October 2016, the FASB released ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory (“ASU 2016-16”). ASU 2016-16 removes the current exception in US GAAP prohibiting entities from recognizing current and deferred income tax expenses or benefits related to transfer of assets, other than inventory, within the consolidated entity. The current exception to defer the recognition of any tax impact on the transfer of inventory within the consolidated entity until it is sold to a third party remains unaffected. This update is effective for public entities for annual reporting periods beginning after December 15, 2017. We adopted ASU 2016-16 on January 1, 2018. This standard did not have a material impact on our financial position, results of operations, and disclosures. 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 adopted ASU 2016-18 on January 1, 2018. This standard did not have a material impact on our financial position, results of operations, and 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 adopted ASU 2017-01 on January 1, 2018. This standard did not have a material impact on our financial position, results of operations, and disclosures. In May 2017, the FASB released ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting (“ASU 2017-09”), which clarifies the changes to terms or conditions of a share-based payment award that requires application of modification accounting under Topic 718. A change to an award should be accounted for as a modification unless the fair value of the modified award is the same as the original award, the vesting conditions do not change, and the classification as an equity or liability instrument does not change. This update is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2017. Early application is permitted and prospective application is required for awards modified on or after the adoption date. We adopted ASU 2017-09 on January 1, 2018. This standard did 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 permits modified retrospective method or cumulative-effect adjustment method. We adopted the standard on January 1, 2019, using the cumulative-effect adjustment transition method. As part of the adoption, we elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed carry forward of historical lease classifications. The adoption of this standard did not have a material impact on our financial position and results of operations. See “Note 14. Leases” for more detail regarding our disclosures. In February 2018, the FASB released ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) , Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“ASU 2018-02”). Prior to ASU 2018-02, GAAP required the remeasurement of deferred tax assets and liabilities as a result of a change in tax laws or rates to be presented in net income from continuing operations, even in situations in which the related income tax effects of items in accumulated other comprehensive income were originally recognized in other comprehensive income. As a result, such items, referred to as stranded tax effects, did not reflect the appropriate tax rate. Under ASU 2018-02, entities are permitted, but not required, to reclassify from accumulated other comprehensive income to retained earnings those stranded tax effects resulting from the Tax Act. ASU 2018-02 is effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. We adopted ASU 2018-02 on January 1, 2019. Adoption of the standard did not have a material impact on our financial position, results of operations and disclosures. In June 2018, the FASB released ASU 2018-07, Compensation—Stock Compensation (Topic 718) , (“ASU 2018-07”), which expanded the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. ASU 2018-07 specifies that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. This update is effective for public entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. We adopted ASU 2018-07 on January 1, 2019. Adoption of the standard did not have a material impact on our financial position, results of operations, and disclosures. |
BACKGROUND AND SUMMARY OF SIG_3
BACKGROUND AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
BACKGROUND AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Schedule Of Reconciliation Of Cash And Cash Equivalents Restricted Cash And Cash Equivalents [Table Text Block] | December 31, (In thousands) 2019 2018 2017 2016 Cash and cash equivalents $ 195,474 $ 139,647 $ 118,817 $ 66,954 Restricted cash 250 100 — 477 Total cash, cash equivalents, and restricted cash as presented in the consolidated statement of cash flows $ 195,724 $ 139,747 $ 118,817 $ 67,431 |
Disaggregation of Revenue [Table Text Block] | Disaggregation of Revenue The following table represents total sales by revenue stream: Three Months Ended Year Ended December 31, December 31, (In thousands) 2019 2018 2017 2019 2018 2017 Musculoskeletal Solutions products $ 197,757 $ 181,638 $ 165,114 $ 738,377 $ 666,040 $ 625,057 Enabling Technologies products 13,910 14,300 10,920 46,991 46,929 10,920 Total sales $ 211,667 $ 195,938 $ 176,034 $ 785,368 $ 712,969 $ 635,977 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
GOODWILL AND INTANGIBLE ASSETS [Abstract] | |
Intangible Assets Acquired as Part of Business Combination | A summary of intangible assets is presented below: December 31, 2019 (In thousands) Weighted Average Amortization Period (in years) Gross Carrying Amount Accumulated Amortization Intangible Assets, net Supplier network 10.0 $ 4,000 $ ( 2,067 ) $ 1,933 Customer relationships & other intangibles 7.0 46,766 ( 24,264 ) 22,502 Developed technology 8.6 57,577 ( 10,189 ) 47,388 Patents 16.0 8,662 ( 1,673 ) 6,989 Total intangible assets $ 117,005 $ ( 38,193 ) $ 78,812 Due to the FDA 510(k) clearance for AQRate, a robotic guidance and navigation system, in the first quarter of 2019, $19.8 million of IPR&D was transferred to Developed technology and began to be amortized over a period of 8.5 years. December 31, 2018 (In thousands) Weighted Average Amortization Period (in years) Gross Carrying Amount Accumulated Amortization Intangible Assets, net In-process research & development — $ 19,813 $ — $ 19,813 Supplier network 10.0 4,000 ( 1,667 ) 2,333 Customer relationships & other intangibles 6.7 42,413 ( 17,746 ) 24,667 Developed technology 8.6 37,547 ( 3,498 ) 34,049 Patents 16.5 7,764 ( 1,303 ) 6,461 Total intangible assets $ 111,537 $ ( 24,214 ) $ 87,323 |
Schedule of Goodwill [Table Text Block] | A summary of the net carrying value of goodwill is presented below: (In thousands) December 31, 2017 $ 123,890 Additions and adjustments — Foreign exchange ( 156 ) December 31, 2018 123,734 Additions and adjustments 4,817 Foreign exchange 224 December 31, 2019 $ 128,775 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | For intangible assets subject to amortization as of December 31, 2019, the following is the expected future amortization: (In thousands) Annual Amortization Year ending December 31: 2020 $ 13,859 2021 13,623 2022 13,070 2023 11,012 2024 8,046 Thereafter 19,202 Total $ 78,812 |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
MARKETABLE SECURITIES [Abstract] | |
Marketable Securities | The composition of our short-term and long-term marketable securities is as follows: December 31, 2019 (In thousands) Contractual Maturity (in years) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-term: Municipal bonds Less than 1 $ 7,840 $ 23 $ ( 1 ) $ 7,862 Corporate debt securities Less than 1 69,091 247 ( 3 ) 69,335 Commercial paper Less than 1 34,747 6 ( 1 ) 34,752 U.S. government and agency securities Less than 1 — — — — Asset-backed securities Less than 1 3,808 6 — 3,814 Total short-term marketable securities $ 115,486 $ 282 $ ( 5 ) $ 115,763 Long-term: Municipal bonds 1 - 3 $ 45,010 $ 254 $ ( 8 ) $ 45,256 Corporate debt securities 1 - 3 186,356 2,578 ( 5 ) 188,929 Asset-backed securities 1 - 3 161,347 1,583 ( 33 ) 162,897 U.S. government and agency securities 1 - 2 12,366 66 — 12,432 Total long-term marketable securities $ 405,079 $ 4,481 $ ( 46 ) $ 409,514 December 31, 2018 (In thousands) Contractual Maturity (in years) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-term: Municipal bonds Less than 1 $ 14,923 $ — $ ( 25 ) $ 14,898 Corporate debt securities Less than 1 118,823 — ( 185 ) 118,638 Commercial paper Less than 1 50,202 3 ( 11 ) 50,194 U.S. government and agency securities Less than 1 4,497 — ( 1 ) 4,496 Asset-backed securities Less than 1 11,765 — ( 54 ) 11,711 Total short-term marketable securities $ 200,210 $ 3 $ ( 276 ) $ 199,937 Long-term: Municipal bonds 1 - 2 $ 2,676 $ — $ ( 4 ) $ 2,672 Corporate debt securities 1 - 3 127,676 196 ( 295 ) 127,577 Asset-backed securities 1 - 3 128,297 262 ( 89 ) 128,470 U.S. government and agency securities 1 - 3 4,411 — ( 13 ) 4,398 Total long-term marketable securities $ 263,060 $ 458 $ ( 401 ) $ 263,117 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | (In thousands) Balance at December 31, 2019 Level 1 Level 2 Level 3 Assets Cash equivalents $ 18,218 $ 4,988 $ 13,230 $ — Municipal bonds 53,118 — 53,118 — Corporate debt securities 258,264 — 258,264 — Commercial paper 34,752 — 34,752 — Asset-backed securities 166,711 — 166,711 — Government, federal agency, and other sovereign obligations 12,432 — 12,432 — Liabilities Business acquisition liabilities 9,549 — — 9,549 (In thousands) Balance at December 31, 2018 Level 1 Level 2 Level 3 Assets Cash equivalents $ 48,040 $ 259 $ 47,781 $ — Municipal bonds 17,570 — 17,570 — Corporate debt securities 246,215 — 246,215 — Commercial paper 50,194 — 50,194 — Asset-backed securities 140,181 — 140,181 — Government, federal agency, and other sovereign obligations 8,894 — 8,894 — Liabilities Business acquisition liabilities 10,118 — — 10,118 |
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block] | (In thousands) Fair Value at December 31, 2019 Valuation technique Unobservable input Range Discount rate 4.7 % - 8.5 % Revenue-based payments $ 9,549 Discounted cash flow Probability of payment 75 % - 100 % Projected year of payment 2020 - 2029 |
Rollforward of contingent consideration | The following table provides a reconciliation of the beginning and ending balances of contingent consideration: Year Ended December 31, (In thousands) 2019 2018 Beginning balance $ 10,118 $ 15,919 Purchase price contingent consideration 4,299 — Changes resulting from foreign currency fluctuations ( 58 ) ( 48 ) Contingent payments ( 6,597 ) ( 6,738 ) Changes in fair value of business acquisition liabilities 1,787 985 Ending balance $ 9,549 $ 10,118 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
INVENTORIES [Abstract] | |
Schedule of Inventory | December 31, (In thousands) 2019 2018 Raw materials $ 33,025 $ 20,740 Work in process 15,940 13,179 Finished goods 147,349 97,335 Total inventories $ 196,314 $ 131,254 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Useful December 31, (In thousands) Life 2019 2018 Land — $ 8,290 $ 8,298 Buildings and improvements 31.5 33,242 27,267 Equipment 5 - 15 97,829 84,150 Instruments 5 253,929 219,451 Modules and cases 5 38,293 34,183 Other property and equipment 3 - 5 11,990 15,333 443,573 388,682 Less: accumulated depreciation ( 243,732 ) ( 216,809 ) Total $ 199,841 $ 171,873 |
Schedule Of Depreciation Related To Property And Equipment [Table Text Block] | Year Ended December 31, (In thousands) 2019 2018 2017 Depreciation $ 38,924 $ 32,042 $ 34,158 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
ACCRUED EXPENSES [Abstract] | |
Accrued Expenses | December 31, (In thousands) 2019 2018 Compensation and other employee-related costs $ 37,178 $ 32,465 Legal and other settlements and expenses 1,538 6,684 Accrued non-income taxes 4,996 3,593 Royalties 2,370 2,500 Other 17,201 14,636 Total accrued expenses $ 63,283 $ 59,878 |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 Class C Common Total December 31, 2019 77,394,983 22,430,097 — 99,825,080 December 31, 2018 76,143,257 22,430,097 — 98,573,354 |
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 loss and reclassifications out of accumulated other comprehensive income (loss): Unrealized 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, 2017 $ ( 313 ) ( 6,594 ) ( 6,907 ) Other comprehensive loss before reclassifications 160 ( 410 ) ( 250 ) Amounts reclassified from accumulated other comprehensive loss, net of tax ( 15 ) — ( 15 ) Other comprehensive loss, net of tax 145 ( 410 ) ( 265 ) Accumulated other comprehensive loss, net of tax, at December 31, 2018 ( 168 ) ( 7,004 ) ( 7,172 ) Other comprehensive (loss)/income before reclassifications 4,932 507 5,439 Amounts reclassified from accumulated other comprehensive loss, net of tax ( 1,165 ) - ( 1,165 ) Other comprehensive (loss)/income, net of tax 3,767 507 4,274 Accumulated other comprehensive loss, net of tax, at December 31, 2019 3,599 ( 6,497 ) ( 2,898 ) |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
STOCK-BASED COMPENSATION [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: Year Ended December 31, 2019 2018 2017 Weighted average grant date fair value per share $ 13.76 $ 14.90 $ 9.12 |
Summary of Stock Option Activity | Stock option activity during the year ended December 31, 2019 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, 2018 9,668 $ 31.45 Granted 2,920 46.55 Exercised ( 1,251 ) 24.86 Forfeited ( 687 ) 40.08 Outstanding at December 31, 2019 10,650 $ 35.80 7.3 $ 245,781 Exercisable at December 31, 2019 5,063 $ 27.44 6.0 $ 159,155 Expected to vest at December 31, 2019 5,587 $ 43.37 8.5 $ 86,625 |
Intrinsic Value and Stock-based Compensation Schedule | Compensation expense related to stock options granted to employees and non-employees under the Plans and the intrinsic value of stock options exercised was as follows: Year Ended December 31, (In thousands) 2019 2018 2017 Intrinsic value of stock options exercised $ 31,315 $ 59,345 $ 12,217 Stock-based compensation expense $ 26,085 $ 21,899 $ 14,686 Net stock-based compensation capitalized into inventory 331 320 196 Total stock-based compensation cost $ 26,416 $ 22,219 $ 14,882 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The fair value of the options was estimated on the date of the grant using a Black-Scholes option pricing model with the following assumptions: Year Ended December 31, 2019 2018 2017 Risk-free interest rate 1.35 % - 2.57 % 2.30 % - 3.09 % 1.74 % - 2.20 % Expected term (years) 5.0 5.8 - 7.5 5.8 - 6.4 Expected volatility 29.0 % 23.0 % - 28.0 % 26.0 % - 29.0 % Expected dividend yield —% —% —% |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
INCOME TAXES [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | The components of income before income taxes are as follows: Year Ended December 31, (In thousands) 2019 2018 2017 Domestic $ 179,194 $ 180,701 $ 155,051 Foreign 10,752 7,904 14,877 Total $ 189,946 $ 188,605 $ 169,928 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The components of the provision for income taxes are as follows: Year Ended December 31, (In thousands) 2019 2018 2017 Current: Federal $ 23,093 $ 23,774 $ 46,728 State 4,532 4,662 5,009 Foreign 2,819 2,724 2,638 30,444 31,160 54,375 Deferred: Federal 6,542 4,155 10,553 State ( 68 ) ( 587 ) ( 1,123 ) Foreign ( 2,182 ) ( 2,597 ) ( 1,225 ) 4,292 971 8,205 Total $ 34,736 $ 32,131 $ 62,580 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | A reconciliation of the statutory U.S. federal tax rate to our effective rate is as follows: Year Ended December 31, 2019 2018 2017 Statutory U.S. federal tax rate 21.0 % 21.0 % 35.0 % State income taxes, net of federal benefit 2.2 2.3 1.9 Foreign taxes 0.4 1.7 1.0 Domestic production activities deduction ( 0.6 ) ( 0.7 ) ( 2.3 ) Tax credits ( 2.6 ) ( 1.6 ) ( 3.8 ) Stock-based compensation windfall ( 2.5 ) ( 5.2 ) ( 1.4 ) Nondeductible expenses 0.3 ( 0.6 ) 0.1 Other 0.1 0.1 ( 0.2 ) Tax reform impact — — 6.5 Effective tax rate 18.3 % 17.0 % 36.8 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Deferred income taxes reflect the tax effects of temporary differences between the basis of assets and liabilities recognized for financial reporting purposes and tax purposes. Significant components of our deferred income taxes are as follows: December 31, (In thousands) 2019 2018 Deferred tax assets: Inventory reserve $ 26,381 $ 25,398 Accruals, reserves, and other currently not deductible 8,620 10,377 Stock-based compensation 14,020 10,959 Net operating loss carryforwards 3,857 3,852 Total deferred tax assets 52,878 50,586 Valuation allowance ( 2,846 ) ( 2,683 ) Total deferred tax assets, net of valuation allowance 50,032 47,903 Deferred tax liabilities: Depreciation and amortization ( 50,129 ) ( 42,439 ) Total deferred tax liabilities ( 50,129 ) ( 42,439 ) Net deferred tax assets $ ( 97 ) $ 5,464 |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Year Ended December 31, (In thousands) 2019 2018 2017 Unrecognized tax benefits at the beginning of the year $ 4,777 $ 2,601 $ 1,862 Additions related to current year tax positions — — — Additions related to prior year tax positions — 2,176 739 Reductions related to prior year tax positions ( 2,378 ) — — Unrecognized tax benefits at the end of the year $ 2,399 $ 4,777 $ 2,601 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
LEASES [Abstract] | |
Schedule Of Supplemental Balance Sheet Information Related To Leases | Amounts reported in the Consolidated Balance Sheet as of the twelve months ended December 31, 2019 are as follows: (In thousands, except weighted average lease term and discount rate) Operating leases: Right of use assets $ 2,481 Lease liability - short term 1,339 Lease liability - long term 1,142 Total operating lease liability $ 2,481 Lease expense as of December 31, 2019 $ 3,174 Weighted-average remaining lease term - operating leases (in years) 2.6 Weighted-average discount rate 3.4 % |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Future minimum lease payments under non-cancellable leases as of the quarter ended December 31, 2019 are as follows: (In thousands) Operating Leases 2020 $ 1,451 2021 553 2022 315 2023 226 2024 110 Thereafter 5 Total undiscounted leases payments $ 2,660 Less : imputed interest 179 Total lease liabilities $ 2,481 |
RETIREMENT BENEFIT PLANS (Table
RETIREMENT BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
RETIREMENT BENEFIT PLANS [Abstract] | |
Contributions To Retirement Plans | Year Ended December 31, (In thousands) 2019 2018 2017 401(k) and other retirement plan contributions $ 5,363 $ 4,682 $ 3,597 |
SEGMENT AND GEOGRAPHIC INFORM_2
SEGMENT AND GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SEGMENT AND GEOGRAPHIC INFORMATION [Abstract] | |
Schedule Of Revenue From External Customers By Geographical Area International And Domestic [Table Text Block] | The following table represents total sales by geographic area, based on the location of the customer: Year Ended December 31, (In thousands) 2019 2018 2017 United States $ 647,683 $ 593,878 $ 529,882 International 137,685 119,091 106,095 Total sales $ 785,368 $ 712,969 $ 635,977 |
QUARTERLY FINANCIAL DATA (Table
QUARTERLY FINANCIAL DATA (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
QUARTERLY FINANCIAL DATA [Abstract] | |
Schedule Of Quarterly Financial Data | NOTE 18. QUARTERLY FINANCIAL DATA (unaudited) (unaudited) March 31, June 30, September 30, December 31, (In thousands, except per share amounts) 2019 2019 2019 2019 Sales $ 182,947 $ 194,539 $ 196,215 $ 211,667 Gross profit 141,109 150,549 150,828 162,907 Net income 33,210 38,163 38,307 45,530 Net earnings per common share - basic 0.34 0.39 0.39 0.46 Net earnings per common share - diluted 0.33 0.38 0.38 0.44 * amounts might not add due to rounding (unaudited) March 31, June 30, September 30, December 31, (In thousands, except per share amounts) 2018 2018 2018 2018 Sales $ 174,411 $ 173,384 $ 169,236 $ 195,938 Gross profit 136,441 135,747 131,387 149,984 Net income 39,538 44,977 35,208 36,751 Net earnings per common share - basic 0.41 0.46 0.36 0.37 Net earnings per common share - diluted 0.39 0.44 0.35 0.36 |
BACKGROUND AND SUMMARY OF SIG_4
BACKGROUND AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||
Jun. 30, 2018 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Medical Device Excise Tax Percentage | $ 2.3 | ||||||||||||||
Property Purchases in Accounts Payable and Accrued Expenses | $ 4,200,000 | $ 10,100,000 | $ 6,500,000 | ||||||||||||
Inventory Sales and Disposals related Provisions | 8,700,000 | 7,100,000 | 9,200,000 | ||||||||||||
Excess and Obsolete related Provisions | 11,200,000 | 17,600,000 | 20,700,000 | ||||||||||||
Net Adjustment to Cost of Sales Related to Excess and Obsolete Inventory | 2,500,000 | 10,500,000 | 11,500,000 | ||||||||||||
Payable to Broker | 10,300,000 | ||||||||||||||
Revenues | $ 211,667,000 | $ 196,215,000 | $ 194,539,000 | $ 182,947,000 | $ 195,938,000 | $ 169,236,000 | $ 173,384,000 | $ 174,411,000 | $ 176,034,000 | 785,368,000 | 712,969,000 | 635,977,000 | |||
Cash and cash equivalents | 195,474,000 | 139,647,000 | 118,817,000 | 195,474,000 | 139,647,000 | 118,817,000 | $ 66,954,000 | ||||||||
Restricted Cash | 250,000 | 100,000 | 250,000 | 100,000 | 477,000 | ||||||||||
Depreciation expense change | $ (1,300,000) | $ (5,700,000) | |||||||||||||
Change in earnings per share, for change in accounting estimate | $ 0.01 | $ 0.05 | |||||||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Total | $ 195,724,000 | $ 139,747,000 | 118,817,000 | 195,724,000 | $ 139,747,000 | 118,817,000 | $ 67,431,000 | ||||||||
Payments to Acquire Investments | 346,526,000 | 537,942,000 | 392,895,000 | ||||||||||||
Proceeds from Sale of Available-for-sale Securities | $ 53,786,000 | $ 106,388,000 | $ 122,512,000 | ||||||||||||
Diluted | $ 0.44 | $ 0.38 | $ 0.38 | $ 0.33 | $ 0.36 | $ 0.35 | $ 0.44 | $ 0.39 | $ 1.52 | $ 1.54 | $ 1.10 | ||||
Concentration Risk, Percentage | 10.00% | 10.00% | 10.00% | ||||||||||||
Goodwill and Intangible Asset Impairment | $ 0 | $ 0 | $ 500,000 | ||||||||||||
Impairment of Long-Lived Assets Held-for-use | 0 | 0 | 0 | ||||||||||||
Proceeds from Sale of Other Assets | $ 5,000,000 | ||||||||||||||
Gain (Loss) on Disposition of Other Assets | $ 4,600,000 | ||||||||||||||
Advertising Expense | 1,100,000 | 1,900,000 | 1,500,000 | ||||||||||||
IPR&D [Member] | |||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Goodwill and Intangible Asset Impairment | 0 | 0 | 0 | ||||||||||||
Musculoskeletal Solutions [Member] | |||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Revenues | $ 197,757,000 | $ 181,638,000 | 165,114,000 | 738,377,000 | 666,040,000 | 625,057,000 | |||||||||
Enabling Technologies [Member] | |||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Revenues | $ 13,910,000 | $ 14,300,000 | $ 10,920,000 | $ 46,991,000 | $ 46,929,000 | $ 10,920,000 | |||||||||
Minimum [Member] | Instruments And Modules And Cases [Member] | |||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Forecasted Product Life Cycles, Term | 3 years | ||||||||||||||
Maximum [Member] | Instruments And Modules And Cases [Member] | |||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Forecasted Product Life Cycles, Term | 5 years |
BUSINESS COMBINATIONS (Details)
BUSINESS COMBINATIONS (Details) - USD ($) $ in Millions | Sep. 05, 2018 | Dec. 31, 2019 | May 14, 2019 |
Business Combinations [Abstract] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | $ 15.3 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 4.2 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 3.9 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Contingent Liability | 5 | $ 4.3 | |
Payments to Acquire Businesses, Gross | $ 15.2 | 23.8 | |
Goodwill, Acquired During Period | 4.8 | ||
Business Combination, Consideration Transferred | $ 28.1 |
NOTE RECEIVABLE (Details)
NOTE RECEIVABLE (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 20, 2016 | Sep. 01, 2016 | |
Note Receivable [Line Items] | |||
Proceeds from Collection of Notes Receivable | $ 29.3 | ||
Maximum [Member] | |||
Note Receivable [Line Items] | |||
Note Receivable, gross, noncurrent | $ 30 | ||
Minimum [Member] | |||
Note Receivable [Line Items] | |||
Note receivable, basis spread on variable rate | 9.50% | ||
Initial [Member] | |||
Note Receivable [Line Items] | |||
Note Receivable, gross, noncurrent | $ 25 | ||
Final [Member] | |||
Note Receivable [Line Items] | |||
Note Receivable, gross, noncurrent | $ 5 | ||
First Two Years [Member] | |||
Note Receivable [Line Items] | |||
Note receivable, basis spread on variable rate | 8.00% | ||
Last Three Years [Member] | |||
Note Receivable [Line Items] | |||
Note receivable, basis spread on variable rate | 13.00% |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | Sep. 05, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Acquired Intangible Assets [Line Items] | ||||
Payments to Acquire Businesses, Gross | $ 15,200 | $ 23,800 | ||
Gross carrying amount | 117,005 | $ 111,537 | ||
Accumulated amortization | (38,193) | (24,214) | ||
Intangible Assets, Net (Excluding Goodwill), Total | 78,812 | 87,323 | ||
Finite-lived intangible assets, net | 78,812,000 | |||
Business Combination, Contingent Consideration, Liability | $ 10,000 | $ 9,549 | $ 10,118 | $ 15,919 |
In Process Research and Development [Member] | ||||
Acquired Intangible Assets [Line Items] | ||||
Weighted average amortization period | 8 years 6 months | |||
Finite-Lived Intangible Asset, Useful Life | 8 years 6 months | |||
Supplier Network [Member] | ||||
Acquired Intangible Assets [Line Items] | ||||
Weighted average amortization period | 10 years | 10 years | ||
Gross carrying amount | $ 4,000 | $ 4,000 | ||
Accumulated amortization | (2,067) | (1,667) | ||
Intangible Assets, Net (Excluding Goodwill), Total | $ 1,933 | $ 2,333 | ||
Finite-Lived Intangible Asset, Useful Life | 10 years | 10 years | ||
Customer Relationships [Member] | ||||
Acquired Intangible Assets [Line Items] | ||||
Weighted average amortization period | 7 years | 6 years 8 months 12 days | ||
Gross carrying amount | $ 46,766 | $ 42,413 | ||
Accumulated amortization | (24,264) | (17,746) | ||
Intangible Assets, Net (Excluding Goodwill), Total | $ 22,502 | $ 24,667 | ||
Finite-Lived Intangible Asset, Useful Life | 7 years | 6 years 8 months 12 days | ||
Developed Technology Rights [Member] | ||||
Acquired Intangible Assets [Line Items] | ||||
Intangible Assets, Explanation of Significant Additions | $19.8 | |||
Weighted average amortization period | 7 years | 8 years 7 months 6 days | 8 years 7 months 6 days | |
Gross carrying amount | $ 57,577 | $ 37,547 | ||
Accumulated amortization | (10,189) | (3,498) | ||
Intangible Assets, Net (Excluding Goodwill), Total | $ 47,388 | $ 34,049 | ||
Intangible Assets, Explanation of Significant Additions | $19.8 | |||
Finite-Lived Intangible Asset, Useful Life | 7 years | 8 years 7 months 6 days | 8 years 7 months 6 days | |
Patents [Member] | ||||
Acquired Intangible Assets [Line Items] | ||||
Weighted average amortization period | 16 years | 16 years 6 months | ||
Gross carrying amount | $ 8,662 | $ 7,764 | ||
Accumulated amortization | (1,673) | (1,303) | ||
Intangible Assets, Net (Excluding Goodwill), Total | $ 6,989 | $ 6,461 | ||
Finite-Lived Intangible Asset, Useful Life | 16 years | 16 years 6 months | ||
In Process Research and Development [Member] | ||||
Acquired Intangible Assets [Line Items] | ||||
Gross carrying amount | $ 19,813 | |||
Intangible Assets, Net (Excluding Goodwill), Total | $ 19,813 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS (Goodwill Rollforward) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
GOODWILL AND INTANGIBLE ASSETS [Abstract] | |||
Goodwill | $ 128,775 | $ 123,734 | $ 123,890 |
Goodwill, Period Increase (Decrease) | 4,817 | ||
Goodwill, Foreign Currency Translation Gain (Loss) | $ 224 | $ (156) |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS (Schedule of Finite-Lived Intangible Assets, Future Amortization Expense) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
GOODWILL AND INTANGIBLE ASSETS [Abstract] | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 13,859,000 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 13,623,000 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 13,070,000 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 11,012,000 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 8,046,000 |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 19,202,000 |
Finite-Lived Intangible Assets, Net, Total | $ 78,812,000 |
MARKETABLE SECURITIES (Details)
MARKETABLE SECURITIES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Current | $ 115,763 | $ 199,937 |
Minimum [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Probabilityof Payment | 75.00% | |
Maximum [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Probabilityof Payment | 100.00% | |
Municipal Bonds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale | $ 53,118 | 17,570 |
Corporate Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale | 258,264 | 246,215 |
Commercial Paper [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale | 34,752 | 50,194 |
Asset-backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale | 166,711 | 140,181 |
Government, federal agency, and other sovereign obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale | $ 12,432 | $ 8,894 |
Short-term Investments [Member] | Municipal Bonds [Member] | Maximum [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Contractual Maturity | 1 year | 1 year |
Short-term Investments [Member] | Corporate Debt Securities [Member] | Maximum [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Contractual Maturity | 1 year | 1 year |
Short-term Investments [Member] | Commercial Paper [Member] | Maximum [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Contractual Maturity | 1 year | 1 year |
Short-term Investments [Member] | Asset-backed Securities [Member] | Maximum [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Contractual Maturity | 1 year | 1 year |
Short-term Investments [Member] | Government, federal agency, and other sovereign obligations [Member] | Maximum [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Contractual Maturity | 1 year | 1 year |
Other Long-term Investments [Member] | Municipal Bonds [Member] | Minimum [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Contractual Maturity | 1 year | 1 year |
Other Long-term Investments [Member] | Municipal Bonds [Member] | Maximum [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Contractual Maturity | 3 years | 2 years |
Other Long-term Investments [Member] | Corporate Debt Securities [Member] | Minimum [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Contractual Maturity | 1 year | 1 year |
Other Long-term Investments [Member] | Corporate Debt Securities [Member] | Maximum [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Contractual Maturity | 3 years | 3 years |
Other Long-term Investments [Member] | Asset-backed Securities [Member] | Minimum [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Contractual Maturity | 1 year | 1 year |
Other Long-term Investments [Member] | Asset-backed Securities [Member] | Maximum [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Contractual Maturity | 3 years | 3 years |
Other Long-term Investments [Member] | Government, federal agency, and other sovereign obligations [Member] | Minimum [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Contractual Maturity | 1 year | 1 year |
Other Long-term Investments [Member] | Government, federal agency, and other sovereign obligations [Member] | Maximum [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Contractual Maturity | 2 years | 3 years |
Fair Value, Measurements, Recurring [Member] | Short-term Investments [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost, Total | $ 115,486 | $ 200,210 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 282 | 3 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (5) | (276) |
Debt Securities, Available-for-sale | 115,763 | 199,937 |
Fair Value, Measurements, Recurring [Member] | Short-term Investments [Member] | Municipal Bonds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost, Total | 7,840 | 14,923 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 23 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (1) | (25) |
Debt Securities, Available-for-sale | 7,862 | 14,898 |
Fair Value, Measurements, Recurring [Member] | Short-term Investments [Member] | Corporate Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost, Total | 69,091 | 118,823 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 247 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (3) | (185) |
Debt Securities, Available-for-sale | 69,335 | 118,638 |
Fair Value, Measurements, Recurring [Member] | Short-term Investments [Member] | Commercial Paper [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost, Total | 34,747 | 50,202 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 6 | 3 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (1) | (11) |
Debt Securities, Available-for-sale | 34,752 | 50,194 |
Fair Value, Measurements, Recurring [Member] | Short-term Investments [Member] | Asset-backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost, Total | 3,808 | 11,765 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 6 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (54) | |
Debt Securities, Available-for-sale | 3,814 | 11,711 |
Fair Value, Measurements, Recurring [Member] | Short-term Investments [Member] | Government, federal agency, and other sovereign obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost, Total | 4,497 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (1) | |
Debt Securities, Available-for-sale | 4,496 | |
Fair Value, Measurements, Recurring [Member] | Other Long-term Investments [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost, Total | 405,079 | 263,060 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 4,481 | 458 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (46) | (401) |
Debt Securities, Available-for-sale | 409,514 | 263,117 |
Fair Value, Measurements, Recurring [Member] | Other Long-term Investments [Member] | Municipal Bonds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost, Total | 45,010 | 2,676 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 254 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (8) | (4) |
Debt Securities, Available-for-sale | 45,256 | 2,672 |
Fair Value, Measurements, Recurring [Member] | Other Long-term Investments [Member] | Corporate Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost, Total | 186,356 | 127,676 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 2,578 | 196 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (5) | (295) |
Debt Securities, Available-for-sale | 188,929 | 127,577 |
Fair Value, Measurements, Recurring [Member] | Other Long-term Investments [Member] | Asset-backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost, Total | 161,347 | 128,297 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 1,583 | 262 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (33) | (89) |
Debt Securities, Available-for-sale | 162,897 | 128,470 |
Fair Value, Measurements, Recurring [Member] | Other Long-term Investments [Member] | Government, federal agency, and other sovereign obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost, Total | 12,366 | 4,411 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 66 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (13) | |
Debt Securities, Available-for-sale | $ 12,432 | $ 4,398 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 18,218 | $ 48,040 |
Contingent consideration, beginning balance | 10,118 | 15,919 |
Purchase price contingent consideration | 4,299 | |
Contingent consideration currency translation loss/(gain) | (58) | (48) |
Contingent Payments | (6,597) | (6,738) |
Changes in fair value of contingent consideration | 1,787 | 985 |
Contingent consideration, ending balance | $ 9,549 | 10,118 |
Maximum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount Rate | 8.5 | |
Probabilityof Payment | 100.00% | |
Projected Year Of Payment | 2029 | |
Minimum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Probabilityof Payment | 75.00% | |
Projected Year Of Payment | 2020 | |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 4,988 | 259 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 13,230 | 47,781 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration, beginning balance | 10,118 | |
Contingent consideration, ending balance | 9,549 | 10,118 |
Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 53,118 | 17,570 |
Municipal Bonds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 53,118 | 17,570 |
Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 258,264 | 246,215 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 258,264 | 246,215 |
Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 34,752 | 50,194 |
Commercial Paper [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 34,752 | 50,194 |
Asset-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 166,711 | 140,181 |
Asset-backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 166,711 | 140,181 |
Government, federal agency, and other sovereign obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 12,432 | 8,894 |
Government, federal agency, and other sovereign obligations [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | $ 12,432 | $ 8,894 |
Measurement Input, Discount Rate [Member] | Minimum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount Rate | 4.7 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
INVENTORIES [Abstract] | ||
Raw Materials | $ 33,025 | $ 20,740 |
Work in process | 15,940 | 13,179 |
Finished goods | 147,349 | 97,335 |
Total inventories | $ 196,314 | $ 131,254 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 443,573 | $ 388,682 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (243,732) | (216,809) | |
Property, Plant and Equipment, Net, Total | 199,841 | 171,873 | |
Depreciation | 38,924 | 32,042 | $ 34,158 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 8,290 | 8,298 | |
Building and Building Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 33,242 | 27,267 | |
Property, Plant and Equipment, Useful Life | 31 years 6 months | ||
Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 97,829 | 84,150 | |
Instruments [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 253,929 | 219,451 | |
Property, Plant and Equipment, Useful Life | 5 years | ||
Modules and cases [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 38,293 | 34,183 | |
Property, Plant and Equipment, Useful Life | 5 years | ||
Other Property and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 11,990 | $ 15,333 | |
Maximum [Member] | Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 15 years | ||
Maximum [Member] | Other Property and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Minimum [Member] | Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Minimum [Member] | Other Property and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years |
ACCRUED EXPENSES (Details)
ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ACCRUED EXPENSES [Abstract] | ||
Compensation and other employee-related costs | $ 37,178 | $ 32,465 |
Legal and other settlements and expenses | 1,538 | 6,684 |
Accrued non-income taxes | 4,996 | 3,593 |
Royalties | 2,370 | 2,500 |
Other | 17,201 | 14,636 |
Total accrued expenses | $ 63,283 | $ 59,878 |
DEBT (Details)
DEBT (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Jun. 30, 2018 | May 31, 2011 | |
Debt Instrument [Line Items] | |||
Credit facility, current borrowing capacity | $ 125 | $ 50 | $ 50 |
Credit facility, maximum borrowing capacity | $ 150 | ||
Credit facility, basis spread on variable rate | 0.75% | ||
Credit facility, termination period without penalty | 10 days | ||
Line Of Credit Variable Rate Per Annum [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility, period of variable rate | 1 month | ||
Credit facility, basis spread on variable rate | 0.0075% | ||
Line Of Credit Fixed Rate [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility, period of variable rate | 1 month | ||
Line Of Credit Fixed Rate [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility, period of variable rate | 3 months | ||
Letter of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | $ 25 |
EQUITY (Narrative) (Details)
EQUITY (Narrative) (Details) - shares | Dec. 31, 2019 | Dec. 31, 2018 |
Class of Stock [Line Items] | ||
Common stock, shares authorized | 785,000,000 | |
Common Class A | ||
Class of Stock [Line Items] | ||
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common Class B | ||
Class of Stock [Line Items] | ||
Common stock, shares authorized | 275,000,000 | 275,000,000 |
Common Class C [Member] | ||
Class of Stock [Line Items] | ||
Common stock, shares authorized | 10,000,000 |
EQUITY (Schedule of Issued and
EQUITY (Schedule of Issued and Outstanding Shares) (Details) - shares | Dec. 31, 2019 | Dec. 31, 2018 |
Class of Stock [Line Items] | ||
Common stock, shares issued | 99,825,080 | 98,573,354 |
Common stock, shares outstanding | 99,825,080 | 98,573,354 |
Common Class A | ||
Class of Stock [Line Items] | ||
Common stock, shares issued | 77,394,983 | 76,143,257 |
Common stock, shares outstanding | 77,394,983 | 76,143,257 |
Common Class B | ||
Class of Stock [Line Items] | ||
Common stock, shares issued | 22,430,097 | 22,430,097 |
Common stock, shares outstanding | 22,430,097 | 22,430,097 |
Common Class C [Member] | ||
Class of Stock [Line Items] | ||
Common stock, shares issued |
EQUITY (Stockholders' Equity Ro
EQUITY (Stockholders' Equity Rollforward) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Total equity, beginning of period | $ 1,185,516 | $ 967,778 | $ 1,185,516 | $ 967,778 | $ 832,078 | ||||||
Net income | $ 45,530 | $ 38,307 | $ 38,163 | $ 33,210 | $ 36,751 | $ 35,208 | $ 44,977 | $ 39,538 | 155,210 | 156,474 | 107,348 |
Stock-based compensation cost | 26,416 | 22,219 | 14,882 | ||||||||
Exercise of stock options | 31,036 | 39,311 | 11,735 | ||||||||
Other comprehensive income | 4,274 | (265) | 1,735 | ||||||||
Total equity, end of period | $ 1,402,452 | $ 1,185,516 | $ 1,402,452 | $ 1,185,516 | $ 967,778 |
EQUITY (Accumulated Other Compr
EQUITY (Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated other comprehensive loss, net of tax | $ (7,172) | $ (6,907) | |
Other comprehensive income before reclassifications | 5,439 | (250) | |
Amounts reclassified from accumulated other comprehensive income, net of tax | (1,165) | (15) | |
Other comprehensive income/(loss), net of tax | 4,274 | (265) | $ 1,735 |
Accumulated other comprehensive loss, net of tax | (2,898) | (7,172) | (6,907) |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | |||
Accumulated other comprehensive loss, net of tax | (168) | (313) | |
Other comprehensive income before reclassifications | 4,932 | 160 | |
Amounts reclassified from accumulated other comprehensive income, net of tax | (1,165) | (15) | |
Other comprehensive income/(loss), net of tax | 3,767 | 145 | |
Accumulated other comprehensive loss, net of tax | 3,599 | (168) | (313) |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||
Accumulated other comprehensive loss, net of tax | (7,004) | (6,594) | |
Other comprehensive income before reclassifications | 507 | (410) | |
Other comprehensive income/(loss), net of tax | 507 | (410) | |
Accumulated other comprehensive loss, net of tax | $ (6,497) | $ (7,004) | $ (6,594) |
STOCK-BASED COMPENSATION (Narra
STOCK-BASED COMPENSATION (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($)ShareBasedCompensationPlanshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of stock plans | ShareBasedCompensationPlan | 3 |
Base number of shares that may be issuable under stock plan | 3,076,923 |
Weighted average period of recognition, unvested stock options | 3 years |
Share Based Compensation Number Of Stock Plans | ShareBasedCompensationPlan | 3 |
Share Based Compensation Arrangement By Share Based Payment Award Base Number Of Shares Issuable | 3,076,923 |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares available for grant | 10,769,230 |
Annual percentage limit for incremental shares that may be issued | 3.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 10,769,230 |
Share Based Compensation Arrangement By Share Based Payment Award Annual Percentage Increase In Shares Available For Issuance | 3.00% |
Common Class A | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares available for grant | 795,058 |
Shares reserved under the 2012 Equity Incentive Plan | 14,905,194 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 795,058 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 14,905,194 |
Employee Stock Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Maximum contractual term | 10 years |
Award vesting period | 4 years |
Unrecognized compensation expense, unvested stock options | $ | $ 60.6 |
Share Based Compensation By Share Based Payment Maximum Contractual Term | 10 years |
STOCK-BASED COMPENSATION (Grant
STOCK-BASED COMPENSATION (Grant Date Fair Values of Options Awarded to Employees) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
STOCK-BASED COMPENSATION [Abstract] | |||
Weighted average grant date fair value per share | $ 13.76 | $ 14.90 | $ 9.12 |
STOCK-BASED COMPENSATION (Stock
STOCK-BASED COMPENSATION (Stock Option Activity) (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Number of shares outstanding beginning balance | shares | 9,668 |
Number of shares granted | shares | 2,920 |
Number of shares exercised | shares | (1,251) |
Number of shares forfeited | shares | (687) |
Number of shares outstanding ending balance | shares | 10,650 |
Number of shares exercisable | shares | 5,063 |
Number of shares expected to vest | shares | 5,587 |
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 | $ 31.45 |
Weighted average exercise price per share granted | $ / shares | 46.55 |
Weighted average exercise price per share exercised | $ / shares | 24.86 |
Weighted average exercise price per share forfeited | $ / shares | 40.08 |
Weighted average exercise price per share outstanding ending balance | $ / shares | 35.80 |
Weighted average exercise price per share exercisable | $ / shares | 27.44 |
Weighted average exercise price per share expected to vest | $ / shares | $ 43.37 |
Weighted average remaining contractual life outstanding | 7 years 3 months 18 days |
Weighted average remaining contractual life exercisable | 6 years |
Weighted average remaining contractual life expected to vest | 8 years 6 months |
Aggregate intrinsic value outstanding | $ | $ 245,781 |
Aggregate intrinsic value exercisable | $ | 159,155 |
Aggregate intrinsic value expected to vest | $ | $ 86,625 |
STOCK-BASED COMPENSATION (Compe
STOCK-BASED COMPENSATION (Compensation Expense Related to Stock Options and Their Intrinsic Values) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
STOCK-BASED COMPENSATION [Abstract] | |||
Intrinsic value of stock options exercised | $ 31,315 | $ 59,345 | $ 12,217 |
Stock-based compensation expense | 26,085 | 21,899 | 14,686 |
Net stock-based compensation capitalized into inventory | 331 | 320 | 196 |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost, Total | $ 26,416 | $ 22,219 | $ 14,882 |
STOCK-BASED COMPENSATION (Assum
STOCK-BASED COMPENSATION (Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk Free Interest Rate, Minimum | 1.35% | ||
Risk Free Interest Rate, Maximum | 2.57% | ||
Expected Term | 5 years | ||
Expected Volatility Rate | 29.00% | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk Free Interest Rate, Maximum | 3.09% | 2.20% | |
Expected Volatility Rate, Maximum | 28.00% | 29.00% | |
Expected Term | 7 years 6 months | 6 years 4 months 24 days | |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk Free Interest Rate, Minimum | 2.30% | 1.74% | |
Expected Volatility Rate, Minimum | 23.00% | 26.00% | |
Expected Term | 5 years 9 months 18 days | 5 years 9 months 18 days |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Components of Deferred Tax Liabilities [Abstract] | |||
Deferred Tax Liabilities, Depreciation and Amortization | $ (50,129) | $ (42,439) | |
Deferred Tax Liabilities, Gross | (50,129) | (42,439) | |
Deferred Tax Assets, Net, Total | 5,464 | ||
Components of Deferred Tax Assets [Abstract] | |||
Deferred Tax Assets, Inventory | 26,381 | 25,398 | |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals | 8,620 | 10,377 | |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Share-based Compensation Cost | 14,020 | 10,959 | |
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | 3,857 | 3,852 | |
Deferred Tax Assets, Gross, Total | 52,878 | 50,586 | |
Deferred Tax Assets, Valuation Allowance | 2,846 | 2,683 | |
Deferred Tax Assets, Net of Valuation Allowance, Total | 50,032 | $ 47,903 | |
Deferred Tax Liabilities, Net | $ (97) | ||
Effective income tax rate | 18.30% | 17.00% | 36.80% |
Income (Loss) from Continuing Operations before Income Taxes, Domestic | $ 179,194 | $ 180,701 | $ 155,051 |
Income (Loss) from Continuing Operations before Income Taxes, Foreign | 10,752 | 7,904 | 14,877 |
Income before income taxes | 189,946 | 188,605 | 169,928 |
Current Federal Tax Expense (Benefit) | 23,093 | 23,774 | 46,728 |
Current State and Local Tax Expense (Benefit) | 4,532 | 4,662 | 5,009 |
Current Foreign Tax Expense (Benefit) | 2,819 | 2,724 | 2,638 |
Deferred Federal Income Tax Expense (Benefit) | 6,542 | 4,155 | 10,553 |
Deferred State and Local Income Tax Expense (Benefit) | (68) | (587) | (1,123) |
Deferred Foreign Income Tax Expense (Benefit) | (2,182) | (2,597) | (1,225) |
Deferred Income Tax Expense (Benefit), Total | 4,292 | 971 | 8,205 |
Current Income Tax Expense (Benefit), Total | 30,444 | 31,160 | 54,375 |
Income Tax Expense (Benefit), Total | $ 34,736 | $ 32,131 | $ 62,580 |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 35.00% |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent | 2.20% | 2.30% | 1.90% |
Effective Income Tax Rate Reconciliation, Tax Credit, Foreign, Percent | 0.40% | 1.70% | 1.00% |
Effective Income Tax Rate Reconciliation, Deduction, Qualified Production Activity, Percent | (0.60%) | (0.70%) | (2.30%) |
Effective Income Tax Rate Reconciliation, Tax Credit, Percent | (2.60%) | (1.60%) | (3.80%) |
Effective Income Tax Rate Reconciliation,Other Reconciling Items, Percent | (2.50%) | (5.20%) | (1.40%) |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Percent | 0.30% | (0.60%) | 0.10% |
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent | 0.10% | 0.10% | (0.20%) |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 6.50% | ||
Effective Income Tax Rate Reconciliation, Percent, Total | 18.30% | 17.00% | 36.80% |
Unrecognized Tax Benefits, Beginning Balance | $ 4,777 | $ 2,601 | $ 1,862 |
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 2,176 | 739 | |
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | (2,378) | ||
Unrecognized Tax Benefits, Ending Balance | 2,399 | 4,777 | 2,601 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 2,878 | 4,084 | $ 2,076 |
Operating Loss Carryforwards | 21,400 | 24,000 | |
Deferred Tax Assets, Valuation Allowance | (2,846) | $ (2,683) | |
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | $ 2,378 |
LEASES (Narrative) (Details)
LEASES (Narrative) (Details) | Dec. 31, 2019 |
LEASES [Abstract] | |
Lessee, Operating Lease, Term of Contract | 12 months |
LEASES (Schedule of Supplementa
LEASES (Schedule of Supplemental Balance Sheet Information Related to Leases) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
LEASES [Abstract] | |
Right of use assets | $ 2,481 |
Lease liability - short term | 1,339 |
Lease liability - long term | 1,142 |
Total operating lease liability | 2,481 |
Lease expense as of June 30, 2019 | $ 3,174 |
Weighted-average remaining lease term - operating leases (in years) | 2 years 7 months 6 days |
Weighted-average discount rate | 0.034% |
LEASES (Future Minimum Lease Pa
LEASES (Future Minimum Lease Payments) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
LEASES [Abstract] | |
2020 | $ 1,451 |
2021 | 553 |
2022 | 315 |
2023 | 226 |
2024 | 110 |
Thereafter | 5 |
Total undiscounted lease payments | 2,660 |
Less : imputed interest | 179 |
Total operating lease liability | $ 2,481 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Prepaid royalty | $ 9 |
Accrual Reversal | 2.5 |
Bianco Litigation [Member] | |
Payments for Legal Settlements | $ 11.5 |
RETIREMENT BENEFIT PLANS (Detai
RETIREMENT BENEFIT PLANS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |||
Nondiscretionary employee contribution match rate | 100.00% | ||
Maximum annual contribution match, per employee | $ 6 | ||
Maximum annual contribution match, percent per employee | 3.00% | ||
401(k) and other retirement plan contributions | $ 5,363 | $ 4,682 | $ 3,597 |
SEGMENT AND GEOGRAPHIC INFORM_3
SEGMENT AND GEOGRAPHIC INFORMATION (Geographic Location) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule Of Sales By Geographic Area [Line Items] | ||||||||||||
Revenues | $ 211,667 | $ 196,215 | $ 194,539 | $ 182,947 | $ 195,938 | $ 169,236 | $ 173,384 | $ 174,411 | $ 176,034 | $ 785,368 | $ 712,969 | $ 635,977 |
United States [Member] | ||||||||||||
Schedule Of Sales By Geographic Area [Line Items] | ||||||||||||
Revenues | 647,683 | 593,878 | 529,882 | |||||||||
International [Member] | ||||||||||||
Schedule Of Sales By Geographic Area [Line Items] | ||||||||||||
Revenues | $ 137,685 | $ 119,091 | $ 106,095 |
QUARTERLY FINANCIAL DATA (Detai
QUARTERLY FINANCIAL DATA (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
QUARTERLY FINANCIAL DATA [Abstract] | ||||||||||||
Revenues | $ 211,667 | $ 196,215 | $ 194,539 | $ 182,947 | $ 195,938 | $ 169,236 | $ 173,384 | $ 174,411 | $ 176,034 | $ 785,368 | $ 712,969 | $ 635,977 |
Gross Profit | 162,907 | 150,828 | 150,549 | 141,109 | 149,984 | 131,387 | 135,747 | 136,441 | 605,393 | 553,559 | 485,524 | |
Net Income (Loss) Attributable to Parent | $ 45,530 | $ 38,307 | $ 38,163 | $ 33,210 | $ 36,751 | $ 35,208 | $ 44,977 | $ 39,538 | $ 155,210 | $ 156,474 | $ 107,348 | |
Earnings Per Share, Basic | $ 0.46 | $ 0.39 | $ 0.39 | $ 0.34 | $ 0.37 | $ 0.36 | $ 0.46 | $ 0.41 | $ 1.57 | $ 1.60 | $ 1.12 | |
Earnings Per Share, Diluted | $ 0.44 | $ 0.38 | $ 0.38 | $ 0.33 | $ 0.36 | $ 0.35 | $ 0.44 | $ 0.39 | $ 1.52 | $ 1.54 | $ 1.10 |
SCHEDULE II VALUATION ACCOUNT_2
SCHEDULE II VALUATION ACCOUNTS AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SEC Schedule, 12-09, Allowance, Credit Loss [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount, Beginning Balance | $ 4,226 | $ 3,963 | $ 2,771 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Cost and Expense | 3,026 | 960 | 1,718 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction | (1,653) | (697) | (526) |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount, Ending Balance | 5,599 | 4,226 | 3,963 |
SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount, Beginning Balance | 2,683 | 1,821 | 83 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Cost and Expense | 163 | 924 | 511 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction | (62) | ||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount, Ending Balance | $ 2,846 | $ 2,683 | 1,821 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Other Account | $ 1,227 |