Djo Finance 10-Q 11 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Apr. 01, 2016	May. 10, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Apr. 1, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Entity Registrant Name	DJO FINANCE LLC
Entity Central Index Key	1,395,317
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		0
Membership Interests Percentage		100.00%
Membership Interests Description	As of May 10, 2016, 100% of the issuer’s membership interests were owned by DJO Holdings LLC.

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Apr. 01, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 37,244	$ 48,943
Accounts receivable, net	172,392	172,360
Inventories, net	176,533	174,573
Prepaid expenses and other current assets	25,258	21,179
Current assets of discontinued operations		2,878
Total current assets	411,427	419,933
Property and equipment, net	125,891	117,273
Goodwill	1,020,858	1,018,104
Intangible assets, net	729,938	749,045
Other assets	5,471	5,174
Non current assets of discontinued operations		29
Total assets	2,293,585	2,309,558
Current liabilities:
Accounts payable	76,296	58,492
Accrued interest	39,747	16,998
Current portion of debt obligations	10,550	10,550
Other current liabilities	87,775	102,173
Current liabilities of discontinued operations	2,934	13,371
Total current liabilities	217,302	201,584
Long-term debt obligations	2,342,179	2,344,562
Deferred tax liabilities, net	217,903	213,856
Other long-term liabilities	19,442	15,092
Total liabilities	$ 2,796,826	$ 2,775,094
Commitments and contingencies
DJO Finance LLC membership deficit:
Member capital	$ 841,715	$ 841,510
Accumulated deficit	(1,331,659)	(1,293,339)
Accumulated other comprehensive loss	(16,232)	(16,341)
Total membership deficit	(506,176)	(468,170)
Noncontrolling interests	2,935	2,634
Total deficit	(503,241)	(465,536)
Total liabilities and deficit	$ 2,293,585	$ 2,309,558

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2016	Mar. 28, 2015
Income Statement [Abstract]
Net sales	$ 278,906	$ 247,511
Operating expenses:
Cost of sales (exclusive of amortization of intangible assets of $7,407 and $7,535 for the three months ended April 1, 2016 and March 28, 2015, respectively)	118,083	101,884
Selling, general and administrative	121,929	107,185
Research and development	9,854	8,864
Amortization of intangible assets	19,578	19,828
Costs and Expenses, Total	269,444	237,761
Operating income	9,462	9,750
Other (expense) income:
Interest expense, net	(42,270)	(42,866)
Other income (expense), net	284	(4,156)
Nonoperating Income (Expense), Total	(41,986)	(47,022)
Loss before income taxes	(32,524)	(37,272)
Income tax provision	(5,413)	(1,945)
Net loss from continuing operations	(37,937)	(39,217)
Net (loss) income from discontinued operations	(190)	3,992
Net loss	(38,127)	(35,225)
Net income attributable to noncontrolling interests	(193)	(301)
Net loss attributable to DJO Finance LLC	$ (38,320)	$ (35,526)

Condensed Consolidated Stateme4

Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2016	Mar. 28, 2015
Income Statement [Abstract]
Cost of sales, amortization of intangible assets	$ 7,407	$ 7,535

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2016	Mar. 28, 2015
Statement Of Income And Comprehensive Income [Abstract]
Net loss	$ (38,127)	$ (35,225)
Other comprehensive income (loss), net of taxes:
Foreign currency translation adjustments, net of tax (provision) benefit of $(277) and $492 for the three months ended April 1, 2016 and March 28, 2015, respectively	5,608	(9,442)
Unrealized loss on cash flow hedges, net of tax provision of zero for the three months ended April 1, 2016	(5,391)
Other comprehensive income (loss)	217	(9,442)
Comprehensive loss	(37,910)	(44,667)
Comprehensive income attributable to noncontrolling interests	(301)	(17)
Comprehensive loss attributable to DJO Finance LLC	$ (38,211)	$ (44,684)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($)	3 Months Ended
	Apr. 01, 2016	Mar. 28, 2015
Statement Of Income And Comprehensive Income [Abstract]
Foreign currency translation adjustment, tax benefit (provision)	$ (277,000)	$ 492,000
Unrealized gain on cash flow hedges, net of tax provisions	$ 0

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Deficit $ in Thousands	3 Months Ended
	Apr. 01, 2016USD ($)
Balance at December 31, 2015	$ (465,536)
Net (loss) income	(38,127)
Other comprehensive income, net of taxes	217
Stock-based compensation, net of taxes	205
Balance at April 1, 2016	(503,241)
Member capital
Balance at December 31, 2015	841,510
Stock-based compensation, net of taxes	205
Balance at April 1, 2016	841,715
Accumulated deficit
Balance at December 31, 2015	(1,293,339)
Net (loss) income	(38,320)
Balance at April 1, 2016	(1,331,659)
Accumulated other comprehensive loss
Balance at December 31, 2015	(16,341)
Other comprehensive income, net of taxes	109
Balance at April 1, 2016	(16,232)
Total membership deficit
Balance at December 31, 2015	(468,170)
Net (loss) income	(38,320)
Other comprehensive income, net of taxes	109
Stock-based compensation, net of taxes	205
Balance at April 1, 2016	(506,176)
Noncontrolling interests
Balance at December 31, 2015	2,634
Net (loss) income	193
Other comprehensive income, net of taxes	108
Balance at April 1, 2016	$ 2,935

Condensed Consolidated Stateme8

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2016	Mar. 28, 2015
Cash flows from operating activities:
Net loss	$ (38,127)	$ (35,225)
Net loss (income) from discontinued operations	190	(3,992)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation	10,324	8,214
Amortization of intangible assets	19,578	19,828
Amortization of debt issuance costs and non-cash interest expense	1,892	2,288
Stock-based compensation expense	205	613
Loss on disposal of assets, net	91	74
Deferred income tax expense	2,652	7,291
Changes in operating assets and liabilities, net of acquired assets and liabilities:
Accounts receivable	1,406	3,024
Inventories	1,577	(8,098)
Prepaid expenses and other assets	(3,296)	2,827
Accrued interest	22,748	25,950
Accounts payable and other current liabilities	(7,363)	(13,643)
Net cash provided by continuing operating activities	11,877	9,151
Net cash (used in) provided by discontinued operations	(7,720)	5,991
Net cash provided by operating activities	4,157	15,142
Cash flows from investing activities:
Purchases of property and equipment	(12,021)	(6,217)
Net cash used in investing activities from continuing operations	(12,021)	(6,217)
Net cash used in investing activities	(12,021)	(6,217)
Cash flows from financing activities:
Proceeds from issuance of debt	6,000	17,000
Repayments of debt obligations	(10,275)	(20,019)
Net cash used in financing activities	(4,275)	(3,019)
Effect of exchange rate changes on cash and cash equivalents	440	(1,362)
Net (decrease) increase in cash and cash equivalents	(11,699)	4,544
Cash and cash equivalents at the beginning of the period	48,943	31,144
Cash and cash equivalents at the end of the period	37,244	35,688
Supplemental disclosures of cash flow information:
Cash paid for interest	17,674	14,574
Cash paid for taxes, net	1,351	2,302
Non-cash investing activities:
Purchases of surgical instruments included in accounts payable	$ 7,027	$ 2,514

ORGANIZATION AND BASIS OF PRESE

ORGANIZATION AND BASIS OF PRESENTATION	3 Months Ended
	Apr. 01, 2016
Accounting Policies [Abstract]
ORGANIZATION AND BASIS OF PRESENTATION	1. ORGANIZATION AND BASIS OF PRESENTATION Organization and Business We are a global developer, manufacturer and distributor of medical devices that provide solutions for musculoskeletal health, vascular health and pain management. Our products address the continuum of patient care from injury prevention to rehabilitation after surgery, injury or from degenerative disease, enabling people to regain or maintain their natural motion. Our products are used by orthopedic specialists, spine surgeons, primary care physicians, pain management specialists, physical therapists, podiatrists, chiropractors, athletic trainers and other healthcare professionals. Our product lines include rigid and soft orthopedic bracing, hot and cold therapy, bone growth stimulators, vascular therapy systems and compression garments, therapeutic shoes and inserts, electrical stimulators used for pain management and physical therapy products. Our surgical implant business offers a comprehensive suite of reconstructive joint products for the hip, knee and shoulder. DJO Finance LLC (DJOFL) is a wholly owned indirect subsidiary of DJO Global, Inc. (DJO). Substantially all business activities of DJO are conducted by DJOFL and its wholly owned subsidiaries. Except as otherwise indicated, references to “us,” “we,” “DJOFL,” “our,” or “the Company,” refers to DJOFL and its consolidated subsidiaries. Segment Reporting We market and distribute our products through four operating segments: Bracing and Vascular; Recovery Sciences; Surgical Implant; and International. Our Bracing and Vascular, Recovery Sciences, and Surgical Implant segments generate their revenues within the United States. Our Bracing and Vascular segment offers rigid knee braces, orthopedic soft goods, cold therapy products, vascular systems, compression therapy products and therapeutic footwear for the diabetes care market. Our Recovery Sciences segment offers home electrotherapy, iontophoresis, home traction products, bone growth stimulation products and clinical physical therapy equipment. Our Surgical Implant segment offers a comprehensive suite of reconstructive joint products for the knee, hip and shoulder. Our International segment offers all of our products to customers outside the United States. See Note 14 for additional information about our reportable segments. During the fourth quarter of 2015, we ceased manufacturing, selling and distributing products of our Empi business and the related insurance billing operations domestically. The Empi business primarily manufactured and sold transcutaneous electrical nerve stimulation (TENS) devices for pain relief, other electrotherapy and orthopedic products and the related supplies. Empi was facing a challenging regulatory and compliance environment, decreasing reimbursement rates and remained below the level needed to reach adequate profitability within an economically justified period of time. Empi was part of our Recovery Sciences operating segment. For financial statement purposes, the results of the Empi business are reported within discontinued operations. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Estimates and assumptions are used in accounting for, among other things, contractual allowances, rebates, product returns, warranty obligations, allowances for doubtful accounts, valuation of inventories, self-insurance reserves, income taxes, loss contingencies, fair values of derivative instruments, fair values of long-lived assets and any related impairments, capitalization of costs associated with internally developed software and stock-based compensation. Actual results could differ from those estimates. Basis of Presentation We consolidate the results of operations of our 50% owned subsidiary, Medireha GmbH (Medireha), and reflect the 50% share of results not owned by us as non-controlling interests in our Consolidated Statements of Operations. We maintain control of Medireha through certain rights that enable us to prohibit certain business activities that are not consistent with our plans for the business and provide us with exclusive distribution rights for products manufactured by Medireha. Interim Reporting The accompanying Unaudited Condensed Consolidated Financial Statements include our accounts and all voting interest entities where we exercise a controlling financial interest through the ownership of a direct or indirect majority voting interest. All significant intercompany accounts and transactions have been eliminated in consolidation. Our Unaudited Condensed Consolidated Financial Statements have been prepared in accordance with GAAP and with the instructions to Form 10–Q and Article 10 of Regulation S–X for interim financial information. Accordingly, these financial statements do not include all of the information required by GAAP or Securities and Exchange Commission (SEC) rules and regulations for complete annual financial statements. In the opinion of management, these financial statements reflect all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the results of operations for the interim periods presented. The results of operations for any interim period are not necessarily indicative of results for the full year. These Unaudited Condensed Consolidated Financial Statements should be read in conjunction with our consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2015. The Company operates on a manufacturing calendar. Each quarter consists of thirteen weeks, two four week and one five week period. Our first quarters may have more or fewer shipping days from year to year based on the days of week holidays fall. The first quarter of 2016 had more shipping days than in the first quarter 2015. Recent Accounting Standards In May 2014, the FASB issued an accounting standards update related to revenue from contracts with customers. The new standard provides a five-step approach to be applied to all contracts with customers. The accounting standards update also requires expanded disclosures about revenue recognition. On July 9, 2015, the FASB decided to defer the effective date of the standard. The guidance is now effective for fiscal years beginning after December 15, 2017 and interim periods within that reporting period. Early adoption is permitted as early as the original effective date of December 15, 2016. The Company is currently evaluating the new guidance to determine the impact it may have on its consolidated financial statements. In April 2015, the FASB issued an accounting standards update related to the presentation of debt issuance costs. The standard requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts. The guidance is effective for annual and interim periods beginning after December 15, 2015. Early application is permitted. The Company has early adopted this update and the impact is reflected in the current and prior periods presented. In April 2015, the FASB issued an accounting standards update related to internal-use software. The standard provides guidance to clarify the customer’s accounting for fees paid in a cloud computing arrangement. The guidance is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. The Company adopted this ASU with prospective application in the first quarter of 2016. Adoption of this new guidance did not have a material effect on the Company’s financial statements. In July 2015, the FASB issued an accounting standards update which requires an entity to measure inventory at the lower of cost and net realizable value. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This guidance does not apply to inventory that is measured using last-in, first-out (LIFO). The guidance is effective for annual and interim periods beginning after December 15, 2016. Early adoption is permitted. Adoption of this new guidance is not expected to have a material effect on the Company’s financial statements. In September 2015, the FASB issued an accounting standards update which eliminates the requirement for an acquirer in a business combination to restate prior period financial statements for measurement period adjustments. The new guidance requires that the cumulative impact of a measurement period adjustment (including the impact on prior periods) be recognized in the reporting period in which the adjustment is identified. The new guidance also sets forth new disclosure requirements related to the adjustments. The guidance is effective for annual and interim periods beginning after December 15, 2015. Early adoption is permitted. Adoption of this new guidance did not have a material effect on the Company’s financial statements. In November 2015, the FASB issued an accounting standards update which requires all deferred income taxes be presented on the balance sheet as noncurrent. The new guidance is intended to simplify financial reporting by eliminating the requirement to classify deferred taxes between current and noncurrent. The guidance is effective for annual and interim periods beginning after December 15, 2016. The Company has early adopted this update and the impact is reflected prospectively in the Company’s financial statements. In January 2016, the FASB issued an accounting standards update which affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. This guidance retains the current accounting for classifying and measuring investments in debt securities and loans but requires equity investments to be measured at fair value with subsequent changes recognized in net income, except for those accounted for under the equity method or requiring consolidation. The guidance also changes the accounting for investments without a readily determinable fair value and that do not qualify for the practical expedient permitted by the guidance to estimate fair value. A policy election can be made for these investments whereby estimated fair value may be measured at cost and adjusted in subsequent periods for any impairment or changes in observable prices of identical or similar investments. The guidance is effective for annual periods beginning after December 15, 2017. Early adoption is permitted. Adoption of this new guidance is not expected to have a material effect on the Company’s financial statements. In February 2016, the FASB issued an accounting standards update which affects the accounting for leases. The guidance requires lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than 12 months. The amendment also will require qualitative and quantitative disclosures designed to give financial statement users information on the amount, timing, and uncertainty of cash flows arising from leases. The guidance is effective for interim and annual reporting periods beginning after December 15, 2018. Early adoption is permitted. We are still assessing the impact of adoption on our consolidated financial statements. In March 2016, the FASB issued an accounting standards update which affects the accounting for interim and annual reporting periods beginning after Adoption of this new guidance is not expected to have a material effect on the Company’s financial statements.

DIVESTITURES

DIVESTITURES	3 Months Ended
	Apr. 01, 2016
Business Combinations [Abstract]
DIVESTITURES	2. DIVESTITURES Discontinued Operations For disposal transactions that occur on or after that January 1, 2015, a component of an entity is reported in discontinued operations after meeting the criteria for held-for-sale classification, is disposed of by sale or is disposed of other than by sale (e.g. abandonment) if the disposition represents a strategic shift that has (or will have) a major effect on the entity's operations and financial results. The Company has evaluated the and concluded . For financial statement purposes, the Empi business financial results are reported within discontinued operations in the Consolidated Financial Statements. Income (loss) from discontinued operations, net of taxes, is comprised of the following (in thousands): Three Months Ended April 1, 2016 March 28, 2015 Net sales $ — $ 32,590 Costs and operating expenses: Cost of sales — 7,358 Selling, general and administrative — 12,587 Research and development — 36 Amortization of intangible assets — 2,282 Other (loss) income (190 ) 50 (Loss) income from discontinued operations before income taxes $ (190 ) $ 10,377 Income tax provision — (6,385 ) Net (loss) income from discontinued operations $ (190 ) $ 3,992 Net liabilities for discontinued operations are as follows (in thousands): April 1, December 31, 2016 2015 Accounts receivable, net $ — $ 2,743 Other current assets — 135 Property and equipment, net — 22 Intangible and other non-current assets — 7 Total assets — 2,907 Accounts payable and other liabilities 2,934 13,371 Net liabilities $ (2,934 ) $ (10,464 )

ACCOUNTS RECEIVABLE RESERVES

ACCOUNTS RECEIVABLE RESERVES	3 Months Ended
	Apr. 01, 2016
Receivables [Abstract]
ACCOUNTS RECEIVABLE RESERVES	3. ACCOUNTS RECEIVABLE RESERVES A summary of activity in our accounts receivable reserves for doubtful accounts is presented below (in thousands): Three Months Ended April 1, 2016 March 28, 2015 Balance, beginning of period $ 32,893 $ 23,585 Provision for doubtful accounts 5,036 5,711 Write-offs, net of recoveries (4,562 ) (1,875 ) Balance, end of period $ 33,367 $ 27,421 Our allowance for sales returns balance was $3.0 million and $3.6 million as of April 1, 2016 and March 28, 2015, respectively.

INVENTORIES

INVENTORIES	3 Months Ended
	Apr. 01, 2016
Inventory Disclosure [Abstract]
INVENTORIES	4 . INVENTORIES Inventories consist of the following (in thousands): April 1, 2016 December 31, 2015 Components and raw materials $ 58,114 $ 57,372 Work in process 10,349 10,330 Finished goods 99,291 99,167 Inventory held on consignment 30,909 29,746 198,663 196,615 Inventory reserves (22,130 ) (22,042 ) $ 176,533 $ 174,573 A summary of the activity in our reserves for estimated slow moving, excess, obsolete and otherwise impaired inventory is presented below (in thousands): Three Months Ended April 1, 2016 March 28, 2015 Balance, beginning of period $ 22,042 $ 22,094 Provision charged to costs of sales 1,446 1,825 Write-offs, net of recoveries (1,358 ) (1,126 ) Balance, end of period $ 22,130 $ 22,793 The write-offs to the reserve were principally related to the disposition of fully reserved inventory.

LONG-LIVED ASSETS

LONG-LIVED ASSETS	3 Months Ended
	Apr. 01, 2016
Goodwill And Intangible Assets Disclosure [Abstract]
LONG-LIVED ASSETS	5. LONG-LIVED ASSETS Goodwill Changes in the carrying amount of goodwill for the three months ended April 1, 2016 are presented in the table below (in thousands): Bracing & Vascular Recovery Sciences Surgical Implant International Total Balance, beginning of period Goodwill $ 483,258 $ 249,601 $ 49,229 $ 333,022 $ 1,115,110 Accumulated impairment losses — (49,600 ) (47,406 ) — (97,006 ) Goodwill, net of accumulated impairment losses at December 31, 2015 483,258 200,001 1,823 333,022 1,018,104 Current Year Activity: Foreign currency translation — — — 2,754 2,754 Balance, end of period Goodwill 483,258 249,601 49,229 335,776 1,117,864 Accumulated impairment losses — (49,600 ) (47,406 ) — (97,006 ) Goodwill, net of accumulated impairment losses at April 1, 2016 $ 483,258 $ 200,001 $ 1,823 $ 335,776 $ 1,020,858 Intangible Assets Identifiable intangible assets consisted of the following (in thousands): April 1, 2016 Gross Amount Accumulated Amortization Intangible Assets, Net Definite-lived intangible assets: Customer relationships $ 476,967 $ (333,105 ) $ 143,862 Patents and technology 446,907 (253,969 ) 192,938 Trademarks and trade names 29,784 (13,453 ) 16,331 Distributor contracts and relationships 4,793 (4,047 ) 746 Non-compete agreements 6,685 (6,010 ) 675 $ 965,136 $ (610,584 ) 354,552 Indefinite-lived intangible assets: Trademarks and trade names 375,386 Net identifiable intangible assets $ 729,938 December 31, 2015 Gross Carrying Amount Accumulated Amortization Intangible Assets, Net Definite-lived intangible assets: Customer relationships $ 475,776 $ (320,991 ) $ 154,785 Patents and technology 446,854 (246,509 ) 200,345 Trademarks and trade names 29,737 (12,695 ) 17,042 Distributor contracts and relationships 4,693 (3,875 ) 818 Non-compete agreements 6,607 (5,714 ) 893 $ 963,667 $ (589,784 ) $ 373,883 Indefinite-lived intangible assets: Trademarks and trade names 375,162 Net identifiable intangible assets $ 749,045 Our definite lived intangible assets are being amortized using the straight line method over their remaining weighted average useful lives of 4.4 years for customer relationships, 7.6 years for patents and technology, 1.6 years for distributor contracts and relationships, 6.5 years for trademarks and trade names, and 1.7 years for non-compete agreements. Based on our amortizable intangible asset balance as of April 1, 2016, we estimate that amortization expense will be as follows for the next five years and thereafter (in thousands): 2016 $ 56,974 2017 66,153 2018 57,930 2019 53,046 2020 37,075 Thereafter 83,374 $ 354,552

OTHER CURRENT LIABILITIES

OTHER CURRENT LIABILITIES	3 Months Ended
	Apr. 01, 2016
Other Liabilities Disclosure [Abstract]
OTHER CURRENT LIABILITIES	6. OTHER CURRENT LIABILITIES Other current liabilities consist of the following (in thousands): April 1, 2016 December 31, 2015 Accrued wages and related expenses $ 25,272 $ 29,031 Accrued commissions 16,026 20,479 Accrued rebates 8,812 13,433 Accrued other taxes 2,981 4,196 Accrued professional expenses 4,604 3,164 Income taxes payable 1,409 1,612 Deferred tax liability 169 163 Other accrued liabilities 28,502 30,095 $ 87,775 $ 102,173

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS	3 Months Ended
	Apr. 01, 2016
Derivative Instruments And Hedging Activities Disclosure [Abstract]
DERIVATIVE INSTRUMENTS	7. DERIVATIVE INSTRUMENTS From time to time, we use derivative financial instruments to manage interest rate risk related to our variable rate credit facilities and risk related to foreign currency exchange rates. Our objective is to reduce the risk to earnings and cash flows associated with changes in interest rates and changes in foreign currency exchange rates. Before acquiring a derivative instrument to hedge a specific risk, we evaluate potential natural hedges. Factors considered in the decision to hedge an underlying market exposure include the materiality of the risk, the volatility of the market, the duration of the hedge, and the availability, effectiveness and cost of derivative instruments. We do not use derivative instruments for speculative or trading purposes. All derivatives, whether designated as hedging relationships or not, are recorded on the balance sheet at fair value. The fair value of our derivatives is determined through the use of models that consider various assumptions, including time value, yield curves and other relevant economic measures which are inputs that are classified as Level 2 in the fair value hierarchy. The classification of gains and losses resulting from changes in the fair values of derivatives is dependent on the intended use of the derivative and its resulting designation. Our interest rate cap agreements were designated as cash flow hedges, and accordingly, effective portions of changes in the fair value of the derivatives were recorded in accumulated other comprehensive income (loss) and subsequently reclassified into our Consolidated Statement of Operations when the hedged forecasted transaction affects income (loss). Ineffective portions of changes in the fair value of cash flow hedges are recognized in income (loss). Our foreign exchange contracts have not been designated as hedges, and accordingly, changes in the fair value of the derivatives are recorded in income (loss). Interest Rate Cap Agreements . We utilize interest rate caps to manage the risk of unfavorable movements in interest rates on a portion of our outstanding floating rate loan balances. Our interest rate cap agreements were designated as cash flow hedges for accounting purposes, and the hedges were considered effective. As such, the effective portion of the gain or loss on the derivative instrument was reported as a component of accumulated other comprehensive income (loss) and reclassified into interest expense in our Consolidated Statement of Operations in the period in which it affected income (loss). Foreign Exchange Rate Contracts . We utilize Mexican Peso (MXN) foreign exchange forward contracts to hedge a portion of our exposure to fluctuations in foreign exchange rates, as our Mexico-based manufacturing operations incur costs that are largely denominated in MXN. As of April 1, 2016 we did not have any outstanding foreign currency exchange forward contracts. While our foreign exchange forward contracts act as economic hedges, we have not designated such instruments as hedges for accounting purposes. Therefore, gains and losses resulting from changes in the fair values of these derivative instruments are recorded in Other income (expense), net, in our accompanying Consolidated Statements of Operations. The following table summarizes the fair value of derivative instruments in our Unaudited Condensed Consolidated Balance Sheets (in thousands): Balance Sheet Location April 1, 2016 December 31, 2015 Derivative Assets: Interest rate cap agreements designated as cash flow hedges Other long-term assets $ — $ 1,313 Derivative Liabilities: Interest rate cap agreements designated as cash flow hedges Other current liabilities $ 692 $ 282 Interest rate cap agreements designated as cash flow hedges Other long-term liabilities 3,610 — The following table summarizes the effect our derivative instruments have on our Unaudited Condensed Consolidated Statements of Operations (in thousands): Three Months Ended Location April 1, 2016 March 28, 2015 Interest rate cap agreements designated as cash flow hedges Interest expense, net $ 10 $ — Foreign exchange forward contracts not designated as hedges Other income, net $ — $ 4 The pre-tax loss on derivative instruments designated as cash flow hedges recognized in other comprehensive income (loss) is presented below (in thousands): Three Months Ended April 1, 2016 March 28, 2015 Interest rate cap agreements designated as cash flow hedges $ (5,391 ) $ —

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Apr. 01, 2016
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	8. FAIR VALUE MEASUREMENTS Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurements. Our assessment of the significance of a particular input to the fair value measurements requires judgment and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy. The following table presents the balances of financial assets and liabilities measured at fair value on a recurring basis (in thousands): As of April 1, 2016 Quoted Prices in Active Markets for Identical (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Recorded Balance Liabilities: Interest rate cap agreements designated as cash flow hedges $ — $ 4,302 $ — $ 4,302 As of December 31, 2015 Quoted Prices in Active Markets for Identical (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Recorded Balance Assets: Interest rate cap agreements designated as cash flow hedges $ — $ 1,313 $ — $ 1,313 Liabilities: Interest rate cap agreements designated as cash flow hedges $ — $ 282 $ — $ 282

DEBT

DEBT	3 Months Ended
	Apr. 01, 2016
Debt Disclosure [Abstract]
DEBT	9. DEBT Debt obligations consist of the following (in thousands): April 1, 2016 December 31, 2015 Credit facilities: Revolving credit facility, net of unamortized debt issuance costs of $2.0 million and $2.1 million as of and December 31, 2015, respectively $ 29,006 $ 27,886 Term loan: $1,047.1 million Term Loan, net of unamortized debt issuance costs and original issuance discount of $14.4 million and $15.3 million as of April 1, 2016 and December 31, 2015, respectively 1,032,644 1,037,117 Notes: $1,015.0 million 8.125% Second Lien notes, net of unamortized debt issuance costs and original issuance discount of $16.3 million and $16.9 million as of April 1, 2016 and December 31, 2015, respectively 998,745 998,137 $298.5 million 10.75% Third Lien notes, net of unamortized debt issuance costs and original issuance discount of $7.7 million and $8.1 million as of April 1, 2016 and December 31, 2015, respectively 290,805 290,443 $300.0 million 9.75% Senior subordinated notes 1,529 1,529 Total debt 2,352,729 2,355,112 Current maturities (10,550 ) (10,550 ) Long-term debt $ 2,342,179 $ 2,344,562 Credit Facilities On May 7, 2015, we entered into (i) a $1,055.0 million new term loan facility (the “Term Loan”) and (ii) a $150.0 million new asset-based revolving credit facility (the “ABL Facility” and together with the Term Loan, the “Credit Facilities”). In addition, the Term Loan provides for a $150.0 million incremental facility, subject to customary borrowing conditions and the ABL Facility provides for a $50.0 million facility increase, subject to customary borrowing conditions. A portion of the proceeds from the Credit Facilities was used to repay in full all amounts due and owing under the revolving credit facility and Tranche B term loans, originally entered into on November 20, 2007, as subsequently amended and restated, and further amended from time to time, by and among DJO Finance LLC (the “Company”), DJO Holdings LLC (“DJO Holdings”), Credit Suisse AG, as administrative agent, and the lenders party thereto. As of April 1, 2016, the market values of our Term Loan and drawings under the ABL Facility were $1,047.1 million and $31.0 million, respectively. We determine market value using trading prices for the senior secured credit facilities on or near that date. This fair value measurement is categorized within Level 2 of the fair value hierarchy. Term Loan Interest Rates. Borrowings under the Term Loan bear interest at a rate equal to, at our option, either (a) 2.25% plus a base rate equal to the highest of (1) the prime rate as reported by the Wall Street Journal, (2) the federal funds effective rate plus 0.50% and (3) the Eurodollar rate for a one-month interest period plus 1.00% or (b) 3.25% plus the Eurodollar rate determined by reference to the ICE Benchmark Administration London Interbank Offered Rate for U.S. dollar deposits, subject to a minimum Eurodollar rate of 1.00%. As of April 1, 2016 our weighted average interest rate for all borrowings under the Credit Facilities was 4.19%. Principal Payments. We are required to make principal repayments under the Term Loan in quarterly installments equal to 0.25% of the original principal amount, with the remaining amount payable at maturity in June 2020. Prepayments. The Term Loan requires us to prepay principal amounts outstanding, subject to certain exceptions, with: · 50% (which percentage will be reduced to 25% and 0% upon attaining certain total net leverage ratios) of annual excess cash flow, as defined in the Term Loan agreement; · 100% of the net cash proceeds above (i) $30.0 million in any single transaction or series of related transactions or (ii) an annual amount of $100.0 million of all non-ordinary course asset sales or other dispositions, if we do not reinvest the net cash proceeds in assets to be used in our business, generally within 12 months of the receipt of such net cash proceeds; and · 100% of the net cash proceeds from issuances of debt by us and our restricted subsidiaries, other than proceeds from debt permitted to be incurred under the Credit Facilities. We may voluntarily repay outstanding loans under the Credit Facilities at any time without premium or penalty, subject to payment of (i) customary breakage costs applicable to prepayments of Eurodollar loans made on a date other than the last day of an interest period applicable thereto and (ii) a prepayment premium of 1% applicable to prepayments made within 6 months from the date of the closing of the Term Loan. Guarantee and Security. All obligations under the Credit Facilities are unconditionally guaranteed by DJO Holdings LLC and each of our existing and future direct and indirect wholly-owned domestic subsidiaries, subject to certain exceptions (collectively, the “Credit Facility Guarantors”). In addition, the Term Loan is secured by (i) a first priority security interest in certain of our tangible and intangible assets and those of each of the Credit Facility Guarantors and all the capital stock of, or other equity interests in, DJO Holdings and each of our material direct or indirect wholly-owned domestic subsidiaries and direct wholly-owned first-tier foreign subsidiaries, (subject to certain exceptions and qualifications) (collectively, “Term Loan Collateral”) and (ii) a second priority security interest in the ABL Collateral (as defined below). Certain Covenants and Events of Default. The Term Loan contains a number of covenants that restrict, subject to certain exceptions, our ability to: · incur additional indebtedness and make guarantees; · create liens on assets; · enter into sale and leaseback transactions; · engage in mergers or consolidations; · sell assets; · pay dividends and other restricted payments; · make investments, loans or advances, including acquisitions; · repay subordinated indebtedness or amend material agreements governing our subordinated indebtedness; · engage in certain transactions with affiliates; and · change our lines of business. In addition, the Term Loan requires us to maintain a maximum first lien net leverage ratio, as defined, of Credit Facilities debt, net of cash, to Adjusted EBITDA of no greater than 5.35:1 for a trailing twelve month period commencing with the period ending September 30, 2015. As of April 1, 2016, our actual senior secured first lien net leverage ratio was 4.16:1, and we were in compliance with all other applicable covenants. Asset-Based Revolving Credit Facility Interest Rate. Borrowings under our ABL Facility bear interest at a rate equal to, at our option, a margin over, either (a) a base rate determined by reference to the highest of (1) the administrative agent’s prime lending rate, (2) the federal funds effective rate plus 0.50% and (3) the Eurodollar rate for a one-month interest period plus 1.00% or (b) a Eurodollar rate determined by reference to the Reuters LIBOR rate for the interest period relevant to such borrowing. The margin for the ABL Facility is 1.25% with respect to base rate borrowings and 2.25% with respect to Eurodollar borrowings, each subject to step-downs based upon the amount of the available, unused facility. Fees. In addition to paying interest on outstanding principal, we are required to pay a commitment fee to the lenders based on the daily amount of the ABL Facility that is unutilized. The commitment fee is an annual rate of 0.25% if the average facility utilization in the previous fiscal quarter is equal to or greater than 50%, and 0.375% if the average facility utilization in the previous fiscal quarter was less than 50%. Guarantee and Security. The ABL Facility is secured by a first priority security interest in personal property of DJOFL and each of the Credit Facility Guarantors consisting generally of accounts receivable, cash, deposit accounts and securities accounts, inventory, intercompany notes and intangible assets (other than intellectual property and investment property), subject to certain exceptions and qualifications (collectively, the “ABL Collateral”, and together with the Term Loan Collateral, the “Collateral”) and a fourth priority security interest in the Term Loan Collateral. Certain Covenants and Events of Default. The ABL Facility contains a number of covenants that, among other things, restrict, subject to certain exceptions, our and our subsidiaries’ ability to undertake certain transactions or otherwise make changes to our assets and business. These are substantially similar to the Term Loan covenants described above. In addition, we are required to maintain a minimum fixed charge coverage ratio, as defined in the agreement, of 1.0 to 1.0 if the unutilized facility is less than the greater of $9.0 million or 10% of the lesser of (1) $150.0 million and (2) the aggregate borrowing base. This coverage ratio requirement remains in place until the 30 th Notes: 8.125% Second Lien Notes On May 7, 2015 we issued $1,015.0 million aggregate principal amount of 8.125% Second Lien Notes (8.125% Notes), which mature on June 15, 2021. The 8.125% Notes are fully and unconditionally guaranteed on a senior secured basis by each of DJOFL’s existing and future direct and indirect wholly-owned domestic subsidiaries that guarantees any of DJOFL’s indebtedness or any indebtedness of DJOFL’s domestic subsidiaries. The net proceeds from the issuance of the 8.125% Notes were used, together with borrowings under the Credit Facilities and cash on hand, to repay our prior notes (see below), repay prior credit facilities and pay all related fees and expenses. The 8.125% Notes and related guarantees are secured by second-priority liens on the Term Loan Collateral and third-priority liens on the ABL Collateral, in each case subject to permitted liens. As of April 1, 2016, the market value of the 8.125% Notes was $903.4 million. We determined market value using trading prices for the 8.125% Notes on or near that date. This fair value measurement is categorized within Level 2 of the fair value hierarchy. Optional Redemption. Prior to June 15, 2018, we have the option to redeem some or all of the 8.125% Notes at a redemption price equal to 100% of the principal amount of the 8.125% Notes redeemed, plus accrued and unpaid interest plus the “make-whole” premium set forth in the indenture governing the 8.125% Notes. On and after June 15, 2018, we have the option to redeem some or all of the 8.125% Notes at the redemption prices set forth in the indenture, plus accrued and unpaid interest. In addition, we may redeem, using net proceeds from certain equity offerings, (i) up to 15% of the principal amount prior to June 15, 2019 at a price equal to 103% of the principal amount being redeemed, and/or (ii) up to 35% of the principal amount prior to June 15, 2018, at a price equal to 108.125% of the principal amount being redeemed, plus accrued and unpaid interest, in each case using an amount not to exceed the net proceeds from certain equity offerings. 10.75% Third Lien Notes On May 7, 2015, we issued $298.5 million aggregate principal amount of 10.75% Third Lien Notes (10.75% Notes) which mature on April 15, 2020. The 10.75% Notes are fully and unconditionally guaranteed on a secured basis by each of DJOFL’s existing and future direct and indirect wholly-owned domestic subsidiaries that guarantees any of DJOFL’s indebtedness or any indebtedness of DJOFL’s domestic subsidiaries. The 10.75% Notes were issued in connection with our (i) offer (Exchange Offer) to exchange our 9.75% Senior Subordinated Notes due 2017 (9.75% Notes) for the 10.75% Notes and cash and (ii) solicitation of consents from registered holders of the 9.75% Notes to certain proposed amendments to the indenture for the 9.75% Notes. The 10.75% Notes and related guarantees are secured by third-priority liens on the Term Loan Collateral and fourth-priority liens on the ABL Collateral, in each case subject to permitted liens. As of April 1, 2016, the market value of the 10.75% Notes was $244.7 million. We determined market value using trading prices for the 10.75% Notes on or near that date. This fair value measurement is categorized within Level 2 of the fair value hierarchy. Optional Redemption. We have the option to redeem the 10.75% Notes, in whole or in part, after May 7, 2015, at the redemption prices set forth in the indenture governing the 10.75% Notes, plus accrued and unpaid interest. 9.75% Senior Subordinated Notes On October 18, 2010, we issued $300.0 million aggregate principal amount of 9.75% Senior Subordinated Notes (9.75% Notes and, collectively with the 10.75% Notes and the 8.125% Notes, the “Notes”) maturing on October 15, 2017. The 9.75% Notes are guaranteed fully and unconditionally on an unsecured senior basis by each of DJOFL’s existing and future direct and indirect wholly-owned domestic subsidiaries that guarantee any of DJOFL’s indebtedness, or any indebtedness of DJOFL’s domestic subsidiaries. On May 13, 2015, a total of $298.5 million aggregate principal of outstanding 9.75% Notes were validly tendered as part of the Exchange Offer. As of April 1, 2016, $1.5 million aggregate principal of the 9.75% Notes remains outstanding. Optional Redemption. Under the indenture governing the 9.75% Notes, we have the option to redeem some or all of the 9.75% Notes at a redemption price of 102.438% and 100% of the then outstanding principal balance at October 15, 2015 and 2016, respectively, plus accrued and unpaid interest. Amendments. On May 7, 2015, the indenture for the 9.75% Notes was amended to eliminate or waive substantially all of the restrictive covenants contained therein, eliminate certain events of default, modify covenants regarding mergers and consolidations, and modify or eliminate certain other provisions, including certain conditions to defeasance, contained therein. Change of Control Upon the occurrence of a change of control, DJOFL must give holders of the Notes an opportunity to sell to DJOFL some or all of their 8.125% Notes and 10.75% Notes at a price equal to 101% of their principal amount, plus accrued and unpaid interest to the repurchase date. Covenants The indentures for the 8.125% Notes and the 10.75% Notes each contain covenants limiting, among other things, our ability to (i) incur additional indebtedness or issue certain preferred and convertible shares, pay dividends on, redeem, repurchase or make distributions in respect of the capital stock of DJO or make other restricted payments, (ii) make certain investments, (iii) sell certain assets, (iv) create liens on certain assets to secure debt, (v) consolidate, merge, sell or otherwise dispose of all or substantially all of our assets, (vi) enter into certain transactions with affiliates, and (vii) designate our subsidiaries as unrestricted subsidiaries. As of April 1, 2016, we were in compliance with all applicable covenants. Our ability to continue to meet the covenants related to our indebtedness specified above in future periods will depend, in part, on events beyond our control, and we may not continue to meet those covenants. A breach of any of these covenants in the future could result in a default under the credit facilities or the Notes, at which time the lenders could elect to declare all amounts outstanding under the senior secured credit facilities to be immediately due and payable. Any such acceleration would also result in a default under the Indentures. Debt Issuance Costs As of April 1, 2016 and December 31, 2015, we had $13.8 million and $14.5 million, respectively, of unamortized debt issuance costs, which are reflected as a direct deduction from the debt liability included in Long-term debt obligations in our Consolidated Balance Sheets. For the three months ended April 1, 2016 and March 28, 2015, amortization of debt issuance costs was $0.7 million and $2.1 million, respectively. Amortization of debt issuance costs was included in Interest expense in our Consolidated Statements of Operations for each of the periods presented.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Apr. 01, 2016
Income Tax Disclosure [Abstract]
INCOME TAXES	10. INCOME TAXES Income taxes for the interim periods presented have been included in our Unaudited Condensed Consolidated Financial Statements on the basis of an estimated annual effective tax rate, adjusted for discrete items. The income tax expense for these periods differed from the amounts which would have been recorded using the U.S. statutory rate due primarily to certain valuation allowances provided against deferred tax assets, the impact of nondeductible expenses, foreign taxes, deferred taxes on the assumed repatriation of foreign earnings and tax amortization of goodwill and indefinite-lived intangibles. For the three months ended April 1, 2016, we recorded income tax provision of $5.4 million on pre-tax losses of $32.5 million, resulting in a negative effective tax rate of 16.6%. For the three months ended March 28, 2015, we recorded income tax provision of approximately $1.9 million on pre-tax losses of $37.3 million, resulting in a negative effective tax rate of 5.2%. Our tax rates are at times negative because our U.S. federal tax losses, and certain state tax losses, are unavailable to offset income taxes arising in other states and in the foreign jurisdictions where we are subject to tax. We record net deferred tax assets to the extent we conclude that it is more likely than not that the related deferred tax assets will be realized. In making such determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operations. At this time, we cannot conclude that it is more likely than not that the benefit from certain U.S. federal and state net operating loss carryforwards will be available to offset future taxable income. Accordingly, we have provided a valuation allowance of $14.7 million on the deferred tax assets related to the net operating loss carry forwards generated in the three months ended April 1, 2016. If our assumptions change and we determine that it is more likely than not that we will be able to realize the deferred tax assets related to these net operating losses, reversal of the valuation allowances we have recorded against those deferred tax assets will be recognized as a reduction of income tax expense. The establishment of valuation allowances does not preclude us from utilizing our loss carryforwards or other deferred tax assets in the future and does not impact our cash resources. We and our subsidiaries file income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. With few exceptions, we are no longer subject to U.S. federal, state and local, or foreign income tax examinations by tax authorities for years before 2011. However, to the extent allowed by law, the tax authorities may have the right to examine prior periods where net operating losses or tax credits were generated and carried forward and make adjustments up to the amount of the net operating loss or credit carryforward amount. At April 1, 2016, our gross unrecognized tax benefits were $16.0 million reflecting an increase of $1.1 million from the unrecognized amount of $14.9 million at December 31, 2015. As of April 1, 2016, we have $3.0 million accrued for interest and penalties related to these unrecognized tax benefits. To the extent all or a portion of our gross unrecognized tax benefits are recognized in the future, no U.S. federal tax benefit for related state income tax deductions would result due to the existence of the U.S. federal valuation allowance. We anticipate that approximately $0.9 million aggregate of unrecognized tax benefits, each of which are individually immaterial, will decrease in the next twelve months due to the expiration of statutes of limitation. As of April 1, 2016, we have unrecognized various foreign and U.S. state tax benefits of approximately $6.2 million, which, if recognized, would impact our effective tax rate in future periods.

STOCK OPTION PLANS AND STOCK-BA

STOCK OPTION PLANS AND STOCK-BASED COMPENSATION	3 Months Ended
	Apr. 01, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
STOCK OPTION PLANS AND STOCK-BASED COMPENSATION	11. STOCK OPTION PLANS AND STOCK-BASED COMPENSATION Stock Option Plan We have one active equity compensation plan, the DJO 2007 Incentive Stock Plan (2007 Plan) under which we are authorized to grant awards of restricted and unrestricted stock, options, and other stock-based awards based on the shares of common stock of our indirect parent, DJO, subject to adjustment in certain events. The total number of shares available to grant under the 2007 Plan is 10,575,529. Options issued under the 2007 Plan can be either incentive stock options or non-qualified stock options. The exercise price of stock options granted will not be less than 100% of the fair market value of the underlying shares on the date of grant and the options will expire no more than ten years from the date of grant. In September 2015, all outstanding options granted to employees between 2008 and 2011 were amended to modify the vesting terms of the portion of the options which vest on achievement of a minimum multiple of invested capital (MOIC) from a MOIC of 2.25 for one-third of the options and a MOIC of 2.5 for an additional one-third of the options to a single MOIC vesting component covering two-thirds of the options with the terms described below. As amended, the options granted between 2008 and 2011 vest as follows: (i) one-third of each stock option grant vests over a specified period of time contingent solely upon the option holder’s continued employment or service with us (Time-Based Options); and, (ii) two-thirds of each stock option grant will vest upon achieving MOIC with respect to Blackstone’s aggregate investment in DJO’s capital stock, to be achieved by Blackstone following a liquidation of all or a portion of its investment in DJO’s capital stock (Market Return Options). The Market Return Options provide for vesting within a range of achievement of a MOIC multiple between 1.5 and 2.25. If Blackstone sells all or a portion of its equity interests in DJO while the options are outstanding, then the unvested Market Return Options will vest and become exercisable as follows: 1) 25% of the options will vest and become exercisable if Blackstone realizes a MOIC of 1.5 times its equity investment in DJO; 2) 100% of the options will vest and become exercisable if Blackstone realizes a MOIC of at least 2.25 times its equity investment in DJO; and 3) if Blackstone realizes a MOIC of greater than 1.5 times its equity investment but less than 2.25 times its equity investment, then 25% of the options will vest and become exercisable and a percentage of the remaining unvested options will vest and become exercisable with such percentage equal to a fraction, the numerator of which is the actual MOIC realized by Blackstone, less 1.5 and the denominator of which is 0.75. In July 2015, all outstanding options granted to employees in 2012 and later years were amended to modify the MOIC vesting provision as described below. These options vest in four equal installments beginning with the year of grant and for each of the three calendar years following the year of grant, with each such installment vesting only if the final reported financial results for such year show that the Adjusted EBITDA for such year equaled or exceeded the Adjusted EBITDA amount in the financial plan approved by DJO’s Board of Directors for such year (Performance Options). In the event that the Adjusted EBITDA in any of such four years falls short of the amount of Adjusted EBITDA in the financial plan for that year, the installment that did not therefore vest at the end of such year shall be eligible for subsequent vesting at the end of the four year vesting period if the cumulative Adjusted EBITDA for such four years equals or exceeds the cumulative Adjusted EBITDA in the financial plans for such four years and the Adjusted EBITDA in the fourth vesting year equals or exceeds the Adjusted EBITDA in the financial plan for such year. In addition, as amended in July 2015, such options also provide that in the event Blackstone achieves the same MOIC requirement described above for the Market Return Options, any unvested installments from prior years and all installments for future years shall thereupon vest. In February 2013, 310,000 options previously granted to new employees in 2012 were amended to convert one-third of such options into Time-Based Options, with the remaining two-thirds continuing to be Performance Options. Additionally, all 2012 Performance Options were amended to allow for vesting of the 2012 Adjusted EBITDA tranche if the 2013 Adjusted EBITDA results equal or exceed an enhanced amount of Adjusted EBITDA over the amount reflected in the 2013 financial plan. The 2013 Adjusted EBITDA results were not met. In February 2014, all 2012 and 2013 Performance Options were amended to allow for vesting of the 2012 and 2013 Adjusted EBITDA tranches if the 2014 Adjusted EBITDA results equaled or exceeded an enhanced amount of Adjusted EBITDA reflected in the 2014 financial plan. Because the required 2014 Adjusted EBITDA results were not achieved, those tranches did not vest. Options granted in 2013 and 2014 to existing employees had the same terms as the Performance Options described above and options granted to new employees in 2013 and 2014 had the same terms as the options amended in February 2013. In 2013 and 2014, options were granted to employees following the net exercise of the options they received in 2007 in exchange for options that had previously been granted in DJO’s predecessor company (Rollover Options), which were scheduled to expire in 2013 and 2014, respectively. These new options were fully vested on the date of grant and have a term of ten years (Vested Options). Except for options granted to the Chairman of the Board and two other board members as described below, options are typically granted annually to members of our Board of Directors who are not affiliates of Blackstone (referred to as Director Service Options). The Director Service Options vest in increments of 33 1/3% per year on each of the first through third anniversary dates of the grant date, contingent upon the optionee’s continued service as a director. The options granted to the Chairman of the Board and the two other board members vest as follows: one-third of the stock option grant vests in increments of 33 1/3% per year on each of the first through third anniversary dates from the grant date contingent upon the optionee’s continued service as a director; and, as amended in July 2015, two-thirds of the stock option grant will vest in the same manner as the Market Return Options. Stock-Based Compensation During the three months ended April 1, 2016, the compensation committee granted 438,000 options to employees, of which 377,832 were Market Return Options and 60,168 were Time-Based Options. Additionally, the compensation committee granted 13,800 Director Service Options to members of the Board of Directors. The weighted average grant date fair value of the Time-Based Options and the Director Service Options, granted during the three months ended April 1, 2016 was $5.99, respectively. During the three months ended March 28, 2015, the compensation committee granted 261,121 options to employees, of which 215,834 were Performance Options, 24,166 were Time-Based Options and 21,121 were Vested Options. Additionally, the compensation committee granted 23,000 Director Service Options to members of the Board of Directors. The weighted average grant date fair values of the Time-Based Options, the Vested Options, and the Director Service Options, granted during the three months ended March 28, 2015 were $6.07, $5.27, and $6.92, respectively. The fair value of each option award is estimated on the date of grant, or modification, using the Black-Scholes option pricing model for service based awards, and a binomial model for market based awards. In estimating fair value for options issued under the 2007 Plan, expected volatility was based on historical volatility of comparable publicly-traded companies. As our historical share option exercise experience does not provide a reasonable basis upon which to estimate the expected term, we used the simplified method. Expected life is calculated in two tranches based on the employment level defined as executive or employee. The risk-free rate used in calculating fair value of stock options for periods within the expected term of the option is based on the U.S. Treasury yield bond curve in effect on the date of grant. The following table summarizes certain assumptions we used to estimate the fair value of the Time-Based Options, the Vested Options and the Director Service Options granted: Three Months Ended April 1, 2016 March 28, 2015 Expected volatility 33.3 % 33.3 % Risk-free interest rate 1.6 % 1.5%-2.0% Expected years until exercise 6.5 5.1-8.3 Expected dividend yield 0.0 % 0.0 % We recorded non-cash stock-based compensation expense during the periods presented as follows (in thousands): Three Months Ended April 1, 2016 March 28, 2015 Cost of sales $ 30 $ 30 Operating expenses: Selling, general and administrative 172 579 Research and development 3 4 $ 205 $ 613 We have determined that it is not probable that we will meet the Adjusted EBITDA targets related to the Performance Options granted. As such, we did not recognize expense for any of the options which had the potential to vest in 2016. Additionally, we have not recognized expense for any of the options which have the potential to vest based on Adjusted EBITDA for 2017, and 2018 as some of these targets have not yet been established and we are unable to assess the probability of achieving such targets. Accordingly, we recognized stock-based compensation expense only for the Time-Based Options, the Vested Options and the Director Service Options granted in 2015 or 2016. In each of the periods presented above, we recognized stock-based compensation expense only for Time-Based Options granted to employees, as the performance components of the Market Return Options are not deemed probable at this time. Stock based compensation expense for options granted to non-employees was not significant to the Company for all periods presented, and was included in Selling, general and administrative expense in our Unaudited Condensed Consolidated Statements of Operations.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Apr. 01, 2016
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	12. RELATED PARTY TRANSACTIONS Blackstone Management Partners LLC (BMP) has agreed to provide certain monitoring, advisory and consulting services to us for an annual monitoring fee equal to the greater of $7.0 million or 2% of consolidated EBITDA as defined in the Transaction and Monitoring Fee Agreement, payable in the first quarter of each year. The monitoring fee agreement will continue until the earlier of November 2019, or such date as DJO and BMP may mutually determine. DJO has agreed to indemnify BMP and its affiliates, directors, officers, employees, agents and representatives from and against all liabilities relating to the services contemplated by the Transaction and Monitoring Fee Agreement and the engagement of BMP pursuant to, and the performance of BMP and its affiliates of the services contemplated by, the Transaction and Monitoring Fee Agreement. At any time in connection with or in anticipation of a change of control of DJO, a sale of all or substantially all of DJO’s assets or an initial public offering of common stock of DJO, BMP may elect to receive, in lieu of remaining annual monitoring fee payments, a single lump sum cash payment equal to the then-present value of all then-current and future annual monitoring fees payable under the Transaction and Monitoring Fee Agreement, assuming a hypothetical termination date of the agreement to be November 2019. For each of the three month periods presented, we expensed $1.75 million related to the annual monitoring fee, which is recorded as a component of Selling, general and administrative expense in the Consolidated Statements of Operations.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Apr. 01, 2016
Commitments And Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	13. COMMITMENTS AND CONTINGENCIES Pain Pump Litigation Over the past 9 years, we were named in numerous product liability lawsuits in the United States involving our prior distribution of a disposable drug infusion pump product (pain pump) manufactured by two third-party manufacturers that was distributed through our Bracing and Vascular segment. We currently are a defendant in one U.S. case and a lawsuit in Canada which has been granted class action status for a class of approximately 45 claimants. We discontinued our sale of these products in the second quarter of 2009. These cases have been brought against the manufacturers and certain distributors of these pumps. All of these lawsuits allege that the use of these pumps with certain anesthetics for prolonged periods after certain shoulder surgeries or, less commonly, knee surgeries, has resulted in cartilage damage to the plaintiffs. Except for the payment by the Company of policy deductibles or self-insured retentions, our products liability carriers in three policy periods have paid the defense costs and settlements related to these claims, subject to reservation of rights to deny coverage for customary matters, including punitive damages and off-label promotion. We have engaged in settlement discussions with the Canadian plaintiffs and have reached an agreement in principal to settle these claims with a payment in the first quarter of 2017 in an amount that is covered in part by the remaining limits under the insurance policy for the applicable reporting period, with the balance to be paid by the Company, which amount is not material to the Company’s financial position or the results of its operations. BGS Qui Tam Action In 2005, we were named as a defendant in a qui tam action filed in Federal Court in Boston, Massachusetts, captioned United States, ex rel. Bierman v. Orthofix International, N.V. et al., in which the relator, or whistleblower, names us and each other company engaged in the external bone growth stimulator industry as defendants. The case was filed under seal in March 2005 and unsealed in March 2009, during which time the government investigated the claims made by relator and decided not to intervene in the case. The government continued its investigation of DJO for several years following the unsealing of the case but did not ultimately bring any criminal or civil charges against us relating to the investigation. The relator alleges that from 1993 to the present, the defendants engaged in Medicare fraud and violated federal and state false claims acts by seeking reimbursement for bone growth stimulation devices as purchased items rather than rental items. The relator also alleges that the defendants engaged in other marketing practices constituting violations of the federal and various state false claim and anti-kickback statutes. Orthofix International, N.V. has settled with the relator and we understand that the other three defendants have reached settlements. In April, 2016, the Court granted DJO’s motion for summary judgment resulting in the dismissal of all of the remaining causes of action in this lawsuit and the relator has agreed not to appeal this ruling. California Qui Tam Action On October 11, 2013, we were served with a summons and complaint related to a qui tam action filed in U.S. District Court in Los Angeles, California in August 2012 and amended in December 2012 that names us as a defendant along with each of the other companies that manufactures and sells external bone growth stimulators for spinal applications. The case is captioned United States of America, et al.ex re. Doris Modglin and Russ Milko, v. DJO Global, Inc., DJO, LLC, DJO Finance LLC, Orthofix, Inc., Biomet, Inc., and EBI, LP., Case No. CV12-7152-MMM (JCGx) (C.D. Cal.). The plaintiffs, or relators, allege that the defendants have violated federal and state false claim acts by seeking reimbursement for bone growth stimulators for uses outside of the FDA approved indications for use for such products. The plaintiffs are seeking treble damages alleged to have been sustained by the United States and the states, penalties and attorney’s fees and costs. The federal government and all of the named states have declined to intervene in this case. We filed a motion to dismiss the second amended complaint, which motion was granted with leave to amend. Relators then filed a third amended complaint and we filed a motion to dismiss the third amended complaint and that motion has been granted without leave to amend as to the federal false claim act allegations. The Court declined jurisdiction over the remaining state claims. Relators have appealed the decision to the US Court of Appeals for the Ninth Circuit. Empi Investigation Our subsidiary, Empi, Inc., was served with a subpoena dated May 11, 2015, issued by the Office of Inspector General (OIG) for the U.S. Department of Defense seeking a variety of documents primarily relating to the supply of home electrotherapy units and supplies by Empi to beneficiaries covered under medical insurance programs sponsored or administered by TRICARE, the Defense Health Agency and the Department of Defense. The relevant time period for these documents is from January 1, 2010 to the date of the subpoena. We are in the process of collecting and producing responsive documents to the OIG. We have also commenced discussions with the OIG regarding possible settlement of this investigation, but the potential range of loss is yet to be determined. We are in the process of collecting and producing responsive documents to the OIG. We have also commenced discussions with the OIG regarding possible settlement of this investigation, but the potential range of loss is yet to be determined. We cannot provide any assurance as to the outcome of the investigation by the OIG or that any consequences will not have a material adverse effect on our reputation, business, prospects, financial condition and results of operations. New Jersey Orthotics Investigation In July 2013 we were served with a subpoena under the Health Insurance Portability and Accountability Act seeking documents relating to the fitting of custom-fabricated or custom-fitted orthoses in the states of New Jersey, Washington and Texas. The subpoena was issued by the United States Attorney’s Office for the District of New Jersey in connection with an investigation of compliance with professional licensing statutes in those states relating to the practice of orthotics. We have supplied the documents requested under the subpoena. We cannot provide any assurance as to the outcome of the investigation or that any consequences will not have a material adverse effect on our reputation, business, prospects, financial condition and results of operations.

SEGMENT AND GEOGRAPHIC INFORMAT

SEGMENT AND GEOGRAPHIC INFORMATION	3 Months Ended
	Apr. 01, 2016
Segment Reporting [Abstract]
SEGMENT AND GEOGRAPHIC INFORMATION	14. SEGMENT AND GEOGRAPHIC INFORMATION For the periods ended April 1, 2016 and March 28, 2015, we reported our business in four operating segments: Bracing and Vascular; Recovery Sciences; Surgical Implant and International. Bracing and Vascular Segment Our Bracing and Vascular segment, which generates its revenues in the United States, offers our rigid knee bracing products, orthopedic soft goods, cold therapy products, vascular systems, therapeutic shoes and inserts and compression therapy products, primarily under the DonJoy, ProCare, Aircast, Dr. Comfort, Bell-Horn and Exos brands. This segment also includes our OfficeCare channel, through which we maintain an inventory of soft goods and other products at healthcare facilities, primarily orthopedic practices, for immediate distribution to patients. The Bracing and Vascular segment primarily sells its products to orthopedic and sports medicine professionals, hospitals, podiatry practices, orthotic and prosthetic centers, home medical equipment providers and independent pharmacies. In 2014 we expanded our consumer channel to focus on marketing, selling and distributing our products, including bracing and vascular products, to professional and consumer retail customers and online. The bracing and vascular products sold through the channel are principally sold under the DonJoy Performance, Bell-Horn and Doctor Comfort brands. Recovery Sciences Segment Our Recovery Sciences segment, which generates its revenues in the United States, is divided into three main channels: · CMF . Our CMF channel sells our bone growth stimulation products. We sell these products either directly to patients or to independent distributors. For products sold to patients, we arrange billing to the patients and their third party payors. · Chattanooga . Our Chattanooga channel offers products in the clinical rehabilitation market in the category of clinical electrotherapy devices, clinical traction devices, and other clinical products and supplies such as treatment tables, continuous passive motion (CPM) devices and dry heat therapy. · Consumer . Our consumer channel offers professional and consumer retail customers our Compex electrostimulation device, which is used in training programs to aid muscle development and to accelerate muscle recovery after training sessions. Surgical Implant Segment Our Surgical Implant segment, which generates its revenues in the United States, develops, manufactures and markets a wide variety of knee, hip and shoulder implant products that serve the orthopedic reconstructive joint implant market. International Segment Our International segment, which generates most of its revenues in Europe, sells all of our products and certain third-party products through a combination of direct sales representatives and independent distributors. Information regarding our reportable business segments is presented below (in thousands). Segment results exclude the impact of amortization and impairment of goodwill and intangible assets, certain general corporate expenses, and charges related to various integration activities, as defined by management. The accounting policies of the reportable segments are the same as the accounting policies of the Company. We allocate resources and evaluate the performance of segments based on net sales, gross profit, operating income and other non-GAAP measures, as defined in our Credit Facilities. We do not allocate assets to reportable segments because a significant portion of our assets are shared by the segments. Three Months Ended April 1, 2016 March 28, 2015 Net sales: Bracing and Vascular $ 124,216 $ 113,904 Recovery Sciences 36,575 34,525 Surgical Implant 43,050 26,926 International 75,065 72,156 $ 278,906 $ 247,511 Operating income: Bracing and Vascular $ 20,534 $ 20,896 Recovery Sciences 6,445 3,930 Surgical Implant 7,229 4,320 International 8,989 12,385 Expenses not allocated to segments and eliminations (33,735 ) (31,781 ) $ 9,462 $ 9,750 Geographic Area Following are our net sales by geographic area (in thousands): Three Months Ended April 1, 2016 March 28, 2015 Net sales: United States $ 203,841 $ 175,355 Other Europe, Middle East and Africa 36,459 33,694 Germany 21,003 21,034 Australia and Asia Pacific 10,002 9,891 Canada 5,737 5,352 Latin America 1,864 2,185 $ 278,906 $ 247,511

SUPPLEMENTAL GUARANTOR CONDENSE

SUPPLEMENTAL GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS	3 Months Ended
	Apr. 01, 2016
Organization Consolidation And Presentation Of Financial Statements [Abstract]
SUPPLEMENTAL GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS	15. SUPPLEMENTAL GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS DJOFL and its direct wholly-owned subsidiary, DJO Finco Inc. (DJO Finco), jointly issued the 8.125% Notes, 10.75% Notes and 9.75% Notes. DJO Finco was formed solely to act as a co-issuer of the notes, has only nominal assets and does not conduct any operations. The indentures generally prohibit DJO Finco from holding any assets, becoming liable for any obligations or engaging in any business activity. The 8.125% Notes are jointly and severally, fully and unconditionally guaranteed, on a senior secured basis by all of DJOFL’s domestic subsidiaries (other than the co-issuer) that are 100% owned, directly or indirectly, by DJOFL (the Guarantors). The 10.75% Notes are jointly and severally, fully and unconditionally guaranteed, on a secured basis by the Guarantors. The 9.75% Notes are jointly and severally, fully and unconditionally guaranteed, on an unsecured senior subordinated basis by the Guarantors. Our foreign subsidiaries (the Non-Guarantors) do not guarantee the notes. The following tables present the financial position, results of operations and cash flows of DJOFL, the Guarantors, the Non-Guarantors and certain eliminations for the periods presented. DJO Finance LLC Unaudited Condensed Consolidating Balance Sheets As of April 1, 2016 (in thousands) DJOFL Guarantors Non- Guarantors Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 13,974 $ 1,321 $ 21,949 $ — $ 37,244 Accounts receivable, net — 124,797 47,595 — 172,392 Inventories, net — 138,641 51,830 (13,938 ) 176,533 Prepaid expenses and other current assets 10 16,919 8,329 — 25,258 Total current assets 13,984 281,678 129,703 (13,938 ) 411,427 Property and equipment, net — 112,088 13,878 (75 ) 125,891 Goodwill — 951,005 102,071 (32,218 ) 1,020,858 Intangible assets, net — 718,717 11,221 — 729,938 Investment in subsidiaries 1,297,699 1,687,724 52,749 (3,038,172 ) — Intercompany receivables 578,904 — — (578,904 ) — Other non-current assets — 1,315 4,156 — 5,471 Total assets $ 1,890,587 $ 3,752,527 $ 313,778 $ (3,663,307 ) $ 2,293,585 Liabilities and (Deficit) Equity Current liabilities: Accounts payable $ — $ 66,096 $ 10,200 $ — $ 76,296 Current portion of debt obligations 10,550 — — — 10,550 Other current liabilities 40,424 59,414 27,684 — 127,522 Current liabilities of discontinued operations 2,934 2,934 Total current liabilities 50,974 128,444 37,884 — 217,302 Long-term debt obligations 2,342,179 — — — 2,342,179 Deferred tax liabilities, net — 211,940 5,963 — 217,903 Intercompany payables, net — 378,776 146,914 (525,690 ) — Other long-term liabilities 3,610 15,157 675 — 19,442 Total liabilities 2,396,763 734,317 191,436 (525,690 ) 2,796,826 Noncontrolling interests — — 2,935 — 2,935 Total membership (deficit) equity (506,176 ) 3,018,210 119,407 (3,137,617 ) (506,176 ) Total liabilities and (deficit) equity $ 1,890,587 $ 3,752,527 $ 313,778 $ (3,663,307 ) $ 2,293,585 DJO Finance LLC Unaudited Condensed Consolidating Statements of Operations For the Three Months Ended April 1, 2016 (in thousands) DJOFL Guarantors Non- Guarantors Eliminations Consolidated Net sales $ — $ 243,660 $ 75,495 $ (40,249 ) $ 278,906 Costs and operating expenses: Cost of sales (exclusive of amortization of intangible assets of $7,407) — 94,841 64,394 (41,152 ) 118,083 Selling, general and administrative — 97,810 24,119 — 121,929 Research and development — 8,881 973 — 9,854 Amortization of intangible assets — 19,147 431 — 19,578 — 220,679 89,917 (41,152 ) 269,444 Operating income (loss) — 22,981 (14,422 ) 903 9,462 Other (expense) income: Interest (expense) income, net (42,283 ) 20 (7 ) — (42,270 ) Other (expense) income, net — (8,020 ) 8,304 — 284 Intercompany income (expense) , net — 363 118 (481 ) — Equity in income (loss) of subsidiaries, net 3,962 — — (3,962 ) — (38,321 ) (7,637 ) 8,415 (4,443 ) (41,986 ) (Loss) income before income taxes (38,321 ) 15,344 (6,007 ) (3,540 ) (32,524 ) Income tax provision — (4,407 ) (1,006 ) — (5,413 ) Net (loss) income from continuing operations (38,321 ) 10,937 (7,013 ) (3,540 ) (37,937 ) Net loss from discontinued operations (190 ) (190 ) Net (loss) income (38,321 ) 10,747 (7,013 ) (3,540 ) (38,127 ) Net income attributable to noncontrolling interests — — (193 ) — (193 ) Net (loss) income attributable to DJOFL $ (38,321 ) $ 10,747 $ (7,206 ) $ (3,540 ) $ (38,320 ) DJO Finance LLC Unaudited Condensed Consolidating Statements of Comprehensive Loss For the Three Months Ended April 1, 2016 (in thousands) DJOFL Guarantors Non- Guarantors Eliminations Consolidated Net (loss) income $ (38,321 ) $ 10,747 $ (7,013 ) $ (3,540 ) $ (38,127 ) Other comprehensive loss, net of taxes: Foreign currency translation adjustments, net of tax provision of $277 — — 5,608 — 5,608 Unrealized loss on cash flow hedges, net of tax provision of zero (5,391 ) — — — (5,391 ) Other comprehensive (loss) income (5,391 ) — 5,608 — 217 Comprehensive (loss) income (43,712 ) 10,747 (1,513 ) (3,540 ) (37,910 ) Comprehensive income attributable to noncontrolling interests — — (301 ) — (301 ) Comprehensive (loss) income attributable to DJO Finance LLC $ (43,712 ) $ 10,747 $ (1,814 ) $ (3,540 ) $ (38,211 ) DJO Finance LLC Unaudited Condensed Consolidating Statements of Cash Flows For the Three months Ended April 1, 2016 (in thousands) DJOFL Guarantors Non- Guarantors Eliminations Consolidated Cash Flows From Operating Activities: Net (loss) income $ (38,321 ) $ 10,747 $ (7,013 ) $ (3,540 ) $ (38,127 ) Net loss from discontinued operations 190 $ 190 Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: Depreciation — 9,123 1,214 (13 ) 10,324 Amortization of intangible assets — 19,147 431 — 19,578 Amortization of debt issuance costs and non-cash interest expense 1,892 — — — 1,892 Stock-based compensation expense — 205 — — 205 Loss (gain) on disposal of assets, net — 17 75 (1 ) 91 Deferred income tax expense (benefit) — 2,917 (265 ) — 2,652 Equity in (loss) income of subsidiaries, net (3,962 ) — — 3,962 — Changes in operating assets and liabilities, net of acquired assets and liabilities: Accounts receivable — 3,287 (1,881 ) — 1,406 Inventories — 4,066 (1,275 ) (1,214 ) 1,577 Prepaid expenses and other assets 1,345 (4,351 ) (1,055 ) 765 (3,296 ) Accounts payable and other current liabilities 21,377 (3,457 ) (1,636 ) (899 ) 15,385 Net cash (used in) provided by continuing operating activities (17,669 ) 41,891 (11,405 ) (940 ) 11,877 Net cash (used in) discontinued operations - (7,720 ) — - (7,720 ) Net cash (used in) provided by operating activities (17,669 ) 34,171 (11,405 ) (940 ) 4,157 Cash Flows From Investing Activities: Purchases of property and equipment — (10,939 ) (1,081 ) (1 ) (12,021 ) Net cash used in investing activities from continuing operations — (10,939 ) (1,081 ) (1 ) (12,021 ) Net cash provided by investing activities from discontinued operations — — — — — Net cash used in investing activities — (10,939 ) (1,081 ) (1 ) (12,021 ) Cash Flows From Financing Activities: Intercompany 6,245 (22,071 ) 14,885 941 — Proceeds from issuance of debt 6,000 — — — 6,000 Repayments of debt obligations (10,275 ) — — — (10,275 ) Net cash provided by (used in) financing activities 1,970 (22,071 ) 14,885 941 (4,275 ) Effect of exchange rate changes on cash and cash equivalents — — 440 — 440 Net (decrease) increase in cash and cash equivalents (15,699 ) 1,161 2,839 — (11,699 ) Cash and cash equivalents, beginning of year 29,673 160 19,110 — 48,943 Cash and cash equivalents, end of year $ 13,974 $ 1,321 $ 21,949 $ - $ 37,244 DJO Finance LLC Condensed Consolidating Balance Sheets As of December 31, 2015 (in thousands) DJOFL Guarantors Non- Guarantors Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 29,673 $ 160 $ 19,110 $ — $ 48,943 Accounts receivable, net — 128,085 44,275 — 172,360 Inventories, net — 142,033 31,803 737 174,573 Prepaid expenses and other current assets 42 13,301 7,836 — 21,179 Current assets of discontinued operations 2,878 - — 2,878 Total current assets 29,715 286,457 103,024 737 419,933 Property and equipment, net — 103,637 13,721 (85 ) 117,273 Goodwill — 951,005 98,309 (31,210 ) 1,018,104 Intangible assets, net — 737,798 11,247 — 749,045 Investment in subsidiaries 1,297,699 1,687,724 50,741 (3,036,164 ) — Intercompany receivables 575,483 — — (575,483 ) — Other non-current assets 1,313 1,193 2,668 — 5,174 Non current assets of discontinued operations — 29 - — 29 Total assets $ 1,904,210 $ 3,767,843 $ 279,710 $ (3,642,205 ) $ 2,309,558 Liabilities and (Deficit) Equity Current liabilities: Accounts payable $ — $ 49,394 $ 9,098 $ — $ 58,492 Current portion of debt obligations 10,550 — - — 10,550 Other current liabilities 17,268 73,260 28,643 — 119,171 Current liabilities of discontinued operations - 13,371 - — 13,371 Total current liabilities 27,818 136,025 37,741 — 201,584 Long-term debt obligations 2,344,562 — — — 2,344,562 Deferred tax liabilities, net — 209,179 4,677 — 213,856 Intercompany payables, net — 400,216 131,138 (531,354 ) — Other long-term liabilities — 14,441 651 — 15,092 Total liabilities 2,372,380 759,861 174,207 (531,354 ) 2,775,094 Noncontrolling interests — — 2,634 — 2,634 Total membership (deficit) equity (468,170 ) 3,007,982 102,869 (3,110,851 ) (468,170 ) Total liabilities and (deficit) equity $ 1,904,210 $ 3,767,843 $ 279,710 $ (3,642,205 ) $ 2,309,558 DJO Finance LLC Unaudited Condensed Consolidating Statements of Operations For the Three Months Ended March 28, 2015 (in thousands) DJOFL Guarantors Non - Guarantors Eliminations Consolidated Net sales $ — $ 218,392 $ 70,536 $ (41,417 ) $ 247,511 Costs and operating expenses: Cost of sales (exclusive of amortization of intangible assets of $7,535) — 90,921 53,334 (42,371 ) 101,884 Selling, general and administrative — 84,338 22,847 — 107,185 Research and development — 7,882 982 — 8,864 Amortization of intangible assets — 19,198 630 — 19,828 — 202,339 77,793 (42,371 ) 237,761 Operating income (loss) — 16,053 (7,257 ) 954 9,750 Other (expense) income: Interest (expense) income, net (42,871 ) 12 (7 ) — (42,866 ) Other expense, net — (525 ) (3,631 ) - (4,156 ) Intercompany income (expense), net - 319 25 (344 ) - Equity in income of subsidiaries, net 7,344 - — (7,344 ) - (35,527 ) (194 ) (3,613 ) (7,688 ) (47,022 ) (Loss) income before income taxes (35,527 ) 15,859 (10,870 ) (6,734 ) (37,272 ) Income tax provision — (1,603 ) (342 ) — (1,945 ) Net (loss) income from continuing operations (35,527 ) 14,256 (11,212 ) (6,734 ) (39,217 ) Net income from discontinued operations — 3,992 — — 3,992 Net loss (income) (35,527 ) 18,248 (11,212 ) (6,734 ) (35,225 ) Net income attributable to noncontrolling interests — — (301 ) — (301 ) Net (loss) income attributable to DJOFL $ (35,527 ) $ 18,248 $ (11,513 ) $ (6,734 ) $ (35,526 ) DJO Finance LLC Unaudited Condensed Consolidating Statements of Comprehensive Loss For the Three Months Ended March 28, 2015 (in thousands) DJOFL Guarantors Non - Guarantors Eliminations Consolidated Net (loss) income $ (35,527 ) $ 18,248 $ (11,212 ) $ (6,734 ) $ (35,225 ) Other comprehensive loss, net of taxes: Foreign currency translation adjustments, net of tax benefit of $492 — — (9,442 ) — (9,442 ) Other comprehensive loss — — (9,442 ) — (9,442 ) Comprehensive (loss) income (35,527 ) 18,248 (20,654 ) (6,734 ) (44,667 ) Comprehensive income attributable to noncontrolling interests — — (17 ) — (17 ) Comprehensive (loss) income attributable to DJO Finance LLC $ (35,527 ) $ 18,248 $ (20,671 ) $ (6,734 ) $ (44,684 ) DJO Finance LLC Unaudited Condensed Consolidating Statements of Cash Flows For the Three months Ended March 28, 2015 (in thousands) DJOFL Guarantors Non - Guarantors Eliminations Consolidated Cash Flows from Operating Activities: Net (loss) income $ (35,527 ) $ 18,248 $ (11,212 ) $ (6,734 ) $ (35,225 ) Net income from discontinued operations — (3,992 ) — — (3,992 ) Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: Depreciation — 7,038 1,202 (26 ) 8,214 Amortization of intangible assets — 19,198 630 — 19,828 Amortization of debt issuance costs and non-cash interest expense 2,288 — — — 2,288 Stock-based compensation expense — 613 — — 613 Gain on disposal of assets, net — 40 34 — 74 Deferred income tax expense (benefit) — 7,631 (340 ) - 7,291 Equity in (loss) income of subsidiaries, net (7,344 ) — — 7,344 — Changes in operating assets and liabilities: Accounts receivable — 4,992 (1,968 ) — 3,024 Inventories — (19 ) (5,291 ) (2,788 ) (8,098 ) Prepaid expenses and other assets 44 2,325 265 193 2,827 Accounts payable and other current liabilities 25,950 (14,158 ) (4,100 ) 4,615 12,307 Net cash (used in) provided by continuing operating activities (14,589 ) 41,916 (20,780 ) 2,604 9,151 Net cash provided by discontinued operations — 5,991 — — 5,991 Net cash (used in) provided by operating activities (14,589 ) 47,907 (20,780 ) 2,604 15,142 Cash Flows from Investing Activities: Purchases of property and equipment — (4,715 ) (1,505 ) 3 (6,217 ) Net cash (used in) provided by investing activities from continuing operations — (4,715 ) (1,505 ) 3 (6,217 ) Net cash provided by investing activities from discontinued operations — — — — — Net cash (used in) provided by investing activities — (4,715 ) (1,505 ) 3 (6,217 ) Cash Flows from Financing Activities: Intercompany 33,363 (49,366 ) 18,610 (2,607 ) — Proceeds from issuance of debt 17,000 — — — 17,000 Repayments of debt (20,000 ) — (19 ) — (20,019 ) Net cash provided by (used in) financing activities 30,363 (49,366 ) 18,591 (2,607 ) (3,019 ) Effect of exchange rate changes on cash and cash equivalents — — (1,362 ) — (1,362 ) Net increase (decrease) in cash and cash equivalents 15,774 (6,174 ) (5,056 ) — 4,544 Cash and cash equivalents at beginning of period 12,958 3 18,183 — 31,144 Cash and cash equivalents at end of period $ 28,732 $ (6,171 ) $ 13,127 $ — $ 35,688

ORGANIZATION AND BASIS OF PRE24

ORGANIZATION AND BASIS OF PRESENTATION (Policies)	3 Months Ended
	Apr. 01, 2016
Accounting Policies [Abstract]
Segment Reporting	Segment Reporting We market and distribute our products through four operating segments: Bracing and Vascular; Recovery Sciences; Surgical Implant; and International. Our Bracing and Vascular, Recovery Sciences, and Surgical Implant segments generate their revenues within the United States. Our Bracing and Vascular segment offers rigid knee braces, orthopedic soft goods, cold therapy products, vascular systems, compression therapy products and therapeutic footwear for the diabetes care market. Our Recovery Sciences segment offers home electrotherapy, iontophoresis, home traction products, bone growth stimulation products and clinical physical therapy equipment. Our Surgical Implant segment offers a comprehensive suite of reconstructive joint products for the knee, hip and shoulder. Our International segment offers all of our products to customers outside the United States. See Note 14 for additional information about our reportable segments. During the fourth quarter of 2015, we ceased manufacturing, selling and distributing products of our Empi business and the related insurance billing operations domestically. The Empi business primarily manufactured and sold transcutaneous electrical nerve stimulation (TENS) devices for pain relief, other electrotherapy and orthopedic products and the related supplies. Empi was facing a challenging regulatory and compliance environment, decreasing reimbursement rates and remained below the level needed to reach adequate profitability within an economically justified period of time. Empi was part of our Recovery Sciences operating segment. For financial statement purposes, the results of the Empi business are reported within discontinued operations.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Estimates and assumptions are used in accounting for, among other things, contractual allowances, rebates, product returns, warranty obligations, allowances for doubtful accounts, valuation of inventories, self-insurance reserves, income taxes, loss contingencies, fair values of derivative instruments, fair values of long-lived assets and any related impairments, capitalization of costs associated with internally developed software and stock-based compensation. Actual results could differ from those estimates.
Basis of Presentation	Basis of Presentation We consolidate the results of operations of our 50% owned subsidiary, Medireha GmbH (Medireha), and reflect the 50% share of results not owned by us as non-controlling interests in our Consolidated Statements of Operations. We maintain control of Medireha through certain rights that enable us to prohibit certain business activities that are not consistent with our plans for the business and provide us with exclusive distribution rights for products manufactured by Medireha.
Interim Reporting	Interim Reporting The accompanying Unaudited Condensed Consolidated Financial Statements include our accounts and all voting interest entities where we exercise a controlling financial interest through the ownership of a direct or indirect majority voting interest. All significant intercompany accounts and transactions have been eliminated in consolidation. Our Unaudited Condensed Consolidated Financial Statements have been prepared in accordance with GAAP and with the instructions to Form 10–Q and Article 10 of Regulation S–X for interim financial information. Accordingly, these financial statements do not include all of the information required by GAAP or Securities and Exchange Commission (SEC) rules and regulations for complete annual financial statements. In the opinion of management, these financial statements reflect all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the results of operations for the interim periods presented. The results of operations for any interim period are not necessarily indicative of results for the full year. These Unaudited Condensed Consolidated Financial Statements should be read in conjunction with our consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2015. The Company operates on a manufacturing calendar. Each quarter consists of thirteen weeks, two four week and one five week period. Our first quarters may have more or fewer shipping days from year to year based on the days of week holidays fall. The first quarter of 2016 had more shipping days than in the first quarter 2015.
Recent Accounting Standards	Recent Accounting Standards In May 2014, the FASB issued an accounting standards update related to revenue from contracts with customers. The new standard provides a five-step approach to be applied to all contracts with customers. The accounting standards update also requires expanded disclosures about revenue recognition. On July 9, 2015, the FASB decided to defer the effective date of the standard. The guidance is now effective for fiscal years beginning after December 15, 2017 and interim periods within that reporting period. Early adoption is permitted as early as the original effective date of December 15, 2016. The Company is currently evaluating the new guidance to determine the impact it may have on its consolidated financial statements. In April 2015, the FASB issued an accounting standards update related to the presentation of debt issuance costs. The standard requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts. The guidance is effective for annual and interim periods beginning after December 15, 2015. Early application is permitted. The Company has early adopted this update and the impact is reflected in the current and prior periods presented. In April 2015, the FASB issued an accounting standards update related to internal-use software. The standard provides guidance to clarify the customer’s accounting for fees paid in a cloud computing arrangement. The guidance is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. The Company adopted this ASU with prospective application in the first quarter of 2016. Adoption of this new guidance did not have a material effect on the Company’s financial statements. In July 2015, the FASB issued an accounting standards update which requires an entity to measure inventory at the lower of cost and net realizable value. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This guidance does not apply to inventory that is measured using last-in, first-out (LIFO). The guidance is effective for annual and interim periods beginning after December 15, 2016. Early adoption is permitted. Adoption of this new guidance is not expected to have a material effect on the Company’s financial statements. In September 2015, the FASB issued an accounting standards update which eliminates the requirement for an acquirer in a business combination to restate prior period financial statements for measurement period adjustments. The new guidance requires that the cumulative impact of a measurement period adjustment (including the impact on prior periods) be recognized in the reporting period in which the adjustment is identified. The new guidance also sets forth new disclosure requirements related to the adjustments. The guidance is effective for annual and interim periods beginning after December 15, 2015. Early adoption is permitted. Adoption of this new guidance did not have a material effect on the Company’s financial statements. In November 2015, the FASB issued an accounting standards update which requires all deferred income taxes be presented on the balance sheet as noncurrent. The new guidance is intended to simplify financial reporting by eliminating the requirement to classify deferred taxes between current and noncurrent. The guidance is effective for annual and interim periods beginning after December 15, 2016. The Company has early adopted this update and the impact is reflected prospectively in the Company’s financial statements. In January 2016, the FASB issued an accounting standards update which affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. This guidance retains the current accounting for classifying and measuring investments in debt securities and loans but requires equity investments to be measured at fair value with subsequent changes recognized in net income, except for those accounted for under the equity method or requiring consolidation. The guidance also changes the accounting for investments without a readily determinable fair value and that do not qualify for the practical expedient permitted by the guidance to estimate fair value. A policy election can be made for these investments whereby estimated fair value may be measured at cost and adjusted in subsequent periods for any impairment or changes in observable prices of identical or similar investments. The guidance is effective for annual periods beginning after December 15, 2017. Early adoption is permitted. Adoption of this new guidance is not expected to have a material effect on the Company’s financial statements. In February 2016, the FASB issued an accounting standards update which affects the accounting for leases. The guidance requires lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than 12 months. The amendment also will require qualitative and quantitative disclosures designed to give financial statement users information on the amount, timing, and uncertainty of cash flows arising from leases. The guidance is effective for interim and annual reporting periods beginning after December 15, 2018. Early adoption is permitted. We are still assessing the impact of adoption on our consolidated financial statements. In March 2016, the FASB issued an accounting standards update which affects the accounting for interim and annual reporting periods beginning after Adoption of this new guidance is not expected to have a material effect on the Company’s financial statements.

DIVESTITURES (Tables)

DIVESTITURES (Tables)	3 Months Ended
	Apr. 01, 2016
Business Combinations [Abstract]
Schedule of Discontinued Operations	Income (loss) from discontinued operations, net of taxes, is comprised of the following (in thousands): Three Months Ended April 1, 2016 March 28, 2015 Net sales $ — $ 32,590 Costs and operating expenses: Cost of sales — 7,358 Selling, general and administrative — 12,587 Research and development — 36 Amortization of intangible assets — 2,282 Other (loss) income (190 ) 50 (Loss) income from discontinued operations before income taxes $ (190 ) $ 10,377 Income tax provision — (6,385 ) Net (loss) income from discontinued operations $ (190 ) $ 3,992 Net liabilities for discontinued operations are as follows (in thousands): April 1, December 31, 2016 2015 Accounts receivable, net $ — $ 2,743 Other current assets — 135 Property and equipment, net — 22 Intangible and other non-current assets — 7 Total assets — 2,907 Accounts payable and other liabilities 2,934 13,371 Net liabilities $ (2,934 ) $ (10,464 )

ACCOUNTS RECEIVABLE RESERVES (T

ACCOUNTS RECEIVABLE RESERVES (Tables)	3 Months Ended
	Apr. 01, 2016
Receivables [Abstract]
Summary of Activity in Accounts Receivable Reserves for Doubtful Accounts and Sales Returns	A summary of activity in our accounts receivable reserves for doubtful accounts is presented below (in thousands): Three Months Ended April 1, 2016 March 28, 2015 Balance, beginning of period $ 32,893 $ 23,585 Provision for doubtful accounts 5,036 5,711 Write-offs, net of recoveries (4,562 ) (1,875 ) Balance, end of period $ 33,367 $ 27,421

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	Apr. 01, 2016
Inventory Disclosure [Abstract]
Summary of Inventories	Inventories consist of the following (in thousands): April 1, 2016 December 31, 2015 Components and raw materials $ 58,114 $ 57,372 Work in process 10,349 10,330 Finished goods 99,291 99,167 Inventory held on consignment 30,909 29,746 198,663 196,615 Inventory reserves (22,130 ) (22,042 ) $ 176,533 $ 174,573
Summary of Activity in Inventory Reserves	A summary of the activity in our reserves for estimated slow moving, excess, obsolete and otherwise impaired inventory is presented below (in thousands): Three Months Ended April 1, 2016 March 28, 2015 Balance, beginning of period $ 22,042 $ 22,094 Provision charged to costs of sales 1,446 1,825 Write-offs, net of recoveries (1,358 ) (1,126 ) Balance, end of period $ 22,130 $ 22,793

LONG-LIVED ASSETS (Tables)

LONG-LIVED ASSETS (Tables)	3 Months Ended
	Apr. 01, 2016
Goodwill And Intangible Assets Disclosure [Abstract]
Schedule of Changes in Carrying Amount of Goodwill	Changes in the carrying amount of goodwill for the three months ended April 1, 2016 are presented in the table below (in thousands): Bracing & Vascular Recovery Sciences Surgical Implant International Total Balance, beginning of period Goodwill $ 483,258 $ 249,601 $ 49,229 $ 333,022 $ 1,115,110 Accumulated impairment losses — (49,600 ) (47,406 ) — (97,006 ) Goodwill, net of accumulated impairment losses at December 31, 2015 483,258 200,001 1,823 333,022 1,018,104 Current Year Activity: Foreign currency translation — — — 2,754 2,754 Balance, end of period Goodwill 483,258 249,601 49,229 335,776 1,117,864 Accumulated impairment losses — (49,600 ) (47,406 ) — (97,006 ) Goodwill, net of accumulated impairment losses at April 1, 2016 $ 483,258 $ 200,001 $ 1,823 $ 335,776 $ 1,020,858
Summary of Identifiable Intangible Assets	Identifiable intangible assets consisted of the following (in thousands): April 1, 2016 Gross Amount Accumulated Amortization Intangible Assets, Net Definite-lived intangible assets: Customer relationships $ 476,967 $ (333,105 ) $ 143,862 Patents and technology 446,907 (253,969 ) 192,938 Trademarks and trade names 29,784 (13,453 ) 16,331 Distributor contracts and relationships 4,793 (4,047 ) 746 Non-compete agreements 6,685 (6,010 ) 675 $ 965,136 $ (610,584 ) 354,552 Indefinite-lived intangible assets: Trademarks and trade names 375,386 Net identifiable intangible assets $ 729,938 December 31, 2015 Gross Carrying Amount Accumulated Amortization Intangible Assets, Net Definite-lived intangible assets: Customer relationships $ 475,776 $ (320,991 ) $ 154,785 Patents and technology 446,854 (246,509 ) 200,345 Trademarks and trade names 29,737 (12,695 ) 17,042 Distributor contracts and relationships 4,693 (3,875 ) 818 Non-compete agreements 6,607 (5,714 ) 893 $ 963,667 $ (589,784 ) $ 373,883 Indefinite-lived intangible assets: Trademarks and trade names 375,162 Net identifiable intangible assets $ 749,045
Schedule of Estimated Amortization Expense	Based on our amortizable intangible asset balance as of April 1, 2016, we estimate that amortization expense will be as follows for the next five years and thereafter (in thousands): 2016 $ 56,974 2017 66,153 2018 57,930 2019 53,046 2020 37,075 Thereafter 83,374 $ 354,552

OTHER CURRENT LIABILITIES (Tabl

OTHER CURRENT LIABILITIES (Tables)	3 Months Ended
	Apr. 01, 2016
Other Liabilities Disclosure [Abstract]
Schedule of Other Current Liabilities	Other current liabilities consist of the following (in thousands): April 1, 2016 December 31, 2015 Accrued wages and related expenses $ 25,272 $ 29,031 Accrued commissions 16,026 20,479 Accrued rebates 8,812 13,433 Accrued other taxes 2,981 4,196 Accrued professional expenses 4,604 3,164 Income taxes payable 1,409 1,612 Deferred tax liability 169 163 Other accrued liabilities 28,502 30,095 $ 87,775 $ 102,173

DERIVATIVE INSTRUMENTS (Tables)

DERIVATIVE INSTRUMENTS (Tables)	3 Months Ended
	Apr. 01, 2016
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Summary of Location and Fair Value of Derivative Instruments in Condensed Consolidated Balance Sheets	The following table summarizes the fair value of derivative instruments in our Unaudited Condensed Consolidated Balance Sheets (in thousands): Balance Sheet Location April 1, 2016 December 31, 2015 Derivative Assets: Interest rate cap agreements designated as cash flow hedges Other long-term assets $ — $ 1,313 Derivative Liabilities: Interest rate cap agreements designated as cash flow hedges Other current liabilities $ 692 $ 282 Interest rate cap agreements designated as cash flow hedges Other long-term liabilities 3,610 —
Summary of Effect of Derivative Instruments on Condensed Consolidated Statements of Operations	The following table summarizes the effect our derivative instruments have on our Unaudited Condensed Consolidated Statements of Operations (in thousands): Three Months Ended Location April 1, 2016 March 28, 2015 Interest rate cap agreements designated as cash flow hedges Interest expense, net $ 10 $ — Foreign exchange forward contracts not designated as hedges Other income, net $ — $ 4
Summary of Pre-tax Loss on Derivative Instruments Designated as Cash Flow Hedges Recognized in Other Comprehensive Income (Loss)	The pre-tax loss on derivative instruments designated as cash flow hedges recognized in other comprehensive income (loss) is presented below (in thousands): Three Months Ended April 1, 2016 March 28, 2015 Interest rate cap agreements designated as cash flow hedges $ (5,391 ) $ —

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Apr. 01, 2016
Fair Value Disclosures [Abstract]
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis	The following table presents the balances of financial assets and liabilities measured at fair value on a recurring basis (in thousands): As of April 1, 2016 Quoted Prices in Active Markets for Identical (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Recorded Balance Liabilities: Interest rate cap agreements designated as cash flow hedges $ — $ 4,302 $ — $ 4,302 As of December 31, 2015 Quoted Prices in Active Markets for Identical (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Recorded Balance Assets: Interest rate cap agreements designated as cash flow hedges $ — $ 1,313 $ — $ 1,313 Liabilities: Interest rate cap agreements designated as cash flow hedges $ — $ 282 $ — $ 282

DEBT (Tables)

DEBT (Tables)	3 Months Ended
	Apr. 01, 2016
Debt Disclosure [Abstract]
Schedule of Debt Obligations	Debt obligations consist of the following (in thousands): April 1, 2016 December 31, 2015 Credit facilities: Revolving credit facility, net of unamortized debt issuance costs of $2.0 million and $2.1 million as of and December 31, 2015, respectively $ 29,006 $ 27,886 Term loan: $1,047.1 million Term Loan, net of unamortized debt issuance costs and original issuance discount of $14.4 million and $15.3 million as of April 1, 2016 and December 31, 2015, respectively 1,032,644 1,037,117 Notes: $1,015.0 million 8.125% Second Lien notes, net of unamortized debt issuance costs and original issuance discount of $16.3 million and $16.9 million as of April 1, 2016 and December 31, 2015, respectively 998,745 998,137 $298.5 million 10.75% Third Lien notes, net of unamortized debt issuance costs and original issuance discount of $7.7 million and $8.1 million as of April 1, 2016 and December 31, 2015, respectively 290,805 290,443 $300.0 million 9.75% Senior subordinated notes 1,529 1,529 Total debt 2,352,729 2,355,112 Current maturities (10,550 ) (10,550 ) Long-term debt $ 2,342,179 $ 2,344,562

STOCK OPTION PLANS AND STOCK-33

STOCK OPTION PLANS AND STOCK-BASED COMPENSATION (Tables)	3 Months Ended
	Apr. 01, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Summary of Assumptions Used to Estimate Fair Value of Time-Based Options, Vested Options and Director Service Options of Stock Options Granted	The following table summarizes certain assumptions we used to estimate the fair value of the Time-Based Options, the Vested Options and the Director Service Options granted: Three Months Ended April 1, 2016 March 28, 2015 Expected volatility 33.3 % 33.3 % Risk-free interest rate 1.6 % 1.5%-2.0% Expected years until exercise 6.5 5.1-8.3 Expected dividend yield 0.0 % 0.0 %
Schedule of Recorded Non-cash Stock-based Compensation Expense	We recorded non-cash stock-based compensation expense during the periods presented as follows (in thousands): Three Months Ended April 1, 2016 March 28, 2015 Cost of sales $ 30 $ 30 Operating expenses: Selling, general and administrative 172 579 Research and development 3 4 $ 205 $ 613

SEGMENT AND GEOGRAPHIC INFORM34

SEGMENT AND GEOGRAPHIC INFORMATION (Tables)	3 Months Ended
	Apr. 01, 2016
Segment Reporting [Abstract]
Information Regarding Reportable Business Segments	Information regarding our reportable business segments is presented below (in thousands). Segment results exclude the impact of amortization and impairment of goodwill and intangible assets, certain general corporate expenses, and charges related to various integration activities, as defined by management. The accounting policies of the reportable segments are the same as the accounting policies of the Company. We allocate resources and evaluate the performance of segments based on net sales, gross profit, operating income and other non-GAAP measures, as defined in our Credit Facilities. We do not allocate assets to reportable segments because a significant portion of our assets are shared by the segments. Three Months Ended April 1, 2016 March 28, 2015 Net sales: Bracing and Vascular $ 124,216 $ 113,904 Recovery Sciences 36,575 34,525 Surgical Implant 43,050 26,926 International 75,065 72,156 $ 278,906 $ 247,511 Operating income: Bracing and Vascular $ 20,534 $ 20,896 Recovery Sciences 6,445 3,930 Surgical Implant 7,229 4,320 International 8,989 12,385 Expenses not allocated to segments and eliminations (33,735 ) (31,781 ) $ 9,462 $ 9,750
Net Sales by Geographic Area	Following are our net sales by geographic area (in thousands): Three Months Ended April 1, 2016 March 28, 2015 Net sales: United States $ 203,841 $ 175,355 Other Europe, Middle East and Africa 36,459 33,694 Germany 21,003 21,034 Australia and Asia Pacific 10,002 9,891 Canada 5,737 5,352 Latin America 1,864 2,185 $ 278,906 $ 247,511

SUPPLEMENTAL GUARANTOR CONDEN35

SUPPLEMENTAL GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables)	3 Months Ended
	Apr. 01, 2016
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Schedule of Condensed Consolidating Balance Sheets	The following tables present the financial position, results of operations and cash flows of DJOFL, the Guarantors, the Non-Guarantors and certain eliminations for the periods presented. DJO Finance LLC Unaudited Condensed Consolidating Balance Sheets As of April 1, 2016 (in thousands) DJOFL Guarantors Non- Guarantors Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 13,974 $ 1,321 $ 21,949 $ — $ 37,244 Accounts receivable, net — 124,797 47,595 — 172,392 Inventories, net — 138,641 51,830 (13,938 ) 176,533 Prepaid expenses and other current assets 10 16,919 8,329 — 25,258 Total current assets 13,984 281,678 129,703 (13,938 ) 411,427 Property and equipment, net — 112,088 13,878 (75 ) 125,891 Goodwill — 951,005 102,071 (32,218 ) 1,020,858 Intangible assets, net — 718,717 11,221 — 729,938 Investment in subsidiaries 1,297,699 1,687,724 52,749 (3,038,172 ) — Intercompany receivables 578,904 — — (578,904 ) — Other non-current assets — 1,315 4,156 — 5,471 Total assets $ 1,890,587 $ 3,752,527 $ 313,778 $ (3,663,307 ) $ 2,293,585 Liabilities and (Deficit) Equity Current liabilities: Accounts payable $ — $ 66,096 $ 10,200 $ — $ 76,296 Current portion of debt obligations 10,550 — — — 10,550 Other current liabilities 40,424 59,414 27,684 — 127,522 Current liabilities of discontinued operations 2,934 2,934 Total current liabilities 50,974 128,444 37,884 — 217,302 Long-term debt obligations 2,342,179 — — — 2,342,179 Deferred tax liabilities, net — 211,940 5,963 — 217,903 Intercompany payables, net — 378,776 146,914 (525,690 ) — Other long-term liabilities 3,610 15,157 675 — 19,442 Total liabilities 2,396,763 734,317 191,436 (525,690 ) 2,796,826 Noncontrolling interests — — 2,935 — 2,935 Total membership (deficit) equity (506,176 ) 3,018,210 119,407 (3,137,617 ) (506,176 ) Total liabilities and (deficit) equity $ 1,890,587 $ 3,752,527 $ 313,778 $ (3,663,307 ) $ 2,293,585 DJO Finance LLC Condensed Consolidating Balance Sheets As of December 31, 2015 (in thousands) DJOFL Guarantors Non- Guarantors Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 29,673 $ 160 $ 19,110 $ — $ 48,943 Accounts receivable, net — 128,085 44,275 — 172,360 Inventories, net — 142,033 31,803 737 174,573 Prepaid expenses and other current assets 42 13,301 7,836 — 21,179 Current assets of discontinued operations 2,878 - — 2,878 Total current assets 29,715 286,457 103,024 737 419,933 Property and equipment, net — 103,637 13,721 (85 ) 117,273 Goodwill — 951,005 98,309 (31,210 ) 1,018,104 Intangible assets, net — 737,798 11,247 — 749,045 Investment in subsidiaries 1,297,699 1,687,724 50,741 (3,036,164 ) — Intercompany receivables 575,483 — — (575,483 ) — Other non-current assets 1,313 1,193 2,668 — 5,174 Non current assets of discontinued operations — 29 - — 29 Total assets $ 1,904,210 $ 3,767,843 $ 279,710 $ (3,642,205 ) $ 2,309,558 Liabilities and (Deficit) Equity Current liabilities: Accounts payable $ — $ 49,394 $ 9,098 $ — $ 58,492 Current portion of debt obligations 10,550 — - — 10,550 Other current liabilities 17,268 73,260 28,643 — 119,171 Current liabilities of discontinued operations - 13,371 - — 13,371 Total current liabilities 27,818 136,025 37,741 — 201,584 Long-term debt obligations 2,344,562 — — — 2,344,562 Deferred tax liabilities, net — 209,179 4,677 — 213,856 Intercompany payables, net — 400,216 131,138 (531,354 ) — Other long-term liabilities — 14,441 651 — 15,092 Total liabilities 2,372,380 759,861 174,207 (531,354 ) 2,775,094 Noncontrolling interests — — 2,634 — 2,634 Total membership (deficit) equity (468,170 ) 3,007,982 102,869 (3,110,851 ) (468,170 ) Total liabilities and (deficit) equity $ 1,904,210 $ 3,767,843 $ 279,710 $ (3,642,205 ) $ 2,309,558
Schedule of Condensed Consolidating Statements of Operations	DJO Finance LLC Unaudited Condensed Consolidating Statements of Operations For the Three Months Ended April 1, 2016 (in thousands) DJOFL Guarantors Non- Guarantors Eliminations Consolidated Net sales $ — $ 243,660 $ 75,495 $ (40,249 ) $ 278,906 Costs and operating expenses: Cost of sales (exclusive of amortization of intangible assets of $7,407) — 94,841 64,394 (41,152 ) 118,083 Selling, general and administrative — 97,810 24,119 — 121,929 Research and development — 8,881 973 — 9,854 Amortization of intangible assets — 19,147 431 — 19,578 — 220,679 89,917 (41,152 ) 269,444 Operating income (loss) — 22,981 (14,422 ) 903 9,462 Other (expense) income: Interest (expense) income, net (42,283 ) 20 (7 ) — (42,270 ) Other (expense) income, net — (8,020 ) 8,304 — 284 Intercompany income (expense) , net — 363 118 (481 ) — Equity in income (loss) of subsidiaries, net 3,962 — — (3,962 ) — (38,321 ) (7,637 ) 8,415 (4,443 ) (41,986 ) (Loss) income before income taxes (38,321 ) 15,344 (6,007 ) (3,540 ) (32,524 ) Income tax provision — (4,407 ) (1,006 ) — (5,413 ) Net (loss) income from continuing operations (38,321 ) 10,937 (7,013 ) (3,540 ) (37,937 ) Net loss from discontinued operations (190 ) (190 ) Net (loss) income (38,321 ) 10,747 (7,013 ) (3,540 ) (38,127 ) Net income attributable to noncontrolling interests — — (193 ) — (193 ) Net (loss) income attributable to DJOFL $ (38,321 ) $ 10,747 $ (7,206 ) $ (3,540 ) $ (38,320 ) DJO Finance LLC Unaudited Condensed Consolidating Statements of Operations For the Three Months Ended March 28, 2015 (in thousands) DJOFL Guarantors Non - Guarantors Eliminations Consolidated Net sales $ — $ 218,392 $ 70,536 $ (41,417 ) $ 247,511 Costs and operating expenses: Cost of sales (exclusive of amortization of intangible assets of $7,535) — 90,921 53,334 (42,371 ) 101,884 Selling, general and administrative — 84,338 22,847 — 107,185 Research and development — 7,882 982 — 8,864 Amortization of intangible assets — 19,198 630 — 19,828 — 202,339 77,793 (42,371 ) 237,761 Operating income (loss) — 16,053 (7,257 ) 954 9,750 Other (expense) income: Interest (expense) income, net (42,871 ) 12 (7 ) — (42,866 ) Other expense, net — (525 ) (3,631 ) - (4,156 ) Intercompany income (expense), net - 319 25 (344 ) - Equity in income of subsidiaries, net 7,344 - — (7,344 ) - (35,527 ) (194 ) (3,613 ) (7,688 ) (47,022 ) (Loss) income before income taxes (35,527 ) 15,859 (10,870 ) (6,734 ) (37,272 ) Income tax provision — (1,603 ) (342 ) — (1,945 ) Net (loss) income from continuing operations (35,527 ) 14,256 (11,212 ) (6,734 ) (39,217 ) Net income from discontinued operations — 3,992 — — 3,992 Net loss (income) (35,527 ) 18,248 (11,212 ) (6,734 ) (35,225 ) Net income attributable to noncontrolling interests — — (301 ) — (301 ) Net (loss) income attributable to DJOFL $ (35,527 ) $ 18,248 $ (11,513 ) $ (6,734 ) $ (35,526 )
Schedule of Condensed Consolidating Statements of Comprehensive Loss	DJO Finance LLC Unaudited Condensed Consolidating Statements of Comprehensive Loss For the Three Months Ended April 1, 2016 (in thousands) DJOFL Guarantors Non- Guarantors Eliminations Consolidated Net (loss) income $ (38,321 ) $ 10,747 $ (7,013 ) $ (3,540 ) $ (38,127 ) Other comprehensive loss, net of taxes: Foreign currency translation adjustments, net of tax provision of $277 — — 5,608 — 5,608 Unrealized loss on cash flow hedges, net of tax provision of zero (5,391 ) — — — (5,391 ) Other comprehensive (loss) income (5,391 ) — 5,608 — 217 Comprehensive (loss) income (43,712 ) 10,747 (1,513 ) (3,540 ) (37,910 ) Comprehensive income attributable to noncontrolling interests — — (301 ) — (301 ) Comprehensive (loss) income attributable to DJO Finance LLC $ (43,712 ) $ 10,747 $ (1,814 ) $ (3,540 ) $ (38,211 ) DJO Finance LLC Unaudited Condensed Consolidating Statements of Comprehensive Loss For the Three Months Ended March 28, 2015 (in thousands) DJOFL Guarantors Non - Guarantors Eliminations Consolidated Net (loss) income $ (35,527 ) $ 18,248 $ (11,212 ) $ (6,734 ) $ (35,225 ) Other comprehensive loss, net of taxes: Foreign currency translation adjustments, net of tax benefit of $492 — — (9,442 ) — (9,442 ) Other comprehensive loss — — (9,442 ) — (9,442 ) Comprehensive (loss) income (35,527 ) 18,248 (20,654 ) (6,734 ) (44,667 ) Comprehensive income attributable to noncontrolling interests — — (17 ) — (17 ) Comprehensive (loss) income attributable to DJO Finance LLC $ (35,527 ) $ 18,248 $ (20,671 ) $ (6,734 ) $ (44,684 )
Schedule of Condensed Consolidating Statements of Cash Flows	DJO Finance LLC Unaudited Condensed Consolidating Statements of Cash Flows For the Three months Ended April 1, 2016 (in thousands) DJOFL Guarantors Non- Guarantors Eliminations Consolidated Cash Flows From Operating Activities: Net (loss) income $ (38,321 ) $ 10,747 $ (7,013 ) $ (3,540 ) $ (38,127 ) Net loss from discontinued operations 190 $ 190 Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: Depreciation — 9,123 1,214 (13 ) 10,324 Amortization of intangible assets — 19,147 431 — 19,578 Amortization of debt issuance costs and non-cash interest expense 1,892 — — — 1,892 Stock-based compensation expense — 205 — — 205 Loss (gain) on disposal of assets, net — 17 75 (1 ) 91 Deferred income tax expense (benefit) — 2,917 (265 ) — 2,652 Equity in (loss) income of subsidiaries, net (3,962 ) — — 3,962 — Changes in operating assets and liabilities, net of acquired assets and liabilities: Accounts receivable — 3,287 (1,881 ) — 1,406 Inventories — 4,066 (1,275 ) (1,214 ) 1,577 Prepaid expenses and other assets 1,345 (4,351 ) (1,055 ) 765 (3,296 ) Accounts payable and other current liabilities 21,377 (3,457 ) (1,636 ) (899 ) 15,385 Net cash (used in) provided by continuing operating activities (17,669 ) 41,891 (11,405 ) (940 ) 11,877 Net cash (used in) discontinued operations - (7,720 ) — - (7,720 ) Net cash (used in) provided by operating activities (17,669 ) 34,171 (11,405 ) (940 ) 4,157 Cash Flows From Investing Activities: Purchases of property and equipment — (10,939 ) (1,081 ) (1 ) (12,021 ) Net cash used in investing activities from continuing operations — (10,939 ) (1,081 ) (1 ) (12,021 ) Net cash provided by investing activities from discontinued operations — — — — — Net cash used in investing activities — (10,939 ) (1,081 ) (1 ) (12,021 ) Cash Flows From Financing Activities: Intercompany 6,245 (22,071 ) 14,885 941 — Proceeds from issuance of debt 6,000 — — — 6,000 Repayments of debt obligations (10,275 ) — — — (10,275 ) Net cash provided by (used in) financing activities 1,970 (22,071 ) 14,885 941 (4,275 ) Effect of exchange rate changes on cash and cash equivalents — — 440 — 440 Net (decrease) increase in cash and cash equivalents (15,699 ) 1,161 2,839 — (11,699 ) Cash and cash equivalents, beginning of year 29,673 160 19,110 — 48,943 Cash and cash equivalents, end of year $ 13,974 $ 1,321 $ 21,949 $ - $ 37,244 DJO Finance LLC Unaudited Condensed Consolidating Statements of Cash Flows For the Three months Ended March 28, 2015 (in thousands) DJOFL Guarantors Non - Guarantors Eliminations Consolidated Cash Flows from Operating Activities: Net (loss) income $ (35,527 ) $ 18,248 $ (11,212 ) $ (6,734 ) $ (35,225 ) Net income from discontinued operations — (3,992 ) — — (3,992 ) Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: Depreciation — 7,038 1,202 (26 ) 8,214 Amortization of intangible assets — 19,198 630 — 19,828 Amortization of debt issuance costs and non-cash interest expense 2,288 — — — 2,288 Stock-based compensation expense — 613 — — 613 Gain on disposal of assets, net — 40 34 — 74 Deferred income tax expense (benefit) — 7,631 (340 ) - 7,291 Equity in (loss) income of subsidiaries, net (7,344 ) — — 7,344 — Changes in operating assets and liabilities: Accounts receivable — 4,992 (1,968 ) — 3,024 Inventories — (19 ) (5,291 ) (2,788 ) (8,098 ) Prepaid expenses and other assets 44 2,325 265 193 2,827 Accounts payable and other current liabilities 25,950 (14,158 ) (4,100 ) 4,615 12,307 Net cash (used in) provided by continuing operating activities (14,589 ) 41,916 (20,780 ) 2,604 9,151 Net cash provided by discontinued operations — 5,991 — — 5,991 Net cash (used in) provided by operating activities (14,589 ) 47,907 (20,780 ) 2,604 15,142 Cash Flows from Investing Activities: Purchases of property and equipment — (4,715 ) (1,505 ) 3 (6,217 ) Net cash (used in) provided by investing activities from continuing operations — (4,715 ) (1,505 ) 3 (6,217 ) Net cash provided by investing activities from discontinued operations — — — — — Net cash (used in) provided by investing activities — (4,715 ) (1,505 ) 3 (6,217 ) Cash Flows from Financing Activities: Intercompany 33,363 (49,366 ) 18,610 (2,607 ) — Proceeds from issuance of debt 17,000 — — — 17,000 Repayments of debt (20,000 ) — (19 ) — (20,019 ) Net cash provided by (used in) financing activities 30,363 (49,366 ) 18,591 (2,607 ) (3,019 ) Effect of exchange rate changes on cash and cash equivalents — — (1,362 ) — (1,362 ) Net increase (decrease) in cash and cash equivalents 15,774 (6,174 ) (5,056 ) — 4,544 Cash and cash equivalents at beginning of period 12,958 3 18,183 — 31,144 Cash and cash equivalents at end of period $ 28,732 $ (6,171 ) $ 13,127 $ — $ 35,688

Organization and Basis of Pre36

Organization and Basis of Presentation - Additional Information (Detail) - Segment	3 Months Ended
	Apr. 01, 2016	Mar. 28, 2015
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Number of operating segments	4	4
Percentage of ownership interest in subsidiary Medireha GmbH	50.00%

Divestitures - Schedule of Disc

Divestitures - Schedule of Discontinued Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2016	Mar. 28, 2015	Dec. 31, 2015
Costs and operating expenses:
Net (loss) income from discontinued operations	$ (190)	$ 3,992
Empi
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Net sales		32,590
Costs and operating expenses:
Cost of sales		7,358
Selling, general and administrative		12,587
Research and development		36
Amortization of intangible assets		2,282
Other (loss) income	(190)	50
(Loss) income from discontinued operations before income taxes	(190)	10,377
Income tax provision		(6,385)
Net (loss) income from discontinued operations	(190)	$ 3,992
Accounts receivable, net			$ 2,743
Other current assets			135
Property and equipment, net			22
Intangible and other non-current assets			7
Total assets			2,907
Accounts payable and other liabilities	2,934		13,371
Net liabilities	$ (2,934)		$ (10,464)

Summary of Activity in Accounts

Summary of Activity in Accounts Receivable Reserves for Doubtful Accounts and Sales Returns (Detail) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2016	Mar. 28, 2015
Receivables [Abstract]
Balance, beginning of period	$ 32,893	$ 23,585
Provision for doubtful accounts	5,036	5,711
Write-offs, net of recoveries	(4,562)	(1,875)
Balance, end of period	$ 33,367	$ 27,421

Accounts Receivable Reserves -

Accounts Receivable Reserves - Additional Information (Detail) - USD ($) $ in Millions	Apr. 01, 2016	Mar. 28, 2015
Receivables [Abstract]
Provision for sales returns	$ 3	$ 3.6

Summary of Inventories (Detail)

Summary of Inventories (Detail) - USD ($) $ in Thousands	Apr. 01, 2016	Dec. 31, 2015	Mar. 28, 2015	Dec. 31, 2014
Inventory Disclosure [Abstract]
Components and raw materials	$ 58,114	$ 57,372
Work in process	10,349	10,330
Finished goods	99,291	99,167
Inventory held on consignment	30,909	29,746
Inventory, Gross, Total	198,663	196,615
Inventory reserves	(22,130)	(22,042)	$ (22,793)	$ (22,094)
Inventories, net	$ 176,533	$ 174,573

Summary of Activity in Inventor

Summary of Activity in Inventory Reserves (Detail) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2016	Mar. 28, 2015
Inventory Disclosure [Abstract]
Balance, beginning of period	$ 22,042	$ 22,094
Provision charged to costs of sales	1,446	1,825
Write-offs, net of recoveries	(1,358)	(1,126)
Balance, end of period	$ 22,130	$ 22,793

Schedule of Changes in Carrying

Schedule of Changes in Carrying Amount of Goodwill (Detail) $ in Thousands	3 Months Ended
	Apr. 01, 2016USD ($)
Goodwill [Line Items]
Goodwill, balance, beginning of period	$ 1,115,110
Accumulated impairment losses, balance, beginning of period	(97,006)
Goodwill, net of accumulated impairment losses, beginning of period	1,018,104
Foreign currency translation	2,754
Goodwill, balance, end of period	1,117,864
Accumulated impairment losses, balance, end of period	(97,006)
Goodwill, net of accumulated impairment losses, end of period	1,020,858
Bracing and Vascular
Goodwill [Line Items]
Goodwill, balance, beginning of period	483,258
Goodwill, net of accumulated impairment losses, beginning of period	483,258
Goodwill, balance, end of period	483,258
Goodwill, net of accumulated impairment losses, end of period	483,258
Recovery Sciences
Goodwill [Line Items]
Goodwill, balance, beginning of period	249,601
Accumulated impairment losses, balance, beginning of period	(49,600)
Goodwill, net of accumulated impairment losses, beginning of period	200,001
Goodwill, balance, end of period	249,601
Accumulated impairment losses, balance, end of period	(49,600)
Goodwill, net of accumulated impairment losses, end of period	200,001
Surgical Implant
Goodwill [Line Items]
Goodwill, balance, beginning of period	49,229
Accumulated impairment losses, balance, beginning of period	(47,406)
Goodwill, net of accumulated impairment losses, beginning of period	1,823
Goodwill, balance, end of period	49,229
Accumulated impairment losses, balance, end of period	(47,406)
Goodwill, net of accumulated impairment losses, end of period	1,823
International
Goodwill [Line Items]
Goodwill, balance, beginning of period	333,022
Goodwill, net of accumulated impairment losses, beginning of period	333,022
Foreign currency translation	2,754
Goodwill, balance, end of period	335,776
Goodwill, net of accumulated impairment losses, end of period	$ 335,776

Summary of Identifiable Intangi

Summary of Identifiable Intangible Assets (Detail) - USD ($) $ in Thousands	Apr. 01, 2016	Dec. 31, 2015
Finite Lived Intangible Assets [Line Items]
Finite lived, gross carrying amount	$ 965,136	$ 963,667
Finite lived, accumulated amortization	(610,584)	(589,784)
Finite lived, intangible assets, net	354,552	373,883
Intangible assets, net	729,938	749,045
Customer Relationships
Finite Lived Intangible Assets [Line Items]
Finite lived, gross carrying amount	476,967	475,776
Finite lived, accumulated amortization	(333,105)	(320,991)
Finite lived, intangible assets, net	143,862	154,785
Patents and Technology
Finite Lived Intangible Assets [Line Items]
Finite lived, gross carrying amount	446,907	446,854
Finite lived, accumulated amortization	(253,969)	(246,509)
Finite lived, intangible assets, net	192,938	200,345
Trademarks and Trade Names
Finite Lived Intangible Assets [Line Items]
Finite lived, gross carrying amount	29,784	29,737
Finite lived, accumulated amortization	(13,453)	(12,695)
Finite lived, intangible assets, net	16,331	17,042
Indefinite lived intangible assets	375,386	375,162
Distributor Contracts And Relationships
Finite Lived Intangible Assets [Line Items]
Finite lived, gross carrying amount	4,793	4,693
Finite lived, accumulated amortization	(4,047)	(3,875)
Finite lived, intangible assets, net	746	818
Non-compete
Finite Lived Intangible Assets [Line Items]
Finite lived, gross carrying amount	6,685	6,607
Finite lived, accumulated amortization	(6,010)	(5,714)
Finite lived, intangible assets, net	$ 675	$ 893

Long Lived Assets - Additional

Long Lived Assets - Additional Information (Detail)	3 Months Ended
	Apr. 01, 2016
Customer Relationships
Acquired Finite Lived Intangible Assets [Line Items]
Definite-lived intangible assets, weighted average useful lives	4 years 4 months 24 days
Patents and Technology
Acquired Finite Lived Intangible Assets [Line Items]
Definite-lived intangible assets, weighted average useful lives	7 years 7 months 6 days
Distributor Contracts And Relationships
Acquired Finite Lived Intangible Assets [Line Items]
Definite-lived intangible assets, weighted average useful lives	1 year 7 months 6 days
Trademarks and Trade Names
Acquired Finite Lived Intangible Assets [Line Items]
Definite-lived intangible assets, weighted average useful lives	6 years 6 months
Non-compete
Acquired Finite Lived Intangible Assets [Line Items]
Definite-lived intangible assets, weighted average useful lives	1 year 8 months 12 days

Schedule of Estimated Amortizat

Schedule of Estimated Amortization Expense (Detail) - USD ($) $ in Thousands	Apr. 01, 2016	Dec. 31, 2015
Goodwill And Intangible Assets Disclosure [Abstract]
2,016	$ 56,974
2,017	66,153
2,018	57,930
2,019	53,046
2,020	37,075
Thereafter	83,374
Finite lived, intangible assets, net	$ 354,552	$ 373,883

Schedule of Other Current Liabi

Schedule of Other Current Liabilities (Detail) - USD ($) $ in Thousands	Apr. 01, 2016	Dec. 31, 2015
Other Liabilities Disclosure [Abstract]
Accrued wages and related expenses	$ 25,272	$ 29,031
Accrued commissions	16,026	20,479
Accrued rebates	8,812	13,433
Accrued other taxes	2,981	4,196
Accrued professional expenses	4,604	3,164
Income taxes payable	1,409	1,612
Deferred tax liability	169	163
Other accrued liabilities	28,502	30,095
Other current liabilities	$ 87,775	$ 102,173

Summary of Location and Fair Va

Summary of Location and Fair Value of Derivative Instruments in Condensed Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands	Apr. 01, 2016	Dec. 31, 2015
Derivatives, Fair Value [Line Items]
Derivative Assets		$ 1,313
Derivative Liabilities	$ 4,302	282
Designated as Hedging Instrument | Interest Rate Cap | Other Long Term Assets
Derivatives, Fair Value [Line Items]
Derivative Assets		1,313
Designated as Hedging Instrument | Interest Rate Cap | Other Current Liabilities
Derivatives, Fair Value [Line Items]
Derivative Liabilities	692	$ 282
Designated as Hedging Instrument | Interest Rate Cap | Other Long-Term Liabilities
Derivatives, Fair Value [Line Items]
Derivative Liabilities	$ 3,610

Summary of Effect of Derivative

Summary of Effect of Derivative Instruments on Condensed Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2016	Mar. 28, 2015
Interest Rate Cap | Interest Expense, net | Designated as Hedging Instrument | Cash Flow Hedge
Derivative Instruments, Gain (Loss) [Line Items]
Effect of derivative instruments	$ 10
Foreign Exchange Forward | Other income (expense), net | Not Designated as Hedging Instrument
Derivative Instruments, Gain (Loss) [Line Items]
Effect of derivative instruments		$ 4

Summary of Pre-Tax Loss On Deri

Summary of Pre-Tax Loss On Derivative Instruments Designated As Cash Flow Hedges In Other Comprehensive Income (Loss) (Details) $ in Thousands	3 Months Ended
	Apr. 01, 2016USD ($)
Designated as Hedging Instrument | Interest Rate Cap | Cash Flow Hedge
Derivative Instruments, Gain (Loss) [Line Items]
Pre-tax loss on derivative instruments	$ (5,391)

Schedule of Assets and Liabilit

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Apr. 01, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate cap agreements designated as cash flow hedges, liabilities	$ 4,302	$ 282
Interest rate cap agreements designated as cash flow hedges, assets		1,313
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate cap agreements designated as cash flow hedges, liabilities	$ 4,302	282
Interest rate cap agreements designated as cash flow hedges, assets		$ 1,313

Schedule of Debt Obligations (D

Schedule of Debt Obligations (Detail) - USD ($) $ in Thousands	Apr. 01, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Debt	$ 2,352,729	$ 2,355,112
Current maturities	(10,550)	(10,550)
Long-term debt	2,342,179	2,344,562
Credit Facilities | Revolving Credit Facility
Debt Instrument [Line Items]
Debt	29,006	27,886
Term Loan
Debt Instrument [Line Items]
Debt	1,032,644	1,037,117
8.125% Second Lien Notes
Debt Instrument [Line Items]
Debt	998,745	998,137
10.75% Third Lien Notes
Debt Instrument [Line Items]
Debt	290,805	290,443
9.75% Senior Subordinated notes
Debt Instrument [Line Items]
Debt	$ 1,529	$ 1,529

Schedule of Debt Obligations (P

Schedule of Debt Obligations (Parenthetical) (Detail) - USD ($) $ in Millions	Apr. 01, 2016	Dec. 31, 2015	May. 13, 2015	May. 07, 2015	Oct. 18, 2010
Debt Instrument [Line Items]
Unamortized debt issuance costs	$ 13.8	$ 14.5
Credit Facilities | Revolving Credit Facility
Debt Instrument [Line Items]
Unamortized debt issuance costs	2	2.1
Term Loan
Debt Instrument [Line Items]
Debt instrument, face amount	1,047.1			$ 1,055
Unamortized debt issuance costs and original issue discount	14.4	15.3
8.125% Second Lien Notes
Debt Instrument [Line Items]
Debt instrument, face amount	1,015			$ 1,015
Unamortized debt issuance costs and original issue discount	$ 16.3	16.9
Debt instrument, stated percentage rate	8.125%			8.125%
10.75% Third Lien Notes
Debt Instrument [Line Items]
Debt instrument, face amount	$ 298.5			$ 298.5
Unamortized debt issuance costs and original issue discount	$ 7.7	$ 8.1
Debt instrument, stated percentage rate	10.75%			10.75%
9.75% Senior Subordinated notes
Debt Instrument [Line Items]
Debt instrument, face amount	$ 300		$ 298.5		$ 300
Debt instrument, stated percentage rate	9.75%

Debt - Additional Information (

Debt - Additional Information (Detail) - USD ($)	3 Months Ended
	Apr. 01, 2016	Sep. 30, 2015	May. 07, 2015
Debt Instrument [Line Items]
Leverage ratio of consolidated senior secured first lien to adjusted EBITDA		535.00%
Debt instrument, minimum fixed charge coverage ratio	100.00%
Revolving Credit Facility
Debt Instrument [Line Items]
Revolving credit percentage of maximum availability	10.00%
Cash collection, number of business days	30 days
Revolving Credit Facility | Greater Than 50% of Utilization Credit Facility
Debt Instrument [Line Items]
Commitment Fees Rate	0.25%
Revolving Credit Facility | Less Than 50% of Utilization Credit Facility
Debt Instrument [Line Items]
Commitment Fees Rate	0.375%
Minimum
Debt Instrument [Line Items]
Unutilized revolving credit facility	$ 9,000,000
Term Loan
Debt Instrument [Line Items]
Debt instrument, face amount	1,047,100,000		$ 1,055,000,000
Loan increment			150,000,000
Debt instrument, market value	$ 1,047,100,000
Percentage of annual payments quarterly installments	0.25%
Percentage of prepay outstanding term loans of annual excess cash flow	50.00%
Percentage of prepay outstanding term loans of non-ordinary course asset sales	100.00%
Proceeds from single or series of transaction	$ 30,000,000
Annual amount from non-ordinary course asset sales	$ 100,000,000
Percentage of cash proceeds from issuance of debt	100.00%
Term loan prepayment premium	1.00%
Leverage ratio of consolidated senior secured first lien to adjusted EBITDA	416.00%
Term Loan | Minimum
Debt Instrument [Line Items]
Revolving Credit Facility, percentage points added to the reference rate	1.00%
Percentage of prepay outstanding term loans of annual excess cash flow	25.00%
Term Loan | Maximum
Debt Instrument [Line Items]
Percentage of prepay outstanding term loans of annual excess cash flow	0.00%
Term Loan | Base Rate Borrowings
Debt Instrument [Line Items]
Revolving Credit Facility, percentage points added to the reference rate	2.25%
Term Loan | Federal Funds Rate Plus
Debt Instrument [Line Items]
Revolving Credit Facility, percentage points added to the reference rate	0.50%
Term Loan | One Month Eurodollar Rate
Debt Instrument [Line Items]
Revolving Credit Facility, percentage points added to the reference rate	1.00%
Term Loan | Eurodollar Rate Plus
Debt Instrument [Line Items]
Revolving Credit Facility, percentage points added to the reference rate	3.25%
ABL Facility
Debt Instrument [Line Items]
Credit Facility, face amount			150,000,000
Credit Facility, increment			$ 50,000,000
Debt instrument, market value	$ 31,000,000
ABL Facility | Base Rate Borrowings
Debt Instrument [Line Items]
Revolving Credit Facility, percentage points added to the reference rate	1.25%
ABL Facility | Federal Funds Rate Plus
Debt Instrument [Line Items]
Revolving Credit Facility, percentage points added to the reference rate	0.50%
ABL Facility | One Month Eurodollar Rate
Debt Instrument [Line Items]
Revolving Credit Facility, percentage points added to the reference rate	1.00%
ABL Facility | Eurodollar Rate Plus
Debt Instrument [Line Items]
Revolving Credit Facility, percentage points added to the reference rate	2.25%
Senior Secured Credit Facility
Debt Instrument [Line Items]
Weighted Average Interest Rate	4.19%

Debt (Senior Notes, Debt Issuan

Debt (Senior Notes, Debt Issuance Costs and Loss on Modification and Extinguishment of Debt) - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2016	Mar. 28, 2015	Dec. 31, 2015	May. 13, 2015	May. 07, 2015	Oct. 18, 2010
Debt Instrument [Line Items]
Debt	$ 2,352,729		$ 2,355,112
Unamortized debt issuance costs	13,800		14,500
Amortization of debt issuance costs	700	$ 2,100
8.125% Second Lien Notes
Debt Instrument [Line Items]
Debt instrument, face amount	$ 1,015,000				$ 1,015,000
Debt instrument, stated percentage rate	8.125%				8.125%
Debt instrument maturity date	Jun. 15, 2021
Debt	$ 998,745		998,137
Repurchase price percentage	101.00%
8.125% Second Lien Notes | Prior to June 15, 2018 - Option One
Debt Instrument [Line Items]
Redemption price	100.00%
8.125% Second Lien Notes | prior to June 15, 2019
Debt Instrument [Line Items]
Redemption price	103.00%
Percentage of debt redeemed	15.00%
8.125% Second Lien Notes | Prior to June 15, 2018 - Option Two
Debt Instrument [Line Items]
Redemption price	108.125%
Percentage of aggregate principal amount of notes to be outstanding	35.00%
8.125% Second Lien Notes | Significant Other Observable Inputs (Level 2)
Debt Instrument [Line Items]
Debt instrument, stated percentage rate	8.125%
Debt instrument, market value	$ 903,400
8.125% Second Lien Notes | First Lien Credit Facilities
Debt Instrument [Line Items]
Debt instrument, stated percentage rate	8.125%
10.75% Third Lien Notes
Debt Instrument [Line Items]
Debt instrument, face amount	$ 298,500				$ 298,500
Debt instrument, stated percentage rate	10.75%				10.75%
Debt instrument maturity date	Apr. 15, 2020
Debt	$ 290,805		290,443
Repurchase price percentage	101.00%
10.75% Third Lien Notes | Significant Other Observable Inputs (Level 2)
Debt Instrument [Line Items]
Debt instrument, stated percentage rate	10.75%
Debt instrument, market value	$ 244,700
9.75% Senior Subordinated notes
Debt Instrument [Line Items]
Debt instrument, face amount	$ 300,000			$ 298,500		$ 300,000
Debt instrument, stated percentage rate	9.75%
Debt instrument maturity date	Oct. 15, 2017
Debt	$ 1,529		$ 1,529
9.75% Senior Subordinated notes | Optional Redemption On October 15, 2015
Debt Instrument [Line Items]
Redemption price	102.438%
9.75% Senior Subordinated notes | Optional Redemption On October 15, 2016
Debt Instrument [Line Items]
Redemption price	100.00%

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2016	Mar. 28, 2015	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Income tax provision	$ (5,413)	$ (1,945)
(Loss) income before income taxes	$ (32,524)	$ (37,272)
Effective tax rate	16.60%	5.20%
Valuation allowance, deferred tax assets	$ 14,700
Gross unrecognized tax benefits	16,000		$ 14,900
Change in unrecognized tax benefits	1,100
Accrued interest and penalties	3,000
Expected decrease in unrecognized tax benefits	900
Unrecognized tax benefits resulting from foreign and U.S. state tax positions	$ 6,200

Stock Option Plans and Stock-56

Stock Option Plans and Stock-Based Compensation - Additional Information (Detail) - $ / shares	1 Months Ended		3 Months Ended		12 Months Ended
	Sep. 30, 2015	Feb. 28, 2013	Apr. 01, 2016	Mar. 28, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available to grant			10,575,529
Share based compensation shares authorized under stock option plans description			If Blackstone sells all or a portion of its equity interests in DJO while the options are outstanding, then the unvested Market Return Options will vest and become exercisable as follows: 1) 25% of the options will vest and become exercisable if Blackstone realizes a MOIC of 1.5 times its equity investment in DJO; 2) 100% of the options will vest and become exercisable if Blackstone realizes a MOIC of at least 2.25 times its equity investment in DJO; and 3) if Blackstone realizes a MOIC of greater than 1.5 times its equity investment but less than 2.25 times its equity investment, then 25% of the options will vest and become exercisable and a percentage of the remaining unvested options will vest and become exercisable with such percentage equal to a fraction, the numerator of which is the actual MOIC realized by Blackstone, less 1.5 and the denominator of which is 0.75.
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted stock options modified		310,000
Granted stock options			438,000	261,121
2013 Vested Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted shares expiration period						10 years
2014 Vested Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted shares expiration period					10 years
Market Return Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted stock options			377,832
Time-Based Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted stock options			60,168	24,166
Option granted, weighted average grant date fair value			$ 5.99	$ 6.07
Director Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted stock options			13,800	23,000
Option granted, weighted average grant date fair value			$ 5.99	$ 6.92
Performance Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted stock options				215,834
Twenty Fifteen Vested Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted stock options				21,121
Option granted, weighted average grant date fair value				$ 5.27
Share Based Compensation Award Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option vest	33.33%		33.33%				33.33%
Share Based Compensation Award Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option vest	66.67%		33.33%				66.67%
Share Based Compensation Award Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option vest			33.33%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price as a percentage of the fair market value of underlying shares on the date of grant			100.00%
Money on invested capital multiple	225.00%						150.00%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted shares expiration period			10 years
Money on invested capital multiple	250.00%						225.00%

Summary of Assumptions Used to

Summary of Assumptions Used to Estimate Fair Value of Time-Based Options, Vested Options and Director Service Options of Stock Options Granted (Detail)	3 Months Ended
	Apr. 01, 2016	Mar. 28, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	33.30%	33.30%
Risk-free interest rate	1.60%
Risk-free interest rate, minimum		1.50%
Risk-free interest rate, maximum		2.00%
Expected years until exercise	6 years 6 months
Expected dividend yield	0.00%	0.00%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected years until exercise		5 years 1 month 6 days
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected years until exercise		8 years 3 months 18 days

Schedule of Recorded Non-cash S

Schedule of Recorded Non-cash Stock-based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2016	Mar. 28, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Non-cash stock-based compensation expense	$ 205	$ 613
Cost of Sales
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Non-cash stock-based compensation expense	30	30
Selling, General and Administrative Expenses
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Non-cash stock-based compensation expense	172	579
Research and Development Expense
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Non-cash stock-based compensation expense	$ 3	$ 4

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Detail) - Blackstone Management Partners LLC $ in Thousands	3 Months Ended
	Apr. 01, 2016USD ($)
Related Party Transaction [Line Items]
Maximum annual monitoring fee under advisory and consulting services	$ 7,000
Annual monitoring fee maximum under advisory and consulting services, percentage	2.00%
Annual monitoring fee recorded as component of selling, general and administrative expense	$ 1,750

Commitments And Contingencies -

Commitments And Contingencies - Additional Information (Detail)	3 Months Ended
	Apr. 01, 2016LegalMatterPlaintiff
Commitments and Contingencies Disclosure [Line Items]
Number of pending cases | LegalMatter	1
Canada
Commitments and Contingencies Disclosure [Line Items]
Number of plaintiffs | Plaintiff	45

Segment and Geographic Inform61

Segment and Geographic Information - Additional Information (Detail) - Segment	3 Months Ended
	Apr. 01, 2016	Mar. 28, 2015
Segment Reporting [Abstract]
Number of operating segments	4	4

Information Regarding Reportabl

Information Regarding Reportable Business Segments (Detail) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2016	Mar. 28, 2015
Net sales:
Net sales	$ 278,906	$ 247,511
Operating income:
Operating income	9,462	9,750
Operating Segments | Bracing and Vascular
Net sales:
Net sales	124,216	113,904
Operating income:
Operating income	20,534	20,896
Operating Segments | Recovery Sciences
Net sales:
Net sales	36,575	34,525
Operating income:
Operating income	6,445	3,930
Operating Segments | Surgical Implant
Net sales:
Net sales	43,050	26,926
Operating income:
Operating income	7,229	4,320
Operating Segments | International
Net sales:
Net sales	75,065	72,156
Operating income:
Operating income	8,989	12,385
Expenses not allocated to segments and eliminations
Operating income:
Operating income	$ (33,735)	$ (31,781)

Net Sales by Geographic Area (D

Net Sales by Geographic Area (Detail) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2016	Mar. 28, 2015
Net sales:
Sales revenue goods net	$ 278,906	$ 247,511
United States
Net sales:
Sales revenue goods net	203,841	175,355
Other Europe, Middle East, and Africa
Net sales:
Sales revenue goods net	36,459	33,694
Germany
Net sales:
Sales revenue goods net	21,003	21,034
Australia And Asia Pacific
Net sales:
Sales revenue goods net	10,002	9,891
Canada
Net sales:
Sales revenue goods net	5,737	5,352
Latin America
Net sales:
Sales revenue goods net	$ 1,864	$ 2,185

Supplemental Guarantor Conden64

Supplemental Guarantor Condensed Consolidating Financial Statements - Additional Information (Detail) - DJO Finco	Apr. 01, 2016
Debt Instrument [Line Items]
Subsidiaries owned	100.00%
8.125% Second Lien Notes
Debt Instrument [Line Items]
Debt instrument, stated percentage rate	8.125%
10.75% Third Lien Notes
Debt Instrument [Line Items]
Debt instrument, stated percentage rate	10.75%
9.75% Senior subordinated Notes
Debt Instrument [Line Items]
Debt instrument, stated percentage rate	9.75%

Schedule of Condensed Consolida

Schedule of Condensed Consolidating Balance Sheets (Detail) - USD ($) $ in Thousands	Apr. 01, 2016	Dec. 31, 2015	Mar. 28, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 37,244	$ 48,943	$ 35,688	$ 31,144
Accounts receivable, net	172,392	172,360
Inventories, net	176,533	174,573
Prepaid expenses and other current assets	25,258	21,179
Current assets of discontinued operations		2,878
Total current assets	411,427	419,933
Property and equipment, net	125,891	117,273
Goodwill	1,020,858	1,018,104
Intangible assets, net	729,938	749,045
Other non-current assets	5,471	5,174
Non current assets of discontinued operations		29
Total assets	2,293,585	2,309,558
Current liabilities:
Accounts payable	76,296	58,492
Current portion of debt obligations	10,550	10,550
Other current liabilities	127,522	119,171
Current liabilities of discontinued operations	2,934	13,371
Total current liabilities	217,302	201,584
Long-term debt obligations	2,342,179	2,344,562
Deferred tax liabilities, net	217,903	213,856
Other long-term liabilities	19,442	15,092
Total liabilities	2,796,826	2,775,094
Noncontrolling interests	2,935	2,634
Total membership (deficit) equity	(506,176)	(468,170)
Total liabilities and deficit	2,293,585	2,309,558
Reportable Legal Entities | DJOFL
Current assets:
Cash and cash equivalents	13,974	29,673	28,732	12,958
Prepaid expenses and other current assets	10	42
Total current assets	13,984	29,715
Investment in subsidiaries	1,297,699	1,297,699
Intercompany receivables	578,904	575,483
Other non-current assets		1,313
Total assets	1,890,587	1,904,210
Current liabilities:
Current portion of debt obligations	10,550	10,550
Other current liabilities	40,424	17,268
Total current liabilities	50,974	27,818
Long-term debt obligations	2,342,179	2,344,562
Other long-term liabilities	3,610
Total liabilities	2,396,763	2,372,380
Total membership (deficit) equity	(506,176)	(468,170)
Total liabilities and deficit	1,890,587	1,904,210
Reportable Legal Entities | Guarantors
Current assets:
Cash and cash equivalents	1,321	160	(6,171)	3
Accounts receivable, net	124,797	128,085
Inventories, net	138,641	142,033
Prepaid expenses and other current assets	16,919	13,301
Current assets of discontinued operations		2,878
Total current assets	281,678	286,457
Property and equipment, net	112,088	103,637
Goodwill	951,005	951,005
Intangible assets, net	718,717	737,798
Investment in subsidiaries	1,687,724	1,687,724
Other non-current assets	1,315	1,193
Non current assets of discontinued operations		29
Total assets	3,752,527	3,767,843
Current liabilities:
Accounts payable	66,096	49,394
Other current liabilities	59,414	73,260
Current liabilities of discontinued operations	2,934	13,371
Total current liabilities	128,444	136,025
Deferred tax liabilities, net	211,940	209,179
Intercompany payables, net	378,776	400,216
Other long-term liabilities	15,157	14,441
Total liabilities	734,317	759,861
Total membership (deficit) equity	3,018,210	3,007,982
Total liabilities and deficit	3,752,527	3,767,843
Reportable Legal Entities | Non-Guarantors
Current assets:
Cash and cash equivalents	21,949	19,110	$ 13,127	$ 18,183
Accounts receivable, net	47,595	44,275
Inventories, net	51,830	31,803
Prepaid expenses and other current assets	8,329	7,836
Total current assets	129,703	103,024
Property and equipment, net	13,878	13,721
Goodwill	102,071	98,309
Intangible assets, net	11,221	11,247
Investment in subsidiaries	52,749	50,741
Other non-current assets	4,156	2,668
Total assets	313,778	279,710
Current liabilities:
Accounts payable	10,200	9,098
Other current liabilities	27,684	28,643
Total current liabilities	37,884	37,741
Deferred tax liabilities, net	5,963	4,677
Intercompany payables, net	146,914	131,138
Other long-term liabilities	675	651
Total liabilities	191,436	174,207
Noncontrolling interests	2,935	2,634
Total membership (deficit) equity	119,407	102,869
Total liabilities and deficit	313,778	279,710
Eliminations
Current assets:
Inventories, net	(13,938)	737
Total current assets	(13,938)	737
Property and equipment, net	(75)	(85)
Goodwill	(32,218)	(31,210)
Investment in subsidiaries	(3,038,172)	(3,036,164)
Intercompany receivables	(578,904)	(575,483)
Total assets	(3,663,307)	(3,642,205)
Current liabilities:
Intercompany payables, net	(525,690)	(531,354)
Total liabilities	(525,690)	(531,354)
Total membership (deficit) equity	(3,137,617)	(3,110,851)
Total liabilities and deficit	$ (3,663,307)	$ (3,642,205)

Schedule of Condensed Consoli66

Schedule of Condensed Consolidating Statements of Operations (Detail) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2016	Mar. 28, 2015
Net sales	$ 278,906	$ 247,511
Costs and operating expenses:
Cost of sales (exclusive of amortization of intangible assets of $7,407)	118,083	101,884
Selling, general and administrative	121,929	107,185
Research and development	9,854	8,864
Amortization of intangible assets	19,578	19,828
Costs and Expenses, Total	269,444	237,761
Operating income	9,462	9,750
Other (expense) income:
Interest (expense) income, net	(42,270)	(42,866)
Other (expense) income, net	284	(4,156)
Nonoperating Income (Expense), Total	(41,986)	(47,022)
Loss before income taxes	(32,524)	(37,272)
Income tax provision	(5,413)	(1,945)
Net loss from continuing operations	(37,937)	(39,217)
Net (loss) income from discontinued operations	(190)	3,992
Net loss	(38,127)	(35,225)
Net income attributable to noncontrolling interests	(193)	(301)
Net loss attributable to DJO Finance LLC	(38,320)	(35,526)
Reportable Legal Entities | DJOFL
Other (expense) income:
Interest (expense) income, net	(42,283)	(42,871)
Equity in (loss) income of subsidiaries, net	3,962	7,344
Nonoperating Income (Expense), Total	(38,321)	(35,527)
Loss before income taxes	(38,321)	(35,527)
Net loss from continuing operations	(38,321)	(35,527)
Net loss	(38,321)	(35,527)
Net loss attributable to DJO Finance LLC	(38,321)	(35,527)
Reportable Legal Entities | Guarantors
Net sales	243,660	218,392
Costs and operating expenses:
Cost of sales (exclusive of amortization of intangible assets of $7,407)	94,841	90,921
Selling, general and administrative	97,810	84,338
Research and development	8,881	7,882
Amortization of intangible assets	19,147	19,198
Costs and Expenses, Total	220,679	202,339
Operating income	22,981	16,053
Other (expense) income:
Interest (expense) income, net	20	12
Other (expense) income, net	(8,020)	(525)
Intercompany income (expense) , net	363	319
Nonoperating Income (Expense), Total	(7,637)	(194)
Loss before income taxes	15,344	15,859
Income tax provision	(4,407)	(1,603)
Net loss from continuing operations	10,937	14,256
Net (loss) income from discontinued operations	(190)	3,992
Net loss	10,747	18,248
Net loss attributable to DJO Finance LLC	10,747	18,248
Reportable Legal Entities | Non-Guarantors
Net sales	75,495	70,536
Costs and operating expenses:
Cost of sales (exclusive of amortization of intangible assets of $7,407)	64,394	53,334
Selling, general and administrative	24,119	22,847
Research and development	973	982
Amortization of intangible assets	431	630
Costs and Expenses, Total	89,917	77,793
Operating income	(14,422)	(7,257)
Other (expense) income:
Interest (expense) income, net	(7)	(7)
Other (expense) income, net	8,304	(3,631)
Intercompany income (expense) , net	118	25
Nonoperating Income (Expense), Total	8,415	(3,613)
Loss before income taxes	(6,007)	(10,870)
Income tax provision	(1,006)	(342)
Net loss from continuing operations	(7,013)	(11,212)
Net loss	(7,013)	(11,212)
Net income attributable to noncontrolling interests	(193)	(301)
Net loss attributable to DJO Finance LLC	(7,206)	(11,513)
Eliminations
Net sales	(40,249)	(41,417)
Costs and operating expenses:
Cost of sales (exclusive of amortization of intangible assets of $7,407)	(41,152)	(42,371)
Costs and Expenses, Total	(41,152)	(42,371)
Operating income	903	954
Other (expense) income:
Intercompany income (expense) , net	(481)	(344)
Equity in (loss) income of subsidiaries, net	(3,962)	(7,344)
Nonoperating Income (Expense), Total	(4,443)	(7,688)
Loss before income taxes	(3,540)	(6,734)
Net loss from continuing operations	(3,540)	(6,734)
Net loss	(3,540)	(6,734)
Net loss attributable to DJO Finance LLC	$ (3,540)	$ (6,734)

Schedule of Condensed Consoli67

Schedule of Condensed Consolidating Statements of Operations (Parenthetical) (Detail) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2016	Mar. 28, 2015
Income Statement [Abstract]
Cost of sales, amortization of intangible assets	$ 7,407	$ 7,535

Schedule of Condensed Consoli68

Schedule of Condensed Consolidating Statements of Comprehensive Loss (Detail) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2016	Mar. 28, 2015
Net loss	$ (38,127)	$ (35,225)
Other comprehensive income (loss), net of taxes:
Foreign currency translation adjustments, net of tax (provision) benefit of $(277) and $492 for the three months ended April 1, 2016 and March 28, 2015, respectively	5,608	(9,442)
Unrealized loss on cash flow hedges, net of tax provision of zero	(5,391)
Other comprehensive income (loss)	217	(9,442)
Comprehensive loss	(37,910)	(44,667)
Comprehensive income attributable to noncontrolling interests	(301)	(17)
Comprehensive loss attributable to DJO Finance LLC	(38,211)	(44,684)
Reportable Legal Entities | DJOFL
Net loss	(38,321)	(35,527)
Other comprehensive income (loss), net of taxes:
Unrealized loss on cash flow hedges, net of tax provision of zero	(5,391)
Other comprehensive income (loss)	(5,391)
Comprehensive loss	(43,712)	(35,527)
Comprehensive loss attributable to DJO Finance LLC	(43,712)	(35,527)
Reportable Legal Entities | Guarantors
Net loss	10,747	18,248
Other comprehensive income (loss), net of taxes:
Comprehensive loss	10,747	18,248
Comprehensive loss attributable to DJO Finance LLC	10,747	18,248
Reportable Legal Entities | Non-Guarantors
Net loss	(7,013)	(11,212)
Other comprehensive income (loss), net of taxes:
Foreign currency translation adjustments, net of tax (provision) benefit of $(277) and $492 for the three months ended April 1, 2016 and March 28, 2015, respectively	5,608	(9,442)
Other comprehensive income (loss)	5,608	(9,442)
Comprehensive loss	(1,513)	(20,654)
Comprehensive income attributable to noncontrolling interests	(301)	(17)
Comprehensive loss attributable to DJO Finance LLC	(1,814)	(20,671)
Eliminations
Net loss	(3,540)	(6,734)
Other comprehensive income (loss), net of taxes:
Comprehensive loss	(3,540)	(6,734)
Comprehensive loss attributable to DJO Finance LLC	$ (3,540)	$ (6,734)

Schedule of Condensed Consoli69

Schedule of Condensed Consolidating Statements of Comprehensive Loss (Parenthetical) (Detail) - USD ($)	3 Months Ended
	Apr. 01, 2016	Mar. 28, 2015
Statement Of Income And Comprehensive Income [Abstract]
Foreign currency translation adjustment, tax benefit (provision)	$ (277,000)	$ 492,000
Unrealized gain on cash flow hedges, net of tax provisions	$ 0

Schedule of Condensed Consoli70

Schedule of Condensed Consolidating Statements of Cash Flows (Detail) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2016	Mar. 28, 2015
Cash Flows From Operating Activities:
Net (loss) income	$ (38,127)	$ (35,225)
Net loss (income) from discontinued operations	190	(3,992)
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation	10,324	8,214
Amortization of intangible assets	19,578	19,828
Amortization of debt issuance costs and non-cash interest expense	1,892	2,288
Stock-based compensation expense	205	613
Loss (gain) on disposal of assets, net	91	74
Deferred income tax expense (benefit)	2,652	7,291
Changes in operating assets and liabilities, net of acquired assets and liabilities:
Accounts receivable	1,406	3,024
Inventories	1,577	(8,098)
Prepaid expenses and other assets	(3,296)	2,827
Accounts payable and other current liabilities	15,385	12,307
Net cash provided by continuing operating activities	11,877	9,151
Net cash (used in) provided by discontinued operations	(7,720)	5,991
Net cash provided by operating activities	4,157	15,142
Cash flows from investing activities:
Purchases of property and equipment	(12,021)	(6,217)
Net cash used in investing activities from continuing operations	(12,021)	(6,217)
Net cash used in investing activities	(12,021)	(6,217)
Cash flows from financing activities:
Proceeds from issuance of debt	6,000	17,000
Repayments of debt obligations	(10,275)	(20,019)
Net cash used in financing activities	(4,275)	(3,019)
Effect of exchange rate changes on cash and cash equivalents	440	(1,362)
Net (decrease) increase in cash and cash equivalents	(11,699)	4,544
Cash and cash equivalents at the beginning of the period	48,943	31,144
Cash and cash equivalents at the end of the period	37,244	35,688
Reportable Legal Entities | DJOFL
Cash Flows From Operating Activities:
Net (loss) income	(38,321)	(35,527)
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Amortization of debt issuance costs and non-cash interest expense	1,892	2,288
Equity in (loss) income of subsidiaries, net	(3,962)	(7,344)
Changes in operating assets and liabilities, net of acquired assets and liabilities:
Prepaid expenses and other assets	1,345	44
Accounts payable and other current liabilities	21,377	25,950
Net cash provided by continuing operating activities	(17,669)	(14,589)
Net cash provided by operating activities	(17,669)	(14,589)
Cash flows from financing activities:
Intercompany	6,245	33,363
Proceeds from issuance of debt	6,000	17,000
Repayments of debt obligations	(10,275)	(20,000)
Net cash used in financing activities	1,970	30,363
Net (decrease) increase in cash and cash equivalents	(15,699)	15,774
Cash and cash equivalents at the beginning of the period	29,673	12,958
Cash and cash equivalents at the end of the period	13,974	28,732
Reportable Legal Entities | Guarantors
Cash Flows From Operating Activities:
Net (loss) income	10,747	18,248
Net loss (income) from discontinued operations	190	(3,992)
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation	9,123	7,038
Amortization of intangible assets	19,147	19,198
Stock-based compensation expense	205	613
Loss (gain) on disposal of assets, net	17	40
Deferred income tax expense (benefit)	2,917	7,631
Changes in operating assets and liabilities, net of acquired assets and liabilities:
Accounts receivable	3,287	4,992
Inventories	4,066	(19)
Prepaid expenses and other assets	(4,351)	2,325
Accounts payable and other current liabilities	(3,457)	(14,158)
Net cash provided by continuing operating activities	41,891	41,916
Net cash (used in) provided by discontinued operations	(7,720)	5,991
Net cash provided by operating activities	34,171	47,907
Cash flows from investing activities:
Purchases of property and equipment	(10,939)	(4,715)
Net cash used in investing activities from continuing operations	(10,939)	(4,715)
Net cash used in investing activities	(10,939)	(4,715)
Cash flows from financing activities:
Intercompany	(22,071)	(49,366)
Net cash used in financing activities	(22,071)	(49,366)
Net (decrease) increase in cash and cash equivalents	1,161	(6,174)
Cash and cash equivalents at the beginning of the period	160	3
Cash and cash equivalents at the end of the period	1,321	(6,171)
Reportable Legal Entities | Non-Guarantors
Cash Flows From Operating Activities:
Net (loss) income	(7,013)	(11,212)
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation	1,214	1,202
Amortization of intangible assets	431	630
Loss (gain) on disposal of assets, net	75	34
Deferred income tax expense (benefit)	(265)	(340)
Changes in operating assets and liabilities, net of acquired assets and liabilities:
Accounts receivable	(1,881)	(1,968)
Inventories	(1,275)	(5,291)
Prepaid expenses and other assets	(1,055)	265
Accounts payable and other current liabilities	(1,636)	(4,100)
Net cash provided by continuing operating activities	(11,405)	(20,780)
Net cash provided by operating activities	(11,405)	(20,780)
Cash flows from investing activities:
Purchases of property and equipment	(1,081)	(1,505)
Net cash used in investing activities from continuing operations	(1,081)	(1,505)
Net cash used in investing activities	(1,081)	(1,505)
Cash flows from financing activities:
Intercompany	14,885	18,610
Repayments of debt obligations		(19)
Net cash used in financing activities	14,885	18,591
Effect of exchange rate changes on cash and cash equivalents	440	(1,362)
Net (decrease) increase in cash and cash equivalents	2,839	(5,056)
Cash and cash equivalents at the beginning of the period	19,110	18,183
Cash and cash equivalents at the end of the period	21,949	13,127
Eliminations
Cash Flows From Operating Activities:
Net (loss) income	(3,540)	(6,734)
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation	(13)	(26)
Loss (gain) on disposal of assets, net	(1)
Equity in (loss) income of subsidiaries, net	3,962	7,344
Changes in operating assets and liabilities, net of acquired assets and liabilities:
Inventories	(1,214)	(2,788)
Prepaid expenses and other assets	765	193
Accounts payable and other current liabilities	(899)	4,615
Net cash provided by continuing operating activities	(940)	2,604
Net cash provided by operating activities	(940)	2,604
Cash flows from investing activities:
Purchases of property and equipment	(1)	3
Net cash used in investing activities from continuing operations	(1)	3
Net cash used in investing activities	(1)	3
Cash flows from financing activities:
Intercompany	941	(2,607)
Net cash used in financing activities	$ 941	$ (2,607)