Djo Finance 10-Q 14 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Aug. 14, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
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 August 14, 2018, 100% of the issuer’s membership interests were owned by DJO Holdings LLC.

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 26,789	$ 31,985
Accounts receivable, net	179,611	190,324
Inventories, net	177,273	169,137
Prepaid expenses and other current assets	32,144	20,218
Current assets of discontinued operations	511	511
Total current assets	416,328	412,175
Property and equipment, net	137,496	133,522
Goodwill	878,963	864,112
Intangible assets, net	585,268	607,088
Other assets	5,242	5,128
Total assets	2,023,297	2,022,025
Current liabilities:
Accounts payable	105,144	98,331
Accrued interest	18,615	18,015
Current portion of debt obligations	26,022	15,936
Other current liabilities	116,071	126,360
Total current liabilities	265,852	258,642
Long-term debt obligations	2,414,519	2,398,184
Deferred tax liabilities, net	146,108	142,597
Other long-term liabilities	20,968	13,080
Total liabilities	2,847,447	2,812,503
Commitments and contingencies (Note 15)
DJO Finance LLC membership deficit:
Member capital	845,708	844,115
Accumulated deficit	(1,646,850)	(1,615,536)
Accumulated other comprehensive loss	(25,579)	(21,072)
Total membership deficit	(826,721)	(792,493)
Noncontrolling interests	2,571	2,015
Total deficit	(824,150)	(790,478)
Total liabilities and deficit	$ 2,023,297	$ 2,022,025

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Income Statement [Abstract]
Net sales	$ 304,837	$ 294,746	$ 597,466	$ 583,135
Operating expenses:
Cost of sales (exclusive of amortization of intangible assets of $6,935 and $13,293 for the three and six months ended June 30, 2018, respectively and $6,980 and $13,961 for the three and six months ended July 1, 2017, respectively)	126,443	124,885	246,379	244,454
Selling, general and administrative	117,626	135,739	232,942	269,901
Research and development	9,707	9,063	18,988	18,202
Amortization of intangible assets	15,289	16,016	29,888	34,861
Costs and Expenses, Total	269,065	285,703	528,197	567,418
Operating income	35,772	9,043	69,269	15,717
Other (expense) income:
Interest expense, net	(45,779)	(43,068)	(89,701)	(85,755)
Other (expense) income, net	1,054	896	(487)	1,184
Nonoperating Income (Expense), Total	(44,725)	(42,172)	(90,188)	(84,571)
Loss before income taxes	(8,953)	(33,129)	(20,919)	(68,854)
Income tax provision	4,635	1,095	10,019	5,173
Net loss from continuing operations	(13,588)	(34,224)	(30,938)	(74,027)
Net income from discontinued operations	178	47	321	105
Net loss	(13,410)	(34,177)	(30,617)	(73,922)
Net income attributable to noncontrolling interests	(276)	(206)	(638)	(430)
Net loss attributable to DJO Finance LLC	$ (13,686)	$ (34,383)	$ (31,255)	$ (74,352)

CONDENSED CONSOLIDATED STATEME4

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Income Statement [Abstract]
Cost of sales, amortization of intangible assets	$ 6,935	$ 6,980	$ 13,293	$ 13,961

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Statement Of Income And Comprehensive Income [Abstract]
Net loss	$ (13,410)	$ (34,177)	$ (30,617)	$ (73,922)
Other comprehensive income (loss), net of taxes:
Foreign currency translation adjustments, net of tax (benefit) provision of $(1,032) and $334 for the three and six months ended June 30, 2018, respectively and $4,080 and $4,192 for the three and six months ended July 1, 2017, respectively	(8,636)	3,204	(7,134)	4,953
Unrealized gain (loss) on cash flow hedges, net of tax (benefit) provision of $(471) and zero for the three and six months ended June 30, 2018 and $21 thousand for both the three and six months ended July 1, 2017, respectively	640	(786)	2,545	60
Other comprehensive (loss) income	(7,996)	2,418	(4,648)	5,013
Comprehensive loss	(21,406)	(31,759)	(35,265)	(68,909)
Comprehensive (income) loss income attributable to noncontrolling interests	(136)	768	(556)	515
Comprehensive loss attributable to DJO Finance LLC	$ (21,542)	$ (30,991)	$ (35,821)	$ (68,394)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Statement Of Income And Comprehensive Income [Abstract]
Foreign currency translation adjustment, tax (benefit) provision	$ (1,032,000)	$ 4,080,000	$ 334,000	$ 4,192,000
Unrealized gain (loss) on cash flow hedges, tax (benefit) provision	$ (471,000)	$ 21,000	$ 0	$ 21,000

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENT OF DEFICIT - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018
Balance at December 31, 2017		$ (790,478)
Net (loss) income	$ (13,410)	(30,617)
Other comprehensive loss, net of tax benefit	(7,996)	(4,648)
Investment by Parent		698
Stock-based compensation		895
Balance at June 30, 2018	(824,150)	(824,150)
Member Capital
Balance at December 31, 2017		844,115
Investment by Parent		698
Stock-based compensation		895
Balance at June 30, 2018	845,708	845,708
Accumulated Deficit
Balance at December 31, 2017		(1,615,536)
Net (loss) income		(31,255)
Other comprehensive loss, net of tax benefit		(59)
Balance at June 30, 2018	(1,646,850)	(1,646,850)
Accumulated Other Comprehensive Loss
Balance at December 31, 2017		(21,072)
Other comprehensive loss, net of tax benefit		(4,507)
Balance at June 30, 2018	(25,579)	(25,579)
Total Membership Deficit
Balance at December 31, 2017		(792,493)
Net (loss) income		(31,255)
Other comprehensive loss, net of tax benefit		(4,566)
Investment by Parent		698
Stock-based compensation		895
Balance at June 30, 2018	(826,721)	(826,721)
Non-Controlling Interests
Balance at December 31, 2017		2,015
Net (loss) income		638
Other comprehensive loss, net of tax benefit		(82)
Balance at June 30, 2018	$ 2,571	$ 2,571

CONDENSED CONSOLIDATED STATEME8

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017
Cash flows from operating activities:
Net loss	$ (30,617)	$ (73,922)
Net income from discontinued operations	(321)	(105)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation	23,488	21,855
Amortization of intangible assets	29,888	34,861
Amortization of debt issuance costs and non-cash interest expense	4,337	4,073
Stock-based compensation expense	895	846
Deferred purchase price consideration	13,708
Loss on disposal of assets, net	543	279
Deferred income tax (benefit) expense	(2,758)	2,084
Changes in operating assets and liabilities, net of acquired assets and liabilities:
Accounts receivable	9,288	11,179
Inventories	(9,122)	2,364
Prepaid expenses and other assets	(7,645)	3,080
Accrued interest	882	(3,806)
Accounts payable and other current liabilities	(23,678)	35,307
Net cash provided by continuing operating activities	8,888	38,095
Net cash provided by discontinued operations	321	105
Net cash provided by operating activities	9,209	38,200
Cash flows from investing activities:
Acquisition of business, net of cash acquired	(9,104)
Purchases of property and equipment	(19,025)	(22,434)
Other, net	248
Net cash used in investing activities	(27,881)	(22,434)
Cash flows from financing activities:
Proceeds from revolver borrowings	66,503	35,556
Proceeds from capital lease	15,000
Repayments of debt obligations	(66,538)	(48,275)
Repurchase of common stock		(3,600)
Investment by parent		500
Other financing, net	(482)
Dividends paid to minority interests	(482)	(1,102)
Net cash provided (used) in financing activities	14,483	(16,921)
Effect of exchange rate changes on cash and cash equivalents	(1,007)	1,140
Net decrease in cash and cash equivalents	(5,196)	(15)
Cash and cash equivalents at the beginning of the period	31,985	35,212
Cash and cash equivalents at the end of the period	26,789	35,197
Non-cash investing activities:
Purchases of surgical instruments included in accounts payable	4,592	$ 4,530
Stock issued as part of acquisition consideration	$ 698

ORGANIZATION AND BASIS OF PRESE

ORGANIZATION AND BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2018
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 high-quality medical devices with a broad range of products used for rehabilitation, pain management and physical therapy. 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 clinical 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, shoulder and elbow. Our International segment offers all of our products to customers outside the United States. See Note 15 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 home electrotherapy devices, such as TENS devices for pain relief, other electrotherapy and orthopedic products and 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 Unaudited Condensed 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, 2017. We operate 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 half of 2018 had the same number of shipping days as the first half of 2017. Recent Accounting Pronouncements Adoption of New Accounting Standards On January 1, 2018, we adopted Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) The majority of our contracts are generally short term in nature. Revenue is recognized at the point of time when we transfer control of the good or service to the customer or patient. Under ASC 606, estimated uncollectible amounts due from self-pay patients, as well as co-pays, co-insurance and deductibles owed to us by patients with insurance are generally considered implicit price concessions and are now presented as a reduction of net revenue. Under prior guidance, these amounts were recognized as bad debt expense and were included in other operating costs. When estimating the variable consideration, we use historical collection experience to estimate amounts not expected to be collected. Conversely, subsequent changes in collectability due to a change in financial condition (i.e. bankruptcy) continues to be recognized as bad debt expense. The adoption of this standard did not have a material impact on our results of operations as the timing of revenue recognition under the new standard is not materially different from our previous revenue recognition policy. Based on our analysis of open contracts as of January 1, 2018, the cumulative effect of applying the new standard was not material. On January 1, 2018, we adopted ASU No. 2016-01, Financial Instruments-Overall (Subtopic 825-10 On January 1, 2018, we adopted ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments On January 1, 2018, we adopted ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory On January 1, 2018, we adopted ASU No. 2017-01 , Business Combinations (Topic 805): Clarifying the Definition of a Business On January 1, 2018, we adopted ASU No. 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting On January 1, 2018, we adopted ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities On April 1, 2018, we adopted ASU No. 2018-05, Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 Income Taxes  New Accounting Standards Issued, Not Yet Adopted In June 2018, the issued ASU 2018-07, Compensation - Stock Compensation (Topic 718) , Improvements to Nonemployee Share-Based Payment Accounting , an update that expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The guidance will be effective for us beginning January 1, 2020 with early adoption permitted. We are currently evaluating the impact that adopting this guidance will have on our Condensed Consolidated Financial Statements. In February 2018, the FASB issued ASU No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842)

DIVESTITURES

DIVESTITURES	6 Months Ended
	Jun. 30, 2018
Business Combinations [Abstract]
DIVESTITURES	2. DIVESTITURES Discontinued Operations For disposal transactions that occur on or after 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. We have evaluated the and concluded For financial statement purposes, the Empi business financial results are reported within discontinued operations in the Unaudited Condensed Consolidated Financial Statements. The impact of these results is immaterial to the periods presented.

ACCOUNTS RECEIVABLE RESERVES

ACCOUNTS RECEIVABLE RESERVES	6 Months Ended
	Jun. 30, 2018
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): Six Months Ended June 30, 2018 July 1, 2017 Balance, beginning of period $ 29,238 $ 36,070 Provision for doubtful accounts 1,214 10,533 Write-offs, net of recoveries (5,474 ) (17,137 ) Balance, end of period $ 24,978 $ 29,466

INVENTORIES

INVENTORIES	6 Months Ended
	Jun. 30, 2018
Inventory Disclosure [Abstract]
INVENTORIES	4. INVENTORIES Inventories consist of the following (in thousands): June 30, 2018 December 31, 2017 Components and raw materials $ 65,006 $ 67,220 Work in process 7,059 5,652 Finished goods 98,618 89,468 Inventory held on consignment 37,222 38,219 207,905 200,559 Inventory reserves (30,632 ) (31,422 ) $ 177,273 $ 169,137 A summary of the activity in our reserves for estimated slow moving, excess, obsolete and otherwise impaired inventory is presented below (in thousands): Six Months Ended June 30, 2018 July 1, 2017 Balance, beginning of period $ 31,422 $ 38,312 Provision charged to costs of sales 4,827 2,550 Write-offs, net of recoveries (5,617 ) (9,012 ) Balance, end of period $ 30,632 $ 31,850 The write-offs to the reserve were principally related to the disposition of fully reserved inventory.

ACQUISITIONS

ACQUISITIONS	6 Months Ended
	Jun. 30, 2018
Business Combinations [Abstract]
ACQUISITIONS	5. ACQUISITIONS The assets acquired and liabilities assumed at the date of acquisition are recorded in the Unaudited Condensed Consolidated Financial Statements at their estimated respective fair values as of the acquisition date. The excess of the purchase price over the fair value of the acquired net assets is recorded as goodwill. The determination of estimated fair value of acquired assets and liabilities requires management to make significant estimates and assumptions. We determine the fair value by applying established valuation techniques, based on information that management believes to be relevant to this determination. Management worked with an independent valuation firm to assist in the valuation of goodwill and intangible assets. We used a combination of income approaches including relief from royalty and multi-period excess earnings methods. The valuation models were based on estimates of future operating projections of the acquired business and rights to sell products as well as judgments on the discount rates used and other variables. We determined the forecasts based on a number of factors, included their best estimate of near-term net sales expectations and long-term projections, which included review of internal and independent market analyses. The results of operations from acquisitions are included in the Unaudited Condensed Consolidated Financial Statements from the date of the acquisition. Acquisition of Contract Rights and Medical Billing Operations On April 30, 2018, we completed the acquisition of 100% of the capital stock of a legal entity containing the regional payor and other customer contracts and rights related to the sale of surgical, sports medicine and rehabilitative orthopedic products and the related medical billing operations of one of our distributor partners, for total consideration of $23.8 million, consisting of $3.9 million of debt re-paid at closing, $5.2 million cash consideration paid at closing and $14.0 million cash consideration to be paid in installments up to the third anniversary of the transaction. We also issued 42,528 shares of common stock of DJO priced at approximately $700,000 to the holders of a warrant in the acquired entity. Acquisition-related expenses for the three months ended June 30, 2018 which are included in “Selling, general and administrative expenses” in our Unaudited Condensed Consolidated Statements of Operations are not significant. The value of goodwill from the acquisition can be attributed to a number of business factors including the acquisition of these contract and related rights and the related billing system, in addition to synergies associated with combining the acquired business with our existing business. The determination of estimated fair value requires management to make significant estimates and assumptions. We determined the fair value by applying established valuation techniques, based on information that management believed to be relevant to this determination. The following table summarizes the preliminary purchase price allocation of the fair value of the assets acquired and liabilities assumed as of the date of acquisition until we finalize the valuation of intangibles (in thousands): Accounts receivable, net $ 3,841 Inventories, net 1,132 Prepaid expenses and other assets 119 Property and equipment, net 192 Intangible assets 8,450 Goodwill 17,455 Current portion of long-term debt (1,143 ) Accounts payable (1,853 ) Accrued expenses (612 ) Long-term debt (3,757 ) Other short-term liabilities (20 ) Total purchase price $ 23,804

LONG-LIVED ASSETS

LONG-LIVED ASSETS	6 Months Ended
	Jun. 30, 2018
Goodwill And Intangible Assets Disclosure [Abstract]
LONG-LIVED ASSETS	6. LONG-LIVED ASSETS Goodwill Changes in the carrying amount of goodwill for the six months ended June 30, 2018 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 $ 339,030 $ 1,121,118 Accumulated impairment losses (61,000 ) (148,600 ) (47,406 ) — (257,006 ) Goodwill, net of accumulated impairment losses at December 31, 2017 422,258 101,001 1,823 339,030 864,112 Current Year Activity: Foreign currency translation — — — (2,604 ) (2,604 ) Balance, end of period Acquisitions (Note 5) 17,455 — — — 17,455 Goodwill 483,258 249,601 49,229 336,426 1,118,514 Accumulated impairment losses (61,000 ) (148,600 ) (47,406 ) — (257,006 ) Goodwill, net of accumulated impairment losses at June 30, 2018 $ 439,713 $ 101,001 $ 1,823 $ 336,426 $ 878,963 Intangible Assets Identifiable intangible assets consisted of the following (in thousands): June 30, 2018 Gross Amount Accumulated Amortization Intangible Assets, Net Definite-lived intangible assets: Customer relationships $ 478,581 $ (415,404 ) $ 63,177 Patents and Technology 446,759 (315,964 ) 130,795 Trademarks and trade names 29,815 (19,980 ) 9,835 Distributor contracts and relationships 11,567 (5,284 ) 6,283 Non-compete agreements 6,672 (6,672 ) — Definite-lived intangible assets: $ 973,394 $ (763,304 ) $ 210,090 Indefinite-lived intangible assets: Trademarks and trade names 375,178 Net identifiable intangible assets $ 585,268 December 31, 2017 Gross Carrying Amount Accumulated Amortization Intangible Assets, Net Definite-lived intangible assets: Customer relationships $ 478,114 $ (402,005 ) $ 76,109 Patents and technology 446,894 (302,805 ) 144,089 Trademarks and trade names 29,851 (18,576 ) 11,275 Distributor contracts and relationships 4,805 (4,725 ) 80 Non-compete agreements 6,750 (6,750 ) — $ 966,414 $ (734,861 ) $ 231,553 Indefinite-lived intangible assets: Trademarks and trade names 375,535 Net identifiable intangible assets $ 607,088 Our definite lived intangible assets are being amortized using the straight line method over their remaining weighted average useful lives of 1.6 years for customer relationships, 4.9 years for patents and technology and 3.4 years for trademarks and trade names. Based on our amortizable intangible asset balance as of June 30, 2018, we estimate that amortization expense will be as follows for the next five years and thereafter (in thousands): Remaining 2018 $ 31,280 2019 57,278 2020 38,138 2021 32,481 2022 28,680 Thereafter 22,233 $ 210,090

OTHER CURRENT LIABILITIES

OTHER CURRENT LIABILITIES	6 Months Ended
	Jun. 30, 2018
Other Liabilities Disclosure [Abstract]
OTHER CURRENT LIABILITIES	7. OTHER CURRENT LIABILITIES Other current liabilities consist of the following (in thousands): June 30, 2018 December 31, 2017 Accrued wages and related expenses $ 31,098 $ 41,482 Accrued commissions 14,710 16,994 Accrued rebates 9,984 12,896 Accrued other taxes 5,362 5,743 Accrued professional expenses 5,405 3,879 Income taxes payable 2,198 1,937 Derivative liability — 268 Other accrued liabilities 47,314 43,161 $ 116,071 $ 126,360

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS	6 Months Ended
	Jun. 30, 2018
Derivative Instruments And Hedging Activities Disclosure [Abstract]
DERIVATIVE INSTRUMENTS	8. 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 loss and subsequently reclassified into our Unaudited Condensed 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). 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 loss and reclassified into interest expense in our Unaudited Condensed Consolidated Statement of Operations in the period in which it affected income (loss). The following table summarizes the fair value of derivative instruments in our Unaudited Condensed Consolidated Balance Sheets (in thousands): Balance Sheet Location June 30, 2018 December 31, 2017 Derivative Assets: Interest rate cap agreements designated as cash flow hedges Other current assets $ 1,916 $ — Interest rate cap agreements designated as cash flow hedges Other long-term assets 834 84 $ 2,750 $ 84 Derivative Liabilities: Interest rate cap agreements designated as cash flow hedges Other current liabilities $ — $ 268 $ — $ 268 The following table summarizes the effect our derivative instruments have on our Unaudited Condensed Consolidated Statements of Operations (in thousands): Three Months Ended Six Months Ended Location June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017 Interest rate cap agreements designated as cash flow hedges Interest (income) expense, net $ (194 ) $ 410 $ (290 ) $ 705 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 Six Months Ended June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017 Interest rate cap agreements designated as cash flow hedges $ 640 $ (786 ) $ 2,545 $ 60

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	9. 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 June 30, 2018 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 $ — $ 2,750 $ — $ 2,750 As of December 31, 2017 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 $ — $ 84 $ — $ 84 Liabilities: Interest rate cap agreements designated as cash flow hedges $ — $ 268 $ — $ 268

DEBT

DEBT	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
DEBT	10. DEBT Debt obligations consist of the following (in thousands): June 30, 2018 December 31, 2017 Credit facilities: Revolving credit facility, net of unamortized debt issuance costs of $0.9 million and $1.2 million as of June 30, 2018 and December 31, 2017, respectively $ 86,582 $ 73,843 Term loan: $1,026.0 million Term Loan, net of unamortized debt issuance costs and original issuance discount of $6.9 million and $8.6 million as of June 30, 2018 and December 31, 2017, respectively 1,019,074 1,022,630 Notes: $1,015.0 million 8.125% Second Lien Notes, net of unamortized debt issuance costs and original issuance discount of $10.2 million and $11.6 million as of June 30, 2018 and December 31, 2017, respectively 1,004,833 1,003,382 $298.5 million 10.75% Third Lien Notes, net of unamortized debt issuance costs and original issuance discount of $3.9 million and $4.8 million as of June 30, 2018 and December 31, 2017, respectively 294,584 293,657 Capital lease obligations and other 35,468 20,608 Total debt 2,440,541 2,414,120 Current maturities (26,022 ) (15,936 ) Long-term debt $ 2,414,519 $ 2,398,184 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”). 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 of June 30, 2018, the market values of our Term Loan and drawings under the ABL Facility were $1,022.1 million and $87.5 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. Our revolving loan balance under our ABL Facility was $86.5 million as of June 30, 2018, in addition to a $5.7 million outstanding letter of credit related to our travel and entertainment corporate card program and a $0.5 million outstanding letter of credit related to collateral requirements under our product liability insurance policy. 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 June 30, 2018 our weighted average interest rate for all borrowings under the Credit Facilities was 5.2%. 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 June 30, 2018, our actual first lien net leverage ratio was 3.52:1, 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 June 30, 2018, the market value of the 8.125% Notes was $1,029.3 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 $289.7 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 June 30, 2018, the market value of the 10.75% Notes was $292.5 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. 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 June 30, 2018, 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. Other Debt As of June 30, 2018, we entered into a capital lease which provided $15.0 million of cash. The transaction is collaterized by equipment and other assets of the DJO surgical segment. The capital lease is payable in twenty-one installments through February 1, 2020. On June 6, 2017, we entered into two new term loans at our French subsidiary, the first of which provides for borrowings of €6.0 million ($7.0 million based on the June 30, 2018 currency conversion rate). The second term loan provides for borrowings of €12.0 million ($14.0 million based on the June 30, 2018 currency conversion rate) with both being subject to customary borrowing conditions. We are required to make principal repayments under the loan in monthly installments through the maturity date of May 2020. The interest rate on this loan is the Euribor for a one-month interest period plus 0.4%. Debt Issuance Costs As of June 30, 2018 and December 31, 2017, we had $7.0 million and $8.6 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 Unaudited Condensed Consolidated Balance Sheets. For the three and six months ended June 30, 2018 and July 1, 2017, amortization of debt issuance costs was $0.8 million and $1.6 million and $0.8 million and $1.5 million, respectively. Amortization of debt issuance costs was included in Interest expense in our Unaudited Consolidated Statements of Operations for each of the periods presented.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2018
Income Tax Disclosure [Abstract]
INCOME TAXES	11. 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 ended June 30, 2018, we recorded an income tax provision of $4.6 million on pre-tax losses of $9.0 million, resulting in a negative effective tax rate of 51.8%. For the three ended July 1, 2017, we recorded income tax provision of approximately $1.1 million on pre-tax losses of $33.1 million, resulting in a negative effective tax rate of 3.3%. For the six months ended June 30, 2018, we recorded an income tax provision of $10.0 million on pre-tax losses of $20.9 million, resulting in a negative effective tax rate of 47.9%. For the six months ended July 1, 2017, we recorded an income tax provision of approximately $5.2 million on pre-tax losses of $68.9 million, resulting in a negative effective tax rate of 7.5%. 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 on the deferred tax assets generated in the three and six months ended June 30, 2018. 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 net operating losses and indefinite lived deferred tax assets, 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 2013. 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 June 30, 2018, our gross unrecognized tax benefits were $18.6 million reflecting an increase of $1.8 million from the unrecognized amount of $16.8 million at December 31, 2017. As of June 30, 2018, we have $3.3 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 $0.4 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 June 30, 2018, we have unrecognized various foreign and U.S. state tax benefits of approximately $7.0 million, which, if recognized, would impact our effective tax rate in future periods. In December 2017, the Tax Cuts and Jobs Act (the “2017 Act”) was enacted. The 2017 Act includes a number of changes to existing U.S. tax laws that impact us, most notably a reduction of the U.S. corporate income tax rate from 35 percent to 21 percent for tax years beginning after December 31, 2017. The 2017 Act also provides for a one-time transition tax on certain foreign earnings and the acceleration of depreciation for certain assets placed in service after September 27, 2017. The 2017 Act also includes prospective changes beginning in 2018, including additional limitations on executive compensation, limitations on the deductibility of interest and capitalization of research and development expenditures. The 2017 Act includes two new U.S. tax base erosion provisions, the global intangible low-taxes income (“GILTI”) provisions and the base-erosion and anti-abuse tax (“BEAT”) provisions. In addition, the 2017 Act includes a provision which provides a benefit for foreign derived intangible income (“FDII”). On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the 2017 Act. We continue to evaluate the impacts of the 2017 Act. In the Unaudited Condensed Consolidated Financial Statements for the quarter ended June 30, 2018, we have recorded the provisional amounts related to GILTI, BEAT, FDII, interest expense deferral and other changes included in the 2017 Act. The ultimate impact may differ from these provisional amounts due to, among other things, additional analysis, changes in interpretations and assumptions we made, additional regulatory guidance that may be issued, and actions we may take as a result of the 2017 Act. We continue to monitor guidance issued by the U.S. Treasury Department, the Internal Revenue Service, and other standard-setting bodies and expect to complete the accounting for tax effects of the 2017 Act in 2018. We measure deferred tax assets and liabilities using enacted tax rates that will apply in the years in which the temporary differences are expected to be recovered or paid. We are still refining our calculations, in particular the potential utilization of indefinite lived deferred tax liabilities as a source of future taxable income when assessing the realizability of indefinite lived deferred assets, which could potentially affect the re-measurement of these balances in a future period.

STOCK OPTION PLANS AND STOCK-BA

STOCK OPTION PLANS AND STOCK-BASED COMPENSATION	6 Months Ended
	Jun. 30, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
STOCK OPTION PLANS AND STOCK-BASED COMPENSATION	12. 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 2016, 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 2016. 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 six months ended June 30, 2018, the compensation committee granted 1,163,000 options to employees, of which 976,333 were Market Return Options and 186,667 were Time-Based Options. Additionally, the compensation committee granted 9,200 Director Service Options to members of the Board of Directors. The weighted average grant date fair value of the Time-Based Options and Director Service Options granted during the six months ended June 30, 2018 was $6.15. During the six months ended July 1, 2017, the compensation committee granted 615,000 options to employees, of which 467,500 were Market Return Options and 147,500 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 Director Service Options granted during the six months ended July 1, 2017 was $6.10 and $6.59, 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 Six Months Ended June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017 Expected volatility 25.8 % 33.4 % 25.0-25.8 % 33.4 % Risk-free interest rate 2.9 % 2.0 % 2.8-2.9 % 2.0-2.2 % Expected years until exercise 6.5 6.3 6.0-6.5 6.3-7.4 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 Six Months Ended June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017 Cost of sales $ 78 $ 29 $ 157 $ 62 Operating expenses: Selling, general and administrative 379 361 758 782 Research and development (10 ) 2 (20 ) 2 $ 447 $ 392 $ 895 $ 846 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 2018. Accordingly, during each of the periods presented above we recognized stock-based compensation expense only for the Time-Based Options, the Vested Options and the Director Service Options. 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	6 Months Ended
	Jun. 30, 2018
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	13. RELATED PARTY TRANSACTIONS Blackstone Management Partners LLC (BMP) provided certain monitoring, advisory and consulting services to us for an annual monitoring fee. The Transaction and Monitoring Fee Agreement was terminated effective November 20, 2017. DJO had 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.

REVENUE

REVENUE	6 Months Ended
	Jun. 30, 2018
Revenue From Contract With Customer [Abstract]
REVENUE	14. REVENUE On January 1, 2018, we adopted ASU 2014-09 Revenue from Contracts with Customers Revenue Recognition The impact of ASC 606 on our results of operations for the six months ended June 30, 2018 was not material and related primarily to the reclassification of certain costs previously presented as selling, general and administrative expenses to net sales. Sales are recognized as the performance obligations to deliver products or services are satisfied and are recorded based on the amount of consideration we expect to receive in exchange for satisfying the performance obligations. In the United States most of our products and services are marketed directly to doctors, hospitals, and other healthcare facilities through company-owned subsidiaries and distributors. Our products are sold on a global basis through company-owned sales subsidiaries, as well as third party dealers and distributors. Sales represents the amount of consideration that we expect to receive from customers in exchange for transferring products and services. Net sales exclude sales and other taxes we collect from customers. Other costs to obtain and fulfill contracts are expensed as incurred due to the short-term nature of a majority of our sales. We extend terms of payment to our customers based on commercially reasonable terms for the markets of our customers, while also considering their credit quality. To the extent that the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing the most likely amount method. Variable consideration is included in the transaction price if, in our judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Variable consideration can include a provision for estimated sales returns, volume discounts, prompt payment discounts, list price discounts, customer payment penalties and rebates. Variable consideration is recorded as a reduction of sales in the same period that the sales are recognized. Our estimate of the provision for sales returns has been established based on contract terms with our customers and our historical business trends. Shipping and handling costs charged to customers are included in net sales. Our sales continue to be recognized when title to the product, ownership and risk of loss transfers to the customer which can be the date of shipment, the date of receipt by the customer or, for most Orthopedics products, when we receive appropriate notification that the product has been used or implanted. We disaggregate our net sales by sales channel for each of our segments as we believe it best depicts how the nature, amount and timing and uncertainty of our net sales and cash flows are affected by economic factors. The following tables disaggregates our revenue by major sales channel for the three and six months ended June 30, 2018 and the three and six months ended July 1, 2017 (in thousands): Three Months ended June 30, 2018 Segments Bracing & Vascular Recovery Sciences Surgical International Total Sales Channel Dealers & Distributors $ 48,937 $ 16,194 $ — $ 61,139 $ 126,270 Insurance 30,418 18,295 — 5,704 54,417 Direct 43,593 2,965 53,918 19,907 120,383 Other 3,564 — — 203 3,767 $ 126,512 $ 37,454 $ 53,918 $ 86,953 $ 304,837 Six Months ended June 30, 2018 Segments Bracing & Vascular Recovery Sciences Surgical International Total Sales Channel Dealers & Distributors $ 93,790 $ 31,851 $ — $ 124,216 $ 249,857 Insurance 55,638 35,208 — 11,735 102,581 Direct 84,644 6,288 107,537 39,180 237,649 Other 6,929 — — 450 7,379 $ 241,001 $ 73,347 $ 107,537 $ 175,581 $ 597,466 Three Months ended July 1, 2017 Segments Bracing & Vascular Recovery Sciences Surgical International Total Sales Channel Dealers & Distributors $ 48,937 $ 18,274 $ — $ 55,797 $ 123,008 Insurance 27,923 17,465 — 5,220 50,608 Direct 46,350 3,035 49,991 18,332 117,708 Other 3,205 — — 217 3,422 $ 126,415 $ 38,774 $ 49,991 $ 79,566 $ 294,746 Six Months ended July 1, 2017 Segments Bracing & Vascular Recovery Sciences Surgical International Total Sales Channel Dealers & Distributors $ 94,195 $ 36,527 $ — $ 111,774 $ 242,496 Insurance 54,929 34,614 — 10,274 99,817 Direct 93,190 6,136 99,583 35,341 234,250 Other 6,154 — — 418 6,572 $ 248,468 $ 77,277 $ 99,583 $ 157,807 $ 583,135 Dealers & Distributors. This sales channel represents products sold to independent dealers, distributors and retailers who then distribute or sell to orthopedic and sports medicine professionals, hospitals, podiatry practices, orthotic and prosthetic centers, home medical equipment providers and independent pharmacies or sell direct to end customers. Insurance. This sales channel represents all products sold to patients which qualify for medical reimbursement, where we arrange billing to the patients and their third party payors. Direct . This sales channel represents all sales made directly to orthopedic and sports medicine professionals, hospitals, podiatry practices, orthotic and prosthetic centers, home medical equipment providers and consumers. Revenue is recognized when obligations under the terms of a contract with our customers are satisfied which occurs with the transfer of control of our products. This occurs either upon shipment or delivery of goods, depending on whether the contract is FOB Origin or FOB Destination. We record revenues from sales of our surgical implant products when the products are used in a surgical procedure (implanted in a patient). Revenue is measured as the amount of consideration we expect to receive in exchange for transferring products to a customer (“transaction price”). Under ASC 606, estimated uncollectible amounts due from self-pay patients, as well as co-pays, co-insurance and deductibles owed to us by patients with insurance are generally considered implicit price concessions and are now recorded as a reduction of net revenue in our unaudited condensed consolidated statements of operations. Under prior guidance, these amounts were recognized as bad debt expense and were included in selling, general and administrative expenses. When estimating the variable consideration, we use historical collection experience to estimate amounts not expected to be collected. Conversely, subsequent changes in collectability due to a change in financial condition (i.e. bankruptcy) continues to be recognized as bad debt expense. We estimate amounts recorded to bad debt expense using historical trends. The following table discloses the impact under ASC 606 which we adopted on January 1, 2018 of estimated implicit price concessions on our net revenue for the three and six months ended June 30, 2018 (in thousands); Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Net revenue as reported $ 304,837 $ 597,466 Estimated implicit price concessions 5,430 5,430 Net revenue excluding implicit price concessions $ 310,267 $ 602,896 To the extent that the transaction price includes variable consideration, such as prompt payment discounts, list price discounts, rebates, volume discounts and customer payment penalties, we estimate the amount of variable consideration that should be included in the transaction price utilizing the most likely amount method. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of our anticipated performance and all information (historical, current and forecasted) that is reasonably available. As a result of our adoption of Topic 606, we reclassed our sales return reserve from accounts receivable to a refund liability account within Other current liabilities in the Unaudited Condensed Consolidated Balance Sheet as of June 30, 2018. We estimate contractual discounts and allowances for reimbursement amounts from our third party payor customers based on negotiated contracts and historical experience. As of June 30, 2018 our refund liability and our allowance for sales discounts and other allowances was $1.4 million and $4.7 million, respectively. We have made an accounting policy election to account for shipping and handling activities as fulfillment activities. As such we do not consider shipping and handling as promised services to our customers.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2018
Commitments And Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	15. COMMITMENTS AND CONTINGENCIES Litigation From time to time, we are plaintiffs or defendants in various litigation matters in the ordinary course of our business, some of which involve claims for damages that are substantial in amount. We believe that the disposition of claims currently pending will not have a material adverse impact on our financial position or results of operations.

SEGMENT AND GEOGRAPHIC INFORMAT

SEGMENT AND GEOGRAPHIC INFORMATION	6 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
SEGMENT AND GEOGRAPHIC INFORMATION	16. SEGMENT AND GEOGRAPHIC INFORMATION For the periods ended June 30, 2018 and July 1, 2017, 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 on-line. The bracing and vascular products sold through the channel will principally be sold under the DonJoy Performance, Bell-Horn and Dr. 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, 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, shoulder and elbow 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 Six Months Ended June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017 Net sales: Bracing and Vascular $ 126,512 $ 126,415 $ 241,001 $ 248,468 Recovery Sciences 37,454 38,774 73,347 77,277 Surgical Implant 53,918 49,991 107,537 99,583 International 86,953 79,566 175,581 157,807 $ 304,837 $ 294,746 $ 597,466 $ 583,135 Operating income: Bracing and Vascular $ 29,257 $ 24,225 $ 49,255 $ 45,232 Recovery Sciences 9,656 10,709 18,249 19,616 Surgical Implant 11,166 10,062 22,930 18,202 International 19,436 13,509 38,849 27,119 Expenses not allocated to segments and eliminations (33,743 ) (49,462 ) (60,014 ) (94,452 ) $ 35,772 $ 9,043 $ 69,269 $ 15,717 Geographic Area Following are our net sales by geographic area (in thousands): Three Months Ended Six Months Ended June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017 Net sales: United States $ 217,884 $ 215,180 $ 421,885 $ 425,328 Other Europe, Middle East and Africa 44,013 38,301 48,851 76,341 Germany 23,888 20,673 88,397 42,031 Australia and Asia Pacific 11,306 11,921 22,859 22,764 Canada 6,320 6,418 12,462 12,360 Latin America 1,426 2,253 3,012 4,311 $ 304,837 $ 294,746 $ 597,466 $ 583,135

SUPPLEMENTAL GUARANTOR CONDENSE

SUPPLEMENTAL GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS	6 Months Ended
	Jun. 30, 2018
Organization Consolidation And Presentation Of Financial Statements [Abstract]
SUPPLEMENTAL GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS	17. SUPPLEMENTAL GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS DJOFL and its direct wholly-owned subsidiary, DJO Finance Corp. (DJO Finco), jointly issued the 8.125% Notes and 10.75% 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. 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 JUNE 30, 2018 (in thousands) DJOFL Guarantors Non- Guarantors Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 5,885 $ (3,354 ) $ 24,236 $ 22 $ 26,789 Accounts receivable, net — 137,237 42,374 — 179,611 Inventories, net — 143,997 39,023 (5,747 ) 177,273 Deferred tax assets, net — — — — — Prepaid expenses and other current assets 2,856 17,540 11,756 (8 ) 32,144 Current assets of discontinued operations — 511 — — 511 Total current assets 8,741 295,931 117,389 (5,733 ) 416,328 Property and equipment, net — 123,289 13,939 268 137,496 Goodwill — 808,898 101,329 (31,264 ) 878,963 Intangible assets, net — 577,289 7,979 — 585,268 Investment in subsidiaries 1,297,699 1,685,106 54,173 (3,036,978 ) — Intercompany receivables 280,100 — — (280,100 ) — Other non-current assets 834 1,834 2,574 — 5,242 Total assets $ 1,587,374 $ 3,492,347 $ 297,383 $ (3,353,807 ) $ 2,023,297 Liabilities and (Deficit) Equity Current liabilities: Accounts payable $ — $ 89,768 $ 15,369 $ 7 $ 105,144 Current portion of debt obligations 19,486 3,757 5,265 (2,486 ) $ 26,022 Other current liabilities 18,609 84,887 31,230 (40 ) 134,686 Total current liabilities 38,095 178,412 51,864 (2,519 ) 265,852 Long-term debt obligations 2,400,588 1,143 12,788 — 2,414,519 Deferred tax liabilities, net — 141,540 4,568 — 146,108 Intercompany payables, net — 129,459 57,021 (186,480 ) — Other long-term liabilities — 20,769 199 — 20,968 Total liabilities 2,438,683 471,323 126,440 (188,999 ) 2,847,447 Noncontrolling interests — — 2,571 — 2,571 Total membership (deficit) equity (851,309 ) 3,021,024 168,372 (3,164,808 ) (826,721 ) Total liabilities and (deficit) equity $ 1,587,374 $ 3,492,347 $ 297,383 $ (3,353,807 ) $ 2,023,297 DJO FINANCE LLC UNAUDITED CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2018 (in thousands) DJOFL Guarantors Non- Guarantors Eliminations Consolidated Net sales $ — $ 248,730 $ 91,212 $ (35,105 ) $ 304,837 Costs and operating expenses: Cost of sales (exclusive of amortization of intangible assets of $6,935 for three months ended June 30, 2018) — 96,817 66,325 (36,699 ) 126,443 Selling, general and administrative — 93,348 24,278 — 117,626 Research and development — 8,519 1,188 — 9,707 Amortization of intangible assets — 14,949 340 — 15,289 — 213,633 92,131 (36,699 ) 269,065 Operating income (loss) — 35,097 (919 ) 1,594 35,772 Other (expense) income: Interest (expense) income, net (45,607 ) 21 (193 ) — (45,779 ) Other (expense) income, net — (9,768 ) 10,822 — 1,054 Intercompany income (expense), net — 4,500 (6,801 ) 2,301 — Equity in income (loss) of subsidiaries, net 45,627 — — (45,627 ) — 20 (5,247 ) 3,828 (43,326 ) (44,725 ) Income (loss) before income taxes 20 29,850 2,909 (41,732 ) (8,953 ) Income tax provision — 3,119 1,516 — 4,635 Net income (loss) from continuing operations 20 26,731 1,393 (41,732 ) (13,588 ) Net income from discontinued operations — 178 — — 178 Net income (loss) 20 26,909 1,393 (41,732 ) (13,410 ) Net income attributable to noncontrolling interests — — (276 ) — (276 ) Net income (loss) attributable to DJOFL $ 20 $ 26,909 $ 1,117 $ (41,732 ) $ (13,686 ) DJO FINANCE LLC UNAUDITED CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2018 (in thousands) DJOFL Guarantors Non- Guarantors Eliminations Consolidated Net sales $ — $ 481,045 $ 184,239 $ (67,818 ) $ 597,466 Costs and operating expenses: Cost of sales (exclusive of amortization of intangible assets of $13,293 for the six months ended June 30, 2018) — 183,336 134,593 (71,550 ) 246,379 Selling, general and administrative — 183,169 49,773 — 232,942 Research and development — 16,744 2,244 — 18,988 Amortization of intangible assets — 29,198 690 — 29,888 — 412,447 187,300 (71,550 ) 528,197 Operating income (loss) — 68,598 (3,061 ) 3,732 69,269 Other (expense) income: Interest (expense) income, net (89,437 ) 67 (331 ) — (89,701 ) Other (expense) income, net — (22,349 ) 21,862 — (487 ) Intercompany income (expense), net — 5,867 (5,718 ) (149 ) — Equity in income (loss) of subsidiaries, net 71,889 — — (71,889 ) — (17,548 ) (16,415 ) 15,813 (72,038 ) (90,188 ) (Loss) income before income taxes (17,548 ) 52,183 12,752 (68,306 ) (20,919 ) Income tax provision — 5,413 4,606 — 10,019 Net (loss) income from continuing operations (17,548 ) 46,770 8,146 (68,306 ) (30,938 ) Net income from discontinued operations — 321 — — 321 Net (loss) income (17,548 ) 47,091 8,146 (68,306 ) (30,617 ) Net income attributable to noncontrolling interests — — (638 ) — (638 ) Net (loss) income attributable to DJOFL $ (17,548 ) $ 47,091 $ 7,508 $ (68,306 ) $ (31,255 ) DJO FINANCE LLC UNAUDITED CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE LOSS FOR THE THREE MONTHS ENDED JUNE 30, 2018 (in thousands ) DJOFL Guarantors Non- Guarantors Eliminations Consolidated Net (loss) income $ 20 $ 26,909 $ 1,393 $ (41,732 ) $ (13,410 ) Other comprehensive income (loss), net of taxes: Foreign currency translation adjustments, net of tax (benefit) of $(1,032) for the three months ended June 30, 2018 — — (8,636 ) — (8,636 ) Unrealized gain on cash flow hedges, net of tax (benefit) of $(471) for the three months ended June 30, 2018 640 — — — 640 Other comprehensive income 640 — (8,636 ) — (7,996 ) Comprehensive (loss) income 660 26,909 (7,243 ) (41,732 ) (21,406 ) Comprehensive income (loss) attributable to noncontrolling interests — — (136 ) — (136 ) Comprehensive (loss) income attributable to DJO Finance LLC $ 660 $ 26,909 $ (7,379 ) $ (41,732 ) $ (21,542 ) DJO FINANCE LLC UNAUDITED CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE LOSS FOR THE SIX MONTHS ENDED JUNE 30, 2018 (in thousands) DJOFL Guarantors Non- Guarantors Eliminations Consolidated Net (loss) income $ (17,548 ) $ 47,091 $ 8,146 $ (68,306 ) $ (30,617 ) Other comprehensive loss, net of taxes: Foreign currency translation adjustments, net of tax provision of $334 for the six months ended June 30, 2018 — — (7,134 ) — (7,134 ) Unrealized (loss) gain on cash flow hedges, net of tax provision of zero for the six months ended June 30, 2018 2,545 — — — 2,545 Other comprehensive income 2,545 — (7,134 ) — (4,648 ) Comprehensive (loss) income (15,003 ) 47,091 1,012 (68,306 ) (35,265 ) Comprehensive income attributable to noncontrolling interests — — (556 ) — (556 ) Comprehensive (loss) income attributable to DJO Finance LLC $ (15,003 ) $ 47,091 $ 456 $ (68,306 ) $ (35,821 ) DJO FINANCE LLC UNAUDITED CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2018 (in thousands) DJOFL Guarantors Non- Guarantors Eliminations Consolidated Cash Flows From Operating Activities: Net loss $ (17,548 ) $ 47,091 $ 8,146 $ (68,306 ) $ (30,617 ) Net income from discontinued operations — (321 ) — — $ (321 ) Adjustments to reconcile net cash (used in) provided by operating activities: Depreciation — 20,890 2,611 (13 ) 23,488 Amortization of intangible assets — 29,198 690 — 29,888 Amortization of debt issuance costs and non-cash interest expense 4,337 — — — 4,337 Stock-based compensation expense — 895 — — 895 Deferred purchase price consideration — 13,708 — — 13,708 Loss on disposal of assets, net — 412 130 1 543 Deferred income tax expense — (2,355 ) (403 ) — (2,758 ) Equity in (loss) income of subsidiaries, net (71,889 ) — — 71,889 — Changes in operating assets and liabilities, net of acquired assets and liabilities: Accounts receivable — 4,328 4,960 — 9,288 Inventories — (7,040 ) 1,597 (3,679 ) (9,122 ) Prepaid expenses and other assets (3,845 ) (3,182 ) (838 ) 220 (7,645 ) Accounts payable and other current liabilities 3,364 (28,167 ) (4,756 ) 6,763 (22,796 ) Net cash provided by (used in) continuing operating activities (85,581 ) 75,457 12,137 6,875 8,888 Net cash provided by discontinued operations — 321 — — 321 Net cash (used in) provided by operating activities (85,581 ) 75,778 12,137 6,875 9,209 Cash Flows From Investing Activities: Purchases of property and equipment — (16,079 ) (2,946 ) — (19,025 ) Acquisition of business and intangibles, net of cash acquired — (9,104 ) — — (9,104 ) Proceeds from disposal of assets — 220 28 — 248 Net cash used in investing activities from continuing operations — (24,963 ) (2,918 ) — (27,881 ) Cash Flows From Financing Activities: Intercompany 51,185 (39,814 ) (5,265 ) (6,106 ) — Proceeds from revolver borrowings 66,500 — 3 — 66,503 Proceeds from capital lease 15,000 — — — 15,000 Repayments of debt obligations (64,464 ) — (2,074 ) — (66,538 ) Dividend paid to minority interest — — — (482 ) (482 ) Net cash (used in) provided by financing activities 68,221 (39,814 ) (7,336 ) (6,588 ) 14,483 Effect of exchange rate changes on cash and cash equivalents — (1 ) (741 ) (265 ) (1,007 ) Net (decrease) increase in cash and cash equivalents (17,360 ) 11,000 1,142 22 (5,196 ) Cash and cash equivalents, beginning of year 23,245 (14,354 ) 23,094 — 31,985 Cash and cash equivalents, end of year $ 5,885 $ (3,354 ) $ 24,236 $ 22 $ 26,789 DJO FINANCE LLC UNAUDITED CONDENSED CONSOLIDATING BALANCE SHEETS AS OF JULY 1, 2017 (in thousands) DJOFL Guarantors Non- Guarantors Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 18,101 $ 4,106 $ 12,990 $ — $ 35,197 Accounts receivable, net — 124,074 45,983 — 170,057 Inventories, net — 117,329 33,203 (1,947 ) 148,585 Prepaid expenses and other current assets 103 14,170 7,026 1 21,300 Current assets of discontinued operations — 511 — — 511 Total current assets 18,204 260,190 99,202 (1,946 ) 375,650 Property and equipment, net — 120,033 13,894 (38 ) 133,889 Goodwill — 791,005 100,766 (31,174 ) 860,597 Intangible assets, net — 628,633 9,356 — 637,989 Investment in subsidiaries 1,297,699 1,677,336 53,060 (3,028,095 ) — Intercompany receivables 250,135 — — (250,135 ) — Other non-current assets — 2,545 2,595 (3 ) 5,137 Total assets $ 1,566,038 $ 3,479,742 $ 278,873 $ (3,311,391 ) $ 2,013,262 Liabilities and (Deficit) Equity Current liabilities: Accounts payable $ — $ 81,092 $ 12,422 $ — $ 93,514 Current portion of debt obligations 10,550 — 2,007 — 12,557 Other current liabilities 14,033 94,014 29,116 (2 ) 137,161 Total current liabilities 24,583 175,106 43,545 (2 ) 243,232 Long-term debt obligations 2,377,035 — 4,666 — 2,381,701 Deferred tax liabilities, net — 204,009 4,204 — 208,213 Intercompany payables, net — 205,147 109,909 (315,056 ) — Other long-term liabilities 1,612 13,951 181 — 15,744 Total liabilities 2,403,230 598,213 162,505 (315,058 ) 2,848,890 Noncontrolling interests — — 1,564 — 1,564 Total membership (deficit) equity (837,192 ) 2,881,529 114,804 (2,996,333 ) (837,192 ) Total liabilities and (deficit) equity $ 1,566,038 $ 3,479,742 $ 278,873 $ (3,311,391 ) $ 2,013,262 DJO FINANCE LLC UNAUDITED CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED JULY 1, 2017 (in thousands) DJOFL Guarantors Non - Guarantors Eliminations Consolidated Net sales $ — $ 249,021 $ 82,199 $ (36,474 ) $ 294,746 Costs and operating expenses: Cost of sales (exclusive of amortization of intangible assets of $6,980) — 96,622 77,009 (48,746 ) 124,885 Selling, general and administrative — 111,048 24,691 — 135,739 Research and development — 8,190 873 — 9,063 Amortization of intangible assets — 15,721 295 — 16,016 — 231,581 102,868 (48,746 ) 285,703 Operating income (loss) — 17,440 (20,669 ) 12,272 9,043 Other (expense) income: Interest (expense) income, net (43,082 ) 39 (25 ) — (43,068 ) Other (expense) income, net — (11,200 ) 12,096 — 896 Intercompany (expense) income, net — 742 (584 ) (158 ) — Equity in income of subsidiaries, net 8,699 — — (8,699 ) — (34,383 ) (10,419 ) 11,487 (8,857 ) (42,172 ) (Loss) income before income taxes (34,383 ) 7,021 (9,182 ) 3,415 (33,129 ) Income tax provision — 282 813 — 1,095 Net (loss) income from continuing operations (34,383 ) 6,739 (9,995 ) 3,415 (34,224 ) Net income from discontinued operations — 47 — — 47 Net (loss) income (34,383 ) 6,786 (9,995 ) 3,415 (34,177 ) Net income attributable to noncontrolling interests — — (206 ) — (206 ) Net (loss) income attributable to DJOFL $ (34,383 ) $ 6,786 $ (10,201 ) $ 3,415 $ (34,383 ) DJO FINANCE LLC UNAUDITED CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED JULY 1, 2017 (in thousands) DJOFL Guarantors Non - Guarantors Eliminations Consolidated Net sales $ — $ 496,493 $ 165,957 $ (79,315 ) $ 583,135 Costs and operating expenses: Cost of sales (exclusive of amortization of intangible assets of $13,961) — 188,428 152,937 (96,911 ) 244,454 Selling, general and administrative — 222,215 47,686 — 269,901 Research and development — 16,513 1,689 — 18,202 Amortization of intangible assets — 34,247 614 — 34,861 — 461,403 202,926 (96,911 ) 567,418 Operating income (loss) — 35,090 (36,969 ) 17,596 15,717 Other (expense) income: Interest (expense) income, net (85,803 ) 80 (32 ) — (85,755 ) Other (expense) income, net — (18,288 ) 19,472 — 1,184 Intercompany (expense) income, net — 289 (45 ) (244 ) — Equity in income of subsidiaries, net 11,451 — — (11,451 ) — (74,352 ) (17,919 ) 19,395 (11,695 ) (84,571 ) (Loss) income before income taxes (74,352 ) 17,171 (17,574 ) 5,901 (68,854 ) Income tax provision — 3,416 1,757 — 5,173 Net (loss) income from continuing operations (74,352 ) 13,755 (19,331 ) 5,901 (74,027 ) Net income from discontinued operations — 105 — — 105 Net (loss) income (74,352 ) 13,860 (19,331 ) 5,901 (73,922 ) Net income attributable to noncontrolling interests — — (430 ) — (430 ) Net (loss) income attributable to DJOFL $ (74,352 ) $ 13,860 $ (19,761 ) $ 5,901 $ (74,352 ) DJO FINANCE LLC UNAUDITED CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE LOSS FOR THE THREE MONTHS ENDED JULY 1, 2017 (in thousands) DJOFL Guarantors Non - Guarantors Eliminations Consolidated Net (loss) income $ (34,383 ) $ 6,786 $ (9,995 ) $ 3,415 $ (34,177 ) Other comprehensive loss, net of taxes: Foreign currency translation adjustments, net of tax provision of $4,080 — — 3,204 — 3,204 Unrealized gain on cash flow hedges, net of tax provision of $21 thousand (786 ) — — — (786 ) Other comprehensive income (786 ) — 3,204 — 2,418 Comprehensive (loss) income (35,169 ) 6,786 (6,791 ) 3,415 (31,759 ) Comprehensive income attributable to noncontrolling interests — — 768 — 768 Comprehensive (loss) income attributable to DJO Finance LLC $ (35,169 ) $ 6,786 $ (6,023 ) $ 3,415 $ (30,991 ) DJO FINANCE LLC UNAUDITED CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE LOSS FOR THE SIX MONTHS ENDED JULY 1, 2017 (in thousands) DJOFL Guarantors Non - Guarantors Eliminations Consolidated Net (loss) income $ (74,352 ) $ 13,860 $ (19,331 ) $ 5,901 $ (73,922 ) Other comprehensive loss, net of taxes: Foreign currency translation adjustments, net of tax provision of $4,192 — — 4,953 — 4,953 Unrealized loss on cash flow hedges, net of tax provision of $21 thousand 60 — — — 60 Other comprehensive loss 60 — 4,953 — 5,013 Comprehensive (loss) income (74,292 ) 13,860 (14,378 ) 5,901 (68,909 ) Comprehensive loss attributable to noncontrolling interests — — 515 — 515 Comprehensive (loss) income attributable to DJO Finance LLC $ (74,292 ) $ 13,860 $ (13,863 ) $ 5,901 $ (68,394 ) DJO FINANCE LLC UNAUDITED CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED July 1, 2017 (in thousands) DJOFL Guarantors Non - Guarantors Eliminations Consolidated Cash Flows from Operating Activities: Net (loss) income $ (74,352 ) $ 13,860 $ (19,331 ) $ 5,901 $ (73,922 ) Net loss from discontinued operations — (105 ) — — (105 ) Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: Depreciation — 19,412 2,457 (14 ) 21,855 Amortization of intangible assets — 34,247 614 — 34,861 Amortization of debt issuance costs and non-cash interest expense 4,073 — — — 4,073 Stock-based compensation expense — 846 — — 846 Gain on disposal of assets, net — 187 92 — 279 Deferred income tax expense (benefit) — 2,011 73 — 2,084 Equity in income (loss) of subsidiaries, net (11,451 ) — — 11,451 — Changes in operating assets and liabilities: Accounts receivable — 10,108 1,071 — 11,179 Inventories — 4,921 16,392 (18,949 ) 2,364 Prepaid expenses and other assets (62 ) 3,007 (582 ) 717 3,080 Accounts payable and other current liabilities (4,369 ) 39,731 (196 ) (3,665 ) 31,501 Net cash (used in) provided by continuing operating activities (86,161 ) 128,225 590 (4,559 ) 38,095 Net cash provided by discontinued operations — 105 — — 105 Net cash (used in) provided by operating activities (86,161 ) 128,330 590 (4,559 ) 38,200 Cash Flows from Investing Activities: Purchases of property and equipment — (20,596 ) (1,838 ) — (22,434 ) Net cash (used in) provided by investing activities from continuing operations — (20,596 ) (1,838 ) — (22,434 ) Cash Flows from Financing Activities: Intercompany 110,819 (103,256 ) (12,122 ) 4,559 — Proceeds from issuance of debt 29,000 — 6,556 — 35,556 Repayments of debt (48,275 ) — — — (48,275 ) Repurchase of common stock (3,600 ) — — — (3,600 ) Investment by parent 500 — — — 500 Dividend paid to minority interest — — (1,102 ) — (1,102 ) Net cash provided by (used in) financing activities 88,444 (103,256 ) (6,668 ) 4,559 (16,921 ) Effect of exchange rate changes on cash and cash equivalents — — 1,140 — 1,140 Net (decrease) increase in cash and cash equivalents 2,283 4,478 (6,776 ) — (15 ) Cash and cash equivalents at beginning of period 15,818 (372 ) 19,766 — 35,212 Cash and cash equivalents at end of period $ 18,101 $ 4,106 $ 12,990 $ — $ 35,197

ORGANIZATION AND BASIS OF PRE26

ORGANIZATION AND BASIS OF PRESENTATION (Policies)	6 Months Ended
	Jun. 30, 2018
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 clinical 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, shoulder and elbow. Our International segment offers all of our products to customers outside the United States. See Note 15 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 home electrotherapy devices, such as TENS devices for pain relief, other electrotherapy and orthopedic products and 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 Unaudited Condensed 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, 2017. We operate 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 half of 2018 had the same number of shipping days as the first half of 2017.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Adoption of New Accounting Standards On January 1, 2018, we adopted Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) The majority of our contracts are generally short term in nature. Revenue is recognized at the point of time when we transfer control of the good or service to the customer or patient. Under ASC 606, estimated uncollectible amounts due from self-pay patients, as well as co-pays, co-insurance and deductibles owed to us by patients with insurance are generally considered implicit price concessions and are now presented as a reduction of net revenue. Under prior guidance, these amounts were recognized as bad debt expense and were included in other operating costs. When estimating the variable consideration, we use historical collection experience to estimate amounts not expected to be collected. Conversely, subsequent changes in collectability due to a change in financial condition (i.e. bankruptcy) continues to be recognized as bad debt expense. The adoption of this standard did not have a material impact on our results of operations as the timing of revenue recognition under the new standard is not materially different from our previous revenue recognition policy. Based on our analysis of open contracts as of January 1, 2018, the cumulative effect of applying the new standard was not material. On January 1, 2018, we adopted ASU No. 2016-01, Financial Instruments-Overall (Subtopic 825-10 On January 1, 2018, we adopted ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments On January 1, 2018, we adopted ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory On January 1, 2018, we adopted ASU No. 2017-01 , Business Combinations (Topic 805): Clarifying the Definition of a Business On January 1, 2018, we adopted ASU No. 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting On January 1, 2018, we adopted ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities On April 1, 2018, we adopted ASU No. 2018-05, Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 Income Taxes  New Accounting Standards Issued, Not Yet Adopted In June 2018, the issued ASU 2018-07, Compensation - Stock Compensation (Topic 718) , Improvements to Nonemployee Share-Based Payment Accounting , an update that expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The guidance will be effective for us beginning January 1, 2020 with early adoption permitted. We are currently evaluating the impact that adopting this guidance will have on our Condensed Consolidated Financial Statements. In February 2018, the FASB issued ASU No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842)

ACCOUNTS RECEIVABLE RESERVES (T

ACCOUNTS RECEIVABLE RESERVES (Tables)	6 Months Ended
	Jun. 30, 2018
Receivables [Abstract]
Summary of Activity in Accounts Receivable Reserves for Doubtful Accounts	A summary of activity in our accounts receivable reserves for doubtful accounts is presented below (in thousands): Six Months Ended June 30, 2018 July 1, 2017 Balance, beginning of period $ 29,238 $ 36,070 Provision for doubtful accounts 1,214 10,533 Write-offs, net of recoveries (5,474 ) (17,137 ) Balance, end of period $ 24,978 $ 29,466

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Jun. 30, 2018
Inventory Disclosure [Abstract]
Summary of Inventories	Inventories consist of the following (in thousands): June 30, 2018 December 31, 2017 Components and raw materials $ 65,006 $ 67,220 Work in process 7,059 5,652 Finished goods 98,618 89,468 Inventory held on consignment 37,222 38,219 207,905 200,559 Inventory reserves (30,632 ) (31,422 ) $ 177,273 $ 169,137
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): Six Months Ended June 30, 2018 July 1, 2017 Balance, beginning of period $ 31,422 $ 38,312 Provision charged to costs of sales 4,827 2,550 Write-offs, net of recoveries (5,617 ) (9,012 ) Balance, end of period $ 30,632 $ 31,850

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	6 Months Ended
	Jun. 30, 2018
Business Combinations [Abstract]
Summary of Preliminary Purchase Price Allocation of the Fair Value of Assets Acquired And Liabilities Assumed	The following table summarizes the preliminary purchase price allocation of the fair value of the assets acquired and liabilities assumed as of the date of acquisition until we finalize the valuation of intangibles (in thousands): Accounts receivable, net $ 3,841 Inventories, net 1,132 Prepaid expenses and other assets 119 Property and equipment, net 192 Intangible assets 8,450 Goodwill 17,455 Current portion of long-term debt (1,143 ) Accounts payable (1,853 ) Accrued expenses (612 ) Long-term debt (3,757 ) Other short-term liabilities (20 ) Total purchase price $ 23,804

LONG-LIVED ASSETS (Tables)

LONG-LIVED ASSETS (Tables)	6 Months Ended
	Jun. 30, 2018
Goodwill And Intangible Assets Disclosure [Abstract]
Schedule of Changes in Carrying Amount of Goodwill	Changes in the carrying amount of goodwill for the six months ended June 30, 2018 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 $ 339,030 $ 1,121,118 Accumulated impairment losses (61,000 ) (148,600 ) (47,406 ) — (257,006 ) Goodwill, net of accumulated impairment losses at December 31, 2017 422,258 101,001 1,823 339,030 864,112 Current Year Activity: Foreign currency translation — — — (2,604 ) (2,604 ) Balance, end of period Acquisitions (Note 5) 17,455 — — — 17,455 Goodwill 483,258 249,601 49,229 336,426 1,118,514 Accumulated impairment losses (61,000 ) (148,600 ) (47,406 ) — (257,006 ) Goodwill, net of accumulated impairment losses at June 30, 2018 $ 439,713 $ 101,001 $ 1,823 $ 336,426 $ 878,963
Summary of Identifiable Intangible Assets	Identifiable intangible assets consisted of the following (in thousands): June 30, 2018 Gross Amount Accumulated Amortization Intangible Assets, Net Definite-lived intangible assets: Customer relationships $ 478,581 $ (415,404 ) $ 63,177 Patents and Technology 446,759 (315,964 ) 130,795 Trademarks and trade names 29,815 (19,980 ) 9,835 Distributor contracts and relationships 11,567 (5,284 ) 6,283 Non-compete agreements 6,672 (6,672 ) — Definite-lived intangible assets: $ 973,394 $ (763,304 ) $ 210,090 Indefinite-lived intangible assets: Trademarks and trade names 375,178 Net identifiable intangible assets $ 585,268 December 31, 2017 Gross Carrying Amount Accumulated Amortization Intangible Assets, Net Definite-lived intangible assets: Customer relationships $ 478,114 $ (402,005 ) $ 76,109 Patents and technology 446,894 (302,805 ) 144,089 Trademarks and trade names 29,851 (18,576 ) 11,275 Distributor contracts and relationships 4,805 (4,725 ) 80 Non-compete agreements 6,750 (6,750 ) — $ 966,414 $ (734,861 ) $ 231,553 Indefinite-lived intangible assets: Trademarks and trade names 375,535 Net identifiable intangible assets $ 607,088
Schedule of Estimated Amortization Expense	Based on our amortizable intangible asset balance as of June 30, 2018, we estimate that amortization expense will be as follows for the next five years and thereafter (in thousands): Remaining 2018 $ 31,280 2019 57,278 2020 38,138 2021 32,481 2022 28,680 Thereafter 22,233 $ 210,090

OTHER CURRENT LIABILITIES (Tabl

OTHER CURRENT LIABILITIES (Tables)	6 Months Ended
	Jun. 30, 2018
Other Liabilities Disclosure [Abstract]
Schedule of Other Current Liabilities	Other current liabilities consist of the following (in thousands): June 30, 2018 December 31, 2017 Accrued wages and related expenses $ 31,098 $ 41,482 Accrued commissions 14,710 16,994 Accrued rebates 9,984 12,896 Accrued other taxes 5,362 5,743 Accrued professional expenses 5,405 3,879 Income taxes payable 2,198 1,937 Derivative liability — 268 Other accrued liabilities 47,314 43,161 $ 116,071 $ 126,360

DERIVATIVE INSTRUMENTS (Tables)

DERIVATIVE INSTRUMENTS (Tables)	6 Months Ended
	Jun. 30, 2018
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 June 30, 2018 December 31, 2017 Derivative Assets: Interest rate cap agreements designated as cash flow hedges Other current assets $ 1,916 $ — Interest rate cap agreements designated as cash flow hedges Other long-term assets 834 84 $ 2,750 $ 84 Derivative Liabilities: Interest rate cap agreements designated as cash flow hedges Other current liabilities $ — $ 268 $ — $ 268
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 Six Months Ended Location June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017 Interest rate cap agreements designated as cash flow hedges Interest (income) expense, net $ (194 ) $ 410 $ (290 ) $ 705
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 Six Months Ended June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017 Interest rate cap agreements designated as cash flow hedges $ 640 $ (786 ) $ 2,545 $ 60

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 30, 2018
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 June 30, 2018 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 $ — $ 2,750 $ — $ 2,750 As of December 31, 2017 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 $ — $ 84 $ — $ 84 Liabilities: Interest rate cap agreements designated as cash flow hedges $ — $ 268 $ — $ 268

DEBT (Tables)

DEBT (Tables)	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Schedule of Debt Obligations	Debt obligations consist of the following (in thousands): June 30, 2018 December 31, 2017 Credit facilities: Revolving credit facility, net of unamortized debt issuance costs of $0.9 million and $1.2 million as of June 30, 2018 and December 31, 2017, respectively $ 86,582 $ 73,843 Term loan: $1,026.0 million Term Loan, net of unamortized debt issuance costs and original issuance discount of $6.9 million and $8.6 million as of June 30, 2018 and December 31, 2017, respectively 1,019,074 1,022,630 Notes: $1,015.0 million 8.125% Second Lien Notes, net of unamortized debt issuance costs and original issuance discount of $10.2 million and $11.6 million as of June 30, 2018 and December 31, 2017, respectively 1,004,833 1,003,382 $298.5 million 10.75% Third Lien Notes, net of unamortized debt issuance costs and original issuance discount of $3.9 million and $4.8 million as of June 30, 2018 and December 31, 2017, respectively 294,584 293,657 Capital lease obligations and other 35,468 20,608 Total debt 2,440,541 2,414,120 Current maturities (26,022 ) (15,936 ) Long-term debt $ 2,414,519 $ 2,398,184

STOCK OPTION PLANS AND STOCK-35

STOCK OPTION PLANS AND STOCK-BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2018
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 Six Months Ended June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017 Expected volatility 25.8 % 33.4 % 25.0-25.8 % 33.4 % Risk-free interest rate 2.9 % 2.0 % 2.8-2.9 % 2.0-2.2 % Expected years until exercise 6.5 6.3 6.0-6.5 6.3-7.4 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 Six Months Ended June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017 Cost of sales $ 78 $ 29 $ 157 $ 62 Operating expenses: Selling, general and administrative 379 361 758 782 Research and development (10 ) 2 (20 ) 2 $ 447 $ 392 $ 895 $ 846

REVENUE (Tables)

REVENUE (Tables)	6 Months Ended
	Jun. 30, 2018
Revenue From Contract With Customer [Abstract]
Summary of Disaggregation of Revenue by Major Sales Channel	The following tables disaggregates our revenue by major sales channel for the three and six months ended June 30, 2018 and the three and six months ended July 1, 2017 (in thousands): Three Months ended June 30, 2018 Segments Bracing & Vascular Recovery Sciences Surgical International Total Sales Channel Dealers & Distributors $ 48,937 $ 16,194 $ — $ 61,139 $ 126,270 Insurance 30,418 18,295 — 5,704 54,417 Direct 43,593 2,965 53,918 19,907 120,383 Other 3,564 — — 203 3,767 $ 126,512 $ 37,454 $ 53,918 $ 86,953 $ 304,837 Six Months ended June 30, 2018 Segments Bracing & Vascular Recovery Sciences Surgical International Total Sales Channel Dealers & Distributors $ 93,790 $ 31,851 $ — $ 124,216 $ 249,857 Insurance 55,638 35,208 — 11,735 102,581 Direct 84,644 6,288 107,537 39,180 237,649 Other 6,929 — — 450 7,379 $ 241,001 $ 73,347 $ 107,537 $ 175,581 $ 597,466 Three Months ended July 1, 2017 Segments Bracing & Vascular Recovery Sciences Surgical International Total Sales Channel Dealers & Distributors $ 48,937 $ 18,274 $ — $ 55,797 $ 123,008 Insurance 27,923 17,465 — 5,220 50,608 Direct 46,350 3,035 49,991 18,332 117,708 Other 3,205 — — 217 3,422 $ 126,415 $ 38,774 $ 49,991 $ 79,566 $ 294,746 Six Months ended July 1, 2017 Segments Bracing & Vascular Recovery Sciences Surgical International Total Sales Channel Dealers & Distributors $ 94,195 $ 36,527 $ — $ 111,774 $ 242,496 Insurance 54,929 34,614 — 10,274 99,817 Direct 93,190 6,136 99,583 35,341 234,250 Other 6,154 — — 418 6,572 $ 248,468 $ 77,277 $ 99,583 $ 157,807 $ 583,135
Disclosure of Impact under ASC 606 of Estimated Implicit Price Concessions on Net Revenue	The following table discloses the impact under ASC 606 which we adopted on January 1, 2018 of estimated implicit price concessions on our net revenue for the three and six months ended June 30, 2018 (in thousands); Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Net revenue as reported $ 304,837 $ 597,466 Estimated implicit price concessions 5,430 5,430 Net revenue excluding implicit price concessions $ 310,267 $ 602,896

SEGMENT AND GEOGRAPHIC INFORM37

SEGMENT AND GEOGRAPHIC INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2018
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 Six Months Ended June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017 Net sales: Bracing and Vascular $ 126,512 $ 126,415 $ 241,001 $ 248,468 Recovery Sciences 37,454 38,774 73,347 77,277 Surgical Implant 53,918 49,991 107,537 99,583 International 86,953 79,566 175,581 157,807 $ 304,837 $ 294,746 $ 597,466 $ 583,135 Operating income: Bracing and Vascular $ 29,257 $ 24,225 $ 49,255 $ 45,232 Recovery Sciences 9,656 10,709 18,249 19,616 Surgical Implant 11,166 10,062 22,930 18,202 International 19,436 13,509 38,849 27,119 Expenses not allocated to segments and eliminations (33,743 ) (49,462 ) (60,014 ) (94,452 ) $ 35,772 $ 9,043 $ 69,269 $ 15,717
Net Sales by Geographic Area	Following are our net sales by geographic area (in thousands): Three Months Ended Six Months Ended June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017 Net sales: United States $ 217,884 $ 215,180 $ 421,885 $ 425,328 Other Europe, Middle East and Africa 44,013 38,301 48,851 76,341 Germany 23,888 20,673 88,397 42,031 Australia and Asia Pacific 11,306 11,921 22,859 22,764 Canada 6,320 6,418 12,462 12,360 Latin America 1,426 2,253 3,012 4,311 $ 304,837 $ 294,746 $ 597,466 $ 583,135

SUPPLEMENTAL GUARANTOR CONDEN38

SUPPLEMENTAL GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables)	6 Months Ended
	Jun. 30, 2018
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 JUNE 30, 2018 (in thousands) DJOFL Guarantors Non- Guarantors Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 5,885 $ (3,354 ) $ 24,236 $ 22 $ 26,789 Accounts receivable, net — 137,237 42,374 — 179,611 Inventories, net — 143,997 39,023 (5,747 ) 177,273 Deferred tax assets, net — — — — — Prepaid expenses and other current assets 2,856 17,540 11,756 (8 ) 32,144 Current assets of discontinued operations — 511 — — 511 Total current assets 8,741 295,931 117,389 (5,733 ) 416,328 Property and equipment, net — 123,289 13,939 268 137,496 Goodwill — 808,898 101,329 (31,264 ) 878,963 Intangible assets, net — 577,289 7,979 — 585,268 Investment in subsidiaries 1,297,699 1,685,106 54,173 (3,036,978 ) — Intercompany receivables 280,100 — — (280,100 ) — Other non-current assets 834 1,834 2,574 — 5,242 Total assets $ 1,587,374 $ 3,492,347 $ 297,383 $ (3,353,807 ) $ 2,023,297 Liabilities and (Deficit) Equity Current liabilities: Accounts payable $ — $ 89,768 $ 15,369 $ 7 $ 105,144 Current portion of debt obligations 19,486 3,757 5,265 (2,486 ) $ 26,022 Other current liabilities 18,609 84,887 31,230 (40 ) 134,686 Total current liabilities 38,095 178,412 51,864 (2,519 ) 265,852 Long-term debt obligations 2,400,588 1,143 12,788 — 2,414,519 Deferred tax liabilities, net — 141,540 4,568 — 146,108 Intercompany payables, net — 129,459 57,021 (186,480 ) — Other long-term liabilities — 20,769 199 — 20,968 Total liabilities 2,438,683 471,323 126,440 (188,999 ) 2,847,447 Noncontrolling interests — — 2,571 — 2,571 Total membership (deficit) equity (851,309 ) 3,021,024 168,372 (3,164,808 ) (826,721 ) Total liabilities and (deficit) equity $ 1,587,374 $ 3,492,347 $ 297,383 $ (3,353,807 ) $ 2,023,297 DJO FINANCE LLC UNAUDITED CONDENSED CONSOLIDATING BALANCE SHEETS AS OF JULY 1, 2017 (in thousands) DJOFL Guarantors Non- Guarantors Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 18,101 $ 4,106 $ 12,990 $ — $ 35,197 Accounts receivable, net — 124,074 45,983 — 170,057 Inventories, net — 117,329 33,203 (1,947 ) 148,585 Prepaid expenses and other current assets 103 14,170 7,026 1 21,300 Current assets of discontinued operations — 511 — — 511 Total current assets 18,204 260,190 99,202 (1,946 ) 375,650 Property and equipment, net — 120,033 13,894 (38 ) 133,889 Goodwill — 791,005 100,766 (31,174 ) 860,597 Intangible assets, net — 628,633 9,356 — 637,989 Investment in subsidiaries 1,297,699 1,677,336 53,060 (3,028,095 ) — Intercompany receivables 250,135 — — (250,135 ) — Other non-current assets — 2,545 2,595 (3 ) 5,137 Total assets $ 1,566,038 $ 3,479,742 $ 278,873 $ (3,311,391 ) $ 2,013,262 Liabilities and (Deficit) Equity Current liabilities: Accounts payable $ — $ 81,092 $ 12,422 $ — $ 93,514 Current portion of debt obligations 10,550 — 2,007 — 12,557 Other current liabilities 14,033 94,014 29,116 (2 ) 137,161 Total current liabilities 24,583 175,106 43,545 (2 ) 243,232 Long-term debt obligations 2,377,035 — 4,666 — 2,381,701 Deferred tax liabilities, net — 204,009 4,204 — 208,213 Intercompany payables, net — 205,147 109,909 (315,056 ) — Other long-term liabilities 1,612 13,951 181 — 15,744 Total liabilities 2,403,230 598,213 162,505 (315,058 ) 2,848,890 Noncontrolling interests — — 1,564 — 1,564 Total membership (deficit) equity (837,192 ) 2,881,529 114,804 (2,996,333 ) (837,192 ) Total liabilities and (deficit) equity $ 1,566,038 $ 3,479,742 $ 278,873 $ (3,311,391 ) $ 2,013,262
Schedule of Condensed Consolidating Statements of Operations	DJO FINANCE LLC UNAUDITED CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2018 (in thousands) DJOFL Guarantors Non- Guarantors Eliminations Consolidated Net sales $ — $ 248,730 $ 91,212 $ (35,105 ) $ 304,837 Costs and operating expenses: Cost of sales (exclusive of amortization of intangible assets of $6,935 for three months ended June 30, 2018) — 96,817 66,325 (36,699 ) 126,443 Selling, general and administrative — 93,348 24,278 — 117,626 Research and development — 8,519 1,188 — 9,707 Amortization of intangible assets — 14,949 340 — 15,289 — 213,633 92,131 (36,699 ) 269,065 Operating income (loss) — 35,097 (919 ) 1,594 35,772 Other (expense) income: Interest (expense) income, net (45,607 ) 21 (193 ) — (45,779 ) Other (expense) income, net — (9,768 ) 10,822 — 1,054 Intercompany income (expense), net — 4,500 (6,801 ) 2,301 — Equity in income (loss) of subsidiaries, net 45,627 — — (45,627 ) — 20 (5,247 ) 3,828 (43,326 ) (44,725 ) Income (loss) before income taxes 20 29,850 2,909 (41,732 ) (8,953 ) Income tax provision — 3,119 1,516 — 4,635 Net income (loss) from continuing operations 20 26,731 1,393 (41,732 ) (13,588 ) Net income from discontinued operations — 178 — — 178 Net income (loss) 20 26,909 1,393 (41,732 ) (13,410 ) Net income attributable to noncontrolling interests — — (276 ) — (276 ) Net income (loss) attributable to DJOFL $ 20 $ 26,909 $ 1,117 $ (41,732 ) $ (13,686 ) DJO FINANCE LLC UNAUDITED CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2018 (in thousands) DJOFL Guarantors Non- Guarantors Eliminations Consolidated Net sales $ — $ 481,045 $ 184,239 $ (67,818 ) $ 597,466 Costs and operating expenses: Cost of sales (exclusive of amortization of intangible assets of $13,293 for the six months ended June 30, 2018) — 183,336 134,593 (71,550 ) 246,379 Selling, general and administrative — 183,169 49,773 — 232,942 Research and development — 16,744 2,244 — 18,988 Amortization of intangible assets — 29,198 690 — 29,888 — 412,447 187,300 (71,550 ) 528,197 Operating income (loss) — 68,598 (3,061 ) 3,732 69,269 Other (expense) income: Interest (expense) income, net (89,437 ) 67 (331 ) — (89,701 ) Other (expense) income, net — (22,349 ) 21,862 — (487 ) Intercompany income (expense), net — 5,867 (5,718 ) (149 ) — Equity in income (loss) of subsidiaries, net 71,889 — — (71,889 ) — (17,548 ) (16,415 ) 15,813 (72,038 ) (90,188 ) (Loss) income before income taxes (17,548 ) 52,183 12,752 (68,306 ) (20,919 ) Income tax provision — 5,413 4,606 — 10,019 Net (loss) income from continuing operations (17,548 ) 46,770 8,146 (68,306 ) (30,938 ) Net income from discontinued operations — 321 — — 321 Net (loss) income (17,548 ) 47,091 8,146 (68,306 ) (30,617 ) Net income attributable to noncontrolling interests — — (638 ) — (638 ) Net (loss) income attributable to DJOFL $ (17,548 ) $ 47,091 $ 7,508 $ (68,306 ) $ (31,255 ) DJO FINANCE LLC UNAUDITED CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED JULY 1, 2017 (in thousands) DJOFL Guarantors Non - Guarantors Eliminations Consolidated Net sales $ — $ 249,021 $ 82,199 $ (36,474 ) $ 294,746 Costs and operating expenses: Cost of sales (exclusive of amortization of intangible assets of $6,980) — 96,622 77,009 (48,746 ) 124,885 Selling, general and administrative — 111,048 24,691 — 135,739 Research and development — 8,190 873 — 9,063 Amortization of intangible assets — 15,721 295 — 16,016 — 231,581 102,868 (48,746 ) 285,703 Operating income (loss) — 17,440 (20,669 ) 12,272 9,043 Other (expense) income: Interest (expense) income, net (43,082 ) 39 (25 ) — (43,068 ) Other (expense) income, net — (11,200 ) 12,096 — 896 Intercompany (expense) income, net — 742 (584 ) (158 ) — Equity in income of subsidiaries, net 8,699 — — (8,699 ) — (34,383 ) (10,419 ) 11,487 (8,857 ) (42,172 ) (Loss) income before income taxes (34,383 ) 7,021 (9,182 ) 3,415 (33,129 ) Income tax provision — 282 813 — 1,095 Net (loss) income from continuing operations (34,383 ) 6,739 (9,995 ) 3,415 (34,224 ) Net income from discontinued operations — 47 — — 47 Net (loss) income (34,383 ) 6,786 (9,995 ) 3,415 (34,177 ) Net income attributable to noncontrolling interests — — (206 ) — (206 ) Net (loss) income attributable to DJOFL $ (34,383 ) $ 6,786 $ (10,201 ) $ 3,415 $ (34,383 ) DJO FINANCE LLC UNAUDITED CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED JULY 1, 2017 (in thousands) DJOFL Guarantors Non - Guarantors Eliminations Consolidated Net sales $ — $ 496,493 $ 165,957 $ (79,315 ) $ 583,135 Costs and operating expenses: Cost of sales (exclusive of amortization of intangible assets of $13,961) — 188,428 152,937 (96,911 ) 244,454 Selling, general and administrative — 222,215 47,686 — 269,901 Research and development — 16,513 1,689 — 18,202 Amortization of intangible assets — 34,247 614 — 34,861 — 461,403 202,926 (96,911 ) 567,418 Operating income (loss) — 35,090 (36,969 ) 17,596 15,717 Other (expense) income: Interest (expense) income, net (85,803 ) 80 (32 ) — (85,755 ) Other (expense) income, net — (18,288 ) 19,472 — 1,184 Intercompany (expense) income, net — 289 (45 ) (244 ) — Equity in income of subsidiaries, net 11,451 — — (11,451 ) — (74,352 ) (17,919 ) 19,395 (11,695 ) (84,571 ) (Loss) income before income taxes (74,352 ) 17,171 (17,574 ) 5,901 (68,854 ) Income tax provision — 3,416 1,757 — 5,173 Net (loss) income from continuing operations (74,352 ) 13,755 (19,331 ) 5,901 (74,027 ) Net income from discontinued operations — 105 — — 105 Net (loss) income (74,352 ) 13,860 (19,331 ) 5,901 (73,922 ) Net income attributable to noncontrolling interests — — (430 ) — (430 ) Net (loss) income attributable to DJOFL $ (74,352 ) $ 13,860 $ (19,761 ) $ 5,901 $ (74,352 )
Schedule of Condensed Consolidating Statements of Comprehensive Loss	DJO FINANCE LLC UNAUDITED CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE LOSS FOR THE THREE MONTHS ENDED JUNE 30, 2018 (in thousands ) DJOFL Guarantors Non- Guarantors Eliminations Consolidated Net (loss) income $ 20 $ 26,909 $ 1,393 $ (41,732 ) $ (13,410 ) Other comprehensive income (loss), net of taxes: Foreign currency translation adjustments, net of tax (benefit) of $(1,032) for the three months ended June 30, 2018 — — (8,636 ) — (8,636 ) Unrealized gain on cash flow hedges, net of tax (benefit) of $(471) for the three months ended June 30, 2018 640 — — — 640 Other comprehensive income 640 — (8,636 ) — (7,996 ) Comprehensive (loss) income 660 26,909 (7,243 ) (41,732 ) (21,406 ) Comprehensive income (loss) attributable to noncontrolling interests — — (136 ) — (136 ) Comprehensive (loss) income attributable to DJO Finance LLC $ 660 $ 26,909 $ (7,379 ) $ (41,732 ) $ (21,542 ) DJO FINANCE LLC UNAUDITED CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE LOSS FOR THE SIX MONTHS ENDED JUNE 30, 2018 (in thousands) DJOFL Guarantors Non- Guarantors Eliminations Consolidated Net (loss) income $ (17,548 ) $ 47,091 $ 8,146 $ (68,306 ) $ (30,617 ) Other comprehensive loss, net of taxes: Foreign currency translation adjustments, net of tax provision of $334 for the six months ended June 30, 2018 — — (7,134 ) — (7,134 ) Unrealized (loss) gain on cash flow hedges, net of tax provision of zero for the six months ended June 30, 2018 2,545 — — — 2,545 Other comprehensive income 2,545 — (7,134 ) — (4,648 ) Comprehensive (loss) income (15,003 ) 47,091 1,012 (68,306 ) (35,265 ) Comprehensive income attributable to noncontrolling interests — — (556 ) — (556 ) Comprehensive (loss) income attributable to DJO Finance LLC $ (15,003 ) $ 47,091 $ 456 $ (68,306 ) $ (35,821 ) DJO FINANCE LLC UNAUDITED CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE LOSS FOR THE THREE MONTHS ENDED JULY 1, 2017 (in thousands) DJOFL Guarantors Non - Guarantors Eliminations Consolidated Net (loss) income $ (34,383 ) $ 6,786 $ (9,995 ) $ 3,415 $ (34,177 ) Other comprehensive loss, net of taxes: Foreign currency translation adjustments, net of tax provision of $4,080 — — 3,204 — 3,204 Unrealized gain on cash flow hedges, net of tax provision of $21 thousand (786 ) — — — (786 ) Other comprehensive income (786 ) — 3,204 — 2,418 Comprehensive (loss) income (35,169 ) 6,786 (6,791 ) 3,415 (31,759 ) Comprehensive income attributable to noncontrolling interests — — 768 — 768 Comprehensive (loss) income attributable to DJO Finance LLC $ (35,169 ) $ 6,786 $ (6,023 ) $ 3,415 $ (30,991 ) DJO FINANCE LLC UNAUDITED CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE LOSS FOR THE SIX MONTHS ENDED JULY 1, 2017 (in thousands) DJOFL Guarantors Non - Guarantors Eliminations Consolidated Net (loss) income $ (74,352 ) $ 13,860 $ (19,331 ) $ 5,901 $ (73,922 ) Other comprehensive loss, net of taxes: Foreign currency translation adjustments, net of tax provision of $4,192 — — 4,953 — 4,953 Unrealized loss on cash flow hedges, net of tax provision of $21 thousand 60 — — — 60 Other comprehensive loss 60 — 4,953 — 5,013 Comprehensive (loss) income (74,292 ) 13,860 (14,378 ) 5,901 (68,909 ) Comprehensive loss attributable to noncontrolling interests — — 515 — 515 Comprehensive (loss) income attributable to DJO Finance LLC $ (74,292 ) $ 13,860 $ (13,863 ) $ 5,901 $ (68,394 )
Schedule of Condensed Consolidating Statements of Cash Flows	DJO FINANCE LLC UNAUDITED CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2018 (in thousands) DJOFL Guarantors Non- Guarantors Eliminations Consolidated Cash Flows From Operating Activities: Net loss $ (17,548 ) $ 47,091 $ 8,146 $ (68,306 ) $ (30,617 ) Net income from discontinued operations — (321 ) — — $ (321 ) Adjustments to reconcile net cash (used in) provided by operating activities: Depreciation — 20,890 2,611 (13 ) 23,488 Amortization of intangible assets — 29,198 690 — 29,888 Amortization of debt issuance costs and non-cash interest expense 4,337 — — — 4,337 Stock-based compensation expense — 895 — — 895 Deferred purchase price consideration — 13,708 — — 13,708 Loss on disposal of assets, net — 412 130 1 543 Deferred income tax expense — (2,355 ) (403 ) — (2,758 ) Equity in (loss) income of subsidiaries, net (71,889 ) — — 71,889 — Changes in operating assets and liabilities, net of acquired assets and liabilities: Accounts receivable — 4,328 4,960 — 9,288 Inventories — (7,040 ) 1,597 (3,679 ) (9,122 ) Prepaid expenses and other assets (3,845 ) (3,182 ) (838 ) 220 (7,645 ) Accounts payable and other current liabilities 3,364 (28,167 ) (4,756 ) 6,763 (22,796 ) Net cash provided by (used in) continuing operating activities (85,581 ) 75,457 12,137 6,875 8,888 Net cash provided by discontinued operations — 321 — — 321 Net cash (used in) provided by operating activities (85,581 ) 75,778 12,137 6,875 9,209 Cash Flows From Investing Activities: Purchases of property and equipment — (16,079 ) (2,946 ) — (19,025 ) Acquisition of business and intangibles, net of cash acquired — (9,104 ) — — (9,104 ) Proceeds from disposal of assets — 220 28 — 248 Net cash used in investing activities from continuing operations — (24,963 ) (2,918 ) — (27,881 ) Cash Flows From Financing Activities: Intercompany 51,185 (39,814 ) (5,265 ) (6,106 ) — Proceeds from revolver borrowings 66,500 — 3 — 66,503 Proceeds from capital lease 15,000 — — — 15,000 Repayments of debt obligations (64,464 ) — (2,074 ) — (66,538 ) Dividend paid to minority interest — — — (482 ) (482 ) Net cash (used in) provided by financing activities 68,221 (39,814 ) (7,336 ) (6,588 ) 14,483 Effect of exchange rate changes on cash and cash equivalents — (1 ) (741 ) (265 ) (1,007 ) Net (decrease) increase in cash and cash equivalents (17,360 ) 11,000 1,142 22 (5,196 ) Cash and cash equivalents, beginning of year 23,245 (14,354 ) 23,094 — 31,985 Cash and cash equivalents, end of year $ 5,885 $ (3,354 ) $ 24,236 $ 22 $ 26,789 DJO FINANCE LLC UNAUDITED CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED July 1, 2017 (in thousands) DJOFL Guarantors Non - Guarantors Eliminations Consolidated Cash Flows from Operating Activities: Net (loss) income $ (74,352 ) $ 13,860 $ (19,331 ) $ 5,901 $ (73,922 ) Net loss from discontinued operations — (105 ) — — (105 ) Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: Depreciation — 19,412 2,457 (14 ) 21,855 Amortization of intangible assets — 34,247 614 — 34,861 Amortization of debt issuance costs and non-cash interest expense 4,073 — — — 4,073 Stock-based compensation expense — 846 — — 846 Gain on disposal of assets, net — 187 92 — 279 Deferred income tax expense (benefit) — 2,011 73 — 2,084 Equity in income (loss) of subsidiaries, net (11,451 ) — — 11,451 — Changes in operating assets and liabilities: Accounts receivable — 10,108 1,071 — 11,179 Inventories — 4,921 16,392 (18,949 ) 2,364 Prepaid expenses and other assets (62 ) 3,007 (582 ) 717 3,080 Accounts payable and other current liabilities (4,369 ) 39,731 (196 ) (3,665 ) 31,501 Net cash (used in) provided by continuing operating activities (86,161 ) 128,225 590 (4,559 ) 38,095 Net cash provided by discontinued operations — 105 — — 105 Net cash (used in) provided by operating activities (86,161 ) 128,330 590 (4,559 ) 38,200 Cash Flows from Investing Activities: Purchases of property and equipment — (20,596 ) (1,838 ) — (22,434 ) Net cash (used in) provided by investing activities from continuing operations — (20,596 ) (1,838 ) — (22,434 ) Cash Flows from Financing Activities: Intercompany 110,819 (103,256 ) (12,122 ) 4,559 — Proceeds from issuance of debt 29,000 — 6,556 — 35,556 Repayments of debt (48,275 ) — — — (48,275 ) Repurchase of common stock (3,600 ) — — — (3,600 ) Investment by parent 500 — — — 500 Dividend paid to minority interest — — (1,102 ) — (1,102 ) Net cash provided by (used in) financing activities 88,444 (103,256 ) (6,668 ) 4,559 (16,921 ) Effect of exchange rate changes on cash and cash equivalents — — 1,140 — 1,140 Net (decrease) increase in cash and cash equivalents 2,283 4,478 (6,776 ) — (15 ) Cash and cash equivalents at beginning of period 15,818 (372 ) 19,766 — 35,212 Cash and cash equivalents at end of period $ 18,101 $ 4,106 $ 12,990 $ — $ 35,197

Organization and Basis of Pre39

Organization and Basis of Presentation - Additional Information (Detail) - Segment	6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Number of operating segments	4	4
Percentage of ownership interest in subsidiary Medireha GmbH	50.00%

Summary of Activity in Accounts

Summary of Activity in Accounts Receivable Reserves for Doubtful Accounts (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017
Receivables [Abstract]
Balance, beginning of period	$ 29,238	$ 36,070
Provision for doubtful accounts	1,214	10,533
Write-offs, net of recoveries	(5,474)	(17,137)
Balance, end of period	$ 24,978	$ 29,466

Summary of Inventories (Detail)

Summary of Inventories (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jul. 01, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Components and raw materials	$ 65,006	$ 67,220
Work in process	7,059	5,652
Finished goods	98,618	89,468
Inventory held on consignment	37,222	38,219
Inventory, Gross, Total	207,905	200,559
Inventory reserves	(30,632)	(31,422)	$ (31,850)	$ (38,312)
Inventories, net	$ 177,273	$ 169,137	$ 148,585

Summary of Activity in Inventor

Summary of Activity in Inventory Reserves (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017
Inventory Disclosure [Abstract]
Balance, beginning of period	$ 31,422	$ 38,312
Provision charged to costs of sales	4,827	2,550
Write-offs, net of recoveries	(5,617)	(9,012)
Balance, end of period	$ 30,632	$ 31,850

Acquisitions - Additional Infor

Acquisitions - Additional Information (Detail) - Contract Rights and Medical Billing Operations	Apr. 30, 2018USD ($)shares
Business Acquisition [Line Items]
Percentage of capital stock acquired	100.00%
Business acquisition, total consideration	$ 23,800,000
Business acquisition consideration consisting of debt re-paid	3,900,000
Business acquisition, cash	$ 5,200,000
Business acquisition, common stock issued | shares	42,528
Business acquisition, common stock issued, value	$ 700,000
Up to the Third Anniversary
Business Acquisition [Line Items]
Business acquisition, cash	$ 14,000,000

Summary of Preliminary Purchase

Summary of Preliminary Purchase Price Allocation of the Fair Value of Assets Acquired And Liabilities Assumed (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Apr. 30, 2018	Dec. 31, 2017	Jul. 01, 2017
Business Acquisition [Line Items]
Goodwill	$ 878,963		$ 864,112	$ 860,597
Contract Rights and Medical Billing Operations
Business Acquisition [Line Items]
Accounts receivable, net		$ 3,841
Inventories, net		1,132
Prepaid expenses and other assets		119
Property and equipment, net		192
Intangible assets		8,450
Goodwill		17,455
Current portion of long-term debt		(1,143)
Accounts payable		(1,853)
Accrued expenses		(612)
Long-term debt		(3,757)
Other short-term liabilities		(20)
Total purchase price		$ 23,804

Schedule of Changes in Carrying

Schedule of Changes in Carrying Amount of Goodwill (Detail) $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)
Goodwill [Line Items]
Goodwill, balance, beginning of period	$ 1,121,118
Accumulated impairment losses, balance, beginning of period	(257,006)
Goodwill, net of accumulated impairment losses, beginning of period	864,112
Foreign currency translation	(2,604)
Acquisitions (Note 5)	17,455
Goodwill, balance, end of period	1,118,514
Accumulated impairment losses, balance, end of period	(257,006)
Goodwill, net of accumulated impairment losses, end of period	878,963
Bracing and Vascular
Goodwill [Line Items]
Goodwill, balance, beginning of period	483,258
Accumulated impairment losses, balance, beginning of period	(61,000)
Goodwill, net of accumulated impairment losses, beginning of period	422,258
Acquisitions (Note 5)	17,455
Goodwill, balance, end of period	483,258
Accumulated impairment losses, balance, end of period	(61,000)
Goodwill, net of accumulated impairment losses, end of period	439,713
Recovery Sciences
Goodwill [Line Items]
Goodwill, balance, beginning of period	249,601
Accumulated impairment losses, balance, beginning of period	(148,600)
Goodwill, net of accumulated impairment losses, beginning of period	101,001
Goodwill, balance, end of period	249,601
Accumulated impairment losses, balance, end of period	(148,600)
Goodwill, net of accumulated impairment losses, end of period	101,001
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	339,030
Goodwill, net of accumulated impairment losses, beginning of period	339,030
Foreign currency translation	(2,604)
Goodwill, balance, end of period	336,426
Goodwill, net of accumulated impairment losses, end of period	$ 336,426

Summary of Identifiable Intangi

Summary of Identifiable Intangible Assets (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jul. 01, 2017
Finite Lived Intangible Assets [Line Items]
Definite-lived, gross carrying amount	$ 973,394	$ 966,414
Definite-lived, accumulated amortization	(763,304)	(734,861)
Definite-lived, intangible assets, net	210,090	231,553
Intangible assets, net	585,268	607,088	$ 637,989
Trademarks and Trade Names
Finite Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	375,178	375,535
Customer Relationships
Finite Lived Intangible Assets [Line Items]
Definite-lived, gross carrying amount	478,581	478,114
Definite-lived, accumulated amortization	(415,404)	(402,005)
Definite-lived, intangible assets, net	63,177	76,109
Patents and Technology
Finite Lived Intangible Assets [Line Items]
Definite-lived, gross carrying amount	446,759	446,894
Definite-lived, accumulated amortization	(315,964)	(302,805)
Definite-lived, intangible assets, net	130,795	144,089
Trademarks and Trade Names
Finite Lived Intangible Assets [Line Items]
Definite-lived, gross carrying amount	29,815	29,851
Definite-lived, accumulated amortization	(19,980)	(18,576)
Definite-lived, intangible assets, net	9,835	11,275
Distributor Contracts and Relationships
Finite Lived Intangible Assets [Line Items]
Definite-lived, gross carrying amount	11,567	4,805
Definite-lived, accumulated amortization	(5,284)	(4,725)
Definite-lived, intangible assets, net	6,283	80
Non-compete Agreements
Finite Lived Intangible Assets [Line Items]
Definite-lived, gross carrying amount	6,672	6,750
Definite-lived, accumulated amortization	$ (6,672)	$ (6,750)

Long Lived Assets - Additional

Long Lived Assets - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2018
Customer Relationships
Acquired Finite Lived Intangible Assets [Line Items]
Definite-lived intangible assets, weighted average useful lives	1 year 7 months 6 days
Patents and Technology
Acquired Finite Lived Intangible Assets [Line Items]
Definite-lived intangible assets, weighted average useful lives	4 years 10 months 24 days
Trademarks and Trade Names
Acquired Finite Lived Intangible Assets [Line Items]
Definite-lived intangible assets, weighted average useful lives	3 years 4 months 24 days

Schedule of Estimated Amortizat

Schedule of Estimated Amortization Expense (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
Remaining 2,018	$ 31,280
2,019	57,278
2,020	38,138
2,021	32,481
2,022	28,680
Thereafter	22,233
Definite-lived, intangible assets, net	$ 210,090	$ 231,553

Schedule of Other Current Liabi

Schedule of Other Current Liabilities (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Other Liabilities Disclosure [Abstract]
Accrued wages and related expenses	$ 31,098	$ 41,482
Accrued commissions	14,710	16,994
Accrued rebates	9,984	12,896
Accrued other taxes	5,362	5,743
Accrued professional expenses	5,405	3,879
Income taxes payable	2,198	1,937
Derivative liability		268
Other accrued liabilities	47,314	43,161
Other current liabilities	$ 116,071	$ 126,360

Summary of Location and Fair Va

Summary of Location and Fair Value of Derivative Instruments in Condensed Consolidated Balance Sheets (Detail) - Designated as Hedging Instrument - Interest Rate Cap - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Derivatives, Fair Value [Line Items]
Derivative Assets	$ 2,750	$ 84
Derivative Liabilities		268
Other Current Assets
Derivatives, Fair Value [Line Items]
Derivative Assets	1,916
Other Long-term Assets
Derivatives, Fair Value [Line Items]
Derivative Assets	$ 834	84
Other Current Liabilities
Derivatives, Fair Value [Line Items]
Derivative Liabilities		$ 268

Summary of Effect of Derivative

Summary of Effect of Derivative Instruments on Condensed Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Designated as Hedging Instrument | Interest Rate Cap | Interest (Income) Expense, net | Cash Flow Hedges
Derivative Instruments, Gain (Loss) [Line Items]
Effect of derivative instruments	$ (194)	$ 410	$ (290)	$ 705

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) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Designated as Hedging Instrument | Interest Rate Cap | Cash Flow Hedges
Derivative Instruments, Gain (Loss) [Line Items]
Pre-tax loss on derivative instruments	$ 640	$ (786)	$ 2,545	$ 60

Schedule of Assets and Liabilit

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value on Recurring Basis - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate cap agreements designated as cash flow hedges, assets	$ 2,750	$ 84
Interest rate cap agreements designated as cash flow hedges, liabilities		268
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, assets	$ 2,750	84
Interest rate cap agreements designated as cash flow hedges, liabilities		$ 268

Schedule of Debt Obligations (D

Schedule of Debt Obligations (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jul. 01, 2017
Debt Instrument [Line Items]
Debt	$ 2,440,541	$ 2,414,120
Capital lease obligations and other	35,468	20,608
Current maturities	(26,022)	(15,936)	$ (12,557)
Long-term debt	2,414,519	2,398,184	$ 2,381,701
Credit Facilities | Revolving Credit Facility
Debt Instrument [Line Items]
Debt	86,582	73,843
Term Loan
Debt Instrument [Line Items]
Debt	1,019,074	1,022,630
8.125% Second Lien Notes
Debt Instrument [Line Items]
Debt	1,004,833	1,003,382
10.75% Third Lien Notes
Debt Instrument [Line Items]
Debt	$ 294,584	$ 293,657

Schedule of Debt Obligations (P

Schedule of Debt Obligations (Parenthetical) (Detail) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017	May 07, 2015
Debt Instrument [Line Items]
Unamortized debt issuance costs	$ 7	$ 8.6
Credit Facilities | Revolving Credit Facility
Debt Instrument [Line Items]
Unamortized debt issuance costs	0.9	1.2
Term Loan
Debt Instrument [Line Items]
Debt instrument, face amount	1,026		$ 1,055
Unamortized debt issuance costs and original issue discount	6.9	8.6
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	$ 10.2	11.6
Debt instrument, stated percentage rate	8.125%		8.125%
10.75% Third Lien Notes
Debt Instrument [Line Items]
Debt instrument, face amount	$ 298.5		$ 289.7
Unamortized debt issuance costs and original issue discount	$ 3.9	$ 4.8
Debt instrument, stated percentage rate	10.75%		10.75%

Debt - Additional Information (

Debt - Additional Information (Detail) - USD ($)	6 Months Ended
	Jun. 30, 2018	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
Travel and Entertainment Corporate Card Program
Debt Instrument [Line Items]
Letter of credit outstanding	5,700,000
Collateral Requirements
Debt Instrument [Line Items]
Letter of credit outstanding	500,000
Term Loan
Debt Instrument [Line Items]
Debt instrument, face amount	1,026,000,000		$ 1,055,000,000
Loan increment			150,000,000
Debt instrument, market value	$ 1,022,100,000
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	352.00%
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	$ 87,500,000
Revolving loan balance	$ 86,500,000
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	5.20%

Debt (Senior Notes, Other Debt

Debt (Senior Notes, Other Debt and Debt Issuance Costs) - Additional Information (Detail) $ in Thousands, € in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018USD ($)InstallmentLoan	Jul. 01, 2017USD ($)	Jun. 30, 2018USD ($)InstallmentLoan	Jul. 01, 2017USD ($)	Jun. 30, 2018EUR (€)InstallmentLoan	Dec. 31, 2017USD ($)	May 07, 2015USD ($)
Debt Instrument [Line Items]
Proceeds from provided on capital lease			$ 15,000
Unamortized debt issuance costs	$ 7,000		7,000			$ 8,600
Amortization of debt issuance costs	$ 800	$ 800	1,600	$ 1,500
Equipment and Other Assets | Surgical Segment
Debt Instrument [Line Items]
Proceeds from provided on capital lease			$ 15,000
Capital lease payment, number of installment | Installment	21		21		21
Capital Lease | Equipment and Other Assets | Surgical Segment
Debt Instrument [Line Items]
Lease expiration date			Feb. 1, 2020
New Term Loans
Debt Instrument [Line Items]
Debt instrument maturity date			May 31, 2020
Number of loans | Loan	2		2		2
New Term Loans | One Month Euribor Rate
Debt Instrument [Line Items]
Revolving Credit Facility, percentage points added to the reference rate			0.40%
New Term Loan Two
Debt Instrument [Line Items]
Debt instrument, face amount	$ 14,000		$ 14,000		€ 12
New Term Loan One
Debt Instrument [Line Items]
Debt instrument, face amount	7,000		7,000		€ 6
8.125% Second Lien Notes
Debt Instrument [Line Items]
Debt instrument, face amount	$ 1,015,000		$ 1,015,000				$ 1,015,000
Debt instrument, stated percentage rate	8.125%		8.125%		8.125%		8.125%
Debt instrument maturity date			Jun. 15, 2021
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%		8.125%		8.125%
Debt instrument, market value	$ 1,029,300		$ 1,029,300
8.125% Second Lien Notes | First Lien Credit Facilities
Debt Instrument [Line Items]
Debt instrument, stated percentage rate	8.125%		8.125%		8.125%
10.75% Third Lien Notes
Debt Instrument [Line Items]
Debt instrument, face amount	$ 298,500		$ 298,500				$ 289,700
Debt instrument, stated percentage rate	10.75%		10.75%		10.75%		10.75%
Debt instrument maturity date			Apr. 15, 2020
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%		10.75%		10.75%
Debt instrument, market value	$ 292,500		$ 292,500
9.75% Senior Subordinated Notes
Debt Instrument [Line Items]
Debt instrument, stated percentage rate	9.75%		9.75%		9.75%

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Income tax provision	$ 4,635	$ 1,095	$ 10,019	$ 5,173
(Loss) income before income taxes	$ (8,953)	$ (33,129)	$ (20,919)	$ (68,854)
Effective tax rate	(51.80%)	(3.30%)	(47.90%)	(7.50%)
Gross unrecognized tax benefits	$ 18,600		$ 18,600		$ 16,800
Change in unrecognized tax benefits			1,800
Accrued interest and penalties related to unrecognized tax benefits	3,300		3,300
Expected decrease in unrecognized tax benefits in the next twelve months	400		400
Foreign and U.S. state unrecognized tax benefits impacting effective tax rate	$ 7,000		$ 7,000
Federal statutory income tax rate			21.00%		35.00%

Stock Option Plans and Stock-59

Stock Option Plans and Stock-Based Compensation - Additional Information (Detail) - $ / shares	1 Months Ended	6 Months Ended		12 Months Ended
	Sep. 30, 2015	Jun. 30, 2018	Jul. 01, 2017	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
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.
2016 Vested Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted shares expiration period		10 years
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted stock options		1,163,000	615,000
Market Return Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted stock options		976,333	467,500
Time-Based Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted stock options		186,667	147,500
Option granted, weighted average grant date fair value		$ 6.15	$ 6.10
Director Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted stock options		9,200	13,800
Option granted, weighted average grant date fair value		$ 6.15	$ 6.59
Share Based Compensation Award Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock vest percentage	33.33%	33.33%		33.33%
Share Based Compensation Award Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock vest percentage	66.67%	33.33%		66.67%
Share Based Compensation Award Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock vest percentage		33.33%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Money on invested capital multiple	225.00%			150.00%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Money on invested capital multiple	250.00%			225.00%
2007 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available to grant		10,575,529
2007 Plan | 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%
2007 Plan | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted shares expiration period		10 years

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		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	25.80%	33.40%		33.40%
Expected volatility, minimum			25.00%
Expected volatility, maximum			25.80%
Risk-free interest rate	2.90%	2.00%
Risk-free interest rate, minimum			2.80%	2.00%
Risk-free interest rate, maximum			2.90%	2.20%
Expected years until exercise	6 years 6 months	6 years 3 months 18 days
Expected dividend yield	0.00%	0.00%	0.00%	0.00%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected years until exercise			6 years	6 years 3 months 18 days
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected years until exercise			6 years 6 months	7 years 4 months 24 days

Schedule of Recorded Non-cash S

Schedule of Recorded Non-cash Stock-based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Non-cash stock-based compensation expense	$ 447	$ 392	$ 895	$ 846
Cost of Sales
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Non-cash stock-based compensation expense	78	29	157	62
Selling, General and Administrative Expenses
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Non-cash stock-based compensation expense	379	361	758	782
Research and Development Expense
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Non-cash stock-based compensation expense	$ (10)	$ 2	$ (20)	$ 2

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Detail)	Nov. 20, 2017
Blackstone Management Partners LLC
Related Party Transaction [Line Items]
Transaction and monitoring fee agreement termination effective date	Nov. 20, 2017

Revenue - Summary of Disaggrega

Revenue - Summary of Disaggregation of Revenue by Major Sales Channel (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Disaggregation Of Revenue [Line Items]
Total revenue	$ 304,837	$ 294,746	$ 597,466	$ 583,135
Bracing and Vascular
Disaggregation Of Revenue [Line Items]
Total revenue	126,512	126,415	241,001	248,468
Recovery Sciences
Disaggregation Of Revenue [Line Items]
Total revenue	37,454	38,774	73,347	77,277
Surgical Implant
Disaggregation Of Revenue [Line Items]
Total revenue	53,918	49,991	107,537	99,583
International
Disaggregation Of Revenue [Line Items]
Total revenue	86,953	79,566	175,581	157,807
Dealers & Distributors
Disaggregation Of Revenue [Line Items]
Total revenue	126,270	123,008	249,857	242,496
Dealers & Distributors | Bracing and Vascular
Disaggregation Of Revenue [Line Items]
Total revenue	48,937	48,937	93,790	94,195
Dealers & Distributors | Recovery Sciences
Disaggregation Of Revenue [Line Items]
Total revenue	16,194	18,274	31,851	36,527
Dealers & Distributors | International
Disaggregation Of Revenue [Line Items]
Total revenue	61,139	55,797	124,216	111,774
Insurance
Disaggregation Of Revenue [Line Items]
Total revenue	54,417	50,608	102,581	99,817
Insurance | Bracing and Vascular
Disaggregation Of Revenue [Line Items]
Total revenue	30,418	27,923	55,638	54,929
Insurance | Recovery Sciences
Disaggregation Of Revenue [Line Items]
Total revenue	18,295	17,465	35,208	34,614
Insurance | International
Disaggregation Of Revenue [Line Items]
Total revenue	5,704	5,220	11,735	10,274
Direct
Disaggregation Of Revenue [Line Items]
Total revenue	120,383	117,708	237,649	234,250
Direct | Bracing and Vascular
Disaggregation Of Revenue [Line Items]
Total revenue	43,593	46,350	84,644	93,190
Direct | Recovery Sciences
Disaggregation Of Revenue [Line Items]
Total revenue	2,965	3,035	6,288	6,136
Direct | Surgical Implant
Disaggregation Of Revenue [Line Items]
Total revenue	53,918	49,991	107,537	99,583
Direct | International
Disaggregation Of Revenue [Line Items]
Total revenue	19,907	18,332	39,180	35,341
Other
Disaggregation Of Revenue [Line Items]
Total revenue	3,767	3,422	7,379	6,572
Other | Bracing and Vascular
Disaggregation Of Revenue [Line Items]
Total revenue	3,564	3,205	6,929	6,154
Other | International
Disaggregation Of Revenue [Line Items]
Total revenue	$ 203	$ 217	$ 450	$ 418

Revenue - Disclosure of Impact

Revenue - Disclosure of Impact under ASC 606 of Estimated Implicit Price Concessions on Net Revenue (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Revenue From Contract With Customer [Abstract]
Net revenue as reported	$ 304,837	$ 294,746	$ 597,466	$ 583,135
Estimated implicit price concessions	5,430		5,430
Net revenue excluding implicit price concessions	$ 310,267		$ 602,896

Revenue - Additional Informatio

Revenue - Additional Information (Detail) - Topic 606 $ in Millions	Jun. 30, 2018USD ($)
Revenue From Contract With Customer [Line Items]
Refund liability	$ 1.4
Allowance for sales discounts and other allowances	$ 4.7

Segment and Geographic Inform66

Segment and Geographic Information - Additional Information (Detail) - Segment	6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017
Segment Reporting [Abstract]
Number of operating segments	4	4

Information Regarding Reportabl

Information Regarding Reportable Business Segments (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Net sales:
Net sales	$ 304,837	$ 294,746	$ 597,466	$ 583,135
Operating income:
Operating income	35,772	9,043	69,269	15,717
Operating Segments | Bracing and Vascular
Net sales:
Net sales	126,512	126,415	241,001	248,468
Operating income:
Operating income	29,257	24,225	49,255	45,232
Operating Segments | Recovery Sciences
Net sales:
Net sales	37,454	38,774	73,347	77,277
Operating income:
Operating income	9,656	10,709	18,249	19,616
Operating Segments | Surgical Implant
Net sales:
Net sales	53,918	49,991	107,537	99,583
Operating income:
Operating income	11,166	10,062	22,930	18,202
Operating Segments | International
Net sales:
Net sales	86,953	79,566	175,581	157,807
Operating income:
Operating income	19,436	13,509	38,849	27,119
Expenses not allocated to segments and eliminations
Operating income:
Operating income	$ (33,743)	$ (49,462)	$ (60,014)	$ (94,452)

Net Sales by Geographic Area (D

Net Sales by Geographic Area (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Net sales:
Sales revenue goods net	$ 304,837	$ 294,746	$ 597,466	$ 583,135
United States
Net sales:
Sales revenue goods net	217,884	215,180	421,885	425,328
Other Europe, Middle East, and Africa
Net sales:
Sales revenue goods net	44,013	38,301	48,851	76,341
Germany
Net sales:
Sales revenue goods net	23,888	20,673	88,397	42,031
Australia And Asia Pacific
Net sales:
Sales revenue goods net	11,306	11,921	22,859	22,764
Canada
Net sales:
Sales revenue goods net	6,320	6,418	12,462	12,360
Latin America
Net sales:
Sales revenue goods net	$ 1,426	$ 2,253	$ 3,012	$ 4,311

Supplemental Guarantor Conden69

Supplemental Guarantor Condensed Consolidating Financial Statements - Additional Information (Detail) - DJO Finco	Jun. 30, 2018
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%

Schedule of Condensed Consolida

Schedule of Condensed Consolidating Balance Sheets (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jul. 01, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 26,789	$ 31,985	$ 35,197	$ 35,212
Accounts receivable, net	179,611	190,324	170,057
Inventories, net	177,273	169,137	148,585
Prepaid expenses and other current assets	32,144	20,218	21,300
Current assets of discontinued operations	511	511	511
Total current assets	416,328	412,175	375,650
Property and equipment, net	137,496	133,522	133,889
Goodwill	878,963	864,112	860,597
Intangible assets, net	585,268	607,088	637,989
Other non-current assets	5,242	5,128	5,137
Total assets	2,023,297	2,022,025	2,013,262
Current liabilities:
Accounts payable	105,144	98,331	93,514
Current portion of debt obligations	26,022	15,936	12,557
Other current liabilities	134,686		137,161
Total current liabilities	265,852	258,642	243,232
Long-term debt obligations	2,414,519	2,398,184	2,381,701
Deferred tax liabilities, net	146,108	142,597	208,213
Other long-term liabilities	20,968	13,080	15,744
Total liabilities	2,847,447	2,812,503	2,848,890
Noncontrolling interests	2,571	2,015	1,564
Total membership (deficit) equity	(826,721)	(792,493)	(837,192)
Total liabilities and deficit	2,023,297	2,022,025	2,013,262
Reportable Legal Entities | DJOFL
Current assets:
Cash and cash equivalents	5,885	23,245	18,101	15,818
Prepaid expenses and other current assets	2,856		103
Total current assets	8,741		18,204
Investment in subsidiaries	1,297,699		1,297,699
Intercompany receivables	280,100		250,135
Other non-current assets	834
Total assets	1,587,374		1,566,038
Current liabilities:
Current portion of debt obligations	19,486		10,550
Other current liabilities	18,609		14,033
Total current liabilities	38,095		24,583
Long-term debt obligations	2,400,588		2,377,035
Other long-term liabilities			1,612
Total liabilities	2,438,683		2,403,230
Total membership (deficit) equity	(851,309)		(837,192)
Total liabilities and deficit	1,587,374		1,566,038
Reportable Legal Entities | Guarantors
Current assets:
Cash and cash equivalents	(3,354)	(14,354)	4,106	(372)
Accounts receivable, net	137,237		124,074
Inventories, net	143,997		117,329
Prepaid expenses and other current assets	17,540		14,170
Current assets of discontinued operations	511		511
Total current assets	295,931		260,190
Property and equipment, net	123,289		120,033
Goodwill	808,898		791,005
Intangible assets, net	577,289		628,633
Investment in subsidiaries	1,685,106		1,677,336
Other non-current assets	1,834		2,545
Total assets	3,492,347		3,479,742
Current liabilities:
Accounts payable	89,768		81,092
Current portion of debt obligations	3,757
Other current liabilities	84,887		94,014
Total current liabilities	178,412		175,106
Long-term debt obligations	1,143
Deferred tax liabilities, net	141,540		204,009
Intercompany payables, net	129,459		205,147
Other long-term liabilities	20,769		13,951
Total liabilities	471,323		598,213
Total membership (deficit) equity	3,021,024		2,881,529
Total liabilities and deficit	3,492,347		3,479,742
Reportable Legal Entities | Non-Guarantors
Current assets:
Cash and cash equivalents	24,236	$ 23,094	12,990	$ 19,766
Accounts receivable, net	42,374		45,983
Inventories, net	39,023		33,203
Prepaid expenses and other current assets	11,756		7,026
Total current assets	117,389		99,202
Property and equipment, net	13,939		13,894
Goodwill	101,329		100,766
Intangible assets, net	7,979		9,356
Investment in subsidiaries	54,173		53,060
Other non-current assets	2,574		2,595
Total assets	297,383		278,873
Current liabilities:
Accounts payable	15,369		12,422
Current portion of debt obligations	5,265		2,007
Other current liabilities	31,230		29,116
Total current liabilities	51,864		43,545
Long-term debt obligations	12,788		4,666
Deferred tax liabilities, net	4,568		4,204
Intercompany payables, net	57,021		109,909
Other long-term liabilities	199		181
Total liabilities	126,440		162,505
Noncontrolling interests	2,571		1,564
Total membership (deficit) equity	168,372		114,804
Total liabilities and deficit	297,383		278,873
Eliminations
Current assets:
Cash and cash equivalents	22
Inventories, net	(5,747)		(1,947)
Prepaid expenses and other current assets	(8)		1
Total current assets	(5,733)		(1,946)
Property and equipment, net	268		(38)
Goodwill	(31,264)		(31,174)
Investment in subsidiaries	(3,036,978)		(3,028,095)
Intercompany receivables	(280,100)		(250,135)
Other non-current assets			(3)
Total assets	(3,353,807)		(3,311,391)
Current liabilities:
Accounts payable	7
Current portion of debt obligations	(2,486)
Other current liabilities	(40)		(2)
Total current liabilities	(2,519)		(2)
Intercompany payables, net	(186,480)		(315,056)
Total liabilities	(188,999)		(315,058)
Total membership (deficit) equity	(3,164,808)		(2,996,333)
Total liabilities and deficit	$ (3,353,807)		$ (3,311,391)

Schedule of Condensed Consoli71

Schedule of Condensed Consolidating Statements of Operations (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Net sales	$ 304,837	$ 294,746	$ 597,466	$ 583,135
Costs and operating expenses:
Cost of sales (exclusive of amortization of intangible assets of $6,935 and $13,293 for the three and six months ended June 30, 2018 and $6,980 and $13,961 for the three and six months ended July 1, 2017, respectively)	126,443	124,885	246,379	244,454
Selling, general and administrative	117,626	135,739	232,942	269,901
Research and development	9,707	9,063	18,988	18,202
Amortization of intangible assets	15,289	16,016	29,888	34,861
Costs and Expenses, Total	269,065	285,703	528,197	567,418
Operating income	35,772	9,043	69,269	15,717
Other (expense) income:
Interest (expense) income, net	(45,779)	(43,068)	(89,701)	(85,755)
Other (expense) income, net	1,054	896	(487)	1,184
Nonoperating Income (Expense), Total	(44,725)	(42,172)	(90,188)	(84,571)
Loss before income taxes	(8,953)	(33,129)	(20,919)	(68,854)
Income tax provision	4,635	1,095	10,019	5,173
Net loss from continuing operations	(13,588)	(34,224)	(30,938)	(74,027)
Net income from discontinued operations	178	47	321	105
Net loss	(13,410)	(34,177)	(30,617)	(73,922)
Net income attributable to noncontrolling interests	(276)	(206)	(638)	(430)
Net loss attributable to DJO Finance LLC	(13,686)	(34,383)	(31,255)	(74,352)
Reportable Legal Entities | DJOFL
Other (expense) income:
Interest (expense) income, net	(45,607)	(43,082)	(89,437)	(85,803)
Equity in income (loss) of subsidiaries, net	45,627	8,699	71,889	11,451
Nonoperating Income (Expense), Total	20	(34,383)	(17,548)	(74,352)
Loss before income taxes	20	(34,383)	(17,548)	(74,352)
Net loss from continuing operations	20	(34,383)	(17,548)	(74,352)
Net loss	20	(34,383)	(17,548)	(74,352)
Net loss attributable to DJO Finance LLC	20	(34,383)	(17,548)	(74,352)
Reportable Legal Entities | Guarantors
Net sales	248,730	249,021	481,045	496,493
Costs and operating expenses:
Cost of sales (exclusive of amortization of intangible assets of $6,935 and $13,293 for the three and six months ended June 30, 2018 and $6,980 and $13,961 for the three and six months ended July 1, 2017, respectively)	96,817	96,622	183,336	188,428
Selling, general and administrative	93,348	111,048	183,169	222,215
Research and development	8,519	8,190	16,744	16,513
Amortization of intangible assets	14,949	15,721	29,198	34,247
Costs and Expenses, Total	213,633	231,581	412,447	461,403
Operating income	35,097	17,440	68,598	35,090
Other (expense) income:
Interest (expense) income, net	21	39	67	80
Other (expense) income, net	(9,768)	(11,200)	(22,349)	(18,288)
Intercompany income (expense), net	4,500	742	5,867	289
Nonoperating Income (Expense), Total	(5,247)	(10,419)	(16,415)	(17,919)
Loss before income taxes	29,850	7,021	52,183	17,171
Income tax provision	3,119	282	5,413	3,416
Net loss from continuing operations	26,731	6,739	46,770	13,755
Net income from discontinued operations	178	47	321	105
Net loss	26,909	6,786	47,091	13,860
Net loss attributable to DJO Finance LLC	26,909	6,786	47,091	13,860
Reportable Legal Entities | Non-Guarantors
Net sales	91,212	82,199	184,239	165,957
Costs and operating expenses:
Cost of sales (exclusive of amortization of intangible assets of $6,935 and $13,293 for the three and six months ended June 30, 2018 and $6,980 and $13,961 for the three and six months ended July 1, 2017, respectively)	66,325	77,009	134,593	152,937
Selling, general and administrative	24,278	24,691	49,773	47,686
Research and development	1,188	873	2,244	1,689
Amortization of intangible assets	340	295	690	614
Costs and Expenses, Total	92,131	102,868	187,300	202,926
Operating income	(919)	(20,669)	(3,061)	(36,969)
Other (expense) income:
Interest (expense) income, net	(193)	(25)	(331)	(32)
Other (expense) income, net	10,822	12,096	21,862	19,472
Intercompany income (expense), net	(6,801)	(584)	(5,718)	(45)
Nonoperating Income (Expense), Total	3,828	11,487	15,813	19,395
Loss before income taxes	2,909	(9,182)	12,752	(17,574)
Income tax provision	1,516	813	4,606	1,757
Net loss from continuing operations	1,393	(9,995)	8,146	(19,331)
Net loss	1,393	(9,995)	8,146	(19,331)
Net income attributable to noncontrolling interests	(276)	(206)	(638)	(430)
Net loss attributable to DJO Finance LLC	1,117	(10,201)	7,508	(19,761)
Eliminations
Net sales	(35,105)	(36,474)	(67,818)	(79,315)
Costs and operating expenses:
Cost of sales (exclusive of amortization of intangible assets of $6,935 and $13,293 for the three and six months ended June 30, 2018 and $6,980 and $13,961 for the three and six months ended July 1, 2017, respectively)	(36,699)	(48,746)	(71,550)	(96,911)
Costs and Expenses, Total	(36,699)	(48,746)	(71,550)	(96,911)
Operating income	1,594	12,272	3,732	17,596
Other (expense) income:
Intercompany income (expense), net	2,301	(158)	(149)	(244)
Equity in income (loss) of subsidiaries, net	(45,627)	(8,699)	(71,889)	(11,451)
Nonoperating Income (Expense), Total	(43,326)	(8,857)	(72,038)	(11,695)
Loss before income taxes	(41,732)	3,415	(68,306)	5,901
Net loss from continuing operations	(41,732)	3,415	(68,306)	5,901
Net loss	(41,732)	3,415	(68,306)	5,901
Net loss attributable to DJO Finance LLC	$ (41,732)	$ 3,415	$ (68,306)	$ 5,901

Schedule of Condensed Consoli72

Schedule of Condensed Consolidating Statements of Operations (Parenthetical) (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Income Statement [Abstract]
Cost of sales, amortization of intangible assets	$ 6,935	$ 6,980	$ 13,293	$ 13,961

Schedule of Condensed Consoli73

Schedule of Condensed Consolidating Statements of Comprehensive Loss (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Net (loss) income	$ (13,410)	$ (34,177)	$ (30,617)	$ (73,922)
Other comprehensive income (loss), net of taxes:
Foreign currency translation adjustments, net of tax (benefit) provision of $(1,032) and $334 for the three and six months ended June 30, 2018 and $4,080 and $4,192 for the three and six months ended July 1, 2017	(8,636)	3,204	(7,134)	4,953
Unrealized gain (loss) on cash flow hedges, net of tax (benefit) provision of $(471) and zero for the three and six months ended June 30. 2018 and $21 thousand for both the three and six months ended July 1, 2017	640	(786)	2,545	60
Other comprehensive (loss) income	(7,996)	2,418	(4,648)	5,013
Comprehensive loss	(21,406)	(31,759)	(35,265)	(68,909)
Comprehensive income (loss) attributable to noncontrolling interests	(136)	768	(556)	515
Comprehensive loss attributable to DJO Finance LLC	(21,542)	(30,991)	(35,821)	(68,394)
Reportable Legal Entities | DJOFL
Net (loss) income	20	(34,383)	(17,548)	(74,352)
Other comprehensive income (loss), net of taxes:
Unrealized gain (loss) on cash flow hedges, net of tax (benefit) provision of $(471) and zero for the three and six months ended June 30. 2018 and $21 thousand for both the three and six months ended July 1, 2017	640	(786)	2,545	60
Other comprehensive (loss) income	640	(786)	2,545	60
Comprehensive loss	660	(35,169)	(15,003)	(74,292)
Comprehensive loss attributable to DJO Finance LLC	660	(35,169)	(15,003)	(74,292)
Reportable Legal Entities | Guarantors
Net (loss) income	26,909	6,786	47,091	13,860
Other comprehensive income (loss), net of taxes:
Comprehensive loss	26,909	6,786	47,091	13,860
Comprehensive loss attributable to DJO Finance LLC	26,909	6,786	47,091	13,860
Reportable Legal Entities | Non-Guarantors
Net (loss) income	1,393	(9,995)	8,146	(19,331)
Other comprehensive income (loss), net of taxes:
Foreign currency translation adjustments, net of tax (benefit) provision of $(1,032) and $334 for the three and six months ended June 30, 2018 and $4,080 and $4,192 for the three and six months ended July 1, 2017	(8,636)	3,204	(7,134)	4,953
Other comprehensive (loss) income	(8,636)	3,204	(7,134)	4,953
Comprehensive loss	(7,243)	(6,791)	1,012	(14,378)
Comprehensive income (loss) attributable to noncontrolling interests	(136)	768	(556)	515
Comprehensive loss attributable to DJO Finance LLC	(7,379)	(6,023)	456	(13,863)
Eliminations
Net (loss) income	(41,732)	3,415	(68,306)	5,901
Other comprehensive income (loss), net of taxes:
Comprehensive loss	(41,732)	3,415	(68,306)	5,901
Comprehensive loss attributable to DJO Finance LLC	$ (41,732)	$ 3,415	$ (68,306)	$ 5,901

Schedule of Condensed Consoli74

Schedule of Condensed Consolidating Statements of Comprehensive Loss (Parenthetical) (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Statement Of Income And Comprehensive Income [Abstract]
Foreign currency translation adjustment, tax (benefit) provision	$ (1,032,000)	$ 4,080,000	$ 334,000	$ 4,192,000
Unrealized gain (loss) on cash flow hedges, tax (benefit) provision	$ (471,000)	$ 21,000	$ 0	$ 21,000

Schedule of Condensed Consoli75

Schedule of Condensed Consolidating Statements of Cash Flows (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Cash Flows From Operating Activities:
Net (loss) income	$ (13,410)	$ (34,177)	$ (30,617)	$ (73,922)
Net (income) loss from discontinued operations	(178)	(47)	(321)	(105)
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation			23,488	21,855
Amortization of intangible assets	15,289	16,016	29,888	34,861
Amortization of debt issuance costs and non-cash interest expense			4,337	4,073
Stock-based compensation expense	447	392	895	846
Deferred purchase price consideration			13,708
Gain (loss) on disposal of assets, net			543	279
Deferred income tax expense (benefit)			(2,758)	2,084
Changes in operating assets and liabilities, net of acquired assets and liabilities:
Accounts receivable			9,288	11,179
Inventories			(9,122)	2,364
Prepaid expenses and other assets			(7,645)	3,080
Accounts payable and other current liabilities			(22,796)	31,501
Net cash provided by continuing operating activities			8,888	38,095
Net cash provided by discontinued operations			321	105
Net cash provided by operating activities			9,209	38,200
Cash flows from investing activities:
Purchases of property and equipment			(19,025)	(22,434)
Acquisition of business and intangibles, net of cash acquired			(9,104)
Proceeds from disposal of assets			248
Net cash (used in) provided by investing activities from continuing operations			(27,881)	(22,434)
Cash flows from financing activities:
Proceeds from issuance of debt				35,556
Proceeds from revolver borrowings			66,503	35,556
Proceeds from capital lease			15,000
Repayments of debt obligations			(66,538)	(48,275)
Repurchase of common stock				(3,600)
Investment by parent				500
Dividend paid to minority interest			(482)	(1,102)
Net cash provided (used) in financing activities			14,483	(16,921)
Effect of exchange rate changes on cash and cash equivalents			(1,007)	1,140
Net decrease in cash and cash equivalents			(5,196)	(15)
Cash and cash equivalents at the beginning of the period			31,985	35,212
Cash and cash equivalents at the end of the period	26,789	35,197	26,789	35,197
Reportable Legal Entities | DJOFL
Cash Flows From Operating Activities:
Net (loss) income	20	(34,383)	(17,548)	(74,352)
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			4,337	4,073
Equity in (loss) income of subsidiaries, net	(45,627)	(8,699)	(71,889)	(11,451)
Changes in operating assets and liabilities, net of acquired assets and liabilities:
Prepaid expenses and other assets			(3,845)	(62)
Accounts payable and other current liabilities			3,364	(4,369)
Net cash provided by continuing operating activities			(85,581)	(86,161)
Net cash provided by operating activities			(85,581)	(86,161)
Cash flows from financing activities:
Intercompany			51,185	110,819
Proceeds from issuance of debt				29,000
Proceeds from revolver borrowings			66,500
Proceeds from capital lease			15,000
Repayments of debt obligations			(64,464)	(48,275)
Repurchase of common stock				(3,600)
Investment by parent				500
Net cash provided (used) in financing activities			68,221	88,444
Net decrease in cash and cash equivalents			(17,360)	2,283
Cash and cash equivalents at the beginning of the period			23,245	15,818
Cash and cash equivalents at the end of the period	5,885	18,101	5,885	18,101
Reportable Legal Entities | Guarantors
Cash Flows From Operating Activities:
Net (loss) income	26,909	6,786	47,091	13,860
Net (income) loss from discontinued operations	(178)	(47)	(321)	(105)
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation			20,890	19,412
Amortization of intangible assets	14,949	15,721	29,198	34,247
Stock-based compensation expense			895	846
Deferred purchase price consideration			13,708
Gain (loss) on disposal of assets, net			412	187
Deferred income tax expense (benefit)			(2,355)	2,011
Changes in operating assets and liabilities, net of acquired assets and liabilities:
Accounts receivable			4,328	10,108
Inventories			(7,040)	4,921
Prepaid expenses and other assets			(3,182)	3,007
Accounts payable and other current liabilities			(28,167)	39,731
Net cash provided by continuing operating activities			75,457	128,225
Net cash provided by discontinued operations			321	105
Net cash provided by operating activities			75,778	128,330
Cash flows from investing activities:
Purchases of property and equipment			(16,079)	(20,596)
Acquisition of business and intangibles, net of cash acquired			(9,104)
Proceeds from disposal of assets			220
Net cash (used in) provided by investing activities from continuing operations			(24,963)	(20,596)
Cash flows from financing activities:
Intercompany			(39,814)	(103,256)
Net cash provided (used) in financing activities			(39,814)	(103,256)
Effect of exchange rate changes on cash and cash equivalents			(1)
Net decrease in cash and cash equivalents			11,000	4,478
Cash and cash equivalents at the beginning of the period			(14,354)	(372)
Cash and cash equivalents at the end of the period	(3,354)	4,106	(3,354)	4,106
Reportable Legal Entities | Non-Guarantors
Cash Flows From Operating Activities:
Net (loss) income	1,393	(9,995)	8,146	(19,331)
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation			2,611	2,457
Amortization of intangible assets	340	295	690	614
Gain (loss) on disposal of assets, net			130	92
Deferred income tax expense (benefit)			(403)	73
Changes in operating assets and liabilities, net of acquired assets and liabilities:
Accounts receivable			4,960	1,071
Inventories			1,597	16,392
Prepaid expenses and other assets			(838)	(582)
Accounts payable and other current liabilities			(4,756)	(196)
Net cash provided by continuing operating activities			12,137	590
Net cash provided by operating activities			12,137	590
Cash flows from investing activities:
Purchases of property and equipment			(2,946)	(1,838)
Proceeds from disposal of assets			28
Net cash (used in) provided by investing activities from continuing operations			(2,918)	(1,838)
Cash flows from financing activities:
Intercompany			(5,265)	(12,122)
Proceeds from issuance of debt				6,556
Proceeds from revolver borrowings			3
Repayments of debt obligations			(2,074)
Dividend paid to minority interest				(1,102)
Net cash provided (used) in financing activities			(7,336)	(6,668)
Effect of exchange rate changes on cash and cash equivalents			(741)	1,140
Net decrease in cash and cash equivalents			1,142	(6,776)
Cash and cash equivalents at the beginning of the period			23,094	19,766
Cash and cash equivalents at the end of the period	24,236	12,990	24,236	12,990
Eliminations
Cash Flows From Operating Activities:
Net (loss) income	(41,732)	3,415	(68,306)	5,901
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation			(13)	(14)
Gain (loss) on disposal of assets, net			1
Equity in (loss) income of subsidiaries, net	45,627	$ 8,699	71,889	11,451
Changes in operating assets and liabilities, net of acquired assets and liabilities:
Inventories			(3,679)	(18,949)
Prepaid expenses and other assets			220	717
Accounts payable and other current liabilities			6,763	(3,665)
Net cash provided by continuing operating activities			6,875	(4,559)
Net cash provided by operating activities			6,875	(4,559)
Cash flows from financing activities:
Intercompany			(6,106)	4,559
Dividend paid to minority interest			(482)
Net cash provided (used) in financing activities			(6,588)	$ 4,559
Effect of exchange rate changes on cash and cash equivalents			(265)
Net decrease in cash and cash equivalents			22
Cash and cash equivalents at the end of the period	$ 22		$ 22