SeaSpine (SPNE) 10-Q 10 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 02, 2016
Document Documentand Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Trading Symbol	SPNE
Entity Registrant Name	SeaSpine Holdings Corporation
Entity Central Index Key	1,637,761
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		11,205,791

CONDENSED COMBINED STATEMENT OF

CONDENSED COMBINED STATEMENT OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Total revenue, net	$ 33,201	$ 33,461	$ 64,600	$ 65,775
Cost of goods sold	13,930	14,506	28,213	27,107
Gross profit	19,271	18,955	36,387	38,668
Selling, general and administrative	26,989	31,660	52,363	56,711
Research and development	3,181	2,027	5,934	3,609
Intangible amortization	1,281	1,357	2,562	2,754
Total operating expenses	31,451	35,044	60,859	63,074
Operating loss	(12,180)	(16,089)	(24,472)	(24,406)
Other income (expense), net	(232)	(51)	26	(772)
Loss before income taxes	(12,412)	(16,140)	(24,446)	(25,178)
Provision (benefit) for income taxes	(429)	1,545	(456)	2,405
Net loss	$ (11,983)	$ (17,685)	$ (23,990)	$ (27,583)
Net loss per share, basic and diluted	$ (1.07)	$ (1.60)	$ (2.15)	$ (2.50)
Weighted average shares used to compute basic and diluted net loss per share	11,179	11,048	11,173	11,048

CONDENSED COMBINED STATEMENTS O

CONDENSED COMBINED STATEMENTS OF COMPREHENSIVE LOSS Statement - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Statement of Comprehensive Income [Abstract]
Net loss	$ (11,983)	$ (17,685)	$ (23,990)	$ (27,583)
Foreign currency translation adjustments	(104)	349	86	412
Comprehensive loss	$ (12,087)	$ (17,336)	$ (23,904)	$ (27,171)

CONDENSED COMBINED BALANCE SHEE

CONDENSED COMBINED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 22,987	$ 33,429
Trade accounts receivable, net of allowances of $559 and $764	22,840	25,326
Inventories	48,293	51,271
Prepaid expenses and other current assets	2,217	3,696
Total current assets	96,337	113,722
Property, plant and equipment, net	21,858	21,958
Intangible assets, net	35,722	39,632
Other assets	1,109	1,077
Total assets	155,026	176,389
Current liabilities:
Accounts payable, trade	10,784	13,689
Accrued compensation	4,101	4,177
Accrued commissions	4,468	4,227
Accrued expenses and other current liabilities	5,111	3,942
Total current liabilities	24,464	26,035
Long-term borrowings under credit facility	395	328
Other liabilities	2,918	2,687
Total liabilities	27,777	29,050
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.01 par value; 15,000 authorized; none issued and outstanding	0	0
Common stock, $0.01 par value; 60,000 authorized; 11,208 shares issued and outstanding at June 30, 2016, and 11,102 shares issued and outstanding at December 31, 2015	112	111
Additional paid-in capital	177,599	173,786
Accumulated other comprehensive income	1,477	1,391
Accumulated deficit	(51,939)	(27,949)
Total stockholders' equity	127,249	147,339
Total liabilities and stockholders' equity	$ 155,026	$ 176,389

CONDENSED COMBINED BALANCE SHE5

CONDENSED COMBINED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Allowance for trade accounts receivable	$ 559	$ 764
Preferred Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Preferred Stock, Shares Authorized	15,000,000	15,000,000
Preferred Stock, Shares Outstanding	0	0
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares Authorized	60,000,000	60,000,000
Common Stock, Shares, Issued	11,208,000	11,102,000
Common Stock, Shares, Outstanding	11,208,000	11,102,000

CONDENSED COMBINED STATEMENTS 6

CONDENSED COMBINED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
OPERATING ACTIVITIES:
Net loss	$ (23,990)	$ (27,583)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	6,248	5,892
Spinal hardware instrument replacement expense	760	496
Impairment of spinal hardware instruments	672	0
Provision for excess and obsolete inventories	3,652	1,439
Amortization of debt issuance costs	71	0
Deferred income tax benefit	(88)	0
Stock-based compensation	3,587	197
Allocation of non-cash charges from Integra	0	587
Changes in assets and liabilities
Accounts receivable	2,524	(351)
Inventories	(9)	(4,590)
Prepaid expenses and other current assets	1,481	(581)
Other non-current assets	5	1,213
Income taxes payable	0	90
Accounts payable, accrued expenses and other current liabilities	(2,626)	(420)
Other non-current liabilities	213	(104)
Net cash used in operating activities	(7,500)	(23,715)
INVESTING ACTIVITIES:
Purchases of property and equipment	(3,446)	(7,067)
Net cash used in investing activities	(3,446)	(7,067)
FINANCING ACTIVITIES:
Proceeds from the issuance of common stock	356	0
Other financing activity	(2)	0
Integra net investment prior to the spin-off	0	43,149
Net cash provided by financing activities	354	43,149
Effect of exchange rate changes on cash and cash equivalents	150	(2)
Net change in cash and cash equivalents	(10,442)	12,365
Cash and cash equivalents at beginning of period	33,429	652
Cash and cash equivalents at end of period	22,987	13,017
Non-cash financing activities:
Settlement of related-party payable to Integra net investment	0	29,022
Property and equipment in liabilities	$ 1,453	$ 531

CONDENSED COMBINED STATEMENT O7

CONDENSED COMBINED STATEMENT OF EQUITY Statement - 6 months ended Jun. 30, 2016 - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Retained Earnings [Member]
Beginning Balance, Shares, Outstanding at Dec. 31, 2015	11,102,000	11,102,000
Beginning Balance at Dec. 31, 2015	$ 147,339	$ 111	$ 173,786	$ 1,391	$ (27,949)
Net loss	(23,990)				(23,990)
Foreign currency translation adjustment	$ 86			86
Restricted stock awards issued	75,075	75,000
Restricted stock awards issued		$ 1	(1)
Issuance of common stock under employee stock purchase plan		40,000
Issuance of common stock under employee stock purchase plan	$ 356	$ 0	356
Stock Issued During Period, Shares, Restricted Stock Award, Forfeited		(9,000)
Adjustments to Additional Paid in Capital, Share-based Compensation, Restricted Stock Unit or Restricted Stock Award, Requisite Service Period Recognition	(129)	$ 0	(129)
Stock-based compensation	$ 3,587		3,587
Ending Balance, Shares, Outstanding at Jun. 30, 2016	11,208,000	11,208,000
Ending Balance at Jun. 30, 2016	$ 127,249	$ 112	$ 177,599	$ 1,477	$ (51,939)

BUSINESS

BUSINESS	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BUSINESS	BUSINESS Spin-off from Integra As of June 30, 2015, SeaSpine Holdings Corporation ("SeaSpine", or the "Company") was a subsidiary of Integra LifeSciences Holdings Corporation (“Integra”). On July 1, 2015, Integra completed the spin-off of its orthobiologics and spinal fusion hardware business into SeaSpine, which was created to be a separate, independent, publicly-traded medical technology company focused on the design, development and commercialization of surgical solutions for the treatment of patients suffering from spinal disorders. Unless the context indicates otherwise, (i) references to "SeaSpine", the "Company", and the "Business", refer to SeaSpine Holdings Corporation and its orthobiologics and spinal fusion hardware business and (ii) references to "Integra" refer to Integra LifeSciences Holdings Corporation and its subsidiaries other than SeaSpine. The SeaSpine Registration Statement on Form 10 became effective on June 9, 2015, and SeaSpine common stock began “regular-way” trading on the NASDAQ Global Market on July 2, 2015 under the symbol “SPNE.”

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The Company prepared the unaudited interim condensed consolidated financial statements included in this report in accordance with accounting principles generally accepted in the U.S. (“GAAP”). For periods prior to the spin-off, the Company’s consolidated financial statements were prepared on a stand-alone basis and derived from Integra's consolidated financial statements and accounting records related to its orthobiologics and spinal fusion hardware business. The Company relied on Integra for a significant portion of its operational and administrative support. The consolidated financial statements for all periods prior to the spin-off included allocations of certain Integra corporate expenses, including information technology resources and support; finance, accounting, and auditing services; real estate and facility management services; human resources activities; certain procurement activities; treasury services, legal advisory services and costs for research and development. These costs were allocated to the Company on the basis of direct usage when identifiable, with the remainder allocated on a pro-rata basis of revenue, standard costs of sales, or other measures. Integra used a centralized approach to cash management and financing of its operations and substantially all cash generated by the Company through May 4, 2015, the date the Company implemented a separate enterprise resource planning system for SeaSpine, was assumed to be remitted to Integra. Prior to the spin-off, cash management and financing transactions relating to the Company were accounted for through the Integra invested equity account. Accordingly, none of the Integra cash and cash equivalents at the corporate level were assigned to SeaSpine in the consolidated financial statements. Integra’s debt and related interest expense were not allocated to SeaSpine for any of the periods presented since the Company was not the legal obligor of the debt and Integra’s borrowings were not directly attributable to SeaSpine. Subsequent to the spin-off, the Company’s financial statements are presented on a consolidated basis, as the Company became a separate publicly-traded company on July 1, 2015. In the opinion of management, the June 30, 2016 unaudited condensed consolidated financial statements contain all adjustments (consisting only of normal recurring adjustments) necessary for a fair statement of the financial position, results of operations and cash flows of the Company. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto for the year ended December 31, 2015 included in the Company’s Annual Report on Form 10-K filed with the SEC. The Company performs its operational and administrative support using internal resources and purchased services, some of which have been provided by Integra for a fee pursuant to a transition services agreement. See Note 4, “Transactions with Integra,” for further information regarding the relationships the Company has with Integra. Principles of Consolidation For periods prior to the spin-off, the consolidated financial statements include certain assets and liabilities that have historically been held at the Integra level but were specifically identifiable or otherwise attributable to the Company. All significant intra-company transactions within Integra's pre-spin off orthobiologics and spinal fusion hardware business have been eliminated. All significant transactions between the Company and other businesses of Integra before the spin-off are included in these condensed consolidated financial statements. For periods subsequent to the spin-off, the consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board ("FASB") issued Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) . The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should: 1) identify the contract(s) with a customer, 2) identify the performance obligations in the contract, 3) determine the transaction price, 4) allocate the transaction price to the performance obligations in the contract, and 5) recognize revenue when (or as) the entity satisfies a performance obligation. In July 2015, the FASB deferred for one year the effective date of the new revenue standard, but early adoption is permitted. The new standard will be effective for the Company on January 1, 2018. The Company is in the process of evaluating the impact of this standard on its financial statements. In August 2014, the FASB issued Update No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern . The amendment requires management to evaluate, for each annual and interim reporting period, whether there are conditions and events, considered in the aggregate, that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date the financial statements are issued or are available to be issued. If substantial doubt is raised, additional disclosures around management’s plan to alleviate these doubts are required. This update will become effective for all annual periods and interim reporting periods beginning after December 15, 2016. The implementation of the amended guidance is not expected to have an impact on current disclosures in our financial statements. In April 2015, the FASB issued Update No. 2015-03, Simplifying the Presentation of Debt Issuance Costs . The new standard requires debt issuance costs to be presented on the balance sheet as a direct reduction of the carrying value of the associated debt liability, consistent with the presentation of debt discounts. The recognition and measurement requirements did not change as a result of this guidance. The standard is effective for fiscal years beginning after December 15, 2015, and interim periods within fiscal years beginning after December 15, 2016, and requires a retrospective application. The guidance in Accounting Standards Update ("ASU") 2015-03 does not address presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements. In August 2015, the FASB issued ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. Under the new standard, the SEC staff will not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The implementation of the amended guidance did not have an impact on current disclosures in our financial statements. In July 2015, the FASB issued Update No. 2015-11, Simplifying the Measurement of Inventory (Topic 330). The new guidance requires an entity to measure inventory within the scope of the amendment at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The guidance is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The implementation of the amended guidance is not expected to have an impact on our financial statements. In November 2015, the FASB issued Update No. 2015-17, Income Taxes - Balance Sheet Reclassification of Deferred Taxes (Topic 740) . This ASU requires that deferred tax liabilities and assets be classified as non-current in a classified statement of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by the amendments in this update. The amendments in this update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted and the amendments may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company early adopted this ASU in the fourth quarter of 2015 on a prospective basis. The Company did not adjust our prior period consolidated balance sheet as a result of the adoption of this ASU. In February 2016, the FASB issued Update No. 2016-02, Leases (Topic 842) , which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. Topic 842 supersedes the previous leases standard, Topic 840 Leases. The standard is effective on January 1, 2019, with early adoption permitted. The Company is in the process of evaluating the impact of this new guidance. In March 2016, the FASB issued Update No. 2016-09, Improvements to Employee Share-Based Payment Accounting (Topic 718) . Under current accounting guidance an entity is required to report excess tax benefits and tax deficiencies to the extent of previous windfalls in equity when the tax benefit is realized. Excess settlements are currently reported as cash inflows from financing activities. The amendment requires that an entity present all excess tax benefits and all tax deficiencies as income tax expense or benefit in the statement of operations to be applied using a prospective transition method. Related tax settlements are to be presented as cash inflows from operating activities. The Company has the option to use either a prospective or retrospective transition method. The amendment removes the requirement to delay recognition of an excess tax benefit until the tax benefit is realized. A modified retrospective transition method must be applied. This update will become effective for all annual periods and interim reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company is in the process of evaluating the impact of this standard on its financial statements. In April 2016, the FASB issued Update No. 2016-10, Revenue from Contracts with Customers (Topic 606)- Identifying Performance Obligations and Licensing . The amendments in th is Update do not change the core principle of the guidance in Topic 606 stated in Update No. 2014-09. Rather, they clarify the following two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas. The new standard will be effective for the Company on January 1, 2018. The Company is in the process of evaluating the impact of this standard on its financial statements. In May 2016, the FASB issued Update No. 2016-11, Revenue Recognition (Topic 605) and Derivative and Hedging (Topic 815) . This Update rescinds certain SEC Staff Observer Comments that are codified in Topic 605, Revenue Recognition, and Topic 932, Extract Activities - Oil and Gas, upon adoption of Topic 606, Revenue from Contracts with Customers. Specifically, registrants should not rely on the following SEC Staff Observer comments: a. Revenue and Expense Recognition for Freight Services in Process; b. Accounting for Shipping and Handling Fees and Costs; c. Accounting for Consideration Given by a Vendor to a Customer (including Reseller of the Vendor’s Products); d. Accounting for Gas-Balancing Arrangements (that is, use of the “entitlements method”). The new standard will be effective for the Company upon adoption of Topic 606 on January 1, 2018. The Company is in the process of evaluating the impact of this standard on its financial statements. In May 2016, the FASB issued Update No. 2016-12, Revenue from Contracts with Customers (Topic 606)- Narrow-Scope Improvements and Practical Expedients . The amendments in th is Update do not change the core principle of the guidance in Topic 606 stated in Update No. 2014-09. Rather, they address certain issues identified by the Transition Resource Group for Revenue Recognition in the guidance on assessing collectability, presentation of sales taxes, noncash consideration, and completed contracts and contract modifications at transition. The new standard will be effective for the Company on January 1, 2018. The Company is in the process of evaluating the impact of this standard on its financial statements. Net Loss Per Share For periods prior to the spin-off, basic and diluted net loss per share was calculated based on the approximately 11.0 million shares of SeaSpine common stock that were distributed to Integra shareholders on July 1, 2015. For periods subsequent to the spin-off, basic and diluted net loss per share was calculated using the weighted-average number of shares of common stock outstanding during the period. The weighted average number of shares used to compute diluted net loss per share excludes any assumed exercise of stock options, and any assumed issuance of common stock under restricted stock units as the effect would be antidilutive. Common stock equivalents of 2.8 million shares for the three and six months ended June 30, 2016 were excluded from the calculation because of their antidilutive effect. Out-of-Period Adjustment In the second quarter of 2015, the Company recorded an adjustment to correct an error in the first quarter of 2015 reported amounts. This resulted in an increase to finished goods inventory and Integra's net investment by $0.7 million . In addition to understating the inventory balance and net investment balance as of March 31, 2015, the error had the effect of increasing first quarter cash flows from operations and decreasing first quarter cash flows from financing by $0.7 million . The adjustment recorded in the second quarter of 2015 corrects the year to date cash flows from operations and cash flows from financing.

CREDIT AGREEMENT

CREDIT AGREEMENT	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Debt Disclosure [Text Block]	CREDIT AGREEMENT On December 24, 2015, the Company entered into a three -year credit facility (the "Credit Facility") with Wells Fargo Capital Finance. The Credit Facility provides an asset-backed revolving line of credit of up to $30.0 million in borrowing capacity with a maturity date of December 24, 2018, which maturity date is subject to a one -year extension at the Company's election. In connection with the Credit Facility, the Company was required to become guarantors and to provide a security interest in substantially all its assets for the benefit of the counterparty. Borrowings under the Credit Facility accrue interest at the rate then applicable to the Base Rate (as customarily defined) Loans, unless and until converted into LIBOR Rate Loans in accordance with the terms of the Credit Facility. Borrowings bear interest at a floating annual rate equal to (a) during any month for which the Company's average excess availability (as customarily defined) is greater than $20.0 million , base rate plus (i) 1.25 percentage points for base rate loans and (ii) LIBOR rate plus 2.25 percentage points for LIBOR loans, (b) during any month for which the Company's average excess availability is greater than $10.0 million but less than or equal to $20.0 million , (i) base rate plus 1.50 percentage points for base rate loans and (ii) LIBOR rate plus 2.50 percentage points for LIBOR loans and (c) during any month for which the Company's average excess availability is less than or equal to $10.0 million , (i) base rate plus 1.75 percentage points for base rate loans and (ii) LIBOR rate plus 2.75 percentage points for LIBOR loans. The Company will also pay an unused line fee in an amount equal to 0.375% per annum of the unused Credit Facility amount. The unused line fee is due and payable on the first day of each month. At June 30, 2016 , there was $0.4 million outstanding under the Credit Facility. Debt issuance costs and legal fees related to the Credit Facility totaling $0.4 million were recorded as a deferred asset and are being amortized ratably over the term of the arrangement. The Credit Facility contains various customary affirmative and negative covenants, including prohibiting the Company from incurring indebtedness without the lender’s consent. The Credit Facility also includes a financial covenant that requires the Company to maintain a minimum fixed charge coverage ratio of 1.10 to 1.00 for the applicable measurement period, if the Company's Total Liquidity (as defined in the Credit Facility) is less than $5.0 million . The Company was in compliance with all applicable covenants at June 30, 2016 . The Credit Facility also includes customary events of default, including events relating to non-payment of amounts due under the Credit Facility, material inaccuracy of representations and warranties, violation of covenants, bankruptcy and insolvency, failure to comply with health care laws, violation of certain of the Company’s existing agreements, and the occurrence of a change of control. Under the Credit Facility, if an event of default occurs, Wells Fargo Capital Finance will have the right to terminate the commitments and accelerate the maturity of any loans outstanding.

TRANSACTIONS WITH INTEGRA

TRANSACTIONS WITH INTEGRA	6 Months Ended
	Jun. 30, 2016
Related Party Transactions [Abstract]
TRANSACTIONS WITH INTEGRA	TRANSACTIONS WITH INTEGRA Related-party Transactions Prior to the spin-off, and pursuant to certain supply agreements subsequent to the spin-off, SeaSpine purchased a portion of raw materials and finished goods from Integra for the Company's Mozaik family of products, and SeaSpine contract manufactured certain finished goods for Integra. The Company's purchases of raw materials and Mozaik product finished goods from Integra for the three months ended June 30, 2016 and 2015 totaled $0.5 million and $1.4 million , respectively, and for the six months ended June 30, 2016 and 2015 totaled $1.0 million and $2.5 million , respectively. The Company's sale of finished goods sold to Integra under its contract manufacturing arrangement for both the three and six months ended June 30, 2016 totaled $0.2 million , and such sale was immaterial for the three and six months ended June 30, 2015. As of June 30, 2016, $0.3 million was due from Integra and recorded as Trade Accounts Receivable. Pursuant to a transition services agreement, Integra and SeaSpine will provide certain services following the spin-off, and Integra and SeaSpine will indemnify each other against certain liabilities arising from their respective businesses. Under this agreement, Integra provides us with certain support functions, including information technology, accounting and other financial functions, regulatory affairs and quality assurance, human resources and other administrative support. The Company incurred approximately $0.1 million and $0.3 million of expenses under the agreement for the three and six months ended June 30, 2016, respectively, all of which was unpaid at June 30, 2016. Integra collects certain funds from customers on behalf of the Company, of which $0.5 million was due to the Company as of June 30, 2016 and recorded in Other Current Assets. Allocated Costs For periods prior to the spin-off, the condensed consolidated statements of operations included direct expenses for cost of goods sold, research and development, sales and marketing, customer service, and administration as well as allocations of expenses arising from shared services and infrastructure provided by Integra to the Company, such as costs of information technology, including the costs of a multi-year global enterprise resource planning implementation, accounting and legal services, real estate and facilities management, corporate advertising, insurance and treasury services, and other corporate and infrastructure services. These allocations are included in the table below. These expenses were allocated to the Company using estimates that the Company considers to be a reasonable reflection of the utilization of services provided to or benefits received from the Company. The allocation methods include pro-rata basis of revenue, standard cost of sales or other measures. Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 (In thousands) Cost of goods sold $ 244 $ 488 Selling, general and administrative 4,383 8,633 Research and development 148 253 Total Allocated Costs $ 4,775 $ 9,374 Included in the above amounts are certain non-cash allocated costs, including stock-based compensation. Such amounts were $0.3 million and $0.6 million for the three and six months ended June 30, 2015, respectively. There were no allocated costs for the three and six months ended June 30, 2016. All significant related party transactions between SeaSpine and Integra were included in the condensed consolidated financial statements and, prior to the spin-off, were considered to be effectively settled for cash at the time the transaction was recorded, with the exception of the purchases from Integra of Mozaik raw materials and finished goods for all periods presented. The total net effect of the transactions considered to be effectively settled for cash was reflected in the consolidated statement of cash flows as a financing activity and in the consolidated balance sheet as Integra net investment. The following table summarizes the components of the net increase in Integra net investment for the six months ended June 30, 2015 . The Integra net investment was reclassified to Additional Paid-in Capital in connection with the spin-off. Six Months Ended June 30, 2015 (In thousands) Cash pooling and general financing activities (a) $ 34,361 Corporate Allocations (excluding non-cash adjustments) 8,788 Total Integra net investment in financing activities within cash flow statement 43,149 Non-cash adjustments (b) 29,806 Foreign exchange impact 291 Net increase in Integra investment $ 73,246 (a) Includes financing activities for capital transfers, cash sweeps and other treasury services. (b) Reflects allocation of non-cash charges from Integra, including stock-based compensation and settlement of related-party payable to Integra net investment.

INVENTORIES

INVENTORIES	6 Months Ended
	Jun. 30, 2016
Inventory, Net [Abstract]
INVENTORIES	INVENTORIES Inventories consisted of the following: June 30, 2016 December 31, 2015 (In thousands) Finished goods $ 32,285 $ 29,845 Work in process 12,146 15,574 Raw materials 3,862 5,852 $ 48,293 $ 51,271

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT	6 Months Ended
	Jun. 30, 2016
Property, Plant and Equipment [Abstract]
PROPERTY, PLANT AND EQUIPMENT	PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are stated at historical cost less accumulated depreciation and any impairment charges. The Company provides for depreciation using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the lesser of the lease term or the useful life. The cost of major additions and improvements is capitalized, while maintenance and repair costs that do not improve or extend the lives of the respective assets are charged to operations as incurred. The cost of computer software obtained for internal use is accounted for in accordance with the Accounting Standards Codification 350-40, Internal-Use Software. The cost of purchased spinal hardware instruments which the Company consigns to hospitals and independent sales agents to support surgeries is initially capitalized as construction in progress. The amount is then reclassified to spinal hardware instrument sets and depreciation is initiated when instruments are put together in a newly built set with spinal implants, or directly expensed for the instruments that are used to replace damaged instruments in an existing set. The depreciation expense and direct expense for replacement instruments are recorded in selling, general and administrative expense. Property, plant and equipment balances and corresponding useful lives were as follows: June 30, 2016 December 31, 2015 Useful Lives (In thousands) Leasehold improvement $ 6,020 $ 4,830 Lease Term Machinery and production equipment 6,530 6,404 3-10 years Spinal hardware instrument sets 25,450 25,080 5 years Information systems and hardware 6,972 6,872 3-7 years Furniture and fixtures 1,194 944 3-5 years Construction in progress 8,338 8,375 Total 54,504 52,505 Less accumulated depreciation and amortization (32,646 ) (30,547 ) Property, plant and equipment, net $ 21,858 $ 21,958 Depreciation and amortization expenses totaled $1.1 million and $0.9 million for the three months ended June 30, 2016 and 2015, respectively, and $2.3 million and $1.8 million for the six months ended June 30, 2016 and 2015, respectively. The cost of purchased instruments used to replace damaged instruments in existing sets and recorded directly to the instrument replacement expense totaled $0.2 million and $0.3 million for the three months ended June 30, 2016 and 2015, respectively, and $0.8 million and $0.5 million for the six months ended June 30, 2016 and 2015, respectively.

IDENTIFIABLE INTANGIBLE ASSETS

IDENTIFIABLE INTANGIBLE ASSETS	6 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
IDENTIFIABLE INTANGIBLE ASSETS	IDENTIFIABLE INTANGIBLE ASSETS Identifiable intangible assets are initially recorded at fair value at the time of acquisition generally using an income or cost approach. The Company capitalizes costs incurred to renew or extend the term of recognized intangible assets and amortizes those costs over their expected useful lives. The components of the Company’s identifiable intangible assets were as follows: June 30, 2016 Weighted Average Life Cost Accumulated Amortization Net (Dollars in thousands) Completed technology 12 years $ 31,169 $ (20,629 ) $ 10,540 Customer relationships 12 years 56,830 (31,648 ) 25,182 Trademarks/brand names — 300 (300 ) — $ 88,299 $ (52,577 ) $ 35,722 December 31, 2015 Weighted Average Life Cost Accumulated Amortization Net (Dollars in thousands) Completed technology 12 years $ 31,169 $ (19,280 ) $ 11,889 Customer relationships 12 years 56,830 (29,087 ) 27,743 Trademarks/brand names — 300 (300 ) — $ 88,299 $ (48,667 ) $ 39,632 Annual amortization expense (including amounts reported in cost of goods sold) is expected to be approximately $7.0 million in 2016 , $5.8 million in 2017 , $5.5 million in 2018 , $4.8 million in 2019 and $4.0 million in 2020 . Amortization expense totaled $1.9 million and $2.0 million for the three months ended June 30, 2016 and 2015, respectively, and includes $0.6 million of amortization of product technology-based intangible assets. Amortization expense totaled $3.9 million and $4.1 million for the six months ended June 30, 2016 and 2015, respectively, and includes $1.3 million of amortization of product technology-based intangible assets. The amortization of product technology-based intangible assets is presented by the Company within cost of goods sold.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	6 Months Ended
	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK-BASED COMPENSATION	STOCK-BASED COMPENSATION For periods prior to the spin-off, the Company’s stock-based compensation was derived from the equity awards granted by Integra to individuals who would become the Company’s employees. As those stock-based compensation plans were Integra’s plans, the amounts have been recognized in the consolidated statements of operations and the Integra net investment account on the consolidated balance sheet. For periods after the spin-off, the Company's stock-based compensation has been recognized through the consolidated statement of operations and the Company's additional paid-in capital account on the consolidated balance sheet. Equity Award Plans As of June 30, 2015, Integra had stock options, restricted stock awards, performance stock awards, contract stock awards and restricted stock units outstanding under three plans, the 2000 Equity Incentive Plan, the 2001 Equity Incentive Plan, and the 2003 Equity Incentive Plan. In connection with the spin-off, Integra equity awards granted to individuals who became employees of the Company were converted to SeaSpine equity awards. In general, each award is subject to the same terms and conditions as were in effect prior to the spin-off. In May 2015, the Company adopted a 2015 Incentive Award Plan (the "2015 Plan"), under which the Company can grant its employees and non-employee directors incentive stock options and non-qualified stock options, restricted stock, performance stock, dividend equivalent rights, stock appreciation rights, stock payment awards and other incentive awards. The Company may issue up to 2,000,000 shares of its common stock under the 2015 Plan. On January 27, 2016, the Company's board of directors approved an amendment and restatement of the 2015 Plan, pursuant to which the share reserve was increased by 300,000 shares over the original share reserve under the 2015 Plan, and on March 30, 2016, the board of directors approved a further amendment and restatement of the 2015 Plan, pursuant to which the share reserve was increased by an additional 1,209,500 shares of common stock. Such amendments were approved by the stockholders of the Company on June 7, 2016. As a result, pursuant to the final amended and restated 2015 Plan (the "Restated Plan"), an aggregate of 1,509,500 additional shares are reserved for issuance under the Restated Plan relative to the share reserve under the 2015 Plan. Restricted Stock Awards, Restricted Stock Units and Performance Stock Awards Performance stock awards, restricted stock awards and restricted stock units generally have requisite service periods of three years . Performance stock awards are subject to graded vesting and the Company expenses their fair value over the requisite service period. The Company expenses the fair value of restricted stock awards and restricted stock units on an accelerated basis over the vesting period or requisite service period, whichever is shorter. Stock-based compensation expense related to restricted stock awards, restricted stock units and performance stock awards includes an estimate for forfeitures. The expected forfeiture rate of all equity based compensation is based on historical patterns of the Company’s employees and is estimated to be 10% annually for the three and six months ended June 30, 2016 . During the six months ended June 30, 2016, the Company granted 75,075 shares of restricted stock awards to non-employee directors. As of June 30, 2016 , there was approximately $0.8 million of total unrecognized compensation expense related to unvested awards. This cost is expected to be recognized over a weighted-average period of approximately one year . Stock Options Stock option grants to employees generally have requisite service periods of four years, and stock option grants to non-employee directors generally have a requisite service period of one year. Both are subject to graded vesting. The Company records stock-based compensation expense associated with stock options on an accelerated basis over the various vesting periods within each grant and based on their fair value at the date of grant using the Black-Scholes-Merton option pricing model. The following weighted-average assumptions were used in the calculation of fair value for options grants for the three and six months ended June 30, 2016 , respectively: Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 Expected dividend yield 0 % 0 % Risk-free interest rate 1.2 % 1.3 % Expected volatility 38.2 % 38.3 % Expected term (in years) 4.8 4.9 The Company considered that it has never paid cash dividends and does not currently intend to pay cash dividends. The risk-free interest rates are derived from the U.S. Treasury yield curve in effect on the date of grant for instruments with a remaining term similar to the expected term of the options. Due to the Company’s limited historical data, the expected volatility is calculated based upon the historical volatility of comparable companies in the medical device industry whose share prices are publicly available for a sufficient period of time. The expected term of "plain vanilla" options is calculated using the simplified method as prescribed by accounting guidance for stock-based compensation. A "plain vanilla" option is an option with the following characteristics: (1) the options are granted at-the-money; (2) exercisability is conditional only on satisfaction of a service condition through the vesting date; (3) employees who terminate their service prior to vesting forfeit the options; (4) employees who terminate their service after vesting are granted limited time to exercise their stock options; and (5) the options are nontransferable and non-hedgeable. The expected term of any other options is based on disclosures from similar companies with similar grants. In addition, the Company applies an expected forfeiture rate when amortizing stock-based compensation expense. The expected forfeiture rate of stock options is based on historical patterns of the employee turnover rate and is estimated to be 10% annually for stock-based compensation expense recorded for the three and six months ended June 30, 2016 . As individual grant awards become fully vested, stock-based compensation expense is adjusted to recognize actual forfeitures. There were 156,492 and 857,024 stock options granted during the three and six months ended June 30, 2016, respectively, of which 85,500 and 632,599 shares, respectively, were granted, out of the share reserve increases approved by the board of directors under the Restated Plan and, the remainder out of the remaining share reserve under the 2015 Plan, all of which were granted subject to the Company obtaining the requisite stockholder approval for the Restated Plan (the “Contingent Options”). The Contingent Options were approved upon the shareholder approval of the Restated Plan on June 7, 2016, for which, expense was recognized for all options vested as of that date. As of June 30, 2016 , there was approximately $4.1 million of total unrecognized compensation expense related to unvested stock options. This cost is expected to be recognized over a weighted-average period of approximately 1.5 years. Employee Stock Purchase Plan In May 2015, the Company adopted a 2015 Employee Stock Purchase Plan (the “ESPP”), which was amended in December 2015. The ESPP enables eligible employees to purchase shares of the Company’s common stock through payroll deductions of up to 15% of eligible compensation during an offering period. Generally, each offering will be for a period of twenty-four months as determined by the Company's board of directors. There are four six-month purchase periods in each offering period for contributions to be made and to be converted into shares at the end of the purchase period. In no event may an employee purchase more than 2,500 shares per purchase period based on the closing price on the first trading date of an offering period or more than $25,000 worth of stock during each calendar year. The purchase price is 85% of the lesser of the market price of the stock at the first trading date of an offering period or any purchase date during an offering period (June 30 or December 31). The ESPP authorizes the issuance of 400,000 shares of common stock pursuant to purchase rights granted to employees. The ESPP is intended to qualify as an “employee stock purchase plan” within the meaning of Section 423 of the Internal Revenue Code of 1986. The first offering period commenced on January 1, 2016 and will end on December 31, 2017. However, our plan contains a restart feature, such that if the market price of the stock at the end of any six-month purchase period is lower than the stock price at the original grant date of an offering period, that offering period will terminate after that purchase date, and a new two-year offering period will commence on the January 1 or July 1 immediately following the date the original offering period terminated. This restart feature was triggered by the purchase date that occurred on June 30, 2016, such that the offering period that commenced on January 1, 2016 was terminated, and a new offering period commenced on July 1, 2016 and will end on June 30, 2018. We applied share-based payment modification accounting to the awards that were initially valued at the grant date to determine the amount of any incremental fair value associated with the modified awards. There was no impact to stock-based compensation expense for modifications during the three or six months ended June 30, 2016. During the six months ended June 30, 2016 , 39,955 shares of common stock were purchased under the ESPP. The Company estimates the fair value of shares issued to employees under the ESPP using the Black-Scholes-Merton option-pricing model. The following weighted average assumptions were used in the calculation of fair value of shares under the ESPP at the grant date: June 30, 2016 Expected dividend yield 0 % Risk-free interest rate 0.7 % Expected volatility 32.4 % Expected term (in years) 1.3

LEASES

LEASES	6 Months Ended
	Jun. 30, 2016
Leases [Abstract]
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]	LEASES The Company leases administrative, manufacturing, research, and distribution facilities and various manufacturing, office and transportation equipment through operating lease agreements. Future minimum lease payments under these operating leases at June 30, 2016 are as follows: Payments Due by Calendar Year (In thousands) 2016 $ 1,063 2017 2,177 2018 2,208 2019 2,262 2020 2,317 Thereafter 12,160 Total minimum lease payments $ 22,187 Total rental expense for the three months ended June 30, 2016 and 2015 was $0.8 million and $0.6 million , respectively, and $1.6 million and $1.2 million for the six months ended June 30, 2016 and 2015, respectively.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The following table provides a summary of the Company’s effective tax rate for the three and six months ended June 30, 2016 and 2015 : Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Reported tax rate 3.5 % (9.6 )% 1.9 % (9.6 )% The Company reported income tax expense for the three and six months ended June 30, 2015 related to the taxable income generated by its U.S. subsidiary that was not part of the U.S. consolidated tax group as of June 30, 2015. As such, despite the reported losses before income taxes in those periods, the taxable income generated by such U.S. subsidiary was not allowed to be offset against the taxable losses generated by its other U.S. subsidiaries through August 31, 2015. Effective September 1, 2015, the Company made an election that will allow it to offset any future taxable losses generated by its U.S. subsidiaries against any future taxable income generated by its U.S. subsidiaries. The Company reported an income tax benefit for the three and six months ended June 30, 2016 which was primarily the result of a refund of tax initially paid toward the income tax return for our U.S. subsidiary which was not part of the U.S. consolidated tax group for the tax period January 1, 2015 through August 31, 2015. In addition, for all periods presented, the pretax losses incurred by the consolidated U.S. tax group received no corresponding tax benefit because we have concluded that it is more likely than not that the Company will be unable to realize the value of any resulting deferred tax assets. The Company will continue to assess its position in future periods to determine if it is appropriate to reduce a portion of its valuation allowance in the future. The income tax provision in the consolidated statements of operations for periods prior to the spin-off was calculated using the separate return method, as if the Company had filed a separate tax return and operated as a stand-alone business. However, because Integra historically generated taxable income in excess of the Company’s pretax losses incurred prior to the spin-off and all of the Company’s U.S. subsidiaries that incurred these pretax losses were included in Integra’s U.S. consolidated tax group, those pretax losses were more than offset by Integra’s taxable income. Therefore, there were no U.S. net operating losses available to the Company for future use at the date of the spin-off.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES In consideration for certain technology, manufacturing, distribution, and selling rights and licenses granted to the Company, the Company has agreed to pay royalties on sales of certain products sold by the Company. The royalty payments that the Company made under these agreements were included on the interim condensed consolidated statements of operations as a component of cost of goods sold. The Company is subject to various claims, lawsuits and proceedings in the ordinary course of its business with respect to its products, its current or former employees, and involving commercial disputes, some of which have been settled by the Company. In the opinion of management, such claims are either adequately covered by insurance or otherwise indemnified, or are not expected, individually or in the aggregate, to result in a material adverse effect on the Company's financial condition. However, it is possible that our results of operations, financial position and cash flows in a particular period could be materially affected by these contingencies. The Company accrues for loss contingencies when it is deemed probable that a loss has been incurred and that loss is estimable. The amounts accrued are based on the full amount of the estimated loss before considering insurance proceeds, and do not include an estimate for legal fees expected to be incurred in connection with the loss contingency. The Company accrues legal fees expected to be incurred in connection with loss contingencies as those fees are incurred by outside counsel as a period cost. The Company does not believe there are any pending legal proceedings that would have a material impact on the Company’s financial position, cash flows or results of operations.

SEGMENT AND GEOGRAPHIC INFORMAT

SEGMENT AND GEOGRAPHIC INFORMATION	6 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
SEGMENT AND GEOGRAPHIC INFORMATION	SEGMENT AND GEOGRAPHIC INFORMATION Subsequent to the spin-off from Integra, management assessed its segment reporting based on how it internally manages and reports the results of its business to its chief operating decision maker. The Company’s management reviews financial results, manages the business and allocates resources on an aggregate basis. Therefore, financial results are reported in a single operating segment: the development, manufacture and marketing of orthobiologics and spinal fusion hardware. The Company reports revenue in two product categories: orthobiologics and spinal fusion hardware. Orthobiologics products consist of a broad range of advanced and traditional bone graft substitutes that are designed to improve bone fusion rates following surgery. The spinal fusion hardware portfolio consists of an extensive line of products for minimally invasive surgery, complex spine, deformity and degenerative procedures. Revenue, net consisted of the following: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (In thousands) Orthobiologics $ 16,805 $ 17,026 $ 33,463 $ 33,055 Spinal fusion hardware 16,396 16,435 31,137 32,720 Total revenue, net $ 33,201 $ 33,461 $ 64,600 $ 65,775 The Company attributes revenues to geographic areas based on the location of the customer. Total revenue by major geographic area consisted of the following: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (In thousands) United States $ 30,012 $ 29,580 $ 58,556 $ 58,942 International 3,189 3,881 6,044 6,833 Total revenue, net $ 33,201 $ 33,461 $ 64,600 $ 65,775

SUMMARY OF SIGNIFICANT ACCOUN20

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The Company prepared the unaudited interim condensed consolidated financial statements included in this report in accordance with accounting principles generally accepted in the U.S. (“GAAP”). For periods prior to the spin-off, the Company’s consolidated financial statements were prepared on a stand-alone basis and derived from Integra's consolidated financial statements and accounting records related to its orthobiologics and spinal fusion hardware business. The Company relied on Integra for a significant portion of its operational and administrative support. The consolidated financial statements for all periods prior to the spin-off included allocations of certain Integra corporate expenses, including information technology resources and support; finance, accounting, and auditing services; real estate and facility management services; human resources activities; certain procurement activities; treasury services, legal advisory services and costs for research and development. These costs were allocated to the Company on the basis of direct usage when identifiable, with the remainder allocated on a pro-rata basis of revenue, standard costs of sales, or other measures. Integra used a centralized approach to cash management and financing of its operations and substantially all cash generated by the Company through May 4, 2015, the date the Company implemented a separate enterprise resource planning system for SeaSpine, was assumed to be remitted to Integra. Prior to the spin-off, cash management and financing transactions relating to the Company were accounted for through the Integra invested equity account. Accordingly, none of the Integra cash and cash equivalents at the corporate level were assigned to SeaSpine in the consolidated financial statements. Integra’s debt and related interest expense were not allocated to SeaSpine for any of the periods presented since the Company was not the legal obligor of the debt and Integra’s borrowings were not directly attributable to SeaSpine. Subsequent to the spin-off, the Company’s financial statements are presented on a consolidated basis, as the Company became a separate publicly-traded company on July 1, 2015. In the opinion of management, the June 30, 2016 unaudited condensed consolidated financial statements contain all adjustments (consisting only of normal recurring adjustments) necessary for a fair statement of the financial position, results of operations and cash flows of the Company. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto for the year ended December 31, 2015 included in the Company’s Annual Report on Form 10-K filed with the SEC. The Company performs its operational and administrative support using internal resources and purchased services, some of which have been provided by Integra for a fee pursuant to a transition services agreement. See Note 4, “Transactions with Integra,” for further information regarding the relationships the Company has with Integra.
Principles of Combination	Principles of Consolidation For periods prior to the spin-off, the consolidated financial statements include certain assets and liabilities that have historically been held at the Integra level but were specifically identifiable or otherwise attributable to the Company. All significant intra-company transactions within Integra's pre-spin off orthobiologics and spinal fusion hardware business have been eliminated. All significant transactions between the Company and other businesses of Integra before the spin-off are included in these condensed consolidated financial statements. For periods subsequent to the spin-off, the consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation.
Recently Issued and Adopted Accounting Standards	Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board ("FASB") issued Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) . The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should: 1) identify the contract(s) with a customer, 2) identify the performance obligations in the contract, 3) determine the transaction price, 4) allocate the transaction price to the performance obligations in the contract, and 5) recognize revenue when (or as) the entity satisfies a performance obligation. In July 2015, the FASB deferred for one year the effective date of the new revenue standard, but early adoption is permitted. The new standard will be effective for the Company on January 1, 2018. The Company is in the process of evaluating the impact of this standard on its financial statements. In August 2014, the FASB issued Update No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern . The amendment requires management to evaluate, for each annual and interim reporting period, whether there are conditions and events, considered in the aggregate, that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date the financial statements are issued or are available to be issued. If substantial doubt is raised, additional disclosures around management’s plan to alleviate these doubts are required. This update will become effective for all annual periods and interim reporting periods beginning after December 15, 2016. The implementation of the amended guidance is not expected to have an impact on current disclosures in our financial statements. In April 2015, the FASB issued Update No. 2015-03, Simplifying the Presentation of Debt Issuance Costs . The new standard requires debt issuance costs to be presented on the balance sheet as a direct reduction of the carrying value of the associated debt liability, consistent with the presentation of debt discounts. The recognition and measurement requirements did not change as a result of this guidance. The standard is effective for fiscal years beginning after December 15, 2015, and interim periods within fiscal years beginning after December 15, 2016, and requires a retrospective application. The guidance in Accounting Standards Update ("ASU") 2015-03 does not address presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements. In August 2015, the FASB issued ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. Under the new standard, the SEC staff will not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The implementation of the amended guidance did not have an impact on current disclosures in our financial statements. In July 2015, the FASB issued Update No. 2015-11, Simplifying the Measurement of Inventory (Topic 330). The new guidance requires an entity to measure inventory within the scope of the amendment at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The guidance is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The implementation of the amended guidance is not expected to have an impact on our financial statements. In November 2015, the FASB issued Update No. 2015-17, Income Taxes - Balance Sheet Reclassification of Deferred Taxes (Topic 740) . This ASU requires that deferred tax liabilities and assets be classified as non-current in a classified statement of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by the amendments in this update. The amendments in this update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted and the amendments may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company early adopted this ASU in the fourth quarter of 2015 on a prospective basis. The Company did not adjust our prior period consolidated balance sheet as a result of the adoption of this ASU. In February 2016, the FASB issued Update No. 2016-02, Leases (Topic 842) , which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. Topic 842 supersedes the previous leases standard, Topic 840 Leases. The standard is effective on January 1, 2019, with early adoption permitted. The Company is in the process of evaluating the impact of this new guidance. In March 2016, the FASB issued Update No. 2016-09, Improvements to Employee Share-Based Payment Accounting (Topic 718) . Under current accounting guidance an entity is required to report excess tax benefits and tax deficiencies to the extent of previous windfalls in equity when the tax benefit is realized. Excess settlements are currently reported as cash inflows from financing activities. The amendment requires that an entity present all excess tax benefits and all tax deficiencies as income tax expense or benefit in the statement of operations to be applied using a prospective transition method. Related tax settlements are to be presented as cash inflows from operating activities. The Company has the option to use either a prospective or retrospective transition method. The amendment removes the requirement to delay recognition of an excess tax benefit until the tax benefit is realized. A modified retrospective transition method must be applied. This update will become effective for all annual periods and interim reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company is in the process of evaluating the impact of this standard on its financial statements. In April 2016, the FASB issued Update No. 2016-10, Revenue from Contracts with Customers (Topic 606)- Identifying Performance Obligations and Licensing . The amendments in th is Update do not change the core principle of the guidance in Topic 606 stated in Update No. 2014-09. Rather, they clarify the following two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas. The new standard will be effective for the Company on January 1, 2018. The Company is in the process of evaluating the impact of this standard on its financial statements. In May 2016, the FASB issued Update No. 2016-11, Revenue Recognition (Topic 605) and Derivative and Hedging (Topic 815) . This Update rescinds certain SEC Staff Observer Comments that are codified in Topic 605, Revenue Recognition, and Topic 932, Extract Activities - Oil and Gas, upon adoption of Topic 606, Revenue from Contracts with Customers. Specifically, registrants should not rely on the following SEC Staff Observer comments: a. Revenue and Expense Recognition for Freight Services in Process; b. Accounting for Shipping and Handling Fees and Costs; c. Accounting for Consideration Given by a Vendor to a Customer (including Reseller of the Vendor’s Products); d. Accounting for Gas-Balancing Arrangements (that is, use of the “entitlements method”). The new standard will be effective for the Company upon adoption of Topic 606 on January 1, 2018. The Company is in the process of evaluating the impact of this standard on its financial statements. In May 2016, the FASB issued Update No. 2016-12, Revenue from Contracts with Customers (Topic 606)- Narrow-Scope Improvements and Practical Expedients . The amendments in th is Update do not change the core principle of the guidance in Topic 606 stated in Update No. 2014-09. Rather, they address certain issues identified by the Transition Resource Group for Revenue Recognition in the guidance on assessing collectability, presentation of sales taxes, noncash consideration, and completed contracts and contract modifications at transition. The new standard will be effective for the Company on January 1, 2018. The Company is in the process of evaluating the impact of this standard on its financial statements.
Schedule of Earnings Per Share, Basic and Diluted	For periods prior to the spin-off, basic and diluted net loss per share was calculated based on the approximately 11.0 million shares of SeaSpine common stock that were distributed to Integra shareholders on July 1, 2015. For periods subsequent to the spin-off, basic and diluted net loss per share was calculated using the weighted-average number of shares of common stock outstanding during the period. The weighted average number of shares used to compute diluted net loss per share excludes any assumed exercise of stock options, and any assumed issuance of common stock under restricted stock units as the effect would be antidilutive. Common stock equivalents of 2.8 million shares for the three and six months ended June 30, 2016 were excluded from the calculation because of their antidilutive effect.

TRANSACTIONS WITH INTEGRA (Tabl

TRANSACTIONS WITH INTEGRA (Tables)	6 Months Ended
	Jun. 30, 2016
Related Party Transactions [Abstract]
Schedule of Related Party Transactions	The following table summarizes the components of the net increase in Integra net investment for the six months ended June 30, 2015 . The Integra net investment was reclassified to Additional Paid-in Capital in connection with the spin-off. Six Months Ended June 30, 2015 (In thousands) Cash pooling and general financing activities (a) $ 34,361 Corporate Allocations (excluding non-cash adjustments) 8,788 Total Integra net investment in financing activities within cash flow statement 43,149 Non-cash adjustments (b) 29,806 Foreign exchange impact 291 Net increase in Integra investment $ 73,246 (a) Includes financing activities for capital transfers, cash sweeps and other treasury services. (b) Reflects allocation of non-cash charges from Integra, including stock-based compensation and settlement of related-party payable to Integra net investment. The allocation methods include pro-rata basis of revenue, standard cost of sales or other measures. Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 (In thousands) Cost of goods sold $ 244 $ 488 Selling, general and administrative 4,383 8,633 Research and development 148 253 Total Allocated Costs $ 4,775 $ 9,374

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Jun. 30, 2016
Inventory, Net [Abstract]
Schedule of Inventory, Net	Inventories consisted of the following: June 30, 2016 December 31, 2015 (In thousands) Finished goods $ 32,285 $ 29,845 Work in process 12,146 15,574 Raw materials 3,862 5,852 $ 48,293 $ 51,271

PROPERTY, PLANT AND EQUIPMENT (

PROPERTY, PLANT AND EQUIPMENT (Tables)	6 Months Ended
	Jun. 30, 2016
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	Property, plant and equipment balances and corresponding useful lives were as follows: June 30, 2016 December 31, 2015 Useful Lives (In thousands) Leasehold improvement $ 6,020 $ 4,830 Lease Term Machinery and production equipment 6,530 6,404 3-10 years Spinal hardware instrument sets 25,450 25,080 5 years Information systems and hardware 6,972 6,872 3-7 years Furniture and fixtures 1,194 944 3-5 years Construction in progress 8,338 8,375 Total 54,504 52,505 Less accumulated depreciation and amortization (32,646 ) (30,547 ) Property, plant and equipment, net $ 21,858 $ 21,958

IDENTIFIABLE INTANGIBLE ASSETS

IDENTIFIABLE INTANGIBLE ASSETS (Tables)	6 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Components of Company's Identifiable Intangible Assets	The components of the Company’s identifiable intangible assets were as follows: June 30, 2016 Weighted Average Life Cost Accumulated Amortization Net (Dollars in thousands) Completed technology 12 years $ 31,169 $ (20,629 ) $ 10,540 Customer relationships 12 years 56,830 (31,648 ) 25,182 Trademarks/brand names — 300 (300 ) — $ 88,299 $ (52,577 ) $ 35,722 December 31, 2015 Weighted Average Life Cost Accumulated Amortization Net (Dollars in thousands) Completed technology 12 years $ 31,169 $ (19,280 ) $ 11,889 Customer relationships 12 years 56,830 (29,087 ) 27,743 Trademarks/brand names — 300 (300 ) — $ 88,299 $ (48,667 ) $ 39,632

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	Stock option grants to employees generally have requisite service periods of four years, and stock option grants to non-employee directors generally have a requisite service period of one year. Both are subject to graded vesting. The Company records stock-based compensation expense associated with stock options on an accelerated basis over the various vesting periods within each grant and based on their fair value at the date of grant using the Black-Scholes-Merton option pricing model. The following weighted-average assumptions were used in the calculation of fair value for options grants for the three and six months ended June 30, 2016 , respectively: Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 Expected dividend yield 0 % 0 % Risk-free interest rate 1.2 % 1.3 % Expected volatility 38.2 % 38.3 % Expected term (in years) 4.8 4.9
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions [Table Text Block]	The Company estimates the fair value of shares issued to employees under the ESPP using the Black-Scholes-Merton option-pricing model. The following weighted average assumptions were used in the calculation of fair value of shares under the ESPP at the grant date: June 30, 2016 Expected dividend yield 0 % Risk-free interest rate 0.7 % Expected volatility 32.4 % Expected term (in years) 1.3

LEASES (Tables)

LEASES (Tables)	6 Months Ended
	Jun. 30, 2016
Leases [Abstract]
Schedule of Future Minimum Lease Payments for Capital Leases	Future minimum lease payments under these operating leases at June 30, 2016 are as follows: Payments Due by Calendar Year (In thousands) 2016 $ 1,063 2017 2,177 2018 2,208 2019 2,262 2020 2,317 Thereafter 12,160 Total minimum lease payments $ 22,187

INCOME TAXES (Tables)

INCOME TAXES (Tables)	6 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Schedule of effective income tax rate reconciliation	The following table provides a summary of the Company’s effective tax rate for the three and six months ended June 30, 2016 and 2015 : Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Reported tax rate 3.5 % (9.6 )% 1.9 % (9.6 )%

SEGMENT AND GEOGRAPHIC INFORM28

SEGMENT AND GEOGRAPHIC INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
Total Revenue By Major Geographic Area	Revenue, net consisted of the following: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (In thousands) Orthobiologics $ 16,805 $ 17,026 $ 33,463 $ 33,055 Spinal fusion hardware 16,396 16,435 31,137 32,720 Total revenue, net $ 33,201 $ 33,461 $ 64,600 $ 65,775 The Company attributes revenues to geographic areas based on the location of the customer. Total revenue by major geographic area consisted of the following: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (In thousands) United States $ 30,012 $ 29,580 $ 58,556 $ 58,942 International 3,189 3,881 6,044 6,833 Total revenue, net $ 33,201 $ 33,461 $ 64,600 $ 65,775

SUMMARY OF SIGNIFICANT ACCOUN29

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Narrative (Details) - USD ($) shares in Thousands, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Property, Plant and Equipment [Line Items]
Weighted Average Number of Shares Outstanding, Basic and Diluted	11,179	11,048	11,173	11,048
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	2,800
Inventories [Member]
Property, Plant and Equipment [Line Items]
Prior Period Reclassification Adjustment				$ 0.7

CREDIT AGREEMENT Credit Agreeme

CREDIT AGREEMENT Credit Agreement (Details)	Dec. 24, 2015USD ($)	Dec. 31, 2015USD ($)	Jun. 30, 2016USD ($)
Credit Agreement [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Expiration Period	3 years
Line Of Credit Facility, Extension Period	1 year
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage		0.375%
Unamortized Debt Issuance Expense			$ 400,000
Debt Instrument, Covenant, Fixed Charge Ratio, Minimum		1.1
Debt Instrument, Covenant Description, Required Liquidity		$ 5,000,000
Credit Agreement [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 30,000,000
Long-term Line of Credit			$ 400,000
Credit Agreement [Member] | Minimum
Line of Credit Facility [Line Items]
Line of Credit Facility, Current Borrowing Capacity		10,000,000
Credit Agreement [Member] | Maximum
Line of Credit Facility [Line Items]
Line of Credit Facility, Current Borrowing Capacity		$ 20,000,000
Credit Agreement, Contingent Interest Rate Three [Member] | Base Rate [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate		1.75%
Credit Agreement, Contingent Interest Rate Three [Member] | London Interbank Offered Rate (LIBOR) [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate		2.75%
Credit Agreement. Contingent Interest Rate Two [Member] | Base Rate [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate		1.50%
Credit Agreement. Contingent Interest Rate Two [Member] | London Interbank Offered Rate (LIBOR) [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate		2.50%
Credit Agreement, Contingent Interest Rate One [Member] | Base Rate [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate		1.25%
Credit Agreement, Contingent Interest Rate One [Member] | London Interbank Offered Rate (LIBOR) [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate		2.25%

TRANSACTIONS WITH INTEGRA Narra

TRANSACTIONS WITH INTEGRA Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Related Party Transaction [Line Items]
Purchases			$ 9	$ 4,590
Related party costs incurred during the period	$ 100		300
Other amounts due from Integra	500		500
Stock-based compensation			3,587	197
Integra | Affiliated Entity
Related Party Transaction [Line Items]
Purchases	500	$ 1,400	1,000	2,500
Revenue from Related Parties			200
Increase (Decrease) in Accounts Receivable, Related Parties	$ 300		$ 300
Stock-based compensation		$ 300		$ 600

TRANSACTIONS WITH INTEGRA Alloc

TRANSACTIONS WITH INTEGRA Allocated Costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Related Party Transaction [Line Items]
Stock-based compensation			$ 3,587	$ 197
Cost of goods sold	$ 13,930	$ 14,506	28,213	27,107
Selling, general and administrative	26,989	31,660	52,363	56,711
Research and development	$ 3,181	2,027	$ 5,934	3,609
Integra | Affiliated Entity
Related Party Transaction [Line Items]
Stock-based compensation		300		600
Cost of goods sold		244		488
Selling, general and administrative		4,383		8,633
Research and development		148		253
Total Allocated Costs		$ 4,775		$ 9,374

TRANSACTIONS WITH INTEGRA Integ

TRANSACTIONS WITH INTEGRA Integra Net Investment (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Related Party Transaction [Line Items]
Reclassification of Integra investment	$ 0	$ 43,149
Integra | Affiliated Entity
Related Party Transaction [Line Items]
Reclassification of Integra investment		73,246
Cash pooling and general financing activities | Integra | Affiliated Entity
Related Party Transaction [Line Items]
Reclassification of Integra investment		34,361
Corporate Allocations (excluding non-cash adjustments) | Integra | Affiliated Entity
Related Party Transaction [Line Items]
Reclassification of Integra investment		8,788
Total Integra net investment in financing activities within cash flow statement | Integra | Affiliated Entity
Related Party Transaction [Line Items]
Reclassification of Integra investment		43,149
Non-cash adjustments | Integra | Affiliated Entity
Related Party Transaction [Line Items]
Reclassification of Integra investment		29,806
Foreign exchange impact | Integra | Affiliated Entity
Related Party Transaction [Line Items]
Reclassification of Integra investment		$ 291

INVENTORIES Schedule of Invento

INVENTORIES Schedule of Inventories, net (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Inventory, Net [Abstract]
Finished goods	$ 32,285	$ 29,845
Work in process	12,146	15,574
Raw materials	3,862	5,852
Inventories, net	$ 48,293	$ 51,271

PROPERTY, PLANT AND EQUIPMENT N

PROPERTY, PLANT AND EQUIPMENT Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Property, Plant and Equipment [Abstract]
Depreciation	$ 1,100	$ 900	$ 2,300	$ 1,800
Spinal hardware instrument replacement expense	$ 200	$ 300	$ 760	$ 496

PROPERTY, PLANT AND EQUIPMENT P

PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment balances (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Total	$ 54,504	$ 52,505
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	32,646	30,547
Property, plant and equipment, net	21,858	21,958
Leasehold improvement
Property, Plant and Equipment [Line Items]
Total	$ 6,020	4,830
Leasehold improvement | Minimum
Property, Plant and Equipment [Line Items]
Useful Lives (in years)	1 year
Leasehold improvement | Maximum
Property, Plant and Equipment [Line Items]
Useful Lives (in years)	20 years
Machinery and production equipment
Property, Plant and Equipment [Line Items]
Total	$ 6,530	6,404
Machinery and production equipment | Minimum
Property, Plant and Equipment [Line Items]
Useful Lives (in years)	3 years
Machinery and production equipment | Maximum
Property, Plant and Equipment [Line Items]
Useful Lives (in years)	10 years
Spinal hardware instrument sets
Property, Plant and Equipment [Line Items]
Total	$ 25,450	25,080
Spinal hardware instrument sets | Minimum
Property, Plant and Equipment [Line Items]
Useful Lives (in years)	5 years
Spinal hardware instrument sets | Maximum
Property, Plant and Equipment [Line Items]
Useful Lives (in years)	5 years
Information systems and hardware
Property, Plant and Equipment [Line Items]
Total	$ 6,972	6,872
Information systems and hardware | Minimum
Property, Plant and Equipment [Line Items]
Useful Lives (in years)	3 years
Information systems and hardware | Maximum
Property, Plant and Equipment [Line Items]
Useful Lives (in years)	7 years
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total	$ 1,194	944
Furniture and fixtures | Minimum
Property, Plant and Equipment [Line Items]
Useful Lives (in years)	3 years
Furniture and fixtures | Maximum
Property, Plant and Equipment [Line Items]
Useful Lives (in years)	5 years
Construction in progress
Property, Plant and Equipment [Line Items]
Total	$ 8,338	$ 8,375

IDENTIFIABLE INTANGIBLE ASSET37

IDENTIFIABLE INTANGIBLE ASSETS Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Finite-Lived Intangible Assets [Line Items]
Annual amortization expense expected to approximate in 2016	$ 7		$ 7
Annual amortization expense expected to approximate in 2017	5.8		5.8
Annual amortization expense expected to approximate in 2018	5.5		5.5
Annual amortization expense expected to approximate in 2019	4.8		4.8
Annual amortization expense expected to approximate in 2020	4		4
Intangible asset amortization	1.9	$ 2	3.9	$ 4.1
Completed technology | Cost of goods sold
Finite-Lived Intangible Assets [Line Items]
Intangible asset amortization	$ 0.6		$ 1.3

IDENTIFIABLE INTANGIBLE ASSET38

IDENTIFIABLE INTANGIBLE ASSETS Components of Company's Identifiable Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Cost	$ 88,299		$ 88,299
Accumulated Amortization	(52,577)		(48,667)
Net	$ 35,722		39,632
Completed technology
Finite-Lived Intangible Assets [Line Items]
Weighted Average Life (in years)	12 years	12 years
Cost	$ 31,169		31,169
Accumulated Amortization	(20,629)		(19,280)
Net	$ 10,540		11,889
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Weighted Average Life (in years)	12 years	12 years
Cost	$ 56,830		56,830
Accumulated Amortization	(31,648)		(29,087)
Net	25,182		27,743
Trademarks/brand names
Finite-Lived Intangible Assets [Line Items]
Cost	300		300
Accumulated Amortization	(300)		(300)
Net	$ 0		$ 0

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Detail) - USD ($)	Mar. 30, 2016	Jan. 27, 2016	Jun. 30, 2016	Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized	1,209,500	300,000	1,509,500
Restricted stock awards issued				75,075
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			156,492	857,024
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized			2,000,000	2,000,000
Employee Stock Purchase Plan [Member]
Stock Options
Expected dividend yield			0.00%
Risk-free interest rate			0.70%
Expected volatility			32.40%
Expected term (in years)			1 year 3 months
Restricted Stock Awards and Performance Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Requisite service periods of awards (in years)			3 years
Expected forfeiture rate			10.00%
Total unrecognized compensation costs			$ 800,000	$ 800,000
Recognition period (in years)			1 year
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected forfeiture rate			10.00%
Total unrecognized compensation costs			$ 4,100,000	$ 4,100,000
Recognition period (in years)			1 year 5 months 15 days
Stock Options
Expected dividend yield			0.00%	0.00%
Risk-free interest rate			1.20%	1.30%
Expected volatility			38.20%	38.30%
Expected term (in years)			4 years 9 months	4 years 11 months
Contingent Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			85,500	632,599
Employee Stock [Member] | Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Stock Purchase Plan, Maximum Contributions Per Employee, Percent			15.00%
Employee Stock Purchase Plan, Maximum Annual Contributions Per Employee			$ 25,000
Employee Stock Purchase Plan, Stock Purchase Price, Percentage of Market Price			85.00%	85.00%
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized			400,000	400,000
Share-based Compensation Arrangement by Share-based Payment Award, Shares Purchased for Award				39,955

LEASES Operating lease annual p

LEASES Operating lease annual payment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Leases [Abstract]
2,016	$ 1,063		$ 1,063
2,017	2,177		2,177
2,018	2,208		2,208
2,019	2,262		2,262
2,020	2,317		2,317
Thereafter	12,160		12,160
Total minimum lease payments	22,187		22,187
Operating Leases, Rent Expense	$ 800	$ 600	$ 1,600	$ 1,200

INCOME TAXES (Details)

INCOME TAXES (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Tax Disclosure [Abstract]
Reported tax rate (as a percent)	3.50%	(9.60%)	1.90%	(9.60%)

SEGMENT AND GEOGRAPHIC INFORM42

SEGMENT AND GEOGRAPHIC INFORMATION Narrative (Detail)	3 Months Ended
	Jun. 30, 2016product
Segment Reporting [Abstract]
Number of product categories	2

SEGMENT AND GEOGRAPHIC INFORM43

SEGMENT AND GEOGRAPHIC INFORMATION Revenue (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Segment Reporting Information [Line Items]
Revenues	$ 33,201	$ 33,461	$ 64,600	$ 65,775
United States
Segment Reporting Information [Line Items]
Revenues	30,012	29,580	58,556	58,942
International
Segment Reporting Information [Line Items]
Revenues	3,189	3,881	6,044	6,833
Orthobiologics
Segment Reporting Information [Line Items]
Revenues	16,805	17,026	33,463	33,055
Spinal fusion hardware
Segment Reporting Information [Line Items]
Revenues	$ 16,396	$ 16,435	$ 31,137	$ 32,720