Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 14, 2014 | Jun. 30, 2013 | |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Central Index Key | '0000784199 | ' | ' |
Entity Registrant Name | 'CRYOLIFE INC | ' | ' |
Trading Symbol | 'cry | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 27,894,710 | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Public Float | ' | ' | $155,031,053 |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Current assets: | ' | ' |
Cash and cash equivalents | $37,643,000 | $13,009,000 |
Restricted cash and securities | 5,350,000 | 323,000 |
Receivables: | ' | ' |
Trade accounts, net | 17,838,000 | 15,941,000 |
Other | 469,000 | 579,000 |
Total receivables | 18,307,000 | 16,520,000 |
Deferred preservation costs | 27,297,000 | 27,954,000 |
Inventories | 9,771,000 | 10,557,000 |
Deferred income taxes | 5,162,000 | 6,100,000 |
Prepaid expenses and other | 2,797,000 | 3,040,000 |
Total current assets | 106,327,000 | 77,503,000 |
Property and equipment: | ' | ' |
Equipment and software | 26,976,000 | 24,007,000 |
Furniture and fixtures | 4,390,000 | 4,339,000 |
Leasehold improvements | 30,051,000 | 29,440,000 |
Total property and equipment | 61,417,000 | 57,786,000 |
Less accumulated depreciation and amortization | 49,246,000 | 46,119,000 |
Net property and equipment | 12,171,000 | 11,667,000 |
Other assets: | ' | ' |
Investment in equity securities | ' | 5,908,000 |
Restricted cash | ' | 5,000,000 |
Goodwill | 11,365,000 | 11,365,000 |
Patents, less accumulated amortization of $2,414 in 2013 and $2,530 in 2012 | 1,934,000 | 2,114,000 |
Trademarks and other intangibles, less accumulated amortization of $4,593 in 2013 and $2,886 in 2012 | 19,985,000 | 21,968,000 |
Notes receivable | 2,000,000 | 2,000,000 |
Deferred income taxes | 16,885,000 | 16,564,000 |
Other | 4,016,000 | 3,067,000 |
Total assets | 174,683,000 | 157,156,000 |
Current liabilities: | ' | ' |
Accounts payable | 4,137,000 | 3,156,000 |
Taxes payable | 1,377,000 | 619,000 |
Accrued compensation | 4,886,000 | 5,055,000 |
Accrued procurement fees | 5,427,000 | 4,762,000 |
Accrued expenses | 2,411,000 | 4,205,000 |
Deferred income | 316,000 | 1,401,000 |
Other | 2,168,000 | 2,232,000 |
Total current liabilities | 20,722,000 | 21,430,000 |
Contingent consideration liability | 1,884,000 | 1,912,000 |
Deferred compensation liability | 1,533,000 | 796,000 |
Deferred rent obligations | 1,686,000 | 1,603,000 |
Other | 4,111,000 | 3,303,000 |
Total liabilities | 29,936,000 | 29,044,000 |
Shareholders' equity: | ' | ' |
Common stock $0.01 par value per share, 75,000 shares authorized, 28,244 shares issued in 2013 and 27,486 shares issued in 2012 | 282,000 | 275,000 |
Additional paid-in capital | 128,585,000 | 122,414,000 |
Retained earnings | 18,741,000 | 5,536,000 |
Accumulated other comprehensive income (loss) | 7,000 | -39,000 |
Treasury stock at cost, 413 shares in 2013 and 14 shares in 2012 | -2,868,000 | -74,000 |
Total shareholders' equity | 144,747,000 | 128,112,000 |
Total liabilities and shareholders' equity | 174,683,000 | 157,156,000 |
Series A Junior Participating Preferred Stock [Member] | ' | ' |
Shareholders' equity: | ' | ' |
Preferred stock | ' | ' |
Convertible Preferred Stock [Member] | ' | ' |
Shareholders' equity: | ' | ' |
Preferred stock | ' | ' |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Trademarks and other intangibles, accumulated amortization | $4,593 | $2,886 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 28,244,000 | 27,486,000 |
Treasury stock, shares | 413,000 | 14,000 |
Series A Junior Participating Preferred Stock [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 0 | 0 |
Convertible Preferred Stock [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Preferred stock, shares authorized | 460,000 | 460,000 |
Preferred stock, shares issued | 0 | 0 |
Patents [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Accumulated amortization | $2,414 | $2,530 |
Consolidated_Statement_Of_Oper
Consolidated Statement Of Operations And Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues: | ' | ' | ' |
Products | $76,194 | $67,496 | $59,387 |
Preservation services | 64,498 | 63,603 | 59,793 |
Other | 71 | 619 | 446 |
Total revenues | 140,763 | 131,718 | 119,626 |
Cost of products and preservation services: | ' | ' | ' |
Products | 15,147 | 11,380 | 9,442 |
Preservation services | 35,230 | 35,320 | 34,340 |
Total cost of products and preservation services: | 50,377 | 46,700 | 43,782 |
Gross margin | 90,386 | 85,018 | 75,844 |
Operating expenses: | ' | ' | ' |
General, administrative, and marketing | 68,112 | 65,149 | 57,302 |
Research and development | 8,454 | 7,257 | 6,899 |
Total operating expenses | 76,566 | 72,406 | 64,201 |
Operating income | 13,820 | 12,612 | 11,643 |
Interest expense | 71 | 179 | 142 |
Interest income | -4 | -6 | -14 |
Gain on sale of Medafor investment | -12,742 | ' | ' |
Other than temporary investment impairment | 3,229 | 340 | ' |
Other (income) expense, net | -26 | 47 | 49 |
Income before income taxes | 23,292 | 12,052 | 11,466 |
Income tax expense | 7,120 | 4,106 | 4,095 |
Net income | 16,172 | 7,946 | 7,371 |
Income per common share: | ' | ' | ' |
Basic | $0.59 | $0.29 | $0.26 |
Diluted | $0.57 | $0.28 | $0.26 |
Dividends declared per share | $0.11 | $0.05 | ' |
Weighted-average common shares outstanding: | ' | ' | ' |
Basic | 26,885 | 26,967 | 27,441 |
Diluted | 27,698 | 27,411 | 27,759 |
Net income | 16,172 | 7,946 | 7,371 |
Other comprehensive income (loss) | 46 | -33 | 26 |
Comprehensive income | $16,218 | $7,913 | $7,397 |
Consolidated_Statement_Of_Cash
Consolidated Statement Of Cash Flows (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Net cash flows from operating activities: | ' | ' | ' |
Net income | $16,172,000 | $7,946,000 | $7,371,000 |
Adjustments to reconcile net income to net cash from operating activities: | ' | ' | ' |
Gain on sale of Medafor investment | -12,742,000 | ' | ' |
Depreciation and amortization | 5,843,000 | 5,633,000 | 4,960,000 |
Non-cash compensation | 3,240,000 | 3,162,000 | 2,790,000 |
Other than temporary investment impairment | 3,229,000 | 340,000 | ' |
Write-down of deferred preservation costs and inventories | 1,693,000 | 288,000 | 270,000 |
Deferred income taxes | 617,000 | 1,227,000 | 1,767,000 |
Other non-cash adjustments to income | 298,000 | 683,000 | 767,000 |
Changes in operating assets and liabilities: | ' | ' | ' |
Receivables | -1,637,000 | 1,363,000 | -2,230,000 |
Deferred preservation costs and inventories | 193,000 | -1,598,000 | 2,445,000 |
Prepaid expenses and other assets | -706,000 | -583,000 | -617,000 |
Accounts payable, accrued expenses, and other liabilities | 572,000 | 529,000 | -772,000 |
Net cash flows provided by operating activities | 16,772,000 | 18,990,000 | 16,751,000 |
Net cash flows from investing activities: | ' | ' | ' |
Proceeds from sale of Medafor investment | 15,421,000 | ' | ' |
Capital expenditures | -4,338,000 | -3,070,000 | -2,538,000 |
Advances under notes receivable | ' | -2,000,000 | ' |
Purchases of restricted securities and investments | ' | ' | -3,569,000 |
Other | -206,000 | -810,000 | -547,000 |
Net cash flows provided by (used in) investing activities | 10,877,000 | -22,920,000 | -27,716,000 |
Net cash flows from financing activities: | ' | ' | ' |
Proceeds from exercise of stock options and issuance of common stock | 2,207,000 | 330,000 | 694,000 |
Cash dividends paid | -2,967,000 | -1,373,000 | ' |
Repurchases of common stock | -1,523,000 | -3,529,000 | -3,064,000 |
Other | -768,000 | -143,000 | -476,000 |
Net cash flows used in financing activities | -3,051,000 | -4,715,000 | -2,846,000 |
Increase (decrease) in cash and cash equivalents | 24,598,000 | -8,645,000 | -13,811,000 |
Effect of exchange rate changes on cash | 36,000 | -51,000 | 19,000 |
Cash and cash equivalents, beginning of year | 13,009,000 | 21,705,000 | 35,497,000 |
Cash and cash equivalents, end of year | 37,643,000 | 13,009,000 | 21,705,000 |
Hemosphere [Member] | ' | ' | ' |
Net cash flows from investing activities: | ' | ' | ' |
Acquisition, net of cash acquired | ' | -17,040,000 | ' |
Cardiogenesis [Member] | ' | ' | ' |
Net cash flows from investing activities: | ' | ' | ' |
Acquisition, net of cash acquired | ' | ' | ($21,062,000) |
Consolidated_Statement_Of_Shar
Consolidated Statement Of Shareholders' Equity (USD $) | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings (Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Total |
In Thousands, except Share data | ||||||
Balance at Dec. 31, 2010 | $300 | $133,845 | ($8,408) | ($32) | ($11,763) | $113,942 |
Balance, shares at Dec. 31, 2010 | 29,950,000 | ' | ' | ' | -2,049,000 | ' |
Net income | ' | ' | 7,371 | ' | ' | 7,371 |
Other comprehensive income (loss) | ' | ' | ' | 26 | ' | 26 |
Comprehensive income | ' | ' | ' | ' | ' | 7,397 |
Equity compensation | ' | 965 | ' | ' | 2,049 | 3,014 |
Equity compensation, shares | -25,000 | ' | ' | ' | 360,000 | ' |
Exercise of options | 1 | 380 | ' | ' | 27 | 408 |
Exercise of options, shares | 84,000 | ' | ' | ' | 37,000 | 260,000 |
Employee stock purchase plan | ' | 286 | ' | ' | ' | 286 |
Employee stock purchase plan, shares | 64,000 | ' | ' | ' | ' | 64,000 |
Excess tax shortfall | ' | -445 | ' | ' | ' | -445 |
Repurchase of common stock | ' | ' | ' | ' | -2,926 | -2,926 |
Repurchase of common stock, shares | ' | ' | ' | ' | -593,000 | ' |
Redemption and repurchase of stock to cover tax withholdings | ' | -28 | ' | ' | -110 | -138 |
Redemption and repurchase of stock to cover tax withholdings, shares | -6,000 | ' | ' | ' | -20,000 | ' |
Balance at Dec. 31, 2011 | 301 | 135,003 | -1,037 | -6 | -12,723 | 121,538 |
Balance, shares at Dec. 31, 2011 | 30,067,000 | ' | ' | ' | -2,265,000 | ' |
Net income | ' | ' | 7,946 | ' | ' | 7,946 |
Other comprehensive income (loss) | ' | ' | ' | -33 | ' | -33 |
Comprehensive income | ' | ' | ' | ' | ' | 7,913 |
Cash dividends paid | ' | ' | -1,373 | ' | ' | -1,373 |
Equity compensation | ' | 2,410 | ' | ' | 966 | 3,376 |
Equity compensation, shares | 37,000 | ' | ' | ' | 229,000 | ' |
Exercise of options | ' | 37 | ' | ' | ' | 37 |
Exercise of options, shares | 8,000 | ' | ' | ' | ' | 48,000 |
Employee stock purchase plan | 1 | 292 | ' | ' | ' | 293 |
Employee stock purchase plan, shares | 72,000 | ' | ' | ' | ' | 72,000 |
Excess tax shortfall | ' | -143 | ' | ' | ' | -143 |
Repurchase of common stock | ' | ' | ' | ' | -3,310 | -3,310 |
Repurchase of common stock, shares | ' | ' | ' | ' | -639,000 | ' |
Redemption and repurchase of stock to cover tax withholdings | ' | -66 | ' | ' | -153 | -219 |
Redemption and repurchase of stock to cover tax withholdings, shares | -11,000 | ' | ' | ' | -26,000 | ' |
Shares retired | -27 | -15,119 | ' | ' | 15,146 | ' |
Shares retired, shares | -2,687,000 | ' | ' | ' | 2,687,000 | ' |
Balance at Dec. 31, 2012 | 275 | 122,414 | 5,536 | -39 | -74 | 128,112 |
Balance, shares at Dec. 31, 2012 | 27,486,000 | ' | ' | ' | -14,000 | ' |
Net income | ' | ' | 16,172 | ' | ' | 16,172 |
Other comprehensive income (loss) | ' | ' | ' | 46 | ' | 46 |
Comprehensive income | ' | ' | ' | ' | ' | 16,218 |
Cash dividends paid | ' | ' | -2,967 | ' | ' | -2,967 |
Equity compensation | 3 | 3,465 | ' | ' | ' | 3,468 |
Equity compensation, shares | 352,000 | ' | ' | ' | ' | ' |
Exercise of options | 4 | 2,728 | ' | ' | -1,000 | 1,732 |
Exercise of options, shares | 365,000 | ' | ' | ' | -102,000 | 365,000 |
Employee stock purchase plan | 1 | 474 | ' | ' | ' | 475 |
Employee stock purchase plan, shares | 97,000 | ' | ' | ' | ' | 97,000 |
Excess tax shortfall | ' | -87 | ' | ' | ' | -87 |
Repurchase of common stock | ' | ' | ' | ' | -1,523 | -1,523 |
Repurchase of common stock, shares | ' | ' | ' | ' | -253,000 | ' |
Redemption and repurchase of stock to cover tax withholdings | -1 | -409 | ' | ' | -271 | -681 |
Redemption and repurchase of stock to cover tax withholdings, shares | -56,000 | ' | ' | ' | -44,000 | ' |
Balance at Dec. 31, 2013 | $282 | $128,585 | $18,741 | $7 | ($2,868) | $144,747 |
Balance, shares at Dec. 31, 2013 | 28,244,000 | ' | ' | ' | -413,000 | ' |
Consolidated_Statement_Of_Shar1
Consolidated Statement Of Shareholders' Equity (Parenthetical) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Consolidated Statement Of Stockholders' Equity [Abstract] | ' | ' |
Cash dividends paid per share | $0.11 | $0.05 |
Summary_Of_Significant_Account
Summary Of Significant Accounting Policies | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Summary Of Significant Accounting Policies [Abstract] | ' | ||||||||
Summary Of Significant Accounting Policies | ' | ||||||||
1. Summary of Significant Accounting Policies | |||||||||
Nature of Business | |||||||||
CryoLife, Inc. (“CryoLife,” the “Company,” “we,” or “us”) develops, manufactures, and commercializes medical devices for cardiac and vascular applications and preserves and distributes human tissues for transplantation. CryoLife’s surgical sealants and hemostats include BioGlue® Surgical Adhesive (“BioGlue”), BioFoam® Surgical Matrix (“BioFoam”), and PerClot®, an absorbable powdered hemostat, which the Company distributes internationally for Starch Medical, Inc. (“SMI”). CryoLife’s subsidiary, Cardiogenesis Corporation (“Cardiogenesis”), specializes in the treatment of coronary artery disease using a laser console system and single use, fiber-optic handpieces to treat patients with severe angina. CryoLife and its subsidiary, Hemosphere, Inc. (“Hemosphere”), market the Hemodialysis Reliable Outflow Graft (“HeRO® Graft”), which is a solution for end-stage renal disease (“ESRD”) in certain hemodialysis patients. The cardiac and vascular human tissues distributed by CryoLife include the CryoValve® SG pulmonary heart valve (“CryoValve SGPV”) and the CryoPatch® SG pulmonary cardiac patch tissue (“CryoPatch SG”), both of which are processed using CryoLife’s proprietary SynerGraft® technology. | |||||||||
Principles of Consolidation | |||||||||
The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant inter-company accounts and transactions have been eliminated in consolidation. | |||||||||
Translation of Foreign Currencies | |||||||||
The Company’s revenues and expenses transacted in foreign currencies are translated as they occur at exchange rates in effect at the time of each transaction. Realized gains and losses on foreign currency transactions are recorded as a component of other (income) expense, net on the Company’s Consolidated Statements of Operations and Comprehensive Income. Assets and liabilities of the Company denominated in foreign currencies are translated at the exchange rate in effect as of the balance sheet date and are recorded as a separate component of accumulated other comprehensive income (loss) in the shareholders' equity section of the Company’s Consolidated Balance Sheets. | |||||||||
Use of Estimates | |||||||||
The preparation of the accompanying consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Estimates and assumptions are used when accounting for investments, allowance for doubtful accounts, deferred preservation costs, acquired assets or businesses, long‑lived tangible and intangible assets, deferred income taxes, commitments and contingencies (including product and tissue processing liability claims, claims incurred but not reported, and amounts recoverable from insurance companies), stock based compensation, certain accrued liabilities (including accrued procurement fees, income taxes, and financial instruments), contingent consideration liability, and other items as appropriate. | |||||||||
Revenue Recognition | |||||||||
Revenues for products, including: BioGlue, BioFoam, PerClot, HemoStase, revascularization technologies handpieces and accessories, HeRO Grafts, and other medical devices, are recognized at the time the product is shipped, at which time title passes to the customer, and there are no further performance obligations. The Company recognizes revenues for preservation services when services are completed and tissue is shipped to the customer. Revenues from research grants are recognized in the period the associated costs are incurred. Revenues from upfront licensing agreements are recognized ratably over the period the Company expects to fulfill its obligations. | |||||||||
Revenues from the sale of laser consoles are considered multiple element arrangements, and such revenues are allocated to the elements of the sale. The Company allocates revenues based primarily on the revenue these individual elements would generate if sold separately. Revenues from domestic laser consoles sales are typically recognized when the laser is installed at a customer site and all materials for the laser console’s use are delivered. Revenues from the sales of laser consoles to international distributors are evaluated individually based on the terms of the sale and collectability to determine when revenue has been earned and can be recognized. | |||||||||
Shipping and Handling Charges | |||||||||
Fees charged to customers for shipping and handling of products and tissues are included in product revenues and preservation services revenues, respectively. The costs for shipping and handling of products and tissues are included as a component of cost of products and cost of preservation services, respectively. | |||||||||
Advertising Costs | |||||||||
The costs to develop, produce, and communicate the Company’s advertising are expensed as incurred and are classified as general, administrative, and marketing expenses. The Company records the cost to print or copy certain sales materials as a prepaid expense and amortizes these costs as an advertising expense over the period they are expected to be used, typically six months to one year. The total amount of advertising expense included in the Company’s Consolidated Statements of Operations and Comprehensive Income was $880,000, $1.5 million, and $948,000 for the years ended December 31, 2013, 2012, and 2011, respectively. | |||||||||
Stock‑Based Compensation | |||||||||
The Company has stock option and stock incentive plans for employees and non-employee Directors that provide for grants of restricted stock awards (“RSA”s), restricted stock units (“RSU”s), performance stock units (“PSU”s), and options to purchase shares of CryoLife common stock at exercise prices generally equal to the fair values of such stock at the dates of grant. The Company also maintains a shareholder approved Employee Stock Purchase Plan (the “ESPP”) for the benefit of its employees. The ESPP allows eligible employees the right to purchase common stock on a regular basis at the lower of 85% of the market price at the beginning or end of each offering period. The stock options, RSAs, RSUs, and PSUs granted by the Company typically vest over a one to three-year period. The stock options granted by the Company typically expire within seven years of the grant date. | |||||||||
The Company values its RSAs, RSUs, and PSUs based on the stock price on the date of grant. The Company expenses the related compensation cost of RSAs and RSUs using the straight-line method over the vesting period. The Company expenses the related compensation cost of PSUs based on the number of shares expected to be issued if achievement of the performance component is probable using a straight-line method over each vesting tranche of the award. The amount of compensation costs expensed related to PSUs is adjusted as needed if the Company deems that achievement of the performance component is no longer probable, or if the Company’s expectation of the number of shares to be issued changes. The Company uses a Black-Scholes model to value its stock option grants and expenses the related compensation cost using the straight-line method over the vesting period. The fair value of the Company’s ESPP options is also determined using a Black-Scholes model and is expensed over the vesting period. The period expense is then determined based on this valuation and, at that time, an estimated forfeiture rate is used to reduce the expense recorded. The Company’s estimate of pre-vesting forfeitures is primarily based on the recent historical experience of the Company and is adjusted to reflect actual forfeitures at each vesting date. | |||||||||
The fair value of stock options and ESPP options is determined on the grant date using assumptions for the expected term, volatility, dividend yield, and the risk-free interest rate. The expected term is primarily based on the contractual term of the option and Company data related to historic exercise and post-vesting forfeiture patterns, which is adjusted based on management’s expectations of future results. The Company’s anticipated volatility level is primarily based on the historic volatility of the Company’s common stock, adjusted to remove the effects of certain periods of unusual volatility not expected to recur, and adjusted based on management’s expectations of future volatility, for the life of the option or option group. The Company’s model included a zero dividend yield assumption in the periods prior to the Company’s initiation of a quarterly dividend in the third quarter of 2012. The risk-free interest rate is based on recent U.S. Treasury note auction results with a similar life to that of the option. The Company’s model does not include a discount for post-vesting restrictions, as the Company has not issued awards with such restrictions. | |||||||||
Income Per Common Share | |||||||||
Income per common share is computed using the two class method, which requires the Company to include unvested RSAs that contain non-forfeitable rights to dividends (whether paid or unpaid) as participating securities in the income per common share calculation. | |||||||||
Under the two class method, net income is allocated to the weighted-average number of common shares outstanding during the period and the weighted-average participating securities outstanding during the period. The portion of net income that is allocated to the participating securities is excluded from basic and dilutive net income per common share. Diluted net income per share is computed using the weighted-average number of common shares outstanding plus the dilutive effects of outstanding stock options and awards and other dilutive instruments as appropriate. | |||||||||
Dividends | |||||||||
During 2012 the Company announced that its Board of Directors had approved the initiation of a quarterly cash dividend of $0.025 per share of common stock outstanding. In 2013 the Company announced that its Board of Directors approved a 10% increase in the quarterly cash dividend beginning in the second quarter of 2013 to $0.0275 per share of common stock outstanding. The Company currently anticipates paying the quarterly dividends in March, June, September, and December of each year from cash on hand and will record the dividend payment as a reduction to retained earnings on the Company’s Consolidated Balance Sheets. | |||||||||
Financial Instruments | |||||||||
The Company’s financial instruments include cash equivalents, marketable securities, restricted securities, accounts receivable, notes receivable, accounts payable, and contingent consideration. The Company typically values financial assets and liabilities such as receivables, accounts payable, and debt obligations at their carrying values, which approximate fair value due to their generally short-term duration. Other financial instruments are typically recorded as discussed in the sections below. | |||||||||
Fair Value Measurements | |||||||||
The Company records certain financial instruments at fair value, including: cash equivalents, certain marketable securities, certain restricted securities, contingent consideration, and derivative instruments. The Company may make an irrevocable election to measure other financial instruments at fair value on an instrument-by-instrument basis; although as of December 31, 2013 the Company has not chosen to make any such elections. Fair value financial instruments are recorded in accordance with the fair value measurement framework. | |||||||||
The Company also measures certain non-financial assets at fair value on a non-recurring basis. These non-recurring valuations include evaluating assets such as cost method investments, long‑lived assets, and non-amortizing intangible assets for impairment; allocating value to assets in an acquired asset group; and applying accounting for business combinations. The Company uses the fair value measurement framework to value these assets and reports these fair values in the periods in which they are recorded or written down. | |||||||||
The fair value measurement framework includes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair values in their broad levels. These levels from highest to lowest priority are as follows: | |||||||||
· | Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities; | ||||||||
· | Level 2: Quoted prices in active markets for similar assets or liabilities or observable prices that are based on inputs not quoted on active markets, but corroborated by market data; and | ||||||||
· | Level 3: Unobservable inputs or valuation techniques that are used when little or no market data is available. | ||||||||
The determination of fair value and the assessment of a measurement’s placement within the hierarchy requires judgment. Level 3 valuations often involve a higher degree of judgment and complexity. Level 3 valuations may require the use of various cost, market, or income valuation methodologies applied to unobservable management estimates and assumptions. Management’s assumptions could vary depending on the asset or liability valued and the valuation method used. Such assumptions could include: estimates of prices, earnings, costs, actions of market participants, market factors, or the weighting of various valuation methods. The Company may also engage external advisors to assist in determining fair value, as appropriate. | |||||||||
Although the Company believes that the recorded fair value of its financial instruments is appropriate, these fair values may not be indicative of net realizable value or reflective of future fair values. | |||||||||
Cash and Cash Equivalents | |||||||||
Cash equivalents consist primarily of highly liquid investments with maturity dates of three months or less at the time of acquisition. The carrying value of cash equivalents approximates fair value. | |||||||||
In 2012 the Company’s cash equivalents included advance funding received from the U.S. Department of Defense (“DOD”) for the development of protein hydrogel technology. The advance funding was accounted for as deferred income on the Company’s December 31, 2012 Consolidated Balance Sheet and revenue was recognized as expenses were incurred related to these grants. The Company discontinued its BioFoam U.S. clinical trial and returned all of the remaining unspent funds to the DOD in the second quarter of 2013. | |||||||||
Cash Flow Supplemental Disclosures | |||||||||
Supplemental disclosures of cash flow information for the years ended December 31 (in thousands): | |||||||||
2013 | 2012 | 2011 | |||||||
Cash paid during the year for: | |||||||||
Interest | $ | 3 | $ | 22 | $ | 89 | |||
Income taxes | 5,693 | 1,263 | 3,564 | ||||||
Marketable Securities and Other Investments | |||||||||
The Company typically invests its excess cash for short-term periods in large, well‑capitalized financial institutions, and the Company's policy excludes investment in any securities rated less than "investment‑grade" by national rating services, unless specifically approved by the Board of Directors. The Company sometimes makes longer term strategic investments in medical device companies, and these investments must be approved by the Board of Directors. | |||||||||
The Company determines the classification of its investments as trading, available-for-sale, or held-to-maturity at the time of purchase and reevaluates such designations quarterly. Trading securities are securities that are acquired principally for the purpose of generating a profit from short-term fluctuations in price. Debt securities are classified as held‑to‑maturity when the Company has the intent and ability to hold the securities to maturity. Any securities not designated as trading or held‑to‑maturity are considered available-for-sale. The Company typically states its investments at their fair values; however, for held‑to‑maturity securities or when current fair value information is not readily available, investments are recorded using the cost method. The cost of securities sold is based on the specific identification method. | |||||||||
Under the fair value method, the Company adjusts each investment to its market price and records the unrealized gains or losses in other (income) expense, net for trading securities, or accumulated other comprehensive income (loss), for available-for-sale securities. Interest, dividends, realized gains and losses, and declines in value judged to be other than temporary are included in other (income) expense, net. Under the cost method, each investment is recorded at cost. Subsequent dividends received are recognized as income, and the investment is reviewed for impairment if factors indicate that a decrease in the value of the investment has occurred. | |||||||||
Accounts Receivable and Allowance for Doubtful Accounts | |||||||||
The Company’s accounts receivable are primarily from hospitals and distributors that either use or distribute the Company’s products and tissues. The Company assesses the likelihood of collection based on a number of factors, including past transaction history with the customer and the credit worthiness of the customer, as well as the increased risks related to international customers and large distributors. The accounts receivable balances were reported net of allowance for doubtful accounts of $356,000 and $528,000 as of December 31, 2013 and 2012 respectively. | |||||||||
Deferred Preservation Costs | |||||||||
By federal law, human tissues cannot be bought or sold, therefore, the tissues the Company preserves are not held as inventory. The costs the Company incurs to procure and process cardiac and vascular tissues are instead accumulated and deferred. Deferred preservation costs are stated at the lower of cost or market value on a first‑in, first‑out basis and are deferred until revenue is recognized. At each balance sheet date, deferred preservation costs includes costs of tissues available for shipment, tissues currently in active processing, and tissues held in quarantine pending release to implantable status. | |||||||||
Upon shipment of the tissue to an implanting facility, revenue is recognized and the related deferred preservation costs are expensed as cost of preservation services. Cost of preservation services also includes, as applicable, lower of cost or market write-downs and impairments for tissues not deemed to be recoverable, and includes, as incurred, idle facility expense, excessive spoilage, extra freight, and rehandling costs. | |||||||||
The calculation of deferred preservation costs involves judgment and complexity and uses the same principles as inventory costing. Donated human tissue is procured from deceased human donors by organ and tissue procurement organizations (“OTPOs”), which consign the tissue to the Company for processing, preservation, and distribution. Deferred preservation costs consist primarily of the procurement fees charged by the OTPOs, direct labor and materials (including salary and fringe benefits, laboratory supplies and expenses, and freight‑in charges), and indirect costs (including allocations of costs from support departments and facility allocations). Fixed production overhead costs are allocated based on actual tissue processing levels, to the extent that they are within the range of the facility’s normal capacity. | |||||||||
These costs are then allocated among the tissues processed during the period based on cost drivers, such as the number of donors or number of tissues processed. The Company applies a yield estimate to all tissues in process and in quarantine to estimate the portion of tissues that will ultimately become implantable. Management estimates quarantine yields based on its experience and reevaluates these estimates periodically. Actual yields could differ significantly from the Company’s estimates, which could result in a change in tissues available for shipment, and could increase or decrease the balance of deferred preservation costs. These changes could result in additional cost of preservation services expense or could increase per tissue preservation costs, which would impact gross margins on tissue preservation services in future periods. | |||||||||
The Company regularly evaluates its deferred preservation costs to determine if the costs are appropriately recorded at the lower of cost or market value. The Company also evaluates its deferred preservation costs for costs not deemed to be recoverable, including tissues not expected to ship prior to the expiration date of their packaging. Lower of cost or market value write-downs are recorded if the tissue processing costs incurred exceed the estimated market value of the tissue services, based on recent average service fees at the time of the evaluation. Impairment write-downs are recorded based on the book value of tissues deemed to be impaired. Actual results may differ from these estimates. Write-downs of deferred preservation costs are expensed as cost of preservation services, and these write-downs are permanent impairments that create a new cost basis, which cannot be restored to its previous levels if the Company’s estimates change. | |||||||||
The Company recorded write-downs to its deferred preservation costs totaling $448,000, $195,000, and $270,000 for the years ended December 31, 2013, 2012, and 2011, respectively. | |||||||||
Inventories | |||||||||
Inventories are valued at the lower of cost or market on a first‑in, first‑out basis and the costs are recognized as cost of products upon shipment of the product. Inventories are comprised of BioGlue; BioFoam; PerClot; revascularization technologies lasers, handpieces, and accessories; HeRO Grafts; other medical devices; supplies; and raw materials. Cost of products also includes, as incurred, idle facility expense, excessive spoilage, extra freight, and rehandling costs. | |||||||||
Inventory costs for manufactured products consist primarily of direct labor and materials (including salary and fringe benefits, raw materials, and supplies) and indirect costs (including allocations of costs from departments that support manufacturing activities and facility allocations). The allocation of fixed production overhead costs is based on actual production levels, to the extent that they are within the range of the facility’s normal capacity. Inventory costs for products purchased for resale or contract manufactured consist primarily of the purchase cost, freight-in charges, and indirect costs as appropriate. | |||||||||
The Company regularly evaluates its inventory to determine if the costs are appropriately recorded at the lower of cost or market value. The Company also evaluates its inventory for costs not deemed to be recoverable, including inventory not expected to ship prior to its expiration. Lower of cost or market value write-downs are recorded if the book value exceeds the estimated market value of the inventory, based on recent sales prices at the time of the evaluation. Impairment write-downs are recorded based on the book value of inventory deemed to be impaired. Actual results may differ from these estimates. Write-downs of inventory are expensed as cost of products, and these write-downs are permanent impairments that create a new cost basis, which cannot be restored to its previous levels if the Company’s estimates change. | |||||||||
The Company recorded write-downs to its inventory totaling $1.2 million, $77,000, and zero for the years ended December 31, 2013, 2012, and 2011, respectively. The 2013 write-down includes $684,000 in additional contractual costs and inventory impairment costs, primarily related to a BioGlue accessory product, and $483,000 in additional costs for revascularization technologies handpieces that were made obsolete by the Company’s decision to exclusively distribute the new handpiece design, which was approved by the U.S. Food and Drug Administration (“FDA”) in June 2013. | |||||||||
Property and Equipment | |||||||||
Property and equipment is stated at cost. Depreciation is provided over the estimated useful lives of the assets, generally three to ten years, on a straight‑line basis. Leasehold improvements are amortized on a straight‑line basis over the remaining lease term at the time the assets are capitalized or the estimated useful lives of the assets, whichever is shorter. | |||||||||
Depreciation expense for the years ended December 31 is as follows (in thousands): | |||||||||
2013 | 2012 | 2011 | |||||||
Depreciation expense | $ | 3,837 | $ | 3,662 | $ | 3,590 | |||
Goodwill and Other Intangible Assets | |||||||||
The Company’s intangible assets consist of goodwill, patents, trademarks, and other intangible assets, as discussed in Note 9. These assets include intangible assets from the acquisition of Hemosphere, as discussed in Note 4, and assets acquired from Cardiogenesis, as discussed in Note 6. | |||||||||
The Company amortizes its definite lived intangible assets over their expected useful lives using the straight-line method, which the Company believes approximates the period of economic benefits of the related assets. The Company’s indefinite lived intangible assets do not amortize, but are instead subject to periodic impairment testing as discussed in “Impairments of Long-Lived Assets and Non-Amortizing Intangible Assets” below. | |||||||||
Impairments of Long‑Lived Assets and Non-Amortizing Intangible Assets | |||||||||
The Company assesses the potential impairment of its long-lived assets to be held and used whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors that could trigger an impairment review include, but are not limited to, the following: | |||||||||
· | Significant underperformance relative to expected historical or projected future operating results, | ||||||||
· | Significant negative industry or economic trends, | ||||||||
· | Significant decline in the Company’s stock price for a sustained period, or | ||||||||
· | Significant decline in the Company’s market capitalization relative to net book value. | ||||||||
If CryoLife determines that an impairment review is necessary, the Company will evaluate its assets or asset groups by comparing their carrying values to the sum of the undiscounted future cash flows expected to result from their use and eventual disposition. If the carrying values exceed the future cash flows, then the asset or asset group is considered impaired, and the Company will write down the value of the asset or asset group. For the years ended December 31, 2013, 2012, and 2011 the Company did not experience any factors that indicated that an impairment review of its long-lived assets was warranted. | |||||||||
CryoLife evaluates its goodwill and other non-amortizing intangible assets for impairment on an annual basis as of October 31 and, if necessary, during interim periods if factors indicate that an impairment review is warranted. As of October 31, 2013 the Company’s non-amortizing intangible assets consisted of goodwill, acquired procurement contracts and agreements, trademarks, and other acquired technology. The Company performed an analysis of its non-amortizing intangible assets as of October 31, 2013 and 2012, and determined that the fair value of the assets and the fair value of the reporting unit exceeded their associated carrying values and were, therefore, not impaired. Management will continue to evaluate the recoverability of these non-amortizing intangible assets. | |||||||||
Accrued Procurement Fees | |||||||||
Donated tissue is procured from deceased human donors by OTPOs, which consign the tissue to the Company for processing, preservation, and distribution. The Company reimburses the OTPOs for their costs to recover the tissue and passes these costs on to the customer when the tissue is shipped and the performance of the service is complete. The Company accrues estimated procurement fees due to the OTPOs at the time tissues are received based on contractual agreements between the Company and the OTPOs. | |||||||||
Leases | |||||||||
The Company has operating lease obligations resulting from the lease of land and buildings that comprise the Company's corporate headquarters and manufacturing facilities, leases related to additional manufacturing, office, and warehouse space, leases on Company vehicles, and leases on a variety of office equipment as discussed in Note 12. Certain of the Company’s leases contain escalation clauses, rent concessions, and renewal options for additional periods. Rent expense is computed on the straight‑line method over the lease term and the related liability is recorded as deferred rent obligations on the Company’s Consolidated Balance Sheets. | |||||||||
Liability Claims | |||||||||
In the normal course of business, the Company is made aware of adverse events involving its products and tissues. Any adverse event could ultimately give rise to a lawsuit against the Company. In addition, product and tissue processing liability claims may be asserted against the Company in the future based on events it is not aware of at the present time. The Company maintains claims‑made insurance policies to mitigate its financial exposure to product and tissue processing liability claims. Claims‑made insurance policies generally cover only those asserted claims and incidents that are reported to the insurance carrier while the policy is in effect. Thus, a claims‑made policy does not generally represent a transfer of risk for claims and incidents that have been incurred but not reported to the insurance carrier during the policy period. Any punitive damage components of claims are uninsured. | |||||||||
The Company engages external advisors to assist it in estimating its liability and any related recoverable under the Company's insurance policies as of each balance sheet date. The Company uses a frequency‑severity approach to estimate its unreported product and tissue processing liability claims, whereby, projected losses are calculated by multiplying the estimated number of claims by the estimated average cost per claim. The estimated claims are determined based on the reported claim development method and the Bornhuetter‑Ferguson method using a blend of the Company's historical claim experience and industry data. The estimated cost per claim is calculated using a lognormal claims model blending the Company's historical average cost per claim with industry claims data. The Company uses a number of assumptions in order to estimate the unreported loss liability including: the future claim reporting time lag, the frequency of reported claims, the average cost per claim, and the maximum liability per claim. The Company believes that the assumptions it uses provide a reasonable basis for its calculation. However, the accuracy of the estimates is limited by the general uncertainty that exists for any estimate of future activity due to uncertainties surrounding the assumptions used and due to Company specific conditions and the scarcity of industry data directly relevant to the Company's business activities. Due to these factors, actual results may differ significantly from the assumptions used and amounts accrued. | |||||||||
The Company accrues its estimate of unreported product and tissue processing liability claims as components of accrued expenses and other long‑term liabilities and records the related recoverable insurance amounts as a component of receivables and other long‑term assets. The amounts recorded represent management's estimate of the probable losses and anticipated recoveries for unreported claims related to products sold and services performed prior to the balance sheet date. | |||||||||
Legal Contingencies | |||||||||
The Company accrues losses from a legal contingency when the loss is both probable and reasonably estimable. The accuracy of the Company’s estimates of losses for legal contingencies is limited by uncertainties surrounding litigation. Therefore, actual results may differ significantly from the amounts accrued, if any. The Company accrues for legal contingencies as a component of accrued expenses and other long‑term liabilities. Gains from legal contingencies are recorded when the contingency is resolved. | |||||||||
Legal Fees | |||||||||
The Company expenses the costs of legal services, including legal services related to product and tissue processing liability claims and legal contingencies, as they are incurred. Reimbursement of legal fees by an insurance company or other third-party is recorded as a reduction to legal expense. | |||||||||
Uncertain Tax Positions | |||||||||
The Company periodically assesses its uncertain tax positions and recognizes tax benefits if they are “more-likely-than-not” to be upheld upon review by the appropriate taxing authority. The Company measures the tax benefit by determining the maximum amount that has a “greater than 50 percent likelihood” of ultimately being realized. The Company reverses previously accrued liabilities for uncertain tax positions when audits are concluded, statutes expire, administrative practices dictate that a liability is no longer warranted, or in other circumstances as deemed necessary. These assessments can be complex and the Company often obtains assistance from external advisors to make these assessments. The Company recognizes interest and penalties related to uncertain tax positions in other (income) expense, net on its Consolidated Statements of Operations and Comprehensive Income. See Note 10 for further discussion of the Company’s liabilities for uncertain tax positions. | |||||||||
Deferred Income Taxes | |||||||||
Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and tax return purposes. The Company periodically assesses the recoverability of its deferred tax assets, as necessary, when the Company experiences changes that could materially affect its determination of the recoverability of its deferred tax assets. Management provides a valuation allowance against the deferred tax asset when, as a result of this analysis, management believes it is more likely than not that some portion or all of its deferred tax assets will not be realized. | |||||||||
Assessing the recoverability of deferred tax assets involves judgment and complexity. Estimates and judgments used in the determination of the need for a valuation allowance and in calculating the amount of a needed valuation allowance include, but are not limited to, the following: | |||||||||
· | Projected future operating results, | ||||||||
· | Anticipated future state tax apportionment, | ||||||||
· | Timing and amounts of anticipated future taxable income, | ||||||||
· | Timing of the anticipated reversal of book/tax temporary differences, | ||||||||
· | Evaluation of statutory limits regarding usage of certain tax assets, and | ||||||||
· | Evaluation of the statutory periods over which certain tax assets can be utilized. | ||||||||
Significant changes in the factors above, or other factors, could materially, adversely affect the Company’s ability to use its deferred tax assets. Such changes could have a material, adverse impact on the Company’s operations, financial condition, and cash flows. The Company will continue to assess the recoverability of its deferred tax assets, as necessary, when the Company experiences changes that could materially affect its prior determination of the recoverability of its deferred tax assets. | |||||||||
The Company believes that the realizability of its acquired net operating loss carryforwards will be limited in future periods due to a change in control of its subsidiaries Hemosphere and Cardiogenesis, as mandated by Section 382 of the Internal Revenue Code of 1986, as amended. The Company believes that its acquisition of Hemosphere constituted a change in control and that prior to the Company’s acquisition, Hemosphere had experienced other equity ownership changes that should be considered a change in control. The Company also believes that its acquisition of Cardiogenesis constituted a change in control. The deferred tax assets recorded on the Company’s Consolidated Balance Sheets do not include amounts that it expects will not be realizable due to these changes in control. A portion of the acquired net operating loss carryforwards is related to state income taxes for which management believes it is more likely than not that these deferred tax assets will not be realized. Therefore, the Company recorded a valuation allowance against these state net operating loss carryforwards. | |||||||||
Valuation of Acquired Assets or Businesses | |||||||||
As part of its corporate strategy, the Company is seeking to identify and evaluate acquisition opportunities of complementary product lines and companies. The Company evaluates and accounts for acquired patents, licenses, distribution rights, and other tangible or intangible assets as the purchase of an asset or asset group, or as a business combination, as appropriate. The determination of whether the purchase of a group of assets should be accounted for as an asset group or as a business combination requires significant judgment based on the weight of available evidence. | |||||||||
For the purchase of an asset group, the Company allocates the cost of the asset group, including transaction costs, to the individual assets purchased based on their relative estimated fair values. In-process research and development acquired as part of an asset group is expensed upon acquisition. The Company accounts for business combinations by allocating the purchase price to the assets and liabilities acquired at their estimated fair value. Transaction costs related to a business combination are expensed as incurred. In-process research and development acquired as part of a business combination is accounted for as an indefinite-lived intangible asset until the related research and development project gains regulatory approval or is discontinued. | |||||||||
The Company typically engages external advisors to assist it in determining the fair value of acquired asset groups or business combinations, using valuation methodologies such as: the excess earnings, the discounted cash flow, or the relief from royalty methods. The determination of fair value in accordance with the fair value measurement framework requires significant judgments and estimates, including, but not limited to: timing of product life cycles, estimates of future revenues, estimates of profitability for new or acquired products, cost estimates for new or changed manufacturing processes, estimates of the cost or timing of obtaining regulatory approvals, estimates of the success of competitive products, and discount rates. Management, in consultation with its advisor(s), makes these estimates based on its prior experiences and industry knowledge. Management believes that its estimates are reasonable, but actual results could differ significantly from the Company’s estimates. A significant change in management’s estimates used to value acquired asset groups or business combinations could result in future write-downs of tangible or intangible assets acquired by the Company and, therefore, could materially impact the Company’s financial position and profitability. If the value of the liabilities assumed by the Company, including contingent liabilities, is determined to be significantly different from the amounts previously recorded in purchase accounting, the Company may need to record additional expenses or write-downs in future periods, which could materially impact the Company’s financial position and profitability. | |||||||||
Derivative Instruments | |||||||||
The Company determines the fair value of its stand-alone and embedded derivative instruments at issuance and records any resulting asset or liability on the Company’s Consolidated Balance Sheets. Changes in the fair value of the derivative instruments are recognized in the line item change in valuation of derivative on the Company’s Consolidated Statements of Operations and Comprehensive Income. | |||||||||
New Accounting Pronouncements | |||||||||
In January 2013 the Company adopted Accounting Standards Update ("ASU"), 2012-02, Intangibles-Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment, which gives entities testing indefinite-lived intangible assets for impairment the option of performing a qualitative assessment before performing the quantitative impairment test as well as the option to bypass the qualitative assessment in any period and proceed directly to performing the quantitative impairment test. The adoption of ASU 2012-02 did not have a material effect on the Company's financial condition, profitability, or cash flows. | |||||||||
In February 2013 the Company adopted ASU 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which requires separate presentation of the components that are reclassified out of accumulated other comprehensive income either on the face of the financial statements or in the notes to the financial statements. This update also requires companies to disclose the income statement line items affected by any significant reclassifications. The adoption of ASU 2013-02 did not have a material effect on the Company's financial disclosures. | |||||||||
Financial_Instruments
Financial Instruments | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Financial Instruments [Abstract] | ' | |||||||||||
Financial Instruments | ' | |||||||||||
2. Financial Instruments | ||||||||||||
A summary of financial instruments measured at fair value is as follows (in thousands): | ||||||||||||
31-Dec-13 | Level 1 | Level 2 | Level 3 | Total | ||||||||
Cash equivalents: | ||||||||||||
Money market funds | $ | 5,349 | $ | -- | $ | -- | $ | 5,349 | ||||
Certificates of deposit | 749 | -- | -- | 749 | ||||||||
Restricted securities: | ||||||||||||
Money market funds | 350 | -- | -- | 350 | ||||||||
Total assets | $ | 6,448 | $ | -- | $ | -- | $ | 6,448 | ||||
Long-term liabilities: | ||||||||||||
Contingent consideration | $ | -- | $ | -- | $ | -1,884 | $ | -1,884 | ||||
Total liabilities | $ | -- | $ | -- | $ | -1,884 | $ | -1,884 | ||||
31-Dec-12 | Level 1 | Level 2 | Level 3 | Total | ||||||||
Cash equivalents: | ||||||||||||
Money market funds | $ | 1,319 | $ | -- | $ | -- | $ | 1,319 | ||||
Restricted securities: | ||||||||||||
Money market funds | 323 | -- | -- | 323 | ||||||||
Total assets | $ | 1,642 | $ | -- | $ | -- | $ | 1,642 | ||||
Long-term liabilities: | ||||||||||||
Contingent consideration | $ | -- | $ | -- | $ | -1,912 | $ | -1,912 | ||||
Total liabilities | $ | -- | $ | -- | $ | -1,912 | $ | -1,912 | ||||
The Company used prices quoted from its investment management companies to determine the Level 1 valuation of its investments in money market funds, certificates of deposit, and securities. The Company changed the presentation of its December 31, 2012 money market funds to Level 1 from Level 2, consistent with its current year presentation. The Company recorded contingent consideration liability, classified as Level 3, as a result of its acquisition of Hemosphere in May 2012. Refer to Note 4 for further discussion of the Level 3 contingent consideration liability. Changes in fair value of Level 3 liabilities are listed below (in thousands): | ||||||||||||
Contingent Consideration | ||||||||||||
Balance as of December 31, 2012 | $ | 1,912 | ||||||||||
Gain on remeasurement of contingent consideration | -28 | |||||||||||
Balance as of December 31, 2013 | $ | 1,884 | ||||||||||
Cash_Equivalents_And_Restricte
Cash Equivalents And Restricted Cash And Securities | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Cash Equivalents And Restricted Cash And Securities [Abstract] | ' | ||||||||
Cash Equivalents And Restricted Cash And Securities | ' | ||||||||
3. Cash Equivalents and Restricted Cash and Securities | |||||||||
The following is a summary of cash equivalents and marketable securities (in thousands): | |||||||||
Unrealized | Estimated | ||||||||
Holding | Market | ||||||||
31-Dec-13 | Cost Basis | Gains (Losses) | Value | ||||||
Cash equivalents: | |||||||||
Money market funds | $ | 5,349 | $ | -- | $ | 5,349 | |||
Certificates of deposit | 749 | -- | 749 | ||||||
Restricted cash and securities: | |||||||||
Cash | 5,000 | -- | 5,000 | ||||||
Money market funds | 350 | -- | 350 | ||||||
31-Dec-12 | |||||||||
Cash equivalents: | |||||||||
Money market funds | $ | 1,319 | $ | -- | $ | 1,319 | |||
Restricted securities: | |||||||||
Cash | 5,000 | -- | 5,000 | ||||||
Money market funds | 323 | -- | 323 | ||||||
As of December 31, 2013 and 2012 $350,000 and $323,000, respectively, of the Company’s money market funds were designated as short-term restricted securities due to a contractual commitment to hold the securities as pledged collateral relating primarily to international tax obligations. As of December 31, 2013 $5.0 million of the Company’s cash was designated as restricted cash due to a financial covenant requirement under the Company’s credit agreement with General Electric Capital Corporation (“GE Capital”) as discussed in Note 11. As of December 31, 2012 $5.0 million of the Company’s cash was designated as long-term restricted securities under the same covenant. This restriction lapses upon expiration of the credit agreement with GE Capital on October 28, 2014. | |||||||||
There were no gross realized gains or losses on cash equivalents or restricted securities for the years ended December 31, 2013, 2012, and 2011. At December 31, 2013 and 2012 $5.0 million of the Company’s restricted cash had no maturity date. At December 31, 2013 $328,000 of the Company’s restricted securities had a maturity date within three months and $22,000 of the Company’s restricted securities had a maturity date between three months and one year. At December 31, 2012 $323,000 of the Company’s restricted securities had a maturity date within three months. | |||||||||
Hemosphere_Acquisition
Hemosphere Acquisition (Hemosphere [Member]) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Hemosphere [Member] | ' | |||||
Business Acquisition [Line Items] | ' | |||||
Hemosphere Acquisition | ' | |||||
4. Hemosphere Acquisition | ||||||
Overview | ||||||
On May 16, 2012 CryoLife completed its acquisition of 100% of the outstanding equity of Hemosphere, a privately held company, for $17.0 million in cash, an additional $3.2 million paid for cash acquired, and contingent consideration with a fair value estimated to be approximately $1.8 million at acquisition, for a total purchase price of approximately $22.0 million. CryoLife used cash on hand to fund the transaction and operates Hemosphere as a wholly owned subsidiary. | ||||||
Hemosphere is the developer and marketer of the HeRO Graft, a proprietary graft-based solution for end-stage renal disease hemodialysis patients with limited access options and central venous obstruction. CryoLife believes that the HeRO Graft will fit well into its product portfolio of medical devices for cardiac and vascular surgery and believes there is a significant opportunity for CryoLife’s sales team to leverage their strong relationships with vascular surgeons to introduce and to expand utilization of the HeRO Graft in the U.S. | ||||||
Contingent Consideration | ||||||
As of the acquisition date, CryoLife recorded a contingent consideration liability of $1.8 million in long-term liabilities on its Consolidated Balance Sheet, representing the estimated fair value of the contingent consideration expected to be paid to the former shareholders of Hemosphere upon the achievement of certain revenue-based milestones. The acquisition agreement provides for a maximum of $4.5 million in future consideration payments through December 2015 based on specified sales targets. | ||||||
The fair value of the contingent consideration liability was estimated by discounting to present value the contingent payments expected to be made based on a probability-weighted scenario approach. The Company applied a risk-based estimate of the probability of achieving each scenario and then applied a cost of debt based discount rate of 8%. This fair value measurement is based on unobservable inputs, including management estimates and assumptions about future revenues, and is, therefore, classified as Level 3 within the fair value hierarchy presented in Note 2. The Company will remeasure this liability at each reporting date and will record changes in the fair value of the contingent consideration in other (income) expense on the Company’s Consolidated Statements of Operations and Comprehensive Income. Increases or decreases in the fair value of the contingent consideration liability can result from changes in discount periods and rates, as well as changes in the timing and amount of Company revenue estimates. | ||||||
The Company recorded a gain of $28,000 for the year ended December 31, 2013 and a loss of $72,000 for the year ended December 31, 2012 on the remeasurement of the contingent consideration liability. The balance of the contingent consideration liability was $1.9 million as of December 31, 2013 and 2012. | ||||||
Accounting for the Transaction | ||||||
The Company has recorded an allocation of the $22.0 million purchase price to Hemosphere’s tangible and identifiable intangible assets acquired and liabilities assumed based on their fair values as of May 16, 2012. Goodwill has been recorded based on the amount by which the purchase price exceeds the fair value of the net assets acquired and is not deductible for tax purposes. Goodwill from this transaction has been allocated to the Company’s medical devices segment. | ||||||
The purchase price allocation as of December 31, 2012 is as follows (in thousands): | ||||||
Opening | ||||||
Balance Sheet | ||||||
Cash and cash equivalents | $ | 3,155 | ||||
Receivables | 653 | |||||
Inventories | 554 | |||||
Intangible assets | 5,790 | |||||
Goodwill | 7,145 | |||||
Deferred tax assets, net | 5,379 | |||||
Other assets | 331 | |||||
Liabilities assumed | -972 | |||||
Total purchase price | $ | 22,035 | ||||
CryoLife incurred integration costs of $940,000 for the year ended December 31, 2013 and transaction and integration costs related to the acquisition of approximately $2.4 million for the year ended December 31, 2012. These costs were expensed as incurred and were primarily recorded as general, administrative, and marketing expenses on the Company’s Consolidated Statements of Operations and Comprehensive Income. | ||||||
Pro Forma Results | ||||||
Hemosphere’s revenues of $3.1 million from the date of acquisition through December 31, 2012 are included in the Consolidated Statements of Operations and Comprehensive Income. The Company’s unaudited pro forma results of operations for the year ended December 31, 2012 and 2011 assuming the Hemosphere acquisition had occurred as of January 1, 2011 are presented for comparative purposes below. These amounts are based on available information of the results of operations of Hemosphere prior to the acquisition date and are not necessarily indicative of what the results of operations would have been had the acquisition been completed on January 1, 2011. This unaudited pro forma information does not project operating results post acquisition. This pro forma information is as follows (in thousands, except per share amounts): | ||||||
Twelve Months Ended | ||||||
December 31, | ||||||
2012 | 2011 | |||||
Total revenues | $ | 133,722 | $ | 124,877 | ||
Net income | 8,758 | 3,205 | ||||
Pro forma income per common share - basic | $ | 0.32 | $ | 0.11 | ||
Pro forma income per common share - diluted | $ | 0.31 | $ | 0.11 | ||
Pro forma results for the year ended December 31, 2011 include the Company’s acquisition and integration related costs of approximately $2.4 million, on a pre-tax basis, and other costs as appropriate. Pro forma disclosures were calculated using a tax rate of approximately 34%. | ||||||
ValveXchange
ValveXchange | 12 Months Ended |
Dec. 31, 2013 | |
ValveXchange [Abstract] | ' |
ValveXchange | ' |
5. ValveXchange | |
Preferred Stock Investment | |
In July 2011 the Company purchased 2.4 million shares of Series A Preferred Stock of ValveXchange, Inc. (“ValveXchange”) for approximately $3.5 million. ValveXchange is a private medical device company that was spun off from Cleveland Clinic to develop a lifetime heart valve replacement technology platform featuring exchangeable bioprosthetic leaflets. The Company’s carrying value of this investment included the purchase price and certain transaction costs, and CryoLife’s investment represented an approximate 19% equity ownership in ValveXchange. As ValveXchange’s stock is not actively traded on any public stock exchange, as the Company does not exert significant influence over ValveXchange, and as the Company’s investment is in preferred stock, the Company accounted for this investment using the cost method. The Company recorded its investment as a long-term asset, investment in equity securities, on the Company’s Consolidated Balance Sheets. | |
Loan Agreement | |
In July 2011 the Company entered into an agreement with ValveXchange, as amended, to make available up to $2.0 million to ValveXchange in debt financing through a revolving credit facility (the “Loan”). The Loan includes various affirmative and negative covenants, including financial covenant requirements, and expires on July 30, 2018, unless terminated earlier. Amounts loaned under the Loan will earn interest at an 8% annual rate and are secured by substantially all of the tangible and intangible assets of ValveXchange. The Company incurred loan origination costs, net of fees charged to ValveXchange, of approximately $117,000, which are being expensed on a straight-line basis over the life of the loan facility. The Company advanced $2.0 million to ValveXchange under the Loan in 2012. The $2.0 million advance is recorded as long-term notes receivable on the Company’s Consolidated Balance Sheets as of December 31, 2013 and 2012. | |
During 2013 CryoLife repeatedly notified ValveXchange that ValveXchange was in default of certain loan covenants, due to factors including ValveXchange’s failure to obtain CryoLife’s consent for certain convertible note financings that ValveXchange obtained during the year. These events of default were ongoing as of February 15, 2014. | |
Investment and Loan Analysis | |
During the quarter ended September 30, 2012 the Company reviewed available information to determine if factors indicated that the Company should evaluate its investment in ValveXchange preferred stock for impairment. The Company determined that available information indicated that the Company should evaluate its investment in ValveXchange preferred stock for impairment. The Company used available information to analyze its investment for impairment, and the information indicated that the fair value of the investment was less than the carrying value. Therefore, based on this analysis, the Company believed that its investment in ValveXchange was impaired in the third quarter of 2012, and the impairment was other than temporary. As a result, the Company recorded an other non-operating expense of $340,000 to write down its investment in ValveXchange preferred stock. During the quarters ended December 31, 2012, June 30, 2013, and September 30, 2013 the Company reevaluated its investment in ValveXchange preferred stock for impairment. At the time of each of these analyses, the Company did not believe that its investment in ValveXchange was impaired further. | |
During the quarter ended December 31, 2013 the Company determined that available information, including ValveXchange’s financial condition and cash position, indicated that the Company should reevaluate its investment in ValveXchange preferred stock for impairment. The Company used available information, including new information obtained in the fourth quarter of 2013, to analyze its investment for impairment, and this information indicated that the fair value of the investment had declined significantly and any remaining value was nominal. Therefore, based on this analysis, the Company believes that its investment in ValveXchange was fully impaired as of December 31, 2013, and the impairment was other than temporary. As a result, the Company recorded an other non-operating expense of $3.2 million to write-down its investment in ValveXchange preferred stock. The carrying value of the Company’s investment in ValveXchange preferred stock after this write down was zero as of December 31, 2013. The carrying value of the Company’s investment in ValveXchange preferred stock was $3.2 million as of December 31, 2012. | |
ValveXchange is currently attempting to raise additional funds to support its short-term and long-term operations. If ValveXchange is unable to secure material amounts of additional financing, it will likely be unable to meet its obligations, and, therefore, CryoLife may need to foreclose on the related collateral to secure repayment of the Loan. Although CryoLife currently believes that the value of the collateral is adequate to repay the Loan, there is no guarantee that the security for the notes will be sufficient to repay the Loan. | |
Option Agreement | |
Concurrently with the Loan described above, CryoLife entered into an option agreement with ValveXchange through which CryoLife obtained the right of first refusal to acquire ValveXchange during a period that extends through the completion of initial commercialization milestones and the right to negotiate with ValveXchange for European distribution rights. The Company’s rights may be modified or reduced in connection with a future round of financing. | |
Cardiogenesis_Acquisition
Cardiogenesis Acquisition (Cardiogenesis [Member]) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Cardiogenesis [Member] | ' | ||||
Business Acquisition [Line Items] | ' | ||||
Cardiogenesis Acquisition | ' | ||||
6. Cardiogenesis Acquisition | |||||
Overview | |||||
On May 17, 2011 CryoLife completed its acquisition of all of the outstanding shares of Cardiogenesis for $0.457 per share or approximately $21.7 million. CryoLife used cash on hand to fund the transaction and operates Cardiogenesis as a wholly owned subsidiary. | |||||
Cardiogenesis is a leading developer of surgical products used in the treatment of patients with severe angina resulting from diffuse coronary artery disease. Cardiogenesis markets its revascularization technologies, which include the Holmium: YAG laser console and single use, fiber-optic handpieces. These products are FDA approved for performing a surgical procedure known as Transmyocardial Revascularization, used for treating patients with stable angina that is not responsive to conventional therapy. | |||||
Accounting for the Transaction | |||||
The Company recorded an allocation of the $21.7 million purchase price to Cardiogenesis’ tangible and identifiable intangible assets acquired and liabilities assumed based on their acquisition date fair values. The allocation of the purchase price to intangible assets was based on valuations performed to determine the fair value of such assets as of the acquisition date. Goodwill was recorded based on the amount by which the purchase price exceeded the fair value of the net assets acquired. The liability amounts recorded included the Company’s estimate of contingent liabilities assumed. | |||||
The purchase price allocation as of December 31, 2011 was as follows (in thousands): | |||||
Opening | |||||
Balance Sheet | |||||
Cash and cash equivalents | $ | 650 | |||
Receivables | 1,055 | ||||
Inventory | 852 | ||||
Property and equipment | 248 | ||||
Intangible assets | 11,900 | ||||
Goodwill | 4,220 | ||||
Net deferred tax assets | 5,002 | ||||
Other assets | 230 | ||||
Liabilities assumed | -2,445 | ||||
Total purchase price | $ | 21,712 | |||
CryoLife incurred approximately $3.0 million in transaction and integration costs related to the acquisition in the year ended December 31, 2011. The Company did not incur significant transaction or integration costs related to the Cardiogenesis acquisition in 2012 or 2013. | |||||
Pro Forma Results | |||||
Cardiogenesis’ revenues of $5.7 million from the date of acquisition are included in the Company’s Consolidated Statements of Operations and Comprehensive Income for the year ended December 31, 2011. Unaudited pro forma results of operations for the year ended December 31, 2011, assuming the Cardiogenesis acquisition had occurred prior to 2011, are presented for comparative purposes below (in thousands): | |||||
2011 | |||||
Total revenues | $ | 123,951 | |||
Net income | 7,962 | ||||
Pro forma disclosures were calculated using a tax rate of approximately 36%. | |||||
Legal Action | |||||
In 2008 CardioFocus, Inc. (“CardioFocus”) filed a complaint in the U.S. District Court for the District of Massachusetts (“Massachusetts Court”) against Cardiogenesis and a number of other companies. The litigation related to an alleged infringement by Cardiogenesis of two patents held by CardioFocus that have now expired. | |||||
On June 14, 2012 Cardiogenesis entered into a settlement agreement with respect to its litigation with CardioFocus. The settlement provides that each party release the other from all claims and liabilities related to the patents in question and that all claims and counterclaims in the litigation be withdrawn with prejudice. Pursuant to the terms of the settlement agreement, Cardiogenesis paid $4.5 million in cash to CardioFocus. Cardiogenesis and CardioFocus agreed and acknowledged that each party would bear its own costs and expenses, including attorneys’ fees, incurred in or as a result of the litigation. | |||||
On June 14, 2012 the parties filed a stipulation of dismissal with prejudice in the Massachusetts Court. | |||||
Accounting for the Settlement | |||||
As a result of the settlement described above, the Company recorded an additional loss of $3.6 million in general, administrative, and marketing expenses on its Consolidated Statements of Operations and Comprehensive Income in the second quarter of 2012 for a total of $4.1 million in legal settlement expenses for the year ended December 31, 2012. The Company paid the $4.5 million settlement payment to CardioFocus in July 2012 using cash on hand. | |||||
Medafor_Matters
Medafor Matters | 12 Months Ended |
Dec. 31, 2013 | |
Medafor Matters [Abstract] | ' |
Medafor Matters | ' |
7. Medafor Matters | |
Investment in Medafor Common Stock | |
In 2009 and 2010 CryoLife purchased shares of common stock in Medafor, Inc. (“Medafor”). As financial information for Medafor is not readily available and as the Company does not exert significant influence over the operations of Medafor, the Company accounted for its investment in Medafor common stock using the cost method. The Company recorded the stock as a long-term asset, investment in equity securities, on the Company’s Consolidated Balance Sheets. The carrying value of the Company’s 2.4 million shares of Medafor common stock was approximately $2.6 million as of December 31, 2012, prior to the sale of this investment in 2013 as described below. | |
In connection with its purchase of Medafor common stock, the Company entered into agreements with the sellers that could have required CryoLife to make additional payments to the sellers if CryoLife acquired or merged with Medafor within a specified time period. The Company accounted for these provisions as an embedded derivative. The last of these provisions expired in June 2013, and as of December 31, 2013 a derivative no longer exists. As of December 31, 2012 the value of this derivative was zero. | |
C.R. Bard’s Acquisition of Medafor | |
On October 1, 2013 C.R. Bard, Inc. (“Bard”) completed its previously announced acquisition of the outstanding shares of Medafor common stock. The Company received an initial payment of approximately $15.4 million for its 2.4 million shares of Medafor common stock and recorded an initial gain of $12.7 million on the sale in the fourth quarter of 2013. The Company could receive additional payments totaling up to an additional $8.4 million upon the release of funds held in escrow and the satisfaction of certain contingent milestones, measurable through June 2015, based on information provided by Medafor as part of the September 24, 2013 Medafor Proxy Statement. The first of these additional payments, which the Company believes could be up to approximately $525,000, if released, would be received in late 2014, although this amount is subject to possible offsets. These payments will be recorded as an additional gain when and if received by the Company. | |
Distribution Agreement and Legal Action | |
CryoLife distributed a powdered hemostat for Medafor from 2008 to 2010. CryoLife filed a lawsuit against Medafor in 2009 in the U.S. District Court for the Northern District of Georgia (“Georgia Court”). In 2010 Medafor filed counterclaims against CryoLife in the same case. The litigation related to an exclusive distribution agreement that the parties entered into in April 2008. | |
In June 2012 the parties entered into a settlement agreement. Per the settlement, Medafor paid $3.5 million in cash to CryoLife in the third quarter of 2012. On June 29, 2012 the parties jointly filed stipulated dismissals with prejudice with the Georgia Court. As a result of the settlement, CryoLife recorded a gain of $4.7 million as a reduction in general, administrative, and marketing expenses on its Consolidated Statements of Operations and Comprehensive Income in the second quarter of 2012 and recorded a reduction in accounts payable of $1.2 million to write off a payable for previous inventory purchases, which was discharged pursuant to the settlement agreement. | |
CryoLife received a letter from Medafor in September 2012 stating that PerClot®, when introduced in the U.S., will, when used in accordance with the method published in CryoLife’s literature and with the instructions for use, infringe Medafor’s U.S. patent. CryoLife does not believe that it will infringe Medafor’s patent. There have been no further communications between CryoLife and Medafor or CryoLife and Bard related to the September letter. | |
Deferred_Preservation_Costs_An
Deferred Preservation Costs And Inventories | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Deferred Preservation Costs And Inventories [Abstract] | ' | |||||
Deferred Preservation Costs And Inventories | ' | |||||
8. Deferred Preservation Costs and Inventories | ||||||
Deferred preservation costs at December 31, 2013 and 2012 are comprised of the following (in thousands): | ||||||
2013 | 2012 | |||||
Cardiac tissues | $ | 12,239 | $ | 11,950 | ||
Vascular tissues | 15,058 | 16,004 | ||||
Total deferred preservation costs | $ | 27,297 | $ | 27,954 | ||
Inventories at December 31, 2013 and 2012 are comprised of the following (in thousands): | ||||||
2013 | 2012 | |||||
Raw materials and supplies | $ | 5,706 | $ | 5,836 | ||
Work-in-process | 767 | 830 | ||||
Finished goods | 3,298 | 3,891 | ||||
Total inventories | $ | 9,771 | $ | 10,557 | ||
Goodwill_And_Other_Intangible_
Goodwill And Other Intangible Assets | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Goodwill And Other Intangible Assets [Abstract] | ' | |||||||||||||||||
Goodwill And Other Intangible Assets | ' | |||||||||||||||||
9. Goodwill and Other Intangible Assets | ||||||||||||||||||
Indefinite Lived Intangible Assets | ||||||||||||||||||
As of December 31, 2013 and 2012 the carrying values of the Company’s indefinite lived intangible assets are as follows (in thousands): | ||||||||||||||||||
2013 | 2012 | |||||||||||||||||
Goodwill | $ | 11,365 | $ | 11,365 | ||||||||||||||
Procurement contracts and agreements | 2,013 | 2,013 | ||||||||||||||||
Trademarks | 841 | 870 | ||||||||||||||||
Other | -- | 250 | ||||||||||||||||
Based on its prior experience with similar agreements, the Company believes that its acquired contracts and procurement agreements have an indefinite useful life, as the Company expects to continue to renew these contracts for the foreseeable future. The Company believes that its trademarks have an indefinite useful life as the Company currently anticipates that these trademarks will contribute cash flows to the Company indefinitely. | ||||||||||||||||||
A roll-forward of the goodwill balances for the Company’s medical devices reportable segment is as follows (in thousands): | ||||||||||||||||||
2013 | 2012 | |||||||||||||||||
Balance as of January 1, | $ | 11,365 | $ | 4,220 | ||||||||||||||
Goodwill from Hemosphere acquisition | -- | 7,145 | ||||||||||||||||
Balance as of December 31, | $ | 11,365 | $ | 11,365 | ||||||||||||||
Definite Lived Intangible Assets | ||||||||||||||||||
As of December 31, 2013 and 2012 gross carrying values, accumulated amortization, and approximate amortization periods of the Company’s definite lived intangible assets are as follows (dollars in thousands): | ||||||||||||||||||
Gross Carrying | Accumulated | Amortization | ||||||||||||||||
31-Dec-13 | Value | Amortization | Period | |||||||||||||||
Acquired technology | $ | 14,020 | $ | 2,677 | 16-Nov | Years | ||||||||||||
Patents | 4,348 | 2,414 | 17 | Years | ||||||||||||||
Distribution and manufacturing rights and know-how | 3,559 | 714 | 15 | Years | ||||||||||||||
Customer lists and relationships | 3,370 | 572 | 13-17 | Years | ||||||||||||||
Non-compete agreement | 381 | 267 | 10 | Years | ||||||||||||||
Other | 202 | 171 | 3-Jan | Years | ||||||||||||||
Gross Carrying | Accumulated | Amortization | ||||||||||||||||
31-Dec-12 | Value | Amortization | Period | |||||||||||||||
Acquired technology | $ | 14,020 | $ | 1,538 | 16-Nov | Years | ||||||||||||
Patents | 4,644 | 2,530 | 17 | Years | ||||||||||||||
Distribution and manufacturing rights and know-how | 3,559 | 473 | 15 | Years | ||||||||||||||
Customer lists and relationships | 3,370 | 330 | 13-17 | Years | ||||||||||||||
Non-compete agreement | 381 | 229 | 10 | Years | ||||||||||||||
Other | 198 | 123 | 3-Jan | Years | ||||||||||||||
Amortization Expense | ||||||||||||||||||
Amortization expense recorded in general, administrative, and marketing expenses on the Company’s Consolidated Statements of Operations and Comprehensive Income for the years ended December 31 is as follows (in thousands): | ||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||
Amortization expense | $ | 2,006 | $ | 1,971 | $ | 1,370 | ||||||||||||
As of December 31, 2013 scheduled amortization of intangible assets for the next five years is as follows (in thousands): | ||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Total | |||||||||||||
Amortization expense | $ | 1,948 | $ | 1,905 | $ | 1,898 | $ | 1,850 | $ | 1,844 | $ | 9,445 | ||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Taxes [Abstract] | ' | ||||||||
Income Taxes | ' | ||||||||
10. Income Taxes | |||||||||
Income Tax Expense | |||||||||
Income before income taxes consists of the following (in thousands): | |||||||||
2013 | 2012 | 2011 | |||||||
Domestic | $ | 23,004 | $ | 11,686 | $ | 11,238 | |||
Foreign | 288 | 366 | 228 | ||||||
Income before income taxes | $ | 23,292 | $ | 12,052 | $ | 11,466 | |||
Income tax expense consists of the following (in thousands): | |||||||||
2013 | 2012 | 2011 | |||||||
Current: | |||||||||
Federal | $ | 6,304 | $ | 2,778 | $ | 2,634 | |||
State | 396 | 180 | 103 | ||||||
Foreign | 96 | 98 | 84 | ||||||
6,796 | 3,056 | 2,821 | |||||||
Deferred: | |||||||||
Federal | 1,142 | 1,274 | 1,087 | ||||||
State | -818 | -227 | 183 | ||||||
Foreign | - | 3 | 4 | ||||||
324 | 1,050 | 1,274 | |||||||
Income tax expense | $ | 7,120 | $ | 4,106 | $ | 4,095 | |||
The Company’s income tax expense in 2013, 2012, and 2011 included the Company’s federal, state, and foreign tax obligations. The Company’s effective income tax rate was approximately 31%, 34%, and 36% for the years ended December 31, 2013, 2012, and 2011, respectively. The Company’s income tax rate for the twelve months ended December 31, 2013 was favorably affected by the full year 2012 research and development tax credit, which was enacted in January 2013 and, therefore, reduced the Company’s tax expense during the first quarter of 2013 and adjustments to valuation allowances on certain of the Company’s state net operating loss carryforwards, based on revised estimates of utilization of these carryforwards. The Company’s income tax rates for the three and twelve months ended December 31, 2012 were favorably affected by adjustments to valuation allowances on certain of the Company’s state net operating loss carryforwards, based on revised estimates of utilization of these carryforwards, and unfavorably affected by the tax treatment of certain acquisition related expenses due to the acquisition of Hemosphere and by the research and development tax credit, which had not been enacted for the 2012 tax year. | |||||||||
The income tax expense amounts differ from the amounts computed by applying the U.S. federal statutory income tax rate of 35% to pretax income as a result of the following (in thousands): | |||||||||
2013 | 2012 | 2011 | |||||||
Tax expense at statutory rate | $ | 8,152 | $ | 4,220 | $ | 4,013 | |||
Increase (reduction) in income taxes resulting from: | |||||||||
Non-deductible transaction costs | -- | 151 | 540 | ||||||
State income taxes, net of federal benefit | 183 | 296 | 150 | ||||||
State valuation allowance adjustment | -760 | -427 | 100 | ||||||
Equity compensation | -29 | 32 | 149 | ||||||
Non-deductible entertainment expenses | 207 | 188 | 142 | ||||||
Foreign income taxes | 96 | -199 | 3 | ||||||
Domestic production activities deduction | -402 | -407 | -727 | ||||||
Research and development credit | -392 | -- | -314 | ||||||
Other | 65 | 252 | 39 | ||||||
$ | 7,120 | $ | 4,106 | $ | 4,095 | ||||
Deferred Taxes | |||||||||
The Company generates deferred tax assets primarily as a result of write-downs of deferred preservation costs, inventory, and in-process research and development; accruals for product and tissue processing liability claims; asset impairments; and, in prior periods, due to operating losses. The Company acquired significant deferred tax assets, primarily net operating loss carryforwards, from its acquisitions of Hemosphere and Cardiogenesis in the second quarters of 2012 and 2011, respectively. See Note 4 and Note 6 for a further discussion of the Company’s acquisitions of Hemosphere and Cardiogenesis, respectively. | |||||||||
The tax effects of temporary differences which give rise to deferred tax assets and liabilities at December 31 are as follows (in thousands): | |||||||||
2013 | 2012 | ||||||||
Deferred tax assets: | |||||||||
Allowance for bad debts | $ | 131 | $ | 194 | |||||
Deferred preservation costs and inventory write-downs | 1,077 | 392 | |||||||
Investment in equity securities | 1,959 | 925 | |||||||
Property | 2,737 | 2,644 | |||||||
Intangible assets | 422 | 502 | |||||||
Accrued expenses | 3,766 | 3,782 | |||||||
Loss carryforwards | 15,689 | 17,539 | |||||||
Credit carryforwards | 241 | 2,166 | |||||||
Stock compensation | 2,409 | 2,319 | |||||||
Other | 1,108 | 969 | |||||||
Less valuation allowance | -1,532 | -2,292 | |||||||
Total deferred tax assets | 28,007 | 29,140 | |||||||
Deferred tax liabilities: | |||||||||
Prepaid items | -451 | -314 | |||||||
Intangible assets | -5,289 | -5,814 | |||||||
Other | -220 | -348 | |||||||
Total deferred tax liabilities | -5,960 | -6,476 | |||||||
Total net deferred tax assets | $ | 22,047 | $ | 22,664 | |||||
As of December 31, 2013 the Company maintained a total of $1.5 million in valuation allowances against deferred tax assets, related to state net operating loss carryforwards, and a net deferred tax asset of $22.0 million. As of December 31, 2012 the Company maintained a total of $2.3 million in valuation allowances against deferred tax assets, related to state net operating loss carryforwards, and a net deferred tax asset of $22.7 million. | |||||||||
As of December 31, 2013 the Company had approximately $3.2 million of tax-effected state net operating loss carryforwards that began to expire in 2013, $61,000 in research and development tax credit carryforwards that will begin to expire in 2022, and $163,000 in credits from the state of Texas that will fully expire by 2027. | |||||||||
Uncertain Tax Positions | |||||||||
A reconciliation of the beginning and ending balances of the Company’s uncertain tax position liability, excluding interest and penalties, is as follows (in thousands): | |||||||||
2013 | 2012 | 2011 | |||||||
Beginning balance | $ | 2,004 | $ | 1,788 | $ | 1,822 | |||
Increases related to current year tax positions | 281 | 231 | 78 | ||||||
Decreases related to prior year tax positions | -185 | -15 | -112 | ||||||
Ending balance | $ | 2,100 | $ | 2,004 | $ | 1,788 | |||
A reconciliation of the beginning and ending balances of the Company’s liability for interest and penalties on uncertain tax positions is as follows (in thousands): | |||||||||
2013 | 2012 | 2011 | |||||||
Beginning balance | $ | 489 | $ | 418 | $ | 391 | |||
Accrual of interest and penalties | 66 | 79 | 65 | ||||||
Decreases related to prior year tax positions | -133 | -8 | -38 | ||||||
Ending balance | $ | 422 | $ | 489 | $ | 418 | |||
As of December 31, 2013 the Company’s total uncertain tax liability, including interest and penalties of $2.5 million, was recorded as a non-current liability on the Company’s Consolidated Balance Sheets. As of December 31, 2012 the Company’s total uncertain tax liability, including interest and penalties of $2.5 million, was recorded as a reduction to deferred tax assets of $103,000 and a non-current liability of $2.4 million on the Company’s Consolidated Balance Sheets. | |||||||||
Other | |||||||||
The Company’s tax years 2010 through 2013 generally remain open to examination by the major taxing jurisdictions to which the Company is subject. However, certain returns from years prior to 2010, in which net operating losses and tax credits have arisen, are still open for examination by the tax authorities. | |||||||||
Debt
Debt | 12 Months Ended |
Dec. 31, 2013 | |
Debt [Abstract] | ' |
Debt | ' |
11. Debt | |
GE Credit Agreement | |
On October 28, 2011 CryoLife amended and restated its March 26, 2008 credit agreement with GE Capital (the “GE Credit Agreement”) which provides revolving credit for working capital, acquisitions, and other corporate purposes. The amendment increased the borrowing capacity under the GE Credit Agreement from $15.0 million to $20.0 million (including a letter of credit subfacility) and extended the expiration from October 31, 2011 to October 28, 2014. The initial commitment may continue to be reduced or increased from time to time pursuant to the terms of the GE Credit Agreement. The Company amended the agreement to allow the payment of cash dividends up to a maximum of $3.5 million per year, subject to satisfaction of specified conditions. | |
The GE Credit Agreement places limitations on the amount that the Company may borrow and includes various affirmative and negative covenants, including financial covenants such as a requirement that CryoLife (i) not exceed a defined leverage ratio, (ii) maintain a minimum adjusted earnings subject to defined adjustments as of specified dates, and (iii) not make or commit capital expenditures in excess of a defined limitation. As required under the terms of the GE Credit Agreement, the Company is maintaining cash and cash equivalents of at least $5.0 million in accounts in which GE Capital has a first priority perfected lien. These amounts are recorded as restricted cash as of December 31, 2013 and 2012 on the Company’s Consolidated Balance Sheets, as they are restricted for the term of the GE Credit Agreement. Also, the GE Credit Agreement requires that after giving effect to a stock repurchase the Company maintain liquidity, as defined within the agreement, of at least $20.0 million. The GE Credit Agreement includes customary conditions on incurring new indebtedness. Commitment fees are paid based on the unused portion of the facility. As of December 31, 2013 the Company was in compliance with the covenants of the GE Credit Agreement. | |
Amounts borrowed under the GE Credit Agreement are secured by substantially all of the tangible and intangible assets of CryoLife and its subsidiaries and bear interest as determined by GE Capital at either LIBOR, with a minimum rate of 4.25%, or GE Capital’s base rate, with a minimum rate of 3.25% each, plus the applicable margin. | |
As of December 31, 2013 the outstanding balance of the GE Credit Agreement was zero, the aggregate interest rate was 6.50%, and the remaining availability was $20.0 million. As of December 31, 2012 the outstanding balance of the GE Credit Agreement was zero, the aggregate interest rate was 6.50%, and the remaining availability was $20.0 million. | |
Other | |
Total interest expense was $71,000, $179,000, and $142,000 in 2013, 2012, and 2011, respectively, which included interest on debt and uncertain tax positions. | |
Commitments_And_Contingencies
Commitments And Contingencies | 12 Months Ended | ||
Dec. 31, 2013 | |||
Commitments And Contingencies [Abstract] | ' | ||
Commitments And Contingencies | ' | ||
12. Commitments and Contingencies | |||
Leases | |||
The Company's operating lease obligations result from the lease of land and buildings that comprise the Company's corporate headquarters and manufacturing facilities, leases related to additional manufacturing, office, and warehouse space, leases on Company vehicles, and leases on a variety of office equipment. In prior years, the Company's capital lease obligations resulted from the financing of certain of the Company's equipment. As of December 31, 2013 and 2012 the remaining obligations under the Company’s capital leases was zero. | |||
The term of the lease of the land and buildings that comprise the Company’s corporate headquarters was originally 15 years. During the second quarter of 2010 the Company signed an amendment to the lease on its corporate headquarters extending the lease until 2022. The Company has a deferred rent obligation of $1.7 million as of December 31, 2013 and $1.6 million as of December 31, 2012 recorded on the Company’s Consolidated Balance Sheets, primarily related to the lease on its corporate headquarters. Total rental expense for operating leases was $3.0 million in 2013 and $2.7 million in both 2012 and 2011. | |||
Future minimum operating lease payments under non-cancelable leases as of December 31, 2013 are as follows (in thousands): | |||
Operating | |||
Leases | |||
2014 | $ | 2,799 | |
2015 | 3,031 | ||
2016 | 2,943 | ||
2017 | 2,980 | ||
2018 | 3,010 | ||
Thereafter | 10,124 | ||
Total minimum lease payments | $ | 24,887 | |
Liability Claims | |||
At December 31, 2013 and 2012 the Company’s unreported loss liability was $1.5 million and $1.7 million, respectively. The related recoverable insurance amounts were $580,000 and $620,000 as of December 31, 2013 and 2012, respectively. The Company accrues its estimate of unreported product and tissue processing liability claims as components of accrued expenses and other long‑term liabilities and records the related recoverable insurance amounts as a component of receivables and other long‑term assets, as appropriate. Further analysis indicated that the liability as of December 31, 2013 could be estimated to be as high as $2.7 million, after including a reasonable margin for statistical fluctuations calculated based on actuarial simulation techniques. | |||
Employment Agreement | |||
The Company has an employment agreement with its Chief Executive Officer (“CEO”) that confers benefits which become payable upon the occurrence of certain events, including the voluntary retirement of the CEO or termination of the CEO’s employment in conjunction with certain change events. As of both December 31, 2013 and 2012 the Company had $2.1 million in accrued expenses and other current liabilities on the Consolidated Balance Sheets representing benefits payable upon the CEO’s voluntary retirement, for which he is currently eligible. The CEO’s current agreement took effect on January 1, 2013 and terminates on December 31, 2015. A payment of $100,000 was made in January 2013 in accordance with the terms of the new agreement. | |||
PerClot Technology | |||
On September 28, 2010 the Company entered into a worldwide distribution agreement (the “Distribution Agreement”) and a license and manufacturing agreement (the “License Agreement”) with SMI of San Jose, California for PerClot, a polysaccharide hemostatic agent used in surgery. The Distribution Agreement contains certain minimum purchase requirements and has a term of 15 years. Following the start of manufacturing and U.S. regulatory approval, CryoLife may terminate the Distribution Agreement and the related minimum purchase requirements and sell PerClot pursuant to the License Agreement. The Company will pay royalties to SMI at stated rates on net revenues of products manufactured under the License Agreement and will pay additional contingent amounts of up to $2.5 million to SMI if certain FDA regulatory and other commercial milestones are achieved. The Company expects to record future contingent payment amounts of up to $2.5 million initially as research and development expense or, after FDA approval or issuance of a patent, as acquired intangible assets. | |||
Shareholders_Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2013 | |
Shareholders' Equity [Abstract] | ' |
Shareholders' Equity | ' |
13. Shareholders’ Equity | |
Common Stock Repurchase | |
On November 1, 2011 the Company announced that its Board of Directors had authorized the Company’s purchase of $15.0 million of its common stock through December 31, 2012. This program expired on December 31, 2012. In February 2013 the Company’s Board of Directors authorized the purchase of up to $15.0 million of its common stock through October 31, 2014. | |
For the year ended December 31, 2013 the Company purchased approximately 253,000 shares of its common stock for an aggregate purchase price of $1.5 million. As of December 31, 2013, the Company had $13.5 million in remaining authorizations under the repurchase program. For the year ended December 31, 2012 the Company purchased approximately 639,000 shares of its common stock for an aggregate purchase price of $3.3 million. These shares were recorded, at cost, as part of treasury stock on the Company’s Consolidated Balance Sheets. | |
Treasury Stock | |
On August 7, 2012 the Company retired 2.7 million shares of treasury stock with an aggregate value of $15.1 million. The retirement was recorded as a reduction of $15.1 million in treasury stock, $27,000 in common stock, and approximately $15.1 million in additional paid in capital. These shares remain available for issuance as authorized unissued shares. | |
Cash Dividends | |
On August 21, 2012 the Company announced that its Board of Directors had approved the initiation of a quarterly cash dividend of $0.025 per share of common stock outstanding. In May 2013 the Company announced that its Board of Directors approved a 10% increase in the quarterly cash dividend beginning in the second quarter of 2013 from $0.025 to $0.0275 per share of common stock outstanding. The Company paid dividend payments from cash on hand of $3.0 million and $1.4 million for the years ended December 31, 2013 and 2012, respectively. | |
Shareholder Rights Plan | |
The Company has a shareholder rights agreement entered into in 1995 and amended in 2005. Under the rights agreement, each share of the Company's common stock outstanding on December 11, 1995 is entitled to one “Right,” as defined in, and subject to, the terms of the rights agreement. A Right entitles the registered holder to purchase from the Company one one-hundredth of a share of Series A Junior Participating Preferred Stock (“Series A Stock”) of the Company at $33.33 per one one-hundredth of a Preferred Share, subject to adjustment. Additionally, each common share that has or shall become outstanding after December 11, 1995 is also entitled to a Right, subject to the terms and conditions of the rights agreement. The Rights, which expire on November 23, 2015, may be exercised only if certain conditions are met, such as the acquisition of 15% or more of the Company's common stock by a person or affiliated group (together with its affiliates, associates, and transferees, an "Acquiring Person"). Rights beneficially owned by an Acquiring Person become void from and after the time such persons become Acquiring Persons, and Acquiring Persons have no rights whatsoever under the rights agreement. | |
Each share of Series A Stock purchasable upon exercise of a Right will be entitled, when, as, and if declared, to a minimum preferential quarterly dividend payment of $1.00 per share but will be entitled to an aggregate dividend of 100 times the dividend declared per share of common stock. In the event of liquidation, each share of the Series A Stock will be entitled to a minimum preferential liquidation payment of 100 times the payment made per share of common stock. Finally, in the event of any merger, consolidation, or other transaction in which shares of common stock are exchanged, each share of Series A Stock will be entitled to receive 100 times the amount received per share of common stock. These rights are protected by customary antidilution provisions. | |
In the event the Rights become exercisable, each Right will enable the owner, other than Acquiring Persons, to purchase shares of the Company’s Series A Stock as described above. Alternatively, if the Rights become exercisable, the holder of a Right may elect to receive, upon exercise of the Right and in lieu of receiving Series A Stock, that number of shares of common stock of the Company having an exercise value of two times the exercise price of the Right. In the event that, after a person or group has become an Acquiring Person, the Company is acquired in a merger or other business combination transaction or 50% or more of its consolidated assets or earning power are sold, proper provision will be made so that each holder of a Right will thereafter have the right to receive, upon the exercise of a Right, and in lieu of Series A Stock of the Company, that number of shares of common stock of the person with whom the Company has engaged in the foregoing transaction (or its parent) that at the time of such transaction will have a market value of two times the exercise price of the Right. In addition, after any person or group becomes an Acquiring Person and prior to the acquisition by the person or group of 50% or more of the outstanding common stock, the Board of Directors may elect to exchange all outstanding Rights at an exchange ratio of one share of common stock (or fractional share of Series A Stock or other preferred shares) per Right (subject to adjustment). | |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2013 | |
Employee Benefit Plans [Abstract] | ' |
Employee Benefit Plans | ' |
14. Employee Benefit Plans | |
401(k) Plan | |
The Company has a 401(k) savings plan (the "Plan") providing retirement benefits to all employees who have completed at least three months of service. The Company made matching contributions of 40% of each participant's contribution for up to 5% of each participant's salary in 2013 and 2012. In 2011 the Company made matching contributions to the plan of 20% of each participant’s contribution for up to 5% of each participant’s salary. Total Company contributions approximated $541,000, $500,000, and $204,000 for the years ended December 31, 2013, 2012, and 2011, respectively. Additionally, the Company may make discretionary contributions to the Plan that are allocated to each participant's account. No discretionary contributions were made in any of the past three years. | |
Deferred Compensation Plan | |
On January 1, 2011 CryoLife initiated a nonqualified Deferred Compensation Plan (“Deferred Plan”). The Deferred Plan allows certain employees of CryoLife to defer receipt of a portion of their salary and cash bonus. The Deferred Plan provides for tax-deferred growth of deferred compensation. Pursuant to the terms of the Deferred Plan, CryoLife agrees to return the deferred amounts plus gains and losses, based on investment fund options chosen by each respective participant, to the plan participants upon distribution. All deferred amounts and deemed earnings thereon are vested at all times. The Company has no current plans to match any contributions. Amounts owed to plan participants are unsecured obligations of CryoLife. CryoLife has established a rabbi trust in which it will make contributions to fund its obligations under the Deferred Plan. Pursuant to the terms of the trust, CryoLife will be required to make contributions each year to fully match its obligations under the Deferred Plan. The trust’s funds are invested in Company Owned Life Insurance (“COLI”) and the Company plans to hold the policies until the death of the insured. | |
The Company’s deferred compensation liabilities are recorded as a component of other current liabilities or long-term deferred compensation liabilities, as appropriate, based on anticipated distribution dates. The cash surrender value of COLI is recorded in other long-term assets. Changes in the value of participant accounts and changes in the cash surrender value of COLI are recorded as part of the Company’s operating expenses and are subject to the Company’s normal allocation of expenses to inventory and deferred preservation costs. | |
Stock_Compensation
Stock Compensation | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Stock Compensation [Abstract] | ' | |||||||||||
Stock Compensation | ' | |||||||||||
15. Stock Compensation | ||||||||||||
Overview | ||||||||||||
Under the Company’s plans, the Company is currently authorized to grant the following number of shares and the Company has available for grant up to the following number of shares as of December 31, 2013 and 2012: | ||||||||||||
Authorized | Available for Grant | |||||||||||
Plan | Shares | 2013 | 2012 | |||||||||
1996 Discounted Employee Stock Purchase Plan, as amended | 1,900,000 | 749,000 | 847,000 | |||||||||
2004 Employee Stock Incentive Plan | 2,100,000 | 60,000 | 41,000 | |||||||||
2008 Non-Employee Directors Stock Incentive Plan | 300,000 | -- | 27,000 | |||||||||
2009 Employee Stock Incentive Plan | 4,100,000 | 2,221,000 | 2,847,000 | |||||||||
Total | 8,400,000 | 3,030,000 | 3,762,000 | |||||||||
During 2012 the Company amended the 2009 Employee Stock Incentive Plan to increase the authorized shares under the plan by 2.1 million shares. Upon the exercise of stock options or grants of RSAs, RSUs, or PSUs, the Company may issue the required shares out of authorized but unissued common stock or out of treasury stock, at management’s discretion. | ||||||||||||
Stock Awards | ||||||||||||
In 2013 the Compensation Committee of the Company’s Board of Directors authorized awards from approved stock incentive plans of RSAs to non-employee Directors, RSUs to certain employees, and RSAs and PSUs to certain Company officers, which, counting PSUs at target levels, together totaled 467,000 shares of common stock and had an aggregate market value of $3.1 million. The PSUs granted in 2013 represent the right to receive from 50% to 150% of the target numbers of shares of common stock. The performance component of PSU awards granted in 2013 is based on the attainment of specified levels of adjusted EBITDA, as defined in the grant, for the 2013 calendar year. The PSUs granted in 2013 earned approximately 115% of the target number of shares. | ||||||||||||
In 2012 the Compensation Committee of the Company’s Board of Directors authorized awards from approved stock incentive plans of RSAs to non-employee Directors, RSUs to certain employees, and RSAs and PSUs to certain Company officers, which, counting PSUs at target levels, together totaled 451,000 shares of common stock and had an aggregate market value of $2.4 million. The PSUs granted in 2012 earned approximately 125% of the target number of shares. | ||||||||||||
In 2011 the Compensation Committee of the Company’s Board of Directors authorized awards from approved stock incentive plans of RSAs to non-employee Directors and certain Company officers and RSUs to certain employees, which together totaled 421,000 shares of common stock and had an aggregate market value of $2.2 million. | ||||||||||||
A summary of stock grant activity for the years ended December 31, 2013, 2012, and 2011 for RSAs, RSUs, and PSUs, based on shares granted at goal, is as follows: | ||||||||||||
Weighted | ||||||||||||
Average | ||||||||||||
Grant Date | ||||||||||||
RSAs | Shares | Fair Value | ||||||||||
Unvested at December 31, 2010 | 364,000 | $ | 7.07 | |||||||||
Granted | 360,000 | 5.18 | ||||||||||
Vested | -128,000 | 7.28 | ||||||||||
Forfeited | -44,000 | 5.48 | ||||||||||
Unvested at December 31, 2011 | 552,000 | 5.91 | ||||||||||
Granted | 229,000 | 5.39 | ||||||||||
Vested | -142,000 | 7.00 | ||||||||||
Unvested at December 31, 2012 | 639,000 | 5.48 | ||||||||||
Granted | 232,000 | 6.10 | ||||||||||
Vested | -215,000 | 5.80 | ||||||||||
Forfeited | -34,000 | 5.31 | ||||||||||
Unvested at December 31, 2013 | 622,000 | 5.62 | ||||||||||
Weighted | ||||||||||||
Average | ||||||||||||
Remaining | Aggregate | |||||||||||
Contractual | Intrinsic | |||||||||||
RSUs | Shares | Term in years | Value | |||||||||
Outstanding at December 31, 2010 | 58,000 | 1.85 | $ | 313,000 | ||||||||
Granted | 61,000 | |||||||||||
Vested | -19,000 | |||||||||||
Forfeited | -3,000 | |||||||||||
Outstanding at December 31, 2011 | 97,000 | 1.66 | 466,000 | |||||||||
Granted | 64,000 | |||||||||||
Vested | -37,000 | |||||||||||
Forfeited | -4,000 | |||||||||||
Outstanding at December 31, 2012 | 120,000 | 1.54 | 747,000 | |||||||||
Granted | 73,000 | |||||||||||
Vested | -54,000 | |||||||||||
Forfeited | -10,000 | |||||||||||
Outstanding at December 31, 2013 | 129,000 | 1.56 | 1,425,000 | |||||||||
Vested and expected to vest | 118,000 | 1.55 | $ | 1,314,000 | ||||||||
Weighted | ||||||||||||
Average | ||||||||||||
Remaining | Aggregate | |||||||||||
Contractual | Intrinsic | |||||||||||
PSUs | Shares | Term in years | Value | |||||||||
Outstanding at December 31, 2011 | -- | -- | $ | -- | ||||||||
Granted | 159,000 | |||||||||||
Vested | -- | |||||||||||
Forfeited | -- | |||||||||||
Outstanding at December 31, 2012 | 159,000 | 0.93 | 989,000 | |||||||||
Granted | 182,000 | |||||||||||
Vested | -99,000 | |||||||||||
Forfeited | -6,000 | |||||||||||
Outstanding at December 31, 2013 | 236,000 | 0.81 | 2,612,000 | |||||||||
Vested and expected to vest | 224,000 | 0.78 | $ | 2,487,000 | ||||||||
Stock Options | ||||||||||||
The Compensation Committee of the Company’s Board of Directors authorized grants of stock options from approved stock incentive plans to certain Company officers and employees totaling 162,000, 159,000, and 599,000 shares in 2013, 2012, and 2011, respectively, with exercise prices equal to the stock prices on the respective grant dates. | ||||||||||||
A summary of the Company’s stock option activity for the years ended December 31, 2013, 2012, and 2011 follows: | ||||||||||||
Weighted | ||||||||||||
Average | ||||||||||||
Weighted | Remaining | Aggregate | ||||||||||
Average | Contractual | Intrinsic | ||||||||||
Shares | Exercise Price | Term in years | Value | |||||||||
Outstanding at December 31, 2010 | 2,281,000 | $ | 6.74 | 3.46 | $ | 603,000 | ||||||
Granted | 599,000 | 5.13 | ||||||||||
Exercised | -260,000 | 4.53 | ||||||||||
Forfeited | -100,000 | 5.60 | ||||||||||
Expired | -320,000 | 5.30 | ||||||||||
Outstanding at December 31, 2011 | 2,200,000 | 6.83 | 4.00 | -- | ||||||||
Granted | 159,000 | 5.67 | ||||||||||
Exercised | -48,000 | 5.64 | ||||||||||
Forfeited | -2,000 | 7.01 | ||||||||||
Expired | -249,000 | 7.03 | ||||||||||
Outstanding at December 31, 2012 | 2,060,000 | 6.74 | 3.66 | 1,225,000 | ||||||||
Granted | 162,000 | 6.12 | ||||||||||
Exercised | -365,000 | 7.48 | ||||||||||
Forfeited | -49,000 | 5.56 | ||||||||||
Expired | -14,000 | 6.69 | ||||||||||
Outstanding at December 31, 2013 | 1,794,000 | 6.57 | 3.31 | 8,274,000 | ||||||||
Vested and expected to vest | 1,781,000 | $ | 6.57 | 3.29 | $ | 8,205,000 | ||||||
Exercisable at December 31, 2013 | 1,372,000 | $ | 6.86 | 2.75 | $ | 5,971,000 | ||||||
Other information concerning stock options for the years ended December 31 is as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Weighted-average fair value of options granted | $ | 2.54 | $ | 2.67 | $ | 2.54 | ||||||
Intrinsic value of options exercised | 673,000 | 10,000 | 261,000 | |||||||||
Employees purchased common stock totaling 97,000, 72,000, and 64,000 shares in 2013, 2012, and 2011, respectively, through the Company’s ESPP. | ||||||||||||
Stock Compensation Expense | ||||||||||||
The following weighted‑average assumptions were used to determine the fair value of options: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Stock | ESPP | Stock | ESPP | Stock | ESPP | |||||||
Options | Options | Options | Options | Options | Options | |||||||
Expected life of options | 4.3 Years | .50 Years | 4.3 Years | .50 Years | 4.0 Years | .50 Years | ||||||
Expected stock price volatility | 0.60 | 0.39 | 0.60 | 0.48 | 0.65 | 0.39 | ||||||
Dividends | 1.91% | 1.59% | N/A | N/A | N/A | N/A | ||||||
Risk-free interest rate | 0.70% | 0.13% | 0.71% | 0.12% | 1.25% | 0.14% | ||||||
The following table summarizes stock compensation expenses (in thousands): | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
RSA, RSU, and PSU expense | $ | 2,616 | $ | 2,204 | $ | 1,408 | ||||||
Stock option and ESPP option expense | 852 | 1,172 | 1,606 | |||||||||
Total stock compensation expense | $ | 3,468 | $ | 3,376 | $ | 3,014 | ||||||
Included in the total stock compensation expense, as applicable in each period, were expenses related to RSAs, RSUs, PSUs, and stock options issued in each respective year, as well as those issued in prior periods that continue to vest during the period, and compensation related to the Company’s ESPP. These amounts were recorded as stock compensation expense and were subject to the Company’s normal allocation of expenses to deferred preservation costs and inventory costs. The Company capitalized $228,000, $214,000 and $224,000 in the years ended December 31, 2013, 2012, and 2011, respectively, of the stock compensation expense into its deferred preservation costs and inventory costs. | ||||||||||||
As of December 31, 2013 the Company had total unrecognized compensation costs of $532,000 related to unvested stock options and $2.8 million related to RSAs, RSUs, and PSUs, before considering the effect of expected forfeitures. As of December 31, 2013 this expense is expected to be recognized over a weighted-average period of 1.13 years for stock options, 0.92 years for RSAs, 2.27 years for RSUs, and 0.81 years for PSUs. | ||||||||||||
Income_Per_Common_Share
Income Per Common Share | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Per Common Share [Abstract] | ' | ||||||||
Income Per Common Share | ' | ||||||||
16. Income Per Common Share | |||||||||
The following table sets forth the computation of basic and diluted income per common share (in thousands, except per share data): | |||||||||
2013 | 2012 | 2011 | |||||||
Basic income per common share | |||||||||
Net income | $ | 16,172 | $ | 7,946 | $ | 7,371 | |||
Net income allocated to participating securities | -367 | -180 | -149 | ||||||
Net income allocated to common shareholders | $ | 15,805 | $ | 7,766 | $ | 7,222 | |||
Basic weighted-average common shares outstanding | 26,885 | 26,967 | 27,441 | ||||||
Basic income per common share | $ | 0.59 | $ | 0.29 | $ | 0.26 | |||
Diluted income per common share | |||||||||
Net income | $ | 16,172 | $ | 7,946 | $ | 7,371 | |||
Net income allocated to participating securities | -359 | -178 | -147 | ||||||
Net income allocated to common shareholders | $ | 15,813 | $ | 7,768 | $ | 7,224 | |||
Basic weighted-average common shares outstanding | 26,885 | 26,967 | 27,441 | ||||||
Effect of dilutive options and awardsa | 813 | 444 | 318 | ||||||
Diluted weighted-average common shares outstanding | 27,698 | 27,411 | 27,759 | ||||||
Diluted income per common share | $ | 0.57 | $ | 0.28 | $ | 0.26 | |||
aThe Company excluded stock options from the calculation of diluted weighted-average common shares outstanding if the per share value, including the sum of (i) the exercise price of the options and (ii) the amount of the compensation cost attributed to future services and not yet recognized, was greater than the average market price of the shares, because the inclusion of these stock options would be antidilutive to income per common share. Accordingly, stock options to purchase 656,000, 1.7 million, and 2.0 million, shares for the years ended December 31, 2013, 2012, and 2011, respectively, were excluded from the calculation of diluted weighted-average common shares outstanding. | |||||||||
Transactions_With_Related_Part
Transactions With Related Parties | 12 Months Ended |
Dec. 31, 2013 | |
Transactions With Related Parties [Abstract] | ' |
Transactions With Related Parties | ' |
17. Transactions with Related Parties | |
An investment banking services company employee became a member of the Company’s Board of Directors and a shareholder of the Company in 2012. The Company made stock repurchases of $321,000, $794,000, and $2.9 million in 2013, 2012, and 2011, respectively, which includes the cost of stock and commissions of less than 1%, and expensed $818,000 in 2011 for investment banking services from that company. The Company did not record expenses for investment banking services from that company in 2013 or 2012. | |
A member of the Company’s Board of Directors and a shareholder of the Company is a current employee of and the former Chief of Thoracic Surgery of a university hospital that generated preservation services and product revenues of $353,000, $267,000, and $198,000 for the Company in 2013, 2012, and 2011, respectively. Additionally, the son of this member of the Company’s Board of Directors receives a retainer for performing heart and lung transplants from a medical center that generated preservation services and product revenues of $345,000, $312,000, and $219,000 for the Company in 2013, 2012, and 2011, respectively. | |
The Company expensed $47,000, $22,000, and $45,000 in 2013, 2012, and 2011, respectively, relating to supplies for clinical trials purchased from a company whose Chief Financial Officer is a member of the Company's Board of Directors and a shareholder of the Company. | |
A relative of the Company’s CEO is employed as a vice president of the Company. His compensation and benefits are set and subject to review by the Compensation Committee of the Board of Directors. | |
Segment_And_Geographic_Informa
Segment And Geographic Information | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Segment And Geographic Information [Abstract] | ' | ||||||||
Segment And Geographic Information | ' | ||||||||
18. Segment and Geographic Information | |||||||||
The Company has two reportable segments organized according to its products and services: Medical Devices and Preservation Services. The Medical Devices segment includes external revenues from product sales of BioGlue, BioFoam, PerClot, revascularization technologies, and HeRO Graft. The Preservation Services segment includes external services revenues from the preservation of cardiac and vascular tissues. There are no intersegment revenues. | |||||||||
The primary measure of segment performance, as viewed by the Company’s management, is segment gross margin, or net external revenues less cost of products and preservation services. The Company does not segregate assets by segment; therefore, asset information is excluded from the segment disclosures below. | |||||||||
The following table summarizes revenues, cost of products and preservation services, and gross margins for the Company’s operating segments (in thousands): | |||||||||
2013 | 2012 | 2011 | |||||||
Revenues: | |||||||||
Medical devices | $ | 76,194 | $ | 67,496 | $ | 59,387 | |||
Preservation services | 64,498 | 63,603 | 59,793 | ||||||
Othera | 71 | 619 | 446 | ||||||
Total revenues | 140,763 | 131,718 | 119,626 | ||||||
Cost of products and preservation services: | |||||||||
Medical devices | 15,147 | 11,380 | 9,442 | ||||||
Preservation services | 35,230 | 35,320 | 34,340 | ||||||
Total cost of products and preservation services | 50,377 | 46,700 | 43,782 | ||||||
Gross margin: | |||||||||
Medical devices | 61,047 | 56,116 | 49,945 | ||||||
Preservation services | 29,268 | 28,283 | 25,453 | ||||||
Othera | 71 | 619 | 446 | ||||||
Total gross margin | $ | 90,386 | $ | 85,018 | $ | 75,844 | |||
Net revenues by product for the years ended December 31, 2013, 2012, and 2011 were as follows (in thousands): | |||||||||
2013 | 2012 | 2011 | |||||||
Products: | |||||||||
BioGlue and BioFoam | $ | 58,004 | $ | 53,211 | $ | 49,455 | |||
PerClot | 3,494 | 3,078 | 2,528 | ||||||
HemoStase | -- | -- | 1,699 | ||||||
Revascularization technologies | 8,965 | 8,092 | 5,705 | ||||||
HeRO Graft | 5,731 | 3,115 | -- | ||||||
Total products | 76,194 | 67,496 | 59,387 | ||||||
Preservation services: | |||||||||
Cardiac tissue | 29,523 | 29,756 | 26,618 | ||||||
Vascular tissue | 34,975 | 33,847 | 33,175 | ||||||
Total preservation services | 64,498 | 63,603 | 59,793 | ||||||
Othera | 71 | 619 | 446 | ||||||
Total revenues | $ | 140,763 | $ | 131,718 | $ | 119,626 | |||
aFor the years ended December 31, 2013, 2012, and 2011 the “Other” designation includes grant revenue. | |||||||||
Net revenues by geographic location attributed to countries based on the location of the customer for the years ended December 31, 2013, 2012, and 2011 were as follows (in thousands): | |||||||||
2013 | 2012 | 2011 | |||||||
U.S. | $ | 109,325 | $ | 103,804 | $ | 95,975 | |||
International | 31,438 | 27,914 | 23,651 | ||||||
Total revenues | $ | 140,763 | $ | 131,718 | $ | 119,626 | |||
At December 31, 2013 and 2012 over 95% of the long‑lived assets of the Company were held in the U.S., where all of the Company’s manufacturing facilities and the corporate headquarters are located. At December 31, 2013 and 2012 the Company’s $11.4 million of goodwill was allocated entirely to its Medical Devices segment. | |||||||||
Selected_Quarterly_Financial_I
Selected Quarterly Financial Information | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Selected Quarterly Financial Information [Abstract] | ' | ||||||||||||
Selected Quarterly Financial Information | ' | ||||||||||||
SELECTED QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |||||||||||||
(in thousands, except per share data) | |||||||||||||
First | Second | Third | Fourth | ||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||
REVENUE: | |||||||||||||
2013 | $ | 35,536 | $ | 33,520 | $ | 36,250 | $ | 35,457 | |||||
2012 | 32,301 | 33,188 | 33,429 | 32,800 | |||||||||
2011 | 30,196 | 29,379 | 29,654 | 30,397 | |||||||||
GROSS MARGIN: | |||||||||||||
2013 | $ | 23,276 | $ | 21,479 | $ | 23,349 | $ | 22,282 | |||||
2012 | 21,292 | 21,371 | 21,310 | 21,045 | |||||||||
2011 | 18,504 | 19,053 | 18,912 | 19,375 | |||||||||
NET INCOME: | |||||||||||||
2013 | $ | 2,192 | $ | 1,785 | $ | 3,169 | $ | 9,026 | * | ||||
2012 | 991 | 3,334 | 1,538 | 2,083 | |||||||||
2011 | 1,666 | 1,820 | 2,019 | 1,866 | |||||||||
INCOME PER COMMON SHARE—DILUTED: | |||||||||||||
2013 | $ | 0.08 | $ | 0.06 | $ | 0.11 | $ | 0.31 | * | ||||
2012 | 0.04 | 0.12 | 0.06 | 0.07 | |||||||||
2011 | 0.06 | 0.06 | 0.07 | 0.07 | |||||||||
*The fourth quarter 2013 net income and income per common share-diluted includes the favorable effect of a $12.7 million pre-tax gain on the sale of an investment in the common stock of Medafor, Inc. as a result of C.R. Bard, Inc. completing its acquisition of the outstanding common shares of Medafor, Inc. and the unfavorable effect of a $3.2 million other than temporary investment impairment as a result of the impairment and write-down of the Company’s investment in ValveXchange preferred stock. | |||||||||||||
Summary_Of_Significant_Account1
Summary Of Significant Accounting Policies (Policy) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Summary Of Significant Accounting Policies [Abstract] | ' | ||||||||
Nature Of Business | ' | ||||||||
Nature of Business | |||||||||
CryoLife, Inc. (“CryoLife,” the “Company,” “we,” or “us”) develops, manufactures, and commercializes medical devices for cardiac and vascular applications and preserves and distributes human tissues for transplantation. CryoLife’s surgical sealants and hemostats include BioGlue® Surgical Adhesive (“BioGlue”), BioFoam® Surgical Matrix (“BioFoam”), and PerClot®, an absorbable powdered hemostat, which the Company distributes internationally for Starch Medical, Inc. (“SMI”). CryoLife’s subsidiary, Cardiogenesis Corporation (“Cardiogenesis”), specializes in the treatment of coronary artery disease using a laser console system and single use, fiber-optic handpieces to treat patients with severe angina. CryoLife and its subsidiary, Hemosphere, Inc. (“Hemosphere”), market the Hemodialysis Reliable Outflow Graft (“HeRO® Graft”), which is a solution for end-stage renal disease (“ESRD”) in certain hemodialysis patients. The cardiac and vascular human tissues distributed by CryoLife include the CryoValve® SG pulmonary heart valve (“CryoValve SGPV”) and the CryoPatch® SG pulmonary cardiac patch tissue (“CryoPatch SG”), both of which are processed using CryoLife’s proprietary SynerGraft® technology. | |||||||||
Principles Of Consolidation | ' | ||||||||
Principles of Consolidation | |||||||||
The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant inter-company accounts and transactions have been eliminated in consolidation. | |||||||||
Translation Of Foreign Currencies | ' | ||||||||
Translation of Foreign Currencies | |||||||||
The Company’s revenues and expenses transacted in foreign currencies are translated as they occur at exchange rates in effect at the time of each transaction. Realized gains and losses on foreign currency transactions are recorded as a component of other (income) expense, net on the Company’s Consolidated Statements of Operations and Comprehensive Income. Assets and liabilities of the Company denominated in foreign currencies are translated at the exchange rate in effect as of the balance sheet date and are recorded as a separate component of accumulated other comprehensive income (loss) in the shareholders' equity section of the Company’s Consolidated Balance Sheets. | |||||||||
Use Of Estimates | ' | ||||||||
Use of Estimates | |||||||||
The preparation of the accompanying consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Estimates and assumptions are used when accounting for investments, allowance for doubtful accounts, deferred preservation costs, acquired assets or businesses, long‑lived tangible and intangible assets, deferred income taxes, commitments and contingencies (including product and tissue processing liability claims, claims incurred but not reported, and amounts recoverable from insurance companies), stock based compensation, certain accrued liabilities (including accrued procurement fees, income taxes, and financial instruments), contingent consideration liability, and other items as appropriate. | |||||||||
Revenue Recognition | ' | ||||||||
Revenue Recognition | |||||||||
Revenues for products, including: BioGlue, BioFoam, PerClot, HemoStase, revascularization technologies handpieces and accessories, HeRO Grafts, and other medical devices, are recognized at the time the product is shipped, at which time title passes to the customer, and there are no further performance obligations. The Company recognizes revenues for preservation services when services are completed and tissue is shipped to the customer. Revenues from research grants are recognized in the period the associated costs are incurred. Revenues from upfront licensing agreements are recognized ratably over the period the Company expects to fulfill its obligations. | |||||||||
Revenues from the sale of laser consoles are considered multiple element arrangements, and such revenues are allocated to the elements of the sale. The Company allocates revenues based primarily on the revenue these individual elements would generate if sold separately. Revenues from domestic laser consoles sales are typically recognized when the laser is installed at a customer site and all materials for the laser console’s use are delivered. Revenues from the sales of laser consoles to international distributors are evaluated individually based on the terms of the sale and collectability to determine when revenue has been earned and can be recognized. | |||||||||
Shipping And Handling Charges | ' | ||||||||
Shipping and Handling Charges | |||||||||
Fees charged to customers for shipping and handling of products and tissues are included in product revenues and preservation services revenues, respectively. The costs for shipping and handling of products and tissues are included as a component of cost of products and cost of preservation services, respectively. | |||||||||
Advertising Costs | ' | ||||||||
Advertising Costs | |||||||||
The costs to develop, produce, and communicate the Company’s advertising are expensed as incurred and are classified as general, administrative, and marketing expenses. The Company records the cost to print or copy certain sales materials as a prepaid expense and amortizes these costs as an advertising expense over the period they are expected to be used, typically six months to one year. The total amount of advertising expense included in the Company’s Consolidated Statements of Operations and Comprehensive Income was $880,000, $1.5 million, and $948,000 for the years ended December 31, 2013, 2012, and 2011, respectively. | |||||||||
Stock-Based Compensation | ' | ||||||||
Stock‑Based Compensation | |||||||||
The Company has stock option and stock incentive plans for employees and non-employee Directors that provide for grants of restricted stock awards (“RSA”s), restricted stock units (“RSU”s), performance stock units (“PSU”s), and options to purchase shares of CryoLife common stock at exercise prices generally equal to the fair values of such stock at the dates of grant. The Company also maintains a shareholder approved Employee Stock Purchase Plan (the “ESPP”) for the benefit of its employees. The ESPP allows eligible employees the right to purchase common stock on a regular basis at the lower of 85% of the market price at the beginning or end of each offering period. The stock options, RSAs, RSUs, and PSUs granted by the Company typically vest over a one to three-year period. The stock options granted by the Company typically expire within seven years of the grant date. | |||||||||
The Company values its RSAs, RSUs, and PSUs based on the stock price on the date of grant. The Company expenses the related compensation cost of RSAs and RSUs using the straight-line method over the vesting period. The Company expenses the related compensation cost of PSUs based on the number of shares expected to be issued if achievement of the performance component is probable using a straight-line method over each vesting tranche of the award. The amount of compensation costs expensed related to PSUs is adjusted as needed if the Company deems that achievement of the performance component is no longer probable, or if the Company’s expectation of the number of shares to be issued changes. The Company uses a Black-Scholes model to value its stock option grants and expenses the related compensation cost using the straight-line method over the vesting period. The fair value of the Company’s ESPP options is also determined using a Black-Scholes model and is expensed over the vesting period. The period expense is then determined based on this valuation and, at that time, an estimated forfeiture rate is used to reduce the expense recorded. The Company’s estimate of pre-vesting forfeitures is primarily based on the recent historical experience of the Company and is adjusted to reflect actual forfeitures at each vesting date. | |||||||||
The fair value of stock options and ESPP options is determined on the grant date using assumptions for the expected term, volatility, dividend yield, and the risk-free interest rate. The expected term is primarily based on the contractual term of the option and Company data related to historic exercise and post-vesting forfeiture patterns, which is adjusted based on management’s expectations of future results. The Company’s anticipated volatility level is primarily based on the historic volatility of the Company’s common stock, adjusted to remove the effects of certain periods of unusual volatility not expected to recur, and adjusted based on management’s expectations of future volatility, for the life of the option or option group. The Company’s model included a zero dividend yield assumption in the periods prior to the Company’s initiation of a quarterly dividend in the third quarter of 2012. The risk-free interest rate is based on recent U.S. Treasury note auction results with a similar life to that of the option. The Company’s model does not include a discount for post-vesting restrictions, as the Company has not issued awards with such restrictions. | |||||||||
Income Per Common Share | ' | ||||||||
Income Per Common Share | |||||||||
Income per common share is computed using the two class method, which requires the Company to include unvested RSAs that contain non-forfeitable rights to dividends (whether paid or unpaid) as participating securities in the income per common share calculation. | |||||||||
Under the two class method, net income is allocated to the weighted-average number of common shares outstanding during the period and the weighted-average participating securities outstanding during the period. The portion of net income that is allocated to the participating securities is excluded from basic and dilutive net income per common share. Diluted net income per share is computed using the weighted-average number of common shares outstanding plus the dilutive effects of outstanding stock options and awards and other dilutive instruments as appropriate. | |||||||||
Dividends | ' | ||||||||
Dividends | |||||||||
During 2012 the Company announced that its Board of Directors had approved the initiation of a quarterly cash dividend of $0.025 per share of common stock outstanding. In 2013 the Company announced that its Board of Directors approved a 10% increase in the quarterly cash dividend beginning in the second quarter of 2013 to $0.0275 per share of common stock outstanding. The Company currently anticipates paying the quarterly dividends in March, June, September, and December of each year from cash on hand and will record the dividend payment as a reduction to retained earnings on the Company’s Consolidated Balance Sheets. | |||||||||
Financial Instruments | ' | ||||||||
Financial Instruments | |||||||||
The Company’s financial instruments include cash equivalents, marketable securities, restricted securities, accounts receivable, notes receivable, accounts payable, and contingent consideration. The Company typically values financial assets and liabilities such as receivables, accounts payable, and debt obligations at their carrying values, which approximate fair value due to their generally short-term duration. Other financial instruments are typically recorded as discussed in the sections below. | |||||||||
Fair Value Measurements | ' | ||||||||
Fair Value Measurements | |||||||||
The Company records certain financial instruments at fair value, including: cash equivalents, certain marketable securities, certain restricted securities, contingent consideration, and derivative instruments. The Company may make an irrevocable election to measure other financial instruments at fair value on an instrument-by-instrument basis; although as of December 31, 2013 the Company has not chosen to make any such elections. Fair value financial instruments are recorded in accordance with the fair value measurement framework. | |||||||||
The Company also measures certain non-financial assets at fair value on a non-recurring basis. These non-recurring valuations include evaluating assets such as cost method investments, long‑lived assets, and non-amortizing intangible assets for impairment; allocating value to assets in an acquired asset group; and applying accounting for business combinations. The Company uses the fair value measurement framework to value these assets and reports these fair values in the periods in which they are recorded or written down. | |||||||||
The fair value measurement framework includes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair values in their broad levels. These levels from highest to lowest priority are as follows: | |||||||||
· | Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities; | ||||||||
· | Level 2: Quoted prices in active markets for similar assets or liabilities or observable prices that are based on inputs not quoted on active markets, but corroborated by market data; and | ||||||||
· | Level 3: Unobservable inputs or valuation techniques that are used when little or no market data is available. | ||||||||
The determination of fair value and the assessment of a measurement’s placement within the hierarchy requires judgment. Level 3 valuations often involve a higher degree of judgment and complexity. Level 3 valuations may require the use of various cost, market, or income valuation methodologies applied to unobservable management estimates and assumptions. Management’s assumptions could vary depending on the asset or liability valued and the valuation method used. Such assumptions could include: estimates of prices, earnings, costs, actions of market participants, market factors, or the weighting of various valuation methods. The Company may also engage external advisors to assist in determining fair value, as appropriate. | |||||||||
Although the Company believes that the recorded fair value of its financial instruments is appropriate, these fair values may not be indicative of net realizable value or reflective of future fair values. | |||||||||
Cash And Cash Equivalents | ' | ||||||||
Cash and Cash Equivalents | |||||||||
Cash equivalents consist primarily of highly liquid investments with maturity dates of three months or less at the time of acquisition. The carrying value of cash equivalents approximates fair value. | |||||||||
In 2012 the Company’s cash equivalents included advance funding received from the U.S. Department of Defense (“DOD”) for the development of protein hydrogel technology. The advance funding was accounted for as deferred income on the Company’s December 31, 2012 Consolidated Balance Sheet and revenue was recognized as expenses were incurred related to these grants. The Company discontinued its BioFoam U.S. clinical trial and returned all of the remaining unspent funds to the DOD in the second quarter of 2013. | |||||||||
Cash Flow Supplemental Disclosures | |||||||||
Supplemental disclosures of cash flow information for the years ended December 31 (in thousands): | |||||||||
2013 | 2012 | 2011 | |||||||
Cash paid during the year for: | |||||||||
Interest | $ | 3 | $ | 22 | $ | 89 | |||
Income taxes | 5,693 | 1,263 | 3,564 | ||||||
Marketable Securities And Other Investments | ' | ||||||||
Marketable Securities and Other Investments | |||||||||
The Company typically invests its excess cash for short-term periods in large, well‑capitalized financial institutions, and the Company's policy excludes investment in any securities rated less than "investment‑grade" by national rating services, unless specifically approved by the Board of Directors. The Company sometimes makes longer term strategic investments in medical device companies, and these investments must be approved by the Board of Directors. | |||||||||
The Company determines the classification of its investments as trading, available-for-sale, or held-to-maturity at the time of purchase and reevaluates such designations quarterly. Trading securities are securities that are acquired principally for the purpose of generating a profit from short-term fluctuations in price. Debt securities are classified as held‑to‑maturity when the Company has the intent and ability to hold the securities to maturity. Any securities not designated as trading or held‑to‑maturity are considered available-for-sale. The Company typically states its investments at their fair values; however, for held‑to‑maturity securities or when current fair value information is not readily available, investments are recorded using the cost method. The cost of securities sold is based on the specific identification method. | |||||||||
Under the fair value method, the Company adjusts each investment to its market price and records the unrealized gains or losses in other (income) expense, net for trading securities, or accumulated other comprehensive income (loss), for available-for-sale securities. Interest, dividends, realized gains and losses, and declines in value judged to be other than temporary are included in other (income) expense, net. Under the cost method, each investment is recorded at cost. Subsequent dividends received are recognized as income, and the investment is reviewed for impairment if factors indicate that a decrease in the value of the investment has occurred. | |||||||||
Accounts Receivable And Allowance For Doubtful Accounts | ' | ||||||||
Accounts Receivable and Allowance for Doubtful Accounts | |||||||||
The Company’s accounts receivable are primarily from hospitals and distributors that either use or distribute the Company’s products and tissues. The Company assesses the likelihood of collection based on a number of factors, including past transaction history with the customer and the credit worthiness of the customer, as well as the increased risks related to international customers and large distributors. The accounts receivable balances were reported net of allowance for doubtful accounts of $356,000 and $528,000 as of December 31, 2013 and 2012 respectively. | |||||||||
Deferred Preservation Costs | ' | ||||||||
Deferred Preservation Costs | |||||||||
By federal law, human tissues cannot be bought or sold, therefore, the tissues the Company preserves are not held as inventory. The costs the Company incurs to procure and process cardiac and vascular tissues are instead accumulated and deferred. Deferred preservation costs are stated at the lower of cost or market value on a first‑in, first‑out basis and are deferred until revenue is recognized. At each balance sheet date, deferred preservation costs includes costs of tissues available for shipment, tissues currently in active processing, and tissues held in quarantine pending release to implantable status. | |||||||||
Upon shipment of the tissue to an implanting facility, revenue is recognized and the related deferred preservation costs are expensed as cost of preservation services. Cost of preservation services also includes, as applicable, lower of cost or market write-downs and impairments for tissues not deemed to be recoverable, and includes, as incurred, idle facility expense, excessive spoilage, extra freight, and rehandling costs. | |||||||||
The calculation of deferred preservation costs involves judgment and complexity and uses the same principles as inventory costing. Donated human tissue is procured from deceased human donors by organ and tissue procurement organizations (“OTPOs”), which consign the tissue to the Company for processing, preservation, and distribution. Deferred preservation costs consist primarily of the procurement fees charged by the OTPOs, direct labor and materials (including salary and fringe benefits, laboratory supplies and expenses, and freight‑in charges), and indirect costs (including allocations of costs from support departments and facility allocations). Fixed production overhead costs are allocated based on actual tissue processing levels, to the extent that they are within the range of the facility’s normal capacity. | |||||||||
These costs are then allocated among the tissues processed during the period based on cost drivers, such as the number of donors or number of tissues processed. The Company applies a yield estimate to all tissues in process and in quarantine to estimate the portion of tissues that will ultimately become implantable. Management estimates quarantine yields based on its experience and reevaluates these estimates periodically. Actual yields could differ significantly from the Company’s estimates, which could result in a change in tissues available for shipment, and could increase or decrease the balance of deferred preservation costs. These changes could result in additional cost of preservation services expense or could increase per tissue preservation costs, which would impact gross margins on tissue preservation services in future periods. | |||||||||
The Company regularly evaluates its deferred preservation costs to determine if the costs are appropriately recorded at the lower of cost or market value. The Company also evaluates its deferred preservation costs for costs not deemed to be recoverable, including tissues not expected to ship prior to the expiration date of their packaging. Lower of cost or market value write-downs are recorded if the tissue processing costs incurred exceed the estimated market value of the tissue services, based on recent average service fees at the time of the evaluation. Impairment write-downs are recorded based on the book value of tissues deemed to be impaired. Actual results may differ from these estimates. Write-downs of deferred preservation costs are expensed as cost of preservation services, and these write-downs are permanent impairments that create a new cost basis, which cannot be restored to its previous levels if the Company’s estimates change. | |||||||||
The Company recorded write-downs to its deferred preservation costs totaling $448,000, $195,000, and $270,000 for the years ended December 31, 2013, 2012, and 2011, respectively. | |||||||||
Inventories | ' | ||||||||
Inventories | |||||||||
Inventories are valued at the lower of cost or market on a first‑in, first‑out basis and the costs are recognized as cost of products upon shipment of the product. Inventories are comprised of BioGlue; BioFoam; PerClot; revascularization technologies lasers, handpieces, and accessories; HeRO Grafts; other medical devices; supplies; and raw materials. Cost of products also includes, as incurred, idle facility expense, excessive spoilage, extra freight, and rehandling costs. | |||||||||
Inventory costs for manufactured products consist primarily of direct labor and materials (including salary and fringe benefits, raw materials, and supplies) and indirect costs (including allocations of costs from departments that support manufacturing activities and facility allocations). The allocation of fixed production overhead costs is based on actual production levels, to the extent that they are within the range of the facility’s normal capacity. Inventory costs for products purchased for resale or contract manufactured consist primarily of the purchase cost, freight-in charges, and indirect costs as appropriate. | |||||||||
The Company regularly evaluates its inventory to determine if the costs are appropriately recorded at the lower of cost or market value. The Company also evaluates its inventory for costs not deemed to be recoverable, including inventory not expected to ship prior to its expiration. Lower of cost or market value write-downs are recorded if the book value exceeds the estimated market value of the inventory, based on recent sales prices at the time of the evaluation. Impairment write-downs are recorded based on the book value of inventory deemed to be impaired. Actual results may differ from these estimates. Write-downs of inventory are expensed as cost of products, and these write-downs are permanent impairments that create a new cost basis, which cannot be restored to its previous levels if the Company’s estimates change. | |||||||||
The Company recorded write-downs to its inventory totaling $1.2 million, $77,000, and zero for the years ended December 31, 2013, 2012, and 2011, respectively. The 2013 write-down includes $684,000 in additional contractual costs and inventory impairment costs, primarily related to a BioGlue accessory product, and $483,000 in additional costs for revascularization technologies handpieces that were made obsolete by the Company’s decision to exclusively distribute the new handpiece design, which was approved by the U.S. Food and Drug Administration (“FDA”) in June 2013. | |||||||||
Property And Equipment | ' | ||||||||
Property and Equipment | |||||||||
Property and equipment is stated at cost. Depreciation is provided over the estimated useful lives of the assets, generally three to ten years, on a straight‑line basis. Leasehold improvements are amortized on a straight‑line basis over the remaining lease term at the time the assets are capitalized or the estimated useful lives of the assets, whichever is shorter. | |||||||||
Depreciation expense for the years ended December 31 is as follows (in thousands): | |||||||||
2013 | 2012 | 2011 | |||||||
Depreciation expense | $ | 3,837 | $ | 3,662 | $ | 3,590 | |||
Goodwill And Other Intangible Assets | ' | ||||||||
Goodwill and Other Intangible Assets | |||||||||
The Company’s intangible assets consist of goodwill, patents, trademarks, and other intangible assets, as discussed in Note 9. These assets include intangible assets from the acquisition of Hemosphere, as discussed in Note 4, and assets acquired from Cardiogenesis, as discussed in Note 6. | |||||||||
The Company amortizes its definite lived intangible assets over their expected useful lives using the straight-line method, which the Company believes approximates the period of economic benefits of the related assets. The Company’s indefinite lived intangible assets do not amortize, but are instead subject to periodic impairment testing as discussed in “Impairments of Long-Lived Assets and Non-Amortizing Intangible Assets” below. | |||||||||
Impairments Of Long-Lived Assets And Non-Amortizing Intangible Assets | ' | ||||||||
Impairments of Long‑Lived Assets and Non-Amortizing Intangible Assets | |||||||||
The Company assesses the potential impairment of its long-lived assets to be held and used whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors that could trigger an impairment review include, but are not limited to, the following: | |||||||||
· | Significant underperformance relative to expected historical or projected future operating results, | ||||||||
· | Significant negative industry or economic trends, | ||||||||
· | Significant decline in the Company’s stock price for a sustained period, or | ||||||||
· | Significant decline in the Company’s market capitalization relative to net book value. | ||||||||
If CryoLife determines that an impairment review is necessary, the Company will evaluate its assets or asset groups by comparing their carrying values to the sum of the undiscounted future cash flows expected to result from their use and eventual disposition. If the carrying values exceed the future cash flows, then the asset or asset group is considered impaired, and the Company will write down the value of the asset or asset group. For the years ended December 31, 2013, 2012, and 2011 the Company did not experience any factors that indicated that an impairment review of its long-lived assets was warranted. | |||||||||
CryoLife evaluates its goodwill and other non-amortizing intangible assets for impairment on an annual basis as of October 31 and, if necessary, during interim periods if factors indicate that an impairment review is warranted. As of October 31, 2013 the Company’s non-amortizing intangible assets consisted of goodwill, acquired procurement contracts and agreements, trademarks, and other acquired technology. The Company performed an analysis of its non-amortizing intangible assets as of October 31, 2013 and 2012, and determined that the fair value of the assets and the fair value of the reporting unit exceeded their associated carrying values and were, therefore, not impaired. Management will continue to evaluate the recoverability of these non-amortizing intangible assets. | |||||||||
Accrued Procurement Fees | ' | ||||||||
Accrued Procurement Fees | |||||||||
Donated tissue is procured from deceased human donors by OTPOs, which consign the tissue to the Company for processing, preservation, and distribution. The Company reimburses the OTPOs for their costs to recover the tissue and passes these costs on to the customer when the tissue is shipped and the performance of the service is complete. The Company accrues estimated procurement fees due to the OTPOs at the time tissues are received based on contractual agreements between the Company and the OTPOs. | |||||||||
Leases | ' | ||||||||
Leases | |||||||||
The Company has operating lease obligations resulting from the lease of land and buildings that comprise the Company's corporate headquarters and manufacturing facilities, leases related to additional manufacturing, office, and warehouse space, leases on Company vehicles, and leases on a variety of office equipment as discussed in Note 12. Certain of the Company’s leases contain escalation clauses, rent concessions, and renewal options for additional periods. Rent expense is computed on the straight‑line method over the lease term and the related liability is recorded as deferred rent obligations on the Company’s Consolidated Balance Sheets. | |||||||||
Liability Claims | ' | ||||||||
Liability Claims | |||||||||
In the normal course of business, the Company is made aware of adverse events involving its products and tissues. Any adverse event could ultimately give rise to a lawsuit against the Company. In addition, product and tissue processing liability claims may be asserted against the Company in the future based on events it is not aware of at the present time. The Company maintains claims‑made insurance policies to mitigate its financial exposure to product and tissue processing liability claims. Claims‑made insurance policies generally cover only those asserted claims and incidents that are reported to the insurance carrier while the policy is in effect. Thus, a claims‑made policy does not generally represent a transfer of risk for claims and incidents that have been incurred but not reported to the insurance carrier during the policy period. Any punitive damage components of claims are uninsured. | |||||||||
The Company engages external advisors to assist it in estimating its liability and any related recoverable under the Company's insurance policies as of each balance sheet date. The Company uses a frequency‑severity approach to estimate its unreported product and tissue processing liability claims, whereby, projected losses are calculated by multiplying the estimated number of claims by the estimated average cost per claim. The estimated claims are determined based on the reported claim development method and the Bornhuetter‑Ferguson method using a blend of the Company's historical claim experience and industry data. The estimated cost per claim is calculated using a lognormal claims model blending the Company's historical average cost per claim with industry claims data. The Company uses a number of assumptions in order to estimate the unreported loss liability including: the future claim reporting time lag, the frequency of reported claims, the average cost per claim, and the maximum liability per claim. The Company believes that the assumptions it uses provide a reasonable basis for its calculation. However, the accuracy of the estimates is limited by the general uncertainty that exists for any estimate of future activity due to uncertainties surrounding the assumptions used and due to Company specific conditions and the scarcity of industry data directly relevant to the Company's business activities. Due to these factors, actual results may differ significantly from the assumptions used and amounts accrued. | |||||||||
The Company accrues its estimate of unreported product and tissue processing liability claims as components of accrued expenses and other long‑term liabilities and records the related recoverable insurance amounts as a component of receivables and other long‑term assets. The amounts recorded represent management's estimate of the probable losses and anticipated recoveries for unreported claims related to products sold and services performed prior to the balance sheet date. | |||||||||
Legal Contingencies | ' | ||||||||
Legal Contingencies | |||||||||
The Company accrues losses from a legal contingency when the loss is both probable and reasonably estimable. The accuracy of the Company’s estimates of losses for legal contingencies is limited by uncertainties surrounding litigation. Therefore, actual results may differ significantly from the amounts accrued, if any. The Company accrues for legal contingencies as a component of accrued expenses and other long‑term liabilities. Gains from legal contingencies are recorded when the contingency is resolved. | |||||||||
Legal Fees | ' | ||||||||
Legal Fees | |||||||||
The Company expenses the costs of legal services, including legal services related to product and tissue processing liability claims and legal contingencies, as they are incurred. Reimbursement of legal fees by an insurance company or other third-party is recorded as a reduction to legal expense. | |||||||||
Uncertain Tax Positions | ' | ||||||||
Uncertain Tax Positions | |||||||||
The Company periodically assesses its uncertain tax positions and recognizes tax benefits if they are “more-likely-than-not” to be upheld upon review by the appropriate taxing authority. The Company measures the tax benefit by determining the maximum amount that has a “greater than 50 percent likelihood” of ultimately being realized. The Company reverses previously accrued liabilities for uncertain tax positions when audits are concluded, statutes expire, administrative practices dictate that a liability is no longer warranted, or in other circumstances as deemed necessary. These assessments can be complex and the Company often obtains assistance from external advisors to make these assessments. The Company recognizes interest and penalties related to uncertain tax positions in other (income) expense, net on its Consolidated Statements of Operations and Comprehensive Income. See Note 10 for further discussion of the Company’s liabilities for uncertain tax positions. | |||||||||
Deferred Income Taxes | ' | ||||||||
Deferred Income Taxes | |||||||||
Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and tax return purposes. The Company periodically assesses the recoverability of its deferred tax assets, as necessary, when the Company experiences changes that could materially affect its determination of the recoverability of its deferred tax assets. Management provides a valuation allowance against the deferred tax asset when, as a result of this analysis, management believes it is more likely than not that some portion or all of its deferred tax assets will not be realized. | |||||||||
Assessing the recoverability of deferred tax assets involves judgment and complexity. Estimates and judgments used in the determination of the need for a valuation allowance and in calculating the amount of a needed valuation allowance include, but are not limited to, the following: | |||||||||
· | Projected future operating results, | ||||||||
· | Anticipated future state tax apportionment, | ||||||||
· | Timing and amounts of anticipated future taxable income, | ||||||||
· | Timing of the anticipated reversal of book/tax temporary differences, | ||||||||
· | Evaluation of statutory limits regarding usage of certain tax assets, and | ||||||||
· | Evaluation of the statutory periods over which certain tax assets can be utilized. | ||||||||
Significant changes in the factors above, or other factors, could materially, adversely affect the Company’s ability to use its deferred tax assets. Such changes could have a material, adverse impact on the Company’s operations, financial condition, and cash flows. The Company will continue to assess the recoverability of its deferred tax assets, as necessary, when the Company experiences changes that could materially affect its prior determination of the recoverability of its deferred tax assets. | |||||||||
The Company believes that the realizability of its acquired net operating loss carryforwards will be limited in future periods due to a change in control of its subsidiaries Hemosphere and Cardiogenesis, as mandated by Section 382 of the Internal Revenue Code of 1986, as amended. The Company believes that its acquisition of Hemosphere constituted a change in control and that prior to the Company’s acquisition, Hemosphere had experienced other equity ownership changes that should be considered a change in control. The Company also believes that its acquisition of Cardiogenesis constituted a change in control. The deferred tax assets recorded on the Company’s Consolidated Balance Sheets do not include amounts that it expects will not be realizable due to these changes in control. A portion of the acquired net operating loss carryforwards is related to state income taxes for which management believes it is more likely than not that these deferred tax assets will not be realized. Therefore, the Company recorded a valuation allowance against these state net operating loss carryforwards. | |||||||||
Valuation Of Acquired Assets Or Businesses | ' | ||||||||
Valuation of Acquired Assets or Businesses | |||||||||
As part of its corporate strategy, the Company is seeking to identify and evaluate acquisition opportunities of complementary product lines and companies. The Company evaluates and accounts for acquired patents, licenses, distribution rights, and other tangible or intangible assets as the purchase of an asset or asset group, or as a business combination, as appropriate. The determination of whether the purchase of a group of assets should be accounted for as an asset group or as a business combination requires significant judgment based on the weight of available evidence. | |||||||||
For the purchase of an asset group, the Company allocates the cost of the asset group, including transaction costs, to the individual assets purchased based on their relative estimated fair values. In-process research and development acquired as part of an asset group is expensed upon acquisition. The Company accounts for business combinations by allocating the purchase price to the assets and liabilities acquired at their estimated fair value. Transaction costs related to a business combination are expensed as incurred. In-process research and development acquired as part of a business combination is accounted for as an indefinite-lived intangible asset until the related research and development project gains regulatory approval or is discontinued. | |||||||||
The Company typically engages external advisors to assist it in determining the fair value of acquired asset groups or business combinations, using valuation methodologies such as: the excess earnings, the discounted cash flow, or the relief from royalty methods. The determination of fair value in accordance with the fair value measurement framework requires significant judgments and estimates, including, but not limited to: timing of product life cycles, estimates of future revenues, estimates of profitability for new or acquired products, cost estimates for new or changed manufacturing processes, estimates of the cost or timing of obtaining regulatory approvals, estimates of the success of competitive products, and discount rates. Management, in consultation with its advisor(s), makes these estimates based on its prior experiences and industry knowledge. Management believes that its estimates are reasonable, but actual results could differ significantly from the Company’s estimates. A significant change in management’s estimates used to value acquired asset groups or business combinations could result in future write-downs of tangible or intangible assets acquired by the Company and, therefore, could materially impact the Company’s financial position and profitability. If the value of the liabilities assumed by the Company, including contingent liabilities, is determined to be significantly different from the amounts previously recorded in purchase accounting, the Company may need to record additional expenses or write-downs in future periods, which could materially impact the Company’s financial position and profitability. | |||||||||
Derivative Instruments | ' | ||||||||
Derivative Instruments | |||||||||
The Company determines the fair value of its stand-alone and embedded derivative instruments at issuance and records any resulting asset or liability on the Company’s Consolidated Balance Sheets. Changes in the fair value of the derivative instruments are recognized in the line item change in valuation of derivative on the Company’s Consolidated Statements of Operations and Comprehensive Income. | |||||||||
New Accounting Pronouncements | ' | ||||||||
New Accounting Pronouncements | |||||||||
In January 2013 the Company adopted Accounting Standards Update ("ASU"), 2012-02, Intangibles-Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment, which gives entities testing indefinite-lived intangible assets for impairment the option of performing a qualitative assessment before performing the quantitative impairment test as well as the option to bypass the qualitative assessment in any period and proceed directly to performing the quantitative impairment test. The adoption of ASU 2012-02 did not have a material effect on the Company's financial condition, profitability, or cash flows. | |||||||||
In February 2013 the Company adopted ASU 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which requires separate presentation of the components that are reclassified out of accumulated other comprehensive income either on the face of the financial statements or in the notes to the financial statements. This update also requires companies to disclose the income statement line items affected by any significant reclassifications. The adoption of ASU 2013-02 did not have a material effect on the Company's financial disclosures. | |||||||||
Summary_Of_Significant_Account2
Summary Of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Summary Of Significant Accounting Policies [Abstract] | ' | ||||||||
Schedule Of Supplemental Disclosures Of Cash Flow Information | ' | ||||||||
2013 | 2012 | 2011 | |||||||
Cash paid during the year for: | |||||||||
Interest | $ | 3 | $ | 22 | $ | 89 | |||
Income taxes | 5,693 | 1,263 | 3,564 | ||||||
Schedule Of Depreciation Expense | ' | ||||||||
2013 | 2012 | 2011 | |||||||
Depreciation expense | $ | 3,837 | $ | 3,662 | $ | 3,590 | |||
Financial_Instruments_Tables
Financial Instruments (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Financial Instruments [Abstract] | ' | |||||||||||
Summary Of Financial Instruments Measured At Fair Value | ' | |||||||||||
31-Dec-13 | Level 1 | Level 2 | Level 3 | Total | ||||||||
Cash equivalents: | ||||||||||||
Money market funds | $ | 5,349 | $ | -- | $ | -- | $ | 5,349 | ||||
Certificates of deposit | 749 | -- | -- | 749 | ||||||||
Restricted securities: | ||||||||||||
Money market funds | 350 | -- | -- | 350 | ||||||||
Total assets | $ | 6,448 | $ | -- | $ | -- | $ | 6,448 | ||||
Long-term liabilities: | ||||||||||||
Contingent consideration | $ | -- | $ | -- | $ | -1,884 | $ | -1,884 | ||||
Total liabilities | $ | -- | $ | -- | $ | -1,884 | $ | -1,884 | ||||
31-Dec-12 | Level 1 | Level 2 | Level 3 | Total | ||||||||
Cash equivalents: | ||||||||||||
Money market funds | $ | 1,319 | $ | -- | $ | -- | $ | 1,319 | ||||
Restricted securities: | ||||||||||||
Money market funds | 323 | -- | -- | 323 | ||||||||
Total assets | $ | 1,642 | $ | -- | $ | -- | $ | 1,642 | ||||
Long-term liabilities: | ||||||||||||
Contingent consideration | $ | -- | $ | -- | $ | -1,912 | $ | -1,912 | ||||
Total liabilities | $ | -- | $ | -- | $ | -1,912 | $ | -1,912 | ||||
Reconciliation Of Changes In Fair Value Of Level 3 Liabilities | ' | |||||||||||
Contingent Consideration | ||||||||||||
Balance as of December 31, 2012 | $ | 1,912 | ||||||||||
Gain on remeasurement of contingent consideration | -28 | |||||||||||
Balance as of December 31, 2013 | $ | 1,884 | ||||||||||
Cash_Equivalents_And_Restricte1
Cash Equivalents And Restricted Cash And Securities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Cash Equivalents And Restricted Cash And Securities [Abstract] | ' | ||||||||
Summary Of Cash Equivalents And Marketable Securities | ' | ||||||||
Unrealized | Estimated | ||||||||
Holding | Market | ||||||||
31-Dec-13 | Cost Basis | Gains (Losses) | Value | ||||||
Cash equivalents: | |||||||||
Money market funds | $ | 5,349 | $ | -- | $ | 5,349 | |||
Certificates of deposit | 749 | -- | 749 | ||||||
Restricted cash and securities: | |||||||||
Cash | 5,000 | -- | 5,000 | ||||||
Money market funds | 350 | -- | 350 | ||||||
31-Dec-12 | |||||||||
Cash equivalents: | |||||||||
Money market funds | $ | 1,319 | $ | -- | $ | 1,319 | |||
Restricted securities: | |||||||||
Cash | 5,000 | -- | 5,000 | ||||||
Money market funds | 323 | -- | 323 | ||||||
Hemosphere_Acquisition_Tables
Hemosphere Acquisition (Tables) (Hemosphere [Member]) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Hemosphere [Member] | ' | |||||
Business Acquisition [Line Items] | ' | |||||
Business Acquisition Purchase Price Allocation | ' | |||||
Opening | ||||||
Balance Sheet | ||||||
Cash and cash equivalents | $ | 3,155 | ||||
Receivables | 653 | |||||
Inventories | 554 | |||||
Intangible assets | 5,790 | |||||
Goodwill | 7,145 | |||||
Deferred tax assets, net | 5,379 | |||||
Other assets | 331 | |||||
Liabilities assumed | -972 | |||||
Total purchase price | $ | 22,035 | ||||
Summary Of Unaudited Pro Forma Results Of Operations | ' | |||||
Twelve Months Ended | ||||||
December 31, | ||||||
2012 | 2011 | |||||
Total revenues | $ | 133,722 | $ | 124,877 | ||
Net income | 8,758 | 3,205 | ||||
Pro forma income per common share - basic | $ | 0.32 | $ | 0.11 | ||
Pro forma income per common share - diluted | $ | 0.31 | $ | 0.11 | ||
Cardiogenesis_Acquisition_Tabl
Cardiogenesis Acquisition (Tables) (Cardiogenesis [Member]) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Cardiogenesis [Member] | ' | ||||
Business Acquisition [Line Items] | ' | ||||
Business Acquisition Purchase Price Allocation | ' | ||||
Opening | |||||
Balance Sheet | |||||
Cash and cash equivalents | $ | 650 | |||
Receivables | 1,055 | ||||
Inventory | 852 | ||||
Property and equipment | 248 | ||||
Intangible assets | 11,900 | ||||
Goodwill | 4,220 | ||||
Net deferred tax assets | 5,002 | ||||
Other assets | 230 | ||||
Liabilities assumed | -2,445 | ||||
Total purchase price | $ | 21,712 | |||
Summary Of Unaudited Pro Forma Results Of Operations | ' | ||||
2011 | |||||
Total revenues | $ | 123,951 | |||
Net income | 7,962 | ||||
Deferred_Preservation_Costs_An1
Deferred Preservation Costs And Inventories (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Deferred Preservation Costs And Inventories [Abstract] | ' | |||||
Schedule Of Deferred Preservation Costs | ' | |||||
2013 | 2012 | |||||
Cardiac tissues | $ | 12,239 | $ | 11,950 | ||
Vascular tissues | 15,058 | 16,004 | ||||
Total deferred preservation costs | $ | 27,297 | $ | 27,954 | ||
Schedule Of Inventories | ' | |||||
2013 | 2012 | |||||
Raw materials and supplies | $ | 5,706 | $ | 5,836 | ||
Work-in-process | 767 | 830 | ||||
Finished goods | 3,298 | 3,891 | ||||
Total inventories | $ | 9,771 | $ | 10,557 | ||
Goodwill_And_Other_Intangible_1
Goodwill And Other Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Goodwill And Other Intangible Assets [Abstract] | ' | |||||||||||||||||
Schedule Of Carrying Values Of Indefinite Lived Intangible Assets | ' | |||||||||||||||||
2013 | 2012 | |||||||||||||||||
Goodwill | $ | 11,365 | $ | 11,365 | ||||||||||||||
Procurement contracts and agreements | 2,013 | 2,013 | ||||||||||||||||
Trademarks | 841 | 870 | ||||||||||||||||
Other | -- | 250 | ||||||||||||||||
Schedule Of Goodwill By Reportable Segment | ' | |||||||||||||||||
2013 | 2012 | |||||||||||||||||
Balance as of January 1, | $ | 11,365 | $ | 4,220 | ||||||||||||||
Goodwill from Hemosphere acquisition | -- | 7,145 | ||||||||||||||||
Balance as of December 31, | $ | 11,365 | $ | 11,365 | ||||||||||||||
Schedule Of Gross Carrying Values, Accumulated Amortization, And Approximate Amortization Periods Of Definite Lived Intangible Assets | ' | |||||||||||||||||
Gross Carrying | Accumulated | Amortization | ||||||||||||||||
31-Dec-13 | Value | Amortization | Period | |||||||||||||||
Acquired technology | $ | 14,020 | $ | 2,677 | 16-Nov | Years | ||||||||||||
Patents | 4,348 | 2,414 | 17 | Years | ||||||||||||||
Distribution and manufacturing rights and know-how | 3,559 | 714 | 15 | Years | ||||||||||||||
Customer lists and relationships | 3,370 | 572 | 13-17 | Years | ||||||||||||||
Non-compete agreement | 381 | 267 | 10 | Years | ||||||||||||||
Other | 202 | 171 | 3-Jan | Years | ||||||||||||||
Gross Carrying | Accumulated | Amortization | ||||||||||||||||
31-Dec-12 | Value | Amortization | Period | |||||||||||||||
Acquired technology | $ | 14,020 | $ | 1,538 | 16-Nov | Years | ||||||||||||
Patents | 4,644 | 2,530 | 17 | Years | ||||||||||||||
Distribution and manufacturing rights and know-how | 3,559 | 473 | 15 | Years | ||||||||||||||
Customer lists and relationships | 3,370 | 330 | 13-17 | Years | ||||||||||||||
Non-compete agreement | 381 | 229 | 10 | Years | ||||||||||||||
Other | 198 | 123 | 3-Jan | Years | ||||||||||||||
Summary Of Amortization Expense | ' | |||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||
Amortization expense | $ | 2,006 | $ | 1,971 | $ | 1,370 | ||||||||||||
Scheduled Amortization Of Intangible Assets For Next Five Years | ' | |||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Total | |||||||||||||
Amortization expense | $ | 1,948 | $ | 1,905 | $ | 1,898 | $ | 1,850 | $ | 1,844 | $ | 9,445 | ||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Taxes [Abstract] | ' | ||||||||
Schedule Of Income Before Income Tax | ' | ||||||||
2013 | 2012 | 2011 | |||||||
Domestic | $ | 23,004 | $ | 11,686 | $ | 11,238 | |||
Foreign | 288 | 366 | 228 | ||||||
Income before income taxes | $ | 23,292 | $ | 12,052 | $ | 11,466 | |||
Schedule Of Components Of Income Tax Expense | ' | ||||||||
2013 | 2012 | 2011 | |||||||
Current: | |||||||||
Federal | $ | 6,304 | $ | 2,778 | $ | 2,634 | |||
State | 396 | 180 | 103 | ||||||
Foreign | 96 | 98 | 84 | ||||||
6,796 | 3,056 | 2,821 | |||||||
Deferred: | |||||||||
Federal | 1,142 | 1,274 | 1,087 | ||||||
State | -818 | -227 | 183 | ||||||
Foreign | - | 3 | 4 | ||||||
324 | 1,050 | 1,274 | |||||||
Income tax expense | $ | 7,120 | $ | 4,106 | $ | 4,095 | |||
Schedule Of Effective Income Tax Rate Reconciliation | ' | ||||||||
2013 | 2012 | 2011 | |||||||
Tax expense at statutory rate | $ | 8,152 | $ | 4,220 | $ | 4,013 | |||
Increase (reduction) in income taxes resulting from: | |||||||||
Non-deductible transaction costs | -- | 151 | 540 | ||||||
State income taxes, net of federal benefit | 183 | 296 | 150 | ||||||
State valuation allowance adjustment | -760 | -427 | 100 | ||||||
Equity compensation | -29 | 32 | 149 | ||||||
Non-deductible entertainment expenses | 207 | 188 | 142 | ||||||
Foreign income taxes | 96 | -199 | 3 | ||||||
Domestic production activities deduction | -402 | -407 | -727 | ||||||
Research and development credit | -392 | -- | -314 | ||||||
Other | 65 | 252 | 39 | ||||||
$ | 7,120 | $ | 4,106 | $ | 4,095 | ||||
Schedule Of Deferred Tax Assets And Liabilities | ' | ||||||||
2013 | 2012 | ||||||||
Deferred tax assets: | |||||||||
Allowance for bad debts | $ | 131 | $ | 194 | |||||
Deferred preservation costs and inventory write-downs | 1,077 | 392 | |||||||
Investment in equity securities | 1,959 | 925 | |||||||
Property | 2,737 | 2,644 | |||||||
Intangible assets | 422 | 502 | |||||||
Accrued expenses | 3,766 | 3,782 | |||||||
Loss carryforwards | 15,689 | 17,539 | |||||||
Credit carryforwards | 241 | 2,166 | |||||||
Stock compensation | 2,409 | 2,319 | |||||||
Other | 1,108 | 969 | |||||||
Less valuation allowance | -1,532 | -2,292 | |||||||
Total deferred tax assets | 28,007 | 29,140 | |||||||
Deferred tax liabilities: | |||||||||
Prepaid items | -451 | -314 | |||||||
Intangible assets | -5,289 | -5,814 | |||||||
Other | -220 | -348 | |||||||
Total deferred tax liabilities | -5,960 | -6,476 | |||||||
Total net deferred tax assets | $ | 22,047 | $ | 22,664 | |||||
Schedule Of Uncertain Tax Position Liability And Liability For Interest And Penalties On Uncertain Tax Positions | ' | ||||||||
2013 | 2012 | 2011 | |||||||
Beginning balance | $ | 2,004 | $ | 1,788 | $ | 1,822 | |||
Increases related to current year tax positions | 281 | 231 | 78 | ||||||
Decreases related to prior year tax positions | -185 | -15 | -112 | ||||||
Ending balance | $ | 2,100 | $ | 2,004 | $ | 1,788 | |||
A reconciliation of the beginning and ending balances of the Company’s liability for interest and penalties on uncertain tax positions is as follows (in thousands): | |||||||||
2013 | 2012 | 2011 | |||||||
Beginning balance | $ | 489 | $ | 418 | $ | 391 | |||
Accrual of interest and penalties | 66 | 79 | 65 | ||||||
Decreases related to prior year tax positions | -133 | -8 | -38 | ||||||
Ending balance | $ | 422 | $ | 489 | $ | 418 | |||
Commitments_And_Contingencies_
Commitments And Contingencies (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Commitments And Contingencies [Abstract] | ' | ||
Schedule Of Future Minimum Operating Lease Payments | ' | ||
Operating | |||
Leases | |||
2014 | $ | 2,799 | |
2015 | 3,031 | ||
2016 | 2,943 | ||
2017 | 2,980 | ||
2018 | 3,010 | ||
Thereafter | 10,124 | ||
Total minimum lease payments | $ | 24,887 | |
Stock_Compensation_Tables
Stock Compensation (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Stock Compensation [Abstract] | ' | |||||||||||
Schedule Of Shares Available For Grant | ' | |||||||||||
Authorized | Available for Grant | |||||||||||
Plan | Shares | 2013 | 2012 | |||||||||
1996 Discounted Employee Stock Purchase Plan, as amended | 1,900,000 | 749,000 | 847,000 | |||||||||
2004 Employee Stock Incentive Plan | 2,100,000 | 60,000 | 41,000 | |||||||||
2008 Non-Employee Directors Stock Incentive Plan | 300,000 | -- | 27,000 | |||||||||
2009 Employee Stock Incentive Plan | 4,100,000 | 2,221,000 | 2,847,000 | |||||||||
Total | 8,400,000 | 3,030,000 | 3,762,000 | |||||||||
Schedule Of Stock Grant Activity For RSAs | ' | |||||||||||
Weighted | ||||||||||||
Average | ||||||||||||
Grant Date | ||||||||||||
RSAs | Shares | Fair Value | ||||||||||
Unvested at December 31, 2010 | 364,000 | $ | 7.07 | |||||||||
Granted | 360,000 | 5.18 | ||||||||||
Vested | -128,000 | 7.28 | ||||||||||
Forfeited | -44,000 | 5.48 | ||||||||||
Unvested at December 31, 2011 | 552,000 | 5.91 | ||||||||||
Granted | 229,000 | 5.39 | ||||||||||
Vested | -142,000 | 7.00 | ||||||||||
Unvested at December 31, 2012 | 639,000 | 5.48 | ||||||||||
Granted | 232,000 | 6.10 | ||||||||||
Vested | -215,000 | 5.80 | ||||||||||
Forfeited | -34,000 | 5.31 | ||||||||||
Unvested at December 31, 2013 | 622,000 | 5.62 | ||||||||||
Schedule Of Stock Grant Activity For RSUs | ' | |||||||||||
Weighted | ||||||||||||
Average | ||||||||||||
Remaining | Aggregate | |||||||||||
Contractual | Intrinsic | |||||||||||
RSUs | Shares | Term in years | Value | |||||||||
Outstanding at December 31, 2010 | 58,000 | 1.85 | $ | 313,000 | ||||||||
Granted | 61,000 | |||||||||||
Vested | -19,000 | |||||||||||
Forfeited | -3,000 | |||||||||||
Outstanding at December 31, 2011 | 97,000 | 1.66 | 466,000 | |||||||||
Granted | 64,000 | |||||||||||
Vested | -37,000 | |||||||||||
Forfeited | -4,000 | |||||||||||
Outstanding at December 31, 2012 | 120,000 | 1.54 | 747,000 | |||||||||
Granted | 73,000 | |||||||||||
Vested | -54,000 | |||||||||||
Forfeited | -10,000 | |||||||||||
Outstanding at December 31, 2013 | 129,000 | 1.56 | 1,425,000 | |||||||||
Vested and expected to vest | 118,000 | 1.55 | $ | 1,314,000 | ||||||||
Schedule Of Stock Grant Activity For PSUs | ' | |||||||||||
Weighted | ||||||||||||
Average | ||||||||||||
Remaining | Aggregate | |||||||||||
Contractual | Intrinsic | |||||||||||
PSUs | Shares | Term in years | Value | |||||||||
Outstanding at December 31, 2011 | -- | -- | $ | -- | ||||||||
Granted | 159,000 | |||||||||||
Vested | -- | |||||||||||
Forfeited | -- | |||||||||||
Outstanding at December 31, 2012 | 159,000 | 0.93 | 989,000 | |||||||||
Granted | 182,000 | |||||||||||
Vested | -99,000 | |||||||||||
Forfeited | -6,000 | |||||||||||
Outstanding at December 31, 2013 | 236,000 | 0.81 | 2,612,000 | |||||||||
Vested and expected to vest | 224,000 | 0.78 | $ | 2,487,000 | ||||||||
Summary Of Stock Option Activity | ' | |||||||||||
Weighted | ||||||||||||
Average | ||||||||||||
Weighted | Remaining | Aggregate | ||||||||||
Average | Contractual | Intrinsic | ||||||||||
Shares | Exercise Price | Term in years | Value | |||||||||
Outstanding at December 31, 2010 | 2,281,000 | $ | 6.74 | 3.46 | $ | 603,000 | ||||||
Granted | 599,000 | 5.13 | ||||||||||
Exercised | -260,000 | 4.53 | ||||||||||
Forfeited | -100,000 | 5.60 | ||||||||||
Expired | -320,000 | 5.30 | ||||||||||
Outstanding at December 31, 2011 | 2,200,000 | 6.83 | 4.00 | -- | ||||||||
Granted | 159,000 | 5.67 | ||||||||||
Exercised | -48,000 | 5.64 | ||||||||||
Forfeited | -2,000 | 7.01 | ||||||||||
Expired | -249,000 | 7.03 | ||||||||||
Outstanding at December 31, 2012 | 2,060,000 | 6.74 | 3.66 | 1,225,000 | ||||||||
Granted | 162,000 | 6.12 | ||||||||||
Exercised | -365,000 | 7.48 | ||||||||||
Forfeited | -49,000 | 5.56 | ||||||||||
Expired | -14,000 | 6.69 | ||||||||||
Outstanding at December 31, 2013 | 1,794,000 | 6.57 | 3.31 | 8,274,000 | ||||||||
Vested and expected to vest | 1,781,000 | $ | 6.57 | 3.29 | $ | 8,205,000 | ||||||
Exercisable at December 31, 2013 | 1,372,000 | $ | 6.86 | 2.75 | $ | 5,971,000 | ||||||
Summary Of Other Information Concerning Stock Options | ' | |||||||||||
2013 | 2012 | 2011 | ||||||||||
Weighted-average fair value of options granted | $ | 2.54 | $ | 2.67 | $ | 2.54 | ||||||
Intrinsic value of options exercised | 673,000 | 10,000 | 261,000 | |||||||||
Schedule Of Weighted-Average Assumptions Used To Determine The Fair Value Of Options | ' | |||||||||||
2013 | 2012 | 2011 | ||||||||||
Stock | ESPP | Stock | ESPP | Stock | ESPP | |||||||
Options | Options | Options | Options | Options | Options | |||||||
Expected life of options | 4.3 Years | .50 Years | 4.3 Years | .50 Years | 4.0 Years | .50 Years | ||||||
Expected stock price volatility | 0.60 | 0.39 | 0.60 | 0.48 | 0.65 | 0.39 | ||||||
Dividends | 1.91% | 1.59% | N/A | N/A | N/A | N/A | ||||||
Risk-free interest rate | 0.70% | 0.13% | 0.71% | 0.12% | 1.25% | 0.14% | ||||||
Summary Of Stock Compensation Expenses | ' | |||||||||||
2013 | 2012 | 2011 | ||||||||||
RSA, RSU, and PSU expense | $ | 2,616 | $ | 2,204 | $ | 1,408 | ||||||
Stock option and ESPP option expense | 852 | 1,172 | 1,606 | |||||||||
Total stock compensation expense | $ | 3,468 | $ | 3,376 | $ | 3,014 | ||||||
Income_Per_Common_Share_Tables
Income Per Common Share (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Per Common Share [Abstract] | ' | ||||||||
Computation Of Basic And Diluted Income (Loss) Per Common Share | ' | ||||||||
2013 | 2012 | 2011 | |||||||
Basic income per common share | |||||||||
Net income | $ | 16,172 | $ | 7,946 | $ | 7,371 | |||
Net income allocated to participating securities | -367 | -180 | -149 | ||||||
Net income allocated to common shareholders | $ | 15,805 | $ | 7,766 | $ | 7,222 | |||
Basic weighted-average common shares outstanding | 26,885 | 26,967 | 27,441 | ||||||
Basic income per common share | $ | 0.59 | $ | 0.29 | $ | 0.26 | |||
Diluted income per common share | |||||||||
Net income | $ | 16,172 | $ | 7,946 | $ | 7,371 | |||
Net income allocated to participating securities | -359 | -178 | -147 | ||||||
Net income allocated to common shareholders | $ | 15,813 | $ | 7,768 | $ | 7,224 | |||
Basic weighted-average common shares outstanding | 26,885 | 26,967 | 27,441 | ||||||
Effect of dilutive options and awardsa | 813 | 444 | 318 | ||||||
Diluted weighted-average common shares outstanding | 27,698 | 27,411 | 27,759 | ||||||
Diluted income per common share | $ | 0.57 | $ | 0.28 | $ | 0.26 | |||
aThe Company excluded stock options from the calculation of diluted weighted-average common shares outstanding if the per share value, including the sum of (i) the exercise price of the options and (ii) the amount of the compensation cost attributed to future services and not yet recognized, was greater than the average market price of the shares, because the inclusion of these stock options would be antidilutive to income per common share. Accordingly, stock options to purchase 656,000, 1.7 million, and 2.0 million, shares for the years ended December 31, 2013, 2012, and 2011, respectively, were excluded from the calculation of diluted weighted-average common shares outstanding. | |||||||||
Segment_And_Geographic_Informa1
Segment And Geographic Information (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Segment And Geographic Information [Abstract] | ' | ||||||||
Revenues, Cost Of Services And Products, And Gross Margins For Operating Segments | ' | ||||||||
2013 | 2012 | 2011 | |||||||
Revenues: | |||||||||
Medical devices | $ | 76,194 | $ | 67,496 | $ | 59,387 | |||
Preservation services | 64,498 | 63,603 | 59,793 | ||||||
Othera | 71 | 619 | 446 | ||||||
Total revenues | 140,763 | 131,718 | 119,626 | ||||||
Cost of products and preservation services: | |||||||||
Medical devices | 15,147 | 11,380 | 9,442 | ||||||
Preservation services | 35,230 | 35,320 | 34,340 | ||||||
Total cost of products and preservation services | 50,377 | 46,700 | 43,782 | ||||||
Gross margin: | |||||||||
Medical devices | 61,047 | 56,116 | 49,945 | ||||||
Preservation services | 29,268 | 28,283 | 25,453 | ||||||
Othera | 71 | 619 | 446 | ||||||
Total gross margin | $ | 90,386 | $ | 85,018 | $ | 75,844 | |||
Summary Of Net Revenues By Product | ' | ||||||||
2013 | 2012 | 2011 | |||||||
Products: | |||||||||
BioGlue and BioFoam | $ | 58,004 | $ | 53,211 | $ | 49,455 | |||
PerClot | 3,494 | 3,078 | 2,528 | ||||||
HemoStase | -- | -- | 1,699 | ||||||
Revascularization technologies | 8,965 | 8,092 | 5,705 | ||||||
HeRO Graft | 5,731 | 3,115 | -- | ||||||
Total products | 76,194 | 67,496 | 59,387 | ||||||
Preservation services: | |||||||||
Cardiac tissue | 29,523 | 29,756 | 26,618 | ||||||
Vascular tissue | 34,975 | 33,847 | 33,175 | ||||||
Total preservation services | 64,498 | 63,603 | 59,793 | ||||||
Othera | 71 | 619 | 446 | ||||||
Total revenues | $ | 140,763 | $ | 131,718 | $ | 119,626 | |||
aFor the years ended December 31, 2013, 2012, and 2011 the “Other” designation includes grant revenue. | |||||||||
Schedule Of Net Revenues By Geographic Location | ' | ||||||||
2013 | 2012 | 2011 | |||||||
U.S. | $ | 109,325 | $ | 103,804 | $ | 95,975 | |||
International | 31,438 | 27,914 | 23,651 | ||||||
Total revenues | $ | 140,763 | $ | 131,718 | $ | 119,626 | |||
Selected_Quarterly_Financial_I1
Selected Quarterly Financial Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Selected Quarterly Financial Information [Abstract] | ' | ||||||||||||
Schedule Of Quarterly Financial Information | ' | ||||||||||||
First | Second | Third | Fourth | ||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||
REVENUE: | |||||||||||||
2013 | $ | 35,536 | $ | 33,520 | $ | 36,250 | $ | 35,457 | |||||
2012 | 32,301 | 33,188 | 33,429 | 32,800 | |||||||||
2011 | 30,196 | 29,379 | 29,654 | 30,397 | |||||||||
GROSS MARGIN: | |||||||||||||
2013 | $ | 23,276 | $ | 21,479 | $ | 23,349 | $ | 22,282 | |||||
2012 | 21,292 | 21,371 | 21,310 | 21,045 | |||||||||
2011 | 18,504 | 19,053 | 18,912 | 19,375 | |||||||||
NET INCOME: | |||||||||||||
2013 | $ | 2,192 | $ | 1,785 | $ | 3,169 | $ | 9,026 | * | ||||
2012 | 991 | 3,334 | 1,538 | 2,083 | |||||||||
2011 | 1,666 | 1,820 | 2,019 | 1,866 | |||||||||
INCOME PER COMMON SHARE—DILUTED: | |||||||||||||
2013 | $ | 0.08 | $ | 0.06 | $ | 0.11 | $ | 0.31 | * | ||||
2012 | 0.04 | 0.12 | 0.06 | 0.07 | |||||||||
2011 | 0.06 | 0.06 | 0.07 | 0.07 | |||||||||
*The fourth quarter 2013 net income and income per common share-diluted includes the favorable effect of a $12.7 million pre-tax gain on the sale of an investment in the common stock of Medafor, Inc. as a result of C.R. Bard, Inc. completing its acquisition of the outstanding common shares of Medafor, Inc. and the unfavorable effect of a $3.2 million other than temporary investment impairment as a result of the impairment and write-down of the Company’s investment in ValveXchange preferred stock. | |||||||||||||
Summary_Of_Significant_Account3
Summary Of Significant Accounting Policies (Narrative) (Details) (USD $) | 0 Months Ended | 9 Months Ended | 12 Months Ended | |||
28-May-13 | Aug. 21, 2012 | 27-May-13 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Advertising expense | ' | ' | ' | $880,000 | $1,500,000 | $948,000 |
ESPP, percentage of discounted price from market price | ' | ' | ' | 85.00% | ' | ' |
Increase in quarterly cash dividend, percentage | 10.00% | ' | ' | ' | ' | ' |
Quarterly cash dividend per share of common stock outstanding approved | $0.03 | $0.03 | $0.03 | $0.11 | $0.05 | ' |
Allowance for doubtful accounts | ' | ' | ' | 356,000 | 528,000 | ' |
Write-downs to deferred preservation costs | ' | ' | ' | 448,000 | 195,000 | 270,000 |
Write-down to inventory | ' | ' | ' | 1,200,000 | 77,000 | 0 |
Minimum [Member] | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Estimated useful lives | ' | ' | ' | '3 years | ' | ' |
Maximum [Member] | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Estimated useful lives | ' | ' | ' | '10 years | ' | ' |
Stock Options, RSAs, RSUs, And PSUs [Member] | Minimum [Member] | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Vesting period | ' | ' | ' | '1 year | ' | ' |
Stock Options, RSAs, RSUs, And PSUs [Member] | Maximum [Member] | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Vesting period | ' | ' | ' | '3 years | ' | ' |
Stock Options [Member] | Maximum [Member] | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Period within grant date stock options granted typically expire | ' | ' | ' | '7 years | ' | ' |
BioGlue Accessory Product [Member] | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Write-down to inventory | ' | ' | ' | 684,000 | ' | ' |
Obsolete Revascularization Technologies Handpieces [Member] | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Write-down to inventory | ' | ' | ' | $483,000 | ' | ' |
Summary_Of_Significant_Account4
Summary Of Significant Accounting Policies (Schedule Of Supplemental Disclosures Of Cash Flow Information) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash paid during the year for: | ' | ' | ' |
Interest | $3 | $22 | $89 |
Income taxes | $5,693 | $1,263 | $3,564 |
Summary_Of_Significant_Account5
Summary Of Significant Accounting Policies (Schedule Of Depreciation Expense) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Summary Of Significant Accounting Policies [Abstract] | ' | ' | ' |
Depreciation expense | $3,837 | $3,662 | $3,590 |
Financial_Instruments_Summary_
Financial Instruments (Summary Of Financial Instruments Measured At Fair Value) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets | $6,448 | $1,642 |
Contingent consideration | -1,884 | -1,912 |
Total liabilities | -1,884 | -1,912 |
Money Market Funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 5,349 | 1,319 |
Restricted securities | 350 | 323 |
Certificates Of Deposit [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 749 | ' |
Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets | 6,448 | 1,642 |
Level 1 [Member] | Money Market Funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 5,349 | 1,319 |
Restricted securities | 350 | 323 |
Level 1 [Member] | Certificates Of Deposit [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 749 | ' |
Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Contingent consideration | -1,884 | -1,912 |
Total liabilities | ($1,884) | ($1,912) |
Financial_Instruments_Reconcil
Financial Instruments (Reconciliation Of Changes In Fair Value Of Level 3 Liabilities) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Financial Instruments [Abstract] | ' | ' |
Contingent consideration, balance as of December 31, 2012 | $1,912,000 | ' |
Gain on remeasurement of contingent consideration | -28,000 | 72,000 |
Contingent consideration, balance as of December 31, 2013 | $1,884,000 | $1,912,000 |
Cash_Equivalents_And_Restricte2
Cash Equivalents And Restricted Cash And Securities (Narrative ) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' | ' |
Long-term restricted cash and securities | ' | $5,000,000 | ' |
Gains or losses realized on cash equivalents | 0 | 0 | 0 |
Money Market Funds [Member] | ' | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' | ' |
Short-term restricted securities | 350,000 | 323,000 | ' |
No Maturity Date [Member] | ' | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' | ' |
Long-term restricted cash and securities | 5,000,000 | 5,000,000 | ' |
Maturity Date Within Three Months [Member] | ' | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' | ' |
Restricted securities | 328,000 | 323,000 | ' |
Maturity Date Between Three Months And One Year [Member] | ' | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' | ' |
Restricted securities | 22,000 | ' | ' |
GE Credit Agreement [Member] | ' | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' | ' |
Restricted cash and securities | 5,000,000 | ' | ' |
Long-term restricted cash and securities | ' | $5,000,000 | ' |
Cash_Equivalents_And_Restricte3
Cash Equivalents And Restricted Cash And Securities (Summary Of Cash Equivalents And Marketable Securities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Cash [Member] | Restricted Cash And Securities [Member] | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Cost Basis | $5,000 | $5,000 |
Estimated Market Value | 5,000 | 5,000 |
Money Market Funds [Member] | Cash Equivalents [Member] | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Cost Basis | 5,349 | 1,319 |
Estimated Market Value | 5,349 | 1,319 |
Money Market Funds [Member] | Restricted Cash And Securities [Member] | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Cost Basis | 350 | 323 |
Estimated Market Value | 350 | 323 |
Certificates Of Deposit [Member] | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Cost Basis | 749 | ' |
Estimated Market Value | $749 | ' |
Hemosphere_Acquisition_Narrati
Hemosphere Acquisition (Narrative) (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 8 Months Ended | 12 Months Ended | ||||||||||||||
16-May-12 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | 16-May-12 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Hemosphere [Member] | Hemosphere [Member] | Hemosphere [Member] | Hemosphere [Member] | |||||||||||||||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of outstanding equity acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' |
Cash paid for acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $17,000,000 | ' | ' | ' |
Cash acquired from acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,200,000 | ' | ' | ' |
Fair value of contingent consideration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,800,000 | ' | ' | ' |
Total purchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22,000,000 | 22,035,000 | ' | 22,035,000 |
Maximum amount of future consideration payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,500,000 | ' | ' | ' |
Cost of debt based discount rate | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain (loss) on revaluation of contingent consideration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28,000 | -72,000 | ' | ' | ' | ' | ' |
Contingent consideration liability | ' | 1,884,000 | ' | ' | ' | 1,912,000 | ' | ' | ' | ' | ' | ' | ' | 1,884,000 | 1,912,000 | ' | ' | ' | ' | ' |
Business acquisition, integration costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 940,000 | ' |
Business acquisition, transaction and integration costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,400,000 |
Revenues | ' | $35,457,000 | $36,250,000 | $33,520,000 | $35,536,000 | $32,800,000 | $33,429,000 | $33,188,000 | $32,301,000 | $30,397,000 | $29,654,000 | $29,379,000 | $30,196,000 | $140,763,000 | $131,718,000 | $119,626,000 | ' | $3,100,000 | ' | ' |
Income tax rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31.00% | 34.00% | 36.00% | ' | ' | ' | 34.00% |
Hemosphere_Acquisition_Busines
Hemosphere Acquisition (Business Acquisition Purchase Price Allocation) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | 16-May-12 |
In Thousands, unless otherwise specified | Hemosphere [Member] | Hemosphere [Member] | ||
Business Acquisition [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | ' | ' | $3,155 | ' |
Receivables | ' | ' | 653 | ' |
Inventories | ' | ' | 554 | ' |
Intangible assets | ' | ' | 5,790 | ' |
Goodwill | 11,365 | 11,365 | 7,145 | ' |
Deferred tax assets, net | ' | ' | 5,379 | ' |
Other assets | ' | ' | 331 | ' |
Liabilities assumed | ' | ' | -972 | ' |
Total purchase price | ' | ' | $22,035 | $22,000 |
Hemosphere_Acquisition_Summary
Hemosphere Acquisition (Summary Of Unaudited Pro Forma Results Of Operations) (Details) (Hemosphere [Member], USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 |
Hemosphere [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Total revenues | $133,722 | $124,877 |
Net income | $8,758 | $3,205 |
Pro forma income per common share-basic | $0.32 | $0.11 |
Pro forma income per common share-diluted | $0.31 | $0.11 |
ValveXchange_Details
ValveXchange (Details) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Share data in Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 31, 2011 |
ValveXchange, Inc. [Member] | ValveXchange, Inc. [Member] | ValveXchange, Inc. [Member] | ValveXchange, Inc. [Member] | ValveXchange, Inc. [Member] | ValveXchange, Inc. [Member] | ValveXchange, Inc. [Member] | |||
Series A Preferred Stock [Member] | Series A Preferred Stock [Member] | Series A Preferred Stock [Member] | Series A Preferred Stock [Member] | ||||||
Schedule of Cost-method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock purchased, shares | ' | ' | ' | ' | ' | ' | ' | ' | 2.4 |
Preferred stock purchased, value | ' | ' | ' | ' | ' | ' | ' | ' | $3,500,000 |
Equity ownership percent | ' | ' | ' | 19.00% | ' | ' | ' | ' | ' |
Loans receivable, revolving credit line, maximum capacity | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' |
Loans receivable, revolving credit line, expiration date | ' | ' | 30-Jul-18 | ' | ' | ' | ' | ' | ' |
Loans receivable, revolving credit line, interest rate | ' | ' | 8.00% | ' | ' | ' | ' | ' | ' |
Loan origination costs net of fees | ' | ' | 117,000 | ' | ' | ' | ' | ' | ' |
Amount of loan advanced | ' | ' | ' | 2,000,000 | 2,000,000 | ' | ' | ' | ' |
Preferred stock, written down investment | 3,229,000 | 340,000 | ' | ' | ' | 340,000 | 3,200,000 | ' | ' |
Preferred stock carrying value | ' | $5,908,000 | ' | ' | ' | ' | $0 | $3,200,000 | ' |
Cardiogenesis_Acquisition_Narr
Cardiogenesis Acquisition (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 8 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | ||||||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | 17-May-11 | Jul. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2012 | Jul. 31, 2012 | |
Cardiogenesis [Member] | Cardiogenesis [Member] | Cardiogenesis [Member] | CardioFocus Settlement [Member] | CardioFocus Settlement [Member] | CardioFocus Settlement [Member] | Payment [Member] | ||||||||||||||||
Cardiogenesis [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition of outstanding shares (per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.46 | ' | ' | ' | ' |
Total purchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $21,712,000 | $21,712,000 | $21,700,000 | ' | ' | ' | ' |
Transaction and integration costs related to acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000 | ' | ' | ' | ' | ' |
Revenues | 35,457,000 | 36,250,000 | 33,520,000 | 35,536,000 | 32,800,000 | 33,429,000 | 33,188,000 | 32,301,000 | 30,397,000 | 29,654,000 | 29,379,000 | 30,196,000 | 140,763,000 | 131,718,000 | 119,626,000 | 5,700,000 | ' | ' | ' | ' | ' | ' |
Income tax rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31.00% | 34.00% | 36.00% | ' | 36.00% | ' | ' | ' | ' | ' |
Loss recorded in general, administrative, and marketing expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 68,112,000 | 65,149,000 | 57,302,000 | ' | ' | ' | ' | 3,600,000 | ' | ' |
Legal settlement expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,100,000 | ' |
Settlement payment to CardioFocus | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4,500,000 | ' | ' | $4,500,000 |
Cardiogenesis_Acquisition_Busi
Cardiogenesis Acquisition (Business Acquisition Purchase Price Allocation) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | 17-May-11 |
In Thousands, unless otherwise specified | Cardiogenesis [Member] | Cardiogenesis [Member] | ||
Business Acquisition [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | ' | ' | $650 | ' |
Receivables | ' | ' | 1,055 | ' |
Inventories | ' | ' | 852 | ' |
Property and equipment | ' | ' | 248 | ' |
Intangible assets | ' | ' | 11,900 | ' |
Goodwill | 11,365 | 11,365 | 4,220 | ' |
Net deferred tax assets | ' | ' | 5,002 | ' |
Other assets | ' | ' | 230 | ' |
Liabilities assumed | ' | ' | -2,445 | ' |
Total purchase price | ' | ' | $21,712 | $21,700 |
Cardiogenesis_Acquisition_Summ
Cardiogenesis Acquisition (Summary Of Unaudited Pro Forma Results Of Operations) (Details) (Cardiogenesis [Member], USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2011 |
Cardiogenesis [Member] | ' |
Business Acquisition [Line Items] | ' |
Total revenues | $123,951 |
Net income | $7,962 |
Medafor_Matters_Details
Medafor Matters (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | 6 Months Ended | 42 Months Ended | 3 Months Ended | ||||
Share data in Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Oct. 21, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2017 | Jun. 30, 2012 |
Medafor Inc. [Member] | Medafor Inc. [Member] | Medafor Inc. [Member] | Medafor Inc. [Member] | C.R. Bard, Inc. [Member] | C.R. Bard, Inc. [Member] | Medafor Settlement [Member] | |||||
Scenario, Forecast [Member] | Scenario, Forecast [Member] | ||||||||||
Subsidiary or Equity Method Investee [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares purchased under stock purchase agreement | ' | ' | ' | ' | ' | ' | ' | 2.4 | ' | ' | ' |
Investment in equity securities | ' | ' | $5,908,000 | ' | ' | ' | ' | $2,600,000 | ' | ' | ' |
Value of Medafor derivative | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' |
Initial payment received from C.R. Bard for acquisition of outstanding shares of common stock | ' | 15,421,000 | ' | ' | 15,400,000 | ' | ' | ' | ' | ' | ' |
Outstanding shares of common stock acquired by C.R. Bard | ' | ' | ' | ' | ' | 2.4 | ' | ' | ' | ' | ' |
Initial gain on sale of outstanding shares of common stock | 12,700,000 | 12,742,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional payments that could be received | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,400,000 | ' |
Approximate amount that could be received from first possible additional payment | ' | ' | ' | ' | ' | ' | ' | ' | 525,000 | ' | ' |
Proceeds from legal settlement | ' | ' | ' | ' | ' | ' | 3,500,000 | ' | ' | ' | ' |
Gain recorded as a reduction in general, administrative, and marketing expenses | ' | 68,112,000 | 65,149,000 | 57,302,000 | ' | ' | ' | ' | ' | ' | 4,700,000 |
Discharged reduction in accounts payable pursuant to settlement agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,200,000 |
Deferred_Preservation_Costs_An2
Deferred Preservation Costs And Inventories (Schedule Of Deferred Preservation Costs) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred Preservation Costs [Line Items] | ' | ' |
Total deferred preservation costs | $27,297 | $27,954 |
Cardiac Tissues [Member] | ' | ' |
Deferred Preservation Costs [Line Items] | ' | ' |
Total deferred preservation costs | 12,239 | 11,950 |
Vascular Tissues [Member] | ' | ' |
Deferred Preservation Costs [Line Items] | ' | ' |
Total deferred preservation costs | $15,058 | $16,004 |
Deferred_Preservation_Costs_An3
Deferred Preservation Costs And Inventories (Schedule Of Inventories) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred Preservation Costs And Inventories [Abstract] | ' | ' |
Raw materials and supplies | $5,706 | $5,836 |
Work-in-process | 767 | 830 |
Finished goods | 3,298 | 3,891 |
Total inventories | $9,771 | $10,557 |
Goodwill_And_Other_Intangible_2
Goodwill And Other Intangible Assets (Schedule Of Carrying Values Of Indefinite Lived Intangible Assets)(Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Goodwill | $11,365 | $11,365 |
Other Intangible Assets [Member] | ' | ' |
Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Indefinite lived intangible assets | ' | 250 |
Procurement Contracts And Agreements [Member] | ' | ' |
Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Indefinite lived intangible assets | 2,013 | 2,013 |
Trademarks [Member] | ' | ' |
Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Indefinite lived intangible assets | $841 | $870 |
Goodwill_And_Other_Intangible_3
Goodwill And Other Intangible Assets (Schedule Of Goodwill By Reportable Segment) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | Medical Devices Segment [Member] | Medical Devices Segment [Member] | Medical Devices Segment [Member] | Hemosphere [Member] | Hemosphere [Member] | ||
Medical Devices Segment [Member] | |||||||
Goodwill [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Balance as of January 1, | $11,365 | $11,365 | $11,365 | $11,365 | $4,220 | $7,145 | ' |
Goodwill from Hemosphere acquisition | ' | ' | ' | ' | ' | ' | 7,145 |
Balance as of December 31, | $11,365 | $11,365 | $11,365 | $11,365 | $4,220 | $7,145 | ' |
Goodwill_And_Other_Intangible_4
Goodwill And Other Intangible Assets (Schedule Of Gross Carrying Values, Accumulated Amortization, And Approximate Amortization Periods Of Definite Lived Intangible Assets) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Acquired Technology [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Value | $14,020 | $14,020 |
Accumulated amortization | 2,677 | 1,538 |
Patents [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Value | 4,348 | 4,644 |
Accumulated amortization | 2,414 | 2,530 |
Amortization Period | '17 years | '17 years |
Distribution And Manufacturing Rights And Know-How [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Value | 3,559 | 3,559 |
Accumulated amortization | 714 | 473 |
Amortization Period | '15 years | '15 years |
Customer Lists And Relationships [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Value | 3,370 | 3,370 |
Accumulated amortization | 572 | 330 |
Non-Compete Agreement [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Value | 381 | 381 |
Accumulated amortization | 267 | 229 |
Amortization Period | '10 years | '10 years |
Other [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Value | 202 | 198 |
Accumulated amortization | $171 | $123 |
Minimum [Member] | Acquired Technology [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Amortization Period | '11 years | '11 years |
Minimum [Member] | Customer Lists And Relationships [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Amortization Period | '13 years | '13 years |
Minimum [Member] | Other [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Amortization Period | '1 year | '1 year |
Maximum [Member] | Acquired Technology [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Amortization Period | '16 years | '16 years |
Maximum [Member] | Customer Lists And Relationships [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Amortization Period | '17 years | '17 years |
Maximum [Member] | Other [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Amortization Period | '3 years | '3 years |
Goodwill_And_Other_Intangible_5
Goodwill And Other Intangible Assets (Summary Of Amortization Expense) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Goodwill And Other Intangible Assets [Abstract] | ' | ' | ' |
Amortization expense | $2,006 | $1,971 | $1,370 |
Goodwill_And_Other_Intangible_6
Goodwill And Other Intangible Assets (Scheduled Amortization Of Intangible Assets For Next Five Years) (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Goodwill And Other Intangible Assets [Abstract] | ' |
Amortization expense, 2014 | $1,948 |
Amortization expense, 2015 | 1,905 |
Amortization expense, 2016 | 1,898 |
Amortization expense, 2017 | 1,850 |
Amortization expense, 2018 | 1,844 |
Total | $9,445 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Tax Credit Carryforward [Line Items] | ' | ' | ' |
Effective income tax rate | 31.00% | 34.00% | 36.00% |
Federal statutory income tax rate | 35.00% | ' | ' |
Valuation allowances against deferred tax assets | $1,532,000 | $2,292,000 | ' |
Net deferred tax asset | 22,047,000 | 22,664,000 | ' |
State net operating loss carryforwards | 3,200,000 | ' | ' |
Research and development tax credit carryforwards | 61,000 | ' | ' |
Total uncertain tax liability including interest and penalties | 2,500,000 | 2,500,000 | ' |
Uncertain tax liability recorded as reduction to deferred tax assets | ' | 103,000 | ' |
Uncertain tax liability recorded to non-current liability | ' | 2,400,000 | ' |
Texas Tax Credit [Member] | ' | ' | ' |
Tax Credit Carryforward [Line Items] | ' | ' | ' |
Other tax credit | $163,000 | ' | ' |
Income_Taxes_Schedule_Of_Incom
Income Taxes (Schedule Of Income Before Income Tax) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Taxes [Abstract] | ' | ' | ' |
Domestic | $23,004 | $11,686 | $11,238 |
Foreign | 288 | 366 | 228 |
Income before income taxes | $23,292 | $12,052 | $11,466 |
Income_Taxes_Schedule_Of_Compo
Income Taxes (Schedule Of Components Of Income Tax Expense) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Taxes [Abstract] | ' | ' | ' |
Current, Federal | $6,304 | $2,778 | $2,634 |
Current, State | 396 | 180 | 103 |
Current, Foreign | 96 | 98 | 84 |
Income tax expense, Current | 6,796 | 3,056 | 2,821 |
Deferred, Federal | 1,142 | 1,274 | 1,087 |
Deferred, State | -818 | -227 | 183 |
Deferred, Foreign | ' | 3 | 4 |
Income tax expense, Deferred | 324 | 1,050 | 1,274 |
Income tax expense | $7,120 | $4,106 | $4,095 |
Income_Taxes_Schedule_Of_Effec
Income Taxes (Schedule Of Effective Income Tax Rate Reconciliation) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Taxes [Abstract] | ' | ' | ' |
Tax expense at statutory rate | $8,152 | $4,220 | $4,013 |
Non-deductible transaction costs | ' | 151 | 540 |
State income taxes, net of federal benefit | 183 | 296 | 150 |
State valuation allowance adjustment | -760 | -427 | 100 |
Equity compensation | -29 | 32 | 149 |
Non-deductible entertainment expenses | 207 | 188 | 142 |
Foreign income taxes | 96 | -199 | 3 |
Domestic production activities deduction | -402 | -407 | -727 |
Research and development credit | -392 | ' | -314 |
Other | 65 | 252 | 39 |
Income tax expense | $7,120 | $4,106 | $4,095 |
Income_Taxes_Schedule_Of_Defer
Income Taxes (Schedule Of Deferred Tax Assets And Liabilities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Allowance for bad debts | $131 | $194 |
Deferred preservation costs and inventory write-downs | 1,077 | 392 |
Investment in equity securities | 1,959 | 925 |
Property | 2,737 | 2,644 |
Intangible assets | 422 | 502 |
Accrued expenses | 3,766 | 3,782 |
Loss carryforwards | 15,689 | 17,539 |
Credit carryforwards | 241 | 2,166 |
Stock compensation | 2,409 | 2,319 |
Other | 1,108 | 969 |
Less valuation allowance | -1,532 | -2,292 |
Total deferred tax assets | 28,007 | 29,140 |
Deferred tax liabilities: | ' | ' |
Prepaid items | -451 | -314 |
Intangible assets | -5,289 | -5,814 |
Other | -220 | -348 |
Total deferred tax liabilities | -5,960 | -6,476 |
Total net deferred tax assets | $22,047 | $22,664 |
Income_Taxes_Schedule_Of_Uncer
Income Taxes (Schedule Of Uncertain Tax Position Liability And Liability For Interest And Penalties On Uncertain Tax Positions) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Taxes [Abstract] | ' | ' | ' |
Beginning balance | $2,004 | $1,788 | $1,822 |
Increases related to current year tax positions | 281 | 231 | 78 |
Decreases related to prior year tax positions | -185 | -15 | -112 |
Ending balance | 2,100 | 2,004 | 1,788 |
Beginning Balance | 489 | 418 | 391 |
Accrual of interest and penalties | 66 | 79 | 65 |
Decreases related to prior year tax positions | -133 | -8 | -38 |
Ending Balance | $422 | $489 | $418 |
Debt_Details
Debt (Details) (USD $) | 12 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Oct. 28, 2011 | 23-May-13 | Oct. 28, 2011 | |
GE Credit Agreement [Member] | GE Credit Agreement [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Non-Amended [Member] | Amended [Member] | Amended [Member] | ||||
GE Credit Agreement [Member] | LIBOR Rate [Member] | Base Rate [Member] | GE Credit Agreement [Member] | GE Credit Agreement [Member] | GE Credit Agreement [Member] | ||||||
GE Credit Agreement [Member] | GE Credit Agreement [Member] | ||||||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility, aggregate amount | ' | ' | ' | ' | ' | ' | ' | ' | $15,000,000 | ' | $20,000,000 |
Payment of cash dividends allowed per year, maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,500,000 | ' |
Revolving credit facility, restriction on cash and cash equivalents | ' | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | ' | ' |
Revolving credit facility, liquidity requirement after effect to stock repurchase | ' | ' | ' | ' | ' | 20,000,000 | ' | ' | ' | ' | ' |
Interest rate on amounts borrowed | ' | ' | ' | ' | ' | ' | 4.25% | 3.25% | ' | ' | ' |
Revolving credit facility, outstanding balance | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' |
Revolving credit facility, aggregate interest rate | ' | ' | ' | 6.50% | 6.50% | ' | ' | ' | ' | ' | ' |
Revolving credit facility, remaining availability | ' | ' | ' | 20,000,000 | 20,000,000 | ' | ' | ' | ' | ' | ' |
Total interest expense | $71,000 | $179,000 | $142,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Commitments_And_Contingencies_1
Commitments And Contingencies (Narrative) (Details) (USD $) | 1 Months Ended | 12 Months Ended | 0 Months Ended | |||||
Jan. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 28, 2010 | Dec. 31, 2013 | |
CEO Post Employment Benefits [Member] | CEO Post Employment Benefits [Member] | Starch Technology Purchase [Member] | Starch Technology Purchase [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining obligations under capital leases | ' | $0 | $0 | ' | ' | ' | ' | ' |
Original term of lease for corporate headquarters | ' | '15 years | ' | ' | ' | ' | ' | ' |
Deferred rent obligations | ' | 1,686,000 | 1,603,000 | ' | ' | ' | ' | ' |
Total rental expense for operating leases | ' | 3,000,000 | 2,700,000 | 2,700,000 | ' | ' | ' | ' |
Unreported loss liability | ' | 1,500,000 | 1,700,000 | ' | ' | ' | ' | ' |
Recoverable insurance amounts | ' | 580,000 | 620,000 | ' | ' | ' | ' | ' |
Liability estimated after a reasonable margin for statistical fluctuations | ' | 2,700,000 | ' | ' | ' | ' | ' | ' |
Accrued expenses and other current liabilities payable upon the CEO's voluntary retirement | ' | ' | ' | ' | 2,100,000 | 2,100,000 | ' | ' |
Additional payment for CEO remaining employed as of January 1, 2013 | 100,000 | ' | ' | ' | ' | ' | ' | ' |
Term of distribution agreement | ' | ' | ' | ' | ' | ' | '15 years | ' |
Additional contingent amounts paid if FDA regulatory and other commercial milestones are achieved | ' | ' | ' | ' | ' | ' | 2,500,000 | ' |
Expected future contingent payment amounts to be initially recorded as research and development expense | ' | ' | ' | ' | ' | ' | ' | $2,500,000 |
Commitments_And_Contingencies_2
Commitments And Contingencies (Schedule Of Future Minimum Operating Lease Payments) (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Commitments And Contingencies [Abstract] | ' |
2014 | $2,799 |
2015 | 3,031 |
2016 | 2,943 |
2017 | 2,980 |
2018 | 3,010 |
Thereafter | 10,124 |
Total minimum lease payments | $24,887 |
Shareholders_Equity_Details
Shareholders' Equity (Details) (USD $) | 0 Months Ended | 9 Months Ended | 12 Months Ended | |||||
28-May-13 | Feb. 01, 2013 | Aug. 21, 2012 | Aug. 07, 2012 | Nov. 01, 2011 | 27-May-13 | Dec. 31, 2013 | Dec. 31, 2012 | |
Common stock repurchase, authorized amount | ' | $15,000,000 | ' | ' | $15,000,000 | ' | ' | ' |
Stock repurchased during period, shares | ' | ' | ' | ' | ' | ' | 253,000 | 639,000 |
Stock repurchased during period, aggregate purchase price | ' | ' | ' | ' | ' | ' | 1,500,000 | 3,300,000 |
Common stock repurchase, remaining authorized amount | ' | ' | ' | ' | ' | ' | 13,500,000 | ' |
Retired shares of treasury stock | ' | ' | ' | 2,700,000 | ' | ' | ' | ' |
Retirement of treasury shares | ' | ' | ' | 15,100,000 | ' | ' | ' | ' |
Increase in quarterly cash dividend, percentage | 10.00% | ' | ' | ' | ' | ' | ' | ' |
Quarterly cash dividend per share of common stock outstanding approved | $0.03 | ' | $0.03 | ' | ' | $0.03 | $0.11 | $0.05 |
Initial quarterly cash dividend per share paid | ' | ' | ' | ' | ' | ' | $0.11 | $0.05 |
Dividend payment from cash on hand | ' | ' | ' | ' | ' | ' | 2,967,000 | 1,373,000 |
Price of Rights per unit | ' | ' | ' | ' | ' | ' | $33.33 | ' |
Rights conditions, minimum acquisition percentage of common stock | ' | ' | ' | ' | ' | ' | 15.00% | ' |
Series A Stock purchasable upon exercise of a Right, minimum preferential quarterly dividend payment | ' | ' | ' | ' | ' | ' | $1 | ' |
Number of times an aggregate dividend is bigger than common stock dividend | ' | ' | ' | ' | ' | ' | 100 | ' |
Number of times liquidation payment of preferred stock per share is bigger over common stock per share | ' | ' | ' | ' | ' | ' | 100 | ' |
During merger, Number of times amount received per share of preferred stock is bigger than amount received per share of common stock | ' | ' | ' | ' | ' | ' | 100 | ' |
Minimum percentage of consolidated assets or earning power to be sold to qualify for preferred stock provision | ' | ' | ' | ' | ' | ' | 50.00% | ' |
Minimum percentage of common stock acquired to qualify for preferred stock provision | ' | ' | ' | ' | ' | ' | 50.00% | ' |
Treasury Stock [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Retirement of treasury shares | ' | ' | ' | 15,100,000 | ' | ' | ' | ' |
Common Stock [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Retirement of treasury shares | ' | ' | ' | 27,000 | ' | ' | ' | ' |
Additional Paid-In Capital [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Retirement of treasury shares | ' | ' | ' | $15,100,000 | ' | ' | ' | ' |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Employee Benefit Plans [Abstract] | ' | ' | ' |
Company's matching percentage of employees' contribution | 40.00% | 40.00% | 20.00% |
Company's matching contribution of employees' salary | 5.00% | 5.00% | 5.00% |
Company's total contributions | $541,000 | $500,000 | $204,000 |
Stock_Compensation_Narrative_D
Stock Compensation (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
ESPP, percentage of discounted price from market price | 85.00% | ' | ' |
Actual percentage of target number of shares of common stock granted as Performance Stock Units | 115.00% | 125.00% | ' |
Granted, Shares | 162,000 | 159,000 | 599,000 |
Employees purchased common stock, shares | 97,000 | 72,000 | 64,000 |
Capitalized stock compensation expense | $228,000 | $214,000 | $224,000 |
RSAs To Non-Employee Directors, RSUs To Certain Employees, And RSAs And PSUs To Certain Company Officers [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Authorized stock incentive plans to non-employee Directors and certain Company officers, shares | 467,000 | 451,000 | 421,000 |
Aggregate market value of issued stock incentive plans | 3,100,000 | 2,400,000 | 2,200,000 |
Restricted Stock Awards (RSAs) [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected weighted-average period for recognizing the unrecognized compensation costs, in years | '11 months 1 day | ' | ' |
RSA, RSU, And PSU Expense [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Unrecognized compensation costs | 2,800,000 | ' | ' |
Stock Options [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Granted, Shares | 162,000 | 159,000 | 599,000 |
Unrecognized compensation costs | $532,000 | ' | ' |
Expected weighted-average period for recognizing the unrecognized compensation costs, in years | '1 year 1 month 17 days | ' | ' |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected weighted-average period for recognizing the unrecognized compensation costs, in years | '2 years 3 months 7 days | ' | ' |
Performance Stock Units (PSUs) [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected weighted-average period for recognizing the unrecognized compensation costs, in years | '9 months 22 days | ' | ' |
Minimum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Percentage of target number of shares of common stock granted as Performance Stock Units | 50.00% | ' | ' |
Maximum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Percentage of target number of shares of common stock granted as Performance Stock Units | 150.00% | ' | ' |
2009 Employee Stock Incentive Plan [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Increase in shares authorized under plan | ' | 2,100,000 | ' |
Stock_Compensation_Schedule_Of
Stock Compensation (Schedule Of Shares Available For Grant) (Details) | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Authorized Shares | 8,400,000 | ' |
Available for Grant | 3,030,000 | 3,762,000 |
1996 Discounted Employee Stock Purchase Plan, As Amended [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Authorized Shares | 1,900,000 | ' |
Available for Grant | 749,000 | 847,000 |
2004 Employee Stock Incentive Plan [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Authorized Shares | 2,100,000 | ' |
Available for Grant | 60,000 | 41,000 |
2008 Non-Employee Directors Stock Incentive Plan [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Authorized Shares | 300,000 | ' |
Available for Grant | ' | 27,000 |
2009 Employee Stock Incentive Plan [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Authorized Shares | 4,100,000 | ' |
Available for Grant | 2,221,000 | 2,847,000 |
Stock_Compensation_Schedule_Of1
Stock Compensation (Schedule Of Stock Grant Activity For RSAs) (Details) (Restricted Stock Awards (RSAs) [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Restricted Stock Awards (RSAs) [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Unvested, Beginning Balance, Shares | 639,000 | 552,000 | 364,000 |
Granted, Shares | 232,000 | 229,000 | 360,000 |
Vested, Shares | -215,000 | -142,000 | -128,000 |
Forfeited, Shares | -34,000 | ' | -44,000 |
Unvested, Ending Balance, Shares | 622,000 | 639,000 | 552,000 |
Unvested, Beginning Balance, Weighted Average Grant Date Fair Value | $5.48 | $5.91 | $7.07 |
Granted, Weighted Average Grant Date Fair Value | $6.10 | $5.39 | $5.18 |
Vested, Weighted Average Grant Date Fair Value | $5.80 | $7 | $7.28 |
Forfeited, Weighted Average Grant Date Fair Value | $5.31 | ' | $5.48 |
Unvested, Ending Balance, Weighted Average Grant Date Fair Value | $5.62 | $5.48 | $5.91 |
Stock_Compensation_Schedule_Of2
Stock Compensation (Schedule Of Stock Grant Activity For RSUs) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Outstanding, Aggregate Intrinsic Value | $8,274,000 | $1,225,000 | ' | $603,000 |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Unvested, Beginning Balance, Shares | 120,000 | 97,000 | 58,000 | ' |
Granted, Shares | 73,000 | 64,000 | 61,000 | ' |
Vested, Shares | -54,000 | -37,000 | -19,000 | ' |
Forfeited, Shares | -10,000 | -4,000 | -3,000 | ' |
Unvested, Ending Balance, Shares | 129,000 | 120,000 | 97,000 | 58,000 |
Vested and expected to vest, Shares | 118,000 | ' | ' | ' |
Outstanding, Weighted Average Remaining Contractual Term in Years | '1 year 6 months 22 days | '1 year 6 months 15 days | '1 year 7 months 28 days | '1 year 10 months 6 days |
Vested and expected to vest, Weighted Average Remaining Contractual Term in Years | '1 year 6 months 18 days | ' | ' | ' |
Outstanding, Aggregate Intrinsic Value | 1,425,000 | 747,000 | 466,000 | 313,000 |
Vested and expected to vest, Aggregate Intrinsic Value | $1,314,000 | ' | ' | ' |
Stock_Compensation_Schedule_Of3
Stock Compensation (Schedule Of Stock Grant Activity For PSUs) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 |
Performance Stock Units (PSUs) [Member] | Performance Stock Units (PSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Unvested, Beginning Balance, Shares | ' | ' | ' | 159,000 | ' |
Granted, Shares | ' | ' | ' | 182,000 | 159,000 |
Vested, Shares | ' | ' | ' | -99,000 | ' |
Forfeited, Shares | ' | ' | ' | -6,000 | ' |
Unvested, Ending Balance, Shares | ' | ' | ' | 236,000 | 159,000 |
Vested and expected to vest, Shares | ' | ' | ' | 224,000 | ' |
Outstanding, Weighted Average Remaining Contractual Term in Years | ' | ' | ' | '9 months 22 days | '11 months 5 days |
Vested and expected to vest, Weighted Average Remaining Contractual Term in Years | ' | ' | ' | '9 months 11 days | ' |
Outstanding, Aggregate Intrinsic Value | $8,274,000 | $1,225,000 | $603,000 | $2,612,000 | $989,000 |
Vested and expected to vest, Aggregate Intrinsic Value | ' | ' | ' | $2,487,000 | ' |
Stock_Compensation_Summary_Of_
Stock Compensation (Summary Of Stock Option Activity) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Outstanding, Beginning Balance, Shares | 2,060,000 | 2,200,000 | 2,281,000 | ' |
Granted, Shares | 162,000 | 159,000 | 599,000 | ' |
Exercised, Shares | -365,000 | -48,000 | -260,000 | ' |
Forfeited, Shares | -49,000 | -2,000 | -100,000 | ' |
Expired, Shares | -14,000 | -249,000 | -320,000 | ' |
Outstanding, Ending Balance, Shares | 1,794,000 | 2,060,000 | 2,200,000 | 2,281,000 |
Vested and expected to vest, Shares | 1,781,000 | ' | ' | ' |
Exercisable, Shares | 1,372,000 | ' | ' | ' |
Outstanding, Beginning Balance, Weighted Average Exercise Price | $6.74 | $6.83 | $6.74 | ' |
Granted, Weighted Average Exercise Price | $6.12 | $5.67 | $5.13 | ' |
Exercised, Weighted Average Exercise Price | $7.48 | $5.64 | $4.53 | ' |
Forfeited, Weighted Average Exercise Price | $5.56 | $7.01 | $5.60 | ' |
Expired, Weighted Average Exercise Price | $6.69 | $7.03 | $5.30 | ' |
Outstanding, Ending Balance, Weighted Average Exercise Price | $6.57 | $6.74 | $6.83 | $6.74 |
Vested and expected to vest, Weighted Average Exercise Price | $6.57 | ' | ' | ' |
Exercisable, Weighted Average Exercise Price | $6.86 | ' | ' | ' |
Outstanding, Weighted Average Remaining Contractual Term in years | '3 years 3 months 22 days | '3 years 7 months 28 days | '4 years | '3 years 5 months 16 days |
Vested and expected to vest, Weighted Average Remaining Contractual Term in Years | '3 years 3 months 15 days | ' | ' | ' |
Exercisable, Weighted Average Remaining Contractual Term in years | '2 years 9 months | ' | ' | ' |
Outstanding, Aggregate Intrinsic Value | $8,274,000 | $1,225,000 | ' | $603,000 |
Vested and expected to vest, Aggregate Intrinsic Value | 8,205,000 | ' | ' | ' |
Exercisable, Aggregate Intrinsic Value | $5,971,000 | ' | ' | ' |
Stock Options [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Granted, Shares | 162,000 | 159,000 | 599,000 | ' |
Stock_Compensation_Summary_Of_1
Stock Compensation (Summary Of Other Information Concerning Stock Options) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Stock Compensation [Abstract] | ' | ' | ' |
Weighted-average fair value of options granted | $2.54 | $2.67 | $2.54 |
Intrinsic value of options exercised | $673,000 | $10,000 | $261,000 |
Stock_Compensation_Schedule_Of4
Stock Compensation (Schedule Of Weighted-Average Assumptions Used To Determine The Fair Value Of Options) (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Stock Options [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected life of options | '4 years 3 months 18 days | '4 years 3 months 18 days | '4 years |
Expected stock price volatility | 60.00% | 60.00% | 65.00% |
Dividends | 1.91% | ' | ' |
Risk-free interest rate | 0.70% | 0.71% | 1.25% |
ESPP Options [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected life of options | '6 months | '6 months | '6 months |
Expected stock price volatility | 39.00% | 48.00% | 39.00% |
Dividends | 1.59% | ' | ' |
Risk-free interest rate | 0.13% | 0.12% | 0.14% |
Stock_Compensation_Summary_Of_2
Stock Compensation (Summary Of Stock Compensation Expenses) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock compensation expense | $3,468 | $3,376 | $3,014 |
RSA, RSU, And PSU Expense [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock compensation expense | 2,616 | 2,204 | 1,408 |
Stock Option And ESPP Option Expense [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock compensation expense | $852 | $1,172 | $1,606 |
Income_Per_Common_Share_Comput
Income Per Common Share (Computation Of Basic And Diluted Income (Loss) Per Common Share) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Income (Loss) Per Common Share [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Net income | $9,026 | [1] | $3,169 | $1,785 | $2,192 | $2,083 | $1,538 | $3,334 | $991 | $1,866 | $2,019 | $1,820 | $1,666 | $16,172 | $7,946 | $7,371 | |||
Net income allocated to common shareholders, basic | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,805 | 7,766 | 7,222 | ||||
Basic weighted-average common shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 26,885,000 | 26,967,000 | 27,441,000 | ||||
Basic income per common share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.59 | $0.29 | $0.26 | ||||
Net income allocated to common shareholders, diluted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,813 | 7,768 | 7,224 | ||||
Effect of dilutive stock options and awards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 813,000 | [2] | 444,000 | [2] | 318,000 | [2] | |
Diluted weighted-average common shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27,698,000 | 27,411,000 | 27,759,000 | ||||
Diluted income per common share | $0.31 | [1] | $0.11 | $0.06 | $0.08 | $0.07 | $0.06 | $0.12 | $0.04 | $0.07 | $0.07 | $0.06 | $0.06 | $0.57 | $0.28 | $0.26 | |||
Antidilutive securities excluded from computation of earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 656,000 | 1,700,000 | 2,000,000 | ||||
Basic [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Income (Loss) Per Common Share [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Net income allocated to participating securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -367 | -180 | -149 | ||||
Diluted [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Income (Loss) Per Common Share [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Net income allocated to participating securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($359) | ($178) | ($147) | ||||
[1] | The fourth quarter 2013 net income and income per common share-diluted includes the favorable effect of a $12.7 million pre-tax gain on the sale of an investment in the common stock of Medafor, Inc. as a result of C.R. Bard, Inc. completing its acquisition of the outstanding common shares of Medafor, Inc. and the unfavorable effect of a $3.2 million other than temporary investment impairment as a result of the impairment and write-down of the Companybs investment in ValveXchange preferred stock. | ||||||||||||||||||
[2] | The Company excluded stock options from the calculation of diluted weighted-average common shares outstanding if the per share value, including the sum of (i) the exercise price of the options and (ii) the amount of the compensation cost attributed to future services and not yet recognized, was greater than the average market price of the shares, because the inclusion of these stock options would be antidilutive to income per common share. Accordingly, stock options to purchase 656,000, 1.7 million, and 2.0 million, shares for the years ended December 31, 2013, 2012, and 2011, respectively, were excluded from the calculation of diluted weighted-average common shares outstanding. |
Transactions_With_Related_Part1
Transactions With Related Parties (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Related Party Transaction [Line Items] | ' | ' | ' |
Investment banking services from related party | $0 | $0 | $818,000 |
Member Of Board Of Directors [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Repurchases of common stock | 321,000 | 794,000 | 2,900,000 |
Revenue from related parties | 353,000 | 267,000 | 198,000 |
Purchases from related party transactions | 47,000 | 22,000 | 45,000 |
Son Of Member Of Board Of Directors [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Revenue from related parties | $345,000 | $312,000 | $219,000 |
Maximum [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Percentage of commisions included in stock repurchases | 1.00% | 1.00% | 1.00% |
Segment_And_Geographic_Informa2
Segment And Geographic Information (Revenues, Cost Of Services And Products, And Gross Margins For Operating Segments) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
segment | ||||||||||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of reportable segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | |||
Total revenues | $35,457 | $36,250 | $33,520 | $35,536 | $32,800 | $33,429 | $33,188 | $32,301 | $30,397 | $29,654 | $29,379 | $30,196 | $140,763 | $131,718 | $119,626 | |||
Total cost of preservation services and products | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,377 | 46,700 | 43,782 | |||
Total gross margin | 22,282 | 23,349 | 21,479 | 23,276 | 21,045 | 21,310 | 21,371 | 21,292 | 19,375 | 18,912 | 19,053 | 18,504 | 90,386 | 85,018 | 75,844 | |||
Percent of long-lived assets held in U.S. | 95.00% | ' | ' | ' | 95.00% | ' | ' | ' | ' | ' | ' | ' | 95.00% | 95.00% | ' | |||
Goodwill allocated entirely to Medical Devices segment | 11,365 | ' | ' | ' | 11,365 | ' | ' | ' | ' | ' | ' | ' | 11,365 | 11,365 | ' | |||
Medical Devices [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 76,194 | 67,496 | 59,387 | |||
Total cost of preservation services and products | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,147 | 11,380 | 9,442 | |||
Total gross margin | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 61,047 | 56,116 | 49,945 | |||
Preservation Services [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 64,498 | 63,603 | 59,793 | |||
Total cost of preservation services and products | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35,230 | 35,320 | 34,340 | |||
Total gross margin | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 29,268 | 28,283 | 25,453 | |||
Other [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 71 | [1] | 619 | [1] | 446 | [1] |
Total gross margin | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $71 | [1] | $619 | [1] | $446 | [1] |
[1] | For the years ended December 31, 2013, 2012, and 2011 the bOtherb designation includes grant revenue. |
Segment_And_Geographic_Informa3
Segment And Geographic Information (Summary Of Net Revenues By Product) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Product Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total revenues | $35,457 | $36,250 | $33,520 | $35,536 | $32,800 | $33,429 | $33,188 | $32,301 | $30,397 | $29,654 | $29,379 | $30,196 | $140,763 | $131,718 | $119,626 | |||
BioGlue And BioFoam [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Product Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 58,004 | 53,211 | 49,455 | |||
PerClot [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Product Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,494 | 3,078 | 2,528 | |||
HemoStase [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Product Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,699 | |||
Revascularization Technologies [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Product Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,965 | 8,092 | 5,705 | |||
HeRO Graft [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Product Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,731 | 3,115 | ' | |||
Total Products [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Product Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 76,194 | 67,496 | 59,387 | |||
Cardiac Tissue [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Product Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 29,523 | 29,756 | 26,618 | |||
Vascular Tissue [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Product Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 34,975 | 33,847 | 33,175 | |||
Total Preservation Services [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Product Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 64,498 | 63,603 | 59,793 | |||
Other [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Product Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $71 | [1] | $619 | [1] | $446 | [1] |
[1] | For the years ended December 31, 2013, 2012, and 2011 the bOtherb designation includes grant revenue. |
Segment_And_Geographic_Informa4
Segment And Geographic Information (Schedule Of Net Revenues By Geographic Location) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | $35,457 | $36,250 | $33,520 | $35,536 | $32,800 | $33,429 | $33,188 | $32,301 | $30,397 | $29,654 | $29,379 | $30,196 | $140,763 | $131,718 | $119,626 |
U.S. [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 109,325 | 103,804 | 95,975 |
International [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $31,438 | $27,914 | $23,651 |
Selected_Quarterly_Financial_I2
Selected Quarterly Financial Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
REVENUE | $35,457,000 | $36,250,000 | $33,520,000 | $35,536,000 | $32,800,000 | $33,429,000 | $33,188,000 | $32,301,000 | $30,397,000 | $29,654,000 | $29,379,000 | $30,196,000 | $140,763,000 | $131,718,000 | $119,626,000 | |
GROSS MARGIN | 22,282,000 | 23,349,000 | 21,479,000 | 23,276,000 | 21,045,000 | 21,310,000 | 21,371,000 | 21,292,000 | 19,375,000 | 18,912,000 | 19,053,000 | 18,504,000 | 90,386,000 | 85,018,000 | 75,844,000 | |
NET INCOME | 9,026,000 | [1] | 3,169,000 | 1,785,000 | 2,192,000 | 2,083,000 | 1,538,000 | 3,334,000 | 991,000 | 1,866,000 | 2,019,000 | 1,820,000 | 1,666,000 | 16,172,000 | 7,946,000 | 7,371,000 |
INCOME (LOSS) PER COMMON SHARE - DILUTED | $0.31 | [1] | $0.11 | $0.06 | $0.08 | $0.07 | $0.06 | $0.12 | $0.04 | $0.07 | $0.07 | $0.06 | $0.06 | $0.57 | $0.28 | $0.26 |
Gain on sale of Medafor investment | 12,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,742,000 | ' | ' | |
Other than temporary investment impairment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,229,000 | 340,000 | ' | |
Medafor Inc. [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Gain on sale of Medafor investment | 12,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Series A Preferred Stock [Member] | ValveXchange, Inc. [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Other than temporary investment impairment | $3,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
[1] | The fourth quarter 2013 net income and income per common share-diluted includes the favorable effect of a $12.7 million pre-tax gain on the sale of an investment in the common stock of Medafor, Inc. as a result of C.R. Bard, Inc. completing its acquisition of the outstanding common shares of Medafor, Inc. and the unfavorable effect of a $3.2 million other than temporary investment impairment as a result of the impairment and write-down of the Companybs investment in ValveXchange preferred stock. |