Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 10, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Central Index Key | 784,199 | ||
Entity Registrant Name | CRYOLIFE INC | ||
Trading Symbol | cry | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Common Stock, Shares Outstanding | 32,980,754 | ||
Entity Public Float | $ 360,993,140 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 56,642 | $ 37,588 |
Restricted securities | 699 | 830 |
Receivables: | ||
Trade accounts, net | 27,769 | 23,419 |
Other | 2,327 | 3,253 |
Total receivables | 30,096 | 26,672 |
Inventories | 26,293 | 14,643 |
Deferred preservation costs | 30,688 | 24,741 |
Prepaid expenses and other | 2,815 | 5,189 |
Total current assets | 147,233 | 109,663 |
Property and equipment, net: | ||
Equipment and software | 37,086 | 28,608 |
Furniture and fixtures | 4,670 | 4,483 |
Leasehold improvements | 31,981 | 30,902 |
Total property and equipment | 73,737 | 63,993 |
Less accumulated depreciation and amortization | 55,235 | 52,509 |
Net property and equipment | 18,502 | 11,484 |
Other assets: | ||
Restricted cash | 5,000 | |
Goodwill | 78,294 | 11,365 |
Patents, less accumulated amortization of $2,702 in 2016 and $2,664 in 2015 | 1,008 | 1,417 |
Trademarks and other intangibles, less accumulated amortization of $10,733 in 2016 and $7,997 in 2015 | 65,633 | 18,480 |
Deferred income taxes | 18,188 | |
Other | 5,470 | 5,582 |
Total assets | 316,140 | 181,179 |
Current liabilities: | ||
Accounts payable | 5,744 | 4,590 |
Accrued compensation | 8,815 | 6,335 |
Accrued procurement fees | 4,806 | 4,445 |
Accrued expenses | 5,054 | 2,847 |
Current portion of long-term debt | 4,562 | |
Other | 1,121 | 1,388 |
Total current liabilities | 30,102 | 19,605 |
Long-term debt | 67,012 | |
Deferred compensation liability | 2,600 | 1,927 |
Deferred rent obligations | 2,355 | 1,735 |
Other | 5,088 | 2,661 |
Total liabilities | 107,157 | 25,928 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Common stock $0.01 par value per share, 75,000 shares authorized, 34,230 shares issued in 2016 and 29,766 shares issued in 2015 | 342 | 298 |
Additional paid-in capital | 187,061 | 142,888 |
Retained earnings | 34,143 | 23,365 |
Accumulated other comprehensive loss | (429) | (76) |
Treasury stock at cost, 1,356 shares in 2016 and 1,265 shares in 2015 | (12,134) | (11,224) |
Total shareholders' equity | 208,983 | 155,251 |
Total liabilities and shareholders' equity | $ 316,140 | $ 181,179 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Other assets noncurrent: | ||
Trademarks and other intangibles, accumulated amortization | $ 10,733 | $ 7,997 |
Shareholders' equity: | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 34,230,000 | 29,766,000 |
Treasury stock at cost, shares | 1,356,000 | 1,265,000 |
Series A Junior Participating Preferred Stock [Member] | ||
Shareholders' equity: | ||
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 0 | 0 |
Convertible Preferred Stock [Member] | ||
Shareholders' equity: | ||
Preferred stock, shares authorized | 460,000 | 460,000 |
Preferred stock, shares issued | 0 | 0 |
Patents [Member] | ||
Other assets noncurrent: | ||
Accumulated amortization | $ 2,702 | $ 2,664 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations And Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Revenues: | ||||
Products | $ 113,992 | $ 83,081 | $ 81,883 | |
Preservation services | 66,388 | 62,817 | 62,758 | |
Total revenues | 180,380 | 145,898 | 144,641 | |
Cost of products and preservation services: | ||||
Products | 28,033 | 18,663 | 17,167 | |
Preservation services | 33,448 | 36,516 | 36,183 | |
Total cost of products and preservation services | 61,481 | 55,179 | 53,350 | |
Gross margin | 118,899 | 90,719 | 91,291 | |
Operating expenses: | ||||
General, administrative, and marketing | 91,548 | 74,929 | 73,754 | |
Research and development | 13,446 | 10,436 | 8,699 | |
Total operating expenses | 104,994 | 85,365 | 82,453 | |
Gain from sale of business components | (7,915) | |||
Operating income | 21,820 | 5,354 | 8,838 | |
Interest expense | 3,043 | (62) | 175 | |
Interest income | (72) | (45) | (50) | |
Gain on sale of Medafor investment | (891) | (530) | ||
Other expense, net | 437 | 484 | 540 | |
Income before income taxes | 18,412 | 5,868 | 8,703 | |
Income tax expense | 7,634 | 1,863 | 1,381 | |
Net income | $ 10,778 | $ 4,005 | $ 7,322 | |
Income per common share: | ||||
Basic | $ 0.33 | $ 0.14 | $ 0.26 | |
Diluted | [1] | 0.32 | 0.14 | 0.25 |
Dividends declared per common share | $ 0 | $ 0.120 | $ 0.118 | |
Weighted-average common shares outstanding: | ||||
Basic | 31,855 | 27,744 | 27,379 | |
Diluted | 32,822 | 28,542 | 28,313 | |
Other comprehensive (loss) income | $ (353) | $ 45 | $ (128) | |
Comprehensive income | $ 10,425 | $ 4,050 | $ 7,194 | |
[1] | 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 1,000, 710,000, and 335,000 shares for the years ended December 31, 2016, 2015, and 2014, respectively, were excluded from the calculation of diluted weighted-average common shares outstanding. |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net cash flows from operating activities: | |||
Net income | $ 10,778,000 | $ 4,005,000 | $ 7,322,000 |
Adjustments to reconcile net income to net cash from operating activities: | |||
Gain from sale of business components | (7,915,000) | ||
Gain on sale of Medafor investment | (891,000) | (530,000) | |
Depreciation and amortization | 8,384,000 | 5,863,000 | 6,028,000 |
Non-cash compensation | 6,328,000 | 5,089,000 | 3,436,000 |
Write-down of inventories and deferred preservation costs | 1,364,000 | 1,341,000 | 680,000 |
Deferred income taxes | 595,000 | 3,681,000 | 178,000 |
Other non-cash adjustments to income | 268,000 | 268,000 | (474,000) |
Changes in operating assets and liabilities: | |||
Receivables | 4,142,000 | (3,809,000) | (4,556,000) |
Inventories and deferred preservation costs | (9,460,000) | (2,262,000) | (1,131,000) |
Prepaid expenses and other assets | 515,000 | (1,187,000) | (2,771,000) |
Accounts payable, accrued expenses, and other liabilities | 4,720,000 | (656,000) | (64,000) |
Net cash flows provided by operating activities | 19,719,000 | 11,442,000 | 8,118,000 |
Net cash flows from investing activities: | |||
Acquisition of PhotoFix technology | (1,226,000) | ||
Acquisition of French distribution business | 1,349,000 | ||
Capital expenditures | (6,198,000) | (3,490,000) | (4,310,000) |
Proceeds from sale of business components | 19,795,000 | ||
Proceeds from sale of Medafor investment | 891,000 | 530,000 | |
Decrease in restricted cash | 5,000,000 | ||
Sales and maturities of restricted securities and investments | 1,067,000 | 1,157,000 | 639,000 |
Purchases of restricted securities and investments | (1,014,000) | (1,085,000) | (1,208,000) |
Other | (126,000) | (610,000) | (1,004,000) |
Net cash flows used in investing activities | (73,854,000) | (4,486,000) | (5,353,000) |
Net cash flows from financing activities: | |||
Proceeds from issuance of term loan | 75,000,000 | ||
Repayment of term loan | (1,406,000) | ||
Payment of debt issuance costs | (2,289,000) | ||
Proceeds from exercise of stock options and issuance of common stock | 2,203,000 | 1,526,000 | 2,675,000 |
Cash dividends paid | (3,408,000) | (3,295,000) | |
Repurchases of common stock | (5,588,000) | ||
Redemption and repurchase of stock to cover tax withholdings | (697,000) | (1,386,000) | (1,483,000) |
Other | 617,000 | 458,000 | 738,000 |
Net cash flows provided by (used in) financing activities | 73,428,000 | (2,810,000) | (6,953,000) |
Effect of exchange rate changes on cash | (239,000) | 67,000 | (80,000) |
Increase (decrease) in cash and cash equivalents | 19,054,000 | 4,213,000 | (4,268,000) |
Cash and cash equivalents, beginning of year | 37,588,000 | 33,375,000 | 37,643,000 |
Cash and cash equivalents, end of year | 56,642,000 | $ 37,588,000 | $ 33,375,000 |
On-X [Member] | |||
Net cash flows from investing activities: | |||
Acquisition of business, net of cash acquired | $ (91,152,000) |
Consolidated Statements Of Shar
Consolidated Statements Of Shareholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Total |
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) | ||||
Net income | 7,322 | 7,322 | ||||
Other comprehensive income (loss) | (128) | (128) | ||||
Comprehensive income | 7,194 | |||||
Cash dividends paid | (3,295) | (3,295) | ||||
Equity compensation | $ 6 | 3,691 | 3,697 | |||
Equity compensation, shares | 642,000 | |||||
Exercise of options | $ 3 | 2,150 | $ (191) | 1,962 | ||
Exercise of options, shares | 297,000 | (18,000) | ||||
Employee stock purchase plan | $ 1 | 712 | $ 713 | |||
Employee stock purchase plan, shares | 111,000 | 111,000 | ||||
Excess tax benefit/shortfall | 738 | $ 738 | ||||
Repurchase of common stock | $ (5,588) | (5,588) | ||||
Repurchase of common stock, shares | (585,000) | |||||
Redemption and repurchase of stock to cover tax withholdings | (649) | $ (834) | (1,483) | |||
Redemption and repurchase of stock to cover tax withholdings, shares | (65,000) | (85,000) | ||||
Balance at Dec. 31, 2014 | $ 292 | 135,227 | 22,768 | (121) | $ (9,481) | 148,685 |
Balance, shares at Dec. 31, 2014 | 29,229,000 | (1,101,000) | ||||
Net income | 4,005 | 4,005 | ||||
Other comprehensive income (loss) | 45 | 45 | ||||
Comprehensive income | 4,050 | |||||
Cash dividends paid | (3,408) | (3,408) | ||||
Equity compensation | $ 3 | 5,323 | 5,326 | |||
Equity compensation, shares | 271,000 | |||||
Exercise of options | $ 2 | 1,837 | $ (1,002) | 837 | ||
Exercise of options, shares | 248,000 | (93,000) | ||||
Employee stock purchase plan | $ 1 | 688 | $ 689 | |||
Employee stock purchase plan, shares | 78,000 | 78,000 | ||||
Excess tax benefit/shortfall | 458 | $ 458 | ||||
Redemption and repurchase of stock to cover tax withholdings | (645) | $ (741) | (1,386) | |||
Redemption and repurchase of stock to cover tax withholdings, shares | (60,000) | (71,000) | ||||
Balance at Dec. 31, 2015 | $ 298 | 142,888 | 23,365 | (76) | $ (11,224) | 155,251 |
Balance, shares at Dec. 31, 2015 | 29,766,000 | (1,265,000) | ||||
Net income | 10,778 | 10,778 | ||||
Other comprehensive income (loss) | (353) | (353) | ||||
Comprehensive income | 10,425 | |||||
Equity compensation | $ 3 | 6,599 | 6,602 | |||
Equity compensation, shares | 342,000 | |||||
Exercise of options | $ 3 | 2,083 | $ (712) | 1,374 | ||
Exercise of options, shares | 372,000 | (69,000) | ||||
Employee stock purchase plan | $ 1 | 828 | $ 829 | |||
Employee stock purchase plan, shares | 90,000 | 90,000 | ||||
Excess tax benefit/shortfall | 606 | $ 606 | ||||
Redemption and repurchase of stock to cover tax withholdings | (499) | $ (198) | (697) | |||
Redemption and repurchase of stock to cover tax withholdings, shares | (44,000) | (22,000) | ||||
Stock issued for On-X Transaction | $ 37 | 34,556 | 34,593 | |||
Stock issued for On-X Transaction, shares | 3,704,000 | |||||
Balance at Dec. 31, 2016 | $ 342 | $ 187,061 | $ 34,143 | $ (429) | $ (12,134) | $ 208,983 |
Balance, shares at Dec. 31, 2016 | 34,230,000 | (1,356,000) |
Consolidated Statements Of Sha7
Consolidated Statements Of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidated Statements Of Shareholders' Equity [Abstract] | ||
Cash dividends paid per share | $ 0.120 | $ 0.118 |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
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”), incorporated in 1984 in Florida, is a leader in medical device manufacturing, processing, and distribution of medical devices and implantable human tissues used in cardiac surgical procedures. CryoLife’s medical devices include: BioGlue ® Surgical Adhesive (“BioGlue”); BioFoam ® Surgical Matrix (“BioFoam”); On-X valves and surgical products; the CardioGenesis cardiac laser therapy product line, which includes a laser console system and single-use, fiber-optic handpieces, that are used for the treatment of coronary artery disease in patients with severe angina; PerClot ® , an absorbable powdered hemostat, which the Company distributes internationally for Starch Medical, Inc. (“SMI”); and PhotoFix TM , a bovine pericardial patch stabilized using a dye-mediated photo-fixation process that requires no glutaraldehyde . 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 (“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, inventory, 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, On-X products, CardioGenesis cardiac laser therapy handpieces and accessories, PerClot, PhotoFix, and other medical devices, are typically recognized at the time the product is shipped, at which time title passes to the customer, and there are no further performance obligations. Revenues from consignment are recognized when the medical device is implanted. The Company recognizes revenues for preservation services when services are completed and tissue is shipped to the customer. 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 the sales of domestic laser consoles 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 $384,000 , $521,000 , and $821,000 for the years ended December 31, 2016 , 2015 , and 2014 , 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), performance stock awards (“PSA”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 RSAs, PSAs, RSUs, PSUs, and stock options 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, PSAs, RSUs, and PSUs based on the stock price on the date of grant. The Company expenses the related compensation cost of RSAs, PSAs, 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 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 when the Company’s quarterly dividends were discontinued after the fourth quarter of 2015. 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. The period expense for the Company’s stock compensation is determined based on the valuations discussed above 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 later adjusted to reflect actual forfeitures. Income Per Common Share Income per common share is computed using the two class method, which requires the Company to include unvested RSAs and PSAs 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 Cash dividends approved by the Company’s Board of Directors were paid every three months in the amount of $0.0275 per share in the first quarter of 2014 and $0.03 in the remainder of 2014 and in 2015. In December 2015 the Board of Directors undertook a review of the Company’s dividend policy and determined that it would be in the best interest of the shareholders to discontinue dividend payments for the foreseeable future. The Company did not pay quarterly dividends in 2016 and does not currently anticipate paying out further quarterly dividends. Financial Instruments The Company’s financial instruments include cash equivalents, marketable securities, restricted securities, accounts receivable, notes receivable, accounts payable, debt obligations, contingent consideration, and derivatives. 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 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, 2016 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; applying accounting for business combinations; and allocating goodwill to divested components of a business. 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. Cash Flow Supplemental Disclosures Supplemental disclosures of cash flow information for the years ended December 31 (in thousands): 2016 2015 2014 Cash paid during the year for: Interest $ 2,446 $ 1 $ 34 Income taxes 2,501 145 3,450 Non-cash investing and financing activities: Issuance of common stock for acquisition of On-X intangible assets $ 34,593 $ -- $ -- 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, investments are recorded at cost, with subsequent dividends received recognized as income. Cost method investments are reviewed for impairment if factors indicate that a decrease in the value of the investment has occurred. The Company reviews its contracts to determine if they require any restrictions to cash or investments. If there is a contractual agreement restricting the availability of the Company’s cash or investments, the Company will classify these amounts as current or long-term restricted cash or investments. Accounts and Notes 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 and the credit worthiness of the customer, as well as the increased risks related to international customers and large distributors. The Company determines the allowance for doubtful accounts based upon specific reserves for known collection issues, as well as a non-specific reserve based upon aging buckets. The Company charges off uncollectable amounts against the reserve in the period in which it determines they are uncollectible. The Company’s accounts receivable balances were reported net of allowance for doubtful accounts of $503,000 and $232,000 as of December 31, 2016 and 2015 , respectively. The Company may lend money from time-to-time through a note receivable, which may be made in conjunction with a longer term strategic investment in a medical device company, as approved by the Board of Directors. The Company assesses the likelihood of collection of its notes receivable based on a number of factors, including past transaction history, credit worthiness, and the liquidity position of the recipient as well as the expected value of any collateral. The Company’s notes receivable balance was zero as of December 31, 2016 and 2015 , respectively . See Note 8 for further discussion of the Company’s note receivable from ValveXchange, Inc. (“ValveXchange”). Inventories Inventories are comprised of BioGlue; BioFoam; On-X; PerClot; CardioGenesis cardiac laser therapy laser consoles, handpieces, and accessories; PhotoFix; other medical devices; supplies; and raw materials. In 2015, inventories also included HeRO Grafts and ProCol. Inventories are valued at the lower of cost or market on a first ‑in, first ‑out basis. Typcially, upon shipment, or upon implant of a medical device on consignment, revenue is recognized and the related inventory costs are expensed as cost of products. Cost of products also includes, as applicable, lower of cost or market write-downs and impairments for products not deemed to be recoverable and, 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 manufactured under contract 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 $467,000 , $858,000 , and $140,000 for the years ended December 31, 2016 , 2015 , and 2014 , respectively. The 2015 write-down is primarily related to the write-down of PerClot Topical inventory following the Company’s cessation of marketing, sales, and distribution of PerClot Topical in the U.S. See Note 9 for further discussion of PerClot Topical. Deferred Preservation Costs Deferred preservation costs includes costs of cardiac and vascular tissues available for shipment, tissues currently in active processing, and tissues held in quarantine pending release to implantable status. 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. Upon shipment of 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 $897,000 , $483,000 , and $540,000 for the years ended December 31, 2016 , 2015 , and 2014 , respectively, due primarily to tissues not expected to ship prior to the expiration date of the packaging. 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): 2016 2015 2014 Depreciation expense $ 3,958 $ 3,728 $ 4,001 Goodwill and Other Intangible Assets The Company’s intangible assets consist of goodwill, patents, trademarks, and other intangible assets, as discussed in Note 11 . The Company’s goodwill is attributable to a segment or segments of the Company’s business, as appropriate, as the related acquired business that generated the goodwill is integrated into the Company’s operations. Upon divestiture of a component of the Company’s business, the goodwill related to the operating segment is allocated to the divested business using the relative fair value allocation method. 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, 2016 , 2015 , and 2014 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, 2016 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, 2016 and 2015, 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 includes these costs as part of deferred preservation costs, as discussed above. 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 14 . 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. Debt Issuance Costs Debt issuance costs related to the Company’s term loan and line of credit are capitalized and reported net of the current and long-term debt or as a prepaid asset when there are no outstanding borrowings. The Company amortizes debt issuance costs to interest expense on its term loan using the effective interest method over the life of the debt agreement. The Company amortizes debt issuance costs to interest expense on its line of credit on a straight line basis over the life of the debt agreement. Liability Claims In the normal course of business, the Company is made aware of adverse events involving its products and tissues. Future adverse events could ultimately give rise to a lawsuit against the Company, and liability claims may be asserted against the Company in the future based on past 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 various factors, including, but not limited to, Company specific conditions, uncertainties surrounding the assumptions used, and the scarcity of industry data directly relevant to the Company's business activ |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Financial Instruments [Abstract] | |
Financial Instruments | 2. Financial Instruments A summary of financial instruments measured at fair value is as follows (in thousands): December 31, 2016 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 3,466 $ -- $ -- $ 3,466 Restricted securities: Money market funds 699 -- -- 699 Total assets $ 4,165 $ -- $ -- $ 4,165 December 31, 2015 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 549 $ -- $ -- $ 549 Restricted securities: Money market funds 830 -- -- 830 Total assets $ 1,379 $ -- $ -- $ 1,379 The Company used prices quoted from its investment management companies to determine the Level 1 valuation of its investments in money market funds. |
Cash Equivalents And Restricted
Cash Equivalents And Restricted Cash And Securities | 12 Months Ended |
Dec. 31, 2016 | |
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 December 31, 2016 Cost Basis Gains (Losses) Value Cash equivalents: Money market funds $ 3,466 $ -- $ 3,466 Restricted securities: Money market funds 699 -- 699 Unrealized Estimated Holding Market December 31, 2015 Cost Basis Gains (Losses) Value Cash equivalents: Money market funds $ 549 $ -- $ 549 Restricted cash and securities: Cash 5,000 -- 5,000 Money market funds 830 -- 830 As of December 31, 2016 and 2015 $699,000 and $830,000 , 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, 2015 $5.0 million of the Company’s cash was designated as long-term restricted cash due to a financial covenant requirement under the Company’s debt agreement. As of December 31, 2016 the Company no longer had a financial covenant for restricted cash under the Company’s amended debt agreement. See further discussion of the Company’s debt agreements in Note 13 . There were no gross realized gains or losses on cash equivalents or restricted securities for the years ended December 31, 2016 , 2015 , and 2014 . As of December 31, 2015 $5.0 million of the Company’s restricted cash had no maturity date. As of December 31, 2016 $490,000 of the Company’s restricted securities had a maturity date within three months and $209,000 had a maturity date between three months and one year. As of December 31, 2015 $595,000 of the Company’s restricted securities had a maturity date within three months and $235,000 of the Company’s restricted securities had a maturity date between three months and one year. |
Acquisition Of On-X Life Techno
Acquisition Of On-X Life Technologies | 12 Months Ended |
Dec. 31, 2016 | |
Acquisition Of On-X Life Technologies [Abstract] | |
Acquisition Of On-X Life Technologies | 4. Acquisition of On-X Life Technologies Overview On December 22, 2015 the Company entered into an Agreement and Plan of Merger (“On-X Agreement”) to acquire On-X Life Technologies Holdings, Inc. (“On-X”), an Austin, Texas-based, privately held mechanical heart valve company, for approximately $130.0 million, subject to certain adjustments. The transaction closed on January 20, 2016, and On-X is being operated as a wholly owned subsidiary of CryoLife. The On-X catalogue of products includes the On-X prosthetic aortic and mitral heart valves and the On-X ascending aortic prosthesis (“AAP”). On-X also distributes CarbonAid CO 2 diffusion catheters, manufactures Chord-X ePTFE sutures for mitral chordal replacement, and offers pyrolytic carbon coating services to other medical device manufacturers. CryoLife believes that the On-X products fit well into its product portfolio of medical devices for cardiac surgery and that the Company is capitalizing on the significant opportunity for CryoLife’s sales team to leverage their strong relationships with cardiac surgeons to introduce and to expand utilization of the On-X valves in the U.S. and internationally. Accounting for the Transaction The purchase price of the On-X transaction totaled approximately $128.2 million, consisting of cash of $93.6 million and 3,703,699 shares of CryoLife common stock, with a value of $34.6 million as determined on the date of the closing. The Company recorded an allocation of the $128.2 million purchase price to On-X’s tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values as of January 20, 2016 . Goodwill was 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, 2016 is as follows (in thousands): Opening Balance Sheet Cash and cash equivalents $ 2,472 Receivables 6,826 Inventories 12,889 Intangible assets 53,950 Goodwill 68,229 Other assets 6,891 Liabilities assumed (23,040) Total purchase price $ 128,217 CryoLife incurred transaction and integration costs of $ 7.4 million for the year ended December 31, 2016 related to the acquisition, which include, among other costs, expenses related to the termination of international and domestic distribution agreements. 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. The Company paid approximately $10 million of the purchase price into an escrow account upon closing of the On-X transaction. The Company is currently negotiating with the shareholder representative of On-X concerning the resolution of these escrow funds. Pro Forma Results On-X revenues of $34.2 million from the date of acquisition through December 31, 2016 are included in the Consolidated Statements of Operations and Comprehensive Income. The Company’s pro forma results of operations for the years ended December 31, 2016 and 2015, assuming the On-X acquisition had occurred as of January 1, 2015, are presented for comparative purposes below. These amounts are based on available information of the results of operations of On-X 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, 2014. 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, 2016 2015 Total revenues $ 182,007 $ 179,266 Net income (loss) 17,692 (4,787) Pro forma income (loss) per common share - basic $ 0.54 $ (0.15) Pro forma income (loss) per common share - diluted $ 0.53 $ (0.15) Pro forma net income (loss) was calculated using a normalized tax rate of approximately 38% . |
Sales Of Business Components
Sales Of Business Components | 12 Months Ended |
Dec. 31, 2016 | |
Sales Of Business Components [Abstract] | |
Sales Of Business Components | 5. Sales of Business Components Acquisition and Divestiture of HeRO Graft Product Line On May 16, 2012 CryoLife completed its acquisition of Hemosphere, a privately held company, and its Hemodialysis Reliable Outflow Graft (“HeRO ® Graft”) product line for a total purchase price of approximately $22.0 million, net of $3.2 million cash acquired. CryoLife used cash on hand to fund the transaction and operated Hemosphere as a wholly owned subsidiary until December 31, 2014, when it was merged into the CryoLife, Inc. parent entity. The HeRO Graft is a proprietary graft-based solution for ESRD hemodialysis patients with limited access options and central venous obstruction. 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. This fair value measurement was based on unobservable inputs, including management estimates and assumptions about future revenues, and was, therefore, classified as Level 3 within the fair value hierarchy presented in Note 2. The Company remeasured this liability at each reporting date and recorded 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. As of December 31, 2014 the Company reviewed the full year revenue performance of Hemosphere for 2014 and 2013, and reviewed its 2015 annual budgets, which were updated in the fourth quarter of 2014. As a result of this review, as of December 31, 2014 the Company believed that achievement of the minimum revenue target to trigger payment was remote, and, therefore, estimated the fair value of the contingent consideration to be zero . The Company recorded gains of zero for the years ended December 31, 2016 and 2015 and $1.9 million during the year ended December 31, 2014, on the remeasurement of the contingent consideration liability. The balance of the contingent consideration liability was zero as of December 31, 2016 and 2015. On February 3, 2016 the Company sold its HeRO Graft product line to Merit Medical Systems, Inc. (“Merit”) for $18.5 million in cash (“HeRO Sale”), of which $17.8 million had been received by December 31, 2016. The remaining $740,000 was received i n the first quarter of 2017. Under terms of the agreement, Merit acquired the HeRO Graft product line, including worldwide marketing rights, customer relationships, intellectual property, inventory, and certain property and equipment. The Company continued to manufacture the HeRO Graft under a transition supply agreement until the sales transfer to Merit was completed in the second quarter of 2016. The HeRO Graft product line was included as part of the Company’s Medical Devices segment. The Company recorded a pre-tax gain of approximately $8.8 million on the HeRO Sale. ProCol Distribution Agreement and Divestiture of the ProCol Product Line In 2014 CryoLife acquired the exclusive worldwide distribution rights to ProCol ® Vascular Bioprosthesis (“ProCol”) from Hancock Jaffe Laboratories, Inc. (“Hancock Jaffe”). In accordance with the terms of the agreement with Hancock Jaffe, CryoLife made payments to Hancock Jaffe of $1.7 million during 2014 and $576,000 in January 2015. In exchange for these payments, CryoLife obtained the right to receive a designated amount of ProCol inventory for resale, portions of which the Company received in 2014, 2015, and 2016. CryoLife made additional payments of $1.2 million in the aggregate during 2015 and the first quarter of 2016. As of March 18, 2016 CryoLife had made a total of $3.4 million in payments to Hancock Jaffe and had received $1.7 million in inventory. The remaining $1.7 million in prepayments were settled as part of the ProCol Sale, described below. On March 18, 2016 the Company sold its ProCol ® Vascular Bioprosthesis (“ProCol”) distribution rights and purchase option to LeMaitre Vascular, Inc. (“LeMaitre”) for $2.0 million in cash (“ProCol Sale”), all of which was received by March 31, 2016. Under terms of the agreement, LeMaitre acquired the ProCol related assets, including inventory, customer lists, related marketing assets, and the Company’s purchase option to acquire ProCol. LeMaitre exercised the option to acquire ProCol from Hancock Jaffe Laboratories. The ProCol product was included as part of the Company’s Medical Devices segment. The Company recorded a pre-tax loss of approximately $845,000 on the ProCol Sale. Disclosure of the HeRO Sale and the ProCol Sale Financial Accounting Standards Board (“FASB”) ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, defines the criteria for reporting discontinued operations and requires additional disclosures about discontinued operations. The standard requires that an entity report as a discontinued operation only a disposal that represents a strategic shift in operations that has a major effect on the Company’s operations and financial results. In the first quarter of 2016 the Company completed the HeRO Sale and the ProCol Sale. The Company received cash for these transactions and recorded the results of these sales in March 2016. Therefore, as of March 31, 2016 both transactions met the disposed of by sale criteria under discontinued operations. The Company evaluated the impact of the HeRO Sale and the ProCol Sale on the Company’s business t o determine whether these disposals represent a strategic shift that has, or will have, a major effect on the Company’s financial position, results of operations, or cash flows. As the HeRO Graft and ProCol product lines combined represented less than 10% of total Company revenues for the year ended December 31, 2015 and the Company’s total assets as of December 31, 2015, the Company believes that these transactions did not have a major effect on the Company’s operations and financial condition, either individually or in the aggregate, and therefore the Company did not disclose these transactions as discontinued operations. The combined net gain from the HeRO Sale and ProCol Sale was therefore reported as gain from sale of business components on the Company’s Summary Consolidated Statements of Operations and Comprehensive Income. |
PhotoFix Distribution Agreement
PhotoFix Distribution Agreement And Acquisition | 12 Months Ended |
Dec. 31, 2016 | |
PhotoFix Distribution Agreement And Acquisition [Abstract] | |
PhotoFix Distribution Agreement And Acquisition | 6. PhotoFix Distribution Agreement and Acquisition Overview In 2014 CryoLife entered into an exclusive supply and distribution agreement with Genesee Biomedical, Inc. (“GBI”) to acquire the distribution rights to PhotoFix TM , a bovine pericardial patch stabilized using a dye-mediated photo-fixation process that requires no glutaraldehyde. PhotoFix has received U.S. Food and Drug Administration (“FDA”) 510(k) clearance and is indicated for use in intracardiac repair, including ventricular repair and atrial repair, great vessel repair and suture line buttressing, and pericardial closure. CryoLife believes that PhotoFix fit s well into its product portfolio of medical devices for cardiac surgery. In January 2015 the Company received its initial shipments and launched its distribution of PhotoFix. The agreement between CryoLife and GBI (the “GBI Agreement”) had an initial five -year term and was renewable for two one -year periods at CryoLife’s option. Under the terms of the GBI Agreement, CryoLife purchased PhotoFix inventory for resale at an agreed upon transfer price and had the option, which became effective in March 2015, to acquire the PhotoFix product line from GBI. Accounting for the Transaction On April 13, 2016 the Company exercised its right to acquire the PhotoFix technology from GBI for approximately $2.3 million, of which $1.2 million was paid in cash at closing, approximately $600,000 was previously provided to GBI as an advance under the distribution agreement, and approximately $400,000 is payable to GBI within 18 months of signing or earlier, subject to certain conditions. The Company’s preliminary allocation of the purchase price to the tangible and identifiable intangible assets acquired, based on their estimated fair values resulted in the allocation of the majority of the purchase price to amortizable intangible assets. GBI will continue to manufacture PhotoFix until the Company is able to establish manufacturing operations. |
Direct Sales In France
Direct Sales In France | 12 Months Ended |
Dec. 31, 2016 | |
Direct Sales In France [Abstract] | |
Direct Sales In France | 7. Direct Sales in France In June 2015 CryoLife signed a Business Transfer Agreement with its French distribution partner to facilitate an orderly transition of the Company to a direct sales model in France. In October 2015 the Company completed the acquisition of a portion of the business of its French distribution partner. The Company acquired in the transaction certain intangible assets, including commercial and business information, assignment of contracts, and a non-compete agreement with its former French distribution partner for a purchase price of €1.2 million or $1.3 million . During the third quarter of 2015 the Company established a wholly owned subsidiary in France, CryoLife France SAS, and certain members of the distributor’s sales team who were responsible for selling the Company’s products in France became employees of the Company’s newly created subsidiary. |
Investment In ValveXchange
Investment In ValveXchange | 12 Months Ended |
Dec. 31, 2016 | |
Investment In ValveXchange [Abstract] | |
Investment In ValveXchange | 8. Investment in ValveXchange Preferred Stock Investment In July 2011 the Company purchased shares of series A preferred stock of ValveXchange for approximately $3.5 million. ValveXchange was 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. As ValveXchange’s stock was not actively traded on any public stock exchange, and as the Company’s investment was in preferred stock, the Company initially accounted for this investment using the cost method as a long-term asset, investment in equity securities, on the Company’s Consolidated Balance Sheet. The Company determined that its investment in ValveXchange was fully impaired as of December 31, 2013, and the impairment was other than temporary. As of December 31, 2016 and 2015 the carrying value of the Company’s investment in ValveXchange preferred stock was zero . Loan Agreement In July 2011 the Company entered into an agreement with ValveXchange, as amended, to make available to ValveXchange up to $2.0 million in debt financing through a revolving credit facility (the “Loan”). The Loan included various affirmative and negative covenants, including financial covenant requirements, and would have expired on July 30, 2018 , unless terminated earlier. Amounts under the Loan earned interest at an 8% annual rate and were secured by substantially all of the tangible and intangible assets of ValveXchange. The Company advanced $2.0 million to ValveXchange under this loan in 2012. During the quarter ended December 31, 2014 CryoLife became aware of various factors, including ValveXchange’s inability to secure additional funding, its lack of capital to continue basic operations, and the likelihood of impending default on the Loan. In December 2014 CryoLife notified ValveXchange that it was in breach of the Loan, and in January 2015, after ValveXchange failed to cure this breach, CryoLife accelerated the amounts due under the Loan. In January 2015 ValveXchange informed CryoLife management of its intent to file for bankruptcy, which created substantial uncertainty regarding the disposition of CryoLife’s claim for amounts it is owed under the Loan. Given these circumstances, CryoLife believed that its Loan became fully impaired in the fourth quarter of 2014. As a result, during the three months ended December 31, 2014 the Company recorded other non-operating expense of $2.0 million to write-down its long-term note receivable from ValveXchange. ValveXchange was dissolved in June 2015. The net carrying value of the long-term note receivable was zero as of December 31, 2016 and 2015 . |
Medafor Matters
Medafor Matters | 12 Months Ended |
Dec. 31, 2016 | |
Medafor Matters [Abstract] | |
Medafor Matters | 9. Medafor Matters Investment in Medafor Common Stock In 2009 and 2010 CryoLife purchased shares of common stock in Medafor, a developer and supplier of plant based hemostatic agents. The Company initially recorded its investment using the cost method as a long-term asset, investment in equity securities, on the Company’s Consolidated Balance Sheets. On October 1, 2013 C.R. Bard, Inc., a developer, manufacturer, and marketer of medical technologies in the fields of vascular, urology, oncology, and surgical specialty products (“Bard”), and its subsidiaries completed its acquisition of all outstanding shares of Medafor common stock. The Company received an initial payment of approximately $15.4 million in 2013, $530,000 in 2014, and $891,000 in 2015 for its 2.4 million shares of Medafor common stock. The final release of transaction consideration from escrow is expected to be received in October 2017 and is expected to be nominal. This subsequent payment will be recorded as an additional gain if, and when, received by the Company. Legal Action In April 2014 CryoLife filed a declaratory judgment lawsuit against Bard, and its subsidiaries Davol, Inc. (“Davol”) and Medafor (collectively, “Defendants”), in the District Court for the District of Delaware (the “Court”) . CryoLife requested that the Court declare that CryoLife’s manufacture, use, offer for sale, and sale of PerClot in the U.S. does not, and would not, infringe Bard’s U.S. Patent No. 6,060,461 (the “‘461 Patent”). In addition, CryoLife requested that the Court declare that the claims of the ‘461 Patent are invalid. CryoLife also requested injunctive relief and an award of attorneys’ fees. The lawsuit against the Defendants followed the receipt by CryoLife of a letter from Medafor in September 2012 stating that PerClot, when introduced in the U.S., would infringe the ‘461 Patent when used in accordance with the method published in CryoLife’s literature and with the instructions for use. CryoLife received FDA 510(k) clearance for the sale of PerClot Topical in April 2014 and began distributing this product in August 2014. PerClot Topical is a version of the Company’s PerClot product, which was manufactured by the Company at its headquarters and labeled for use in certain topical indications. CryoLife also received investigational device exemption approval in March 2014 to begin clinical trials for PerClot in certain surgical indications. In August 2014 Medafor filed a counterclaim against CryoLife for infringement of the ‘461 Patent. In September 2014 Medafor filed a motion for a preliminary injunction, asking the Court to enjoin CryoLife’s marketing and sale of PerClot in the U.S. In March 2015 the Court ruled that CryoLife’s declaratory judgment lawsuit against Medafor may proceed but dismissed Bard and Davol from the lawsuit. The Court also granted Medafor’s motion for a preliminary injunction, which prohibited CryoLife from marketing, selling, and distributing PerClot in the U.S. while the litigation proceeded. In March 2015 CryoLife ceased all marketing, sales, and distribution of PerClot in the U.S., including PerClot Topical, in accordance with the Court’s order. In April 2015 CryoLife appealed the Court’s ruling on the preliminary injunction motion to the U.S. Court of Appeals for the Federal Circuit. CryoLife dismissed this appeal in June 2015. On November 18, 2015, the lawsuit was resolved by entry by the Court of the Parties’ Joint Stipulation for Dismissal, which resulted in the dismissal with prejudice of all parties’ claims and counterclaims in the lawsuit, the continuation of the preliminary injunction prohibiting CryoLife from marketing, selling and distributing PerClot in the U.S. until expiration of the ‘461 Patent on February 8, 2019, each party bearing its own attorneys’ fees and costs associated with the lawsuit, and the continuation of the Court’s jurisdiction over the parties to enforce the resolution. |
Inventories And Deferred Preser
Inventories And Deferred Preservation Costs | 12 Months Ended |
Dec. 31, 2016 | |
Inventories And Deferred Preservation Costs [Abstract] | |
Inventories And Deferred Preservation Costs | 10 . Inventories and Deferred Preservation Costs Inventories at December 31, 2016 and 2015 are comprised of the following (in thousands): 2016 2015 Raw materials and supplies $ 9,321 $ 8,590 Work-in-process 3,321 633 Finished goods 13,651 5,420 Total inventories $ 26,293 $ 14,643 Deferred preservation costs at December 31, 2016 and 2015 are comprised of the following (in thousands): 2016 2015 Cardiac tissues $ 15,768 $ 11,722 Vascular tissues 14,920 13,019 Total deferred preservation costs $ 30,688 $ 24,741 The Company maintains consignment inventory of its On-X heart valves at domestic and international hospital locations to facilitate usage. The Company retains title to this consignment inventory until the valve is implanted, at which time the Company invoices t he hospital. As of December 31, 2016 the Company had $4.9 million in consignment inventory, with approximately 80% in domestic locations and 20% in foreign locations. |
Goodwill And Other Intangible A
Goodwill And Other Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill And Other Intangible Assets [Abstract] | |
Goodwill And Other Intangible Assets | 11. Goodwill and Other Intangible Assets Indefinite Lived Intangible Assets As of December 31, 2016 and 2015 the carrying values of the Company’s indefinite lived intangible assets are as follows (in thousands): 2016 2015 Goodwill $ 78,294 $ 11,365 Procurement contracts and agreements 2,013 2,013 Trademarks 841 860 Total indefinite lived intangible assets $ 81,148 $ 14,238 Based on its experience with similar agreements, the Company believes that its acquired procurement contracts and agreements have indefinite useful lives, as the Company expects to continue to renew these contracts for the foreseeable future. The Company believes that its trademarks have indefinite useful lives as the Company currently anticipates that these trademarks will contribute to cash flows of the Company indefinitely. As of December 31, 2016 and 2015 the value of the Company’s goodwill, all of which is related to its Medical Devices segment, is as follows (in thousands): 2016 2015 Balance as of January 1, $ 11,365 $ 11,365 Goodwill from On-X Acquisition 68,229 -- Goodwill allocated to sale of HeRO Graft product line (1,200) -- Goodwill allocated to sale of ProCol distribution rights and purchase option (100) -- Balance as of December 31, $ 78,294 $ 11,365 Definite Lived Intangible Assets As of December 31, 2016 and 2015 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 December 31, 2016 Value Amortization Period Acquired technology $ 38,478 5,956 11 – 22 Years Patents 3,710 2,702 17 Years Distribution and manufacturing rights and know-how 4,059 1,532 11 – 15 Years Customer lists and relationships 29,140 2,141 13 – 22 Years Non-compete agreement 381 381 10 Years Other 1,262 531 3 Years Gross Carrying Accumulated Amortization December 31, 2015 Value Amortization Period Acquired technology $ 14,020 $ 4,954 11 – 16 Years Patents 4,081 2,664 17 Years Distribution and manufacturing rights and know-how 4,059 1,245 11 – 15 Years Customer lists and relationships 3,370 1,054 13 – 17 Years Non-compete agreement 381 343 10 Years Other 1,583 210 3 – 5 Years The increase in gross carrying value of the Company’s intangible assets as of December 31, 2016 when compared to December 31, 2015 is primarily due to the Company’s acquisitions of On-X and PhotoFix, partially offset by reductions due to the HeRO Sale and the ProCol Sale. See Note 4 for further discussion of the acquisition of On-X, Note 6 for further discussion of the acquisition of PhotoFix, and Note 5 for further discussion of the HeRO Sale and the ProCol Sale. 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): 2016 2015 2014 Amortization expense $ 4,426 $ 2,135 $ 2,027 As of December 31, 2016 scheduled amortization of intangible assets for the next five years is as follows (in thousands): 2017 2018 2019 2020 2021 Total Amortization expense $ 4,566 $ 4,449 $ 4,107 $ 3,946 $ 3,925 $ 20,993 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | 12. Income Taxes Income Tax Expense Income before income taxes consists of the following (in thousands): 2016 2015 2014 Domestic $ 17,874 $ 5,701 $ 8,350 Foreign 538 167 353 Income before income taxes $ 18,412 $ 5,868 $ 8,703 Income tax expense consists of the following (in thousands): 2016 2015 2014 Current: Federal $ 3,948 $ 231 $ 898 State 626 142 211 Foreign 353 160 99 4,927 533 1,208 Deferred: Federal 2,836 1,011 127 State (9) 319 46 Foreign (120) -- -- 2,707 1,330 173 Income tax expense $ 7,634 $ 1,863 $ 1,381 The Company’s income tax expense in 2016 , 2015 , and 2014 included the Company’s federal, state, and foreign tax obligations. The Company’s effective income tax rate was approximately 41% , 32% , and 16% for the years ended December 31, 2016 , 2015 , and 2014 , respectively. The Company’ s income tax rate for the twelve months ended December 31, 2016 was unfavorably impacted by the tax treatment of certain expenses related to the On-X acquisition, which had a larger impact on the tax rate in the first quarter of 2016, and by book/tax basis differences related to the HeRO Sale. The Company’s income tax rate for the twelve months ended December 31, 2015 was favorably affected by the reversal of $869,000 in uncertain tax positions , primarily related to research and development tax credits for which the statute of limitations has expired, partially offset by the expiration of certain state net operating losses and other permanent differences. The Company’s income tax rate for the twelve months ended December 31, 2014 was favorably affected by the reduction in uncertain tax positions, nontaxable gains recorded as change in stock basis of subsidiary, and favorable deductions taken on the Company’s 2013 federal tax return, which was filed in 2014. The income tax expense amounts differ from the amounts computed by applying the U.S. federal statutory income tax rate of 35% for the year ended December 31, 2016 and 34% for the years ended December 31, 2015 and 2014 to pretax income as a result of the following (in thousands): 2016 2015 2014 Tax expense at statutory rate $ 6,444 $ 1,995 $ 2,959 Increase (reduction) in income taxes resulting from: Non-Deductible transaction costs 908 -- -- State income taxes, net of federal benefit 531 499 220 Non-deductible loss on unit disposals 455 -- -- Non-deductible entertainment expenses 221 184 218 Equity compensation 135 144 63 Foreign income taxes 130 118 69 Provision to return adjustments 29 122 (321) Non-deductible change in stock basis of subsidiary -- -- (641) Domestic production activities deduction (456) (87) (153) Research and development credit (296) (281) (237) Net change in uncertain tax positions (153) (869) (781) State valuation allowance adjustment (84) (19) 83 Other (230) 57 (98) Total Income tax expense $ 7,634 $ 1,863 $ 1,381 Deferred Taxes The Company generates deferred tax assets primarily as a result of write-downs of inventory and deferred preservation costs; accruals for product and tissue processing liability claims; investment and 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 On-X in 2016 , Hemosphere in 2012, and Cardiogenesis in 2011. The Company recorded significant deferred tax liabilities in 2016 related to the intangible assets acquired in the On-X acquisition. The tax effects of temporary differences which give rise to deferred tax assets and liabilities at December 31 are as follows (in thousands): 2016 2015 Deferred tax assets: Allowance for bad debts $ 208 $ 142 Inventory and deferred preservation costs write-downs 708 536 Investment in equity securities 58 58 Property 1,780 2,987 Intangible assets 2,034 591 Accrued expenses 4,215 3,276 Loss carryforwards 8,760 12,262 Credit carryforwards 1,001 616 Stock compensation 3,678 2,546 Transaction costs 122 1,048 Deferred compensation 973 957 UNICAP 371 55 Tax benefit of tax reserves 333 53 Other 409 382 Less valuation allowance (2,157) (2,109) Total deferred tax assets 22,493 23,400 2016 2015 Deferred tax liabilities: Prepaid items (436) (471) Intangible assets (21,665) (4,400) Other (399) (341) Total deferred tax liabilities (22,500) (5,212) Total net deferred tax (liabilities) assets $ (7) $ 18,188 As of December 31, 2016 the Company maintained a total of $ 2.2 million in valuation allowances against deferred tax assets, related to state net operating loss carryforwards, and a net deferred tax liability of $ 7,000 . As of December 31, 2015 the Company maintained a total of $ 2.1 million in valuation allowances against deferred tax assets, related to state net operating loss carryforwards, and a net deferred tax asset of $ 18.2 million . As of December 31, 2016 the Company had approximately $6.3 million tax-effected federal net operating loss carryforwards related to the acquisitions of Cardiogenesis and Hemosphere that will begin to expire in 2017 , $2.4 million of tax-effected state net operating loss carryforwards that began to expire in 2016 , $702,000 in research and development tax credit carryforwards that will begin to expire in 2022 , and $150,000 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): 2016 2015 2014 Beginning balance $ 969 $ 1,437 $ 2,100 Increases related to current year tax positions 86 103 92 Increases related to prior year tax positions 2,668 403 -- Decreases related to prior year tax positions (40) (70) (265) Decreases related to settlements (66) -- -- Decreases due to the lapsing of statutes of limitations (227) (904) (490) Ending balance $ 3,390 $ 969 $ 1,437 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): 2016 2015 2014 Beginning balance $ 210 $ 366 $ 422 Accrual of interest and penalties 92 50 91 Decreases related to prior year tax positions (94) (206) (147) Ending balance $ 208 $ 210 $ 366 As of December 31, 2016 the Company’s uncertain tax liability, including interest and penalties , of $3.6 million, was recorded as a reduction to deferred tax assets of $234,000 , and a non-current liability of $3.4 million on the Company’s Consolidated Balance Sheets, all of which, except for the portion related to interest and penalties, is expected to impact the Company’s tax rate when recognized. The uncertain tax position increase related to prior year tax positions is primarily due to positions taken by On-X on tax returns in prior years. As of December 31, 2015 the Company’s total uncertain tax liability, including interest and penalties of $1.2 million, was recorded as a reduction to deferred tax assets of $104,000 , and a non-current liability of $1.1 million on the Company’s Consolidated Balance Sheets, all of which, except for the portion related to interest and penalties, is expected to impact the Company’s tax rate when recognized. The Company believes it is reasonably possible that approximately $235,000 of its uncertain tax liability will be recognized in 201 7 due to the lapsing of various federal and state statutes of limitations. Other The Company’s tax years 2013 through 2015 generally remain open to examination by the major taxing jurisdictions to which the Company is subject. However, certain returns from years prior to 2013, 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, 2016 | |
Debt [Abstract] | |
Debt | 13. Debt GE Credit Agreement On September 26, 2014 the Company amended and restated its credit agreement with GE Capital, extending the expiration date and amending other terms, which are discussed further below. CryoLife’s second amended and restated credit agreement with GE Capital (the “GE Credit Agreement”) provided revolving credit for working capital, permitted acquisitions, and general corporate purposes . The GE Credit Agreement had aggregate commitments of $20.0 million for revolving loans, including swing loans, subject to a sublimit, and letters of credit, and was due to mature on September 26, 2019 . Amounts borrowed under the GE Credit Agreement were secured by substantially all of the tangible and intangible assets of CryoLife and its subsidiaries. Commitment fees were paid based on the unused portion of the facility. As of December 31, 2015 the aggregate interest rate was 4.75% . As of December 31, 2015 the outstanding balance of the GE Credit Agreement was zero , and the remaining availability was $20.0 million. The GE Credit Agreement placed limitations on the amount that the Company may borrow and included various affirmative and negative covenants, including financial covenants such as a requirement that CryoLife (i) not exceed a defined leverage ratio and (ii) maintain minimum earnings subject to defined adjustments as of specified dates. The agreement also (i) limited the payment of cash dividends, up to specified maximums and subject to satisfaction of specified conditions, (ii) required that, after giving effect to a stock repurchase, the Company maintain liquidity, as defined within the agreement, of at least $20.0 million, (iii) limited acquisitions or mergers except for certain permitted acquisitions, (iv) set specified limits on the amount the Company can pay to purchase or redeem CryoLife common stock pursuant to a stock repurchase program and to fund estimated tax liabilities incurred by officers, directors, and employees as a result of awards of stock or stock equivalents, and (v) included customary conditions on incurring new indebtedness. As required under the terms of the GE Credit Agreement, the Company maintained cash and cash equivalents of at least $5.0 million in accounts in which GE Capital had a first priority perfected lien. These amounts were recorded as long-term restricted cash as of December 31, 2015 on the Company’s Consolidated Balance Sheet, as they were restricted for the term of the GE Credit Agreement. Amended Debt Agreement In connection with the closing of the On-X acquisition, discussed above in Note 4, on January 20, 2016 the Company and certain of its subsidiaries entered into the Third Amended and Restated Credit Agreement (“Amended Debt Agreement”) with Capital One, National Association, who acquired GE Capital’s Healthcare Financial Services lending business in late 2015. The designated credit parties are Healthcare Financial Solutions, LLC; Fifth Third Bank; and Citizens Bank, National Association, collectively the (“Lending Parties”). The Amended Debt Agreement amended and restated the GE Credit Agreement discussed above and provides the Company with a senior secured credit facility in an aggregate principal amount of $95 million, which includes a $75 million term loan and a $20 million revolving credit facility (including a $4 million letter of credit sub-facility and a $3 million swing-line sub-facility). The $75 million term loan was used to finance, in part, the acquisition of On-X and will mature on January 20, 2021 . The Company and its domestic subsidiaries, subject to certain exceptions and exclusions, have guaranteed the obligations of the Amended Debt Agreement. Borrowings under the Amended Debt Agreement are secured by substantially all of the Company’s real and personal property. The loans under the Amended Debt Agreement (other than the swing-line loans) bear interest, at the Company’s option, at either a floating rate equal to the base rate, as defined in the Amended Debt Agreement, plus a margin of between 1.75% and 2.75% , depending on the Company’s consolidated leverage ratio, or a per annum rate equal to LIBOR plus a margin of between 2.75% and 3.75% , depending on the Company’s consolidated leverage ratio. As of December 31, 2016 the aggregate interest rate was 3.50% . Swing-line loans shall bear interest at a floating rate equal to the base rate plus a margin of between 1.75% and 2.75% , depending on the Company’s consolidated leverage ratio. The Company is obligated to pay an unused commitment fee equal to 0.50% of the un-utilized portion of the revolving loans. In addition, the Company is also obligated to pay other customary fees for a credit facility of this size and type. If and while a bankruptcy or insolvency event of default exists or a payment event of default exists, the Company is obligated to pay a per annum default rate of interest of 2.00% above the applicable interest rate on the past due principal amount of the loans outstanding. Interest is due and payable, with respect to base rate loans, on a quarterly basis. Interest is due and payable, with respect to LIBOR loans, on the last day of the applicable interest period, if the interest is shorter than six months, or on the last day of each three month interval, if the interest period is six months or greater. The Amended Debt Agreement prohibits the Company from exceeding a maximum consolidated leverage ratio during the term of the Amended Debt Agreement and requires the Company to maintain a minimum interest coverage ratio. In addition, the Amended Debt Agreement contains certain customary affirmative and negative covenants, including covenants that limit the ability of the Company and its subsidiaries which are parties to the loan agreement to, among other things, grant liens; incur debt; dispose of assets; make loans and investments; make acquisitions; make certain restricted payments; merge or consolidate; and change their business and accounting or reporting practices, in each case subject to customary exceptions for a credit facility of this size and type. As of December 31, 2016 the Company was in compliance with the covenants of the Amended Debt Agreement. The Amended Debt Agreement includes certain customary events of default that include, among other things, non-payment of principal, interest or fees; inaccuracy of representations and warranties; violation of covenants; cross-default to certain other indebtedness; bankruptcy and insolvency; and change of control. Upon the occurrence and during the continuance of an event of default, the lenders may declare all outstanding principal and accrued but unpaid interest under the Amended Debt Agreement immediately due and payable and may exercise the other rights and remedies provided for under the Amended Debt Agreement and related loan documents. The short-term and long-term balances of the Company’s term loan are as follows (in thousands): As of December 31, 2016 2015 Term loan balance $ 73,594 $ -- Less unamortized loan origination costs (2,020) -- Total borrowed 71,574 -- Less short-term loan balance (4,562) -- Long-term loan balance $ 67,012 $ -- At December 31, 2016 the aggregate maturities of long-term debt for the next five years is as follows (in thousands): 2017 2018 2019 2020 2021 Total Maturities $ 5,096 $ 3,750 $ 3,750 $ 5,156 $ 55,842 $ 73,594 The Company’s aggregate maturity schedule is subject to change due to a provision within the Amended Debt Agreement that requires the Company to make annual prepayments based on an excess cash flow calculation. Interest Total interest expense was $3.0 million in 2016 a favorable $62,000 in 2015 and $175,000 in 2014 . Interest expense was favorable in 2015 due to the reversal of accrued interest on uncertain tax positions as discussed in Note 12 above. Interest expense includes interest on debt and uncertain tax positions in all periods. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | 14. 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. The Company had deferred rent obligations of $2.4 million and $1.7 million as of December 31, 2016 and 2015 , respectively, primarily related to the lease on its corporate headquarters, which expires in 2022 . Total rental expense for operating leases was $4.3 million in 2016, $3.4 million in 2015, and $3.0 million in 2014 . The increase in rent expense in 2016 is due to the acquisition of On-X and its lease for manufacturing, warehouse, and office space in Austin, TX. The increase in rent expense in 2015 is due to a lease the Company entered into for additional office space in Kennesaw, GA. The Company began subleasing some of its additional office space late in December 2016 and earned nominal sublease income in 2016. Future minimum lease payments and sublease rental income are as follows (in thousands): Operating Sublease Leases Income 2017 $ 4,470 $ 375 2018 4,779 512 2019 4,722 525 2020 4,127 538 2021 3,647 552 Thereafter 3,788 -- Total minimum lease payments $ 25,533 $ 2,502 Liability Claims At December 31, 2016 and 2015 the Company’s unreported loss liability was $1.5 million and $1.4 million, respectively. As of December 31, 2016 and 2015, the related insurance recoverable amounts were $626,000 and $600,000 , respectively. The Company accrues its estimate of unreported product and tissue processing liability claims as other long ‑term liabilities and records the related recoverable insurance amounts as other long ‑term assets. Further analysis indicated that the liability as of December 31, 2016 could be estimated to be as high as $2.8 million, after including a reasonable margin for statistical fluctuations calculated based on actuarial simulation techniques. Employment Agreements In July 2014 the Company’s Board of Directors appointed Mr. James P. Mackin as President and Chief Executive Officer (“CEO”), and t he Company and Mr. Mackin entered into an employment agreement, which became effective September 2, 2014. The employment agreement has an initial three -year term. Beginning on the second anniversary of the effective date, and subject to earlier termination pursuant to the agreement, the employment term will, on a daily basis, automatically extend by one day. In accordance with the agreement, on September 2, 2014, Mr. Mackin received a one-time signing bonus of $200,000 , a grant of 400,000 stock options, and a performance stock award grant of 250,000 shares. The agreement also provides for a severance payment, which would become payable upon the occurrence of certain employment termination events, including termination by the Company without cause. The employment agreement of the Company’s former President, CEO, and Executive Chairman, Mr. Steven G. Anderson, conferred certain benefits on Mr. Anderson upon his retirement or termination of employment in conjunction with certain change in control events. On April 9, 2015 Mr. Anderson retired from service as an employee of the Company and Chair of its Board of Directors, and entered into a separation agreement with the Company. The Company recorded expense of approximately $1.4 million related to Mr. Anderson’s separation agreement in the second quarter of 2015. The Company had remaining obligations due under Mr. Anderson’s separation agreement of $83,000 and $93,000 as of December 31, 2016 and December 31, 2015, respectively. 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 Starch Medical, Inc. (“ SMI”), for PerClot, a polysaccharide hemostatic agent used in surgery. The Distribution Agreement has a term of 15 years, but can be terminated for any reason before the expiration date by CryoLife by providing 180 days’ notice. The Distribution Agreement also contains minimum purchase requirements that expire upon the termination of the Distribution Agreement or following U.S. regulatory approval for PerClot. Separate and apart from the terms of the Distribution Agreement, pursuant to the License Agreement, as amended by a September 2, 2011 technology transfer agreement, CryoLife can manufacture and sell PerClot, assuming appropriate regulatory approvals, in the U.S. and certain other jurisdictions and may be required to pay royalties to SMI at certain rates on net revenues of products. CryoLife paid $500,000 to SMI in January 2015 related to the achievement of a contingent milestone. The Company may make additional contingent payments to SMI of up to $1.0 million if certain U.S. regulatory and certain commercial milestones are achieved. The Company is conducting its pivotal clinical trial to gain approval to commercialize PerClot for surgical indications in the U.S. The Company began enrollment in the trial in the second quarter of 2015 but later suspended enrollment pending consultation with the FDA regarding the trial protocol. These discussions resulted in two amendments to the trial protocol, the last of which was approved by the FDA in July 2016. The Company is in the process of conducting site start-up activities and resumed enrollment into the trial in the fourth quarter of 2016 with the goal of receiving PMA from the FDA in the first half of 2019. As of December 31, 2016 the Company had $1.5 million in prepaid royalties, $2.9 million in net intangible assets, and $1.2 million in property and equipment, net on the Company’s Consolidated Balance Sheets related to the PerClot product line. If the Company does not ultimately pursue or receive FDA approval to commercialize PerClot in the U.S., these assets could be materially impaired in future periods. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | 15. Shareholders’ Equity Cash Dividends The Company initiated a cash dividend in the third quarter of 2012 and paid the dividend quarterly until the Company’s Board of Directors discontinued dividend payments for the foreseeable future in December 2015. The Company paid dividend payments from cash on hand of $3.4 million for the year ended December 31, 2015 . The dividend payments were recorded as a reduction to retained earnings on the Company’s Consolidated Balance Sheet. Shareholder Rights Plan The Company had 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 was entitled to one “Right,” as defined in, and subject to, the terms of the rights agreement. A Right entitled 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 became outstanding after December 11, 1995 was also entitled to a Right, subject to the terms and conditions of the rights agreement. The shareholder rights agreement expired on November 23, 2015. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | 16. Employee Benefit Plans 401(k) Plan The Company has a 401(k) savings plan (“401(k) 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 2016 , 2015 , and 2014 . Total Company contributions approximated $750,000 , $573,000 , and $553,000 for the years ended December 31, 2016 , 2015 , and 2014 , respectively. The increase in expenses in 2016 was due, in part, to the addition of participants related to the acquisition of On-X. Additionally, the Company may make discretionary contributions to the 401(k) Plan; however, no discretionary contributions were made in any of the past three years. Deferred Compensation Plan On January 1, 2011 the Company 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, the Company 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 the Company. 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, the Company will be required to make contributions each year to fully match its obligations under the Deferred Plan. The trust’s funds are primarily invested in Company Owned Life Insurance (“COLI”), and the Company plans to hold the policies until the deaths 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, 2016 | |
Stock Compensation [Abstract] | |
Stock Compensation | 17. Stock Compensation Overview The Company is currently authorized to grant and has available for grant the following number of shares under the Company’s stock plans as of December 31, 2016 and 2015 : Authorized Available for Grant Plan Shares 2016 2015 1996 Discounted Employee Stock Purchase Plan, as amended 1,900,000 469,000 560,000 2009 Employee Stock Incentive Plan 7,100,000 2,194,000 3,361,000 Total 9,000,000 2,663,000 3,921,000 Upon the exercise of stock options or grants of RSAs, PSAs, 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 2016 the Compensation Committee of the Company’s Board of Directors (the “Committee”) 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 490,000 shares and had an aggregate grant date market value of $5.5 million. The PSUs granted in 2016 represented the right to receive from 60% to 150% of the target number of shares of common stock. The performance component of PSU awards granted in 2016 was based on attaining specified levels of adjusted EBITDA, adjusted inventory levels, and adjusted trade accounts receivable days’ sales outstanding, each as defined in the PSU grant documents, for the 2016 calendar year. The PSUs granted in 2016 earned 142% of the target number of shares. In 2015 the Committee 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 405,000 shares of common stock and had an aggregate grant date market value of $4.3 million. The PSUs granted in 2015 earned approximately 127% of the target number of shares. In 2014 the Committee authorized awards from approved stock incentive plans of RSAs to non-employee Directors, RSUs to certain employees, and RSAs, PSAs, and PSUs to certain Company officers, which, counting PSUs at target levels, together totaled 655,000 shares of common stock and had an aggregate market value of $6.6 million. The PSUs granted in 2014 earned approximately 50% of the target number of shares. A summary of stock grant activity for the years ended December 31, 2016 , 2015 , and 2014 for RSAs, PSAs, RSUs, and PSUs, based on the target number of shares, is as follows: Weighted Average Grant Date RSAs Shares Fair Value Unvested at December 31, 2013 622,000 $ 5.62 Granted 232,000 9.97 Vested (324,000) 5.55 Forfeited (35,000) 7.22 Unvested at December 31, 2014 495,000 7.65 Granted 207,000 10.33 Vested (278,000) 8.10 Forfeited (110,000) 8.49 Unvested at December 31, 2015 314,000 9.31 Granted 216,000 10.84 Vested (138,000) 7.92 Forfeited -- -- Unvested at December 31, 2016 392,000 10.64 Weighted Average Grant Date PSAs Shares Fair Value Unvested at December 31, 2013 -- $ -- Granted 250,000 10.18 Vested -- -- Forfeited -- -- Unvested at December 31, 2014 250,000 10.18 Granted -- -- Vested -- -- Forfeited -- -- Unvested at December 31, 2015 250,000 10.18 Granted -- -- Vested -- -- Forfeited -- -- Unvested at December 31, 2016 250,000 10.18 Weighted Average Remaining Aggregate Contractual Intrinsic RSUs Shares Term in years Value Outstanding at December 31, 2013 129,000 1.56 $ 1,425,000 Granted 5,000 Vested (52,000) Forfeited (21,000) Outstanding at December 31, 2014 61,000 1.21 687,000 Granted 88,000 Vested (36,000) Forfeited (10,000) Outstanding at December 31, 2015 103,000 1.17 1,110,000 Granted 146,000 Vested (44,000) Forfeited (27,000) Outstanding at December 31, 2016 178,000 1.24 3,405,000 Vested and expected to vest 164,000 1.23 $ 3,132,000 Weighted Average Remaining Aggregate Contractual Intrinsic PSUs Shares Term in years Value Outstanding at December 31, 2013 236,000 0.81 $ 2,612,000 Granted 185,000 Vested (143,000) Forfeited (21,000) Outstanding at December 31, 2014 257,000 0.73 2,907,000 Granted 125,000 Vested (139,000) Forfeited (108,000) Outstanding at December 31, 2015 135,000 0.74 1,455,000 Granted 144,000 Vested (83,000) Forfeited (8,000) Outstanding at December 31, 2016 188,000 0.77 3,603,000 Vested and expected to vest 178,000 0.73 $ 3,412,000 D uring the years ended December 31, 2016, 2015, and 2014 , the t otal fair value of $ 2.9 million, $ 4.8 million, and $ 5.0 million, respectively , in combined RSAs, PSAs, RSUs, and PSUs vested . 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 387,000 , 328,000 , and 562,000 shares in 2016 , 2015 , and 2014 , 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, 2016 , 2015 , and 2014 is as follows: Weighted Average Weighted Remaining Aggregate Average Contractual Intrinsic Shares Exercise Price Term in years Value Outstanding at December 31, 2013 1,794,000 $ 6.57 3.31 $ 8,274,000 Granted 562,000 10.12 Exercised (297,000) 7.26 Forfeited (23,000) 7.97 Expired (15,000) 7.34 Outstanding at December 31, 2014 2,021,000 7.43 3.54 8,021,000 Granted 328,000 10.83 Exercised (248,000) 7.42 Forfeited (112,000) 9.93 Expired (93,000) 12.08 Outstanding at December 31, 2015 1,896,000 7.65 3.31 5,992,000 Granted 387,000 10.34 Exercised (372,000) 5.60 Forfeited -- -- Expired -- -- Outstanding at December 31, 2016 1,911,000 8.59 3.55 20,179,000 Vested and expected to vest 1,872,000 8.55 3.51 19,843,000 Exercisable at December 31, 2016 1,193,000 7.50 2.33 13,904,000 Other information concerning stock options for the years ended December 31 is as follows: 2016 2015 2014 Weighted-average fair value of options granted $ 3.68 $ 3.82 $ 4.14 Intrinsic value of options exercised 2,422,000 761,000 918,000 Employees purchased common stock totaling 90,000 , 78,000 , and 111,000 shares in 2016 , 2015 , and 2014 , respectively, through the Company’s ESPP. Stock Compensation Expense The following weighted ‑average assumptions were used to determine the fair value of options: 2016 2015 2014 Stock ESPP Stock ESPP Stock ESPP Options Options Options Options Options Options Expected life of options 4.75 Years 0.5 Years 4.5 Years 0.5 Years 4.2 Years 0.5 Years Expected stock price volatility 0.40 0.30 0.44 0.32 0.55 0.36 Dividend yield --% --% 1.12% 1.06% 1.16% 1.12% Risk-free interest rate 1.20% 0.43% 1.41% 0.12% 1.34% 0.08% The following table summarizes stock compensation expense (in thousands): 2016 2015 2014 RSA, PSA, RSU, and PSU expense $ 4,966 $ 3,955 $ 2,855 Stock option and ESPP option expense 1,636 1,371 842 Total stock compensation expense $ 6,602 $ 5,326 $ 3,697 Included in the total stock compensation expense, as applicable in each period, were expenses related to RSAs, PSAs, 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 inventory costs and deferred preservation costs. The Company capitalized $274,000 , $237,000 and $261,000 in the years ended December 31, 2016 , 2015 , and 2014 , respectively, of the stock compensation expense into its inventory costs and deferred preservation costs. As of December 31, 2016 the Company had total unrecognized compensation costs of $5.1 million related to RSAs, PSAs, RSUs, and PSUs and $1.8 million related to unvested stock options, before considering the effect of expected forfeitures. As of December 31, 2016 this expense is expected to be recognized over a weighted-average period of 2.1 years for RSUs, 1.6 years for stock options, 1.3 years for RSAs, 0.8 years for PSUs, and 0.7 years for PSAs. |
Income Per Common Share
Income Per Common Share | 12 Months Ended |
Dec. 31, 2016 | |
Income Per Common Share [Abstract] | |
Income Per Common Share | 1 8 . 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): Basic income per common share 2016 2015 2014 Net income $ 10,778 $ 4,005 $ 7,322 Net income allocated to participating securities (208) (87) (161) Net income allocated to common shareholders $ 10,570 $ 3,918 $ 7,161 Basic weighted-average common shares outstanding 31,855 27,744 27,379 Basic income per common share $ 0.33 $ 0.14 $ 0.26 Diluted income per common share 2016 2015 2014 Net income $ 10,778 $ 4,005 $ 7,322 Net income allocated to participating securities (202) (87) (158) Net income allocated to common shareholders $ 10,576 $ 3,918 $ 7,164 Basic weighted-average common shares outstanding 31,855 27,744 27,379 Effect of dilutive options and awards a 967 798 934 Diluted weighted-average common shares outstanding 32,822 28,542 28,313 Diluted income per common share $ 0.32 $ 0.14 $ 0.25 a 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 1,000 , 710,000 , and 335,000 shares for the years ended December 31, 2016 , 2015 , and 2014 , respectively, were excluded from the calculation of diluted weighted-average common shares outstanding. |
Transactions With Related Parti
Transactions With Related Parties | 12 Months Ended |
Dec. 31, 2016 | |
Transactions With Related Parties [Abstract] | |
Transactions With Related Parties | 19. Transactions with Related Parties A member of the Company’s Board of Directors and a shareholder of the Company is an employee of an investment banking services company. On January 20, 2016 CryoLife acquired On-X. The investment banking company represented On-X in that acquisition, for which they earned $3.0 million in fees upon the close of the acquisition. CryoLife paid these fees directly to the investment banking company on behalf of On-X out of the proceeds of the acquisition. The Company made stock repurchases of $5.6 million 2014 which includes the cost of stock and commissions of less than 1% to that investment banking services company. The Company did not make any stock repurchases in 2015 or 2016. A member of the Company’s Board of Directors and a shareholder of the Company was the former Chief of Thoracic Surgery of a university hospital that generated product and preservation services revenues of $316,000 , $329,000 , and $273,000 for the Company in 2016 , 2015 , and 2014 , 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 product and preservation services revenues of $479,000 , $617,000 , and $616,000 for the Company in 2016 , 2015 , and 2014 , respectively. The Company expensed $39,000 , $35,000 , and $45,000 in 2016 , 2015 , and 2014 , respectively, relating to supplies for clinical trials purchased from a company whose former Chief Financial Officer is a member of the Company's Board of Directors and a shareholder of the Company. The Company expensed $44,000 and $43,000 in 2016 and 2015, respectively, relating to membership fees to a medical device trade association where the Company’s President and CEO is a current member of the Board of Directors. |
Segment And Geographic Informat
Segment And Geographic Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Information [Abstract] | |
Segment Information | 20 . 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, On-X products, CardioGenesis cardiac laser therapy, PerClot, PhotoFix, HeRO Graft through the second quarter of 2016, and ProCol through the date of the sale of the ProCol product line in the first quarter of 2016. 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): 2016 2015 2014 Revenues: Medical devices $ 113,992 $ 83,081 $ 81,883 Preservation services 66,388 62,817 62,758 Total revenues 180,380 145,898 144,641 Cost of products and preservation services: Medical devices 28,033 18,663 17,167 Preservation services 33,448 36,516 36,183 Total cost of products and preservation services 61,481 55,179 53,350 Gross margin: Medical devices 85,959 64,418 64,716 Preservation services 32,940 26,301 26,575 Total gross margin $ 118,899 $ 90,719 $ 91,291 Net revenues by product for the years ended December 31, 2016 , 2015 , and 2014 were as follows (in thousands): 2016 2015 2014 Products: BioGlue and BioFoam $ 63,461 $ 59,332 $ 62,091 On-X 34,232 -- -- CardioGenesis cardiac laser therapy 7,864 9,419 8,225 PerClot 4,021 4,083 4,289 PhotoFix 1,871 1,396 -- HeRO Graft 2,325 7,546 7,131 ProCol 218 1,305 147 Total products 113,992 83,081 81,883 Preservation services: Cardiac tissue 29,697 28,059 29,437 Vascular tissue 36,691 34,758 33,321 Total preservation services 66,388 62,817 62,758 Total revenues $ 180,380 $ 145,898 $ 144,641 Net revenues by geographic location attributed to countries based on the location of the customer for the years ended December 31, 2016 , 2015 , and 2014 were as follows (in thousands): 2016 2015 2014 U.S. $ 131,727 $ 114,978 $ 110,533 International 48,653 30,920 34,108 Total revenues $ 180,380 $ 145,898 $ 144,641 At December 31, 2016 and 2015 over 99% 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, 2016 and 2015 the Company’s $ 78.3 million and $11 .4 million, respectively of goodwill was allocated entirely to its Medical Devices segment. |
Selected Quarterly Financial In
Selected Quarterly Financial Information | 12 Months Ended |
Dec. 31, 2016 | |
Selected Quarterly Financial Information [Abstract] | |
Selected Quarterly Financial Information (Unaudited) | SELECTED QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (in thousands, except per share data) First Second Third Fourth Quarter Quarter Quarter Quarter REVENUE: 2016 $ 43,016 * $ 47,083 * $ 45,252 * $ 45,029 * 2015 33,831 35,526 36,703 39,838 2014 35,731 34,690 37,069 37,151 GROSS MARGIN: 2016 $ 27,621 * $ 30,301 * $ 29,782 * $ 31,195 * 2015 19,667 21,554 22,982 26,516 2014 22,473 22,384 23,799 22,635 NET INCOME (LOSS): 2016 $ 2,541 * $ 2,347 * $ 2,993 * $ 2,897 * 2015 (274) (502) 2,145 2,636 2014 1,059 2,161 2,326 1,776 INCOME (LOSS) PER COMMON SHARE—DILUTED: 2016 $ 0.08 * $ 0.07 * $ 0.09 * $ 0.09 * 2015 (0.01) (0.02) 0.07 0.09 2014 0.04 0.08 0.08 0.06 * In January 2016 the Company completed its acquisition of On-X Life Technologies Holdings, Inc., which is being operated as a wholly owned subsidiary of CryoLife. In 2016 the Company also sold its HeRO Graft product line and its ProCol product line , and ceased sales of these products during 2016. |
Summary Of Significant Accoun29
Summary Of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Summary Of Significant Accounting Policies [Abstract] | |
Nature Of Business | Nature of Business CryoLife, Inc. (“CryoLife,” the “Company,” “we,” or “us”), incorporated in 1984 in Florida, is a leader in medical device manufacturing, processing, and distribution of medical devices and implantable human tissues used in cardiac surgical procedures. CryoLife’s medical devices include: BioGlue ® Surgical Adhesive (“BioGlue”); BioFoam ® Surgical Matrix (“BioFoam”); On-X valves and surgical products; the CardioGenesis cardiac laser therapy product line, which includes a laser console system and single-use, fiber-optic handpieces, that are used for the treatment of coronary artery disease in patients with severe angina; PerClot ® , an absorbable powdered hemostat, which the Company distributes internationally for Starch Medical, Inc. (“SMI”); and PhotoFix TM , a bovine pericardial patch stabilized using a dye-mediated photo-fixation process that requires no glutaraldehyde . 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 (“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, inventory, 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, On-X products, CardioGenesis cardiac laser therapy handpieces and accessories, PerClot, PhotoFix, and other medical devices, are typically recognized at the time the product is shipped, at which time title passes to the customer, and there are no further performance obligations. Revenues from consignment are recognized when the medical device is implanted. The Company recognizes revenues for preservation services when services are completed and tissue is shipped to the customer. 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 the sales of domestic laser consoles 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 $384,000 , $521,000 , and $821,000 for the years ended December 31, 2016 , 2015 , and 2014 , 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), performance stock awards (“PSA”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 RSAs, PSAs, RSUs, PSUs, and stock options 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, PSAs, RSUs, and PSUs based on the stock price on the date of grant. The Company expenses the related compensation cost of RSAs, PSAs, 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 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 when the Company’s quarterly dividends were discontinued after the fourth quarter of 2015. 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. The period expense for the Company’s stock compensation is determined based on the valuations discussed above 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 later adjusted to reflect actual forfeitures. |
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 and PSAs 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 Cash dividends approved by the Company’s Board of Directors were paid every three months in the amount of $0.0275 per share in the first quarter of 2014 and $0.03 in the remainder of 2014 and in 2015. In December 2015 the Board of Directors undertook a review of the Company’s dividend policy and determined that it would be in the best interest of the shareholders to discontinue dividend payments for the foreseeable future. The Company did not pay quarterly dividends in 2016 and does not currently anticipate paying out further quarterly dividends. |
Financial Instruments | Financial Instruments The Company’s financial instruments include cash equivalents, marketable securities, restricted securities, accounts receivable, notes receivable, accounts payable, debt obligations, contingent consideration, and derivatives. 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 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, 2016 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; applying accounting for business combinations; and allocating goodwill to divested components of a business. 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. |
Cash Flow Supplemental Disclosures | Cash Flow Supplemental Disclosures Supplemental disclosures of cash flow information for the years ended December 31 (in thousands): 2016 2015 2014 Cash paid during the year for: Interest $ 2,446 $ 1 $ 34 Income taxes 2,501 145 3,450 Non-cash investing and financing activities: Issuance of common stock for acquisition of On-X intangible assets $ 34,593 $ -- $ -- |
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, investments are recorded at cost, with subsequent dividends received recognized as income. Cost method investments are reviewed for impairment if factors indicate that a decrease in the value of the investment has occurred. The Company reviews its contracts to determine if they require any restrictions to cash or investments. If there is a contractual agreement restricting the availability of the Company’s cash or investments, the Company will classify these amounts as current or long-term restricted cash or investments. |
Accounts And Notes Receivable And Allowance For Doubtful Accounts | Accounts and Notes 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 and the credit worthiness of the customer, as well as the increased risks related to international customers and large distributors. The Company determines the allowance for doubtful accounts based upon specific reserves for known collection issues, as well as a non-specific reserve based upon aging buckets. The Company charges off uncollectable amounts against the reserve in the period in which it determines they are uncollectible. The Company’s accounts receivable balances were reported net of allowance for doubtful accounts of $503,000 and $232,000 as of December 31, 2016 and 2015 , respectively. The Company may lend money from time-to-time through a note receivable, which may be made in conjunction with a longer term strategic investment in a medical device company, as approved by the Board of Directors. The Company assesses the likelihood of collection of its notes receivable based on a number of factors, including past transaction history, credit worthiness, and the liquidity position of the recipient as well as the expected value of any collateral. The Company’s notes receivable balance was zero as of December 31, 2016 and 2015 , respectively . See Note 8 for further discussion of the Company’s note receivable from ValveXchange, Inc. (“ValveXchange”). |
Inventories | Inventories Inventories are comprised of BioGlue; BioFoam; On-X; PerClot; CardioGenesis cardiac laser therapy laser consoles, handpieces, and accessories; PhotoFix; other medical devices; supplies; and raw materials. In 2015, inventories also included HeRO Grafts and ProCol. Inventories are valued at the lower of cost or market on a first ‑in, first ‑out basis. Typcially, upon shipment, or upon implant of a medical device on consignment, revenue is recognized and the related inventory costs are expensed as cost of products. Cost of products also includes, as applicable, lower of cost or market write-downs and impairments for products not deemed to be recoverable and, 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 manufactured under contract 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 $467,000 , $858,000 , and $140,000 for the years ended December 31, 2016 , 2015 , and 2014 , respectively. The 2015 write-down is primarily related to the write-down of PerClot Topical inventory following the Company’s cessation of marketing, sales, and distribution of PerClot Topical in the U.S. See Note 9 for further discussion of PerClot Topical. |
Deferred Preservation Costs | Deferred Preservation Costs Deferred preservation costs includes costs of cardiac and vascular tissues available for shipment, tissues currently in active processing, and tissues held in quarantine pending release to implantable status. 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. Upon shipment of 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 $897,000 , $483,000 , and $540,000 for the years ended December 31, 2016 , 2015 , and 2014 , respectively, due primarily to tissues not expected to ship prior to the expiration date of the packaging. |
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): 2016 2015 2014 Depreciation expense $ 3,958 $ 3,728 $ 4,001 |
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 11 . The Company’s goodwill is attributable to a segment or segments of the Company’s business, as appropriate, as the related acquired business that generated the goodwill is integrated into the Company’s operations. Upon divestiture of a component of the Company’s business, the goodwill related to the operating segment is allocated to the divested business using the relative fair value allocation method. 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, 2016 , 2015 , and 2014 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, 2016 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, 2016 and 2015, 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 includes these costs as part of deferred preservation costs, as discussed above. 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 14 . 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. |
Debt Issuance Costs | Debt Issuance Costs Debt issuance costs related to the Company’s term loan and line of credit are capitalized and reported net of the current and long-term debt or as a prepaid asset when there are no outstanding borrowings. The Company amortizes debt issuance costs to interest expense on its term loan using the effective interest method over the life of the debt agreement. The Company amortizes debt issuance costs to interest expense on its line of credit on a straight line basis over the life of the debt agreement. |
Liability Claims | Liability Claims In the normal course of business, the Company is made aware of adverse events involving its products and tissues. Future adverse events could ultimately give rise to a lawsuit against the Company, and liability claims may be asserted against the Company in the future based on past 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 various factors, including, but not limited to, Company specific conditions, uncertainties surrounding the assumptions used, 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 Company’s assumptions and from the amounts accrued. The Company accrues its estimate of unreported product and tissue processing liability claims as a component of other long ‑term liabilities and records the related recoverable insurance amounts as a component of 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/or 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 12 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 its deferred tax assets 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 affect the Company’s ability to use its deferred tax assets. Such changes could have a material, adverse impact on the Company’s profitability, financial position, 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 former subsidiaries Hemosphere, Inc. (“Hemosphere”) and Cardiogenesis Corporation (“Cardiogenesis”), as mandated by Section 382 of the Internal Revenue Code of 1986, as amended. The Company believes that its acquisitions of these companies each 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 acquired net operating loss carryforwards in the acquisition of On-X Life Technologies that are limited under Section 382. However, the Company believes that such net operating loss carryforwards from On-X will be fully realizable prior to expiration. The deferred tax assets recorded on the Company’s Consolidated Balance Sheets exclude 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 capitalize upon 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 using the acquisition method. Under this method, the allocation of the purchase price is based on the fair value of the tangible and identifiable intangible assets acquired and the liabilities assumed as of the date of the acquisition. The excess of the purchase price over the estimated fair value of the tangible net assets and identifiable intangible assets is recorded as goodwill. Transaction costs related to business combinations 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 other (income) expense on the Company’s Consolidated Statements of Operations and Comprehensive Income. |
New Accounting Pronouncements | New Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) amended its Accounting Standards Codification and created a new Topic 842, Leases . The final guidance requires lessees to recognize a right-of-use asset and a lease liability for all leases (with the exception of short-term leases) at the commencement date and recognize expenses on their income statements similar to the current Topic 840, Leases . It is effective for fiscal years and interim periods beginning after December 15, 2018, and early adoption is permitted. The Company is evaluating the impact the adoption of this standard will have on its financial position, results of operations, and cash flows. In March 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-09, Improvements to Employee Share-Based Payment Accounting as part of its simplification initiative, which involves several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The amendments in this update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company expects that the allowed change in accounting for forfeitures as they occur will not have a material impact on the Company’s results of operations over time, as the Company believes that its estimated forfeiture rate approximates its actual forfeiture rate. However, the Company believes that this could have a favorable or unfavorable impact in any given quarter due to the timing of actual forfeitures. The Company believes that the change in accounting for excess tax benefits and the discontinuance of the APIC pool could have a material impact on its results of operations, which could be favorable or unfavorable, depending on movements in the Company’s stock price. The Company does not believe the adoption of this standard will have a material impact on its financial position and cash flows. In May 2014 the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. Since ASU 2014-09 was issued, several additional ASUs have been issued to clarify various elements of the guidance. These standards provide guidance on recognizing revenue, including a five-step model to determine when revenue recognition is appropriate. The standard requires that an entity recognize revenue to depict the transfer of control of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Adoption of the new standard is effective for reporting periods beginning after December 15, 2017, and early adoption is permitted. The standard permits the use of either the full retrospective or modified retrospective transition method. The Company is performing its initial evaluation of its standard arrangements with customers and its arrangements specific to certain of the Company’s product lines or product offerings. The Company is continuing to evaluate the effect that ASU 2014-09 will have on its financial position, results of operations, cash flows, and related disclosures. |
Summary Of Significant Accoun30
Summary Of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary Of Significant Accounting Policies [Abstract] | |
Schedule Of Supplemental Disclosures Of Cash Flow Information | 2016 2015 2014 Cash paid during the year for: Interest $ 2,446 $ 1 $ 34 Income taxes 2,501 145 3,450 Non-cash investing and financing activities: Issuance of common stock for acquisition of On-X intangible assets $ 34,593 $ -- $ -- |
Schedule Of Depreciation Expense | 2016 2015 2014 Depreciation expense $ 3,958 $ 3,728 $ 4,001 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Financial Instruments [Abstract] | |
Summary Of Financial Instruments Measured At Fair Value | December 31, 2016 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 3,466 $ -- $ -- $ 3,466 Restricted securities: Money market funds 699 -- -- 699 Total assets $ 4,165 $ -- $ -- $ 4,165 December 31, 2015 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 549 $ -- $ -- $ 549 Restricted securities: Money market funds 830 -- -- 830 Total assets $ 1,379 $ -- $ -- $ 1,379 |
Cash Equivalents And Restrict32
Cash Equivalents And Restricted Cash And Securities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Cash Equivalents And Restricted Cash And Securities [Abstract] | |
Summary Of Cash Equivalents And Restricted Cash And Securities | Unrealized Estimated Holding Market December 31, 2016 Cost Basis Gains (Losses) Value Cash equivalents: Money market funds $ 3,466 $ -- $ 3,466 Restricted securities: Money market funds 699 -- 699 Unrealized Estimated Holding Market December 31, 2015 Cost Basis Gains (Losses) Value Cash equivalents: Money market funds $ 549 $ -- $ 549 Restricted cash and securities: Cash 5,000 -- 5,000 Money market funds 830 -- 830 |
Acquisition Of On-X Life Tech33
Acquisition Of On-X Life Technologies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Acquisition Of On-X Life Technologies [Abstract] | |
Purchase Price Allocation | Opening Balance Sheet Cash and cash equivalents $ 2,472 Receivables 6,826 Inventories 12,889 Intangible assets 53,950 Goodwill 68,229 Other assets 6,891 Liabilities assumed (23,040) Total purchase price $ 128,217 |
Pro Forma Information | Twelve Months Ended December 31, 2016 2015 Total revenues $ 182,007 $ 179,266 Net income (loss) 17,692 (4,787) Pro forma income (loss) per common share - basic $ 0.54 $ (0.15) Pro forma income (loss) per common share - diluted $ 0.53 $ (0.15) |
Inventories And Deferred Pres34
Inventories And Deferred Preservation Costs (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventories And Deferred Preservation Costs [Abstract] | |
Schedule Of Inventories | 2016 2015 Raw materials and supplies $ 9,321 $ 8,590 Work-in-process 3,321 633 Finished goods 13,651 5,420 Total inventories $ 26,293 $ 14,643 |
Schedule Of Deferred Preservation Costs | 2016 2015 Cardiac tissues $ 15,768 $ 11,722 Vascular tissues 14,920 13,019 Total deferred preservation costs $ 30,688 $ 24,741 |
Goodwill And Other Intangible35
Goodwill And Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill And Other Intangible Assets [Abstract] | |
Schedule Of Carrying Values Of Indefinite Lived Intangible Assets | 2016 2015 Goodwill $ 78,294 $ 11,365 Procurement contracts and agreements 2,013 2,013 Trademarks 841 860 Total indefinite lived intangible assets $ 81,148 $ 14,238 |
Schedule Of Goodwill By Reportable Segment | 2016 2015 Balance as of January 1, $ 11,365 $ 11,365 Goodwill from On-X Acquisition 68,229 -- Goodwill allocated to sale of HeRO Graft product line (1,200) -- Goodwill allocated to sale of ProCol distribution rights and purchase option (100) -- Balance as of December 31, $ 78,294 $ 11,365 |
Schedule Of Gross Carrying Values, Accumulated Amortization, And Approximate Amortization Period Of Definite Lived Intangible Assets | Gross Carrying Accumulated Amortization December 31, 2016 Value Amortization Period Acquired technology $ 38,478 5,956 11 – 22 Years Patents 3,710 2,702 17 Years Distribution and manufacturing rights and know-how 4,059 1,532 11 – 15 Years Customer lists and relationships 29,140 2,141 13 – 22 Years Non-compete agreement 381 381 10 Years Other 1,262 531 3 Years Gross Carrying Accumulated Amortization December 31, 2015 Value Amortization Period Acquired technology $ 14,020 $ 4,954 11 – 16 Years Patents 4,081 2,664 17 Years Distribution and manufacturing rights and know-how 4,059 1,245 11 – 15 Years Customer lists and relationships 3,370 1,054 13 – 17 Years Non-compete agreement 381 343 10 Years Other 1,583 210 3 – 5 Years |
Summary Of Amortization Expense | 2016 2015 2014 Amortization expense $ 4,426 $ 2,135 $ 2,027 |
Scheduled Amortization Of Intangible Assets For Next Five Years | 2017 2018 2019 2020 2021 Total Amortization expense $ 4,566 $ 4,449 $ 4,107 $ 3,946 $ 3,925 $ 20,993 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes [Abstract] | |
Schedule Of Income Before Income Taxes | 2016 2015 2014 Domestic $ 17,874 $ 5,701 $ 8,350 Foreign 538 167 353 Income before income taxes $ 18,412 $ 5,868 $ 8,703 |
Schedule Of Income Tax Expense | 2016 2015 2014 Current: Federal $ 3,948 $ 231 $ 898 State 626 142 211 Foreign 353 160 99 4,927 533 1,208 Deferred: Federal 2,836 1,011 127 State (9) 319 46 Foreign (120) -- -- 2,707 1,330 173 Income tax expense $ 7,634 $ 1,863 $ 1,381 |
Schedule Of Effective Income Tax Rate Reconciliation | 2016 2015 2014 Tax expense at statutory rate $ 6,444 $ 1,995 $ 2,959 Increase (reduction) in income taxes resulting from: Non-Deductible transaction costs 908 -- -- State income taxes, net of federal benefit 531 499 220 Non-deductible loss on unit disposals 455 -- -- Non-deductible entertainment expenses 221 184 218 Equity compensation 135 144 63 Foreign income taxes 130 118 69 Provision to return adjustments 29 122 (321) Non-deductible change in stock basis of subsidiary -- -- (641) Domestic production activities deduction (456) (87) (153) Research and development credit (296) (281) (237) Net change in uncertain tax positions (153) (869) (781) State valuation allowance adjustment (84) (19) 83 Other (230) 57 (98) Total Income tax expense $ 7,634 $ 1,863 $ 1,381 |
Schedule Of Deferred Tax Assets And Liabilities | 2016 2015 Deferred tax assets: Allowance for bad debts $ 208 $ 142 Inventory and deferred preservation costs write-downs 708 536 Investment in equity securities 58 58 Property 1,780 2,987 Intangible assets 2,034 591 Accrued expenses 4,215 3,276 Loss carryforwards 8,760 12,262 Credit carryforwards 1,001 616 Stock compensation 3,678 2,546 Transaction costs 122 1,048 Deferred compensation 973 957 UNICAP 371 55 Tax benefit of tax reserves 333 53 Other 409 382 Less valuation allowance (2,157) (2,109) Total deferred tax assets 22,493 23,400 2016 2015 Deferred tax liabilities: Prepaid items (436) (471) Intangible assets (21,665) (4,400) Other (399) (341) Total deferred tax liabilities (22,500) (5,212) Total net deferred tax (liabilities) assets $ (7) $ 18,188 |
Schedule Of Uncertain Tax Position Liability And Liability For Interest And Penalties On Uncertain Tax Positions | 2016 2015 2014 Beginning balance $ 969 $ 1,437 $ 2,100 Increases related to current year tax positions 86 103 92 Increases related to prior year tax positions 2,668 403 -- Decreases related to prior year tax positions (40) (70) (265) Decreases related to settlements (66) -- -- Decreases due to the lapsing of statutes of limitations (227) (904) (490) Ending balance $ 3,390 $ 969 $ 1,437 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): 2016 2015 2014 Beginning balance $ 210 $ 366 $ 422 Accrual of interest and penalties 92 50 91 Decreases related to prior year tax positions (94) (206) (147) Ending balance $ 208 $ 210 $ 366 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt [Abstract] | |
Schedule Of Short-Term And Long-Term Balances Of Term Loan | As of December 31, 2016 2015 Term loan balance $ 73,594 $ -- Less unamortized loan origination costs (2,020) -- Total borrowed 71,574 -- Less short-term loan balance (4,562) -- Long-term loan balance $ 67,012 $ -- |
Schedule Of Debt Maturities | 2017 2018 2019 2020 2021 Total Maturities $ 5,096 $ 3,750 $ 3,750 $ 5,156 $ 55,842 $ 73,594 |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies [Abstract] | |
Schedule Of Future Minimum Operating Lease Payments | Operating Sublease Leases Income 2017 $ 4,470 $ 375 2018 4,779 512 2019 4,722 525 2020 4,127 538 2021 3,647 552 Thereafter 3,788 -- Total minimum lease payments $ 25,533 $ 2,502 |
Stock Compensation (Tables)
Stock Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stock Compensation [Abstract] | |
Schedule Of Shares Available For Grant | Authorized Available for Grant Plan Shares 2016 2015 1996 Discounted Employee Stock Purchase Plan, as amended 1,900,000 469,000 560,000 2009 Employee Stock Incentive Plan 7,100,000 2,194,000 3,361,000 Total 9,000,000 2,663,000 3,921,000 |
Schedule Of Stock Grant Activity For RSAs | Weighted Average Grant Date RSAs Shares Fair Value Unvested at December 31, 2013 622,000 $ 5.62 Granted 232,000 9.97 Vested (324,000) 5.55 Forfeited (35,000) 7.22 Unvested at December 31, 2014 495,000 7.65 Granted 207,000 10.33 Vested (278,000) 8.10 Forfeited (110,000) 8.49 Unvested at December 31, 2015 314,000 9.31 Granted 216,000 10.84 Vested (138,000) 7.92 Forfeited -- -- Unvested at December 31, 2016 392,000 10.64 |
Schedule Of Stock Grant Activity For PSAs | Weighted Average Grant Date PSAs Shares Fair Value Unvested at December 31, 2013 -- $ -- Granted 250,000 10.18 Vested -- -- Forfeited -- -- Unvested at December 31, 2014 250,000 10.18 Granted -- -- Vested -- -- Forfeited -- -- Unvested at December 31, 2015 250,000 10.18 Granted -- -- Vested -- -- Forfeited -- -- Unvested at December 31, 2016 250,000 10.18 |
Schedule Of Stock Grant Activity For RSUs | Weighted Average Remaining Aggregate Contractual Intrinsic RSUs Shares Term in years Value Outstanding at December 31, 2013 129,000 1.56 $ 1,425,000 Granted 5,000 Vested (52,000) Forfeited (21,000) Outstanding at December 31, 2014 61,000 1.21 687,000 Granted 88,000 Vested (36,000) Forfeited (10,000) Outstanding at December 31, 2015 103,000 1.17 1,110,000 Granted 146,000 Vested (44,000) Forfeited (27,000) Outstanding at December 31, 2016 178,000 1.24 3,405,000 Vested and expected to vest 164,000 1.23 $ 3,132,000 |
Schedule Of Stock Grant Activity For PSUs | Weighted Average Remaining Aggregate Contractual Intrinsic PSUs Shares Term in years Value Outstanding at December 31, 2013 236,000 0.81 $ 2,612,000 Granted 185,000 Vested (143,000) Forfeited (21,000) Outstanding at December 31, 2014 257,000 0.73 2,907,000 Granted 125,000 Vested (139,000) Forfeited (108,000) Outstanding at December 31, 2015 135,000 0.74 1,455,000 Granted 144,000 Vested (83,000) Forfeited (8,000) Outstanding at December 31, 2016 188,000 0.77 3,603,000 Vested and expected to vest 178,000 0.73 $ 3,412,000 |
Summary Of Stock Option Activity | Weighted Average Weighted Remaining Aggregate Average Contractual Intrinsic Shares Exercise Price Term in years Value Outstanding at December 31, 2013 1,794,000 $ 6.57 3.31 $ 8,274,000 Granted 562,000 10.12 Exercised (297,000) 7.26 Forfeited (23,000) 7.97 Expired (15,000) 7.34 Outstanding at December 31, 2014 2,021,000 7.43 3.54 8,021,000 Granted 328,000 10.83 Exercised (248,000) 7.42 Forfeited (112,000) 9.93 Expired (93,000) 12.08 Outstanding at December 31, 2015 1,896,000 7.65 3.31 5,992,000 Granted 387,000 10.34 Exercised (372,000) 5.60 Forfeited -- -- Expired -- -- Outstanding at December 31, 2016 1,911,000 8.59 3.55 20,179,000 Vested and expected to vest 1,872,000 8.55 3.51 19,843,000 Exercisable at December 31, 2016 1,193,000 7.50 2.33 13,904,000 |
Summary Of Other Information Concerning Stock Options | 2016 2015 2014 Weighted-average fair value of options granted $ 3.68 $ 3.82 $ 4.14 Intrinsic value of options exercised 2,422,000 761,000 918,000 |
Schedule Of Weighted-Average Assumptions Used To Determine The Fair Value Of Options | 2016 2015 2014 Stock ESPP Stock ESPP Stock ESPP Options Options Options Options Options Options Expected life of options 4.75 Years 0.5 Years 4.5 Years 0.5 Years 4.2 Years 0.5 Years Expected stock price volatility 0.40 0.30 0.44 0.32 0.55 0.36 Dividend yield --% --% 1.12% 1.06% 1.16% 1.12% Risk-free interest rate 1.20% 0.43% 1.41% 0.12% 1.34% 0.08% |
Summary Of Total Stock Compensation Expenses | 2016 2015 2014 RSA, PSA, RSU, and PSU expense $ 4,966 $ 3,955 $ 2,855 Stock option and ESPP option expense 1,636 1,371 842 Total stock compensation expense $ 6,602 $ 5,326 $ 3,697 |
Income Per Common Share (Tables
Income Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Per Common Share [Abstract] | |
Computation Of Basic And Diluted Income Per Common Share | Basic income per common share 2016 2015 2014 Net income $ 10,778 $ 4,005 $ 7,322 Net income allocated to participating securities (208) (87) (161) Net income allocated to common shareholders $ 10,570 $ 3,918 $ 7,161 Basic weighted-average common shares outstanding 31,855 27,744 27,379 Basic income per common share $ 0.33 $ 0.14 $ 0.26 Diluted income per common share 2016 2015 2014 Net income $ 10,778 $ 4,005 $ 7,322 Net income allocated to participating securities (202) (87) (158) Net income allocated to common shareholders $ 10,576 $ 3,918 $ 7,164 Basic weighted-average common shares outstanding 31,855 27,744 27,379 Effect of dilutive options and awards a 967 798 934 Diluted weighted-average common shares outstanding 32,822 28,542 28,313 Diluted income per common share $ 0.32 $ 0.14 $ 0.25 a 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 1,000 , 710,000 , and 335,000 shares for the years ended December 31, 2016 , 2015 , and 2014 , respectively, were excluded from the calculation of diluted weighted-average common shares outstanding. |
Segment And Geographic Inform41
Segment And Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Information [Abstract] | |
Revenues, Cost Of Products And Services, And Gross Margins For Operating Segments | 2016 2015 2014 Revenues: Medical devices $ 113,992 $ 83,081 $ 81,883 Preservation services 66,388 62,817 62,758 Total revenues 180,380 145,898 144,641 Cost of products and preservation services: Medical devices 28,033 18,663 17,167 Preservation services 33,448 36,516 36,183 Total cost of products and preservation services 61,481 55,179 53,350 Gross margin: Medical devices 85,959 64,418 64,716 Preservation services 32,940 26,301 26,575 Total gross margin $ 118,899 $ 90,719 $ 91,291 |
Summary Of Net Revenues By Product And Service | 2016 2015 2014 Products: BioGlue and BioFoam $ 63,461 $ 59,332 $ 62,091 On-X 34,232 -- -- CardioGenesis cardiac laser therapy 7,864 9,419 8,225 PerClot 4,021 4,083 4,289 PhotoFix 1,871 1,396 -- HeRO Graft 2,325 7,546 7,131 ProCol 218 1,305 147 Total products 113,992 83,081 81,883 Preservation services: Cardiac tissue 29,697 28,059 29,437 Vascular tissue 36,691 34,758 33,321 Total preservation services 66,388 62,817 62,758 Total revenues $ 180,380 $ 145,898 $ 144,641 |
Schedule Of Net Revenues By Geographic Location | 2016 2015 2014 U.S. $ 131,727 $ 114,978 $ 110,533 International 48,653 30,920 34,108 Total revenues $ 180,380 $ 145,898 $ 144,641 |
Selected Quarterly Financial 42
Selected Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Selected Quarterly Financial Information [Abstract] | |
Schedule Of Quarterly Financial Information | First Second Third Fourth Quarter Quarter Quarter Quarter REVENUE: 2016 $ 43,016 * $ 47,083 * $ 45,252 * $ 45,029 * 2015 33,831 35,526 36,703 39,838 2014 35,731 34,690 37,069 37,151 GROSS MARGIN: 2016 $ 27,621 * $ 30,301 * $ 29,782 * $ 31,195 * 2015 19,667 21,554 22,982 26,516 2014 22,473 22,384 23,799 22,635 NET INCOME (LOSS): 2016 $ 2,541 * $ 2,347 * $ 2,993 * $ 2,897 * 2015 (274) (502) 2,145 2,636 2014 1,059 2,161 2,326 1,776 INCOME (LOSS) PER COMMON SHARE—DILUTED: 2016 $ 0.08 * $ 0.07 * $ 0.09 * $ 0.09 * 2015 (0.01) (0.02) 0.07 0.09 2014 0.04 0.08 0.08 0.06 * In January 2016 the Company completed its acquisition of On-X Life Technologies Holdings, Inc., which is being operated as a wholly owned subsidiary of CryoLife. In 2016 the Company also sold its HeRO Graft product line and its ProCol product line , and ceased sales of these products during 2016. |
Summary Of Significant Accoun43
Summary Of Significant Accounting Policies (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Advertising expense | $ 384,000 | $ 521,000 | $ 821,000,000 | ||||||||
Quarterly cash dividend | $ 0.03 | $ 0.03 | $ 0.03 | $ 0.03 | $ 0.03 | $ 0.03 | $ 0.03 | $ 0.0275 | $ 0 | $ 0.120 | $ 0.118 |
Allowance for doubtful accounts | $ 232,000 | $ 503,000 | $ 232,000 | ||||||||
Write-down to inventory | 467,000 | 858,000 | $ 140,000 | ||||||||
Write-downs to deferred preservation costs | $ 897,000 | 483,000 | $ 540,000 | ||||||||
Deferred income taxes | $ 18,188,000 | $ 18,188,000 | |||||||||
Minimum [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Advertising expense amortization period | 6 months | ||||||||||
Estimated useful lives | 3 years | ||||||||||
Maximum [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Advertising expense amortization period | 1 year | ||||||||||
Estimated useful lives | 10 years | ||||||||||
ESPP Options [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
ESPP, percentage of market price for eligible employees | 85.00% | ||||||||||
RSAs, PSAs, RSUs, PSUs And Stock Options [Member] | Minimum [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Vesting period | 1 year | ||||||||||
RSAs, PSAs, RSUs, PSUs And Stock Options [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 |
Summary Of Significant Accoun44
Summary Of Significant Accounting Policies (Schedule Of Supplemental Disclosures Of Cash Flow Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Summary Of Significant Accounting Policies [Abstract] | |||
Interest | $ 2,446 | $ 1 | $ 34 |
Income taxes | 2,501 | $ 145 | $ 3,450 |
Issuance of common stock for acquisition of On-X intangible assets | $ 34,593 |
Summary Of Significant Accoun45
Summary Of Significant Accounting Policies (Schedule Of Depreciation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Summary Of Significant Accounting Policies [Abstract] | |||
Depreciation expense | $ 3,958 | $ 3,728 | $ 4,001 |
Financial Instruments (Summary
Financial Instruments (Summary Of Financial Instruments Measured At Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | $ 4,165 | $ 1,379 |
Money Market Funds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 3,466 | 549 |
Restricted securities | 699 | 830 |
Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | 4,165 | 1,379 |
Level 1 [Member] | Money Market Funds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 3,466 | 549 |
Restricted securities | 699 | 830 |
Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | ||
Level 2 [Member] | Money Market Funds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | ||
Restricted securities | ||
Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets | ||
Level 3 [Member] | Money Market Funds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | ||
Restricted securities |
Cash Equivalents And Restrict47
Cash Equivalents And Restricted Cash And Securities (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted securities | $ 699,000 | $ 830,000 | |
Restricted cash | 5,000,000 | ||
Gross realized gains or losses on cash equivalents | 0 | 0 | $ 0 |
Cash [Member] | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | 0 | 5,000,000 | |
Money Market Funds [Member] | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted securities | 699,000 | 830,000 | |
Maturity Date Within Three Months [Member] | Money Market Funds [Member] | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted securities | 490,000 | 595,000 | |
Maturity Date Between Three Months And One Year [Member] | Money Market Funds [Member] | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted securities | $ 209,000 | $ 235,000 | |
Minimum [Member] | Maturity Date Between Three Months And One Year [Member] | Money Market Funds [Member] | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted securities maturity period | 3 months | 3 months | |
Maximum [Member] | Maturity Date Within Three Months [Member] | Money Market Funds [Member] | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted securities maturity period | 3 months | 3 months | |
Maximum [Member] | Maturity Date Between Three Months And One Year [Member] | Money Market Funds [Member] | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted securities maturity period | 1 year | 1 year |
Cash Equivalents And Restrict48
Cash Equivalents And Restricted Cash And Securities (Summary Of Cash Equivalents And Restricted Cash And Securities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash and Cash Equivalents [Line Items] | ||||
Cost Basis | $ 56,642 | $ 37,588 | $ 33,375 | $ 37,643 |
Cost Basis | 5,000 | |||
Cost Basis | 699 | 830 | ||
Cash [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cost Basis | 5,000 | |||
Unrealized Holding Gains | ||||
Estimated Market Value | 5,000 | |||
Money Market Funds [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cost Basis | 3,466 | 549 | ||
Cost Basis | 699 | 830 | ||
Unrealized Holding Gains | ||||
Estimated Market Value | 3,466 | 549 | ||
Estimated Market Value | $ 699 | $ 830 |
Acquisition Of On-X Life Tech49
Acquisition Of On-X Life Technologies (Narrative) (Details) - USD ($) $ in Thousands | Jan. 20, 2016 | Dec. 22, 2015 | Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | ||||||
Cash consideration | $ 1,226 | |||||
Transaction and integration costs | $ 7,400 | $ 7,400 | ||||
On-X [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Revenues | 34,200 | |||||
On-X Agreement [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Agreement date | Dec. 22, 2015 | |||||
Acquisition price | $ 128,200 | |||||
Close date | Jan. 20, 2016 | |||||
Total purchase price | $ 128,217 | $ 128,217 | ||||
Cash consideration | $ 93,600 | |||||
Common shares issued | 3,703,699 | |||||
Common stock consideration | $ 34,600 | |||||
Escrow deposit, part of payments to acquire business | $ 10,000 | |||||
Pro forma tax rate | 38.00% | 38.00% | 38.00% | |||
Plan [Member] | On-X Agreement [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition price | $ 130,000 |
Acquisition Of On-X Life Tech50
Acquisition Of On-X Life Technologies (Purchase Price Allocation) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||
Goodwill | $ 78,294 | $ 11,365 | $ 11,365 |
On-X Agreement [Member] | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 2,472 | ||
Receivables | 6,826 | ||
Inventories | 12,889 | ||
Intangible assets | 53,950 | ||
Goodwill | 68,229 | ||
Other assets | 6,891 | ||
Liabilities assumed | (23,040) | ||
Total purchase price | $ 128,217 |
Acquisition Of On-X Life Tech51
Acquisition Of On-X Life Technologies (Pro Forma Information) (Details) - On-X Agreement [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Business Acquisition [Line Items] | |||
Total revenues | $ 182,007 | $ 179,266 | |
Net income (loss) | $ 17,692 | $ (4,787) | |
Pro forma income (loss) per common share - basic | $ 0.54 | $ (0.15) | |
Pro forma income (loss) per common share - diluted | $ 0.53 | $ (0.15) | |
Pro forma tax rate | 38.00% | 38.00% | 38.00% |
Sales Of Business Components (D
Sales Of Business Components (Details) - USD ($) | Mar. 18, 2016 | Feb. 03, 2016 | May 16, 2012 | Jan. 31, 2015 | Dec. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Fair value of contingent consideration | $ 1,800,000 | $ 0 | |||||||
Gain (loss) on revaluation of contingent consideration | $ 0 | $ 0 | 1,900,000 | ||||||
Contingent consideration liability | 0 | 0 | |||||||
Proceeds from divestiture of business | 19,795,000 | ||||||||
Payments to acquire distribution rights | $ 1,226,000 | ||||||||
Inventory received | $ 1,700,000 | ||||||||
Hemosphere [Member] | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Total purchase price | 22,000,000 | ||||||||
Cash acquired from acquisition | 3,200,000 | ||||||||
Maximum amount of future consideration payment | $ 4,500,000 | ||||||||
Hancock Jaffe [Member] | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Distribution agreement amount of payment | 3,400,000 | $ 576,000 | $ 1,200,000 | $ 1,200,000 | $ 1,700,000 | ||||
HeRO Graft Product Line [Member] | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Amount of consideration received from sale of product line | $ 18,500,000 | ||||||||
Proceeds from divestiture of business | 17,800,000 | ||||||||
Pre-tax gain (loss) on sale business components | $ 8,800,000 | ||||||||
HeRO Graft Product Line [Member] | Scenario, Forecast [Member] | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Proceeds from divestiture of business | $ 740,000 | ||||||||
ProCol [Member] | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Proceeds from divestiture of business | 2,000,000 | ||||||||
Pre-tax gain (loss) on sale business components | (845,000) | ||||||||
Remaining prepayments settled | $ 1,700,000 | ||||||||
HeRO Graft And ProCol Product Lines [Member] | Maximum [Member] | Product Lines Concentration Risk [Member] | Total Revenues [Member] | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Concentration percentage | 10.00% | ||||||||
HeRO Graft And ProCol Product Lines [Member] | Maximum [Member] | Product Lines Concentration Risk [Member] | Long-Lived Assets [Member] | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Concentration percentage | 10.00% |
PhotoFix Distribution Agreeme53
PhotoFix Distribution Agreement And Acquisition (Details) | Apr. 13, 2016USD ($) | Dec. 31, 2016USD ($)contract |
Cash consideration | $ 1,226,000 | |
GBI Agreement [Member] | ||
Initial term of contract for distribution rights | 5 years | |
Number of contract renewals | contract | 2 | |
Term of contract renewals | 1 year | |
Close date | Apr. 13, 2016 | |
Total purchase price | $ 2,300,000 | |
Cash consideration | 1,200,000 | |
Advance consideration | 600,000 | |
Payment after successful transfer | $ 400,000 |
Direct Sales in France (Details
Direct Sales in France (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Direct Sales In France [Abstract] | |
Acquisition of French distribution business | $ 1,349 |
Investment In ValveXchange (Det
Investment In ValveXchange (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jul. 31, 2011 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2012 | |
Schedule of Cost-method Investments [Line Items] | |||||
Other non-operating expense recorded to write-down long-term note receivable from ValveXchange | $ 2,000,000 | ||||
ValveXchange, Inc. [Member] | Revolving Credit Facility [Member] | |||||
Schedule of Cost-method Investments [Line Items] | |||||
Loans receivable, revolving credit line, maximum capacity | $ 2,000,000 | ||||
Credit facility maturity date | Jul. 30, 2018 | ||||
Credit facility aggregate interest rate | 8.00% | ||||
Loan advances | $ 2,000,000 | ||||
Long-term note receivable | $ 0 | $ 0 | |||
Series A Junior Participating Preferred Stock [Member] | ValveXchange, Inc. [Member] | |||||
Schedule of Cost-method Investments [Line Items] | |||||
Preferred stock purchased, value | $ 3,500,000 | ||||
Preferred stock carrying value | $ 0 | $ 0 |
Medafor Matters (Details)
Medafor Matters (Details) - USD ($) shares in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Additional payment received for acquisition of outstanding shares | $ 891,000 | $ 530,000 | $ 15,400,000 | |
Cost-method Investments, Realized Gain (Loss) | $ 891,000 | $ 530,000 | ||
Medafor Inc. [Member] | ||||
Shares of common stock sold | 2.4 |
Inventories And Deferred Pres57
Inventories And Deferred Preservation Costs (Narrative) (Details) $ in Millions | Dec. 31, 2016USD ($) |
Inventory [Line Items] | |
Consignment inventory | $ 4.9 |
Domestic [Member] | |
Inventory [Line Items] | |
Consignment inventory percentage | 80.00% |
Foreign [Member] | |
Inventory [Line Items] | |
Consignment inventory percentage | 20.00% |
Inventories And Deferred Pres58
Inventories And Deferred Preservation Costs (Schedule Of Inventories) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Inventories And Deferred Preservation Costs [Abstract] | ||
Raw materials and supplies | $ 9,321 | $ 8,590 |
Work-in-process | 3,321 | 633 |
Finished goods | 13,651 | 5,420 |
Total inventories | $ 26,293 | $ 14,643 |
Inventories And Deferred Pres59
Inventories And Deferred Preservation Costs (Schedule Of Deferred Preservation Costs) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Total deferred preservation costs | $ 30,688 | $ 24,741 |
Cardiac Tissues [Member] | ||
Total deferred preservation costs | 15,768 | 11,722 |
Vascular Tissues [Member] | ||
Total deferred preservation costs | $ 14,920 | $ 13,019 |
Goodwill And Other Intangible60
Goodwill And Other Intangible Assets (Schedule Of Carrying Values Of Indefinite Lived Intangible Assets)(Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Indefinite-lived Intangible Assets [Line Items] | |||
Goodwill | $ 78,294 | $ 11,365 | $ 11,365 |
Total indefinite lived intangible assets | 81,148 | 14,238 | |
Procurement Contracts And Agreements [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Total indefinite lived intangible assets | 2,013 | 2,013 | |
Trademarks [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Total indefinite lived intangible assets | $ 841 | $ 860 |
Goodwill And Other Intangible61
Goodwill And Other Intangible Assets (Schedule Of Goodwill By Reportable Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Line Items] | ||
Beginning balance | $ 11,365 | $ 11,365 |
Ending balance | 78,294 | 11,365 |
On-X [Member] | ||
Goodwill [Line Items] | ||
Goodwill acquired | 68,229 | |
HeRO Graft [Member] | ||
Goodwill [Line Items] | ||
Goodwill allocated to sale | (1,200) | |
ProCol [Member] | ||
Goodwill [Line Items] | ||
Goodwill allocated to sale | $ (100) |
Goodwill And Other Intangible62
Goodwill And Other Intangible Assets (Schedule Of Gross Carrying Values, Accumulated Amortization, And Approximate Amortization Period Of Definite Lived Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Acquired Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 38,478 | $ 14,020 |
Accumulated amortization | 5,956 | 4,954 |
Customer Lists And Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 29,140 | 3,370 |
Accumulated amortization | 2,141 | 1,054 |
Distribution And Manufacturing Rights And Know-How [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 4,059 | 4,059 |
Accumulated amortization | 1,532 | 1,245 |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 3,710 | 4,081 |
Accumulated amortization | $ 2,702 | $ 2,664 |
Amortization Period | 17 years | 17 years |
Non-Compete Agreement [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 381 | $ 381 |
Accumulated amortization | $ 381 | $ 343 |
Amortization Period | 10 years | 10 years |
Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 1,262 | $ 1,583 |
Accumulated amortization | $ 531 | $ 210 |
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] | Distribution And Manufacturing Rights And Know-How [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 11 years | 11 years |
Minimum [Member] | Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 3 years | |
Maximum [Member] | Acquired Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 22 years | 16 years |
Maximum [Member] | Customer Lists And Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 22 years | 17 years |
Maximum [Member] | Distribution And Manufacturing Rights And Know-How [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 15 years | 15 years |
Maximum [Member] | Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 3 years | 5 years |
Goodwill And Other Intangible63
Goodwill And Other Intangible Assets (Summary Of Amortization Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill And Other Intangible Assets [Abstract] | |||
Amortization expense | $ 4,426 | $ 2,135 | $ 2,027 |
Goodwill And Other Intangible64
Goodwill And Other Intangible Assets (Scheduled Amortization Of Intangible Assets For Next Five Years) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Goodwill And Other Intangible Assets [Abstract] | |
Amortization estimate, 2017 | $ 4,566 |
Amortization estimate, 2018 | 4,449 |
Amortization estimate, 2019 | 4,107 |
Amortization estimate, 2020 | 3,946 |
Amortization estimate, 2021 | 3,925 |
Amortization estimate, Total | $ 20,993 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Effective income tax rate | 41.00% | 32.00% | 16.00% |
Reversal in uncertain tax positions | $ (153,000) | $ (869,000) | $ (781,000) |
Unrecognized tax benefits, reduction resulting from lapse of applicable statute of limitations | $ 227,000 | $ 904,000 | $ 490,000 |
Federal statutory income tax rate | 35.00% | 34.00% | 34.00% |
Valuation allowances against deferred tax assets | $ 2,157,000 | $ 2,109,000 | |
Net deferred tax liability | 7,000 | ||
Net deferred tax asset | 18,188,000 | ||
Federal net operating loss carryforwards related to the acquisitions of Cardiogenesis and Hemosphere | 6,300,000 | ||
State net operating loss carryforwards | 2,400,000 | ||
Research and development tax credit carryforwards | 702,000 | ||
Total uncertain tax liability including interest and penalties | 3,600,000 | 1,200,000 | |
Uncertain tax liability recorded as reduction to deferred tax assets | 234,000 | 104,000 | |
Uncertain tax liability recorded to non-current liability | 3,400,000 | $ 1,100,000 | |
Approximate amount of uncertain tax liability to be recognized in 2017 | $ 235,000 | ||
Research [Member] | |||
Tax credit carryforwards expiration date | Dec. 31, 2022 | ||
Texas Tax Credit [Member] | |||
Other tax credit | $ 150,000 | ||
Federal [Member] | |||
Operating loss carryforwards expiration date | Dec. 31, 2017 | ||
State [Member] | |||
Operating loss carryforwards expiration date | Jan. 1, 2016 | ||
Texas [Member] | State [Member] | |||
Tax credit carryforwards expiration date | Dec. 31, 2027 |
Income Taxes (Schedule Of Incom
Income Taxes (Schedule Of Income Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Abstract] | |||
Domestic | $ 17,874 | $ 5,701 | $ 8,350 |
Foreign | 538 | 167 | 353 |
Income before income taxes | $ 18,412 | $ 5,868 | $ 8,703 |
Income Taxes (Schedule Of Inc67
Income Taxes (Schedule Of Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Abstract] | |||
Current: Federal | $ 3,948 | $ 231 | $ 898 |
Current: State | 626 | 142 | 211 |
Current: Foreign | 353 | 160 | 99 |
Current: Income tax expense | 4,927 | 533 | 1,208 |
Deferred: Federal | 2,836 | 1,011 | 127 |
Deferred: State | (9) | 319 | 46 |
Deferred: Foreign | (120) | ||
Deferred: Income tax expense | 2,707 | 1,330 | 173 |
Income tax expense | $ 7,634 | $ 1,863 | $ 1,381 |
Income Taxes (Schedule Of Effec
Income Taxes (Schedule Of Effective Income Tax Rate Reconciliation) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Abstract] | |||
Tax expense at statutory rate | $ 6,444,000 | $ 1,995,000 | $ 2,959,000 |
Non-Deductible transaction costs | 908,000 | ||
State income taxes, net of federal benefit | 531,000 | 499,000 | 220,000 |
Non-deductible loss on unit disposals | 455,000 | ||
Non-deductible entertainment expenses | 221,000 | 184,000 | 218,000 |
Equity compensation | 135,000 | 144,000 | 63,000 |
Foreign income taxes | 130,000 | 118,000 | 69,000 |
Provision to return adjustments | 29,000 | 122,000 | (321,000) |
Non-deductible change in stock basis of subsidiary | (641,000) | ||
Domestic production activities deduction | (456,000) | (87,000) | (153,000) |
Research and development credit | (296,000) | (281,000) | (237,000) |
Net change in uncertain tax positions | (153,000) | (869,000) | (781,000) |
State valuation allowance adjustment | (84,000) | (19,000) | 83,000 |
Other | (230,000) | 57,000 | (98,000) |
Income tax expense | $ 7,634,000 | $ 1,863,000 | $ 1,381,000 |
Income Taxes (Schedule Of Defer
Income Taxes (Schedule Of Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Income Taxes [Abstract] | ||
Allowance for bad debts | $ 208 | $ 142 |
Inventory and deferred preservation costs write-downs | 708 | 536 |
Investment in equity securities | 58 | 58 |
Property | 1,780 | 2,987 |
Intangible assets | 2,034 | 591 |
Accrued expenses | 4,215 | 3,276 |
Loss carryforwards | 8,760 | 12,262 |
Credit carryforwards | 1,001 | 616 |
Stock compensation | 3,678 | 2,546 |
Transaction Costs | 122 | 1,048 |
Deferred compensation | 973 | 957 |
UNICAP | 371 | 55 |
Tax benefit of tax reserves | 333 | 53 |
Other | 409 | 382 |
Less valuation allowance | (2,157) | (2,109) |
Total deferred tax assets | 22,493 | 23,400 |
Prepaid items | (436) | (471) |
Intangible assets | (21,665) | (4,400) |
Other | (399) | (341) |
Total deferred tax liabilities | (22,500) | (5,212) |
Total net deferred tax liabilities | $ (7) | |
Total net deferred tax assets | $ 18,188 |
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 ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Abstract] | |||
Beginning balance | $ 969 | $ 1,437 | $ 2,100 |
Increases related to current year tax positions | 86 | 103 | 92 |
Increases related to prior year tax positions | 2,668 | 403 | |
Decreases related to prior year tax positions | (40) | (70) | (265) |
Decreases related to settlements | (66) | ||
Decreases due to the lapsing of statutes of limitations | (227) | (904) | (490) |
Ending balance | 3,390 | 969 | 1,437 |
Beginning Balance | 210 | 366 | 422 |
Accrual of interest and penalties | 92 | 50 | 91 |
Decreases related to prior year tax positions | (94) | (206) | (147) |
Ending Balance | $ 208 | $ 210 | $ 366 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | Jan. 20, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Line of Credit Facility [Line Items] | ||||
Term loan balance | $ 73,594,000 | |||
Restricted cash and cash equivalents | $ 5,000,000 | |||
Interest expense | 3,000,000 | $ 62,000 | $ 175,000 | |
Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Credit facility aggregate commitments | $ 20,000,000 | |||
Credit facility maturity date | Sep. 26, 2019 | |||
Credit facility aggregate interest rate | 4.75% | |||
Credit facility outstanding balance | $ 0 | |||
Credit facility remaining availability | $ 20,000,000 | |||
Revolving Credit Facility [Member] | On-X Agreement [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Credit facility aggregate commitments | $ 20,000,000 | |||
Credit facility commitment fee percentage | 0.50% | |||
Senior Secured Credit Facility [Member] | On-X Agreement [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Credit facility aggregate commitments | $ 95,000,000 | |||
Credit facility aggregate interest rate | 3.50% | |||
Credit facility default interest rate | 2.00% | |||
Senior Secured Credit Facility [Member] | Minimum [Member] | Base Rate [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Credit facility margin | 1.75% | |||
Senior Secured Credit Facility [Member] | Minimum [Member] | LIBOR [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Credit facility margin | 2.75% | |||
Senior Secured Credit Facility [Member] | Maximum [Member] | Base Rate [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Credit facility margin | 2.75% | |||
Senior Secured Credit Facility [Member] | Maximum [Member] | LIBOR [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Credit facility margin | 3.75% | |||
Term Loan [Member] | On-X Agreement [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Term loan balance | $ 75,000,000 | |||
Credit facility maturity date | Jan. 20, 2021 | |||
Letter Of Credit Sub-Facility [Member] | On-X Agreement [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Credit facility aggregate commitments | 4,000,000 | |||
Swing-Line Sub-Facility [Member] | On-X Agreement [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Credit facility aggregate commitments | $ 3,000,000 | |||
Swing-Line Sub-Facility [Member] | Minimum [Member] | Base Rate [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Credit facility margin | 1.75% | |||
Swing-Line Sub-Facility [Member] | Maximum [Member] | Base Rate [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Credit facility margin | 2.75% |
Debt (Schedule Of Short-Term An
Debt (Schedule Of Short-Term And Long-Term Balances Of Term Loan) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Debt [Abstract] | |
Term loan balance | $ 73,594 |
Less unamortized loan origination costs | (2,020) |
Total | 71,574 |
Less short-term loan balance | (4,562) |
Long-term loan balance | $ 67,012 |
Debt (Schedule Of Debt Maturiti
Debt (Schedule Of Debt Maturities) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Debt [Abstract] | |
2,017 | $ 5,096 |
2,018 | 3,750 |
2,019 | 3,750 |
2,020 | 5,156 |
2,021 | 55,842 |
Total | $ 73,594 |
Commitments And Contingencies74
Commitments And Contingencies (Narrative) (Details) - USD ($) | Sep. 02, 2014 | Sep. 28, 2010 | Jan. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Other Commitments [Line Items] | |||||||
Deferred rent obligations | $ 2,355,000 | $ 1,735,000 | |||||
Lease expiration | Dec. 31, 2022 | ||||||
Total rental expense for operating leases | $ 4,300,000 | 3,400,000 | $ 3,000,000 | ||||
Unreported loss liability | 1,500,000 | 1,400,000 | |||||
Recoverable insurance amounts | 626,000 | 600,000 | |||||
Property and equipment, net | 18,502,000 | $ 11,484,000 | |||||
PerClot [Member] | |||||||
Other Commitments [Line Items] | |||||||
Prepaid royalties | 1,500,000 | ||||||
Net intangible assets | 2,900,000 | ||||||
Property and equipment, net | $ 1,200,000 | ||||||
Performance Stock Awards (PSAs) [Member] | |||||||
Other Commitments [Line Items] | |||||||
Authorized awards from approved stock incentive plans | 250,000 | ||||||
Stock Options [Member] | |||||||
Other Commitments [Line Items] | |||||||
Grants of stock options | 387,000 | 328,000 | 562,000 | ||||
CEO [Member] | |||||||
Other Commitments [Line Items] | |||||||
Term of employment agreement | 3 years | ||||||
One-time signing bonus | $ 200,000 | ||||||
CEO [Member] | Performance Stock Awards (PSAs) [Member] | |||||||
Other Commitments [Line Items] | |||||||
Authorized awards from approved stock incentive plans | 250,000 | ||||||
CEO [Member] | Stock Options [Member] | |||||||
Other Commitments [Line Items] | |||||||
Grants of stock options | 400,000 | ||||||
Chair Of Board Of Directors [Member] | |||||||
Other Commitments [Line Items] | |||||||
Severance payment | $ 1,400,000 | ||||||
Remaining severance obligations | $ 83,000 | $ 93,000 | |||||
Maximum [Member] | |||||||
Other Commitments [Line Items] | |||||||
Estimated loss | 2,800,000 | ||||||
Starch Technology Purchase [Member] | |||||||
Other Commitments [Line Items] | |||||||
Term of distribution agreement | 15 years | ||||||
Amount paid related to achievement of contingent milestone | $ 500,000 | ||||||
Expected future contingent payment amounts to be initially recorded as research and development expense | $ 1,000,000 |
Commitments And Contingencies75
Commitments And Contingencies (Schedule Of Future Minimum Operating Lease Payments) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Commitments And Contingencies [Abstract] | |
2017, Operating Leases | $ 4,470 |
2018, Operating Leases | 4,779 |
2019, Operating Leases | 4,722 |
2020, Operating Leases | 4,127 |
2021, Operating Leases | 3,647 |
Thereafter, Operating Leases | 3,788 |
Total minimum lease payments | 25,533 |
2017, Sublease Income | 375 |
2018, Sublease Income | 512 |
2019, Sublease Income | 525 |
2020, Sublease Income | 538 |
2021, Sublease Income | 552 |
Total minimum sublease income | $ 2,502 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Equity, Class of Treasury Stock [Line Items] | ||
Dividend payment from cash on hand | $ 3,408 | $ 3,295 |
Series A Junior Participating Preferred Stock [Member] | ||
Equity, Class of Treasury Stock [Line Items] | ||
Price of Rights per unit | $ 33.33 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - 401(K) [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Company's matching percentage of employees' contribution | 40.00% | 40.00% | 40.00% |
Company's matching contribution of employees' salary | 5.00% | 5.00% | 5.00% |
Company's total contributions | $ 750,000 | $ 573,000 | $ 553,000 |
Discretionary contributions | $ 0 | $ 0 | $ 0 |
Stock Compensation (Narrative)
Stock Compensation (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total fair value | $ 2,900,000 | $ 4,800,000 | $ 5,000,000 | |
Employees purchased common stock, shares | 90,000 | 78,000 | 111,000 | |
Capitalized stock compensation expense | $ 274,000 | $ 237,000 | $ 261,000 | |
ESPP Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
ESPP, percentage of market price for eligible employees | 85.00% | |||
RSAs, RSUs, And PSUs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Authorized awards from approved stock incentive plans | 405,000 | 655,000 | ||
Aggregate grant date market value | $ 4,300,000 | $ 6,600,000 | ||
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants of stock options | 387,000 | 328,000 | 562,000 | |
Unrecognized compensation costs | $ 1,800,000 | |||
Expected weighted-average period for recognizing the unrecognized compensation costs, in years | 1 year 7 months 6 days | |||
RSAs, RSUs, PSUs, And PSAs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Authorized awards from approved stock incentive plans | 490,000 | |||
Aggregate grant date market value | $ 5,500,000 | |||
Unrecognized compensation costs | $ 5,100,000 | |||
Restricted Stock Awards (RSAs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Authorized awards from approved stock incentive plans | 216,000 | 207,000 | 232,000 | |
Expected weighted-average period for recognizing the unrecognized compensation costs, in years | 1 year 3 months 18 days | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Authorized awards from approved stock incentive plans | 146,000 | 88,000 | 5,000 | |
Expected weighted-average period for recognizing the unrecognized compensation costs, in years | 2 years 1 month 6 days | |||
Performance Stock Units (PSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Authorized awards from approved stock incentive plans | 144,000 | 125,000 | 185,000 | |
Percentage of target number of shares of common stock granted as Performance Stock Units | 142.00% | 127.00% | 50.00% | |
Expected weighted-average period for recognizing the unrecognized compensation costs, in years | 9 months 18 days | |||
Performance Stock Awards (PSAs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Authorized awards from approved stock incentive plans | 250,000 | |||
Expected weighted-average period for recognizing the unrecognized compensation costs, in years | 8 months 12 days | |||
Minimum [Member] | Performance Stock Units (PSUs) [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 | 60.00% | |||
Maximum [Member] | Performance Stock Units (PSUs) [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% |
Stock Compensation (Schedule Of
Stock Compensation (Schedule Of Shares Available For Grant) (Details) - shares | Dec. 31, 2016 | Dec. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Authorized Shares | 9,000,000 | |
Available for Grant | 2,663,000 | 3,921,000 |
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 | 469,000 | 560,000 |
2009 Employee Stock Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Authorized Shares | 7,100,000 | |
Available for Grant | 2,194,000 | 3,361,000 |
Stock Compensation (Schedule 80
Stock Compensation (Schedule Of Weighted-Average Assumptions Used To Determine The Fair Value Of Options) (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life of options | 4 years 9 months | 4 years 6 months | 4 years 2 months 12 days |
Expected stock price volatility | 0.40% | 0.44% | 0.55% |
Dividends | 1.12% | 1.16% | |
Risk-free interest rate | 1.20% | 1.41% | 1.34% |
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 | 0.30% | 0.32% | 0.36% |
Dividends | 1.06% | 1.12% | |
Risk-free interest rate | 0.43% | 0.12% | 0.08% |
Stock Compensation (Schedule 81
Stock Compensation (Schedule Of Stock Grant Activity For RSAs) (Details) - Restricted Stock Awards (RSAs) [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unvested, Beginning Balance, Shares | 314,000 | 495,000 | 622,000 |
Granted, Shares | 216,000 | 207,000 | 232,000 |
Vested, Shares | (138,000) | (278,000) | (324,000) |
Forfeited, Shares | (110,000) | (35,000) | |
Unvested, Ending Balance, Shares | 392,000 | 314,000 | 495,000 |
Unvested, Beginning Balance, Weighted Average Grant Date Fair Value | $ 9.31 | $ 7.65 | $ 5.62 |
Granted, Weighted Average Grant Date Fair Value | 10.84 | 10.33 | 9.97 |
Vested, Weighted Average Grant Date Fair Value | 7.92 | 8.10 | 5.55 |
Forfeited, Weighted Average Grant Date Fair Value | 8.49 | 7.22 | |
Unvested, Ending Balance, Weighted Average Grant Date Fair Value | $ 10.64 | $ 9.31 | $ 7.65 |
Stock Compensation (Summary Of
Stock Compensation (Summary Of Total Stock Compensation Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation expense | $ 6,602 | $ 5,326 | $ 3,697 |
RSA, PSA, RSU, And PSU Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation expense | 4,966 | 3,955 | 2,855 |
Stock Option And ESPP Option Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation expense | $ 1,636 | $ 1,371 | $ 842 |
Stock Compensation (Schedule 83
Stock Compensation (Schedule Of Stock Grant Activity For PSAs) (Details) - Performance Stock Awards (PSAs) [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Unvested, Beginning Balance, Shares | 250,000 | 250,000 | |
Granted, Shares | 250,000 | ||
Vested, Shares | |||
Forfeited, Shares | |||
Unvested, Ending Balance, Shares | 250,000 | 250,000 | 250,000 |
Unvested, Beginning Balance, Weighted Average Grant Date Fair Value | $ 10.18 | $ 10.18 | |
Granted, Weighted Average Grant Date Fair Value | 10.18 | ||
Vested, Weighted Average Grant Date Fair Value | |||
Forfeited, Weighted Average Grant Date Fair Value | |||
Unvested, Ending Balance, Weighted Average Grant Date Fair Value | $ 10.18 | $ 10.18 | $ 10.18 |
Stock Compensation (Schedule 84
Stock Compensation (Schedule Of Stock Grant Activity For RSUs) (Details) - Restricted Stock Units (RSUs) [Member] - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unvested, Beginning Balance, Shares | 103,000 | 61,000 | 129,000 | |
Granted, Shares | 146,000 | 88,000 | 5,000 | |
Vested, Shares | (44,000) | (36,000) | (52,000) | |
Forfeited, Shares | (27,000) | (10,000) | (21,000) | |
Unvested, Ending Balance, Shares | 178,000 | 103,000 | 61,000 | 129,000 |
Vested and expected to vest, Shares | 164,000 | |||
Outstanding, Weighted Average Remaining Contractual Term in Years | 1 year 2 months 27 days | 1 year 2 months 1 day | 1 year 2 months 16 days | 1 year 6 months 22 days |
Vested and expected to vest, Weighted Average Remaining Contractual Term in Years | 1 year 2 months 23 days | |||
Outstanding, Aggregate Intrinsic Value | $ 3,405,000 | $ 1,110,000 | $ 687,000 | $ 1,425,000 |
Vested and expected to vest, Aggregate Intrinsic Value | $ 3,132,000 |
Stock Compensation (Schedule 85
Stock Compensation (Schedule Of Stock Grant Activity For PSUs) (Details) - Performance Stock Units (PSUs) [Member] - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unvested, Beginning Balance, Shares | 135,000 | 257,000 | 236,000 | |
Granted, Shares | 144,000 | 125,000 | 185,000 | |
Vested, Shares | (83,000) | (139,000) | (143,000) | |
Forfeited, Shares | (8,000) | (108,000) | (21,000) | |
Unvested, Ending Balance, Shares | 188,000 | 135,000 | 257,000 | 236,000 |
Vested and expected to vest, Shares | 178,000 | |||
Outstanding, Weighted Average Remaining Contractual Term in Years | 9 months 7 days | 8 months 27 days | 8 months 23 days | 9 months 22 days |
Vested and expected to vest, Weighted Average Remaining Contractual Term in Years | 8 months 23 days | |||
Outstanding, Aggregate Intrinsic Value | $ 3,603,000 | $ 1,455,000 | $ 2,907,000 | $ 2,612,000 |
Vested and expected to vest, Aggregate Intrinsic Value | $ 3,412,000 |
Stock Compensation (Summary O86
Stock Compensation (Summary Of Stock Option Activity) (Details) - Stock Options [Member] - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Outstanding, Beginning Balance, Shares | 1,896,000 | 2,021,000 | 1,794,000 | |
Granted, Shares | 387,000 | 328,000 | 562,000 | |
Exercised, Shares | (372,000) | (248,000) | (297,000) | |
Forfeited, Shares | (112,000) | (23,000) | ||
Expired, Shares | (93,000) | (15,000) | ||
Outstanding, Ending Balance, Shares | 1,911,000 | 1,896,000 | 2,021,000 | 1,794,000 |
Vested and expected to vest, Shares | 1,872,000 | |||
Exercisable, Shares | 1,193,000 | |||
Outstanding, Beginning Balance, Weighted Average Exercise Price | $ 7.65 | $ 7.43 | $ 6.57 | |
Granted, Weighted Average Exercise Price | 10.34 | 10.83 | 10.12 | |
Exercised, Weighted Average Exercise Price | 5.60 | 7.42 | 7.26 | |
Forfeited, Weighted Average Exercise Price | 9.93 | 7.97 | ||
Expired, Weighted Average Exercise Price | 12.08 | 7.34 | ||
Outstanding, Ending Balance, Weighted Average Exercise Price | 8.59 | $ 7.65 | $ 7.43 | $ 6.57 |
Vested and expected to vest, Weighted Average Exercise Price | 8.55 | |||
Exercisable, Weighted Average Exercise Price | $ 7.50 | |||
Outstanding, Weighted Average Remaining Contractual Term in years | 3 years 6 months 18 days | 3 years 3 months 22 days | 3 years 6 months 15 days | 3 years 3 months 22 days |
Vested and expected to vest, Weighted Average Remaining Contractual Term in Years | 3 years 6 months 4 days | |||
Exercisable, Weighted Average Remaining Contractual Term in years | 2 years 3 months 29 days | |||
Outstanding, Aggregate Intrinsic Value | $ 20,179,000 | $ 5,992,000 | $ 8,021,000 | $ 8,274,000 |
Vested and expected to vest, Aggregate Intrinsic Value | 19,843,000 | |||
Exercisable, Aggregate Intrinsic Value | $ 13,904,000 |
Stock Compensation (Summary O87
Stock Compensation (Summary Of Other Information Concerning Stock Options) (Details) - Stock Options [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average fair value of options granted | $ 3.68 | $ 3.82 | $ 4.14 |
Intrinsic value of options exercised | $ 2,422,000 | $ 761,000 | $ 918,000 |
Income Per Common Share (Detail
Income Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2016 | [1] | Sep. 30, 2016 | [1] | Jun. 30, 2016 | [1] | Mar. 31, 2016 | [1] | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||||||||||||
Net income | $ 2,897 | $ 2,993 | $ 2,347 | $ 2,541 | $ 2,636 | $ 2,145 | $ (502) | $ (274) | $ 1,776 | $ 2,326 | $ 2,161 | $ 1,059 | $ 10,778 | $ 4,005 | $ 7,322 | |||||||
Net income (loss) allocated to participating securities | (208) | (87) | (161) | |||||||||||||||||||
Net income allocated to common shareholders | $ 10,570 | $ 3,918 | $ 7,161 | |||||||||||||||||||
Basic weighted-average common shares outstanding | 31,855,000 | 27,744,000 | 27,379,000 | |||||||||||||||||||
Basic income per common share | $ 0.33 | $ 0.14 | $ 0.26 | |||||||||||||||||||
Net income (loss) allocated to participating securities, diluted | $ (202) | $ (87) | $ (158) | |||||||||||||||||||
Net income allocated to common shareholders, diluted | $ 10,576 | $ 3,918 | $ 7,164 | |||||||||||||||||||
Effect of dilutive stock options and awards | 967,000 | 798,000 | 934,000 | |||||||||||||||||||
Diluted weighted-average common shares outstanding | 32,822,000 | 28,542,000 | 28,313,000 | |||||||||||||||||||
Diluted income per common share | $ 0.09 | $ 0.09 | $ 0.07 | $ 0.08 | $ 0.09 | $ 0.07 | $ (0.02) | $ (0.01) | $ 0.06 | $ 0.08 | $ 0.08 | $ 0.04 | $ 0.32 | [2] | $ 0.14 | [2] | $ 0.25 | [2] | ||||
Stock Options [Member] | ||||||||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||||||||||||
Antidilutive securities excluded from computation of earnings per share | 1,000 | 710,000 | 335,000 | |||||||||||||||||||
[1] | In January 2016 the Company completed its acquisition of On-X Life Technologies Holdings, Inc., which is being operated as a wholly owned subsidiary of CryoLife. In 2016 the Company also sold its HeRO Graft product line and its ProCol product line, and ceased sales of these products during 2016. | |||||||||||||||||||||
[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 1,000, 710,000, and 335,000 shares for the years ended December 31, 2016, 2015, and 2014, respectively, were excluded from the calculation of diluted weighted-average common shares outstanding. |
Transactions With Related Par89
Transactions With Related Parties (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
On-X [Member] | |||
Related Party Transaction [Line Items] | |||
Purchases from related party transactions | $ 3,000,000 | ||
Member Of Board Of Directors [Member] | |||
Related Party Transaction [Line Items] | |||
Repurchases of common stock | $ 5,600,000 | ||
Revenue from related parties | 316,000 | $ 329,000 | 273,000 |
Purchases from related party transactions | 39,000 | 35,000 | 45,000 |
Son Of Member Of Board Of Directors [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 479,000 | 617,000 | $ 616,000 |
President And CEO [Member] | |||
Related Party Transaction [Line Items] | |||
Purchases from related party transactions | $ 44,000 | $ 43,000 | |
Maximum [Member] | Member Of Board Of Directors [Member] | |||
Related Party Transaction [Line Items] | |||
Percentage of commissions included in stock repurchases | 1.00% | 1.00% | 1.00% |
Segment And Geographic Inform90
Segment And Geographic Information (Revenues, Cost Of Products And Services, And Gross Margins For Operating Segments) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | [1] | Jun. 30, 2016USD ($) | [1] | Mar. 31, 2016USD ($) | [1] | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2016USD ($)segment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | ||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Number of reportable segments | segment | 2 | ||||||||||||||||||
Total revenues | $ 45,029 | [1] | $ 45,252 | $ 47,083 | $ 43,016 | $ 39,838 | $ 36,703 | $ 35,526 | $ 33,831 | $ 37,151 | $ 37,069 | $ 34,690 | $ 35,731 | $ 180,380 | $ 145,898 | $ 144,641 | |||
Total cost of products and preservation services | 61,481 | 55,179 | 53,350 | ||||||||||||||||
Total gross margin | 31,195 | [1] | $ 29,782 | $ 30,301 | $ 27,621 | 26,516 | $ 22,982 | $ 21,554 | $ 19,667 | 22,635 | $ 23,799 | $ 22,384 | $ 22,473 | 118,899 | 90,719 | 91,291 | |||
Goodwill | 78,294 | 11,365 | $ 11,365 | 78,294 | 11,365 | 11,365 | |||||||||||||
Medical Devices [Member] | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Goodwill | $ 78,300 | $ 11,400 | 78,300 | 11,400 | |||||||||||||||
Intersegment Eliminations [Member] | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Total revenues | 0 | ||||||||||||||||||
Operating Segments [Member] | Medical Devices [Member] | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Total revenues | 113,992 | 83,081 | 81,883 | ||||||||||||||||
Total cost of products and preservation services | 28,033 | 18,663 | 17,167 | ||||||||||||||||
Total gross margin | 85,959 | 64,418 | 64,716 | ||||||||||||||||
Operating Segments [Member] | Preservation Services [Member] | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Total revenues | 66,388 | 62,817 | 62,758 | ||||||||||||||||
Total cost of products and preservation services | 33,448 | 36,516 | 36,183 | ||||||||||||||||
Total gross margin | 32,940 | 26,301 | 26,575 | ||||||||||||||||
Domestic [Member] | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Total revenues | $ 131,727 | $ 114,978 | $ 110,533 | ||||||||||||||||
Domestic [Member] | Long-Lived Assets [Member] | Geographic Concentration Risk [Member] | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Concentration percentage | 99.00% | 99.00% | |||||||||||||||||
[1] | In January 2016 the Company completed its acquisition of On-X Life Technologies Holdings, Inc., which is being operated as a wholly owned subsidiary of CryoLife. In 2016 the Company also sold its HeRO Graft product line and its ProCol product line, and ceased sales of these products during 2016. |
Segment And Geographic Inform91
Segment And Geographic Information (Summary Of Net Revenues By Product And Service) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2016 | [1] | Sep. 30, 2016 | [1] | Jun. 30, 2016 | [1] | Mar. 31, 2016 | [1] | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Product Information [Line Items] | |||||||||||||||||||
Total revenues | $ 45,029 | $ 45,252 | $ 47,083 | $ 43,016 | $ 39,838 | $ 36,703 | $ 35,526 | $ 33,831 | $ 37,151 | $ 37,069 | $ 34,690 | $ 35,731 | $ 180,380 | $ 145,898 | $ 144,641 | ||||
BioGlue And BioFoam [Member] | |||||||||||||||||||
Product Information [Line Items] | |||||||||||||||||||
Total revenues | 63,461 | 59,332 | 62,091 | ||||||||||||||||
On-X [Member] | |||||||||||||||||||
Product Information [Line Items] | |||||||||||||||||||
Total revenues | 34,232 | ||||||||||||||||||
CardioGenesis Cardiac Laser Therapy [Member] | |||||||||||||||||||
Product Information [Line Items] | |||||||||||||||||||
Total revenues | 7,864 | 9,419 | 8,225 | ||||||||||||||||
PerClot [Member] | |||||||||||||||||||
Product Information [Line Items] | |||||||||||||||||||
Total revenues | 4,021 | 4,083 | 4,289 | ||||||||||||||||
PhotoFix [Member] | |||||||||||||||||||
Product Information [Line Items] | |||||||||||||||||||
Total revenues | 1,871 | 1,396 | |||||||||||||||||
HeRO Graft [Member] | |||||||||||||||||||
Product Information [Line Items] | |||||||||||||||||||
Total revenues | 2,325 | 7,546 | 7,131 | ||||||||||||||||
ProCol [Member] | |||||||||||||||||||
Product Information [Line Items] | |||||||||||||||||||
Total revenues | 218 | 1,305 | 147 | ||||||||||||||||
Cardiac Tissues [Member] | |||||||||||||||||||
Product Information [Line Items] | |||||||||||||||||||
Total revenues | 29,697 | 28,059 | 29,437 | ||||||||||||||||
Vascular Tissues [Member] | |||||||||||||||||||
Product Information [Line Items] | |||||||||||||||||||
Total revenues | 36,691 | 34,758 | 33,321 | ||||||||||||||||
Operating Segments [Member] | Medical Devices [Member] | |||||||||||||||||||
Product Information [Line Items] | |||||||||||||||||||
Total revenues | 113,992 | 83,081 | 81,883 | ||||||||||||||||
Operating Segments [Member] | Preservation Services [Member] | |||||||||||||||||||
Product Information [Line Items] | |||||||||||||||||||
Total revenues | $ 66,388 | $ 62,817 | $ 62,758 | ||||||||||||||||
[1] | In January 2016 the Company completed its acquisition of On-X Life Technologies Holdings, Inc., which is being operated as a wholly owned subsidiary of CryoLife. In 2016 the Company also sold its HeRO Graft product line and its ProCol product line, and ceased sales of these products during 2016. |
Segment And Geographic Inform92
Segment And Geographic Information (Schedule Of Net Revenues By Geographic Location) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2016 | [1] | Sep. 30, 2016 | [1] | Jun. 30, 2016 | [1] | Mar. 31, 2016 | [1] | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Total revenues | $ 45,029 | $ 45,252 | $ 47,083 | $ 43,016 | $ 39,838 | $ 36,703 | $ 35,526 | $ 33,831 | $ 37,151 | $ 37,069 | $ 34,690 | $ 35,731 | $ 180,380 | $ 145,898 | $ 144,641 | ||||
Domestic [Member] | |||||||||||||||||||
Total revenues | 131,727 | 114,978 | 110,533 | ||||||||||||||||
Foreign [Member] | |||||||||||||||||||
Total revenues | $ 48,653 | $ 30,920 | $ 34,108 | ||||||||||||||||
[1] | In January 2016 the Company completed its acquisition of On-X Life Technologies Holdings, Inc., which is being operated as a wholly owned subsidiary of CryoLife. In 2016 the Company also sold its HeRO Graft product line and its ProCol product line, and ceased sales of these products during 2016. |
Selected Quarterly Financial 93
Selected Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2016 | [1] | Sep. 30, 2016 | [1] | Jun. 30, 2016 | [1] | Mar. 31, 2016 | [1] | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Selected Quarterly Financial Information [Abstract] | ||||||||||||||||||||||
REVENUE | $ 45,029 | $ 45,252 | $ 47,083 | $ 43,016 | $ 39,838 | $ 36,703 | $ 35,526 | $ 33,831 | $ 37,151 | $ 37,069 | $ 34,690 | $ 35,731 | $ 180,380 | $ 145,898 | $ 144,641 | |||||||
GROSS MARGIN | 31,195 | 29,782 | 30,301 | 27,621 | 26,516 | 22,982 | 21,554 | 19,667 | 22,635 | 23,799 | 22,384 | 22,473 | 118,899 | 90,719 | 91,291 | |||||||
NET INCOME (LOSS) | $ 2,897 | $ 2,993 | $ 2,347 | $ 2,541 | $ 2,636 | $ 2,145 | $ (502) | $ (274) | $ 1,776 | $ 2,326 | $ 2,161 | $ 1,059 | $ 10,778 | $ 4,005 | $ 7,322 | |||||||
INCOME (LOSS) PER COMMON SHARE - DILUTED | $ 0.09 | $ 0.09 | $ 0.07 | $ 0.08 | $ 0.09 | $ 0.07 | $ (0.02) | $ (0.01) | $ 0.06 | $ 0.08 | $ 0.08 | $ 0.04 | $ 0.32 | [2] | $ 0.14 | [2] | $ 0.25 | [2] | ||||
Gain on sale of Medafor investment | $ 891 | $ 530 | ||||||||||||||||||||
[1] | In January 2016 the Company completed its acquisition of On-X Life Technologies Holdings, Inc., which is being operated as a wholly owned subsidiary of CryoLife. In 2016 the Company also sold its HeRO Graft product line and its ProCol product line, and ceased sales of these products during 2016. | |||||||||||||||||||||
[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 1,000, 710,000, and 335,000 shares for the years ended December 31, 2016, 2015, and 2014, respectively, were excluded from the calculation of diluted weighted-average common shares outstanding. |