Natus Medical (NTUS) 10-K 29 Feb 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2015	Feb. 22, 2016	Jun. 30, 2015
Document and Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY
Trading Symbol	BABY
Entity Registrant Name	NATUS MEDICAL INC
Entity Central Index Key	878,526
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		33,155,154
Entity Public Float			$ 1,408,062,148

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 82,469	$ 66,558
Accounts receivable, net of allowance for doubtful accounts of $4,686 and $4,324	99,080	82,277
Inventories	48,572	40,051
Prepaid expenses and other current assets	11,235	17,408
Deferred income tax	0	11,511
Total current assets	241,356	217,805
Property and equipment, net	16,967	17,923
Intangible assets, net	86,536	92,761
Goodwill	107,466	96,316
Deferred income tax	12,782	1,152
Other assets	14,389	8,864
Total assets	479,496	434,821
Current liabilities:
Accounts payable	23,660	21,371
Accrued liabilities	42,137	36,024
Deferred revenue	11,311	11,745
Total current liabilities	77,108	69,140
Long-term liabilities:
Other liabilities	7,781	4,859
Deferred income tax	3,897	8,107
Total liabilities	$ 88,786	$ 82,106
Commitments and contingencies (Note 19)
Stockholders’ equity:
Common stock, $0.001 par value; 120,000,000 shares authorized; shares issued and outstanding 33,153,500 in 2015 and 32,649,158 in 2014	$ 323,745	$ 315,296
Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued and outstanding in 2015 and in 2014	0	0
Retained earnings	106,814	68,890
Accumulated other comprehensive loss	(39,849)	(31,471)
Total stockholders’ equity	390,710	352,715
Total liabilities and stockholders’ equity	$ 479,496	$ 434,821

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 4,686	$ 4,324
Common stock, par value	$ 0.001	$ 0.001
Common Stock, shares authorized	120,000,000	120,000,000
Common Stock, shares issued	33,153,500	32,649,158
Common Stock, shares outstanding	33,153,500	32,649,158
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, issued	0	0
Preferred stock, outstanding	0	0

Consolidated Statements of Inco

Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Statement [Abstract]
Revenue	$ 375,865	$ 355,834	$ 344,112
Cost of revenue	145,492	138,480	138,788
Intangibles amortization	2,836	2,967	2,912
Gross profit	227,537	214,387	202,412
Operating expenses:
Marketing and selling	87,675	85,729	83,138
Research and development	30,434	30,100	30,786
General and administrative	46,363	45,444	43,380
Intangibles amortization	7,447	3,025	5,681
Restructuring	2,145	4,238	4,767
Total operating expenses	174,064	168,536	167,752
Income from operations	53,473	45,851	34,660
Other income (expense), net	(1,064)	158	(2,716)
Income before provision for income tax	52,409	46,009	31,944
Provision for income tax	14,485	13,531	8,797
Net income	37,924	32,478	23,147
Foreign currency translation adjustment	(8,378)	(11,218)	(1,972)
Comprehensive income	$ 29,546	$ 21,260	$ 21,175
Net income per share:
Basic (in dollars per share)	$ 1.17	$ 1.03	$ 0.77
Diluted (in dollars per share)	$ 1.14	$ 1	$ 0.75
Weighted average shares used in the calculation of net income per share:
Basic (in dollars per share)	32,348	31,499	29,993
Diluted (in dollars per share)	33,241	32,568	30,821

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common stock	Retained Earnings	Accumulated Other Comprehensive Loss
Balances at Dec. 31, 2012	$ 270,379	$ 275,395	$ 13,265	$ (18,281)
Balances, share at Dec. 31, 2012		30,106,933
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Tax benefit of options exercises	1,601	$ 1,601
Vesting of restricted stock units	0
Vesting of restricted stock units, shares		6,224
Net issuance of restricted stock awards	0
Net issuance of restricted stock awards, shares		159,935
Employee stock purchase plan	1,061	$ 1,061
Employee stock purchase plan, shares		69,780
Stock-based compensation expense	5,919	$ 5,919
Exercise of stock options	8,079	$ 8,079
Exercise of stock options, shares		1,058,730
Foreign currency translation adjustment	(1,972)			(1,972)
Net income	23,147		23,147
Balances at Dec. 31, 2013	308,214	$ 292,055	36,412	(20,253)
Balances, share at Dec. 31, 2013		31,401,602
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Tax benefit of options exercises	7,525	$ 7,525
Vesting of restricted stock units	0
Vesting of restricted stock units, shares		13,121
Net issuance of restricted stock awards	0
Net issuance of restricted stock awards, shares		180,665
Employee stock purchase plan	1,197	$ 1,197
Employee stock purchase plan, shares		45,625
Stock-based compensation expense	6,062	$ 6,062
Repurchase of company stock	(4,633)	$ (4,633)
Repurchase of company stock, shares		(161,400)
Taxes paid related to net share settlement of equity awards	(1,999)	$ (1,999)
Tax paid related to net share settlement of equity awards, shares		(73,134)
Exercise of stock options	$ 15,089	$ 15,089
Exercise of stock options, shares	1,242,679	1,242,679
Foreign currency translation adjustment	$ (11,218)			(11,218)
Net income	32,478		32,478
Balances at Dec. 31, 2014	352,715	$ 315,296	68,890	(31,471)
Balances, share at Dec. 31, 2014		32,649,158
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Tax benefit of options exercises	7,104	$ 7,104
Vesting of restricted stock units	0
Vesting of restricted stock units, shares		21,619
Net issuance of restricted stock awards	0
Net issuance of restricted stock awards, shares		199,620
Employee stock purchase plan	1,251	$ 1,251
Employee stock purchase plan, shares		35,467
Stock-based compensation expense	6,953	$ 6,953
Stock-based compensation expense, shares		0
Repurchase of company stock	(11,526)	$ (11,526)
Repurchase of company stock, shares		(281,915)
Taxes paid related to net share settlement of equity awards	(4,341)	$ (4,341)
Tax paid related to net share settlement of equity awards, shares		(102,112)
Exercise of stock options	$ 9,008	$ 9,008
Exercise of stock options, shares	631,663	631,663
Foreign currency translation adjustment	$ (8,378)			(8,378)
Net income	37,924		37,924
Balances at Dec. 31, 2015	$ 390,710	$ 323,745	$ 106,814	$ (39,849)
Balances, share at Dec. 31, 2015		33,153,500

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Operating activities:
Net income	$ 37,924	$ 32,478	$ 23,147
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for losses on accounts receivable	1,496	991	277
Excess tax benefit on the exercise of stock options	(7,104)	(7,525)	(3,109)
Depreciation and amortization	15,987	11,759	12,848
Gain on disposal of property and equipment	(5)	0	0
Impairment of intangible assets	0	598	1,500
Impairment of property and equipment	0	2,177	292
Warranty reserve	10,729	2,306	1,938
Stock-based compensation	6,953	6,062	6,078
Changes in operating assets and liabilities, net of assets and liabilities acquired in acquisitions:
Accounts receivable	(15,272)	(2,431)	9,357
Inventories	(12,232)	(2,017)	(2,679)
Other assets	858	(3,667)	(6,899)
Accounts payable	3,270	(7,648)	(1,387)
Accrued liabilities	(6,177)	6,595	(5,301)
Deferred revenue	(1,118)	(775)	(768)
Deferred taxes	1,543	3,240	1,503
Net cash provided by operating activities	36,852	42,143	36,797
Investing activities:
Acquisition of businesses, net of cash acquired	(14,284)	(4,925)	(18,600)
Acquisition of property and equipment	(4,068)	(4,239)	(1,825)
Acquisition of intangible assets	(1,126)	(1,481)	(1,875)
Net cash used in investing activities	(19,478)	(10,645)	(22,300)
Financing activities:
Proceeds from stock option exercises and ESPP	10,258	16,210	8,981
Excess tax benefit on the exercise of stock options	7,104	7,525	3,109
Repurchase of company stock	(11,525)	(4,633)	0
Taxes paid related to net share settlement of equity awards	(4,341)	(1,999)	0
Proceeds from short-term borrowings	0	0	22,000
Proceeds from long-term borrowings	0	0	35,383
Contingent consideration earn-out	(664)	0	0
Payments on borrowings	0	(38,017)	(52,226)
Net cash (used in)/provided by financing activities	832	(20,914)	17,247
Exchange rate effect on cash and cash equivalents	(2,295)	(132)	1,305
Net increase in cash and cash equivalents	15,911	10,452	33,049
Cash and cash equivalents, beginning of year	66,558	56,106	23,057
Cash and cash equivalents, end of year	82,469	66,558	56,106
Supplemental disclosure of cash flow information:
Cash paid for interest	0	434	1,311
Cash paid for income taxes	10,164	5,672	12,908
Non-cash investing activities:
Property and equipment included in accounts payable	289	122	80
Inventory transferred to property and equipment	$ 1,056	$ 1,350	$ 991

Organization and Significant Ac

Organization and Significant Accounting Policies	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Organization and Significant Accounting Policies	ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES Organization Natus Medical Incorporated (“Natus”, the “Company”, “we”, “our”) was incorporated in California in May 1987 and reincorporated in Delaware in August 2000. Natus is a leading provider of healthcare products used for the screening, detection, treatment, monitoring and tracking of common medical ailments in newborn care, hearing impairment, neurological dysfunction, epilepsy, sleep disorders, and balance and mobility disorders. Product offerings include computerized neurodiagnostic systems for audiology, neurology, polysomnography, and neonatology, as well as newborn care products such as hearing screening systems, phototherapy devices for the treatment of newborn jaundice, head-cooling products for the treatment of brain injury in newborns, incubators to control the newborn’s environment, and software systems for managing and tracking disorders and diseases for public health laboratories. Basis of Presentation and Principles of Consolidation The accompanying Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Certain reclassifications to the prior periods have been made to conform to the current period presentation. The consolidated statements of income for 2014 and 2013 reflect reclassifications from Cost of revenue to Intangibles amortization, from Marketing and selling, Research and development, and General and administrative to Intangible amortization, and from General and administrative to Restructuring. In 2015, there have been no adjustments to previously reported net income or shareholder's equity. Refer to Note 21 for discussion of immaterial corrections identified and reported in 2014. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities in the Consolidated Financial Statements and the reported amount of revenue and expenses during the reporting period. Such estimates include allowances for potentially uncollectible accounts receivable, valuation of inventory, intangible assets, goodwill, share-based compensation, deferred income taxes, reserves for warranty obligations, and the provision for income taxes. Actual results could differ from those estimates. Revenue recognition Revenue, net of discounts, is recognized from sales of medical devices and supplies, including sales to distributors, when the following conditions have been met: a purchase order has been received, title has transferred, the selling price is fixed or determinable, and collection of the resulting receivable is reasonably assured. Terms of sale for most domestic sales are FOB origin, reflecting that title and risk of loss are assumed by the purchaser at the shipping point; however, terms of sale for some neurology, sleep-diagnostic, and head cooling systems are FOB destination, reflecting that title and risk of loss are assumed by the purchaser upon delivery. Terms of sales to international distributors are generally EXW, reflecting that goods are shipped “ex works,” in which title and risk of loss are assumed by the distributor at the shipping point. For products shipped under FOB origin or EXW terms, delivery is generally considered to have occurred when the product is shipped. Freight charges billed to customers are included in revenue and freight-related expenses are charged to cost of revenue. We generally do not provide rights of return on products. For products containing embedded software, we have determined that the hardware and software components function together to deliver the products’ essential functionality, and therefore, the revenue from the sale of these products does not fall within the scope of the software revenue recognition rules. Our revenue recognition policies for sales of these products are substantially the same as for our other tangible products. Revenue from sales of certain of our products that remain within the scope of the software revenue recognition rules under ASC Subtopic 985-605 is not significant. Revenue from extended service and maintenance agreements, for both medical devices and data management systems, is recognized ratably over the service period. Revenue from installation or training services is deferred until such time service is provided. Certain revenue transactions include multiple element arrangements. We allocate revenue in these arrangements to each unit of accounting using the relative selling price method. The selling prices used during the allocation process are based on vendor specific objective evidence (“VSOE”) if available, third-party evidence ("TPE") if VSOE is not available, or estimated selling price ("ESP") if neither VSOE or TPE is available. Group purchasing organizations (“GPOs”) negotiate volume purchase prices for member hospitals, group practices, and other clinics. Our agreements with GPOs typically contain preferential terms for the GPO and its members, including provisions for some, if not all, of the following: • Payment of marketing fees by Natus to the GPO, usually based on purchasing experience of group members; and • Non-recourse cancellation provisions. We do not sell products to GPOs. Hospitals, group practices, and other clinics that are members of a GPO purchase products directly from us under the terms negotiated by the GPO. Negotiated pricing and discounts are recognized as a reduction of the selling price of products at the time of the sale. Revenue from sales to members of GPOs is otherwise consistent with general revenue recognition policies as previously described. Inventory Inventories are carried at the lower of cost or market, with cost being determined using the first-in, first-out method. The carrying value of our inventories is reduced for any difference between cost and estimated market value of inventories that is determined to be obsolete or unmarketable, based upon assumptions about future demand and market conditions. Adjustments to the value of our inventory establish a new cost basis and are considered permanent even if circumstances later suggest that increased carrying amounts are recoverable. If demand is higher than expected, we may sell inventory that had previously been written down. Carrying value of intangible assets and goodwill We amortize intangible assets with finite lives over their useful lives; any future changes that would limit their useful lives or any determination that these assets are carried at amounts greater than their estimated fair value could result in additional charges. Goodwill is not amortized but is subject to an annual impairment analysis, which is performed as of October 1st; this assessment is also performed whenever there is a change in circumstances that indicates the carrying value of goodwill may be impaired. In 2015 and 2014, we performed qualitative assessments to test our reporting units’ goodwill for impairment. Qualitative factors considered in this assessment include industry and market considerations, overall financial performance and other relevant events and factors affecting each reporting unit. Based on our qualitative assessment, we determined that the fair value of each reporting unit was more likely than not to be greater than its carrying amount, and no impairment was recognized. In 2013 we performed a two-step impairment test on our goodwill. The first step of the goodwill impairment test, used to identify potential impairment, compares the fair value of a reporting unit to its carrying value, including goodwill. We use a projected discounted cash flow model to determine the fair value of a reporting unit. If the fair value of the reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired, and the second step of the impairment test is not required. The second step, if required, compares the implied fair value of the reporting unit goodwill with the carrying amount of that goodwill. The fair value of a reporting unit is allocated to all of the assets and liabilities of that unit (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination and the fair value of the reporting unit was the price paid to acquire the reporting unit. If the carrying amount of the reporting unit’s goodwill exceeds its implied fair value, an impairment charge is recognized in an amount equal to that excess. Prior to the assignment of definite lives to our tradenames in the second quarter of 2015 (See Note 6 - Intangible Assets ), we tested indefinite lived intangibles for impairment by comparing the carrying value of those assets to be fair value as of the assessment date. We used the relief from royalty method to determine the fair value of the assets. This analysis is dependent upon a number of quantitative and qualitative factors including estimates of forecasted revenue, royalty rate, and taxes. The discount rate applied also has an impact on the estimates of fair value, as use of a higher rate will result in a lower estimate of fair value. As of the October 1, 2014 and 2013 testing dates, we determined that certain trade names were impaired and we recorded impairment charges of $0.6 million and $1.5 million , respectively. Goodwill impairment analysis and measurement is a process that requires significant judgment. Future changes in the judgments and estimates underlying our analysis of goodwill for possible impairment, including expected future cash flows and discount rate, could result in a significantly different estimate of the fair value of the reporting units and could result in additional impairment of goodwill. Long lived assets We continually monitor events and changes in circumstances that could indicate that carrying amounts of its long-lived assets, including property and equipment and intangible assets, may not be recoverable. When such events or changes in circumstances occur, we assess the recoverability by determining whether the carrying value of such assets will be recovered through their undiscounted expected future cash flows. If the future undiscounted cash flows are less than the carrying amount of these assets, we will recognize an impairment loss based on the excess of the carrying amount over the fair value of the assets. Liability for product warranties We provide a warranty with our products that is generally one year in length and in some cases, regulations may require us to provide repair or remediation beyond our typical warranty period. If any of our products contain defects, we may be required to incur additional repair and remediation costs. Service for domestic customers is provided by Company-owned service centers that perform all service, repair, and calibration services. Service for international customers is provided by a combination of Company-owned facilities and vendors on a contract basis. A warranty reserve is included in accrued liabilities for the expected future costs of servicing products. Additions to the reserve are based on management’s best estimate of probable liability. We consider a combination of factors including material and labor costs, regulatory requirements, and other judgments in determining the amount of the reserve. The reserve is reduced as costs are incurred to honor existing warranty and regulatory obligations. Share-based compensation We recognize share-based compensation expense associated with employee stock options under the single-option straight line method over the requisite service period, which is generally a four -year vesting period pursuant to ASC Topic 718, Compensation-Stock Compensation . See Note 12 of our Consolidated Financial Statements. For employee stock options, the value of each option is estimated on the date of grant using the Black-Scholes option pricing model, which was developed for use in estimating the value of freely traded options. Similar to other option pricing models, the Black-Scholes method requires the input of highly subjective assumptions, including stock price volatility. Changes in the subjective input assumptions can materially affect the estimated fair value of our employee stock options. We recognize share-based compensation associated with Restricted Stock Awards ("RSA") and Restricted Stock Units ("RSU"). RSAs and RSUs vest ratably over a three -year period for employees. RSAs and RSUs for executives vest over a four -year period; 50% on the second anniversary of the vesting start date and 25% on each of the third and fourth anniversaries of the vesting date. The value is estimated based on the market value of our commons stock on the date of issuance pursuant to ASC Topic 718, Compensation-Stock Compensation. We issue new shares of common stock upon the exercise of stock options and the vesting of RSAs and RSUs. Forfeitures of employee stock options and awards are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from initial estimates. Share-based compensation expense is recorded net of estimated forfeitures, such that expense is recorded only for those share-based awards that are expected to vest. The cash flow from the tax benefits resulting from tax deductions in excess of the compensation cost recognized for employee options (excess tax benefits) is classified as a cash inflow from financing activities and a cash outflow from operating activities in our Statements of Cash Flows. We treat tax deductions from certain stock option exercises as being realized when they reduce taxes payable in accordance with relevant tax law. Cash Equivalents All highly liquid instruments purchased with an original maturity of three months or less are classified as cash equivalents. Allowance for Doubtful Accounts We estimate our allowance for estimated uncollectible accounts receivable based on historical collection experience within the markets in which we operate and other customer-specific information, such as bankruptcy filings or liquidity problems of customers. When all internal efforts have been exhausted to collect the receivable, it is written off and relieved from the reserve. Fair Value of Financial Instruments Financial instruments include cash and cash equivalents, accounts receivable, and accounts payable. Cash is reported at its fair value on the balance sheet dates. The recorded carrying amounts of accounts receivable and accounts payable approximate their fair values due to their short-term maturities. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation expense is computed using the straight-line method over estimated useful lives of the respective assets, which are three to five years for office furniture and equipment, three to five years for computer software and hardware, three years for demonstration and loaned equipment, and 30 to 40 years for buildings. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life. Land is not depreciated. Costs associated with acquiring and installing software to be used for internal purposes are capitalized and amortized on a straight-line basis over three years. Research & Development Costs Costs incurred in research and development are charged to operations as incurred. Income Taxes We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. We record net deferred tax assets to the extent we believe it is more likely than not that the assets will be realized. In making such determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operations. In the event we were to determine that we would be able to realize our deferred income tax assets in the future in excess of their net recorded amount, we would make an adjustment to the valuation allowance which would reduce the provision for income taxes. We recognize the tax benefit of uncertain tax positions in the financial statements in accordance with ASC Topic 740, Income Tax. When the tax position is deemed more likely than not of being sustained, we recognize the largest amount of tax benefit that is greater than 50 percent likely of being ultimately realized upon settlement, in accordance with ASC 740-10-05. Foreign Currency The functional currency of our subsidiaries outside of North America is generally the local currency of the country where the subsidiary is located. Accordingly, foreign currency translation adjustments relating to the translation of foreign subsidiary financial statements are included as a component of accumulated other comprehensive loss. We recorded $8.4 million , $11.2 million , and $2.0 million of foreign currency translation losses for the years ended December 31, 2015, 2014 and 2013, respectively. Gains and losses from transactions denominated in currencies other than our functional currencies are included in other income and expense. In 2015, 2014, and 2013, net foreign currency transaction losses were $1.4 million , $37,000 , and $1.4 million , respectively. Foreign currency gains and losses result primarily from fluctuations in the exchange rate between the U.S. Dollar, Canadian Dollar, Euro, Argentine Peso, British Pound, and Danish Kroner. Comprehensive Income We report by major components and as a single total the change in our net assets during the period from non-owner sources in accordance with ASC Topic 220, Comprehensive Income. The consolidated statement of comprehensive income has been included with the consolidated statements of operations. Accumulated other comprehensive income consists of translation gains and losses on foreign subsidiary financial statements. Basic and Diluted Net Income per Share We compute net income per share in accordance with ASC Topic 260, Earnings per Share. Basic net income per share is based upon the weighted average number of common shares outstanding during the period. Diluted net income per share is based upon the weighted average number of common shares outstanding and dilutive common stock equivalents outstanding during the period. Common stock equivalents are options granted and shares of restricted stock issued under our stock awards plans and are calculated under the treasury stock method. Common equivalent shares from unexercised stock options and restricted stock are excluded from the computation when there is a loss as their effect is anti-dilutive, or if the exercise price of such options is greater than the average market price of the stock for the period. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 requires revenue recognition to depict the transfer of 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. ASU 2014-09 sets forth a new revenue recognition model that requires identifying the contract, identifying the performance obligations, determining the transaction price, allocating the transaction price to performance obligations and recognizing the revenue upon satisfaction of performance obligations. The original effective date for ASU 2014-09 would have required us to adopt beginning in its first quarter of 2017. In July 2015, the FASB voted to amend ASU 2014-09 by approving a one-year deferral of the effective date as well as providing the option to early adopt the standard on the original effective date. Accordingly, we may adopt the standard in either our first quarter of 2017 or our first quarter of 2018. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. We are currently evaluating the timing of its adoption and the impact of adopting the new revenue standard on our consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classifications of Deferred Taxes. This update requires an entity to classify deferred tax liabilities and assets as non-current within a classified statement of financial position. ASU 2015-17 is effective for annual and interim reporting periods beginning after December 15, 2016. This update may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. We elected early application prospectively in the beginning of the fourth quarter 2015. Prior periods in the consolidated financial statements were not retrospectively adjusted. As a result, $14.2 million of current deferred tax assets were reported as non-current deferred tax assets.

Business Combinations

Business Combinations	12 Months Ended
	Dec. 31, 2015
Business Combinations [Abstract]
Business Combinations	BUSINESS COMBINATIONS The assets acquired and liabilities assumed at the date of acquisition are recorded in the Consolidated Financial Statements at their respective fair values as of the acquisition date. The excess of the purchase price over the fair value of the acquired net assets is recorded as goodwill. The determination of estimated fair value of acquired assets and liabilities requires management to make significant estimates and assumptions. We determine the fair value by applying established valuation techniques, based on information that management believes to be relevant to this determination. We also utilize independent third parties to assist in the valuation of goodwill, intangible assets, and real estate. The results of operations of our acquisitions are included in the Consolidated Financial Statements from the date of the acquisition. Monarch We acquired Monarch Medical Diagnostics, LLC ("Monarch") through an asset purchase on November 13, 2015. Monarch's service compliments our Global Neuro-Diagnostics ("GND") acquisition which offers patients a more convenient way to complete routine diagnostic electroencephalography ("EEG") and video electromyography ("EMG") testing which can be performed at the home, hospital or physician's office. The service also provides comprehensive reporting and support to the physician. The cash consideration for Monarch was $2.7 million . The purchase agreement also included contingent consideration which we paid on January 11, 2016 of $1.0 million . The total purchase price was allocated to $112,000 of tangible assets, $1.2 million of intangible assets with an assigned weighted average life of 5 years being amortized on the straight line method, and $2.4 million of goodwill. Pro forma financial information for the Monarch acquisition is not presented as it is not considered material. Global Neuro-Diagnostics We acquired GND through an equity purchase on January 23, 2015. GND's service offers patients a more convenient way to complete routine EEG and EMG testing which can be performed at the home, hospital or physician's office. The service also provides comprehensive reporting and support to the physician. The cash consideration for GND was $11.4 million , which consists primarily of $1.5 million of tangible assets, $4.8 million of intangible assets with an assigned weighted average life of 5 years being amortized on the straight line method, and $8.9 million of goodwill, offset by $511,000 of net liabilities. The purchase agreement also included an earn-out condition which was originally estimated to be $3.2 million . The earn-out condition was subsequently estimated to be $3.8 million in the fourth quarter of 2015. The earn-out is contingent upon GND achieving certain revenue milestones in 2016 and 2017. Pro forma financial information for the GND acquisition is not presented as it is not considered material. NicView On January 2, 2015, we purchased the assets of NicView. NicView provides streaming video for families with babies in the neonatal intensive care unit. The cash consideration for NicView was $1.1 million , of which $288,000 was allocated to tangible assets and $2.7 million to goodwill, offset by $556,000 allocated to net liabilities. The asset purchase agreement included an earn-out condition contingent upon orders received in and installed by February 28, 2016. We estimate this earn-out to be $1.4 million . Pro forma financial information for the NicView acquisition is not presented as it is not considered material. Hearing Screening as a Service In the first quarter of 2014, we entered into two asset purchase agreements for companies in the newborn hearing screening services market for total cash consideration of $2.6 million . The purchase agreements also included earn-out conditions contingent upon annual revenue growth through 2016. These earn-outs, originally estimated at $0.8 million , were settled during the second quarter of 2015 for $0.7 million . Both acquisitions support our entry into this market, which complements our newborn hearing screening device business. This hearing screening services business operates under the name Peloton. Pro forma financial information for these two acquisitions is not presented as it is not considered material. Grass Technologies On February 2, 2013 , we completed an asset purchase of the Grass Technologies Product Group ("Grass") from Astro-Med Inc. for cash consideration of $21.0 million . Included in the total cash consideration is an adjustment of $2.4 million made in the first quarter of 2014 for inventory purchase commitments. The Grass brand offers differentiated neurodiagnostic and monitoring products, including a portfolio of electroencephalography and polysomnography ("PSG") systems for both clinical and research use and related accessories and proprietary electrodes. The acquisition strengthened our existing neurology portfolio and provided new product categories. A total of $624,000 of direct costs associated with the acquisition was expensed as incurred and reported as a component of general and administrative expenses. We accounted for the acquisition as a business combination. Under the acquisition method of accounting, the assets acquired and liabilities assumed from the Grass transaction are recorded in the Consolidated Financial Statements at their respective fair values as of the acquisition date. The excess of the purchase price over the fair value of the acquired net assets has been recorded as goodwill. Grass’ results of operations are included in our Consolidated Financial Statements since February 2, 2013, the date of the acquisition. The following table summarizes the purchase price allocation of the fair value of the assets acquired and liabilities assumed at the date of acquisition, as adjusted (in thousands): Accounts receivable $ 4,098 Prepaid and other assets 33 Inventories 547 Identifiable intangible assets: Developed technology 2,500 Customer-related 5,200 Trademarks and trade names 3,000 Other property and equipment 237 Goodwill 7,014 Accounts payable (431 ) Accrued expenses (895 ) Deferred revenue (348 ) Total purchase price $ 20,955 Identifiable intangible assets. Intangible assets included in the purchase price allocation consist of: (i) developed technology of $2.5 million assigned a weighted average economic life of 8 years being amortized on the straight line method (ii) customer-related intangible assets of $5.2 million assigned an economic life of 13 years being amortized on the straight line method, and (iii) trademarks and trade names of $3.0 million that have an indefinite life and are not being amortized but tested for impairment annually. During the fourth quarter of 2014 and 2013 impairment testing, management determined there was an impairment to Grass trademarks and trade names in the amount of $400,000 and $600,000 , respectively, reducing the indefinite life value to $2.0 million . All straight-line method of amortization above is based on the expected pattern of future benefits related to those respective intangible assets. Accounts receivable, net of other liabilities, are stated at their historical carrying value, which approximate fair value given the short-term nature of these assets and liabilities. The fair values of the non-financial assets, summarized above, were derived from significant unobservable inputs (“Level 3 inputs”) determined by management based on market analysis, income analysis and discounted cash flow model. The fair value of fixed assets (“Level 2 inputs”) was determined using market data for similar assets. The fair value of purchased identifiable intangible assets was determined using our discounted cash flow models from income projections prepared by management, using weighted average cost of capital plus up to a 13% risk premium. Goodwill . Approximately $7.0 million has been allocated to goodwill. Goodwill is calculated as the difference between the acquisition date fair value of the consideration transferred and the values assigned to the assets acquired and liabilities assumed and represents primarily the expected synergies of integrating the Grass products into our operations. The goodwill is expected to be deductible for tax purposes. In accordance with ASC 350-20, goodwill will not be amortized but instead will be tested for impairment at least annually (more frequently if certain indicators are present). In the event that we determine that the value of the goodwill has become impaired, we will incur an accounting charge for the amount of the impairment. Pro forma financial information The following unaudited pro forma information combines our results of operations for the year ended December 31, 2013 with the results of operations for Grass as if the acquisition had occurred on January 1, 2013. 2013 Revenue $ 345,117 Income from operations $ 35,369 The unaudited pro forma financial information is provided for comparative purposes only and is not necessarily indicative of what actual results would have been had the acquisitions occurred on the date indicated, nor does it give effect to synergies, cost savings, and other changes expected to result from the acquisitions. Accordingly, the pro forma financial results do not purport to be indicative of results of operations as of the date hereof, for any period ended on the date hereof, or for any other future date or period. Grass revenue of $12.8 million and income from operations of $2.6 million are included in our consolidated statement of income and comprehensive income for the period from February 2, 2013 (acquisition date) to December 31, 2013. For purposes of preparing the unaudited pro forma financial information for the year ended December 31, 2013, Grass’ statement of income for the period January 1, 2013 through February 1, 2013 was combined with our consolidated statement of income and comprehensive income for the year ended December 31, 2013. The unaudited pro forma consolidated results reflect the historical information of Natus and Grass in 2013 adjusted for the following pre-tax amounts: • Additional amortization expense related to the fair value of identifiable intangible assets acquired (approximately $59,300 through December 31, 2013); • Decrease of depreciation expense related to the fair value adjustment to property and equipment acquired (approximately $14,800 through December 31, 2013); and • Change in general and administrative expense related to the direct acquisition costs that were recorded in the unaudited pro forma financial (approximately $624,000 through December 31, 2013);

Inventories

Inventories	12 Months Ended
	Dec. 31, 2015
Inventory Disclosure [Abstract]
Inventories	INVENTORIES Inventories consist of (in thousands): December 31, 2015 2014 Raw materials and subassemblies $ 19,041 $ 19,821 Work in process 1,343 1,808 Finished goods 36,149 26,037 Total Inventories 56,533 47,666 Less: Non-current Inventories (7,961 ) (7,615 ) Inventories $ 48,572 $ 40,051 At December 31, 2015 and 2014 , we have classified $8.0 million and $7.6 million , respectively, of inventories as non-current. This inventory consists primarily of service components used to repair products held by our customers pursuant to warranty obligations and extended service contracts, including service components for products we are not currently selling. We believe that these inventories will be utilized for their intended purpose.

Property and Equipment

Property and Equipment	12 Months Ended
	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
Property and Equipment	PROPERTY AND EQUIPMENT Property and equipment consist of (in thousands): December 31, 2015 2014 Land $ 2,918 $ 3,092 Buildings 5,662 6,828 Leasehold improvements 2,345 2,118 Office furniture and equipment 13,866 12,945 Computer software and hardware 10,488 8,715 Demonstration and loaned equipment 11,216 10,929 46,495 44,627 Accumulated depreciation (29,528 ) (26,704 ) Total $ 16,967 $ 17,923 Depreciation expense of property and equipment was $4.2 million , $4.3 million , and $4.7 million in the years ending December 31, 2015 , 2014 and 2013 , respectively. In the third quarter of 2014 our manufacturing facility in Mundelein, Illinois was listed for sale. This asset was measured at fair value less cost to sell as of September 30, 2014 based on market price and Level 2 inputs and resulted in a $2.2 million impairment. The impairment was recorded in restructuring expenses and the asset was reclassified from property and equipment, net to other current assets. During the fourth quarter of 2013 we began transitioning the manufacturing operations from the Mundelein facility to our facilities in Seattle, Washington and British Columbia, Canada as well as outsourcing some of the operations in preparation for this sale. This effort is part of Natus’ continuing cost reduction and restructuring activities.

Goodwill

Goodwill	12 Months Ended
	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	GOODWILL The carrying amount of goodwill and the changes in those balances are as follows (in thousands): As of December 31, 2013 $ 97,238 Acquisitions/Purchase Accounting Adjustments 4,002 Foreign currency translation (4,924 ) As of December 31, 2014 $ 96,316 Acquisitions/Purchase Accounting Adjustments 13,547 Foreign currency translation (2,397 ) As of December 31, 2015 $ 107,466

Intangible Assets

Intangible Assets	12 Months Ended
	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	INTANGIBLE ASSETS The following table summarizes the components of gross and net intangible asset balances (in thousands): December 31, 2015 December 31, 2014 Gross Accumulated Accumulated Net Book Gross Accumulated Accumulated Net Book Intangible assets with definite lives: Technology $ 63,668 — $ (31,600 ) $ 32,068 $ 64,376 — $ (28,195 ) $ 36,181 Customer related 35,529 — (14,352 ) 21,177 31,189 — (11,786 ) 19,403 Trade names 31,837 (3,340 ) (3,052 ) 25,445 — — — — Internally developed software 15,513 — (8,155 ) 7,358 14,109 — (6,511 ) 7,598 Patents 2,663 — (2,175 ) 488 2,794 — (2,154 ) 640 Backlog 717 — (717 ) — 719 — (719 ) — Definite-lived intangible assets 149,927 (3,340 ) (60,051 ) 86,536 113,187 — (49,365 ) 63,822 Intangible assets with indefinite lives: Trade names — — — — 32,443 (3,504 ) — 28,939 Total intangible assets 149,927 (3,340 ) (60,051 ) 86,536 145,630 (3,504 ) (49,365 ) 92,761 Finite lived intangible assets are amortized over their useful lives, which are 10 to 15 years for patents, 5 to 10 years for technology, 4 to 16 years for customer-related intangibles, 7 years for tradenames, and 4 to 10 years for internally developed software. Internally developed software consists of $13.3 million relating to costs incurred for development of internal use computer software and $2.2 million for development of software to be sold. During the year ended December 31, 2014 we recorded a charge of $0.6 million related to the impairment of the Grass trade name. This impairment is a result of deterioration of expected future cash flows. Impairments are determined by performing a discounted cash flow analyses on our intangibles assets. These charges were recorded in Intangible amortization. Amortization expense related to intangible assets with finite lives was as follows (in thousands): Years Ended December 31, 2015 2014 2013 Technology $ 3,916 $ 3,993 $ 4,355 Customer related 2,938 1,892 2,644 Trade names 3,159 — — Internally developed software 1,620 1,434 1,034 Patents 112 113 121 Total amortization $ 11,745 $ 7,432 $ 8,154 Expected annual amortization expense related to amortizable intangible assets is as follows (in thousands): 2016 $ 12,501 2017 12,203 2018 11,980 2019 10,860 2020 8,766 Thereafter 30,226 Total expected amortization expense $ 86,536 During the second quarter of 2015 we initiated a strategy to increase the brand strength of Natus by replacing acquired product trade names with Natus branded products over time. The implementation of this strategy places definite expected future lives on our acquired trade names which previously had indefinite lives. We assigned these trade names lives of seven years based on the timeline of our branding strategy. We will continue to assess the lives of these assets based on the timing and execution of this strategy. Amortization expense for trade names is recorded as a component of operating expense. For the year ended December 31, 2015, this change increased our amortization expense and decreased pre-tax income by approximately $3.0 million , decreased net income by approximately $2.1 million , and decreased diluted earnings per share by $0.06 per share.

Accrued Liabilities

Accrued Liabilities	12 Months Ended
	Dec. 31, 2015
Payables and Accruals [Abstract]
Accrued Liabilities	ACCRUED LIABILITIES Accrued liabilities consist of (in thousands): December 31, 2015 2014 Compensation and related benefits $ 16,752 $ 16,075 Accrued federal, state, and local taxes 4,707 9,213 Warranty reserve 10,386 2,753 Accrued professional fees 520 1,027 Contingent consideration 6,209 812 Other 3,563 6,144 Total $ 42,137 $ 36,024

Long-Term Other Liabilities

Long-Term Other Liabilities	12 Months Ended
	Dec. 31, 2015
Other Liabilities Disclosure [Abstract]
Long-Term Other Liabilities	LONG-TERM OTHER LIABILITIES Long-term other liabilities consist of (in thousands): December 31, 2015 2014 Contingent tax obligations $ 6,376 $ 3,299 Non-current deferred revenue 1,401 1,537 Other 4 23 Total $ 7,781 $ 4,859

Reserve for Product Warranties

Reserve for Product Warranties	12 Months Ended
	Dec. 31, 2015
Guarantees [Abstract]
Reserve for Product Warranties	RESERVE FOR PRODUCT WARRANTIES We provide a warranty with our products that is generally one year in length and in some cases, regulations may require us to provide repair or remediation beyond our typical warranty period. If any of our products contain defects, we may be required to incur additional repair and remediation costs. Service for domestic customers is provided by Company-owned service centers that perform all service, repair and calibration services. Service for international customers is provided by a combination of Company-owned facilities and vendors on a contract basis. A warranty reserve is included in accrued liabilities for the expected future costs of servicing products. Additions to the reserve are based on management's best estimate of probable liability. We consider a combination of factors including material and labor costs, regulatory requirements, and other judgments in determining the amount of reserve. The reserve is reduced as costs are incurred to honor existing warranty and regulatory obligations. As of December 31, 2015 we have accrued $6.6 million to bring certain NeoBLUE ® phototherapy products into U.S. regulatory compliance. Our estimate of the costs associated with bringing the NeoBLUE ® phototherapy products into compliance is primarily based upon the number of units outstanding that may require the repair, costs associated with shipping and repairing the product, and the assumption that the FDA will approve our plan for compliance. We expect that costs associated with bringing the products back into compliance will not be incurred until the third quarter of 2016. The details of activity in the warranty reserve are as follows (in thousands): Balance at Beginning of Period Assumed Through Acquisitions Additions Charged to Expense Reductions Balance at End of Period December 31, 2015 $ 2,753 $ — $ 10,729 $ (3,096 ) $ 10,386 December 31, 2014 $ 3,143 $ — $ 2,306 $ (2,696 ) $ 2,753 December 31, 2013 $ 2,260 $ 191 $ 1,938 $ (1,246 ) $ 3,143 The estimates we use in projecting future product warranty costs may prove to be incorrect. Any future determination that our product warranty reserves are understated could result in increases to our cost of sales and reductions in our operating profits and results of operations.

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Dec. 31, 2015
Equity [Abstract]
Stockholders' Equity	STOCKHOLDERS’ EQUITY Common Stock —We have 120,000,000 shares of common stock authorized at a par value or $0.001 per share. Preferred Stock —We have 10,000,000 shares of preferred stock authorized at a par value of $0.001 per share. In accordance with the terms of the amended and restated certificate of incorporation, the Board of Directors is authorized to provide for the issuance of one or more series of preferred stock, including increases or decreases to the series. The Board of Directors has the authority to set the rights, preferences, and terms of such shares. As of December 31, 2015 , no shares of preferred stock were issued and outstanding.

Earnings Per Share

Earnings Per Share	12 Months Ended
	Dec. 31, 2015
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share The components of basic and diluted EPS are as follows (in thousands): December 31, 2015 2014 2013 Net income $ 37,924 $ 32,478 $ 23,147 Weighted average common shares 32,348 31,499 29,993 Dilutive effect of stock based awards 893 1,069 828 Diluted Shares 33,241 32,568 30,821 Basic earnings per share $ 1.17 $ 1.03 $ 0.77 Diluted earnings per share $ 1.14 $ 1.00 $ 0.75 Shares excluded from calculation of diluted EPS — 239 1,413

Share-Based Compensation

Share-Based Compensation	12 Months Ended
	Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-Based Compensation	SHARE-BASED COMPENSATION Share-Based Compensation Expense —We account for share-based compensation in accordance with ASC Topic 718, Compensation—Stock Compensation . Share-based compensation was recognized as follows in the consolidated statement of income (in thousands): December 31, 2015 2014 2013 Cost of revenue $ 156 $ 143 $ 120 Marketing and selling 808 977 816 Research and development 1,264 664 527 General and administrative 4,725 4,278 4,456 Total expense 6,953 6,062 5,919 Stock Awards Plans —Our 2011 Stock Awards Plan (the “Plan”) provides for the granting of the following: • Incentive stock options to employees; • Non-statutory stock options to employees, directors and consultants; • Restricted stock awards and restricted stock units; • Stock bonuses; and • Stock appreciation rights. As of December 31, 2015 , there were 1,297,008 shares available for future awards under the plan. Under the Plan, stock options may be issued at not less than the fair market value of the common stock on the date of grant, as determined by the Board of Directors. Options issued under the Plan become exercisable as determined by the Board of Directors and expire no more than six years after the date of grant. Most options vest ratably over four years. Stock Option Activity —Stock option activity under our stock awards plans for the year ended December 31, 2015 and 2014 is summarized as follows: Number of Shares Weighted Average Exercise Price Outstanding, December 31, 2013 (1,843,779 shares exercisable at a weighted average exercise price of $12.68 per share) 2,789,723 $ 12.90 Granted 244,500 $ 22.60 Exercised (1,242,679 ) $ 12.14 Cancelled (34,942 ) $ 15.29 Outstanding, December 31, 2014 (1,051,616 shares exercisable at a weighted average exercise price of $14.13 per share) 1,756,602 $ 14.74 Granted — $ — Exercised (631,663 ) $ 14.26 Cancelled (19,757 ) $ 11.99 Outstanding, December 31, 2015 (737,032 shares exercisable at a weighted average exercise price of $14.40 per share) 1,105,182 $ 15.07 As of December 31, 2015 , unrecognized compensation related to the unvested portion of our stock options was approximately $1.3 million , which is expected to be recognized over a weighted average period of 1.5 years. The intrinsic value of options exercised, representing the difference between the closing stock price of our common stock on the date of the exercise and the exercise price, in the years ended December 31, 2015 , 2014 and 2013 was $17.7 million , $20.6 million , and $9.9 million , respectively. As of December 31, 2015 , there were: (i) 1,071,852 options vested and expected to vest with a weighted average exercise price of $14.99 , an intrinsic value of $35.4 million , and a weighted average remaining contractual term of 2.8 years; and (ii) 737,032 options exercisable with a weighted average exercise price of $14.40 , an intrinsic value of $24.8 million , and a weighted average remaining contractual term of 2.6 years. Black-Scholes Inputs —The fair value of option grants was estimated using the Black-Scholes option pricing model with the following weighted average assumptions: Years Ended December 31, 2014 2013 Weighted-average fair value of options granted $ 7.25 $ 4.24 Expected life in years 4.0 4.1 Risk-free interest rate 1.4 % 1.2 % Expected volatility 39 % 37 % Dividend yield None None For the year ended December 31, 2015 , no assumptions are disclosed as there were no options grants during the year. The expected life of options is based primarily on historical share option exercise experience of our employees for options granted by the Company. All options are treated as a single group in the determination of expected life, as we do not currently expect substantially different exercise or post-vesting termination behavior among our employee population. The risk-free interest rate is based on the U.S. Treasury yield for a term consistent with the expected life of the awards in effect at the time of grant. Expected volatility is based primarily on historical volatility data of our common stock. We have no history or expectation of paying dividends on our common stock. Share-based compensation expense associated with options is based on awards ultimately expected to vest. At the time of an option grant, we estimate the expected future rate of forfeitures based on historical experience. These estimates are revised, if necessary, in subsequent periods if actual forfeiture rates differ from those estimates. If the actual forfeiture rate is lower than estimated we will record additional expense and if the actual forfeiture is higher than estimated we will record a recovery of prior expense. Restricted Stock Awards Activity —The following table summarizes the activity for restricted stock awards during the years ended December 31, 2015 and 2014 : Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2013 625,330 $ 13.28 Granted 197,850 $ 22.68 Vested (223,811 ) $ 13.03 Forfeited (15,985 ) $ 14.73 Unvested at December 31, 2014 583,384 $ 16.50 Granted 211,080 $ 16.52 Vested (244,896 ) $ 36.38 Forfeited (14,360 ) $ 15.19 Unvested at December 31, 2015 535,208 $ 17.42 As of December 31, 2015 , unrecognized compensation related to the unvested portion of our stock awards was approximately $6.1 million , which is expected to be recognized over a weighted average period of 2.2 years. The fair market value of outstanding restricted stock awards at December 31, 2015 was $25.9 million . The weighted average remaining recognition period for unvested restricted stock awards at December 31, 2015 was 1.9 years. Restricted Stock Units Activity —The following table summarizes restricted stock units activity for the years ended December 31, 2015 and 2014 : 2015 2014 Beginning outstanding balance 52,325 47,391 Awarded 15,530 20,600 Released (21,619 ) (13,121 ) Forfeited (753 ) (2,545 ) Ending outstanding balance 45,483 52,325 As of December 31, 2015 , unrecognized compensation related to the unvested portion of our stock units was approximately $473,000 , which is expected to be recognized over a weighted average period of 1.6 years. The aggregate intrinsic value of outstanding restricted stock units at December 31, 2015 was $2.0 million . The weighted average remaining recognition period for unvested restricted stock units at December 31, 2015 was 1.4 years. For the restricted stock awards and restricted stock units that vested during the years ended December 31, 2015 , 2014 , and 2013 , the total intrinsic value was $11.2 million , $6.4 million , and $3.2 million , respectively. Employee Stock Purchase Plan —Under our 2011 Employee Stock Purchase Plan (the “ESPP”), our U.S. employees can elect to have salary withholdings of up to 15% of their eligible compensation to a maximum of $10,625 per offering period, to purchase shares of common stock on April 30 and October 31 of each year. The purchase price for shares acquired under the ESPP is 85% of the fair market value on the last day of the offering period. As of December 31, 2015 , there were 211,255 shares reserved for future issuance under the ESPP. Because the ESPP does not have a “look back” feature, the compensation expense associated with the Plan is not measured by the use of the Black-Scholes pricing model, but rather by measuring the difference between the fair market value of our common stock on the last day of the offering period and the purchase price for the offering period, which is 85% of the fair market value. Compensation expense associated with the ESPP for the years ended December 31, 2015 , 2014 and 2013 , respectively, was $221,000 , $198,000 , and $159,000 .

Restructuring Reserve

Restructuring Reserve	12 Months Ended
	Dec. 31, 2015
Restructuring and Related Activities [Abstract]
Restructuring Reserve	RESTRUCTURING RESERVE We have historically incurred an ongoing level of restructuring-type activities to maintain a competitive cost structure, including manufacturing and workforce optimization resulting from acquisitions. The balance of the restructuring reserve is included in accrued liabilities on the accompanying consolidated balance sheets. Employee termination benefits are included as a part of restructuring expenses. Activity in the restructuring reserves for these plans for the years ended December 31, 2015 , 2014 and 2013 is as follows (in thousands): Personnel Related Facility Related Other Total Balance as of December 31, 2012 $ 2,745 — — $ 2,745 Additions 4,218 504 1,363 6,085 Reversals (1,357 ) — — (1,357 ) Payments (5,271 ) (504 ) (1,363 ) (7,138 ) Balance as of December 31, 2013 335 — — 335 Additions 1,209 680 — 1,889 Reversals (52 ) — — (52 ) Payments (1,124 ) (680 ) — (1,804 ) Balance as of December 31, 2014 368 — — 368 Additions 1,905 156 — 2,061 Reversals (124 ) — — (124 ) Payments (473 ) (156 ) — (629 ) Balance as of December 31, 2015 $ 1,676 — — $ 1,676

Other Income (Expense), Net

Other Income (Expense), Net	12 Months Ended
	Dec. 31, 2015
Other Income and Expenses [Abstract]
Other Income (Expense), Net	OTHER INCOME (EXPENSE), NET Other income (expense), net consists of (in thousands): Years Ended December 31, 2015 2014 2013 Interest income $ 27 $ 119 $ 32 Interest expense (352 ) (438 ) (1,675 ) Foreign currency loss (1,415 ) (37 ) (1,412 ) Other 676 514 339 Total other income (expense), net $ (1,064 ) $ 158 $ (2,716 )

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Income Taxes	INCOME TAXES Income before provision for income tax is as follows (in thousands): Years Ended December 31, 2015 2014 2013 U.S. $ 20,507 $ 16,621 $ 13,200 Foreign 31,902 29,388 18,744 Income before provision for income tax $ 52,409 $ 46,009 $ 31,944 The components of income tax expense for the years ended December 31, 2015 , 2014 and 2013 (in thousands): Years Ended December 31, 2015 2014 2013 Current U.S. Federal $ 13,497 $ 6,514 $ 5,338 U.S. State and local 1,984 1,082 723 Non-U.S. 2,239 6,874 1,708 Total current tax expense 17,720 14,470 7,769 Deferred U.S. Federal (3,410 ) (728 ) (1,042 ) U.S. State and local (385 ) (37 ) (85 ) Non-U.S. 560 (174 ) 2,155 Total deferred tax expense (benefit) (3,235 ) (939 ) 1,028 Total income tax expense $ 14,485 $ 13,531 $ 8,797 Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities as of December 31, 2015 and 2014 are as follows (in thousands): December 31, 2015 2014 Deferred tax assets: Net operating loss carryforwards $ 5,174 $ 4,153 Credit carryforwards 2,078 2,191 Accruals deductible in different periods 18,721 15,666 Employee benefits 2,081 2,864 Total deferred tax assets 28,054 24,874 Valuation allowance (3,972 ) (3,151 ) Total net deferred tax assets $ 24,082 $ 21,723 Deferred tax liabilities: Basis difference in fixed and intangible assets (15,197 ) (17,169 ) Total deferred tax liabilities (15,197 ) (17,169 ) Total net deferred tax assets $ 8,885 $ 4,554 The income tax expense in the accompanying statements of income differs from the provision calculated by applying the U.S. federal statutory income tax rate of 35% in 2015 , 2014 , and 2013 to income before taxes due to the following: Years Ended December 31, 2015 2014 2013 Federal statutory tax expense $ 18,343 $ 16,103 $ 11,180 State tax expense 1,249 892 352 Foreign taxes at rates less than U.S. rates (5,129 ) (3,097 ) (1,496 ) Stock compensation expense on incentive stock options 204 93 49 Tax credits (935 ) (862 ) (834 ) Uncertain tax position 1,388 1,163 1,029 Lapse of statute (784 ) (652 ) (918 ) Change of valuation allowance on foreign tax credit — (491 ) — Other 149 382 (565 ) Total expense $ 14,485 $ 13,531 $ 8,797 At December 31, 2015, we had no U.S. federal and state net operating loss carryforwards because all operating losses were utilized during the fiscal year. We had $1.7 million of U.S. foreign tax credit carryforwards that can be used to offset future U.S. tax liabilities related to foreign source taxable income. The foreign tax credits will start to expire in 2016, and were originally generated in 2006. At December 31, 2015, certain foreign subsidiaries had tax net operating loss carryforwards as follows: $2.0 million in France, $393,000 in Germany, $654,000 in Canada, $1.4 million in Denmark, and $753,000 in United Kingdom. These foreign net operating loss carryforwards, if not utilized to offset taxable income in future periods, will expire in various amounts beginning in 2028. A valuation allowance is provided when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Accordingly, valuation allowances of $4.0 million and $3.2 million were recorded during the years ended December 31, 2015 and 2014, respectively. The increase of $800,000 of valuation allowance was primarily due to a reduction in our ability to realize the tax benefit of our net operating losses in the United Kingdom. Our ability to realize the tax benefit of foreign tax losses is primarily dependent on our ability to generate sufficient foreign taxable income in the future periods. Although realization is not assured, we weighed the aggregate effect of all positive evidence and negative evidence including the applicability of ongoing tax planning strategies and history of earnings to estimate future taxable income level of each jurisdiction. In the event we were to determine that we would not be able to realize all or a portion of our deferred tax assets in the future, we would reduce such amounts through an increase to tax expense in the period in which that determination is made or when tax law changes are enacted. Conversely, if we were to determine that we would be able to realize our deferred tax assets in the future in excess of the net carrying amounts, we would decrease the recorded valuation allowance through a decrease to tax expense in the period in which that determination is made. We receive tax deductions from the gains realized by employees on the exercise of certain non-qualified stock options for which the benefit is recognized as a component of stockholders’ equity. As of December 31, 2015, we recorded approximately $7.4 million change to stockholder’s equity related to exercises or sales of certain stock options by employees. In addition, we recorded a shortfall of $263,000 to stockholder’s equity related to the stock windfall pool as of December 31, 2015. We have not provided for U.S. federal income and foreign withholding taxes on the majority of undistributed earnings from non-U.S. operations as of December 31, 2015 because such earnings are intended to be reinvested indefinitely outside of the U.S. As of December 31, 2015, the U.S. income taxes and foreign withholding taxes were not provided for on a cumulative total of approximately $81.3 million of the undistributed earnings for our Canada and certain European subsidiaries. We intend to reinvest these earnings in our foreign subsidiaries in these regions for foreign acquisitions and purchase various intangible assets among our foreign subsidiaries. If these earnings were distributed to the U.S. in the form of dividends or otherwise, we would be subject to additional U.S. income taxes and foreign withholding taxes. As of December 31, 2015, the tax impact of undistributed earnings from non-U.S. operations has not been estimated as the determination is not practicable. Our foreign subsidiaries held $60.2 million cash and short term investments out of the total cash and short term investments of $82.5 million . If the foreign earnings were repatriated, the cash and short term investments available for other foreign financing activities will be reduced by the foreign taxes paid on the repatriation of earnings in these regions. Uncertain Tax Positions A reconciliation of the beginning and ending amount of unrecognized tax benefits (excluding interest and penalties) is as follows (in thousands): Balance at January 1, 2013 2,716 Increases for tax positions related to prior years 1,376 Increases for tax positions related to the current year 213 Lapse of statutes of limitations (918 ) Balance at January 1, 2014 $ 3,387 Increases for tax positions related to prior years 493 Increases for tax positions related to the current year 73 Lapse of statutes of limitations (558 ) Balance at January 1, 2015 $ 3,395 Increases for tax positions related to prior years 281 Increases for tax positions related to the current year 3,302 Lapse of statutes of limitations (664 ) Balance at December 31, 2015 $ 6,314 For the year ended December 31, 2015, our unrecognized tax benefits increased by $2.9 million and only $509,000 was recorded in our income tax provision as the remaining balance was recorded in our prepaid expense, in accordance with ASC 710-10-25-3(e) and ASC 810-10-45-8. The unrecognized tax benefits for the tax years ended December 31, 2015, 2014 and 2013 were $6.3 million , $3.4 million and $3.4 million , respectively which include $2.4 million , $2.0 million and $2.2 million , respectively that would impact our effective tax rate if recognized. We expect a range from approximately zero to $460,000 of unrecognized tax benefit that will impact the effective tax rate in the next 12 months due to the lapse of statute of limitations provided that no taxing authority conducts a new examination. At December 31, 2015, 2014 and 2013, we had cumulatively accrued approximately $397,000 , $288,000 , and $300,000 for estimated interest and penalties related to uncertain tax positions. We record interest and penalties related to unrecognized tax positions as a component of income tax expense, which totaled approximately $109,000 , $(12,000) , and $(8,000) for the years ended December 31, 2015, 2014, and 2013, respectively. We are currently unaware of any uncertain tax positions that could result in significant additional payments, accruals, or other material deviation in this estimate over the next 12 months . Our tax returns remain open to examination as follows: U.S. federal, 2012 through 2015 ; U.S. states, generally 2011 through 2015 ; significant foreign jurisdictions, generally 2011 through 2015 .

Employee Benefit Plan

Employee Benefit Plan	12 Months Ended
	Dec. 31, 2015
Postemployment Benefits [Abstract]
Employee Benefit Plan	EMPLOYEE BENEFIT PLAN We offer pre-tax and after-tax 401(k) savings plan options under which eligible U.S. employees may elect to have a portion of their salary deferred and contributed to the plan. Employer matching contributions are determined by management and are discretionary. Employer matching contributions were approximately $1.3 million , $1.2 million , and $1.3 million respectively, in the years ended December 31, 2015 , 2014 , and 2013 . For new hires, employer contributions vest ratably over the first two years of employment.

Segment, Customer and Geographi

Segment, Customer and Geographic Information	12 Months Ended
	Dec. 31, 2015
Segment Reporting [Abstract]
Segment, Customer and Geographic Information	SEGMENT, CUSTOMER, AND GEOGRAPHIC INFORMATION We operate in one reportable segment, which we have presented as the aggregation of our Neurology and Newborn Care operating segments. Through our one reportable segment we are organized on the basis of the healthcare products and services we provide which are used for the screening, detection, treatment, monitoring and tracking of common medical ailments in newborn care, hearing impairment, neurological dysfunction, epilepsy, sleep disorders. Our end-user customer base includes hospitals, clinics, laboratories, physicians, nurses, audiologists, and governmental agencies. Most of our international sales are to distributors who resell our products to end users or sub-distributors. Our foreign countries’ revenue is determined based on the customer’s billing address. Revenue and long-lived asset information by geographic region is as follows (in thousands): Years Ended December 31, 2015 2014 2013 Revenue: United States $ 242,050 $ 215,543 $ 199,591 Foreign countries 133,815 140,291 144,521 $ 375,865 $ 355,834 $ 344,112 Revenue by Operating Segment: Neurology Devices and Systems $ 168,776 $ 173,006 $ 162,607 Supplies 60,205 59,666 61,065 Services 8,320 — — Total Neurology Revenue $ 237,301 $ 232,672 $ 223,672 Newborn Care Devices and Systems $ 72,669 $ 67,354 $ 68,588 Supplies 49,982 48,697 47,033 Services 15,913 7,111 4,819 Total Newborn Care Revenue $ 138,564 $ 123,162 $ 120,440 Total Revenue $ 375,865 $ 355,834 $ 344,112 Property and equipment, net: United States $ 6,664 $ 5,782 Canada 5,165 5,538 Ireland 1,651 1,656 Argentina 2,361 3,692 Other foreign countries 1,126 1,255 $ 16,967 $ 17,923 During the years ended December 31, 2015 , 2014 and 2013 , no single customer or foreign country contributed to more than 10% of revenue.

Debt and Credit Arrangements

Debt and Credit Arrangements	12 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
Debt and Credit Arrangements	DEBT AND CREDIT ARRANGEMENTS At December 31, 2015 we have a Credit Agreement with Citibank, National Association (“Citibank”). Pursuant to the terms of the Credit Agreement, Citibank agrees, on a non-committed basis, to make loans to us from time to time, not to exceed at any time the aggregate principal amount of $25 million . The proceeds under the Revolving Line of Credit shall be used for working capital and general corporate purposes. The Credit Agreement contains covenants, including covenants relating to maintenance of books and records, financial reporting and notification, compliance with laws, maintenance of properties and insurance, and limitations on guaranties, investments, issuance of debt, lease obligations and capital expenditures. The Credit Agreement provides for events of default, including failure to pay any principal or interest when due, failure to perform or observe covenants, bankruptcy or insolvency events and the occurrence of a material adverse effect. Concurrent with the execution of the Credit Agreement, we have exited an existing and previously disclosed credit agreement between us and Wells Fargo, N.A. We have no other significant credit facilities. As of December 31, 2015 , there were no amounts outstanding under the Citibank credit agreement.

Commitments And Contingencies

Commitments And Contingencies	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments And Contingencies	COMMITMENTS AND CONTINGENCIES Leases —We have entered into noncancelable operating leases for some of our facilities including related office equipment located in the U.S. and Europe through 2024. Minimum lease payments under noncancelable operating leases as of December 31, 2015 are as follows (in thousands): Operating Leases Year Ending December 31, 2016 $ 3,909 2017 3,590 2018 2,865 2019 2,798 2020 2,465 Thereafter 4,979 Total minimum lease payments $ 20,606 Rent expense, which is recorded on the straight-line method from commencement over the period of the lease, totaled $4.4 million , $4.3 million and $3.9 million in 2015 , 2014 , and 2013 , respectively. Purchase commitments —We had various purchase obligations for goods or services totaling $40.3 million at December 31, 2015 , which are expected to be paid within the next year. Indemnifications —Under our bylaws, we have agreed to indemnify our officers and directors for certain events or occurrences arising as a result of the officer or director serving in such capacity. We have a director and officer liability insurance policy that limits our exposure under these indemnifications and enables us to recover a portion of any future loss arising out of them. In addition, we enter into indemnification agreements with other parties in the ordinary course of business. We have determined that these agreements fall within the scope of ASC 460, Guarantees . In some cases we have obtained liability insurance providing coverage that limits its exposure for these other indemnified matters. We have not incurred material costs to defend lawsuits or settle claims related to these indemnification agreements. We believe the estimated fair value of these indemnification agreements is minimal and have not recorded a liability for these agreements as of December 31, 2015 . Legal matters —We may from time to time become a party to various legal proceedings or claims that arise in the ordinary course of business. We do not believe that any current legal or administrative proceedings are likely to have a material effect on our business, financial condition, or results of operations.

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 2015
Fair Value Disclosures [Abstract]
Fair Value Measurements	FAIR VALUE MEASUREMENTS ASC 820 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Fair value is defined under ASC 820 as the exit price associated with the sale of an asset or transfer of a liability in an orderly transaction between market participants at the measurement date. ASC 820 establishes the following three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value: Level 1 —Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2— Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets and liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 —Unobservable inputs that are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. We do not have any financial assets or liabilities measured at fair value on a recurring basis. The following financial instruments are not measured at fair value on our consolidated balance sheet as of December 31, 2015 and 2014 , but require disclosure of their fair values: cash and cash equivalents, accounts receivable, and accounts payable. The carrying value of these financial instruments approximates fair values because of their relatively short maturity. During the third quarter of 2014, we listed our facility in Mundelein, Illinois for sale. This asset was measured at fair value less cost to sell as of September 30, 2014 based on market price and Level 2 inputs. The book value of this asset on June 30, 2014 was $3.6 million . We expensed $2.2 million during the third quarter of 2014 for this impairment. As of December 31, 2015 we are carrying the asset as held for sale its fair value of $1.4 million . For the years ended December 31, 2014 and 2013 we recorded charges of $0.6 million and $1.5 million , respectively, related to impairment of trademarks and trade names. We measure these non-financial assets at fair value on a nonrecurring basis subsequent to their initial recognition. The fair value of these non-financial assets was measured using Level 3 inputs. See Note 6— Intangible Assets . We also have contingent consideration associated with earn-outs from acquisitions. Contingent consideration liabilities are classified as Level 3 liabilities, as we use unobservable inputs to value them, which is a probability-based income approach. Contingent considerations are classified as accrued liabilities on our consolidated balance sheets. Subsequent changes in the fair value of contingent consideration liabilities are recorded within our income statement as an operating expense. December 31, 2014 Additions Payments Adjustments December 31, 2015 Liabilities: Contingent consideration $ 812 $ 6,209 $ (664 ) $ (148 ) $ 6,209 Total $ 812 $ 6,209 $ (664 ) $ (148 ) $ 6,209 The significant unobservable inputs used in the fair value measurement of contingent consideration related to the acquisitions are annualized revenue forecasts developed by us considering the probability of achievement of those revenue forecasts. Significant increases (decreases) in these unobservable inputs in isolation would result in a significantly lower (higher) fair value measurement.

Schedule II_ Valuation And Qual

Schedule II: Valuation And Qualifying Accounts	12 Months Ended
	Dec. 31, 2015
Valuation and Qualifying Accounts [Abstract]
Schedule II: of Valuation and Qualifying Accounts	SCHEDULE II: VALUATION AND QUALIFYING ACCOUNTS For the years ended December 31, 2015 , 2014 and 2013 (in thousands) Balance at Additions Deductions Balance Year ended December 31, 2015 Allowance for doubtful accounts $ 4,324 $ 1,496 $ (1,134 ) $ 4,686 Valuation allowance 3,151 821 — 3,972 Year ended December 31, 2014 Allowance for doubtful accounts $ 2,962 $ 1,221 $ 141 $ 4,324 Valuation allowance 5,043 — (1,892 ) 3,151 Year ended December 31, 2013 Allowance for doubtful accounts $ 2,617 $ 277 $ 68 $ 2,962 Valuation allowance 4,339 704 — 5,043

Organization and Significant 28

Organization and Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The accompanying Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities in the Consolidated Financial Statements and the reported amount of revenue and expenses during the reporting period. Such estimates include allowances for potentially uncollectible accounts receivable, valuation of inventory, intangible assets, goodwill, share-based compensation, deferred income taxes, reserves for warranty obligations, and the provision for income taxes. Actual results could differ from those estimates.
Revenue recognition	Revenue recognition Revenue, net of discounts, is recognized from sales of medical devices and supplies, including sales to distributors, when the following conditions have been met: a purchase order has been received, title has transferred, the selling price is fixed or determinable, and collection of the resulting receivable is reasonably assured. Terms of sale for most domestic sales are FOB origin, reflecting that title and risk of loss are assumed by the purchaser at the shipping point; however, terms of sale for some neurology, sleep-diagnostic, and head cooling systems are FOB destination, reflecting that title and risk of loss are assumed by the purchaser upon delivery. Terms of sales to international distributors are generally EXW, reflecting that goods are shipped “ex works,” in which title and risk of loss are assumed by the distributor at the shipping point. For products shipped under FOB origin or EXW terms, delivery is generally considered to have occurred when the product is shipped. Freight charges billed to customers are included in revenue and freight-related expenses are charged to cost of revenue. We generally do not provide rights of return on products. For products containing embedded software, we have determined that the hardware and software components function together to deliver the products’ essential functionality, and therefore, the revenue from the sale of these products does not fall within the scope of the software revenue recognition rules. Our revenue recognition policies for sales of these products are substantially the same as for our other tangible products. Revenue from sales of certain of our products that remain within the scope of the software revenue recognition rules under ASC Subtopic 985-605 is not significant. Revenue from extended service and maintenance agreements, for both medical devices and data management systems, is recognized ratably over the service period. Revenue from installation or training services is deferred until such time service is provided. Certain revenue transactions include multiple element arrangements. We allocate revenue in these arrangements to each unit of accounting using the relative selling price method. The selling prices used during the allocation process are based on vendor specific objective evidence (“VSOE”) if available, third-party evidence ("TPE") if VSOE is not available, or estimated selling price ("ESP") if neither VSOE or TPE is available. Group purchasing organizations (“GPOs”) negotiate volume purchase prices for member hospitals, group practices, and other clinics. Our agreements with GPOs typically contain preferential terms for the GPO and its members, including provisions for some, if not all, of the following: • Payment of marketing fees by Natus to the GPO, usually based on purchasing experience of group members; and • Non-recourse cancellation provisions. We do not sell products to GPOs. Hospitals, group practices, and other clinics that are members of a GPO purchase products directly from us under the terms negotiated by the GPO. Negotiated pricing and discounts are recognized as a reduction of the selling price of products at the time of the sale. Revenue from sales to members of GPOs is otherwise consistent with general revenue recognition policies as previously described.
Inventory	Inventory Inventories are carried at the lower of cost or market, with cost being determined using the first-in, first-out method. The carrying value of our inventories is reduced for any difference between cost and estimated market value of inventories that is determined to be obsolete or unmarketable, based upon assumptions about future demand and market conditions. Adjustments to the value of our inventory establish a new cost basis and are considered permanent even if circumstances later suggest that increased carrying amounts are recoverable. If demand is higher than expected, we may sell inventory that had previously been written down.
Carrying value of intangible assets and goodwill	Carrying value of intangible assets and goodwill We amortize intangible assets with finite lives over their useful lives; any future changes that would limit their useful lives or any determination that these assets are carried at amounts greater than their estimated fair value could result in additional charges. Goodwill is not amortized but is subject to an annual impairment analysis, which is performed as of October 1st; this assessment is also performed whenever there is a change in circumstances that indicates the carrying value of goodwill may be impaired. In 2015 and 2014, we performed qualitative assessments to test our reporting units’ goodwill for impairment. Qualitative factors considered in this assessment include industry and market considerations, overall financial performance and other relevant events and factors affecting each reporting unit. Based on our qualitative assessment, we determined that the fair value of each reporting unit was more likely than not to be greater than its carrying amount, and no impairment was recognized. In 2013 we performed a two-step impairment test on our goodwill. The first step of the goodwill impairment test, used to identify potential impairment, compares the fair value of a reporting unit to its carrying value, including goodwill. We use a projected discounted cash flow model to determine the fair value of a reporting unit. If the fair value of the reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired, and the second step of the impairment test is not required. The second step, if required, compares the implied fair value of the reporting unit goodwill with the carrying amount of that goodwill. The fair value of a reporting unit is allocated to all of the assets and liabilities of that unit (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination and the fair value of the reporting unit was the price paid to acquire the reporting unit. If the carrying amount of the reporting unit’s goodwill exceeds its implied fair value, an impairment charge is recognized in an amount equal to that excess. Prior to the assignment of definite lives to our tradenames in the second quarter of 2015 (See Note 6 - Intangible Assets ), we tested indefinite lived intangibles for impairment by comparing the carrying value of those assets to be fair value as of the assessment date. We used the relief from royalty method to determine the fair value of the assets. This analysis is dependent upon a number of quantitative and qualitative factors including estimates of forecasted revenue, royalty rate, and taxes. The discount rate applied also has an impact on the estimates of fair value, as use of a higher rate will result in a lower estimate of fair value. As of the October 1, 2014 and 2013 testing dates, we determined that certain trade names were impaired and we recorded impairment charges of $0.6 million and $1.5 million , respectively. Goodwill impairment analysis and measurement is a process that requires significant judgment. Future changes in the judgments and estimates underlying our analysis of goodwill for possible impairment, including expected future cash flows and discount rate, could result in a significantly different estimate of the fair value of the reporting units and could result in additional impairment of goodwill.
Long lived assets	Long lived assets We continually monitor events and changes in circumstances that could indicate that carrying amounts of its long-lived assets, including property and equipment and intangible assets, may not be recoverable. When such events or changes in circumstances occur, we assess the recoverability by determining whether the carrying value of such assets will be recovered through their undiscounted expected future cash flows. If the future undiscounted cash flows are less than the carrying amount of these assets, we will recognize an impairment loss based on the excess of the carrying amount over the fair value of the assets.
Liability for product warranties	Liability for product warranties We provide a warranty with our products that is generally one year in length and in some cases, regulations may require us to provide repair or remediation beyond our typical warranty period. If any of our products contain defects, we may be required to incur additional repair and remediation costs. Service for domestic customers is provided by Company-owned service centers that perform all service, repair, and calibration services. Service for international customers is provided by a combination of Company-owned facilities and vendors on a contract basis. A warranty reserve is included in accrued liabilities for the expected future costs of servicing products. Additions to the reserve are based on management’s best estimate of probable liability. We consider a combination of factors including material and labor costs, regulatory requirements, and other judgments in determining the amount of the reserve. The reserve is reduced as costs are incurred to honor existing warranty and regulatory obligations.
Share-based compensation	Share-based compensation We recognize share-based compensation expense associated with employee stock options under the single-option straight line method over the requisite service period, which is generally a four -year vesting period pursuant to ASC Topic 718, Compensation-Stock Compensation . See Note 12 of our Consolidated Financial Statements. For employee stock options, the value of each option is estimated on the date of grant using the Black-Scholes option pricing model, which was developed for use in estimating the value of freely traded options. Similar to other option pricing models, the Black-Scholes method requires the input of highly subjective assumptions, including stock price volatility. Changes in the subjective input assumptions can materially affect the estimated fair value of our employee stock options. We recognize share-based compensation associated with Restricted Stock Awards ("RSA") and Restricted Stock Units ("RSU"). RSAs and RSUs vest ratably over a three -year period for employees. RSAs and RSUs for executives vest over a four -year period; 50% on the second anniversary of the vesting start date and 25% on each of the third and fourth anniversaries of the vesting date. The value is estimated based on the market value of our commons stock on the date of issuance pursuant to ASC Topic 718, Compensation-Stock Compensation.
Cash Equivalents	Cash Equivalents All highly liquid instruments purchased with an original maturity of three months or less are classified as cash equivalents.
Allowance for Doubtful Accounts	Allowance for Doubtful Accounts We estimate our allowance for estimated uncollectible accounts receivable based on historical collection experience within the markets in which we operate and other customer-specific information, such as bankruptcy filings or liquidity problems of customers. When all internal efforts have been exhausted to collect the receivable, it is written off and relieved from the reserve.
Fair Value of Financial Instruments	Fair Value of Financial Instruments Financial instruments include cash and cash equivalents, accounts receivable, and accounts payable. Cash is reported at its fair value on the balance sheet dates. The recorded carrying amounts of accounts receivable and accounts payable approximate their fair values due to their short-term maturities.
Property and Equipment	Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation expense is computed using the straight-line method over estimated useful lives of the respective assets, which are three to five years for office furniture and equipment, three to five years for computer software and hardware, three years for demonstration and loaned equipment, and 30 to 40 years for buildings. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life. Land is not depreciated. Costs associated with acquiring and installing software to be used for internal purposes are capitalized and amortized on a straight-line basis over three years.
Research & Development Costs	Research & Development Costs Costs incurred in research and development are charged to operations as incurred.
Income Taxes	Income Taxes We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. We record net deferred tax assets to the extent we believe it is more likely than not that the assets will be realized. In making such determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operations. In the event we were to determine that we would be able to realize our deferred income tax assets in the future in excess of their net recorded amount, we would make an adjustment to the valuation allowance which would reduce the provision for income taxes. We recognize the tax benefit of uncertain tax positions in the financial statements in accordance with ASC Topic 740, Income Tax. When the tax position is deemed more likely than not of being sustained, we recognize the largest amount of tax benefit that is greater than 50 percent likely of being ultimately realized upon settlement, in accordance with ASC 740-10-05.
Foreign Currency	Foreign Currency The functional currency of our subsidiaries outside of North America is generally the local currency of the country where the subsidiary is located. Accordingly, foreign currency translation adjustments relating to the translation of foreign subsidiary financial statements are included as a component of accumulated other comprehensive loss. We recorded $8.4 million , $11.2 million , and $2.0 million of foreign currency translation losses for the years ended December 31, 2015, 2014 and 2013, respectively. Gains and losses from transactions denominated in currencies other than our functional currencies are included in other income and expense. In 2015, 2014, and 2013, net foreign currency transaction losses were $1.4 million , $37,000 , and $1.4 million , respectively. Foreign currency gains and losses result primarily from fluctuations in the exchange rate between the U.S. Dollar, Canadian Dollar, Euro, Argentine Peso, British Pound, and Danish Kroner.
Comprehensive Income	Comprehensive Income We report by major components and as a single total the change in our net assets during the period from non-owner sources in accordance with ASC Topic 220, Comprehensive Income. The consolidated statement of comprehensive income has been included with the consolidated statements of operations. Accumulated other comprehensive income consists of translation gains and losses on foreign subsidiary financial statements.
Basic and Diluted Net Income per Share	Basic and Diluted Net Income per Share We compute net income per share in accordance with ASC Topic 260, Earnings per Share. Basic net income per share is based upon the weighted average number of common shares outstanding during the period. Diluted net income per share is based upon the weighted average number of common shares outstanding and dilutive common stock equivalents outstanding during the period. Common stock equivalents are options granted and shares of restricted stock issued under our stock awards plans and are calculated under the treasury stock method. Common equivalent shares from unexercised stock options and restricted stock are excluded from the computation when there is a loss as their effect is anti-dilutive, or if the exercise price of such options is greater than the average market price of the stock for the period.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 requires revenue recognition to depict the transfer of 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. ASU 2014-09 sets forth a new revenue recognition model that requires identifying the contract, identifying the performance obligations, determining the transaction price, allocating the transaction price to performance obligations and recognizing the revenue upon satisfaction of performance obligations. The original effective date for ASU 2014-09 would have required us to adopt beginning in its first quarter of 2017. In July 2015, the FASB voted to amend ASU 2014-09 by approving a one-year deferral of the effective date as well as providing the option to early adopt the standard on the original effective date. Accordingly, we may adopt the standard in either our first quarter of 2017 or our first quarter of 2018. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. We are currently evaluating the timing of its adoption and the impact of adopting the new revenue standard on our consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classifications of Deferred Taxes. This update requires an entity to classify deferred tax liabilities and assets as non-current within a classified statement of financial position. ASU 2015-17 is effective for annual and interim reporting periods beginning after December 15, 2016. This update may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. We elected early application prospectively in the beginning of the fourth quarter 2015. Prior periods in the consolidated financial statements were not retrospectively adjusted. As a result, $14.2 million of current deferred tax assets were reported as non-current deferred tax assets.

Business Combinations (Tables)

Business Combinations (Tables) - Grass Technologies [Member]	12 Months Ended
	Dec. 31, 2015
Summary of purchase price allocation of the fair value of the assets acquired and liabilities	The following table summarizes the purchase price allocation of the fair value of the assets acquired and liabilities assumed at the date of acquisition, as adjusted (in thousands): Accounts receivable $ 4,098 Prepaid and other assets 33 Inventories 547 Identifiable intangible assets: Developed technology 2,500 Customer-related 5,200 Trademarks and trade names 3,000 Other property and equipment 237 Goodwill 7,014 Accounts payable (431 ) Accrued expenses (895 ) Deferred revenue (348 ) Total purchase price $ 20,955
Unaudited Pro forma Financial Information	The following unaudited pro forma information combines our results of operations for the year ended December 31, 2013 with the results of operations for Grass as if the acquisition had occurred on January 1, 2013. 2013 Revenue $ 345,117 Income from operations $ 35,369

Inventories (Tables)

Inventories (Tables)	12 Months Ended
	Dec. 31, 2015
Inventory Disclosure [Abstract]
Inventories	Inventories consist of (in thousands): December 31, 2015 2014 Raw materials and subassemblies $ 19,041 $ 19,821 Work in process 1,343 1,808 Finished goods 36,149 26,037 Total Inventories 56,533 47,666 Less: Non-current Inventories (7,961 ) (7,615 ) Inventories $ 48,572 $ 40,051

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and equipment consist of (in thousands): December 31, 2015 2014 Land $ 2,918 $ 3,092 Buildings 5,662 6,828 Leasehold improvements 2,345 2,118 Office furniture and equipment 13,866 12,945 Computer software and hardware 10,488 8,715 Demonstration and loaned equipment 11,216 10,929 46,495 44,627 Accumulated depreciation (29,528 ) (26,704 ) Total $ 16,967 $ 17,923

Goodwill (Tables)

Goodwill (Tables)	12 Months Ended
	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	The carrying amount of goodwill and the changes in those balances are as follows (in thousands): As of December 31, 2013 $ 97,238 Acquisitions/Purchase Accounting Adjustments 4,002 Foreign currency translation (4,924 ) As of December 31, 2014 $ 96,316 Acquisitions/Purchase Accounting Adjustments 13,547 Foreign currency translation (2,397 ) As of December 31, 2015 $ 107,466

Intangible Assets (Tables)

Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Components of Gross and Net Intangible Asset Balances	The following table summarizes the components of gross and net intangible asset balances (in thousands): December 31, 2015 December 31, 2014 Gross Accumulated Accumulated Net Book Gross Accumulated Accumulated Net Book Intangible assets with definite lives: Technology $ 63,668 — $ (31,600 ) $ 32,068 $ 64,376 — $ (28,195 ) $ 36,181 Customer related 35,529 — (14,352 ) 21,177 31,189 — (11,786 ) 19,403 Trade names 31,837 (3,340 ) (3,052 ) 25,445 — — — — Internally developed software 15,513 — (8,155 ) 7,358 14,109 — (6,511 ) 7,598 Patents 2,663 — (2,175 ) 488 2,794 — (2,154 ) 640 Backlog 717 — (717 ) — 719 — (719 ) — Definite-lived intangible assets 149,927 (3,340 ) (60,051 ) 86,536 113,187 — (49,365 ) 63,822 Intangible assets with indefinite lives: Trade names — — — — 32,443 (3,504 ) — 28,939 Total intangible assets 149,927 (3,340 ) (60,051 ) 86,536 145,630 (3,504 ) (49,365 ) 92,761
Amortization expense related to intangible assets with definite lives	Amortization expense related to intangible assets with finite lives was as follows (in thousands): Years Ended December 31, 2015 2014 2013 Technology $ 3,916 $ 3,993 $ 4,355 Customer related 2,938 1,892 2,644 Trade names 3,159 — — Internally developed software 1,620 1,434 1,034 Patents 112 113 121 Total amortization $ 11,745 $ 7,432 $ 8,154
Expected annual amortization expense related to amortizable intangible assets	Expected annual amortization expense related to amortizable intangible assets is as follows (in thousands): 2016 $ 12,501 2017 12,203 2018 11,980 2019 10,860 2020 8,766 Thereafter 30,226 Total expected amortization expense $ 86,536

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	12 Months Ended
	Dec. 31, 2015
Payables and Accruals [Abstract]
Accrued Liabilities	Accrued liabilities consist of (in thousands): December 31, 2015 2014 Compensation and related benefits $ 16,752 $ 16,075 Accrued federal, state, and local taxes 4,707 9,213 Warranty reserve 10,386 2,753 Accrued professional fees 520 1,027 Contingent consideration 6,209 812 Other 3,563 6,144 Total $ 42,137 $ 36,024

Long-Term Other Liabilities (Ta

Long-Term Other Liabilities (Tables)	12 Months Ended
	Dec. 31, 2015
Other Liabilities Disclosure [Abstract]
Long-Term Other Liabilities	Long-term other liabilities consist of (in thousands): December 31, 2015 2014 Contingent tax obligations $ 6,376 $ 3,299 Non-current deferred revenue 1,401 1,537 Other 4 23 Total $ 7,781 $ 4,859

Reserve for Product Warranties

Reserve for Product Warranties (Tables)	12 Months Ended
	Dec. 31, 2015
Guarantees [Abstract]
Reserves for Product Warranties	The details of activity in the warranty reserve are as follows (in thousands): Balance at Beginning of Period Assumed Through Acquisitions Additions Charged to Expense Reductions Balance at End of Period December 31, 2015 $ 2,753 $ — $ 10,729 $ (3,096 ) $ 10,386 December 31, 2014 $ 3,143 $ — $ 2,306 $ (2,696 ) $ 2,753 December 31, 2013 $ 2,260 $ 191 $ 1,938 $ (1,246 ) $ 3,143

Earnings Per Share (Tables)

Earnings Per Share (Tables)	12 Months Ended
	Dec. 31, 2015
Earnings Per Share [Abstract]
Components of Basic and Diluted EPS	The components of basic and diluted EPS are as follows (in thousands): December 31, 2015 2014 2013 Net income $ 37,924 $ 32,478 $ 23,147 Weighted average common shares 32,348 31,499 29,993 Dilutive effect of stock based awards 893 1,069 828 Diluted Shares 33,241 32,568 30,821 Basic earnings per share $ 1.17 $ 1.03 $ 0.77 Diluted earnings per share $ 1.14 $ 1.00 $ 0.75 Shares excluded from calculation of diluted EPS — 239 1,413

Share-Based Compensation (Table

Share-Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-Based Compensation Expense	Share-based compensation was recognized as follows in the consolidated statement of income (in thousands): December 31, 2015 2014 2013 Cost of revenue $ 156 $ 143 $ 120 Marketing and selling 808 977 816 Research and development 1,264 664 527 General and administrative 4,725 4,278 4,456 Total expense 6,953 6,062 5,919
Stock Options Activity	Stock Option Activity —Stock option activity under our stock awards plans for the year ended December 31, 2015 and 2014 is summarized as follows: Number of Shares Weighted Average Exercise Price Outstanding, December 31, 2013 (1,843,779 shares exercisable at a weighted average exercise price of $12.68 per share) 2,789,723 $ 12.90 Granted 244,500 $ 22.60 Exercised (1,242,679 ) $ 12.14 Cancelled (34,942 ) $ 15.29 Outstanding, December 31, 2014 (1,051,616 shares exercisable at a weighted average exercise price of $14.13 per share) 1,756,602 $ 14.74 Granted — $ — Exercised (631,663 ) $ 14.26 Cancelled (19,757 ) $ 11.99 Outstanding, December 31, 2015 (737,032 shares exercisable at a weighted average exercise price of $14.40 per share) 1,105,182 $ 15.07
Black-Scholes Inputs	Black-Scholes Inputs —The fair value of option grants was estimated using the Black-Scholes option pricing model with the following weighted average assumptions: Years Ended December 31, 2014 2013 Weighted-average fair value of options granted $ 7.25 $ 4.24 Expected life in years 4.0 4.1 Risk-free interest rate 1.4 % 1.2 % Expected volatility 39 % 37 % Dividend yield None None
Restricted Stock Awards Activity	Restricted Stock Awards Activity —The following table summarizes the activity for restricted stock awards during the years ended December 31, 2015 and 2014 : Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2013 625,330 $ 13.28 Granted 197,850 $ 22.68 Vested (223,811 ) $ 13.03 Forfeited (15,985 ) $ 14.73 Unvested at December 31, 2014 583,384 $ 16.50 Granted 211,080 $ 16.52 Vested (244,896 ) $ 36.38 Forfeited (14,360 ) $ 15.19 Unvested at December 31, 2015 535,208 $ 17.42
Restricted Stock Units Activity	Restricted Stock Units Activity —The following table summarizes restricted stock units activity for the years ended December 31, 2015 and 2014 : 2015 2014 Beginning outstanding balance 52,325 47,391 Awarded 15,530 20,600 Released (21,619 ) (13,121 ) Forfeited (753 ) (2,545 ) Ending outstanding balance 45,483 52,325

Restructuring Reserve (Tables)

Restructuring Reserve (Tables)	12 Months Ended
	Dec. 31, 2015
Restructuring and Related Activities [Abstract]
Detail of Activity in the Restructuring Reserve	Activity in the restructuring reserves for these plans for the years ended December 31, 2015 , 2014 and 2013 is as follows (in thousands): Personnel Related Facility Related Other Total Balance as of December 31, 2012 $ 2,745 — — $ 2,745 Additions 4,218 504 1,363 6,085 Reversals (1,357 ) — — (1,357 ) Payments (5,271 ) (504 ) (1,363 ) (7,138 ) Balance as of December 31, 2013 335 — — 335 Additions 1,209 680 — 1,889 Reversals (52 ) — — (52 ) Payments (1,124 ) (680 ) — (1,804 ) Balance as of December 31, 2014 368 — — 368 Additions 1,905 156 — 2,061 Reversals (124 ) — — (124 ) Payments (473 ) (156 ) — (629 ) Balance as of December 31, 2015 $ 1,676 — — $ 1,676

Other Income (expense), net (Ta

Other Income (expense), net (Tables)	12 Months Ended
	Dec. 31, 2015
Other Income and Expenses [Abstract]
Other income (expense), net	Other income (expense), net consists of (in thousands): Years Ended December 31, 2015 2014 2013 Interest income $ 27 $ 119 $ 32 Interest expense (352 ) (438 ) (1,675 ) Foreign currency loss (1,415 ) (37 ) (1,412 ) Other 676 514 339 Total other income (expense), net $ (1,064 ) $ 158 $ (2,716 )

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Income (loss) before provision (benefit) for income tax	Income before provision for income tax is as follows (in thousands): Years Ended December 31, 2015 2014 2013 U.S. $ 20,507 $ 16,621 $ 13,200 Foreign 31,902 29,388 18,744 Income before provision for income tax $ 52,409 $ 46,009 $ 31,944
Summary of components of income tax expense	The components of income tax expense for the years ended December 31, 2015 , 2014 and 2013 (in thousands): Years Ended December 31, 2015 2014 2013 Current U.S. Federal $ 13,497 $ 6,514 $ 5,338 U.S. State and local 1,984 1,082 723 Non-U.S. 2,239 6,874 1,708 Total current tax expense 17,720 14,470 7,769 Deferred U.S. Federal (3,410 ) (728 ) (1,042 ) U.S. State and local (385 ) (37 ) (85 ) Non-U.S. 560 (174 ) 2,155 Total deferred tax expense (benefit) (3,235 ) (939 ) 1,028 Total income tax expense $ 14,485 $ 13,531 $ 8,797
Deferred tax assets and liabilities	Significant components of our deferred tax assets and liabilities as of December 31, 2015 and 2014 are as follows (in thousands): December 31, 2015 2014 Deferred tax assets: Net operating loss carryforwards $ 5,174 $ 4,153 Credit carryforwards 2,078 2,191 Accruals deductible in different periods 18,721 15,666 Employee benefits 2,081 2,864 Total deferred tax assets 28,054 24,874 Valuation allowance (3,972 ) (3,151 ) Total net deferred tax assets $ 24,082 $ 21,723 Deferred tax liabilities: Basis difference in fixed and intangible assets (15,197 ) (17,169 ) Total deferred tax liabilities (15,197 ) (17,169 ) Total net deferred tax assets $ 8,885 $ 4,554
Reconciliation of effective income tax rate	The income tax expense in the accompanying statements of income differs from the provision calculated by applying the U.S. federal statutory income tax rate of 35% in 2015 , 2014 , and 2013 to income before taxes due to the following: Years Ended December 31, 2015 2014 2013 Federal statutory tax expense $ 18,343 $ 16,103 $ 11,180 State tax expense 1,249 892 352 Foreign taxes at rates less than U.S. rates (5,129 ) (3,097 ) (1,496 ) Stock compensation expense on incentive stock options 204 93 49 Tax credits (935 ) (862 ) (834 ) Uncertain tax position 1,388 1,163 1,029 Lapse of statute (784 ) (652 ) (918 ) Change of valuation allowance on foreign tax credit — (491 ) — Other 149 382 (565 ) Total expense $ 14,485 $ 13,531 $ 8,797
Uncertain Tax Positions	A reconciliation of the beginning and ending amount of unrecognized tax benefits (excluding interest and penalties) is as follows (in thousands): Balance at January 1, 2013 2,716 Increases for tax positions related to prior years 1,376 Increases for tax positions related to the current year 213 Lapse of statutes of limitations (918 ) Balance at January 1, 2014 $ 3,387 Increases for tax positions related to prior years 493 Increases for tax positions related to the current year 73 Lapse of statutes of limitations (558 ) Balance at January 1, 2015 $ 3,395 Increases for tax positions related to prior years 281 Increases for tax positions related to the current year 3,302 Lapse of statutes of limitations (664 ) Balance at December 31, 2015 $ 6,314

Segment, Customer and Geograp42

Segment, Customer and Geographic Information (Tables)	12 Months Ended
	Dec. 31, 2015
Segment Reporting [Abstract]
Revenue and long-lived asset information by geographic region	Revenue and long-lived asset information by geographic region is as follows (in thousands): Years Ended December 31, 2015 2014 2013 Revenue: United States $ 242,050 $ 215,543 $ 199,591 Foreign countries 133,815 140,291 144,521 $ 375,865 $ 355,834 $ 344,112 Revenue by Operating Segment: Neurology Devices and Systems $ 168,776 $ 173,006 $ 162,607 Supplies 60,205 59,666 61,065 Services 8,320 — — Total Neurology Revenue $ 237,301 $ 232,672 $ 223,672 Newborn Care Devices and Systems $ 72,669 $ 67,354 $ 68,588 Supplies 49,982 48,697 47,033 Services 15,913 7,111 4,819 Total Newborn Care Revenue $ 138,564 $ 123,162 $ 120,440 Total Revenue $ 375,865 $ 355,834 $ 344,112 Property and equipment, net: United States $ 6,664 $ 5,782 Canada 5,165 5,538 Ireland 1,651 1,656 Argentina 2,361 3,692 Other foreign countries 1,126 1,255 $ 16,967 $ 17,923

Commitments And Contingencies (

Commitments And Contingencies (Tables)	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Minimum Future Leases Payments Receivable	Minimum lease payments under noncancelable operating leases as of December 31, 2015 are as follows (in thousands): Operating Leases Year Ending December 31, 2016 $ 3,909 2017 3,590 2018 2,865 2019 2,798 2020 2,465 Thereafter 4,979 Total minimum lease payments $ 20,606

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 2015
Fair Value Disclosures [Abstract]
Changes in fair value of contingent consideration	also have contingent consideration associated with earn-outs from acquisitions. Contingent consideration liabilities are classified as Level 3 liabilities, as we use unobservable inputs to value them, which is a probability-based income approach. Contingent considerations are classified as accrued liabilities on our consolidated balance sheets. Subsequent changes in the fair value of contingent consideration liabilities are recorded within our income statement as an operating expense. December 31, 2014 Additions Payments Adjustments December 31, 2015 Liabilities: Contingent consideration $ 812 $ 6,209 $ (664 ) $ (148 ) $ 6,209 Total $ 812 $ 6,209 $ (664 ) $ (148 ) $ 6,209

Organization and Significant 45

Organization and Significant Accounting Policies (Textual) (Detail) - USD ($) $ in Thousands	Oct. 01, 2014	Oct. 01, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Organization Consolidation And Presentation Of Financial Statements Disclosure And Significant Accounting Policies [Line Items]
Non-current deferred tax assets			$ 12,782	$ 1,152
Impairment of certain indefinite live intangible assets			0	598	$ 1,500
Recorded foreign currency translation adjustments			8,378	11,218	1,972
Net foreign currency transactions losses			$ 1,415	37	$ 1,412
Employee Stock Option [Member]
Organization Consolidation And Presentation Of Financial Statements Disclosure And Significant Accounting Policies [Line Items]
Vesting period			4 years
Restricted Stock Awards [Member] | Executives RSAs and RSUs [Member]
Organization Consolidation And Presentation Of Financial Statements Disclosure And Significant Accounting Policies [Line Items]
Vesting period			4 years
Restricted Stock Awards [Member] | Executives RSAs and RSUs [Member] | Vest on second anniversary of the vesting start date [Member]
Organization Consolidation And Presentation Of Financial Statements Disclosure And Significant Accounting Policies [Line Items]
Vesting percentage			50.00%
Restricted Stock Awards [Member] | Executives RSAs and RSUs [Member] | On each of the third and fourth anniversaries of the vesting date[Member]
Organization Consolidation And Presentation Of Financial Statements Disclosure And Significant Accounting Policies [Line Items]
Vesting percentage			25.00%
Restricted Stock Awards [Member] | Employees [Member]
Organization Consolidation And Presentation Of Financial Statements Disclosure And Significant Accounting Policies [Line Items]
Vesting period			3 years
Trade names [Member]
Organization Consolidation And Presentation Of Financial Statements Disclosure And Significant Accounting Policies [Line Items]
Impairment of certain indefinite live intangible assets	$ 600	$ 1,500
Office furniture and equipment [Member] | Minimum [Member]
Organization Consolidation And Presentation Of Financial Statements Disclosure And Significant Accounting Policies [Line Items]
Estimated useful lives of property and equipment			3 years
Office furniture and equipment [Member] | Maximum [Member]
Organization Consolidation And Presentation Of Financial Statements Disclosure And Significant Accounting Policies [Line Items]
Estimated useful lives of property and equipment			5 years
Computer software and hardware [Member] | Minimum [Member]
Organization Consolidation And Presentation Of Financial Statements Disclosure And Significant Accounting Policies [Line Items]
Estimated useful lives of property and equipment			3 years
Computer software and hardware [Member] | Maximum [Member]
Organization Consolidation And Presentation Of Financial Statements Disclosure And Significant Accounting Policies [Line Items]
Estimated useful lives of property and equipment			5 years
Demonstration and loaned equipment [Member]
Organization Consolidation And Presentation Of Financial Statements Disclosure And Significant Accounting Policies [Line Items]
Estimated useful lives of property and equipment			3 years
Buildings [Member] | Minimum [Member]
Organization Consolidation And Presentation Of Financial Statements Disclosure And Significant Accounting Policies [Line Items]
Estimated useful lives of property and equipment			30 years
Buildings [Member] | Maximum [Member]
Organization Consolidation And Presentation Of Financial Statements Disclosure And Significant Accounting Policies [Line Items]
Estimated useful lives of property and equipment			40 years
Adjustments for New Accounting Principle, Early Adoption [Member]
Organization Consolidation And Presentation Of Financial Statements Disclosure And Significant Accounting Policies [Line Items]
Non-current deferred tax assets				$ 14,200

Business Combinations (Textual)

Business Combinations (Textual) (Detail)	Jan. 11, 2016USD ($)	Nov. 13, 2015USD ($)	Jan. 23, 2015USD ($)	Jan. 02, 2015USD ($)	Feb. 02, 2013USD ($)	Dec. 31, 2015USD ($)	Jun. 30, 2015USD ($)	Dec. 31, 2014USD ($)	Mar. 31, 2014USD ($)agreement	Dec. 31, 2013USD ($)	Dec. 31, 2013USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Business Acquisition [Line Items]
Goodwill						$ 107,466,000		$ 96,316,000		$ 97,238,000	$ 97,238,000	$ 107,466,000	$ 96,316,000	$ 97,238,000
Contingent consideration earn-out												(664,000)	0	0
Impairment of intangible assets												0	598,000	1,500,000
General and administrative												$ 46,363,000	45,444,000	43,380,000
Trademarks and trade names [Member]
Business Acquisition [Line Items]
Impairment of intangible assets													600,000	$ 1,500,000
Monarch Medical Diagnostics, LLC [Member]
Business Acquisition [Line Items]
Purchase price paid in cash to acquire entity		$ 2,700,000
Monarch Medical Diagnostics, LLC [Member] | Subsequent Event [Member]
Business Acquisition [Line Items]
Contingent consideration	$ 1,000,000
Tangible assets	112,000
Identifiable intangible assets	1,200,000
Goodwill	$ 2,400,000
Identifiable intangible assets, average useful life	5 years
Global Neuro-Diagnostics [Member]
Business Acquisition [Line Items]
Purchase price paid in cash to acquire entity			$ 11,400,000
Contingent consideration			3,200,000			$ 3,800,000
Tangible assets			1,500,000
Identifiable intangible assets			4,800,000
Goodwill			$ 8,900,000
Identifiable intangible assets, average useful life			5 years
Net liabilities			$ 511,000
NicView [Member]
Business Acquisition [Line Items]
Purchase price paid in cash to acquire entity				$ 1,100,000
Contingent consideration				1,400,000
Tangible assets				288,000
Goodwill				2,700,000
Net liabilities				$ 556,000
Newborn Hearing Screening Services [Member]
Business Acquisition [Line Items]
Purchase price paid in cash to acquire entity									$ 2,600,000
Contingent consideration									$ 800,000
Number of asset purchase agreements | agreement									2
Contingent consideration earn-out							$ 700,000
Grass Technologies [Member]
Business Acquisition [Line Items]
Purchase price paid in cash to acquire entity					$ 21,000,000
Goodwill					7,014,000
Inventory purchase commitment									$ 2,400,000
Direct cost associated with entity acquisition					624,000
Percentage of premium for discounted cash flow model						13.00%						13.00%
Revenue											12,800,000
Income from operations											$ 2,600,000
Amortization of intangible assets acquired													59,300
Decrease in depreciation expense related to property and equipment acquired													14,800
Grass Technologies [Member] | Trademarks and trade names [Member]
Business Acquisition [Line Items]
Identifiable intangible assets					3,000,000	$ 2,000,000						$ 2,000,000
Impairment of intangible assets								$ 400,000		$ 600,000
Grass Technologies [Member] | Acquisition-related Costs [Member]
Business Acquisition [Line Items]
General and administrative													$ 624,000
Grass Technologies [Member] | Technology [Member]
Business Acquisition [Line Items]
Identifiable intangible assets					$ 2,500,000
Identifiable intangible assets, average useful life					8 years
Grass Technologies [Member] | Customer related [Member]
Business Acquisition [Line Items]
Identifiable intangible assets					$ 5,200,000
Identifiable intangible assets, average useful life					13 years

Business Combinations - Summary

Business Combinations - Summary of Purchase Price Allocation of Fair Value of Assets Acquired and Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Feb. 02, 2013
Business Acquisition [Line Items]
Goodwill	$ 107,466	$ 96,316	$ 97,238
Grass Technologies [Member]
Business Acquisition [Line Items]
Accounts receivable				$ 4,098
Prepaid and other assets				33
Inventories				547
Goodwill				7,014
Accounts payable				(431)
Accrued expenses				(895)
Deferred revenue				(348)
Total purchase price				20,955
Grass Technologies [Member] | Other Property Plant and Equipment [Member]
Business Acquisition [Line Items]
Other property and equipment				237
Grass Technologies [Member] | Trademarks and trade names [Member]
Business Acquisition [Line Items]
Identifiable intangible assets	$ 2,000			3,000
Grass Technologies [Member] | Technology [Member]
Business Acquisition [Line Items]
Identifiable intangible assets				2,500
Grass Technologies [Member] | Customer related [Member]
Business Acquisition [Line Items]
Identifiable intangible assets				$ 5,200

Business Combinations - Unaudit

Business Combinations - Unaudited Pro forma Financial Information (Detail) - Grass Technologies [Member] $ in Thousands	12 Months Ended
	Dec. 31, 2013USD ($)
Business Acquisition [Line Items]
Revenue	$ 345,117
Income from operations	$ 35,369

Inventories (Detail)

Inventories (Detail) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Inventory Disclosure [Abstract]
Raw materials and subassemblies	$ 19,041	$ 19,821
Work in process	1,343	1,808
Finished goods	36,149	26,037
Total Inventories	56,533	47,666
Less: Non-current Inventories	(7,961)	(7,615)
Inventories	$ 48,572	$ 40,051

Inventories (Textual) (Detail)

Inventories (Textual) (Detail) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Inventory Disclosure [Abstract]
Non-current Inventories	$ 7,961	$ 7,615

Property and Equipment (Detail)

Property and Equipment (Detail) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Property and Equipment, Gross	$ 46,495	$ 44,627
Accumulated depreciation	(29,528)	(26,704)
Total	16,967	17,923
Land [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Gross	2,918	3,092
Buildings [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Gross	5,662	6,828
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Gross	2,345	2,118
Office furniture and equipment [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Gross	13,866	12,945
Computer software and hardware [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Gross	10,488	8,715
Demonstration and loaned equipment [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Gross	$ 11,216	$ 10,929

Property and Equipment (Textual

Property and Equipment (Textual) (Detail) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Property, Plant and Equipment, Net [Abstract]
Depreciation expense		$ 4.2	$ 4.3	$ 4.7
Asset held for sale, impairment	$ 2.2

Goodwill (Detail)

Goodwill (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Goodwill [Roll Forward]
Beginning Balance	$ 96,316	$ 97,238
Acquisitions/Purchase Accounting Adjustments	13,547	4,002
Foreign currency translation	(2,397)	(4,924)
Ending Balance	$ 107,466	$ 96,316

Intangible Assets (Textual) (De

Intangible Assets (Textual) (Detail) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Acquired Finite-Lived Intangible Assets [Line Items]
Costs incurred for development of internal use computer software	$ 13,300
Costs incurred for development of software to be sold	2,200
Impairment of certain indefinite live intangible assets	$ 0	$ 598	$ 1,500
Technology [Member] | Minimum [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted average life of intangible assets	5 years
Technology [Member] | Maximum [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted average life of intangible assets	10 years
Customer related [Member] | Minimum [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted average life of intangible assets	4 years
Customer related [Member] | Maximum [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted average life of intangible assets	16 years
Internally developed software [Member] | Minimum [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted average life of intangible assets	4 years
Internally developed software [Member] | Maximum [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted average life of intangible assets	10 years
Patents [Member] | Minimum [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted average life of intangible assets	10 years
Patents [Member] | Maximum [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted average life of intangible assets	15 years
Trade names [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Weighted average life of intangible assets	7 years
Trade names [Member] | Amortization Expense [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Effect of on pre-tax income	$ 3,000
Effect on net income	$ 2,100
Effect on diluted earnings per share (in dollars per share)	$ 0.06
Grass Technologies [Member] | Trade names [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Impairment of certain indefinite live intangible assets		$ 600

Intangible Assets - Components

Intangible Assets - Components of Gross and Net Intangible Asset Balances (Detail) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 149,927	$ 113,187
Impairment of Intangible Assets Defined Lived (excluding Goodwill)	(3,340)	0
Accumulated Amortization	(60,051)	(49,365)
Total expected amortization expense	86,536	63,822
Intangible Assets, Gross (Excluding Goodwill)	149,927	145,630
Accumulated Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)		(3,504)
Intangible Assets, Net (Excluding Goodwill)	86,536	92,761
Indefinite-lived Trade Names [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Indefinite-Lived Intangible Assets (Excluding Goodwill), Gross		32,443
Indefinite-Lived Intangible Assets (Excluding Goodwill)		28,939
Accumulated Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)		(3,504)
Technology [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	63,668	64,376
Accumulated Amortization	(31,600)	(28,195)
Total expected amortization expense	32,068	36,181
Customer related [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	35,529	31,189
Accumulated Amortization	(14,352)	(11,786)
Total expected amortization expense	21,177	19,403
Trade Names [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	31,837	0
Impairment of Intangible Assets Defined Lived (excluding Goodwill)	(3,340)	0
Accumulated Amortization	(3,052)	0
Total expected amortization expense	25,445	0
Internally Developed Software [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	15,513	14,109
Accumulated Amortization	(8,155)	(6,511)
Total expected amortization expense	7,358	7,598
Patents [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	2,663	2,794
Accumulated Amortization	(2,175)	(2,154)
Total expected amortization expense	488	640
Backlog [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	717	719
Accumulated Amortization	(717)	(719)
Total expected amortization expense	$ 0	$ 0

Intangible Assets - Amortizatio

Intangible Assets - Amortization Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Finite-Lived Intangible Assets [Line Items]
Total amortization	$ 11,745	$ 7,432	$ 8,154
Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Total amortization	3,916	3,993	4,355
Customer related [Member]
Finite-Lived Intangible Assets [Line Items]
Total amortization	2,938	1,892	2,644
Trade names [Member]
Finite-Lived Intangible Assets [Line Items]
Total amortization	3,159	0	0
Internally Developed Software [Member]
Finite-Lived Intangible Assets [Line Items]
Total amortization	1,620	1,434	1,034
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Total amortization	$ 112	$ 113	$ 121

Intangible Assets - Expected An

Intangible Assets - Expected Annual Amortization Expense (Detail) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2,016	$ 12,501
2,017	12,203
2,018	11,980
2,019	10,860
2,020	8,766
Thereafter	30,226
Total expected amortization expense	$ 86,536	$ 63,822

Accrued Liabilities (Detail)

Accrued Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Payables and Accruals [Abstract]
Compensation and related benefits	$ 16,752	$ 16,075
Accrued federal, state, and local taxes	4,707	9,213
Warranty reserve	10,386	2,753
Accrued professional fees	520	1,027
Contingent consideration	6,209	812
Other	3,563	6,144
Total	$ 42,137	$ 36,024

Long-Term Other Liabilities (De

Long-Term Other Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Other Liabilities Disclosure [Abstract]
Contingent tax obligations	$ 6,376	$ 3,299
Non-current deferred revenue	1,401	1,537
Other	4	23
Total	$ 7,781	$ 4,859

Reserve for Product Warrantie60

Reserve for Product Warranties (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Product Warranties Disclosures [Abstract]
Product warranty period	1 year
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
Balance at Beginning of Period	$ 2,753	$ 3,143	$ 2,260
Assumed Through Acquisitions	0	0	191
Additions Charged to Expense	10,729	2,306	1,938
Reductions	(3,096)	(2,696)	(1,246)
Balance at End of Period	10,386	$ 2,753	$ 3,143
Certain NeoBLUE Phototherapy Products [Member]
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
Balance at End of Period	$ 6,600

Stockholders' Equity (Detail)

Stockholders' Equity (Detail) - $ / shares	Dec. 31, 2015	Dec. 31, 2014
Equity [Abstract]
Common Stock, shares authorized	120,000,000	120,000,000
Common stock, par value	$ 0.001	$ 0.001
Preferred stock authorized	10,000,000	10,000,000
Preferred stock authorized Par value	$ 0.001	$ 0.001
Preferred stock issued	0	0
Preferred stock outstanding	0	0

Earnings Per Share Components o

Earnings Per Share Components of Basic and Diluted EPS (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Earnings Per Share [Abstract]
Net income	$ 37,924	$ 32,478	$ 23,147
Weighted average common shares	32,348	31,499	29,993
Dilutive effect of stock based awards	893	1,069	828
Diluted Shares (in dollars per share)	33,241	32,568	30,821
Basic earnings per share (in dollars per share)	$ 1.17	$ 1.03	$ 0.77
Diluted earnings per share (in dollars per share)	$ 1.14	$ 1	$ 0.75
Shares excluded from calculations of diluted EPS	0	239	1,413

Share-Based Compensation - Allo

Share-Based Compensation - Allocation (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total expense	$ 6,953	$ 6,062	$ 5,919
Cost of revenue [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total expense	156	143	120
Marketing and sales [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total expense	808	977	816
Research and development [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total expense	1,264	664	527
General and administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total expense	$ 4,725	$ 4,278	$ 4,456

Share-Based Compensation (Textu

Share-Based Compensation (Textual) (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for future awards	1,297,008
Unrecognized compensation expense related to unvested portion of stock options	$ 1,300,000
Weighted average period of recognition of unrecognized compensation expense	1 year 6 months
Intrinsic value of options exercised	$ 17,700,000	$ 20,600,000	$ 9,900,000
Weighted average vested options	1,071,852
Weighted average exercise price of vested stock	$ 14.99
Intrinsic value of options vested and expected to vest	$ 35,400,000
Weighted average remaining contractual term	2 years 9 months 12 days
Weighted average shares exercisable	737,032	1,051,616	1,843,779
Weighted average exercise price (in dollars per share)	$ 14.40	$ 14.13	$ 12.68
Intrinsic value of options exercisable	$ 24,800,000
Weighted average remaining contractual term, exercisable	2 years 7 months 6 days
Compensation expense associated with the ESPP	$ 221,000	$ 198,000	$ 159,000
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation, expiration period	6 years
Share based compensation, vesting period	4 years
Restricted Stock Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period of recognition of unrecognized compensation expense	2 years 2 months 12 days
Unrecognized compensation of unvested awards	$ 6,100,000
Fair market value of outstanding awards	$ 25,900,000
Weighted average remaining recognition period for unvested restricted stock	1 year 10 months 18 days
Restricted Stock Units And Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total intrinsic value	$ 11,200,000	$ 6,400,000	$ 3,200,000
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee maximum withholding rate (percent)	15.00%
Eligible compensation of employees	$ 10,625
Purchase price for shares acquired	85.00%
Shares reserved for future issuance	211,255
Offering price, percentage of fair market value	85.00%
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period of recognition of unrecognized compensation expense	1 year 7 months 6 days
Unrecognized compensation of unvested awards	$ 473,000
Weighted average remaining recognition period for unvested restricted stock	1 year 4 months 12 days
Aggregate intrinsic value of outstanding restricted stock units	$ 2,000,000

Share-Based Compensation - Stoc

Share-Based Compensation - Stock Option Activity (Detail) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Number of Shares
Outstanding, beginning of period, shares	1,756,602	2,789,723
Granted, Shares	0	244,500
Exercised, Shares	(631,663)	(1,242,679)
Cancelled, Shares	(19,757)	(34,942)
Outstanding, end of period, Shares	1,105,182	1,756,602	2,789,723
Weighted Average Exercise Price
Outstanding, beginning of period (in dollars per share)	$ 14.74	$ 12.90
Granted (in dollars per share)	0	22.60
Exercised (in dollars per share)	14.26	12.14
Cancelled (in dollars per share)	11.99	15.29
Outstanding, end of period (in dollars per share)	$ 15.07	$ 14.74	$ 12.90
Number Exercisable (shares)	737,032	1,051,616	1,843,779
Weighted Average Exercise Price (in dollars per share)	$ 14.40	$ 14.13	$ 12.68

Share-Based Compensation - Blac

Share-Based Compensation - Black-Scholes Option Assumption (Detail) - $ / shares	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Black-Scholes Inputs
Weighted-average fair value of options granted	$ 7.25	$ 4.24
Expected life in years	4 years	4 years 1 month 6 days
Risk-free interest rate	1.40%	1.20%
Expected volatility	39.00%	37.00%
Dividend yield	0.00%	0.00%

Share-Based Compensation - Rest

Share-Based Compensation - Restricted Stock Award Activity (Detail) - Restricted Stock Awards [Member] - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Shares
Unvested, beginning of period, Shares	583,384	625,330
Granted, Shares	211,080	197,850
Vested, Shares	(244,896)	(223,811)
Forfeited, Shares	(14,360)	(15,985)
Unvested, end of period, Shares	535,208	583,384
Weighted Average Grant Date Fair Value
Unvested, beginning of period, Weighted - average grant date fair value	$ 16.50	$ 13.28
Granted, Weighted - average grant date fair value	16.52	22.68
Vested, Weighted - average grant date fair value	36.38	13.03
Forfeited, Weighted - average grant date fair value	15.19	14.73
Unvested, end of period, Weighted - average grant date fair value	$ 17.42	$ 16.50

Share-Based Compensation - Re68

Share-Based Compensation - Restricted Unit Activity (Detail) - Restricted Stock Units [Member] - shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Shares
Unvested, beginning of period, Shares	52,325	47,391
Awarded, units	15,530	20,600
Release, units	(21,619)	(13,121)
Forfeited, units	(753)	(2,545)
Unvested, end of period, Shares	45,483	52,325

Restructuring Reserves (Detail)

Restructuring Reserves (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Restructuring Reserve [Roll Forward]
Beginning balance	$ 368	$ 335	$ 2,745
Restructuring	2,145	4,238	4,767
Additions	2,061	1,889	6,085
Reversals	(124)	(52)	(1,357)
Payments	(629)	(1,804)	(7,138)
Ending balance	1,676	368	335
Personnel Related [Member]
Restructuring Reserve [Roll Forward]
Beginning balance	368	335	2,745
Additions	1,905	1,209	4,218
Reversals	(124)	(52)	(1,357)
Payments	(473)	(1,124)	(5,271)
Ending balance	1,676	368	335
Facility Closing [Member]
Restructuring Reserve [Roll Forward]
Beginning balance	0	0	0
Restructuring	156	680	504
Reversals	0	0	0
Payments	(156)	(680)	(504)
Ending balance	$ 0	0	0
Other Restructuring [Member]
Restructuring Reserve [Roll Forward]
Beginning balance		0	0
Restructuring		0	1,363
Reversals			0
Payments		$ 0	(1,363)
Ending balance			$ 0

Other Income (Expense), net (De

Other Income (Expense), net (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Other expense, net
Interest income	$ 27	$ 119	$ 32
Interest expense	(352)	(438)	(1,675)
Foreign currency loss	(1,415)	(37)	(1,412)
Other	676	514	339
Total other income (expense), net	$ (1,064)	$ 158	$ (2,716)

Income Taxes - Income Loss befo

Income Taxes - Income Loss before Provision (Benefit) for Income Tax (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
U.S.	$ 20,507	$ 16,621	$ 13,200
Foreign	31,902	29,388	18,744
Income before provision for income tax	$ 52,409	$ 46,009	$ 31,944

Income Taxes (Detail)

Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Current
U.S. Federal	$ 13,497	$ 6,514	$ 5,338
U.S. State and local	1,984	1,082	723
Non-U.S.	2,239	6,874	1,708
Total current tax expense	17,720	14,470	7,769
Deferred
U.S. Federal	(3,410)	(728)	(1,042)
U.S. State and local	(385)	(37)	(85)
Non-U.S.	560	(174)	2,155
Total deferred tax expense (benefit)	(3,235)	(939)	1,028
Total expense	$ 14,485	$ 13,531	$ 8,797

Income Taxes - Components of De

Income Taxes - Components of Deferred Tax Asset and Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Deferred tax assets:
Net operating loss carryforwards	$ 5,174	$ 4,153
Credit carryforwards	2,078	2,191
Accruals deductible in different periods	18,721	15,666
Employee benefits	2,081	2,864
Total deferred tax assets	28,054	24,874
Valuation allowance	(3,972)	(3,151)
Total net deferred tax assets	24,082	21,723
Deferred tax liabilities:
Basis difference in fixed and intangible assets	(15,197)	(17,169)
Total deferred tax liabilities	(15,197)	(17,169)
Total net deferred tax assets	$ 8,885	$ 4,554

Income Taxes (Textual) (Detail)

Income Taxes (Textual) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Schedule Of Income Taxes [Line Items]
Effective tax rate	35.00%	35.00%	35.00%
Valuation allowances	$ 3,972	$ 3,151
Increase in valuation allowance	800
Tax benefit of options exercises	7,400
Addition to paid-in capital related to the cancellation of stock windfall pool	263
Undistributed earnings	81,300
Cash and short term investments	82,500
Decrease in unrecognized tax benefits	2,900
Lapse of statutes of limitations	664	558	$ 918
Increase in tax position related to prior year	281	493	1,376
Increases for tax positions related to the current year	3,302	73	213
Unrecognized Tax Benefits	6,314	3,395	3,387	$ 2,716
Unrecognized tax would impact effective tax rate	2,400	2,000	2,200
Interest and penalties related to uncertain tax positions	397	288	300
Total Interest and penalties related to uncertain tax positions	109	$ (12)	$ (8)
Income Tax Provision [Member]
Schedule Of Income Taxes [Line Items]
Lapse of statutes of limitations	509
Minimum [Member]
Schedule Of Income Taxes [Line Items]
Lapse of statutes of limitations	0
Maximum [Member]
Schedule Of Income Taxes [Line Items]
Lapse of statutes of limitations	460
Foreign Subsidiaries [Member]
Schedule Of Income Taxes [Line Items]
Cash and short term investments	60,200
France [Member]
Schedule Of Income Taxes [Line Items]
Tax net operating loss carryforwards	2,000
Germany [Member]
Schedule Of Income Taxes [Line Items]
Tax net operating loss carryforwards	393
Canada [Member]
Schedule Of Income Taxes [Line Items]
Tax net operating loss carryforwards	654
Denmark [Member]
Schedule Of Income Taxes [Line Items]
Tax net operating loss carryforwards	1,400
United Kingdom [Member]
Schedule Of Income Taxes [Line Items]
Tax net operating loss carryforwards	753
Significant foreign jurisdictions [Member]
Schedule Of Income Taxes [Line Items]
Tax credits carryforwards	$ 1,700

Income Taxes - Reconciliation o

Income Taxes - Reconciliation of Income tax Expense from Continuous Operation (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Federal statutory tax expense	$ 18,343	$ 16,103	$ 11,180
State tax expense	1,249	892	352
Foreign taxes at rates less than U.S. rates	(5,129)	(3,097)	(1,496)
Stock compensation expense on incentive stock options	204	93	49
Tax credits	(935)	(862)	(834)
Uncertain tax position	1,388	1,163	1,029
Lapse of statute	(784)	(652)	(918)
Change of valuation allowance on foreign tax credit	0	(491)	0
Other	149	382	(565)
Total expense	$ 14,485	$ 13,531	$ 8,797

Income Taxes - Unrecognized Tax

Income Taxes - Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Beginning-Unrecognized Tax Benefits	$ 3,395	$ 3,387	$ 2,716
Increases for tax positions related to prior years	281	493	1,376
Increases for tax positions related to the current year	3,302	73	213
Lapse of statutes of limitations	(664)	(558)	(918)
Ending-Unrecognized Tax Benefits	$ 6,314	$ 3,395	$ 3,387

Employee Benefit Plan (Detail)

Employee Benefit Plan (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract]
Employer matching contributions	$ 1.3	$ 1.2	$ 1.3

Segment, Customer and Geograp78

Segment, Customer and Geographic Information (Textual) (Detail) - Segment	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Segment Reporting Information [Line Items]
Number of reporting segments	1
Revenue [Member]
Segment Reporting Information [Line Items]
Percentage of revenue represented by major customers	10.00%	10.00%	10.00%
Revenue from Services [Member]
Segment Reporting Information [Line Items]
Percentage of revenue represented by major customers	10.00%	10.00%	10.00%

Segment, Customer and Geograp79

Segment, Customer and Geographic Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Segment Reporting Information [Line Items]
Revenue	$ 375,865	$ 355,834	$ 344,112
Long-lived assets	16,967	17,923
Neurology Products [Member]
Segment Reporting Information [Line Items]
Revenue	237,301	232,672	$ 223,672
Neurology Products [Member] | Devices and Systems [Member]
Segment Reporting Information [Line Items]
Revenue	168,776	173,006	162,607
Neurology Products [Member] | Supplies [Member]
Segment Reporting Information [Line Items]
Revenue	60,205	59,666	61,065
Neurology Products [Member] | Services [Member]
Segment Reporting Information [Line Items]
Revenue	8,320	0	0
Newborn Care Products [Member]
Segment Reporting Information [Line Items]
Revenue	138,564	123,162	120,440
Newborn Care Products [Member] | Devices and Systems [Member]
Segment Reporting Information [Line Items]
Revenue	72,669	67,354	68,588
Newborn Care Products [Member] | Supplies [Member]
Segment Reporting Information [Line Items]
Revenue	49,982	48,697	47,033
Newborn Care Products [Member] | Services [Member]
Segment Reporting Information [Line Items]
Revenue	15,913	7,111	4,819
United States [Member]
Segment Reporting Information [Line Items]
Revenue	242,050	215,543	$ 199,591
Long-lived assets	6,664	5,782
Foreign countries [Member]
Segment Reporting Information [Line Items]
Revenue	133,815	140,291	$ 144,521
Canada [Member]
Segment Reporting Information [Line Items]
Long-lived assets	5,165	5,538
Ireland [Member]
Segment Reporting Information [Line Items]
Long-lived assets	1,651	1,656
Argentina [Member]
Segment Reporting Information [Line Items]
Long-lived assets	2,361	3,692
Other Foreign countries [Member]
Segment Reporting Information [Line Items]
Long-lived assets	$ 1,126	$ 1,255

Debt and Credit Arrangements (T

Debt and Credit Arrangements (Textual) (Detail) - Revolving credit facility [Member] - Line of Credit [Member] $ in Thousands	Dec. 31, 2015USD ($)
Debt Instrument [Line Items]
Revolving credit facility with Wells Fargo Bank	$ 25,000
Available amount under credit facility	$ 0

Commitments and Contingencies -

Commitments and Contingencies - Minimum Lease Payment under Non Cancelable Operating Lease (Detail) $ in Thousands	Dec. 31, 2015USD ($)
Commitments and Contingencies Disclosure [Abstract]
2,016	$ 3,909
2,017	3,590
2,018	2,865
2,019	2,798
2,020	2,465
Thereafter	4,979
Total minimum lease payments	$ 20,606

Commitment and Contingencies (T

Commitment and Contingencies (Textual) (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Commitments and Contingencies Disclosure [Abstract]
Rent expense	$ 4.4	$ 4.3	$ 3.9
Purchase commitments for inventory, total	$ 40.3

Fair Value Measurements (Textua

Fair Value Measurements (Textual) (Detail) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Jun. 30, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of asset		$ 2,200
Impairment of certain indefinite live intangible assets			$ 0	$ 598	$ 1,500
Trademarks and trade names [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of certain indefinite live intangible assets				$ 600	$ 1,500
Mundelein Facility [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Book value of asset						$ 3,600
Impairment of asset	$ 2,200
Asset held-for-sale at fair value			$ 1,400

Fair Value Measurements (Detail

Fair Value Measurements (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Contingent consideration, beginning balance	$ 812
Additions	6,209
Payments	(664)
Adjustments	(148)
Contingent consideration, ending balance	6,209
Contingent Consideration [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Additions	6,209
Contingent consideration, ending balance	$ 6,209

Schedule II_ Valuation And Qu85

Schedule II: Valuation And Qualifying Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Period	$ 3,151	$ 5,043	$ 4,339
Additions Charged to Expense	821	0	704
Deductions	0	(1,892)	0
Balance at End of Period	3,972	3,151	5,043
Allowance for Doubtful Accounts [Member]
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Period	4,324	2,962	2,617
Additions Charged to Expense	1,496	1,221	277
Deductions	(1,134)	141	68
Balance at End of Period	$ 4,686	$ 4,324	$ 2,962