Orthofix Medical (OFIX) 10-Q 4 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Jul. 31, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Trading Symbol	OFIX
Entity Registrant Name	ORTHOFIX INTERNATIONAL N V
Entity Central Index Key	884,624
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		18,850,550

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 55,946	$ 36,815
Restricted cash		34,424
Trade accounts receivable, less allowance for doubtful accounts of $7,153 and $7,285 at June 30, 2015 and December 31, 2014, respectively	58,356	61,358
Inventories	59,219	59,846
Deferred income taxes	36,970	37,413
Prepaid expenses and other current assets	24,723	26,552
Total current assets	235,214	256,408
Property, plant and equipment, net	49,963	48,549
Patents and other intangible assets, net	5,626	7,152
Goodwill	53,565	53,565
Deferred income taxes	17,910	18,541
Other long-term assets	26,876	8,970
Total assets	389,154	393,185
Current liabilities:
Trade accounts payable	17,230	13,223
Other current liabilities	47,678	53,220
Total current liabilities	64,908	66,443
Deferred income taxes		229
Other long-term liabilities	26,569	26,886
Total liabilities	$ 91,477	$ 93,558
Contingencies (Note 12)
Shareholders’ equity:
Common shares $0.10 par value; 50,000,000 shares authorized; 18,839,335 and 18,611,495 issued and outstanding as of June 30, 2015 and December 31, 2014, respectively	$ 1,884	$ 1,861
Additional paid-in capital	237,987	232,788
Retained earnings	60,553	65,360
Accumulated other comprehensive loss	(2,747)	(382)
Total shareholders’ equity	297,677	299,627
Total liabilities and shareholders’ equity	$ 389,154	$ 393,185

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Statement Of Financial Position [Abstract]
Trade accounts receivable, allowance for doubtful accounts	$ 7,153	$ 7,285
Common shares, par value	$ 0.10	$ 0.10
Common shares, authorized	50,000,000	50,000,000
Common shares, issued	18,839,335	18,611,495
Common shares, outstanding	18,839,335	18,611,495

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Statement [Abstract]
Product sales	$ 86,868	$ 88,579	$ 163,700	$ 176,879
Marketing service fees	14,086	12,406	27,016	24,120
Net sales	100,954	100,985	190,716	200,999
Cost of sales	21,910	25,414	41,249	52,187
Gross profit	79,044	75,571	149,467	148,812
Operating expenses
Sales and marketing	42,946	42,013	87,231	83,184
General and administrative	22,506	18,214	44,075	36,074
Research and development	6,451	6,313	12,296	12,246
Restatements and related costs	2,213	2,327	8,129	10,633
Total operating expenses	74,116	68,867	151,731	142,137
Operating income (loss)	4,928	6,704	(2,264)	6,675
Other income and expense
Interest income (expense), net	74	(492)	(198)	(960)
Other income	853	363	1,544	91
Total other income (expense)	927	(129)	1,346	(869)
Income before income taxes	5,855	6,575	(918)	5,806
Income tax expense	(1,778)	(3,309)	(2,742)	(4,488)
Net income (loss) from continuing operations	4,077	3,266	(3,660)	1,318
Discontinued operations
Loss from discontinued operations	(730)	(5,829)	(1,511)	(6,623)
Income tax benefit	225	1,880	364	2,114
Net loss from discontinued operations	(505)	(3,949)	(1,147)	(4,509)
Net income (loss)	$ 3,572	$ (683)	$ (4,807)	$ (3,191)
Net income (loss) per common share—basic:
Net income (loss) from continuing operations	$ 0.22	$ 0.18	$ (0.20)	$ 0.07
Net loss from discontinued operations	(0.03)	(0.22)	(0.06)	(0.24)
Net income (loss) per common share—basic:	0.19	(0.04)	(0.26)	(0.17)
Net income (loss) per common share—diluted:
Net income (loss) from continuing operations	0.21	0.18	(0.20)	0.07
Net loss from discontinued operations	(0.02)	(0.22)	(0.06)	(0.24)
Net income (loss) per common share—diluted:	$ 0.19	$ (0.04)	$ (0.26)	$ (0.17)
Weighted average number of common shares:
Basic	18,769,415	18,445,348	18,750,804	18,322,185
Diluted	18,989,579	18,621,192	18,750,804	18,435,128
Other comprehensive income (loss):
Unrealized gain (loss) on derivative instruments, net of tax	$ 271	$ (31)	$ 936	$ 72
Foreign currency translation adjustment	1,559	198	(3,301)	574
Comprehensive income (loss)	$ 5,402	$ (516)	$ (7,172)	$ (2,545)

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net cash provided by operating activities	$ 8,954	$ 17,874
Cash flows from investing activities:
Capital expenditures for property, plant and equipment	(13,493)	(6,138)
Capital expenditures for intangible assets	(83)	(119)
Net proceeds from sale of assets	4,800
Purchase of debt securities	(15,250)
Net proceeds from sale of other investments		32
Net cash used in investing activities	(24,026)	(6,225)
Cash flows from financing activities:
Net proceeds from issuance of common shares	1,646	9,520
Changes in restricted cash	34,424	(21,406)
Excess income tax benefit on employee stock-based awards	54	40
Net cash provided by (used in) financing activities	36,124	(11,846)
Effect of exchange rate changes on cash	(1,921)	192
Net increase (decrease) in cash and cash equivalents	19,131	(5)
Cash and cash equivalents at the beginning of the period	36,815	28,924
Cash and cash equivalents at the end of the period	$ 55,946	$ 28,919

Nature of operations, basis of

Nature of operations, basis of presentation and recently issues accounting pronouncements	6 Months Ended
	Jun. 30, 2015
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Abstract]
Nature of operations, basis of presentation and recently issues accounting pronouncements	1. Nature of operations, basis of presentation and recently issues accounting pronouncements Nature of operations Orthofix International N.V. (together with its subsidiaries, the “Company”) is a diversified, global medical device company focused on developing and delivering innovative repair and regenerative technologies to the spine and orthopedic markets. The Company is comprised of four reportable segments: BioStim, Biologics, Extremity Fixation and Spine Fixation supported by corporate activities. Basis of presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Pursuant to these rules and regulations, certain information and note disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. In the opinion of management, all adjustments (consisting of normal recurring items) considered necessary for a fair statement have been included. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. On an ongoing basis, the Company evaluates its estimates including those related to contractual allowances, doubtful accounts, inventories, potential goodwill and intangible asset impairment, litigation and contingent liabilities, income taxes, and shared-based compensation. Actual results could differ from these estimates. As permitted under U.S. GAAP, interim accounting for certain expenses, including income taxes, are based on full year forecasts. For interim financial reporting purposes, income taxes are recorded based upon estimated annual effective income tax rates taking into consideration discrete items occurring during the period. Recently issued accounting standards In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-08, Reporting Discontinued Operations and Disclosures of Components of an Entity. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory

Cash Flow Statement Classificat

Cash Flow Statement Classification Error	6 Months Ended
	Jun. 30, 2015
Accounting Changes And Error Corrections [Abstract]
Cash Flow Statement Classification Error	2. Cash Flow Statement Classification Error During the quarter ended June 30, 2015, the Company identified a classification error in its statement of cash flows for the quarter ended March 31, 2015. This error arose because foreign currency exchange rates and cash balances from an incorrect period were used in calculating the line item “Effect of exchange rate changes on cash,” which caused the negative effect of such line item to be overstated by $2.4 million. This error resulted in an equal and offsetting error to be reflected in the line item “Net cash provided by operating activities,” whereby such line item was overstated by $2.4 million. This classification error has been corrected in the statement of cash flows for the six months ended June 30, 2015 contained herein. The Company also intends to correct the comparative presentation of the quarter ended March 31, 2015 in its Quarterly Report on Form 10-Q for the quarter ending March 31, 2016.

Inventories

Inventories	6 Months Ended
	Jun. 30, 2015
Inventory Disclosure [Abstract]
Inventories	3. Inventories The Company’s inventories are primarily stated at standard cost, which approximates actual cost determined on a first-in, first-out basis. Work-in-process and finished products include material, labor and production overhead costs. Finished products include field inventory which represents immediately saleable finished products that are in the possession of the Company’s direct sales representatives, and consignment inventory which represents immediately saleable finished products located at third party customers, such as distributors and hospitals. Deferred cost of sales result from transactions where the Company has shipped product or performed services for which all revenue recognition criteria have not been met. Once the revenue recognition criteria have been met, both the revenues and associated cost of sales are recognized. Inventories were as follows: (U.S. Dollars, in thousands) June 30, 2015 December 31, 2014 Raw materials $ 4,200 $ 3,879 Work-in-process 5,071 4,830 Finished products 44,309 45,612 Deferred cost of sales 5,639 5,525 Total inventory $ 59,219 $ 59,846

Long-term debt

Long-term debt	6 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
Long-term debt	4. Long-term debt On August 30, 2010, the Company’s wholly-owned U.S. holding company, Orthofix Holdings, Inc. (“Orthofix Holdings”) entered into a Credit Agreement (the “Credit Agreement”) with certain domestic direct and indirect subsidiaries of the Company (the “Guarantors”), JPMorgan Chase Bank, N.A., as Administrative Agent, RBS Citizens, N.A., as Syndication Agent, and certain lender parties thereto. The Credit Agreement initially provided for a five year, $200 million secured revolving credit facility (the “Revolving Credit Facility”), and a five year, $100 million secured term loan facility (the “Term Loan Facility,” and together with the Revolving Credit Facility, the “Credit Facilities”). On January 15, 2015, at the Company’s request, the lenders agreed to reduce the available capacity under the Revolving Credit Facility to $100 million. As of June 30, 2015, and December 31, 2014, there was no outstanding principal under either the Term Loan Facility or the Revolving Credit Facility. Any outstanding balance on the Revolving Credit Facility arising in the event that we draw funds in the future under such facility would be due on August 30, 2015. The Company is currently in negotiations to renew its revolving credit facility and expects to have this completed before the expiration of its current facility. The amount of net assets of Orthofix Holdings and its subsidiaries that we classify as “restricted” (due to restrictions on the use of such assets pursuant to the terms of the agreement) as of June 30, 2015, and December 31, 2014, is $187.8 million and $181.8 million, respectively. In addition, the Credit Agreement contains restrictions on the Company and subsidiaries that are not parties to the Credit Facilities accessing cash held by Orthofix Holdings, Inc. and its subsidiaries (by way of dividend or otherwise). All of the Company’s subsidiaries that are parties to the Credit Agreement generally have access to this cash for operational and debt repayment purposes. As the Company does not carry a balance on the Revolving Credit Facility as of June 30, 2015, and is in compliance with all required covenants, there are no restrictions on cash as of June 30, 2015. The amount of cash of the Company and its subsidiaries that we classify as “restricted” due to these restrictions as of December 31, 2014 was $34.4 million. The Company had no borrowings and an unused available line of credit of €5.8 million ($6.5 million and $7.0 million) at June 30, 2015 and December 31, 2014, respectively, on its Italian line of credit. This unsecured line of credit provides the Company the option to borrow amounts in Italy at rates which are determined at the time of borrowing.

Derivative instruments

Derivative instruments	6 Months Ended
	Jun. 30, 2015
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Derivative instruments	5. Derivative instruments The tables below disclose the types of derivative instruments the Company owns, the classifications and fair values of these instruments within the balance sheet, and the amount of gain (loss) recognized in other comprehensive income (loss). (U.S. Dollars, in thousands) As of June 30, 2015 Fair f (unfavorable) Balance sheet location Cross-currency swap $ 5,807 Other long-term assets Warrants $ 311 Other long-term assets As of December 31, 2014 Cross-currency swap $ 2,504 Other long-term assets Warrants $ 321 Other long-term assets Three Months Ended June 30, Six Months Ended June 30, (U.S. Dollars, in thousands) 2015 2014 2015 2014 Cross-currency swap unrealized gain (loss) recorded in other comprehensive income (loss), net of taxes $ 267 $ (31 ) $ 936 $ 72 Warrants unrealized gain recorded in other comprehensive income (loss), net of taxes $ 4 $ — $ — $ —

Fair value measurements

Fair value measurements	6 Months Ended
	Jun. 30, 2015
Fair Value Disclosures [Abstract]
Fair value measurements	6. Fair value measurements The fair value of the Company’s financial assets and liabilities on a recurring basis were as follows: (U.S. Dollars, in thousands) Balance June 30, 2015 Level 1 Level 2 Level 3 Assets Collective trust funds $ 1,664 $ — $ 1,664 $ — Treasury securities 532 532 — — Certificates of deposit 1,129 1,129 — — Derivative securities 6,118 — 6,118 — Equity securities 1,457 — 1,457 — Debt securities 15,390 — — 15,390 Total $ 26,290 $ 1,661 $ 9,239 $ 15,390 Liabilities Deferred compensation plan $ (1,553 ) $ — $ (1,553 ) $ — Total $ (1,553 ) $ — $ (1,553 ) $ — (U.S. Dollars, in thousands) Balance December 31, 2014 Level 1 Level 2 Level 3 Assets Collective trust funds $ 1,696 $ — $ 1,696 $ — Treasury securities 586 586 — — Certificates of deposit 1,510 1,510 — — Derivative securities 2,825 — 2,825 — Equity securities 1,457 — 1,457 — Total $ 8,074 $ 2,096 $ 5,978 $ — Liabilities Deferred compensation plan $ (1,886 ) $ — $ (1,886 ) $ — Total $ (1,886 ) $ — $ (1,886 ) $ — Debt Securities On March 2015, Company Option Agreement (the “Option Agreement”) with eNeura, Inc. (“eNeura”), privately technology company devices treatment migraines. The Option Agreement provides the Company an exclusive acquire eNeura (the “Option”) during 18-month following grant the Option. consideration for the Option, (i) Company non-refundable $0.3 million fee eNeura, and eNeura issued Convertible Promissory Note “eNeura Note”) Company. The principal of the eNeura Note $15.0 million interest accrues at The eNeura Note will mature earlier (i) March 4, exercise of the Option. The investment is recorded in other long-term assets as an available for sale debt security and interest is recorded in interest income. The fair value of the instrument is based upon significant unobservable inputs, requiring the Company to develop its own assumptions; therefore, the Company has categorized this asset as a Level 3 financial asset. Given the date of the transaction, as of June 30, 2015, the Company believes the carrying amount of the investment and accrued interest approximate fair value. The following table provides a reconciliation of the beginning and ending balances for debt securities measured at fair value using significant unobservable inputs (Level 3): (U.S. Dollars, in thousands) 2015 Balance at January 1 $ — Additions to debt securities 15,000 Accrued interest income 390 Balance at June 30 $ 15,390

Accumulated other comprehensive

Accumulated other comprehensive loss	6 Months Ended
	Jun. 30, 2015
Equity [Abstract]
Accumulated other comprehensive loss	7. Accumulated other comprehensive loss Accumulated other comprehensive loss is comprised of foreign currency translation adjustments, the effective portion of the gain (loss) on the Company’s cross-currency swap, which is designated and accounted for as a cash flow hedge and the unrealized gain (loss) on warrants. The components of and changes in accumulated other comprehensive loss were as follows: (U.S. Dollars, in thousands) Foreign Currency Translation Adjustments Change in Fair Value Accumulated Other Comprehensive Loss Balance at December 31, 2014 $ (482 ) $ 100 $ (382 ) Unrealized gain on derivative instruments, net of tax of $529 — 936 936 Foreign currency translation adjustment (1) (3,301 ) — (3,301 ) Balance at June 30, 2015 $ (3,783 ) $ 1,036 $ (2,747 ) (1) As the unremitted earnings generally remain indefinitely reinvested in the non U.S. dollar denominated foreign subsidiaries, no deferred taxes are recognized on the related foreign currency translation adjustment.

Earnings per share

Earnings per share	6 Months Ended
	Jun. 30, 2015
Earnings Per Share [Abstract]
Earnings per share	8. Earnings per share For the three and six months ended June 30, 2015 and 2014, there were no adjustments to net income (loss) for purposes of calculating basic and diluted net income (loss) available to common shareholders. The following is a reconciliation of the weighted average shares used in the basic and diluted net loss per common share computations. Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Weighted average common shares-basic 18,769,415 18,445,348 18,750,804 18,322,185 Effect of dilutive securities: Unexercised stock options net of treasury share repurchase 220,164 175,844 — 112,943 Weighted average common shares-diluted 18,989,579 18,621,192 18,750,804 18,435,128 Performance-based restricted stock awards and options to purchase shares of common stock with exercise prices in excess of the average market price of common shares are not included in the computation of diluted earnings per share. There were 792,149 and 872,039 outstanding awards and options not included in the diluted earnings per share computation for the three and six months ended June 30, 2015, respectively, because their inclusion was antidilutive. There were 945,725 and 1,193,425 outstanding awards and options not included in the diluted earnings per share computation for the three and six months ended June 30, 2014, respectively, because their inclusion was antidilutive. Due to the Company being in a net loss from continuing operations position for the six months ended June 30, 2015, no adjustment has been made for potentially dilutive shares totaling 209,269 for any common stock equivalents as their effects would be antidilutive.

Share-based compensation

Share-based compensation	6 Months Ended
	Jun. 30, 2015
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Share-based compensation	9. Share-based compensation All share-based compensation costs are measured at the grant date, based on the estimated fair value of the award, and are recognized as expense in the condensed consolidated statements of operations over the requisite service period. The following table shows the detail of share-based compensation by line item in the condensed consolidated statements of operations: Three Months Ended June 30, Six Months Ended June 30, (U.S. Dollars, in thousands) 2015 2014 2015 2014 Cost of sales $ 112 $ 29 $ 223 $ 58 Sales and marketing 296 429 601 873 General and administrative 1,301 657 2,570 1,299 Research and development 91 71 182 143 Total $ 1,800 $ 1,186 $ 3,576 $ 2,373 On June 30, 2014, the Company granted 99,600 performance-based restricted share awards to officers and certain employees. Vesting is based on achieving earnings targets in two consecutive rolling four quarter periods. As of June 30, 2015, no expense has been recognized for these contingent restricted share awards. On June 30, 2015, the Company granted 68,750 performance-based restricted share awards to officers. Vesting is based on achieving earnings and return on invested capital targets as of and for the years ended December 31, 2016, 2017 or 2018. As of June 30, 2015, no expense has been recognized for these contingent restricted share awards. During the three and six months ended June 30, 2015, there were 81,974 and 227,840 shares, respectively, of common stock issued related to stock purchase plan issuances, stock option exercises and the vesting of restricted stock awards. During the three and six months ended June 30, 2014, there were 168,715 and 432,290 shares, respectively, of common stock issued related to stock purchase plan issuances, stock option exercises and the vesting of restricted stock awards.

Income taxes

Income taxes	6 Months Ended
	Jun. 30, 2015
Income Tax Disclosure [Abstract]
Income taxes	10. Income taxes The Company recognized a $2.7 million and $4.5 million provision for income tax on continuing operations which reflects an effective tax rate of (298.7)% and 77.3% on pre-tax income for the six months ended June 30, 2015 and 2014, respectively. Excluding the impact of various discrete charges, the effective tax rate on continuing operations was (256.6)% and 63.2% for the first six months of 2015 and 2014, respectively. The principal factors affecting the Company’s June 30, 2015 effective tax rate were the Company’s mix of earnings among various tax jurisdictions, state taxes, current period losses in certain jurisdictions for which the Company does not currently provide a tax benefit and variations in the customary relationship between income tax expense and pretax earnings. As of June 30, 2015 and December 31, 2014, the Company’s unrecognized tax benefit was $15.6 million. The Company had approximately $0.5 million accrued for payment of interest and penalties as of June 30, 2015 and December 31, 2014. It is reasonably possible that the amount of the unrecognized benefit with respect to certain of our unrecognized tax positions will significantly increase or decrease within the next 12 months. These changes may be the result of settlements of ongoing audits, competent authority proceedings or other events. At this time, an estimate of the range of the reasonably possible outcomes cannot be made.

Business segment information

Business segment information	6 Months Ended
	Jun. 30, 2015
Segment Reporting [Abstract]
Business segment information	11. Business segment information The Company has four strategic business units (“SBUs”), which are comprised of BioStim, Biologics, Extremity Fixation, and Spine Fixation supported by corporate activities. The primary metric used in managing the Company is net margin, which is defined as gross profit less sales and marketing expense. The Company neither discretely allocates assets, other than goodwill, to its operating segments nor evaluates the operating segments using discrete asset information. Accordingly, our segment information has been prepared based on our four SBU reporting segments. The table below presents net sales for continuing operations by SBU reporting segment. Net sales include product sales and marketing service fees. Marketing service fees, which are recorded on a net basis, are comprised of fees earned for the marketing of Trinity Evolution ® ® Three Months Ended June 30, (U.S. Dollars, in thousands) 2015 2014 Reported Increase (Decrease) Constant Currency Increase (Decrease) BioStim $ 40,703 $ 39,513 3 % 3 % Biologics 15,274 13,853 10 % 10 % Extremity Fixation 25,594 27,303 (6 )% 12 % Spine Fixation 19,383 20,316 (5 )% (4 )% Total Net Sales $ 100,954 $ 100,985 (0 )% 5 % Six Months Ended June 30, (U.S. Dollars, in thousands) 2015 2014 Reported Increase (Decrease) Constant Currency Increase (Decrease) BioStim $ 78,403 $ 76,650 2 % 2 % Biologics 29,235 26,863 9 % 9 % Extremity Fixation 47,409 54,369 (13 )% 2 % Spine Fixation 35,669 43,117 (17 )% (17 )% Total Net Sales $ 190,716 $ 200,999 (5 )% (1 )% The table below presents net margin by SBU reporting segment: Three Months Ended June 30, Six Months Ended June 30, (U.S. Dollars, in thousands) 2015 2014 2015 2014 Net margin: BioStim $ 16,787 $ 17,706 $ 30,800 $ 32,726 Biologics 7,285 6,496 13,229 12,997 Extremity Fixation 9,149 6,656 16,165 13,590 Spine Fixation 3,173 3,130 2,644 7,189 Corporate (296 ) (430 ) (602 ) (874 ) Total net margin 36,098 33,558 62,236 65,628 General and administrative 22,506 18,214 44,075 36,074 Research and development 6,451 6,313 12,296 12,246 Restatements and related costs 2,213 2,327 8,129 10,633 Operating income (loss) $ 4,928 $ 6,704 $ (2,264 ) $ 6,675

Contingencies

Contingencies	6 Months Ended
	Jun. 30, 2015
Commitments And Contingencies Disclosure [Abstract]
Contingencies	12. Contingencies The Company is party to outstanding legal proceedings, investigations and claims, as previously described in (i) Part I, Item 3, “Legal Proceedings,” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 (the “2014 Form 10-K”) and (ii) note 15 to the Company’s audited consolidated financial statements filed with the 2014 Form 10-K. The Company believes that it is unlikely that the outcome of each of these matters will have a material adverse effect on it and its subsidiaries as a whole, notwithstanding that the unfavorable resolution of any matter may have a material effect on the Company’s net earnings (if any) in any particular quarter. However, the Company cannot predict with any certainty the final outcome of any of these legal proceedings, investigations (including any settlement discussions with the government seeking to resolve such investigations) or claims, and there can be no assurance that the ultimate resolution of any such matters will not have a material adverse impact on the Company’s consolidated financial position, results of operations, or cash flows. In addition to the matters described in the paragraphs below and in the 2014 Form 10-K, in the normal course of its business, the Company is involved in various lawsuits from time to time and may be subject to certain other contingencies. To the extent losses related to these contingencies are both probable and reasonably estimable, the Company accrues appropriate amounts in the accompanying financial statements and provides disclosures as to the possible range of loss in excess of the amount accrued, if such range is reasonably estimable. The Company believes losses are individually and collectively immaterial as to a possible loss and range of loss. Matters Related to the Audit Committee’s Review and the Restatement of Certain of our Consolidated Financial Statements. Audit Committee Review In July 2013, the Audit Committee of our Board of Directors began conducting an independent review, with the assistance of outside professionals, of certain accounting matters. This review resulted in a restatement of our previously filed consolidated financial statements for the years ended December 31, 2012, 2011 and 2010 and the quarter ended March 31, 2013, as well as the restatement of certain financial information for the years ended December 31, 2009, 2008 and 2007. This restatement, which we completed and filed in March 2014, is referred to herein as the “Original Restatement.” In connection with the Company’s preparation of its consolidated interim quarterly financial statements for the quarter ended June 30, 2014, the Company determined that certain entries with respect to the previously filed financial statements contained in the filings containing the Original Restatement were not properly accounted for under U.S. GAAP. As a result, the Company determined in August 2014 to restate its previously filed consolidated financial statements for the years ended December 31, 2013, 2012 and 2011 and quarterly reporting periods contained within the years ended December 31, 2013 and 2012, as well as the quarter ended March 31, 2014. This restatement, which we completed in March 2015, is referred to herein as the “Further Restatement.” SEC Investigation In connection with the initiation of the Audit Committee’s independent review, we initiated contact with the staff of the Division of Enforcement of the SEC (the “SEC Enforcement Staff”) in July 2013 to advise them of these matters. The Audit Committee and the Company, through respective counsel, have been in direct communication with the SEC Enforcement Staff regarding these matters. The SEC is conducting a formal investigation of these matters, and both the Company and the Audit Committee are cooperating fully with the SEC. In connection with the above-referenced communications, the Company has received requests from the SEC for documents and other information concerning various accounting practices, internal controls and business practices, and other related matters. Such requests cover the years ended December 31, 2011 and 2012, and in some instances, prior periods. It is anticipated that we may receive additional requests from the SEC in the future, including with respect to the Further Restatement. We have previously provided notice concerning our communications with the SEC to the Office of Inspector General of the U.S. Department of Health and Human Services (“HHS-OIG”) pursuant to our corporate integrity agreement with HHS-OIG. We cannot predict if, when or how this matter will be resolved or what, if any, actions we may be required to take as part of any resolution of these matters. Any action by the SEC, HHS-OIG or other governmental agency could result in civil or criminal sanctions against us and/or certain of our current and former officers, directors and employees. At this stage in the matter, we cannot reasonably estimate the possible loss, or range of loss, in connection with it. Securities Class Action Complaint On August 14, 2013, a securities class action complaint against the Company, previously styled Tejinder Singh v. Orthofix International N.V., et al., and which is now styled Plumbers & Pipefitters National Pension Fund v. Orthofix International N.V., et al., was filed in the United States District Court for the Southern District of New York arising out of the then anticipated restatement of our prior financial statements and the matters described above. Since the date of original filing, the complaint has been amended. The lead plaintiff’s complaint, as amended, purports to bring claims on behalf of persons who purchased the Company’s common stock between March 2, 2010 and July 29, 2013. The complaint asserts that the Company and four of its former executive officers, Alan W. Milinazzo, Robert S. Vaters, Brian McCollum, and Emily V. Buxton (collectively, the “Individual Defendants”), violated Section 10(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Securities and Exchange Commission Rule 10b-5 (“Rule 10b-5”) by making false or misleading statements in or relating to the Company’s financial statements. The complaint further asserts that the Individual Defendants were liable as control persons under Section 20(a) of the Exchange Act for any violation by the Company of Section 10(b) of the Exchange Act or Rule 10b-5. As relief, the complaint requests compensatory damages on behalf of the proposed class and lead plaintiff’s attorneys’ fees and costs. On March 6, 2015, the court granted the defendants’ motion to dismiss as to Mr. Milinazzo and denied it with respect to the Company and the other Individual Defendants. This matter remains at an early stage and, as of the date of this Form 10-Q, we cannot reasonably estimate the possible loss, or range of loss, in connection with it. Review of Potential Improper Payments Involving Brazil Subsidiary In August 2013, the Company’s internal legal department was notified of certain allegations involving potential improper payments with respect to its Brazilian subsidiary, Orthofix do Brasil. The Company engaged outside counsel to assist in the review of these matters, focusing on compliance with applicable anti-bribery laws, including the Foreign Corrupt Practices Act (the “FCPA”). This review remains ongoing. The FCPA and related provisions of law provide for potential criminal and civil sanctions in connection with anti-bribery violations, including criminal fines, civil penalties, disgorgement of past profits and other kinds of remedies. The Company currently cannot reasonably estimate a possible loss, or range of loss, in connection with this review. In 2012, the Company entered into definitive agreements with the U.S. Department of Justice (the “DOJ”) and the SEC agreeing to settle a self-initiated and self-reported internal investigation of our Mexican subsidiary, Promeca S.A. de C.V. (“Promeca”), regarding non-compliance by Promeca with the FCPA. As part of the settlement, we entered into a three-year deferred prosecution agreement (“DPA”) with the DOJ and a consent to final judgment (the “Consent”) with the SEC. Matters Related to the Company’s Former Breg Subsidiary and Possible Indemnification Obligations On May 24, 2012, we sold Breg to an affiliate of Water Street Healthcare Partners II, L.P. (“Water Street”) pursuant to a stock purchase agreement (the “Breg SPA”). Under the terms of the Breg SPA, upon closing of the sale, the Company and its subsidiary, Orthofix Holdings, Inc., agreed to indemnify Water Street and Breg with respect to certain specified matters, including the following: · Breg was engaged in the manufacturing and sale of local infusion pumps for pain management from 1999 to 2008. Since 2008, numerous product liability cases have been filed in the United States alleging that the local anesthetic, when dispensed by such infusion pumps inside a joint, causes a rare arthritic condition called “chondrolysis.” The Company has not yet reached any settlement or judgment in 2015, and incurred losses for settlements and judgments in connection with these matters during 2014 and 2013 of $3.8 million and $6.7 million, respectively. In addition, several cases remain outstanding for which the Company currently cannot reasonably estimate the possible loss, or range of loss. At the time of its divestiture, Breg was currently and had been engaged in the manufacturing and sales of motorized cold therapy units used to reduce pain and swelling. Several domestic product liability cases have been filed in recent years, mostly in California state court, alleging the use of cold therapy causes skin and/or nerve injury and seeking damages on behalf of individual plaintiffs who were allegedly injured by such units or who would not have purchased the units had they known they could be injured. In September 2014, the Company entered into a master settlement agreement resolving all pending pre-close claims. Pursuant to the terms of the settlement agreement, the Company paid approximately $ 1.3 million, and additional amounts owed under the settlement were paid directly by the Company’s insurance providers. These amounts paid by the Company were recorded as an expense in discontinued operations during the quarter ended June 30, 2014. Remaining cold therapy claims include a putative consumer class of individuals who did not suffer physical harm following use of the devices, and an appeal of an adverse July 2012 California jury verdict and a post-close cold therapy claim pending in California state court. As of June 30, 2015, we have an accrual of $5.7 million for the July 2012 verdict and post-close cold therapy liabilities; however, the actual liability could be higher or lower than the amount accrued. The putative class action is at an early stage and the Company currently cannot reasonably estimate the possible loss, or range of loss.

Nature of operations, basis o18

Nature of operations, basis of presentation and recently issues accounting pronouncements (Policies)	6 Months Ended
	Jun. 30, 2015
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Abstract]
Basis of presentation	Basis of presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Pursuant to these rules and regulations, certain information and note disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. In the opinion of management, all adjustments (consisting of normal recurring items) considered necessary for a fair statement have been included. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. On an ongoing basis, the Company evaluates its estimates including those related to contractual allowances, doubtful accounts, inventories, potential goodwill and intangible asset impairment, litigation and contingent liabilities, income taxes, and shared-based compensation. Actual results could differ from these estimates. As permitted under U.S. GAAP, interim accounting for certain expenses, including income taxes, are based on full year forecasts. For interim financial reporting purposes, income taxes are recorded based upon estimated annual effective income tax rates taking into consideration discrete items occurring during the period.
Recently issued accounting standards	Recently issued accounting standards In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-08, Reporting Discontinued Operations and Disclosures of Components of an Entity. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2015
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories were as follows: (U.S. Dollars, in thousands) June 30, 2015 December 31, 2014 Raw materials $ 4,200 $ 3,879 Work-in-process 5,071 4,830 Finished products 44,309 45,612 Deferred cost of sales 5,639 5,525 Total inventory $ 59,219 $ 59,846

Derivative instruments (Tables)

Derivative instruments (Tables)	6 Months Ended
	Jun. 30, 2015
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Schedule of Fair Values of Derivative Instruments	The tables below disclose the types of derivative instruments the Company owns, the classifications and fair values of these instruments within the balance sheet, and the amount of gain (loss) recognized in other comprehensive income (loss). (U.S. Dollars, in thousands) As of June 30, 2015 Fair f (unfavorable) Balance sheet location Cross-currency swap $ 5,807 Other long-term assets Warrants $ 311 Other long-term assets As of December 31, 2014 Cross-currency swap $ 2,504 Other long-term assets Warrants $ 321 Other long-term assets
Schedule of Gain (Loss) Recognized on Derivative Instruments	Three Months Ended June 30, Six Months Ended June 30, (U.S. Dollars, in thousands) 2015 2014 2015 2014 Cross-currency swap unrealized gain (loss) recorded in other comprehensive income (loss), net of taxes $ 267 $ (31 ) $ 936 $ 72 Warrants unrealized gain recorded in other comprehensive income (loss), net of taxes $ 4 $ — $ — $ —

Fair value measurements (Tables

Fair value measurements (Tables)	6 Months Ended
	Jun. 30, 2015
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Schedule of Financial Assets and Liabilities Recorded at Fair Value on Recurring Basis	The fair value of the Company’s financial assets and liabilities on a recurring basis were as follows: (U.S. Dollars, in thousands) Balance June 30, 2015 Level 1 Level 2 Level 3 Assets Collective trust funds $ 1,664 $ — $ 1,664 $ — Treasury securities 532 532 — — Certificates of deposit 1,129 1,129 — — Derivative securities 6,118 — 6,118 — Equity securities 1,457 — 1,457 — Debt securities 15,390 — — 15,390 Total $ 26,290 $ 1,661 $ 9,239 $ 15,390 Liabilities Deferred compensation plan $ (1,553 ) $ — $ (1,553 ) $ — Total $ (1,553 ) $ — $ (1,553 ) $ — (U.S. Dollars, in thousands) Balance December 31, 2014 Level 1 Level 2 Level 3 Assets Collective trust funds $ 1,696 $ — $ 1,696 $ — Treasury securities 586 586 — — Certificates of deposit 1,510 1,510 — — Derivative securities 2,825 — 2,825 — Equity securities 1,457 — 1,457 — Total $ 8,074 $ 2,096 $ 5,978 $ — Liabilities Deferred compensation plan $ (1,886 ) $ — $ (1,886 ) $ — Total $ (1,886 ) $ — $ (1,886 ) $ —
Fair Value, Inputs, Level 3 [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Schedule of Reconciliation of Available for Sale Debt Securities	The following table provides a reconciliation of the beginning and ending balances for debt securities measured at fair value using significant unobservable inputs (Level 3): (U.S. Dollars, in thousands) 2015 Balance at January 1 $ — Additions to debt securities 15,000 Accrued interest income 390 Balance at June 30 $ 15,390

Accumulated other comprehensi22

Accumulated other comprehensive income (Tables)	6 Months Ended
	Jun. 30, 2015
Equity [Abstract]
Components of Changes in Accumulated Other Comprehensive Loss	The components of and changes in accumulated other comprehensive loss were as follows: (U.S. Dollars, in thousands) Foreign Currency Translation Adjustments Change in Fair Value Accumulated Other Comprehensive Loss Balance at December 31, 2014 $ (482 ) $ 100 $ (382 ) Unrealized gain on derivative instruments, net of tax of $529 — 936 936 Foreign currency translation adjustment (1) (3,301 ) — (3,301 ) Balance at June 30, 2015 $ (3,783 ) $ 1,036 $ (2,747 ) (1) As the unremitted earnings generally remain indefinitely reinvested in the non U.S. dollar denominated foreign subsidiaries, no deferred taxes are recognized on the related foreign currency translation adjustment.

Earnings per share (Tables)

Earnings per share (Tables)	6 Months Ended
	Jun. 30, 2015
Earnings Per Share [Abstract]
Schedule of Reconciliation of Weighted Average Shares Used in Calculation of Basic and Diluted Earnings Per Share	The following is a reconciliation of the weighted average shares used in the basic and diluted net loss per common share computations. Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Weighted average common shares-basic 18,769,415 18,445,348 18,750,804 18,322,185 Effect of dilutive securities: Unexercised stock options net of treasury share repurchase 220,164 175,844 — 112,943 Weighted average common shares-diluted 18,989,579 18,621,192 18,750,804 18,435,128

Share-based compensation (Table

Share-based compensation (Tables)	6 Months Ended
	Jun. 30, 2015
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Schedule of Share-Based Compensation by Line Item in Consolidated Statements of Operations	The following table shows the detail of share-based compensation by line item in the condensed consolidated statements of operations: Three Months Ended June 30, Six Months Ended June 30, (U.S. Dollars, in thousands) 2015 2014 2015 2014 Cost of sales $ 112 $ 29 $ 223 $ 58 Sales and marketing 296 429 601 873 General and administrative 1,301 657 2,570 1,299 Research and development 91 71 182 143 Total $ 1,800 $ 1,186 $ 3,576 $ 2,373

Business segment information (T

Business segment information (Tables)	6 Months Ended
	Jun. 30, 2015
Segment Reporting [Abstract]
Schedule of Net Sales by SBU Reporting Segment	The table below presents net sales for continuing operations by SBU reporting segment. Net sales include product sales and marketing service fees. Marketing service fees, which are recorded on a net basis, are comprised of fees earned for the marketing of Trinity Evolution ® ® Three Months Ended June 30, (U.S. Dollars, in thousands) 2015 2014 Reported Increase (Decrease) Constant Currency Increase (Decrease) BioStim $ 40,703 $ 39,513 3 % 3 % Biologics 15,274 13,853 10 % 10 % Extremity Fixation 25,594 27,303 (6 )% 12 % Spine Fixation 19,383 20,316 (5 )% (4 )% Total Net Sales $ 100,954 $ 100,985 (0 )% 5 % Six Months Ended June 30, (U.S. Dollars, in thousands) 2015 2014 Reported Increase (Decrease) Constant Currency Increase (Decrease) BioStim $ 78,403 $ 76,650 2 % 2 % Biologics 29,235 26,863 9 % 9 % Extremity Fixation 47,409 54,369 (13 )% 2 % Spine Fixation 35,669 43,117 (17 )% (17 )% Total Net Sales $ 190,716 $ 200,999 (5 )% (1 )%
Summary of Net Margin by SBU Reporting Segment	The table below presents net margin by SBU reporting segment: Three Months Ended June 30, Six Months Ended June 30, (U.S. Dollars, in thousands) 2015 2014 2015 2014 Net margin: BioStim $ 16,787 $ 17,706 $ 30,800 $ 32,726 Biologics 7,285 6,496 13,229 12,997 Extremity Fixation 9,149 6,656 16,165 13,590 Spine Fixation 3,173 3,130 2,644 7,189 Corporate (296 ) (430 ) (602 ) (874 ) Total net margin 36,098 33,558 62,236 65,628 General and administrative 22,506 18,214 44,075 36,074 Research and development 6,451 6,313 12,296 12,246 Restatements and related costs 2,213 2,327 8,129 10,633 Operating income (loss) $ 4,928 $ 6,704 $ (2,264 ) $ 6,675

Nature of operations, basis o26

Nature of operations, basis of presentation and recently issues accounting pronouncements - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2015Segment
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Abstract]
Number Of Reporting Units	4

Cash Flow Statement Classific27

Cash Flow Statement Classification Error - Additional Information (Detail) - 6 months ended Jun. 30, 2015 - USD ($) $ in Millions	Total
Quantifying Misstatement In Current Year Financial Statements [Line Items]
Immaterial error correction, description	The classification error had no effect on the reported net change in cash and cash equivalents, and also had no effect on the consolidated balance sheet, the consolidated statement of operations, or the consolidated statement of stockholders’ equity. Based on our evaluation of relevant quantitative and qualitative factors, we have determined that the classification error is and was immaterial.
Effect of exchange rate changes on cash overstated [Member]
Quantifying Misstatement In Current Year Financial Statements [Line Items]
Cash flow statement classification error	$ 2.4
Net cash provided by operating activities overstated [Member]
Quantifying Misstatement In Current Year Financial Statements [Line Items]
Cash flow statement classification error	$ 2.4

Inventories - Schedule of Inven

Inventories - Schedule of Inventories (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Inventory Disclosure [Abstract]
Raw materials	$ 4,200	$ 3,879
Work-in-process	5,071	4,830
Finished products	44,309	45,612
Deferred cost of sales	5,639	5,525
Total inventory	$ 59,219	$ 59,846

Long-Term Debt - Additional Inf

Long-Term Debt - Additional Information (Detail)	Aug. 30, 2010USD ($)	Jun. 30, 2015USD ($)	Jan. 15, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2014EUR (€)
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 6,500,000		$ 7,000,000	€ 5,800,000
Available capacity under the revolving credit facility			$ 100,000,000
Amount outstanding under lines of credit		0
Amount of restricted net assets		$ 187,800,000		181,800,000
Restricted cash				34,424,000
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Debt instrument term (in years)		5 years
Maximum borrowing capacity	$ 200,000,000
Amount outstanding under lines of credit		$ 0		0
Revolving credit facility due date		Aug. 30, 2015
Term Loan Facility [Member]
Debt Instrument [Line Items]
Debt instrument term (in years)		5 years
Maximum borrowing capacity	$ 100,000,000
Amount outstanding under lines of credit		$ 0		$ 0

Derivative Instruments - Schedu

Derivative Instruments - Schedule of Fair Values of Derivative Instruments (Detail) - Other long-term Assets [Member] - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Cross-Currency Swap [Member]
Derivatives Fair Value [Line Items]
Fair value: favorable (unfavorable)	$ 5,807	$ 2,504
Warrants [Member]
Derivatives Fair Value [Line Items]
Fair value: favorable (unfavorable)	$ 311	$ 321

Derivative Instruments - Sche31

Derivative Instruments - Schedule of Gain (Loss) Recognized on Derivative Instruments (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Derivative Instruments [Line Items]
Unrealized gain (loss) on derivative instruments recorded in other comprehensive income (loss), net of taxes	$ 271	$ (31)	$ 936	$ 72
Cross-Currency Swap [Member]
Derivative Instruments [Line Items]
Unrealized gain (loss) on derivative instruments recorded in other comprehensive income (loss), net of taxes	267	$ (31)	$ 936	$ 72
Warrants [Member]
Derivative Instruments [Line Items]
Unrealized gain (loss) on derivative instruments recorded in other comprehensive income (loss), net of taxes	$ 4

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Financial Assets and Liabilities Recorded at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Fair Value, Inputs, Level 3 [Member] | Debt Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets fair value	$ 15,390
Fair Value, Measurements, Recurring [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets fair value	26,290	$ 8,074
Deferred compensation plan, Liabilities	(1,553)	(1,886)
Liabilities fair value, Total	(1,553)	(1,886)
Fair Value, Measurements, Recurring [Member] | Collective Trust Funds [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets fair value	1,664	1,696
Fair Value, Measurements, Recurring [Member] | Treasury Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets fair value	532	586
Fair Value, Measurements, Recurring [Member] | Certificates of Deposit [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets fair value	1,129	1,510
Fair Value, Measurements, Recurring [Member] | Derivative Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets fair value	6,118	2,825
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets fair value	1,457	1,457
Fair Value, Measurements, Recurring [Member] | Debt Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets fair value	15,390
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets fair value	1,661	2,096
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Treasury Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets fair value	532	586
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Certificates of Deposit [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets fair value	1,129	1,510
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets fair value	9,239	5,978
Deferred compensation plan, Liabilities	(1,553)	(1,886)
Liabilities fair value, Total	(1,553)	(1,886)
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Collective Trust Funds [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets fair value	1,664	1,696
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Derivative Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets fair value	6,118	2,825
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Equity Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets fair value	1,457	$ 1,457
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets fair value	15,390
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Debt Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets fair value	$ 15,390

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Detail) - eNeura Inc [Member] - USD ($) $ in Millions	Mar. 04, 2015	Jun. 30, 2015
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Non-refundable fees paid	$ 0.3
Accrued interest on promissory note	8.00%
Maturity description of Promissory note		The eNeura Note will mature on the earlier of (i) March 4, 2019, or (ii) exercise of the Option.
Debt Instrument, Maturity Date		Mar. 4, 2019
Convertible Debt Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Principal amount of promissory note	$ 15

Fair Value Measurements - Sch34

Fair Value Measurements - Schedule of Reconciliation of Debt Securities (Detail) - Jun. 30, 2015 - USD ($) $ in Thousands	Total
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Additions to debt securities	$ 15,250
Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Additions to debt securities	15,000
Accrued interest income	390
Ending balance	$ 15,390

Accumulated other comprehensi35

Accumulated other comprehensive loss - Components of Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance			$ (382)
Unrealized gain on derivative instruments, net of tax	$ 271	$ (31)	936	$ 72
Foreign currency translation adjustment	1,559	$ 198	(3,301)	$ 574
Ending Balance	(2,747)		(2,747)
Foreign Currency Translation Adjustments [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance			(482)
Foreign currency translation adjustment			(3,301)
Ending Balance	(3,783)		(3,783)
Change in Fair Value [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance			100
Unrealized gain on derivative instruments, net of tax			936
Ending Balance	1,036		1,036
Accumulated Other Comprehensive Loss [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance			(382)
Unrealized gain on derivative instruments, net of tax			936
Foreign currency translation adjustment			(3,301)
Ending Balance	$ (2,747)		$ (2,747)

Accumulated other comprehensi36

Accumulated other comprehensive loss - Components of Changes in Accumulated Other Comprehensive Loss (Parenthetical) (Detail)	6 Months Ended
	Jun. 30, 2015USD ($)
Foreign Currency Translation Adjustments [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Deferred taxes recognized on related foreign currency translation adjustment	$ 0
Change in Fair Value [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Unrealized gain on derivative instruments, tax	529,000
Accumulated Other Comprehensive Loss [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Unrealized gain on derivative instruments, tax	529,000
Deferred taxes recognized on related foreign currency translation adjustment	$ 0

Earnings Per Share - Schedule o

Earnings Per Share - Schedule of Reconciliation of Weighted Average Shares Used in Calculation of Basic and Diluted Earnings Per Share (Detail) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Earnings Per Share [Abstract]
Weighted average common shares-basic	18,769,415	18,445,348	18,750,804	18,322,185
Effect of dilutive securities:
Unexercised stock options net of treasury share repurchase	220,164	175,844		112,943
Weighted average common shares-diluted	18,989,579	18,621,192	18,750,804	18,435,128

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Detail) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Performance-Based Restricted Stock Awards and Options to Purchase Common Stock [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Outstanding awards and options not included in diluted earnings per share	792,149	945,725	872,039	1,193,425
Common Stock Equivalents [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Outstanding awards and options not included in diluted earnings per share			209,269

Share-based Compensation - Sche

Share-based Compensation - Schedule of Share-Based Compensation by Line Item in Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated share based compensation expense	$ 1,800	$ 1,186	$ 3,576	$ 2,373
Cost of sales [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated share based compensation expense	112	29	223	58
Sales and marketing [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated share based compensation expense	296	429	601	873
General and administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated share based compensation expense	1,301	657	2,570	1,299
Research and development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated share based compensation expense	$ 91	$ 71	$ 182	$ 143

Share-based Compensation - Addi

Share-based Compensation - Additional Information (Detail) - USD ($)	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense recognized			$ 1,800,000	$ 1,186,000	$ 3,576,000	$ 2,373,000
Shares issued under stock purchase plan			81,974	168,715	227,840	432,290
Performance Based [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Non-vested shares	68,750	99,600
Restricted Stock [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense recognized	$ 0

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Provision for income tax	$ 1,778	$ 3,309	$ 2,742	$ 4,488
Income tax effective rate			(298.70%)	77.30%
Income tax effective rate excluding the impact of discrete charges			(256.60%)	63.20%
Gross unrecognized tax benefit	15,600		$ 15,600		$ 15,600
Accrued interest and penalties related to unrecognized tax benefits	$ 500		$ 500		$ 500

Business Segment Information -

Business Segment Information - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2015Segment
Segment Reporting [Abstract]
Number of strategic business units	4

Business Segment Information 43

Business Segment Information - Schedule of Net Sales by SBU Reporting Segment (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Sales Information [Line Items]
Net Sales	$ 100,954	$ 100,985	$ 190,716	$ 200,999
Reported Increase (Decrease) (as percent)	0.00%		(5.00%)
Constant Currency Increase (Decrease) (as percent)	5.00%		(1.00%)
BioStim [Member]
Sales Information [Line Items]
Net Sales	$ 40,703	39,513	$ 78,403	76,650
Reported Increase (Decrease) (as percent)	3.00%		2.00%
Constant Currency Increase (Decrease) (as percent)	3.00%		2.00%
Biologics [Member]
Sales Information [Line Items]
Net Sales	$ 15,274	13,853	$ 29,235	26,863
Reported Increase (Decrease) (as percent)	10.00%		9.00%
Constant Currency Increase (Decrease) (as percent)	10.00%		9.00%
Extremity Fixation [Member]
Sales Information [Line Items]
Net Sales	$ 25,594	27,303	$ 47,409	54,369
Reported Increase (Decrease) (as percent)	(6.00%)		(13.00%)
Constant Currency Increase (Decrease) (as percent)	12.00%		2.00%
Spine Fixation [Member]
Sales Information [Line Items]
Net Sales	$ 19,383	$ 20,316	$ 35,669	$ 43,117
Reported Increase (Decrease) (as percent)	(5.00%)		(17.00%)
Constant Currency Increase (Decrease) (as percent)	(4.00%)		(17.00%)

Business Segment Information 44

Business Segment Information - Summary of Net Margin by SBU Reporting Segment (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Segment Reporting Information [Line Items]
Total net margin	$ 36,098	$ 33,558	$ 62,236	$ 65,628
General and administrative	22,506	18,214	44,075	36,074
Research and development	6,451	6,313	12,296	12,246
Restatements and related costs	2,213	2,327	8,129	10,633
Operating income (loss)	4,928	6,704	(2,264)	6,675
Operating Segments [Member] | BioStim [Member]
Segment Reporting Information [Line Items]
Total net margin	16,787	17,706	30,800	32,726
Operating Segments [Member] | Biologics [Member]
Segment Reporting Information [Line Items]
Total net margin	7,285	6,496	13,229	12,997
Operating Segments [Member] | Extremity Fixation [Member]
Segment Reporting Information [Line Items]
Total net margin	9,149	6,656	16,165	13,590
Operating Segments [Member] | Spine Fixation [Member]
Segment Reporting Information [Line Items]
Total net margin	3,173	3,130	2,644	7,189
Corporate, Non-Segment [Member]
Segment Reporting Information [Line Items]
Total net margin	(296)	(430)	(602)	(874)
Material Reconciling Items [Member]
Segment Reporting Information [Line Items]
General and administrative	22,506	18,214	44,075	36,074
Research and development	6,451	6,313	12,296	12,246
Restatements and related costs	$ 2,213	$ 2,327	$ 8,129	$ 10,633

Contingencies - Additional Info

Contingencies - Additional Information (Detail) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014	Dec. 31, 2013
Commitments And Contingencies Disclosure [Abstract]
Judgments and settlement losses		$ (3.8)	$ (6.7)
Amount paid to settlement of claims	$ 1.3
Discontinued operations for compensatory damages and exemplary damages	$ 5.7