Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 23, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
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 | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 18,757,700 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 77,056 | $ 81,157 |
Accounts receivable, net of allowances of $8,934 and $8,405, respectively | 77,182 | 63,437 |
Inventories | 77,686 | 81,330 |
Prepaid expenses and other current assets | 31,219 | 25,877 |
Total current assets | 263,143 | 251,801 |
Property, plant and equipment, net | 43,973 | 45,139 |
Patents and other intangible assets, net | 13,150 | 10,461 |
Goodwill | 53,565 | 53,565 |
Deferred income taxes | 28,359 | 23,315 |
Other long-term assets | 6,814 | 21,073 |
Total assets | 409,004 | 405,354 |
Current liabilities | ||
Accounts payable | 14,012 | 18,111 |
Other current liabilities | 51,171 | 61,295 |
Total current liabilities | 65,183 | 79,406 |
Other long-term liabilities | 30,647 | 29,340 |
Total liabilities | 95,830 | 108,746 |
Contingencies (Note 5) | ||
Shareholders’ equity | ||
Common shares $0.10 par value; 50,000,000 shares authorized; 18,405,344 and 18,278,833 issued and outstanding as of March 31, 2018 and December 31, 2017, respectively | 1,841 | 1,828 |
Additional paid-in capital | 228,356 | 220,591 |
Retained earnings | 78,493 | 70,402 |
Accumulated other comprehensive income | 4,484 | 3,787 |
Total shareholders’ equity | 313,174 | 296,608 |
Total liabilities and shareholders’ equity | $ 409,004 | $ 405,354 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 8,934 | $ 8,405 |
Common shares, par value | $ 0.10 | $ 0.10 |
Common shares, authorized | 50,000,000 | 50,000,000 |
Common shares, issued | 18,405,344 | 18,278,833 |
Common shares, outstanding | 18,405,344 | 18,278,833 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||
Net sales | $ 108,709 | $ 102,738 |
Cost of sales | 24,147 | 22,581 |
Gross profit | 84,562 | 80,157 |
Sales and marketing | 50,268 | 48,532 |
General and administrative | 19,484 | 18,282 |
Research and development | 6,937 | 7,424 |
Operating income | 7,873 | 5,919 |
Interest income (expense), net | (183) | 45 |
Other income (expense), net | 2,912 | (4,348) |
Income before income taxes | 10,602 | 1,616 |
Income tax expense | (5,373) | (3,924) |
Net income (loss) from continuing operations | 5,229 | (2,308) |
Discontinued operations (Note 5) | ||
Loss from discontinued operations | (3) | (527) |
Income tax benefit | 181 | |
Net loss from discontinued operations | (3) | (346) |
Net income (loss) | $ 5,226 | $ (2,654) |
Net income (loss) per common share—basic | ||
Net income (loss) from continuing operations | $ 0.28 | $ (0.13) |
Net loss from discontinued operations | (0.02) | |
Net income (loss) per common share—basic | 0.28 | (0.15) |
Net income (loss) per common share—diluted | ||
Net income (loss) from continuing operations | 0.27 | (0.13) |
Net loss from discontinued operations | (0.02) | |
Net income (loss) per common share—diluted | $ 0.27 | $ (0.15) |
Weighted average number of common shares: | ||
Basic | 18,404,856 | 17,979,675 |
Diluted | 18,874,591 | 17,979,675 |
Other comprehensive income, before tax | ||
Unrealized gain (loss) on debt securities | $ (3,220) | |
Reclassification adjustment for loss on debt securities in net income | 5,585 | |
Currency translation adjustment | $ 697 | 234 |
Other comprehensive income before tax | 697 | 2,599 |
Income tax related to items of other comprehensive loss | (900) | |
Other comprehensive income, net of tax | 697 | 1,699 |
Comprehensive income (loss) | $ 5,923 | $ (955) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities | ||
Net income (loss) | $ 5,226 | $ (2,654) |
Adjustments to reconcile net income to net cash from operating activities | ||
Depreciation and amortization | 4,369 | 5,075 |
Amortization of debt costs and other assets | 375 | 360 |
Provision for doubtful accounts | (35) | 532 |
Deferred income taxes | 277 | 5,074 |
Share-based compensation | 3,916 | 2,816 |
Other-than-temporary impairment on debt securities | 5,585 | |
Gain on valuation of equity securities | (1,629) | |
Other | 208 | 242 |
Changes in operating assets and liabilities | ||
Accounts receivable | (4,925) | (2,074) |
Inventories | 1,664 | (2,750) |
Prepaid expenses and other current assets | 2,166 | (203) |
Accounts payable | (4,459) | 1,014 |
Other current liabilities | (11,310) | (23,253) |
Other long-term assets and liabilities | 597 | (663) |
Net cash from operating activities | (3,560) | (10,899) |
Cash flows from investing activities | ||
Capital expenditures for property, plant and equipment | (2,831) | (3,721) |
Capital expenditures for intangible assets | (607) | (184) |
Purchase of intangible assets and other investments | (1,217) | |
Other investing activities | 474 | |
Net cash from investing activities | (4,655) | (3,431) |
Cash flows from financing activities | ||
Proceeds from issuance of common shares | 4,378 | 3,876 |
Payments related to withholdings for share-based compensation | (516) | (2,079) |
Payment of debt issuance costs | (165) | |
Net cash from financing activities | 3,697 | 1,797 |
Effect of exchange rate changes on cash | 417 | 244 |
Net change in cash, cash equivalents, and restricted cash | (4,101) | (12,289) |
Cash, cash equivalents, and restricted cash at the beginning of the period | 81,157 | 53,941 |
Cash, cash equivalents, and restricted cash at the end of the period | 77,056 | $ 41,652 |
Noncash activities: | ||
Purchase of intangible assets | $ 1,181 |
Business and basis of presentat
Business and basis of presentation | 3 Months Ended |
Mar. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Business and basis of presentation | Business and basis of presentation Orthofix International N.V., together with its subsidiaries (the “Company”) is a global medical device company focused on musculoskeletal healing products and value-added services. 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 Form 10-K for the year ended December 31, 2017. 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 revenue recognition, contractual allowances, doubtful accounts, inventories, goodwill and intangible asset impairment, fair value measurements, litigation and contingent liabilities, income taxes, and share-based compensation. Actual results could differ from these estimates. |
Recently adopted accounting sta
Recently adopted accounting standards and recently issued accounting pronouncements | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Changes And Error Corrections [Abstract] | |
Recently adopted accounting standards and recently issued accounting pronouncements | 1. Recently adopted accounting standards and recently issued accounting pronouncements Adoption of accounting standards update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) In May 2014, the FASB issued ASU 2014-09. Topic 606 supersedes the revenue recognition requirements in Topic 605, Revenue Recognition Adoption of ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10), and ASU 2018-03, Technical Corrections and Improvements to Financial Instruments In January 2016, the FASB issued ASU 2016-01, which was then further clarified in ASU 2018-03, in February 2018. This guidance requires entities to generally measure equity investments at fair value and recognize any changes in fair value in net income. However, for certain equity investments that do not have readily determinable fair values, the new guidance allows entities to choose to measure these investments using a new measurement alternative, which values the investments at cost, less any impairments, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. The Company prospectively adopted both ASU 2016-01 and ASU 2018-03 on January 1, 2018 and elected to use the new measurement alternative for the Company’s equity investments in Bone Biologics, Inc. (“Bone Biologics”), which have historically been held at cost. This resulted in an increase in the previously recorded value of the Company’s equity investments in Bone Biologics, which are recorded within other long term assets, of $1.6 million, or $0.09 per share before taxes, which was included in other income. See Note 4 for further details. Adoption of ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory In October 2016, the FASB issued ASU 2016-16, which reduces diversity in practice of accounting for intra-entity transfers of assets, particularly for intra-entity transfers of intellectual property. The new standard states an entity should recognize the income tax consequences of an intra-entity transfer when the transfer occurs, as opposed to historical U.S. GAAP guidance which prohibited the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset had been sold to an outside party. During the third and fourth quarters of 2017, the Company executed two intra-entity asset transfers that resulted in prepaid income taxes of $8.6 million. The Company adopted this new standard using a modified retrospective approach as of January 1, 2018, which resulted in a reduction of prepaid income taxes and an increase in deferred tax assets with these changes offset by an adjustment to the Company's opening retained earnings of approximately $1.9 million. Adoption of this guidance did not have a material impact to the Company’s consolidated statements of operations and comprehensive income (loss) or to its consolidated statements of cash flows. Adoption of ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash In November 2016, the FASB issued ASU 2016-18, which reduces diversity in classification and presentation of restricted cash, including transfers between cash and restricted cash, on the statement of cash flows. Adoption of ASU 2017-01, Business Combinations (Topic 805) In January 2017, the FASB issued ASU 2017-01, which clarifies the definition of a business. This amendment states that when substantially all of the fair value of gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, that the set of assets acquired is not a business, which will likely result in more acquisitions being accounted for as asset acquisitions rather than business combinations. Based upon this guidance, which the Company adopted as of January 1, 2018, the Company accounted for an acquisition during the first quarter of 2018 for approximately $1.9 million as an asset acquisition rather than a business combination, as the set of assets acquired did not meet the definition of a business. Recently issued accounting pronouncements Topic Description of Guidance Effective Date Status of Company's Evaluation Leases (ASU 2016-02) Requires a lessee to recognize lease assets and lease liabilities for leases classified as operating leases. Applied using a modified retrospective approach. January 1, 2019 The Company has established a cross-functional implementation team to analyze the impact of the standard on the Company's population of leases and to evaluate the Company's current accounting policies relating to leases. The Company is currently evaluating the impact this ASU may have on its consolidated financial statements; however, the Company expects this guidance will materially impact the Company's consolidated balance sheet, resulting in current operating lease obligations being reflected on the consolidated balance sheet. Goodwill (ASU 2017-04) Eliminates Step 2 of the current goodwill impairment test, which requires a hypothetical purchase price allocation to measure goodwill impairment. A goodwill impairment loss will instead be measured at the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the recorded amount of goodwill. Applied on a prospective basis, with early adoption permitted. January 1, 2020 The Company is currently evaluating the impact this ASU may have on its consolidated financial statements. However, the Company does not expect this ASU to have a significant impact on its financial statements or disclosures. Comprehensive income (ASU 2018-02) Allows entities to reclassify from accumulated other comprehensive income to retained earnings stranded tax effects resulting from the Tax Cuts and Jobs Act (the "Tax Act"). Applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act is recognized. January 1, 2019 The Company is currently evaluating the impact this ASU may have on its consolidated financial statements. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | 2. Inventories Inventories were as follows: (U.S. Dollars, in thousands) March 31, 2018 December 31, 2017 Raw materials $ 5,889 $ 6,067 Work-in-process 13,666 12,487 Finished products 58,131 60,441 Deferred cost of sales — 2,335 Inventories $ 77,686 $ 81,330 Prior to the adoption of ASU 2014-09, or for all periods presented prior to January 1, 2018, deferred cost of sales resulted from transactions where the Company had shipped product or performed services for which all revenue recognition criteria had not yet been met. Once all revenue recognition criteria had been met, the revenue and associated cost of sales were recognized. Subsequent to the adoption of ASU 2014-09, the Company no longer has transactions which result in the recognition of deferred cost of sales. See Note 7 for further discussion of the Company’s adoption of ASU 2014-09. |
Long-term debt
Long-term debt | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-term debt | 3. Long-term debt As of March 31, 2018, the Company has not made any borrowings under the five year $125 million secured revolving credit facility it entered into in August 2015 with JPMorgan Chase Bank, N.A., as Administrative Agent, and certain lenders. The Company has also not made any borrowings on its €5.8 million ($7.1 million) available line of credit in Italy as of March 31, 2018. The Company is in compliance with all required financial covenants as of March 31, 2018. |
Fair value measurements
Fair value measurements | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | 4. Fair value measurements The fair value of the Company’s financial assets and liabilities measured on a recurring basis were as follows: March 31, 2018 December 31, 2017 (U.S. Dollars, in thousands) Level 1 Level 2 Level 3 Total Total Assets Collective trust funds $ — $ 100 $ — $ 100 $ 100 Treasury securities 563 — — 563 556 Equity warrants — 519 — 519 311 Equity securities — 4,379 — 4,379 2,457 Debt security — — 16,050 16,050 16,050 Total $ 563 $ 4,998 $ 16,050 $ 21,611 $ 19,474 Liabilities Deferred compensation plan $ — $ (1,398 ) $ — $ (1,398 ) $ (1,379 ) Total $ — $ (1,398 ) $ — $ (1,398 ) $ (1,379 ) Equity Warrants and Securities The Company holds investments in common stock and warrants to purchase shares of common stock of Bone Biologics, Inc. (“Bone Biologics”). Both of these instruments are recorded within other long-term assets. Prior to 2018, these instruments were accounted for at cost as the fair value of these instruments was not readily determinable. Effective January 1, 2018, the Company is required to measure these equity investments at fair value and recognize any changes in fair value in net income as a result of adopting ASU 2016-01. However, for certain equity investments that do not have readily determinable fair values, the new guidance allows entities to choose to measure these investments using a new measurement alternative, which values the investments at cost, less any impairments, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. The Company has elected to use the new measurement alternative for these equity investments in Bone Biologics, which resulted in an increase in the previously recorded value of the equity investments of $1.6 million, or $0.09 per share before taxes, which was included in other income. In addition, the Company made an additional investment in Bone Biologics during the first quarter of 2018, in which it purchased an additional 250,000 shares of common stock for $0.5 million. Debt Security The Company holds a debt security of eNeura, Inc., a privately held medical technology company that is developing devices for the treatment of migraines. The debt security matures on March 4, 2019 . Company As of March 31, 2018, the Company reassessed its estimate of fair value based on current financial information and other assumptions, resulting in a fair value of $16.1 million, which is consistent with the Company’s estimated fair value of the debt security as of December 31, 2017. This compares to an amortized cost basis in the debt security of $9.0 million. 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) 2018 2017 Balance at January 1 $ 16,050 $ 12,220 Accrued interest income — — Gains or losses recorded for the period Recognized in net income — (5,585 ) Recognized in other comprehensive income — 2,365 Balance at March 31 $ 16,050 $ 9,000 |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies | 5. Contingencies In addition to the matters described below, 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. The Company believes any losses related to these matters are individually and collectively immaterial as to a possible loss and range of loss. Discontinued Operations – Matters Related to Breg and Possible Indemnification Obligations On May 24, 2012, the Company sold Breg to an affiliate of Water Street Healthcare Partners II, L.P. (“Water Street”). Under the terms of the agreement, the Company indemnified Water Street and Breg with respect to certain specified matters. At the time of its divestiture by the Company, Breg was engaged in the manufacturing and sales of motorized cold therapy units used to reduce pain and swelling. Several domestic product liability cases were filed, mostly in California state court. In September 2014, the Company entered into a master settlement agreement resolving then pending pre-close cold therapy claims. Currently pending is a post-close cold therapy claim in California state court. As of March 31, 2018, the Company has an accrual of $1.7 million recorded within other current liabilities; however, the actual liability could be higher or lower than the amount accrued. Charges incurred as a result of this indemnification are reflected as discontinued operations in the condensed consolidated statements of operations and comprehensive income (loss). Italian Medical Device Payback (“IMDP”) In 2015, the Italian Parliament introduced rules for entities that supply goods and services to the Italian National Healthcare System. The healthcare law is expected to impact the business and financial reporting of companies operating in the medical technology sector that sell medical devices in Italy. A key provision of the law is a ‘payback’ measure, requiring companies selling medical devices in Italy to make payments to the Italian government if medical device expenditures exceed regional maximum ceilings. Companies are required to make payments equal to a percentage of expenditures exceeding maximum regional caps. There is considerable uncertainty about how the law will operate and what the exact timeline is for finalization. The Company’s current assessment of the IMDP involves significant judgment regarding the expected scope and actual implementation terms of the measure as the latter have not been clarified to date by Italian authorities. The Company accounts for the estimated cost of the IMDP as sales and marketing expense and as of March 31, 2018, the Company has accrued €2.6 million ($3.2 million) relating to the IMDP; however, the actual liability could be higher or lower than the amount accrued once the law has been clarified by the Italian authorities. |
Accumulated other comprehensive
Accumulated other comprehensive loss | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Accumulated other comprehensive loss | 6. Accumulated other comprehensive loss The components of and changes in accumulated other comprehensive loss were as follows: (U.S. Dollars, in thousands) Currency Translation Adjustments Debt Security Accumulated Other Comprehensive Loss Balance at December 31, 2017 $ (563 ) $ 4,350 $ 3,787 Other comprehensive income 697 — 697 Income taxes — — — Balance at March 31, 2018 $ 134 $ 4,350 $ 4,484 |
Revenue recognition and account
Revenue recognition and accounts receivable | 3 Months Ended |
Mar. 31, 2018 | |
Revenue Recognition And Accounts Receivable [Abstract] | |
Revenue recognition and accounts receivable | 7. Revenue recognition and accounts receivable Adoption of ASU 2014-09, “Revenue from Contracts with Customers” Effective January 1, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606) The Company recorded a net increase to opening retained earnings of $4.8 million as of January 1, 2018 due to the cumulative impact of adopting Topic 606 as presented in the table below. (U.S. Dollars, in thousands) December 31, 2017 Impact of Adoption of ASC 606 January 1, 2018 Assets Current assets Cash and cash equivalents $ 81,157 $ — $ 81,157 Accounts receivable, net 63,437 8,648 72,085 Inventories 81,330 (2,338 ) 78,992 Prepaid expenses and other current assets 25,877 — 25,877 Total current assets 251,801 6,310 258,111 Deferred income taxes 23,315 (1,549 ) 21,766 Other long-term assets 130,238 — 130,238 Total assets $ 405,354 $ 4,761 $ 410,115 Liabilities and shareholders’ equity Total liabilities 108,746 — 108,746 Shareholders’ equity Common shares 1,828 — 1,828 Additional paid-in capital 220,591 — 220,591 Retained earnings 70,402 4,761 75,163 Accumulated other comprehensive income 3,787 — 3,787 Total shareholders’ equity 296,608 4,761 301,369 Total liabilities and shareholders’ equity $ 405,354 $ 4,761 $ 410,115 The impact primarily related to an increase in trade accounts receivable, net, from the Company’s stocking distributors, for which revenue was historically recognized when cash payment was received, and the recognition of previously deferred cost of sales for certain stocking distributor transactions, which were historically included within inventory. Adoption of Topic 606 had no impact to cash from or used in operating, investing, or financing activities on the consolidated statement of cash flows. The table below presents the impact to the Company’s consolidated statement of operations for the three months ended March 31, 2018 as a result of the adoption of Topic 606. Three Months Ended March 31, 2018 (U.S. Dollars, in thousands) Based on historical accounting under Topic 605 Impact of adoption As reported under Topic 606 Net sales $ 101,362 $ 7,347 $ 108,709 Cost of sales 22,116 2,031 24,147 Gross profit 79,246 5,316 84,562 Sales and marketing 50,361 (93 ) 50,268 Other operating expenses 26,421 — 26,421 Operating income $ 2,464 $ 5,409 $ 7,873 Income tax expense (3,918 ) (1,455 ) (5,373 ) Net income from continuing operations $ 1,275 $ 3,954 $ 5,229 Net income from continuing operations per common share—basic $ 0.07 $ 0.21 $ 0.28 Net income from continuing operations per common share—diluted $ 0.07 $ 0.20 $ 0.27 Revenue Recognition Under Topic 606 The Company accounts for a contract when there is approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance, and collectability of consideration is probable. The Company’s contracts may contain one or more performance obligations. If a contract contains more than one performance obligation, the Company allocates the total transaction price to each of the performance obligations based upon the observable standalone selling price of the promised goods or services underlying each performance obligation. The Company recognizes revenue when control of the promised goods or services is transferred to the customer, which typically occurs at a point in time upon shipment, delivery, or utilization, in an amount that reflects the consideration which the Company expects to be entitled in exchange for the promised goods or services. The amount the Company expects to be entitled to in exchange for the goods or services reflects any fixed amount stated per the contract and estimates for any variable consideration, such as discounts, to the extent that is it probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. BioStim BioStim revenue is largely attributable to the U.S. and is comprised of third-party payor transactions and wholesale revenue. The largest portion of BioStim revenue is derived from third-party payors. This includes commercial insurance carriers, health maintenance organizations, preferred provider organizations and governmental payors such as Medicare, in connection with the sale of the Company’s stimulation products. The customer obtains control and revenue is recognized when the stimulation product is fitted to and accepted by the patient and all applicable documents that are required by the third-party payor have been obtained. Amounts paid by these third-party payors are generally based on fixed or allowable reimbursement rates. These revenues are recorded at the expected or preauthorized reimbursement rates, net of any contractual allowances or adjustments. Certain billings are subject to review by the third-party payors and may be subject to adjustment. Adoption of Topic 606 had an immaterial impact to the BioStim SBU. Wholesale revenue is related to the sale of the Company’s bone growth stimulators directly to physicians and other healthcare providers. Wholesale revenues are typically recognized upon shipment and receipt of a confirming purchase order, which is when the customer obtains control of the promised goods. Extremity Fixation and Spine Fixation Extremity Fixation and Spine Fixation products are distributed world-wide, with U.S. sales largely comprised of commercial revenue and international sales derived from commercial sales and through stocking distributor arrangements. Commercial revenue is related to the sale of the Company’s internal and external fixation products, generally representing hospital customers. The customer obtains control and revenues are recognized when these products have been utilized and a confirming purchase order has been received from the hospital. Certain revenue within the Extremity Fixation and Spine Fixation SBUs are derived from stocking distributors, who purchase the Company’s products and then re-sell them directly to customers, such as hospitals. For revenue from stocking distributor arrangements, subsequent to the adoption of Topic 606 effective January 1, 2018, the Company recognizes revenue upon shipment and receipt of a confirming purchase order, which is when the distributor obtains control of the promised goods. The transaction price with stocking distributors is estimated based upon the Company’s historical collection experience with the stocking distributor. To derive this estimate, the Company analyzes twelve months of historical invoices by stocking distributor and the subsequent collections on those invoices, for a period of up to 24 months subsequent to the invoice date. This percentage, which is specific to each stocking distributor, is then used to calculate the transaction price. Cost of sales is also recorded upon transfer of control of the product to the customer. Prior to the adoption of Topic 606, or for all periods presented prior to January 1, 2018, the Company recognized revenue from stocking distributor arrangements once the product was delivered to the end customer (the “sell-through method”). Because the Company did not have reliable information about when its distributors sold the product through to end customers, the Company used cash collection from distributors as a basis for revenue recognition under the sell-through method. Although in many cases the Company was legally entitled to the accounts receivable at the time of shipment, the Company did not recognize accounts receivables or any corresponding deferred revenues at the time of shipment associated with stocking distributor transactions for which revenue was recognized on the sell-through method. The Company also considered whether to match the related cost of sales with revenue or to recognize cost of sales upon shipment. In making this assessment, the Company considered the financial viability of its stocking distributors based on their creditworthiness to determine if collectability of amounts sufficient to realize the costs of the products shipped was reasonably assured at the time of shipment to these stocking distributors. In instances where the stocking distributor was determined to be financially viable, the Company deferred the costs of sales until the revenue was recognized. Biologics Biologics revenue is largely attributable to the U.S. and is primarily related to a collaborative arrangement with MTF Biologics (“MTF”), which extends through July 28, 2027, through which the Company markets tissue for bone repair and reconstruction under the brand names Trinity Evolution and Trinity ELITE. Under the terms of the agreement, MTF sources the tissue, processes it to create the bone growth matrix, packages and delivers it to the customer in accordance with orders received from the Company. The Company has exclusive global marketing rights for the Trinity Evolution and Trinity ELITE tissues as well as non-exclusive marketing rights for other products, and receives marketing fees from MTF based on total sales. MTF is considered the primary obligor in these arrangements and therefore the Company recognizes these marketing service fees on a net basis within net sales upon shipment of the product to the customer. Adoption of Topic 606 had an immaterial impact to the Biologics SBU. Product Sales and Marketing Service Fees The table below presents net sales, which includes product sales and marketing service fees, for the three months ended March 31, 2018 and 2017. Three Months Ended March 31, (U.S. Dollars, in thousands) 2018 2017 Product sales $ 94,889 $ 88,401 Marketing service fees 13,820 14,337 Net sales $ 108,709 $ 102,738 Product sales primarily consist of the sale of bone growth stimulation devices and internal and external fixation products. Marketing service fees are received from MTF based on total sales of biologics tissues and relates solely to the Biologics SBU. Revenues exclude any value added or other local taxes, intercompany sales and trade discounts. Shipping and handling costs for products shipped to customers are included in cost of sales. Trade Accounts Receivable and Allowances Payment terms vary by the type and location of the Company’s customers and the products or services offered. The term between invoicing and when payment is due is not significant. Accounts receivable are analyzed on a quarterly basis to assess the adequacy of both reserves for doubtful accounts and contractual allowances. Revisions in allowances for doubtful accounts estimates are recorded as an adjustment to bad debt expense within sales and marketing expenses. Revisions to contractual allowances are recorded as an adjustment to net sales. The Company’s estimates are periodically tested against actual collection experience. Other Contract Assets The Company’s contract assets, excluding trade accounts receivable (“other contract assets”), largely consist of payments made to certain distributors to obtain contracts, gain access to customers in certain territories, and to provide the benefit of the exclusive distribution of Orthofix products. Other contract assets are included in other long-term assets and were $0.8 million and $1.0 million as of March 31, 2018, and December 31, 2017, respectively. Other contract assets are amortized on a straight-line basis over the term of the related contract. There were no changes to such treatment as a result of adoption of Topic 606. No impairments were incurred for other contract assets in 2018 or 2017. Further, the Company has applied the practical expedient allowed within the guidance to expense sales commissions when incurred as the amortization period would be for one year or less. |
Business segment information
Business segment information | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Business segment information | 8. Business segment information The table below present net sales, which includes product sales and marketing service fees, by reporting segment: Three Months Ended March 31, (U.S. Dollars, in thousands) 2018 2017 Change BioStim $ 46,163 $ 44,539 3.6 % Extremity Fixation 27,504 23,945 14.9 % Spine Fixation 20,707 19,267 7.5 % Biologics 14,335 14,987 -4.4 % Net sales $ 108,709 $ 102,738 5.8 % The primary metric used in managing the Company is non-GAAP net margin, which is an internal metric that the Company defines as gross profit less sales and marketing expense. The table below presents non-GAAP net margin by reporting segment: Three Months Ended March 31, (U.S. Dollars, in thousands) 2018 2017 BioStim $ 18,946 $ 17,133 Extremity Fixation 8,158 6,412 Spine Fixation 1,261 2,007 Biologics 6,080 6,171 Corporate (151 ) (98 ) Non-GAAP net margin $ 34,294 $ 31,625 General and administrative 19,484 18,282 Research and development 6,937 7,424 Operating income $ 7,873 $ 5,919 Interest income (expense), net (183 ) 45 Other income (expense), net 2,912 (4,348 ) Income before income taxes $ 10,602 $ 1,616 Geographical information The table below present net sales by geographic destination for each reporting unit and for the consolidated Company: Three Months Ended March 31, (U.S. Dollars, in thousands) 2018 2017 BioStim U.S. $ 46,137 $ 44,539 International 26 — Total BioStim 46,163 44,539 Extremity Fixation U.S. 6,916 6,579 International 20,588 17,366 Total Extremity Fixation 27,504 23,945 Spine Fixation U.S. 17,579 16,035 International 3,128 3,232 Total Spine Fixation 20,707 19,267 Biologics U.S. 14,322 14,963 International 13 24 Total Biologics 14,335 14,987 Consolidated U.S. 84,954 82,116 International 23,755 20,622 Net sales $ 108,709 $ 102,738 |
Share-based compensation
Share-based compensation | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-based compensation | 9. Share-based compensation The following tables present the detail of share-based compensation by line item in the condensed consolidated statements of operations as well as by award type: Three Months Ended March 31, (U.S. Dollars, in thousands) 2018 2017 Cost of sales $ 125 $ 149 Sales and marketing 449 360 General and administrative 3,045 2,102 Research and development 297 205 $ 3,916 $ 2,816 Three Months Ended March 31, (U.S. Dollars, in thousands) 2018 2017 Stock options $ 622 $ 595 Time-based restricted stock awards 1,447 1,292 Performance-based restricted stock awards 489 112 Performance-based and market-based restricted stock units 953 466 Stock purchase plan 405 351 $ 3,916 $ 2,816 During the three months ended March 31, 2018 and 2017, the Company issued 126,511 and 214,679 shares, respectively, of common stock related to stock purchase plan issuances, stock option exercises and the vesting of restricted stock awards. |
Income taxes
Income taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income taxes | 10. Income taxes Income tax provisions for interim periods are based on an estimated annual income tax rate, adjusted for discrete tax items. As a result, the Company’s interim effective tax rates may vary significantly from the statutory tax rate and the annual effective tax rate. For the three months ended March 31, 2018 and 2017, the effective tax rate on continuing operations was 50.7% and 242.8%, respectively. The primary factors affecting the Company’s effective tax rate for the three months ended March 31, 2018, were the decrease in the U.S. statutory tax rate enacted in December 2017, the increase in pre-tax earnings, the mix of earnings among tax jurisdictions, and current period losses in certain jurisdictions for which the Company does not currently receive a tax benefit. During the first quarter of 2018, the Internal Revenue Service concluded an examination of the Company’s federal income tax return for 2012 with no material impact on the financial statements. In November 2017, the Company was notified of an examination of its federal income tax return for 2015. The Company cannot reasonably determine if this examination, or any state and local tax examinations, will have a material impact on its financial statements and cannot predict the timing regarding resolution of these tax examinations. In the fourth quarter of 2017, the Company recorded tax expense of $8.3 million that represents what it believes is the impact of the enactment of the Tax Act. The expense was based on currently available information and interpretations, which are continuing to evolve, and as a result the expense is considered provisional. The Company has continued to analyze additional information and guidance related to the Tax Act as supplemental legislation, regulatory guidance, or evolving technical interpretations become available. Based on supplemental legislation issued during 2018, the Company recorded tax benefit of $0.5 million in the first quarter of 2018. The Company will continue to refine such amounts within the measurement period as provided by Staff Accounting Bulletin No. 118 and expects to complete its analysis no later than the fourth quarter of 2018. |
Earnings per share ("EPS")
Earnings per share ("EPS") | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per share ("EPS") | 11. Earnings per share (“EPS”) For the three months ended March 31, 2018 and 2017, no significant adjustments were made to net income (loss) for purposes of calculating basic and diluted EPS. Three Months Ended March 31, 2018 2017 Weighted average common shares-basic 18,404,856 17,979,675 Effect of dilutive securities Unexercised stock options and stock purchase plan 308,537 — Unvested restricted stock awards and units 161,198 — Weighted average common shares-diluted 18,874,591 17,979,675 There were 122,678 and 1,019,185 outstanding options, restricted stock, and performance-based or market-based equity awards not included in the diluted earnings per share computation for the three months ended March 31, 2018 and 2017, respectively, because inclusion of these awards was anti-dilutive or, for performance-based and market-based awards, all necessary conditions had not been satisfied by the end of the respective period. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 12. Subsequent events On April 30, 2018, the Company completed the acquisition of Spinal Kinetics Inc. (“Spinal Kinetics”), a privately held developer and manufacturer of artificial cervical and lumbar discs. Terms of the transaction included $45 million in cash plus up to an additional $60 million in future contingent milestone payments related to U.S. Food and Drug Administration approval of the M6-C® cervical disc and the achievement of certain future sales targets. These contingent milestones payments must be achieved within five years of closing. |
Recently adopted accounting s19
Recently adopted accounting standards and recently issued accounting pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Changes And Error Corrections [Abstract] | |
Recently adopted accounting standards and recently issued accounting pronouncements | 1. Recently adopted accounting standards and recently issued accounting pronouncements Adoption of accounting standards update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) In May 2014, the FASB issued ASU 2014-09. Topic 606 supersedes the revenue recognition requirements in Topic 605, Revenue Recognition Adoption of ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10), and ASU 2018-03, Technical Corrections and Improvements to Financial Instruments In January 2016, the FASB issued ASU 2016-01, which was then further clarified in ASU 2018-03, in February 2018. This guidance requires entities to generally measure equity investments at fair value and recognize any changes in fair value in net income. However, for certain equity investments that do not have readily determinable fair values, the new guidance allows entities to choose to measure these investments using a new measurement alternative, which values the investments at cost, less any impairments, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. The Company prospectively adopted both ASU 2016-01 and ASU 2018-03 on January 1, 2018 and elected to use the new measurement alternative for the Company’s equity investments in Bone Biologics, Inc. (“Bone Biologics”), which have historically been held at cost. This resulted in an increase in the previously recorded value of the Company’s equity investments in Bone Biologics, which are recorded within other long term assets, of $1.6 million, or $0.09 per share before taxes, which was included in other income. See Note 4 for further details. Adoption of ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory In October 2016, the FASB issued ASU 2016-16, which reduces diversity in practice of accounting for intra-entity transfers of assets, particularly for intra-entity transfers of intellectual property. The new standard states an entity should recognize the income tax consequences of an intra-entity transfer when the transfer occurs, as opposed to historical U.S. GAAP guidance which prohibited the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset had been sold to an outside party. During the third and fourth quarters of 2017, the Company executed two intra-entity asset transfers that resulted in prepaid income taxes of $8.6 million. The Company adopted this new standard using a modified retrospective approach as of January 1, 2018, which resulted in a reduction of prepaid income taxes and an increase in deferred tax assets with these changes offset by an adjustment to the Company's opening retained earnings of approximately $1.9 million. Adoption of this guidance did not have a material impact to the Company’s consolidated statements of operations and comprehensive income (loss) or to its consolidated statements of cash flows. Adoption of ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash In November 2016, the FASB issued ASU 2016-18, which reduces diversity in classification and presentation of restricted cash, including transfers between cash and restricted cash, on the statement of cash flows. Adoption of ASU 2017-01, Business Combinations (Topic 805) In January 2017, the FASB issued ASU 2017-01, which clarifies the definition of a business. This amendment states that when substantially all of the fair value of gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, that the set of assets acquired is not a business, which will likely result in more acquisitions being accounted for as asset acquisitions rather than business combinations. Based upon this guidance, which the Company adopted as of January 1, 2018, the Company accounted for an acquisition during the first quarter of 2018 for approximately $1.9 million as an asset acquisition rather than a business combination, as the set of assets acquired did not meet the definition of a business. Recently issued accounting pronouncements Topic Description of Guidance Effective Date Status of Company's Evaluation Leases (ASU 2016-02) Requires a lessee to recognize lease assets and lease liabilities for leases classified as operating leases. Applied using a modified retrospective approach. January 1, 2019 The Company has established a cross-functional implementation team to analyze the impact of the standard on the Company's population of leases and to evaluate the Company's current accounting policies relating to leases. The Company is currently evaluating the impact this ASU may have on its consolidated financial statements; however, the Company expects this guidance will materially impact the Company's consolidated balance sheet, resulting in current operating lease obligations being reflected on the consolidated balance sheet. Goodwill (ASU 2017-04) Eliminates Step 2 of the current goodwill impairment test, which requires a hypothetical purchase price allocation to measure goodwill impairment. A goodwill impairment loss will instead be measured at the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the recorded amount of goodwill. Applied on a prospective basis, with early adoption permitted. January 1, 2020 The Company is currently evaluating the impact this ASU may have on its consolidated financial statements. However, the Company does not expect this ASU to have a significant impact on its financial statements or disclosures. Comprehensive income (ASU 2018-02) Allows entities to reclassify from accumulated other comprehensive income to retained earnings stranded tax effects resulting from the Tax Cuts and Jobs Act (the "Tax Act"). Applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act is recognized. January 1, 2019 The Company is currently evaluating the impact this ASU may have on its consolidated financial statements. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories were as follows: (U.S. Dollars, in thousands) March 31, 2018 December 31, 2017 Raw materials $ 5,889 $ 6,067 Work-in-process 13,666 12,487 Finished products 58,131 60,441 Deferred cost of sales — 2,335 Inventories $ 77,686 $ 81,330 |
Fair value measurements (Tables
Fair value measurements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The fair value of the Company’s financial assets and liabilities measured on a recurring basis were as follows: March 31, 2018 December 31, 2017 (U.S. Dollars, in thousands) Level 1 Level 2 Level 3 Total Total Assets Collective trust funds $ — $ 100 $ — $ 100 $ 100 Treasury securities 563 — — 563 556 Equity warrants — 519 — 519 311 Equity securities — 4,379 — 4,379 2,457 Debt security — — 16,050 16,050 16,050 Total $ 563 $ 4,998 $ 16,050 $ 21,611 $ 19,474 Liabilities Deferred compensation plan $ — $ (1,398 ) $ — $ (1,398 ) $ (1,379 ) Total $ — $ (1,398 ) $ — $ (1,398 ) $ (1,379 ) |
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) 2018 2017 Balance at January 1 $ 16,050 $ 12,220 Accrued interest income — — Gains or losses recorded for the period Recognized in net income — (5,585 ) Recognized in other comprehensive income — 2,365 Balance at March 31 $ 16,050 $ 9,000 |
Accumulated other comprehensi22
Accumulated other comprehensive loss (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Components of Changes in Accumulated Other Comprehensive Income (Loss) | The components of and changes in accumulated other comprehensive loss were as follows: (U.S. Dollars, in thousands) Currency Translation Adjustments Debt Security Accumulated Other Comprehensive Loss Balance at December 31, 2017 $ (563 ) $ 4,350 $ 3,787 Other comprehensive income 697 — 697 Income taxes — — — Balance at March 31, 2018 $ 134 $ 4,350 $ 4,484 |
Revenue recognition and accou23
Revenue recognition and accounts receivable (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue Recognition And Accounts Receivable [Abstract] | |
Summary of Cumulative Impact of Adoption under Topic 606 | The Company recorded a net increase to opening retained earnings of $4.8 million as of January 1, 2018 due to the cumulative impact of adopting Topic 606 as presented in the table below. (U.S. Dollars, in thousands) December 31, 2017 Impact of Adoption of ASC 606 January 1, 2018 Assets Current assets Cash and cash equivalents $ 81,157 $ — $ 81,157 Accounts receivable, net 63,437 8,648 72,085 Inventories 81,330 (2,338 ) 78,992 Prepaid expenses and other current assets 25,877 — 25,877 Total current assets 251,801 6,310 258,111 Deferred income taxes 23,315 (1,549 ) 21,766 Other long-term assets 130,238 — 130,238 Total assets $ 405,354 $ 4,761 $ 410,115 Liabilities and shareholders’ equity Total liabilities 108,746 — 108,746 Shareholders’ equity Common shares 1,828 — 1,828 Additional paid-in capital 220,591 — 220,591 Retained earnings 70,402 4,761 75,163 Accumulated other comprehensive income 3,787 — 3,787 Total shareholders’ equity 296,608 4,761 301,369 Total liabilities and shareholders’ equity $ 405,354 $ 4,761 $ 410,115 The table below presents the impact to the Company’s consolidated statement of operations for the three months ended March 31, 2018 as a result of the adoption of Topic 606. Three Months Ended March 31, 2018 (U.S. Dollars, in thousands) Based on historical accounting under Topic 605 Impact of adoption As reported under Topic 606 Net sales $ 101,362 $ 7,347 $ 108,709 Cost of sales 22,116 2,031 24,147 Gross profit 79,246 5,316 84,562 Sales and marketing 50,361 (93 ) 50,268 Other operating expenses 26,421 — 26,421 Operating income $ 2,464 $ 5,409 $ 7,873 Income tax expense (3,918 ) (1,455 ) (5,373 ) Net income from continuing operations $ 1,275 $ 3,954 $ 5,229 Net income from continuing operations per common share—basic $ 0.07 $ 0.21 $ 0.28 Net income from continuing operations per common share—diluted $ 0.07 $ 0.20 $ 0.27 |
Schedule of Net Sales | The table below presents net sales, which includes product sales and marketing service fees, for the three months ended March 31, 2018 and 2017. Three Months Ended March 31, (U.S. Dollars, in thousands) 2018 2017 Product sales $ 94,889 $ 88,401 Marketing service fees 13,820 14,337 Net sales $ 108,709 $ 102,738 |
Business segment information (T
Business segment information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Net Sales by Reporting Segment | The table below present net sales, which includes product sales and marketing service fees, by reporting segment: Three Months Ended March 31, (U.S. Dollars, in thousands) 2018 2017 Change BioStim $ 46,163 $ 44,539 3.6 % Extremity Fixation 27,504 23,945 14.9 % Spine Fixation 20,707 19,267 7.5 % Biologics 14,335 14,987 -4.4 % Net sales $ 108,709 $ 102,738 5.8 % |
Summary of Non-GAAP Net Margin by Reporting Segment | The table below presents non-GAAP net margin by reporting segment: Three Months Ended March 31, (U.S. Dollars, in thousands) 2018 2017 BioStim $ 18,946 $ 17,133 Extremity Fixation 8,158 6,412 Spine Fixation 1,261 2,007 Biologics 6,080 6,171 Corporate (151 ) (98 ) Non-GAAP net margin $ 34,294 $ 31,625 General and administrative 19,484 18,282 Research and development 6,937 7,424 Operating income $ 7,873 $ 5,919 Interest income (expense), net (183 ) 45 Other income (expense), net 2,912 (4,348 ) Income before income taxes $ 10,602 $ 1,616 |
Summary of Net Sales by Geographic Destination for Each Reporting Unit | Geographical information The table below present net sales by geographic destination for each reporting unit and for the consolidated Company: Three Months Ended March 31, (U.S. Dollars, in thousands) 2018 2017 BioStim U.S. $ 46,137 $ 44,539 International 26 — Total BioStim 46,163 44,539 Extremity Fixation U.S. 6,916 6,579 International 20,588 17,366 Total Extremity Fixation 27,504 23,945 Spine Fixation U.S. 17,579 16,035 International 3,128 3,232 Total Spine Fixation 20,707 19,267 Biologics U.S. 14,322 14,963 International 13 24 Total Biologics 14,335 14,987 Consolidated U.S. 84,954 82,116 International 23,755 20,622 Net sales $ 108,709 $ 102,738 |
Share-based compensation (Table
Share-based compensation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Share-Based Compensation by Line Item in Condensed Consolidated Statements of Operations | The following tables present the detail of share-based compensation by line item in the condensed consolidated statements of operations as well as by award type: Three Months Ended March 31, (U.S. Dollars, in thousands) 2018 2017 Cost of sales $ 125 $ 149 Sales and marketing 449 360 General and administrative 3,045 2,102 Research and development 297 205 $ 3,916 $ 2,816 Three Months Ended March 31, (U.S. Dollars, in thousands) 2018 2017 Stock options $ 622 $ 595 Time-based restricted stock awards 1,447 1,292 Performance-based restricted stock awards 489 112 Performance-based and market-based restricted stock units 953 466 Stock purchase plan 405 351 $ 3,916 $ 2,816 |
Earnings per share ("EPS") (Tab
Earnings per share ("EPS") (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Weighted Average Shares Used in Diluted EPS | The following is a reconciliation of the weighted average shares used in diluted EPS computations. Three Months Ended March 31, 2018 2017 Weighted average common shares-basic 18,404,856 17,979,675 Effect of dilutive securities Unexercised stock options and stock purchase plan 308,537 — Unvested restricted stock awards and units 161,198 — Weighted average common shares-diluted 18,874,591 17,979,675 |
Business and Basis of Present27
Business and Basis of Presentation - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2018Segment | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number Of Reporting Units | 4 |
Recently Adopted Accounting S28
Recently Adopted Accounting Standards and Recently Issued Accounting Pronouncements - Additional Information (Detail) $ / shares in Units, $ in Thousands | Jan. 01, 2018USD ($)$ / shares | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($)Asset |
Summary Of Significant Accounting Policies [Line Items] | ||||
Prepaid income taxes | $ 8,600 | |||
Number of assets transferred | Asset | 2 | |||
Increase (decrease) in net cash from operating activities | $ (3,560) | $ (10,899) | ||
ASU 2016-01 and 2018-03 [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Impact on remeasurement of equity investments recorded within other long term assets | $ 1,600 | |||
Impact on remeasurement of equity investments per share before taxes recorded within other income | $ / shares | $ 0.09 | |||
ASU 2016-16, as Amended [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Cumulative-effect adjustment to retained earnings | $ 1,900 | |||
ASU 2016-18 [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Increase (decrease) in net cash from operating activities | $ (14,400) | |||
ASU 2017-01 [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Assets Acquired Not Meeting The Definition of a Business | $ 1,900 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 5,889 | $ 6,067 |
Work-in-process | 13,666 | 12,487 |
Finished products | 58,131 | 60,441 |
Deferred cost of sales | 2,335 | |
Inventories | $ 77,686 | $ 81,330 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) | 3 Months Ended | ||
Mar. 31, 2018USD ($) | Mar. 31, 2018EUR (€) | Aug. 31, 2015USD ($) | |
Italy [Member] | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 7,100,000 | € 5,800,000 | |
Amount outstanding under lines of credit | $ 0 | ||
2015 Credit Agreement [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument term (in years) | 5 years | ||
Maximum borrowing capacity | $ 125,000,000 | ||
Amount outstanding under lines of credit | $ 0 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Debt Security [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Assets fair value | $ 16,050 | $ 16,050 | $ 9,000 | $ 12,220 |
Fair Value, Measurements, Recurring [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Assets fair value | 21,611 | 19,474 | ||
Deferred compensation plan, Liabilities | (1,398) | (1,379) | ||
Liabilities fair value, Total | (1,398) | (1,379) | ||
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 | 563 | |||
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 | 4,998 | |||
Deferred compensation plan, Liabilities | (1,398) | |||
Liabilities fair value, Total | (1,398) | |||
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 | 16,050 | |||
Fair Value, Measurements, Recurring [Member] | Collective Trust Funds [Member] | Other Noncurrent Assets [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Assets fair value | 100 | 100 | ||
Fair Value, Measurements, Recurring [Member] | Collective Trust Funds [Member] | Fair Value, Inputs, Level 2 [Member] | Other Noncurrent Assets [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Assets fair value | 100 | |||
Fair Value, Measurements, Recurring [Member] | Treasury Securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Assets fair value | 563 | 556 | ||
Fair Value, Measurements, Recurring [Member] | Treasury Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Assets fair value | 563 | |||
Fair Value, Measurements, Recurring [Member] | Equity Warrants [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Assets fair value | 519 | 311 | ||
Fair Value, Measurements, Recurring [Member] | Equity Warrants [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Assets fair value | 519 | |||
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Assets fair value | 4,379 | 2,457 | ||
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Assets fair value | 4,379 | |||
Fair Value, Measurements, Recurring [Member] | Debt Security [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Assets fair value | 16,050 | $ 16,050 | ||
Fair Value, Measurements, Recurring [Member] | Debt Security [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Assets fair value | $ 16,050 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jan. 01, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Amortized cost basis in debt security | $ 9,000 | ||||
Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Fair value of debt securities | 16,050 | $ 16,050 | $ 9,000 | $ 12,220 | |
Bone Biologics Inc [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Purchase of common stock, value | $ 500 | ||||
Bone Biologics Inc [Member] | Common Stock [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Purchase of stock, shares | 250,000 | ||||
ASU 2016-01 [Member] | Bone Biologics Inc [Member] | Equity Investments [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Increase in previously recorded value of equity investments resulted from new measurement | $ 1,600 | ||||
Impact on remeasurement of equity investments per share before taxes included within other income | $ 0.09 |
Fair Value Measurements - Sch33
Fair Value Measurements - Schedule of Reconciliation of Debt Securities (Detail) - Debt Securities [Member] - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | $ 16,050 | $ 12,220 |
Accrued interest income | 0 | 0 |
Gains or losses recorded for the period | ||
Recognized in net income | 0 | (5,585) |
Recognized in other comprehensive income | 0 | 2,365 |
Ending balance | $ 16,050 | $ 9,000 |
Contingencies - Additional Info
Contingencies - Additional Information (Detail) - Mar. 31, 2018 € in Millions, $ in Millions | USD ($) | EUR (€) |
Commitments And Contingencies Disclosure [Abstract] | ||
Discontinued operations for compensatory damages and exemplary damages | $ 1.7 | |
Accrued liabilities | $ 3.2 | € 2.6 |
Accumulated Other Comprehensi35
Accumulated Other Comprehensive Loss - Components of Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | $ 296,608 | |
Other comprehensive income | 697 | |
Income taxes | 5,373 | $ 3,924 |
Ending Balance | 313,174 | |
Currency Translation Adjustments [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | (563) | |
Other comprehensive income | 697 | |
Ending Balance | 134 | |
Debt Security [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | 4,350 | |
Ending Balance | 4,350 | |
Accumulated Other Comprehensive Income (Loss) [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | 3,787 | |
Ending Balance | $ 4,484 |
Revenue Recognition and Accou36
Revenue Recognition and Accounts Receivable - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | |
Other Contract Assets [Member] | |||
Revenue Recognition And Accounts Receivable [Line Items] | |||
Other contract assets impairment | $ 0 | $ 0 | |
Other Noncurrent Assets [Member] | |||
Revenue Recognition And Accounts Receivable [Line Items] | |||
Other contract assets | $ 800,000 | $ 1,000,000 | |
Topic 606 [Member] | |||
Revenue Recognition And Accounts Receivable [Line Items] | |||
Net increase to opening retained earnings due to cumulative impact of adoption | $ 4,800,000 |
Revenue Recognition and Accou37
Revenue Recognition and Accounts Receivable - Schedule of Net Increase to Opening Retained Earnings Due to Cumulative Impact of Adopting (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Current assets | |||
Cash and cash equivalents | $ 77,056 | $ 81,157 | |
Accounts receivable, net of allowances of $8,934 and $8,405, respectively | 77,182 | 63,437 | |
Inventories | 77,686 | 81,330 | |
Prepaid expenses and other current assets | 31,219 | 25,877 | |
Total current assets | 263,143 | 251,801 | |
Deferred income taxes | 28,359 | 23,315 | |
Other long-term assets | 6,814 | 21,073 | |
Total assets | 409,004 | 405,354 | |
Total liabilities | 95,830 | 108,746 | |
Shareholders’ equity | |||
Common shares | 1,841 | 1,828 | |
Additional paid-in capital | 228,356 | 220,591 | |
Retained earnings | 78,493 | 70,402 | |
Accumulated other comprehensive income | 4,484 | 3,787 | |
Total shareholders’ equity | 313,174 | 296,608 | |
Total liabilities and shareholders’ equity | $ 409,004 | 405,354 | |
Effect before Topic 606 [Member] | |||
Current assets | |||
Cash and cash equivalents | 81,157 | ||
Accounts receivable, net of allowances of $8,934 and $8,405, respectively | 63,437 | ||
Inventories | 81,330 | ||
Prepaid expenses and other current assets | 25,877 | ||
Total current assets | 251,801 | ||
Deferred income taxes | 23,315 | ||
Other long-term assets | 130,238 | ||
Total assets | 405,354 | ||
Total liabilities | 108,746 | ||
Shareholders’ equity | |||
Common shares | 1,828 | ||
Additional paid-in capital | 220,591 | ||
Retained earnings | 70,402 | ||
Accumulated other comprehensive income | 3,787 | ||
Total shareholders’ equity | 296,608 | ||
Total liabilities and shareholders’ equity | 405,354 | ||
Topic 606 [Member] | |||
Current assets | |||
Cash and cash equivalents | $ 81,157 | ||
Accounts receivable, net of allowances of $8,934 and $8,405, respectively | 72,085 | ||
Inventories | 78,992 | ||
Prepaid expenses and other current assets | 25,877 | ||
Total current assets | 258,111 | ||
Deferred income taxes | 21,766 | ||
Other long-term assets | 130,238 | ||
Total assets | 410,115 | ||
Total liabilities | 108,746 | ||
Shareholders’ equity | |||
Common shares | 1,828 | ||
Additional paid-in capital | 220,591 | ||
Retained earnings | 75,163 | ||
Accumulated other comprehensive income | 3,787 | ||
Total shareholders’ equity | 301,369 | ||
Total liabilities and shareholders’ equity | $ 410,115 | ||
Topic 606 [Member] | Impact of Adoption of ASC 606 | |||
Current assets | |||
Accounts receivable, net of allowances of $8,934 and $8,405, respectively | 8,648 | ||
Inventories | (2,338) | ||
Total current assets | 6,310 | ||
Deferred income taxes | (1,549) | ||
Total assets | 4,761 | ||
Shareholders’ equity | |||
Retained earnings | 4,761 | ||
Total shareholders’ equity | 4,761 | ||
Total liabilities and shareholders’ equity | $ 4,761 |
Revenue Recognition and Accou38
Revenue Recognition and Accounts Receivable - Summary of Consolidated Statement of Operations As Impact of Adoption (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue Recognition And Accounts Receivable [Line Items] | ||
Net sales | $ 108,709 | $ 102,738 |
Cost of sales | 24,147 | 22,581 |
Gross profit | 84,562 | 80,157 |
Sales and marketing | 50,268 | 48,532 |
Operating income | 7,873 | 5,919 |
Income tax expense | (5,373) | (3,924) |
Net income (loss) from continuing operations | $ 5,229 | $ (2,308) |
Net income from continuing operations per common share—basic | $ 0.28 | $ (0.13) |
Net income from continuing operations per common share—diluted | $ 0.27 | $ (0.13) |
Topic 606 [Member] | ||
Revenue Recognition And Accounts Receivable [Line Items] | ||
Net sales | $ 108,709 | |
Cost of sales | 24,147 | |
Gross profit | 84,562 | |
Sales and marketing | 50,268 | |
Other operating expenses | 26,421 | |
Operating income | 7,873 | |
Income tax expense | (5,373) | |
Net income (loss) from continuing operations | $ 5,229 | |
Net income from continuing operations per common share—basic | $ 0.28 | |
Net income from continuing operations per common share—diluted | $ 0.27 | |
Topic 606 [Member] | Based on Historical Accounting under Topic 605 [Member] | ||
Revenue Recognition And Accounts Receivable [Line Items] | ||
Net sales | $ 101,362 | |
Cost of sales | 22,116 | |
Gross profit | 79,246 | |
Sales and marketing | 50,361 | |
Other operating expenses | 26,421 | |
Operating income | 2,464 | |
Income tax expense | (3,918) | |
Net income (loss) from continuing operations | $ 1,275 | |
Net income from continuing operations per common share—basic | $ 0.07 | |
Net income from continuing operations per common share—diluted | $ 0.07 | |
Topic 606 [Member] | Impact of Adoption of ASC 606 | ||
Revenue Recognition And Accounts Receivable [Line Items] | ||
Net sales | $ 7,347 | |
Cost of sales | 2,031 | |
Gross profit | 5,316 | |
Sales and marketing | (93) | |
Operating income | 5,409 | |
Income tax expense | (1,455) | |
Net income (loss) from continuing operations | $ 3,954 | |
Net income from continuing operations per common share—basic | $ 0.21 | |
Net income from continuing operations per common share—diluted | $ 0.20 |
Revenue Recognition and Accou39
Revenue Recognition and Accounts Receivable - Schedule of Net Sales (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue Recognition [Abstract] | ||
Product sales | $ 94,889 | $ 88,401 |
Marketing service fees | 13,820 | 14,337 |
Net sales | $ 108,709 | $ 102,738 |
Business Segment Information -
Business Segment Information - Schedule of Net Sales by Reporting Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 108,709 | $ 102,738 |
Change | 5.80% | |
BioStim [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 46,163 | 44,539 |
Change | 3.60% | |
Biologics [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 14,335 | 14,987 |
Change | (4.40%) | |
Extremity Fixation [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 27,504 | 23,945 |
Change | 14.90% | |
Spine Fixation [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 20,707 | $ 19,267 |
Change | 7.50% |
Business Segment Information 41
Business Segment Information - Summary of Non-GAAP Net Margin by Reporting Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Non-GAAP net margin | $ 34,294 | $ 31,625 |
General and administrative | 19,484 | 18,282 |
Research and development | 6,937 | 7,424 |
Operating income | 7,873 | 5,919 |
Interest income (expense), net | (183) | 45 |
Other income (expense), net | 2,912 | (4,348) |
Income before income taxes | 10,602 | 1,616 |
Operating Segments [Member] | BioStim [Member] | ||
Segment Reporting Information [Line Items] | ||
Non-GAAP net margin | 18,946 | 17,133 |
Operating Segments [Member] | Biologics [Member] | ||
Segment Reporting Information [Line Items] | ||
Non-GAAP net margin | 6,080 | 6,171 |
Operating Segments [Member] | Extremity Fixation [Member] | ||
Segment Reporting Information [Line Items] | ||
Non-GAAP net margin | 8,158 | 6,412 |
Operating Segments [Member] | Spine Fixation [Member] | ||
Segment Reporting Information [Line Items] | ||
Non-GAAP net margin | 1,261 | 2,007 |
Corporate, Non-Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Non-GAAP net margin | (151) | (98) |
Material Reconciling Items [Member] | ||
Segment Reporting Information [Line Items] | ||
General and administrative | 19,484 | 18,282 |
Research and development | $ 6,937 | $ 7,424 |
Business Segment Information 42
Business Segment Information - Summary of Net Sales by Geographic Destination for Each Reporting Unit (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Net sales | $ 108,709 | $ 102,738 |
BioStim [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Net sales | 46,163 | 44,539 |
Extremity Fixation [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Net sales | 27,504 | 23,945 |
Spine Fixation [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Net sales | 20,707 | 19,267 |
Biologics [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Net sales | 14,335 | 14,987 |
U.S. [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Net sales | 84,954 | 82,116 |
U.S. [Member] | BioStim [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Net sales | 46,137 | 44,539 |
U.S. [Member] | Extremity Fixation [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Net sales | 6,916 | 6,579 |
U.S. [Member] | Spine Fixation [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Net sales | 17,579 | 16,035 |
U.S. [Member] | Biologics [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Net sales | 14,322 | 14,963 |
International [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Net sales | 23,755 | 20,622 |
International [Member] | BioStim [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Net sales | 26 | |
International [Member] | Extremity Fixation [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Net sales | 20,588 | 17,366 |
International [Member] | Spine Fixation [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Net sales | 3,128 | 3,232 |
International [Member] | Biologics [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Net sales | $ 13 | $ 24 |
Share-based Compensation - Sche
Share-based Compensation - Schedule of Share-Based Compensation by Line Item in Condensed Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated share based compensation expense | $ 3,916 | $ 2,816 |
Stock options [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated share based compensation expense | 622 | 595 |
Time-based Restricted Stock Awards [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated share based compensation expense | 1,447 | 1,292 |
Performance-based Restricted Stock Awards [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated share based compensation expense | 489 | 112 |
Performance-based and Market-based Restricted Stock Units [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated share based compensation expense | 953 | 466 |
Stock purchase plan [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated share based compensation expense | 405 | 351 |
Cost of sales [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated share based compensation expense | 125 | 149 |
Sales and marketing [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated share based compensation expense | 449 | 360 |
General and administrative [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated share based compensation expense | 3,045 | 2,102 |
Research and development [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated share based compensation expense | $ 297 | $ 205 |
Share-based Compensation - Addi
Share-based Compensation - Additional Information (Detail) - shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Shares issued under stock purchase plan, stock option exercises and restricted stock | 126,511 | 214,679 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | |
Components Of Income Tax Expense Benefit [Line Items] | |||
Income tax effective rate | 50.70% | 242.80% | |
Income tax expense (benefit) impact of the tax act | $ (0.5) | $ 8.3 | |
Minimum [Member] | |||
Components Of Income Tax Expense Benefit [Line Items] | |||
Decrease in unrecognized tax benefits | 2.1 | ||
Maximum [Member] | |||
Components Of Income Tax Expense Benefit [Line Items] | |||
Decrease in unrecognized tax benefits | $ 4.1 |
Earnings Per Share ("EPS") - Ad
Earnings Per Share ("EPS") - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Adjustments to net income (loss) for calculating basic EPS | $ 0 | $ 0 |
Adjustments to net income (loss) for calculating diluted EPS | $ 0 | $ 0 |
Restricted Stock And Performance Based Equity Awards [Member] | Outstanding Options [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Outstanding awards and options not included in diluted earnings per share | 122,678 | 1,019,185 |
Earnings Per Share ("EPS") - Sc
Earnings Per Share ("EPS") - Schedule of Reconciliation of Weighted Average Shares Used in Diluted EPS (Detail) - shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Line Items] | ||
Weighted average common shares-basic | 18,404,856 | 17,979,675 |
Effect of dilutive securities | ||
Weighted average common shares-diluted | 18,874,591 | 17,979,675 |
Stock Options And Stock Purchase Plan [Member] | ||
Effect of dilutive securities | ||
Effect of diluted securities | 308,537 | |
Restricted Stock Units [Member] | ||
Effect of dilutive securities | ||
Effect of diluted securities | 161,198 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] - Spinal Kinetics [Member] | Apr. 30, 2018USD ($) |
Subsequent Event [Line Items] | |
Business acquisition date | Apr. 30, 2018 |
Purchase price paid at closing | $ 45,000,000 |
Milestone achievement period | 5 years |
Maximum [Member] | |
Subsequent Event [Line Items] | |
Milestone payments | $ 60,000,000 |