| Debt
|
|
|
|
|
|
|
|
Assets divested | |||
Cash and cash equivalents | $ | 76,256 | |
Other current assets | 977 | ||
Property, plant and equipment, net | 4,407 | ||
Amortizing intangible assets, net | 1,931 | ||
Goodwill | 40,830 | ||
Deferred income taxes | 6,446 | ||
Total assets divested | 130,847 | ||
Liabilities transferred | |||
Current liabilities | 2,119 | ||
Net assets divested | $ | 128,728 |
2. | DIVESTITURE AND ACQUISITION (Continued) |
Cash | $ | 478,490 | |
Fair value of Integer common stock | 245,368 | ||
Replacement stock options attributable to pre-acquisition service | 4,508 | ||
Total purchase consideration | $ | 728,366 |
Assets acquired | |||
Current assets | $ | 269,815 | |
Property, plant and equipment | 216,473 | ||
Amortizing intangible assets | 849,000 | ||
Indefinite-lived intangible assets | 70,000 | ||
Goodwill | 660,670 | ||
Other non-current assets | 1,629 | ||
Total assets acquired | 2,067,587 | ||
Liabilities assumed | |||
Current liabilities | 103,986 | ||
Debt assumed | 1,044,675 | ||
Other long-term liabilities | 190,560 | ||
Total liabilities assumed | 1,339,221 | ||
Net assets acquired | $ | 728,366 |
2. | DIVESTITURE AND ACQUISITION (Continued) |
Amortizing Intangible Assets | Fair Value Assigned | Weighted Average Amortization Period (Years) | Estimated Useful Life (Years) | Weighted Average Discount Rate | ||||||
Technology | $ | 160,000 | 7 | 19 | 11.5% | |||||
Customer lists | 689,000 | 14 | 29 | 11.5% | ||||||
$ | 849,000 | 13 | 27 | 11.5% | ||||||
Indefinite-lived Intangible Assets | ||||||||||
Trademarks and tradenames | $ | 70,000 | N/A | N/A | 11.5% |
2. | DIVESTITURE AND ACQUISITION (Continued) |
Three Months Ended | Nine Months Ended | |||||||
October 2, 2015 | October 2, 2015 | |||||||
Sales | $ | 349,561 | $ | 1,085,912 | ||||
Net loss | (9,215 | ) | (3,540 | ) | ||||
Loss per share: | ||||||||
Basic | $ | (0.30 | ) | $ | (0.12 | ) | ||
Diluted | $ | (0.30 | ) | $ | (0.12 | ) |
2. | DIVESTITURE AND ACQUISITION (Continued) |
|
Nine Months Ended | |||||||
(in thousands) | September 30, 2016 | October 2, 2015 | |||||
Noncash investing and financing activities: | |||||||
Property, plant and equipment purchases included in accounts payable | $ | 5,062 | $ | 892 | |||
Purchase of technology included in accrued expenses | 1,000 | — | |||||
Common stock contributed to 401(k) Plan | — | 3,920 | |||||
Deferred financing costs included in accounts payable | — | 7,922 | |||||
Divestiture of noncash assets | 54,591 | — | |||||
Divestiture of liabilities | 2,119 | — |
|
As of | |||||||
September 30, 2016 | January 1, 2016 | ||||||
Raw materials | $ | 114,335 | $ | 107,296 | |||
Work-in-process | 99,892 | 93,729 | |||||
Finished goods | 48,005 | 51,141 | |||||
Total | $ | 262,232 | $ | 252,166 |
|
Gross Carrying Amount | Accumulated Amortization | Foreign Currency Translation | Net Carrying Amount | ||||||||||||
At September 30, 2016 | |||||||||||||||
Purchased technology and patents | $ | 256,719 | $ | (96,381 | ) | $ | 2,750 | $ | 163,088 | ||||||
Customer lists | 759,987 | (55,416 | ) | 4,771 | 709,342 | ||||||||||
Other | 4,534 | (5,126 | ) | 821 | 229 | ||||||||||
Total amortizing intangible assets | $ | 1,021,240 | $ | (156,923 | ) | $ | 8,342 | $ | 872,659 | ||||||
At January 1, 2016 | |||||||||||||||
Purchased technology and patents | $ | 255,776 | $ | (83,708 | ) | $ | 1,444 | $ | 173,512 | ||||||
Customer lists | 761,857 | (40,815 | ) | (986 | ) | 720,056 | |||||||||
Other | 4,534 | (4,946 | ) | 821 | 409 | ||||||||||
Total amortizing intangible assets | $ | 1,022,167 | $ | (129,469 | ) | $ | 1,279 | $ | 893,977 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2016 | October 2, 2015 | September 30, 2016 | October 2, 2015 | ||||||||||||
Cost of sales | $ | 4,228 | $ | 1,324 | $ | 12,708 | $ | 4,240 | |||||||
Selling, general and administrative expenses | 5,109 | 1,831 | 15,368 | 5,474 | |||||||||||
Research, development and engineering costs, net | 136 | 88 | 375 | 294 | |||||||||||
Total intangible asset amortization expense | $ | 9,473 | $ | 3,243 | $ | 28,451 | $ | 10,008 |
Estimated Amortization Expense | |||
Remainder of 2016 | $ | 9,478 | |
2017 | 44,129 | ||
2018 | 45,048 | ||
2019 | 45,135 | ||
2020 | 45,734 | ||
Thereafter | 683,135 | ||
Total estimated amortization expense | $ | 872,659 |
Trademarks and Tradenames | |||
At January 1, 2016 | $ | 90,288 | |
At September 30, 2016 | $ | 90,288 |
5. | INTANGIBLE ASSETS (Continued) |
Greatbatch Medical | QiG | Lake Region Medical | Total | ||||||||||||
At January 1, 2016 | $ | 303,929 | $ | 50,096 | $ | 659,545 | $ | 1,013,570 | |||||||
Goodwill divested (Note 2) | — | (40,830 | ) | — | (40,830 | ) | |||||||||
Purchase accounting adjustments (Note 2) | — | — | (1,118 | ) | (1,118 | ) | |||||||||
Foreign currency translation | 123 | — | 5,590 | 5,713 | |||||||||||
At September 30, 2016 | $ | 304,052 | $ | 9,266 | $ | 664,017 | $ | 977,335 |
|
As of | |||||||
September 30, 2016 | January 1, 2016 | ||||||
Senior secured term loan A | $ | 360,938 | $ | 375,000 | |||
Senior secured term loan B | 1,017,312 | 1,025,000 | |||||
9.125% senior notes due 2023 | 360,000 | 360,000 | |||||
Revolving line of credit | 50,000 | — | |||||
Less unamortized discount on term loan B and debt issuance costs | (42,086 | ) | (45,947 | ) | |||
Total debt | 1,746,164 | 1,714,053 | |||||
Less current portion of long-term debt | 29,000 | 29,000 | |||||
Total long-term debt | $ | 1,717,164 | $ | 1,685,053 |
6. | DEBT (Continued) |
6. | DEBT (Continued) |
Remaining in 2016 | $ | 7,250 | |
2017 | 31,344 | ||
2018 | 40,719 | ||
2019 | 47,750 | ||
2020 | 97,750 | ||
Thereafter | 1,563,437 | ||
Total | $ | 1,788,250 |
6. | DEBT (Continued) |
Notional Amount | Start Date | End Date | Pay Fixed Rate | Receive Current Floating Rate | Fair Value | Balance Sheet Location | ||||||||||||
$ | 200,000 | Jun-17 | Jun-20 | 1.1325 | % | N/A | $ | (974 | ) | Other Long-Term Liabilities | ||||||||
$ | 250,000 | Jul-16 | Jun-17 | 0.615 | % | 0.53 | % | $ | 75 | Prepaid Expenses and Other Current Assets |
At January 1, 2016 | $ | 4,791 | |
Amortization during the period | (745 | ) | |
At September 30, 2016 | $ | 4,046 |
Debt Issuance Costs | Unamortized Discount on TLB Facility | Total | |||||||||
At January 1, 2016 | $ | 35,908 | $ | 10,039 | $ | 45,947 | |||||
Financing costs incurred | 781 | — | 781 | ||||||||
Amortization during the period | (3,669 | ) | (973 | ) | (4,642 | ) | |||||
At September 30, 2016 | $ | 33,020 | $ | 9,066 | $ | 42,086 |
|
At January 1, 2016 | $ | 7,121 | |
Net defined benefit cost | 584 | ||
Benefit payments | (76 | ) | |
Foreign currency translation | 125 | ||
At September 30, 2016 | $ | 7,754 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2016 | October 2, 2015 | September 30, 2016 | October 2, 2015 | ||||||||||||
Service cost | $ | 108 | $ | 76 | $ | 326 | $ | 233 | |||||||
Interest cost | 44 | 15 | 132 | 45 | |||||||||||
Amortization of net loss | 47 | 13 | 140 | 39 | |||||||||||
Expected return on plan assets | (5 | ) | (2 | ) | (14 | ) | (8 | ) | |||||||
Net defined benefit cost | $ | 194 | $ | 102 | $ | 584 | $ | 309 |
|
• | Stock options: Holders of the Company’s stock option awards continued to hold stock options to purchase the same number of shares of Integer common stock at an adjusted exercise price and one new Nuvectra stock option for every three Integer stock options held as of the Record Date, which, in the aggregate, preserved the fair value of the overall awards granted. The adjusted exercise price for Integer stock options was equal to approximately 93% of the original exercise price. The stock option awards will continue to vest over their original vesting period. |
• | Restricted stock and restricted stock units: Holders of the Company’s restricted stock and restricted stock unit awards received one new share of Nuvectra restricted stock and restricted stock unit awards for every three Integer restricted stock and restricted stock unit awards held as of the Record Date. Integer restricted stock and restricted stock unit awards will continue to vest in accordance with their original performance metrics and over their original vesting period. |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2016 | October 2, 2015 | September 30, 2016 | October 2, 2015 | ||||||||||||
Stock options | $ | 663 | $ | 697 | $ | 1,857 | $ | 1,979 | |||||||
Restricted stock and restricted stock units | 1,554 | 1,701 | 5,322 | 5,081 | |||||||||||
401(k) Plan stock contribution | — | 674 | — | 1,984 | |||||||||||
Total stock-based compensation expense | $ | 2,217 | $ | 3,072 | $ | 7,179 | $ | 9,044 | |||||||
Cost of sales | $ | 158 | $ | 685 | $ | 505 | $ | 2,039 | |||||||
Selling, general and administrative expenses | 1,677 | 1,981 | 4,860 | 5,890 | |||||||||||
Research, development and engineering costs, net | 115 | 361 | 408 | 1,070 | |||||||||||
Other operating expenses, net | 267 | 45 | 1,406 | 45 | |||||||||||
Total stock-based compensation expense | $ | 2,217 | $ | 3,072 | $ | 7,179 | $ | 9,044 |
Nine Months Ended | |||||||
September 30, 2016 | October 2, 2015 | ||||||
Weighted average fair value | $ | 9.25 | $ | 12.18 | |||
Risk-free interest rate | 1.56 | % | 1.55 | % | |||
Expected volatility | 26 | % | 26 | % | |||
Expected life (in years) | 5 | 5 | |||||
Expected dividend yield | — | % | — | % |
8. | STOCK-BASED COMPENSATION (Continued) |
Number of Stock Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (In Years) | Aggregate Intrinsic Value (In Millions) | |||||||||
Outstanding at January 1, 2016 | 1,678,900 | $ | 28.32 | |||||||||
Granted | 245,439 | 49.58 | ||||||||||
Exercised | (32,833 | ) | 22.00 | |||||||||
Forfeited or expired | (91,385 | ) | 46.13 | |||||||||
Adjustment due to Spin-off | — | (2.02 | ) | |||||||||
Outstanding at September 30, 2016 | 1,800,121 | $ | 28.41 | 5.8 | $ | 2.3 | ||||||
Exercisable at September 30, 2016 | 1,432,312 | $ | 23.87 | 5.0 | $ | 2.3 |
Time-Vested Activity | Weighted Average Fair Value | |||||
Nonvested at January 1, 2016 | 39,235 | $ | 47.40 | |||
Granted | 48,702 | 50.15 | ||||
Vested | (15,391 | ) | 51.39 | |||
Forfeited | (10,835 | ) | 48.67 | |||
Nonvested at September 30, 2016 | 61,711 | $ | 48.35 |
Performance- Vested Activity | Weighted Average Fair Value | |||||
Nonvested at January 1, 2016 | 577,825 | $ | 25.11 | |||
Granted | 163,651 | 31.20 | ||||
Vested | (249,153 | ) | 15.86 | |||
Forfeited | (119,005 | ) | 32.15 | |||
Nonvested at September 30, 2016 | 373,318 | $ | 31.70 |
|
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2016 | October 2, 2015 | September 30, 2016 | October 2, 2015 | ||||||||||||
2014 investments in capacity and capabilities | $ | 4,542 | $ | 5,116 | $ | 13,821 | $ | 17,854 | |||||||
Orthopedic facilities optimization | 329 | 357 | 628 | 1,348 | |||||||||||
Lake Region Medical consolidations | 2,908 | — | 7,355 | — | |||||||||||
Acquisition and integration costs | 5,319 | 5,202 | 23,143 | 5,366 | |||||||||||
Asset dispositions, severance and other | 272 | 3,169 | 5,057 | 4,881 | |||||||||||
$ | 13,370 | $ | 13,844 | $ | 50,004 | $ | 29,449 |
• | Functions performed at the Company’s facility in Plymouth, MN to manufacture catheters and introducers will transfer into the Company’s existing facility in Tijuana, Mexico. This initiative is expected to be substantially completed in the first half of 2017 and is dependent upon our customers’ validation and qualification of the transferred products as well as regulatory approvals worldwide. |
• | Functions performed at the Company’s facilities in Beaverton, OR and Raynham, MA to manufacture products for the portable medical market were transferred to a new facility in Tijuana, Mexico. Products manufactured at the Beaverton facility, which do not serve the portable medical market, were transferred to the Company’s Raynham facility. This initiative was substantially completed during the first half of 2016. The final closure of the Beaverton, OR site will occur in the fourth quarter of 2016. |
• | The design engineering responsibilities previously performed at the Company’s Cleveland, OH facility were transferred to the Company’s facilities in Minnesota in 2015. |
• | The realignment of the Company’s commercial sales operations was completed in 2015. |
Severance and Retention | Accelerated Depreciation/Asset Write-offs | Other | Total | ||||||||||||
At January 1, 2016 | $ | 1,429 | $ | — | $ | 1,595 | $ | 3,024 | |||||||
Restructuring charges | — | 1,787 | 12,034 | 13,821 | |||||||||||
Write-offs | — | (1,787 | ) | — | (1,787 | ) | |||||||||
Cash payments | (1,246 | ) | — | (13,629 | ) | (14,875 | ) | ||||||||
At September 30, 2016 | $ | 183 | $ | — | $ | — | $ | 183 |
9. | OTHER OPERATING EXPENSES, NET (Continued) |
• | Severance and retention: approximately $11.0 million; |
• | Accelerated depreciation and asset write-offs: approximately $13.0 million; and |
• | Other: $21.0 million – $24.0 million |
Severance and Retention | Accelerated Depreciation/Asset Write-offs | Other | Total | ||||||||||||
At January 1, 2016 | $ | — | $ | — | $ | — | $ | — | |||||||
Restructuring charges | — | 202 | 426 | 628 | |||||||||||
Write-offs | — | (202 | ) | — | (202 | ) | |||||||||
Cash payments | — | (426 | ) | (426 | ) | ||||||||||
At September 30, 2016 | $ | — | $ | — | $ | — | $ | — |
• | Employee costs: $8.0 million - $10.0 million; |
• | Accelerated depreciation and asset write-offs: approximately $1.0 million - $2.0 million; and |
• | Other: $11.0 million - $13.0 million. |
9. | OTHER OPERATING EXPENSES, NET (Continued) |
Employee Costs | Accelerated Depreciation/Asset Write-offs | Other | Total | ||||||||||||
At January 1, 2016 | $ | 3,667 | $ | — | $ | 596 | $ | 4,263 | |||||||
Restructuring charges | 4,646 | 907 | 1,802 | 7,355 | |||||||||||
Write-offs | — | (907 | ) | — | (907 | ) | |||||||||
Cash payments | (7,392 | ) | — | (1,942 | ) | (9,334 | ) | ||||||||
At September 30, 2016 | $ | 921 | $ | — | $ | 456 | $ | 1,377 |
|
|
11. | COMMITMENTS AND CONTINGENCIES (Continued) |
At January 1, 2016 | $ | 3,316 | |
Additions to warranty reserve | 1,568 | ||
Warranty claims settled | (2,351 | ) | |
At September 30, 2016 | $ | 2,533 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2016 | October 2, 2015 | September 30, 2016 | October 2, 2015 | ||||||||||||
Addition in cost of sales | $ | 929 | $ | 562 | $ | 2,316 | $ | 1,226 | |||||||
Ineffective portion of change in fair value | — | — | — | — |
Aggregate Notional Amount | Start Date | End Date | $/Peso | Fair Value | Balance Sheet Location | ||||||||||
$ | 4,120 | Jan 2016 | Dec 2016 | 0.0584 | $ | (506 | ) | Accrued Expenses | |||||||
2,795 | Apr 2016 | Dec 2016 | 0.0565 | (258 | ) | Accrued Expenses | |||||||||
18,490 | Jan 2017 | Sep 2017 | 0.0514 | (415 | ) | Accrued Expenses | |||||||||
6,164 | Oct 2017 | Dec 2017 | 0.0514 | (268 | ) | Other Long-Term Liabilities |
11. | COMMITMENTS AND CONTINGENCIES (Continued) |
|
Defined Benefit Plan Liability | Cash Flow Hedges | Foreign Currency Translation Adjustment | Total Pre-Tax Amount | Tax | Net-of-Tax Amount | ||||||||||||||||||
At July 1, 2016 | $ | (1,179 | ) | $ | (3,746 | ) | $ | 12,668 | $ | 7,743 | $ | 1,806 | $ | 9,549 | |||||||||
Unrealized loss on cash flow hedges | — | (101 | ) | — | (101 | ) | 35 | (66 | ) | ||||||||||||||
Realized loss on foreign currency hedges | — | 929 | — | 929 | (324 | ) | 605 | ||||||||||||||||
Realized loss on interest rate swap hedges | — | 50 | — | 50 | (18 | ) | 32 | ||||||||||||||||
Foreign currency translation gain | — | — | 3,191 | 3,191 | — | 3,191 | |||||||||||||||||
At September 30, 2016 | $ | (1,179 | ) | $ | (2,868 | ) | $ | 15,859 | $ | 11,812 | $ | 1,499 | $ | 13,311 |
Defined Benefit Plan Liability | Cash Flow Hedges | Foreign Currency Translation Adjustment | Total Pre-Tax Amount | Tax | Net-of-Tax Amount | ||||||||||||||||||
At January 1, 2016 | $ | (1,179 | ) | $ | (2,392 | ) | $ | 3,609 | $ | 38 | $ | 1,332 | $ | 1,370 | |||||||||
Unrealized loss on cash flow hedges | — | (2,842 | ) | — | (2,842 | ) | 995 | (1,847 | ) | ||||||||||||||
Realized loss on foreign currency hedges | — | 2,316 | — | 2,316 | (810 | ) | 1,506 | ||||||||||||||||
Realized loss on interest rate swap hedges | — | 50 | — | 50 | (18 | ) | 32 | ||||||||||||||||
Foreign currency translation gain | — | — | 12,250 | 12,250 | — | 12,250 | |||||||||||||||||
At September 30, 2016 | $ | (1,179 | ) | $ | (2,868 | ) | $ | 15,859 | $ | 11,812 | $ | 1,499 | $ | 13,311 |
Defined Benefit Plan Liability | Cash Flow Hedges | Foreign Currency Translation Adjustment | Total Pre-Tax Amount | Tax | Net-of-Tax Amount | ||||||||||||||||||
At July 3, 2015 | $ | (1,181 | ) | $ | (3,619 | ) | $ | 9,839 | $ | 5,039 | $ | 1,784 | $ | 6,823 | |||||||||
Unrealized loss on cash flow hedges | — | (1,670 | ) | — | (1,670 | ) | 584 | (1,086 | ) | ||||||||||||||
Realized loss on foreign currency hedges | — | 562 | — | 562 | (197 | ) | 365 | ||||||||||||||||
Realized loss on interest rate swap hedges | — | 2,169 | — | 2,169 | (759 | ) | 1,410 | ||||||||||||||||
Foreign currency translation gain | — | — | 144 | 144 | — | 144 | |||||||||||||||||
At October 2, 2015 | $ | (1,181 | ) | $ | (2,558 | ) | $ | 9,983 | $ | 6,244 | $ | 1,412 | $ | 7,656 |
Defined Benefit Plan Liability | Cash Flow Hedges | Foreign Currency Translation Adjustment | Total Pre-Tax Amount | Tax | Net-of-Tax Amount | ||||||||||||||||||
At January 2, 2015 | $ | (1,181 | ) | $ | (2,558 | ) | $ | 11,450 | $ | 7,711 | $ | 1,412 | $ | 9,123 | |||||||||
Unrealized loss on cash flow hedges | — | (3,857 | ) | — | (3,857 | ) | 1,350 | (2,507 | ) | ||||||||||||||
Realized loss on foreign currency hedges | — | 1,226 | — | 1,226 | (429 | ) | 797 | ||||||||||||||||
Realized loss on interest rate swap hedges | — | 2,631 | — | 2,631 | (921 | ) | 1,710 | ||||||||||||||||
Foreign currency translation loss | — | — | (1,467 | ) | (1,467 | ) | — | (1,467 | ) | ||||||||||||||
At October 2, 2015 | $ | (1,181 | ) | $ | (2,558 | ) | $ | 9,983 | $ | 6,244 | $ | 1,412 | $ | 7,656 |
|
Fair Value Measurements Using | ||||||||||||||||
At September 30, | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||
Description | 2016 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Assets | ||||||||||||||||
Interest rate swap (Note 6) | $ | 75 | $ | — | $ | 75 | $ | — | ||||||||
Liabilities | ||||||||||||||||
Foreign currency contracts (Note 11) | $ | 1,447 | $ | — | $ | 1,447 | $ | — | ||||||||
Interest rate swap (Note 6) | $ | 974 | $ | — | $ | 974 | $ | — |
14. | FAIR VALUE MEASUREMENTS (Continued) |
|
• | Cardio and Vascular: Includes the legacy Greatbatch Vascular product line sales plus the legacy Lake Region Medical Cardio and Vascular product line sales less the legacy Lake Region Medical Cardiac/Neuromodulation sales. Products include introducers, steerable sheaths, guidewires, catheters, and stimulation therapy components, subassemblies and finished devices that deliver therapies for various markets such as coronary and neurovascular disease, peripheral vascular disease, interventional radiology, vascular access, atrial fibrillation, and interventional cardiology, plus products for medical imaging and pharmaceutical delivery. |
• | Cardiac/Neuromodulation: Includes the legacy Greatbatch Cardiac/Neuromodulation and QiG sales plus the legacy Lake Region Medical Cardiac/Neuromodulation sales previously included in their Cardio and Vascular product line sales. Products include batteries, capacitors, filtered and unfiltered feed-throughs, engineered components, implantable stimulation leads, and enclosures used in implantable medical devices. |
• | Advanced Surgical, Orthopedics, and Portable Medical: Includes legacy Greatbatch Orthopedics and Portable Medical product line sales plus the legacy Lake Region Medical Advanced Surgical product line sales. Products include components, sub-assemblies, finished devices, implants, instruments and delivery systems for a range of surgical technologies to the advanced surgical market, including laparoscopy, orthopedics and general surgery, biopsy and drug delivery, joint preservation and reconstruction, arthroscopy, and engineered tubing solutions. Products also include life-saving and life-enhancing applications comprising of automated external defibrillators, portable oxygen concentrators, ventilators, and powered surgical tools. |
• | Electrochem: Includes the legacy Greatbatch Energy, Military and Environmental product line sales. Products include primary (lithium) cells, and primary and secondary battery packs for demanding applications such as down hole drilling tools. |
15. | BUSINESS SEGMENT, GEOGRAPHIC AND CONCENTRATION RISK INFORMATION (Continued) |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2016 | October 2, 2015 | September 30, 2016 | October 2, 2015 | ||||||||||||
Product line sales: | |||||||||||||||
Cardio and Vascular | $ | 148,273 | $ | 14,107 | $ | 426,142 | $ | 37,370 | |||||||
Cardiac/Neuromodulation | 95,781 | 75,577 | 284,479 | 248,450 | |||||||||||
Advanced Surgical, Orthopedics, and Portable Medical | 95,190 | 44,976 | 290,836 | 150,795 | |||||||||||
Electrochem | 8,870 | 11,977 | 30,361 | 46,232 | |||||||||||
Elimination of interproduct line sales | (1,547 | ) | — | (4,631 | ) | — | |||||||||
Total sales | $ | 346,567 | $ | 146,637 | $ | 1,027,187 | $ | 482,847 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2016 | October 2, 2015 | September 30, 2016 | October 2, 2015 | ||||||||||||
Business segment sales: | |||||||||||||||
Greatbatch Medical | $ | 140,458 | $ | 144,021 | $ | 413,231 | $ | 473,784 | |||||||
QiG | 2,708 | 2,776 | 8,829 | 10,564 | |||||||||||
Lake Region Medical | 203,913 | — | 607,122 | — | |||||||||||
Elimination of intersegment sales(a) | (512 | ) | (160 | ) | (1,995 | ) | (1,501 | ) | |||||||
Total sales | $ | 346,567 | $ | 146,637 | $ | 1,027,187 | $ | 482,847 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2016 | October 2, 2015 | September 30, 2016 | October 2, 2015 | ||||||||||||
Segment income (loss) from operations: | |||||||||||||||
Greatbatch Medical | $ | 15,986 | $ | 21,512 | $ | 41,565 | $ | 72,179 | |||||||
QiG | 562 | (7,680 | ) | (5,347 | ) | (20,132 | ) | ||||||||
Lake Region Medical | 29,906 | — | 78,461 | — | |||||||||||
Total segment income from operations | 46,454 | 13,832 | 114,679 | 52,047 | |||||||||||
Unallocated operating expenses | (9,592 | ) | (12,637 | ) | (37,414 | ) | (28,429 | ) | |||||||
Operating income | 36,862 | 1,195 | 77,265 | 23,618 | |||||||||||
Unallocated expenses, net | (28,145 | ) | (1,189 | ) | (80,623 | ) | (1,857 | ) | |||||||
Income (loss) before provision (benefit) for income taxes | $ | 8,717 | $ | 6 | $ | (3,358 | ) | $ | 21,761 |
15. | BUSINESS SEGMENT, GEOGRAPHIC AND CONCENTRATION RISK INFORMATION (Continued) |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2016 | October 2, 2015 | September 30, 2016 | October 2, 2015 | ||||||||||||
Sales by geographic area: | |||||||||||||||
United States | $ | 206,663 | $ | 71,545 | $ | 612,876 | $ | 217,102 | |||||||
Non-Domestic locations: | |||||||||||||||
Puerto Rico | 41,745 | 26,816 | 120,217 | 98,247 | |||||||||||
Belgium | 14,256 | 12,305 | 52,913 | 45,690 | |||||||||||
Rest of world | 83,903 | 35,971 | 241,181 | 121,808 | |||||||||||
Total sales | $ | 346,567 | $ | 146,637 | $ | 1,027,187 | $ | 482,847 |
Three Months Ended | Nine Months Ended | ||||||
September 30, 2016 | October 2, 2015 | September 30, 2016 | October 2, 2015 | ||||
Customer A | 18% | 17% | 18% | 20% | |||
Customer B | 18% | 19% | 16% | 18% | |||
Customer C | 11% | 10% | 12% | 12% | |||
Total | 47% | 46% | 46% | 50% |
As of | |||||||
September 30, 2016 | January 1, 2016 | ||||||
United States | $ | 263,347 | $ | 264,556 | |||
Rest of world | 118,324 | 114,936 | |||||
Total | $ | 381,671 | $ | 379,492 |
|
16. | IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS (Continued) |
|
14. | FAIR VALUE MEASUREMENTS (Continued) |
|
Assets divested | |||
Cash and cash equivalents | $ | 76,256 | |
Other current assets | 977 | ||
Property, plant and equipment, net | 4,407 | ||
Amortizing intangible assets, net | 1,931 | ||
Goodwill | 40,830 | ||
Deferred income taxes | 6,446 | ||
Total assets divested | 130,847 | ||
Liabilities transferred | |||
Current liabilities | 2,119 | ||
Net assets divested | $ | 128,728 |
Cash | $ | 478,490 | |
Fair value of Integer common stock | 245,368 | ||
Replacement stock options attributable to pre-acquisition service | 4,508 | ||
Total purchase consideration | $ | 728,366 |
Assets acquired | |||
Current assets | $ | 269,815 | |
Property, plant and equipment | 216,473 | ||
Amortizing intangible assets | 849,000 | ||
Indefinite-lived intangible assets | 70,000 | ||
Goodwill | 660,670 | ||
Other non-current assets | 1,629 | ||
Total assets acquired | 2,067,587 | ||
Liabilities assumed | |||
Current liabilities | 103,986 | ||
Debt assumed | 1,044,675 | ||
Other long-term liabilities | 190,560 | ||
Total liabilities assumed | 1,339,221 | ||
Net assets acquired | $ | 728,366 |
Amortizing Intangible Assets | Fair Value Assigned | Weighted Average Amortization Period (Years) | Estimated Useful Life (Years) | Weighted Average Discount Rate | ||||||
Technology | $ | 160,000 | 7 | 19 | 11.5% | |||||
Customer lists | 689,000 | 14 | 29 | 11.5% | ||||||
$ | 849,000 | 13 | 27 | 11.5% | ||||||
Indefinite-lived Intangible Assets | ||||||||||
Trademarks and tradenames | $ | 70,000 | N/A | N/A | 11.5% |
Three Months Ended | Nine Months Ended | |||||||
October 2, 2015 | October 2, 2015 | |||||||
Sales | $ | 349,561 | $ | 1,085,912 | ||||
Net loss | (9,215 | ) | (3,540 | ) | ||||
Loss per share: | ||||||||
Basic | $ | (0.30 | ) | $ | (0.12 | ) | ||
Diluted | $ | (0.30 | ) | $ | (0.12 | ) |
|
Nine Months Ended | |||||||
(in thousands) | September 30, 2016 | October 2, 2015 | |||||
Noncash investing and financing activities: | |||||||
Property, plant and equipment purchases included in accounts payable | $ | 5,062 | $ | 892 | |||
Purchase of technology included in accrued expenses | 1,000 | — | |||||
Common stock contributed to 401(k) Plan | — | 3,920 | |||||
Deferred financing costs included in accounts payable | — | 7,922 | |||||
Divestiture of noncash assets | 54,591 | — | |||||
Divestiture of liabilities | 2,119 | — |
|
As of | |||||||
September 30, 2016 | January 1, 2016 | ||||||
Raw materials | $ | 114,335 | $ | 107,296 | |||
Work-in-process | 99,892 | 93,729 | |||||
Finished goods | 48,005 | 51,141 | |||||
Total | $ | 262,232 | $ | 252,166 |
|
Gross Carrying Amount | Accumulated Amortization | Foreign Currency Translation | Net Carrying Amount | ||||||||||||
At September 30, 2016 | |||||||||||||||
Purchased technology and patents | $ | 256,719 | $ | (96,381 | ) | $ | 2,750 | $ | 163,088 | ||||||
Customer lists | 759,987 | (55,416 | ) | 4,771 | 709,342 | ||||||||||
Other | 4,534 | (5,126 | ) | 821 | 229 | ||||||||||
Total amortizing intangible assets | $ | 1,021,240 | $ | (156,923 | ) | $ | 8,342 | $ | 872,659 | ||||||
At January 1, 2016 | |||||||||||||||
Purchased technology and patents | $ | 255,776 | $ | (83,708 | ) | $ | 1,444 | $ | 173,512 | ||||||
Customer lists | 761,857 | (40,815 | ) | (986 | ) | 720,056 | |||||||||
Other | 4,534 | (4,946 | ) | 821 | 409 | ||||||||||
Total amortizing intangible assets | $ | 1,022,167 | $ | (129,469 | ) | $ | 1,279 | $ | 893,977 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2016 | October 2, 2015 | September 30, 2016 | October 2, 2015 | ||||||||||||
Cost of sales | $ | 4,228 | $ | 1,324 | $ | 12,708 | $ | 4,240 | |||||||
Selling, general and administrative expenses | 5,109 | 1,831 | 15,368 | 5,474 | |||||||||||
Research, development and engineering costs, net | 136 | 88 | 375 | 294 | |||||||||||
Total intangible asset amortization expense | $ | 9,473 | $ | 3,243 | $ | 28,451 | $ | 10,008 |
Estimated Amortization Expense | |||
Remainder of 2016 | $ | 9,478 | |
2017 | 44,129 | ||
2018 | 45,048 | ||
2019 | 45,135 | ||
2020 | 45,734 | ||
Thereafter | 683,135 | ||
Total estimated amortization expense | $ | 872,659 |
Trademarks and Tradenames | |||
At January 1, 2016 | $ | 90,288 | |
At September 30, 2016 | $ | 90,288 |
5. | INTANGIBLE ASSETS (Continued) |
Greatbatch Medical | QiG | Lake Region Medical | Total | ||||||||||||
At January 1, 2016 | $ | 303,929 | $ | 50,096 | $ | 659,545 | $ | 1,013,570 | |||||||
Goodwill divested (Note 2) | — | (40,830 | ) | — | (40,830 | ) | |||||||||
Purchase accounting adjustments (Note 2) | — | — | (1,118 | ) | (1,118 | ) | |||||||||
Foreign currency translation | 123 | — | 5,590 | 5,713 | |||||||||||
At September 30, 2016 | $ | 304,052 | $ | 9,266 | $ | 664,017 | $ | 977,335 |
|
As of | |||||||
September 30, 2016 | January 1, 2016 | ||||||
Senior secured term loan A | $ | 360,938 | $ | 375,000 | |||
Senior secured term loan B | 1,017,312 | 1,025,000 | |||||
9.125% senior notes due 2023 | 360,000 | 360,000 | |||||
Revolving line of credit | 50,000 | — | |||||
Less unamortized discount on term loan B and debt issuance costs | (42,086 | ) | (45,947 | ) | |||
Total debt | 1,746,164 | 1,714,053 | |||||
Less current portion of long-term debt | 29,000 | 29,000 | |||||
Total long-term debt | $ | 1,717,164 | $ | 1,685,053 |
Remaining in 2016 | $ | 7,250 | |
2017 | 31,344 | ||
2018 | 40,719 | ||
2019 | 47,750 | ||
2020 | 97,750 | ||
Thereafter | 1,563,437 | ||
Total | $ | 1,788,250 |
Notional Amount | Start Date | End Date | Pay Fixed Rate | Receive Current Floating Rate | Fair Value | Balance Sheet Location | ||||||||||||
$ | 200,000 | Jun-17 | Jun-20 | 1.1325 | % | N/A | $ | (974 | ) | Other Long-Term Liabilities | ||||||||
$ | 250,000 | Jul-16 | Jun-17 | 0.615 | % | 0.53 | % | $ | 75 | Prepaid Expenses and Other Current Assets |
At January 1, 2016 | $ | 4,791 | |
Amortization during the period | (745 | ) | |
At September 30, 2016 | $ | 4,046 |
Debt Issuance Costs | Unamortized Discount on TLB Facility | Total | |||||||||
At January 1, 2016 | $ | 35,908 | $ | 10,039 | $ | 45,947 | |||||
Financing costs incurred | 781 | — | 781 | ||||||||
Amortization during the period | (3,669 | ) | (973 | ) | (4,642 | ) | |||||
At September 30, 2016 | $ | 33,020 | $ | 9,066 | $ | 42,086 |
|
At January 1, 2016 | $ | 7,121 | |
Net defined benefit cost | 584 | ||
Benefit payments | (76 | ) | |
Foreign currency translation | 125 | ||
At September 30, 2016 | $ | 7,754 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2016 | October 2, 2015 | September 30, 2016 | October 2, 2015 | ||||||||||||
Service cost | $ | 108 | $ | 76 | $ | 326 | $ | 233 | |||||||
Interest cost | 44 | 15 | 132 | 45 | |||||||||||
Amortization of net loss | 47 | 13 | 140 | 39 | |||||||||||
Expected return on plan assets | (5 | ) | (2 | ) | (14 | ) | (8 | ) | |||||||
Net defined benefit cost | $ | 194 | $ | 102 | $ | 584 | $ | 309 |
|
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2016 | October 2, 2015 | September 30, 2016 | October 2, 2015 | ||||||||||||
Stock options | $ | 663 | $ | 697 | $ | 1,857 | $ | 1,979 | |||||||
Restricted stock and restricted stock units | 1,554 | 1,701 | 5,322 | 5,081 | |||||||||||
401(k) Plan stock contribution | — | 674 | — | 1,984 | |||||||||||
Total stock-based compensation expense | $ | 2,217 | $ | 3,072 | $ | 7,179 | $ | 9,044 | |||||||
Cost of sales | $ | 158 | $ | 685 | $ | 505 | $ | 2,039 | |||||||
Selling, general and administrative expenses | 1,677 | 1,981 | 4,860 | 5,890 | |||||||||||
Research, development and engineering costs, net | 115 | 361 | 408 | 1,070 | |||||||||||
Other operating expenses, net | 267 | 45 | 1,406 | 45 | |||||||||||
Total stock-based compensation expense | $ | 2,217 | $ | 3,072 | $ | 7,179 | $ | 9,044 |
Nine Months Ended | |||||||
September 30, 2016 | October 2, 2015 | ||||||
Weighted average fair value | $ | 9.25 | $ | 12.18 | |||
Risk-free interest rate | 1.56 | % | 1.55 | % | |||
Expected volatility | 26 | % | 26 | % | |||
Expected life (in years) | 5 | 5 | |||||
Expected dividend yield | — | % | — | % |
Number of Stock Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life (In Years) | Aggregate Intrinsic Value (In Millions) | |||||||||
Outstanding at January 1, 2016 | 1,678,900 | $ | 28.32 | |||||||||
Granted | 245,439 | 49.58 | ||||||||||
Exercised | (32,833 | ) | 22.00 | |||||||||
Forfeited or expired | (91,385 | ) | 46.13 | |||||||||
Adjustment due to Spin-off | — | (2.02 | ) | |||||||||
Outstanding at September 30, 2016 | 1,800,121 | $ | 28.41 | 5.8 | $ | 2.3 | ||||||
Exercisable at September 30, 2016 | 1,432,312 | $ | 23.87 | 5.0 | $ | 2.3 |
Time-Vested Activity | Weighted Average Fair Value | |||||
Nonvested at January 1, 2016 | 39,235 | $ | 47.40 | |||
Granted | 48,702 | 50.15 | ||||
Vested | (15,391 | ) | 51.39 | |||
Forfeited | (10,835 | ) | 48.67 | |||
Nonvested at September 30, 2016 | 61,711 | $ | 48.35 |
Performance- Vested Activity | Weighted Average Fair Value | |||||
Nonvested at January 1, 2016 | 577,825 | $ | 25.11 | |||
Granted | 163,651 | 31.20 | ||||
Vested | (249,153 | ) | 15.86 | |||
Forfeited | (119,005 | ) | 32.15 | |||
Nonvested at September 30, 2016 | 373,318 | $ | 31.70 |
|
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2016 | October 2, 2015 | September 30, 2016 | October 2, 2015 | ||||||||||||
2014 investments in capacity and capabilities | $ | 4,542 | $ | 5,116 | $ | 13,821 | $ | 17,854 | |||||||
Orthopedic facilities optimization | 329 | 357 | 628 | 1,348 | |||||||||||
Lake Region Medical consolidations | 2,908 | — | 7,355 | — | |||||||||||
Acquisition and integration costs | 5,319 | 5,202 | 23,143 | 5,366 | |||||||||||
Asset dispositions, severance and other | 272 | 3,169 | 5,057 | 4,881 | |||||||||||
$ | 13,370 | $ | 13,844 | $ | 50,004 | $ | 29,449 |
Severance and Retention | Accelerated Depreciation/Asset Write-offs | Other | Total | ||||||||||||
At January 1, 2016 | $ | 1,429 | $ | — | $ | 1,595 | $ | 3,024 | |||||||
Restructuring charges | — | 1,787 | 12,034 | 13,821 | |||||||||||
Write-offs | — | (1,787 | ) | — | (1,787 | ) | |||||||||
Cash payments | (1,246 | ) | — | (13,629 | ) | (14,875 | ) | ||||||||
At September 30, 2016 | $ | 183 | $ | — | $ | — | $ | 183 |
Severance and Retention | Accelerated Depreciation/Asset Write-offs | Other | Total | ||||||||||||
At January 1, 2016 | $ | — | $ | — | $ | — | $ | — | |||||||
Restructuring charges | — | 202 | 426 | 628 | |||||||||||
Write-offs | — | (202 | ) | — | (202 | ) | |||||||||
Cash payments | — | (426 | ) | (426 | ) | ||||||||||
At September 30, 2016 | $ | — | $ | — | $ | — | $ | — |
Employee Costs | Accelerated Depreciation/Asset Write-offs | Other | Total | ||||||||||||
At January 1, 2016 | $ | 3,667 | $ | — | $ | 596 | $ | 4,263 | |||||||
Restructuring charges | 4,646 | 907 | 1,802 | 7,355 | |||||||||||
Write-offs | — | (907 | ) | — | (907 | ) | |||||||||
Cash payments | (7,392 | ) | — | (1,942 | ) | (9,334 | ) | ||||||||
At September 30, 2016 | $ | 921 | $ | — | $ | 456 | $ | 1,377 |
|
|
Defined Benefit Plan Liability | Cash Flow Hedges | Foreign Currency Translation Adjustment | Total Pre-Tax Amount | Tax | Net-of-Tax Amount | ||||||||||||||||||
At July 1, 2016 | $ | (1,179 | ) | $ | (3,746 | ) | $ | 12,668 | $ | 7,743 | $ | 1,806 | $ | 9,549 | |||||||||
Unrealized loss on cash flow hedges | — | (101 | ) | — | (101 | ) | 35 | (66 | ) | ||||||||||||||
Realized loss on foreign currency hedges | — | 929 | — | 929 | (324 | ) | 605 | ||||||||||||||||
Realized loss on interest rate swap hedges | — | 50 | — | 50 | (18 | ) | 32 | ||||||||||||||||
Foreign currency translation gain | — | — | 3,191 | 3,191 | — | 3,191 | |||||||||||||||||
At September 30, 2016 | $ | (1,179 | ) | $ | (2,868 | ) | $ | 15,859 | $ | 11,812 | $ | 1,499 | $ | 13,311 |
Defined Benefit Plan Liability | Cash Flow Hedges | Foreign Currency Translation Adjustment | Total Pre-Tax Amount | Tax | Net-of-Tax Amount | ||||||||||||||||||
At January 1, 2016 | $ | (1,179 | ) | $ | (2,392 | ) | $ | 3,609 | $ | 38 | $ | 1,332 | $ | 1,370 | |||||||||
Unrealized loss on cash flow hedges | — | (2,842 | ) | — | (2,842 | ) | 995 | (1,847 | ) | ||||||||||||||
Realized loss on foreign currency hedges | — | 2,316 | — | 2,316 | (810 | ) | 1,506 | ||||||||||||||||
Realized loss on interest rate swap hedges | — | 50 | — | 50 | (18 | ) | 32 | ||||||||||||||||
Foreign currency translation gain | — | — | 12,250 | 12,250 | — | 12,250 | |||||||||||||||||
At September 30, 2016 | $ | (1,179 | ) | $ | (2,868 | ) | $ | 15,859 | $ | 11,812 | $ | 1,499 | $ | 13,311 |
Defined Benefit Plan Liability | Cash Flow Hedges | Foreign Currency Translation Adjustment | Total Pre-Tax Amount | Tax | Net-of-Tax Amount | ||||||||||||||||||
At July 3, 2015 | $ | (1,181 | ) | $ | (3,619 | ) | $ | 9,839 | $ | 5,039 | $ | 1,784 | $ | 6,823 | |||||||||
Unrealized loss on cash flow hedges | — | (1,670 | ) | — | (1,670 | ) | 584 | (1,086 | ) | ||||||||||||||
Realized loss on foreign currency hedges | — | 562 | — | 562 | (197 | ) | 365 | ||||||||||||||||
Realized loss on interest rate swap hedges | — | 2,169 | — | 2,169 | (759 | ) | 1,410 | ||||||||||||||||
Foreign currency translation gain | — | — | 144 | 144 | — | 144 | |||||||||||||||||
At October 2, 2015 | $ | (1,181 | ) | $ | (2,558 | ) | $ | 9,983 | $ | 6,244 | $ | 1,412 | $ | 7,656 |
Defined Benefit Plan Liability | Cash Flow Hedges | Foreign Currency Translation Adjustment | Total Pre-Tax Amount | Tax | Net-of-Tax Amount | ||||||||||||||||||
At January 2, 2015 | $ | (1,181 | ) | $ | (2,558 | ) | $ | 11,450 | $ | 7,711 | $ | 1,412 | $ | 9,123 | |||||||||
Unrealized loss on cash flow hedges | — | (3,857 | ) | — | (3,857 | ) | 1,350 | (2,507 | ) | ||||||||||||||
Realized loss on foreign currency hedges | — | 1,226 | — | 1,226 | (429 | ) | 797 | ||||||||||||||||
Realized loss on interest rate swap hedges | — | 2,631 | — | 2,631 | (921 | ) | 1,710 | ||||||||||||||||
Foreign currency translation loss | — | — | (1,467 | ) | (1,467 | ) | — | (1,467 | ) | ||||||||||||||
At October 2, 2015 | $ | (1,181 | ) | $ | (2,558 | ) | $ | 9,983 | $ | 6,244 | $ | 1,412 | $ | 7,656 |
|
Fair Value Measurements Using | ||||||||||||||||
At September 30, | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||
Description | 2016 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Assets | ||||||||||||||||
Interest rate swap (Note 6) | $ | 75 | $ | — | $ | 75 | $ | — | ||||||||
Liabilities | ||||||||||||||||
Foreign currency contracts (Note 11) | $ | 1,447 | $ | — | $ | 1,447 | $ | — | ||||||||
Interest rate swap (Note 6) | $ | 974 | $ | — | $ | 974 | $ | — |
|
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2016 | October 2, 2015 | September 30, 2016 | October 2, 2015 | ||||||||||||
Product line sales: | |||||||||||||||
Cardio and Vascular | $ | 148,273 | $ | 14,107 | $ | 426,142 | $ | 37,370 | |||||||
Cardiac/Neuromodulation | 95,781 | 75,577 | 284,479 | 248,450 | |||||||||||
Advanced Surgical, Orthopedics, and Portable Medical | 95,190 | 44,976 | 290,836 | 150,795 | |||||||||||
Electrochem | 8,870 | 11,977 | 30,361 | 46,232 | |||||||||||
Elimination of interproduct line sales | (1,547 | ) | — | (4,631 | ) | — | |||||||||
Total sales | $ | 346,567 | $ | 146,637 | $ | 1,027,187 | $ | 482,847 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2016 | October 2, 2015 | September 30, 2016 | October 2, 2015 | ||||||||||||
Business segment sales: | |||||||||||||||
Greatbatch Medical | $ | 140,458 | $ | 144,021 | $ | 413,231 | $ | 473,784 | |||||||
QiG | 2,708 | 2,776 | 8,829 | 10,564 | |||||||||||
Lake Region Medical | 203,913 | — | 607,122 | — | |||||||||||
Elimination of intersegment sales(a) | (512 | ) | (160 | ) | (1,995 | ) | (1,501 | ) | |||||||
Total sales | $ | 346,567 | $ | 146,637 | $ | 1,027,187 | $ | 482,847 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2016 | October 2, 2015 | September 30, 2016 | October 2, 2015 | ||||||||||||
Segment income (loss) from operations: | |||||||||||||||
Greatbatch Medical | $ | 15,986 | $ | 21,512 | $ | 41,565 | $ | 72,179 | |||||||
QiG | 562 | (7,680 | ) | (5,347 | ) | (20,132 | ) | ||||||||
Lake Region Medical | 29,906 | — | 78,461 | — | |||||||||||
Total segment income from operations | 46,454 | 13,832 | 114,679 | 52,047 | |||||||||||
Unallocated operating expenses | (9,592 | ) | (12,637 | ) | (37,414 | ) | (28,429 | ) | |||||||
Operating income | 36,862 | 1,195 | 77,265 | 23,618 | |||||||||||
Unallocated expenses, net | (28,145 | ) | (1,189 | ) | (80,623 | ) | (1,857 | ) | |||||||
Income (loss) before provision (benefit) for income taxes | $ | 8,717 | $ | 6 | $ | (3,358 | ) | $ | 21,761 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2016 | October 2, 2015 | September 30, 2016 | October 2, 2015 | ||||||||||||
Sales by geographic area: | |||||||||||||||
United States | $ | 206,663 | $ | 71,545 | $ | 612,876 | $ | 217,102 | |||||||
Non-Domestic locations: | |||||||||||||||
Puerto Rico | 41,745 | 26,816 | 120,217 | 98,247 | |||||||||||
Belgium | 14,256 | 12,305 | 52,913 | 45,690 | |||||||||||
Rest of world | 83,903 | 35,971 | 241,181 | 121,808 | |||||||||||
Total sales | $ | 346,567 | $ | 146,637 | $ | 1,027,187 | $ | 482,847 |
Three Months Ended | Nine Months Ended | ||||||
September 30, 2016 | October 2, 2015 | September 30, 2016 | October 2, 2015 | ||||
Customer A | 18% | 17% | 18% | 20% | |||
Customer B | 18% | 19% | 16% | 18% | |||
Customer C | 11% | 10% | 12% | 12% | |||
Total | 47% | 46% | 46% | 50% |
As of | |||||||
September 30, 2016 | January 1, 2016 | ||||||
United States | $ | 263,347 | $ | 264,556 | |||
Rest of world | 118,324 | 114,936 | |||||
Total | $ | 381,671 | $ | 379,492 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|