INTEGER HOLDINGS CORP, 10-Q filed on 10/31/2019
Quarterly Report
v3.19.3
Cover - shares
9 Months Ended
Sep. 27, 2019
Oct. 25, 2019
Cover page.    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Sep. 27, 2019  
Document Transition Report false  
Entity File Number 1-16137  
Entity Registrant Name INTEGER HOLDINGS CORPORATION  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 16-1531026  
Entity Address, Address Line One 5830 Granite Parkway,  
Entity Address, Address Line Two Suite 1150  
Entity Address, City or Town Plano,  
Entity Address, State or Province TX  
Entity Address, Postal Zip Code 75024  
City Area Code 214  
Local Phone Number 618-5243  
Title of 12(b) Security Common Stock, $0.001 par value per share  
Trading Symbol ITGR  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   32,678,605
Entity Central Index Key 0001114483  
Amendment Flag false  
Document Fiscal Year Focus 2019  
Document Fiscal Period Focus Q3  
Current Fiscal Year End Date --12-31  
v3.19.3
Condensed Consolidated Balance Sheets - Unaudited - USD ($)
$ in Thousands
Sep. 27, 2019
Dec. 28, 2018
Current assets:    
Cash and cash equivalents $ 14,719 $ 25,569
Accounts receivable, net of allowance for doubtful accounts of $0.3 million and $0.6 million, respectively 216,671 185,501
Inventories 197,977 190,076
Prepaid expenses and other current assets 23,704 15,104
Total current assets 453,071 416,250
Property, plant and equipment, net 230,683 231,269
Goodwill 825,318 832,338
Other intangible assets, net 774,744 812,338
Deferred income taxes 4,070 3,937
Operating Lease Assets, Current 43,670 0
Other long-term assets 27,263 30,549
Total assets 2,358,819 2,326,681
Current liabilities:    
Current portion of long-term debt 37,500 37,500
Accounts payable 77,383 57,187
Income taxes payable 12,228 9,393
Accrued expenses and other current liabilities 61,827 60,490
Total current liabilities 188,938 164,570
Long-term debt 790,420 888,007
Deferred income taxes 199,966 203,910
Operating Lease, Liability, Noncurrent 38,724 0
Other long-term liabilities 12,193 9,701
Total liabilities 1,230,241 1,266,188
Stockholders’ equity:    
Common stock, $0.001 par value; 100,000,000 shares authorized; 32,841,183 and 32,624,494 shares issued, respectively; 32,668,627 and 32,473,167 shares outstanding, respectively 33 33
Additional paid-in capital 699,915 691,083
Treasury stock, at cost, 172,556 and 151,327 shares, respectively (10,373) (8,125)
Retained earnings 429,234 344,498
Accumulated other comprehensive income 9,769 33,004
Total stockholders’ equity 1,128,578 1,060,493
Total liabilities and stockholders’ equity $ 2,358,819 $ 2,326,681
v3.19.3
Condensed Consolidated Balance Sheets - Unaudited (Parenthetical) - USD ($)
$ in Millions
Sep. 27, 2019
Dec. 28, 2018
Current assets:    
Allowance for doubtful accounts $ 0.3 $ 0.6
Stockholders’ equity:    
Common stock, par value $ 0.001 $ 0.001
Common stock, shares authorized 100,000,000 100,000,000
Common stock, shares issued (in shares) 32,841,183 32,624,494
Common stock, shares outstanding (in shares) 32,668,627 32,473,167
Treasury stock, shares (in shares) 172,556 151,327
v3.19.3
Condensed Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended 9 Months Ended
Sep. 27, 2019
Sep. 28, 2018
Sep. 27, 2019
Sep. 28, 2018
Income Statement [Abstract]        
Sales $ 303,587 $ 305,088 $ 932,457 $ 911,978
Cost of sales 210,201 213,165 653,477 637,758
Gross profit 93,386 91,923 278,980 274,220
Operating expenses:        
Selling, general and administrative expenses 32,935 34,091 101,034 107,300
Research, development and engineering costs 11,729 12,234 34,720 38,445
Other operating expenses 2,241 4,139 8,239 12,615
Total operating expenses 46,905 50,464 143,993 158,360
Operating income 46,481 41,459 134,987 115,860
Interest expense 12,337 54,526 39,779 85,355
(Gain) loss on equity investments, net (986) (291) 666 (5,545)
Other (income) loss, net (369) 1,684 (921) 257
Income (loss) from continuing operations before taxes 35,499 (14,460) 95,463 35,793
Provision for (benefit from) income taxes 4,913 (6,157) 15,289 7,956
Income (loss) from continuing operations 30,586 (8,303) 80,174 27,837
Income from discontinued operations before taxes 0 195,874 5,316 188,251
Discontinued operations:        
Provision for income taxes 0 73,492 178 73,869
Income from discontinued operations 0 122,382 5,138 114,382
Net income $ 30,586 $ 114,079 $ 85,312 $ 142,219
Basic earnings (loss) per share:        
Income from continuing operations (in dollars per share) $ 0.94 $ (0.26) $ 2.46 $ 0.87
Loss from discontinued operations (in dollars per share) 0 3.80 0.16 3.57
Basic (in dollars per share) 0.94 3.54 2.62 4.44
Diluted earnings (loss) per share:        
Income from continuing operations (in dollars per share) 0.92 (0.26) 2.43 0.86
Loss from discontinued operations (in dollars per share) 0 3.80 0.16 3.52
Diluted (in dollars per share) $ 0.92 $ 3.54 $ 2.58 $ 4.38
Weighted average shares outstanding:        
Basic (in shares) 32,660 32,211 32,606 32,050
Diluted (in shares) 33,068 32,211 33,019 32,451
v3.19.3
Condensed Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 27, 2019
Sep. 28, 2018
Sep. 27, 2019
Sep. 28, 2018
Statement of Comprehensive Income [Abstract]        
Net income (loss) $ 30,586 $ 114,079 $ 85,312 $ 142,219
Other comprehensive income:        
Foreign currency translation gain (14,810) (2,809) (17,138) (15,253)
Net change in cash flow hedges, net of tax (1,352) 634 (6,097) 1,957
Other comprehensive income (16,162) (2,175) (23,235) (13,296)
Comprehensive income $ 14,424 $ 111,904 $ 62,077 $ 128,923
v3.19.3
Condensed Consolidated Statements of Cash Flows - Unaudited - USD ($)
$ in Thousands
9 Months Ended
Sep. 27, 2019
Sep. 28, 2018
Statement of Cash Flows [Abstract]    
Proceeds from Divestiture of Businesses $ 4,734 $ 582,359
Cash flows from operating activities:    
Net income (loss) 85,312 142,219
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 57,397 68,447
Debt related charges included in interest expense 5,280 47,173
Stock-based compensation 6,894 7,684
Non-cash (gain) loss on equity investments 666 (1,043)
Other non-cash gains (1,088) (771)
Deferred income taxes (1,086) 66,953
Gain on sale of discontinued operations (4,974) (194,734)
Changes in operating assets and liabilities:    
Accounts receivable (29,962) (4,805)
Inventories (8,567) (19,688)
Prepaid expenses and other assets (10,829) 5,155
Accounts payable 17,760 10,488
Accrued expenses and other liabilities (8,988) (14,904)
Income taxes payable 4,162 8,562
Net cash provided by operating activities 111,977 120,736
Cash flows from investing activities:    
Acquisition of property, plant and equipment (24,704) (33,340)
Proceeds from sale of property, plant and equipment 5 1,366
Purchase of equity investments (417) (1,230)
Net cash (used in) provided by investing activities (20,382) 549,155
Cash flows from financing activities:    
Principal payments of long-term debt (97,125) (670,094)
Proceeds from senior secured revolving line of credit 20,000 0
Payments of senior secured revolving line of credit (25,000) 0
Proceeds from the exercise of stock options 2,654 11,757
Payments of Debt Issuance Costs 0 31,991
Tax withholdings related to net share settlements of restricted stock unit awards (2,961) (2,568)
Net cash used in financing activities (102,432) (692,896)
Effect of foreign currency exchange rates on cash and cash equivalents (13) 1,790
Net decrease in cash and cash equivalents (10,850) (21,215)
Cash and cash equivalents, beginning of period 25,569 44,096
Cash and cash equivalents, end of period 14,719  
Total cash and cash equivalents, end of period 25,569 44,096
Noncash investing and financing activities:    
Property, plant and equipment purchases included in accounts payable $ 5,125 $ 2,585
v3.19.3
Condensed Consolidated Statement of Stockholders' Equity - Unaudited - USD ($)
$ in Thousands
Total
Additional Paid-in Capital [Member]
Treasury Stock [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Common Stocks, Including Additional Paid in Capital $ 669,788        
Treasury Stock, Shares, Acquired (2,568)        
Balance at Dec. 29, 2017 893,381   $ (4,654) $ 176,068 $ 52,179
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income (loss) 142,219        
Other comprehensive loss, net (13,296)       (13,296)
Stock-based compensation   $ 7,684      
Net shares issued   10,205      
Reclassified to earnings, net 152        
Balance at Sep. 28, 2018 1,039,331   (5,668) 318,287 39,035
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Stock Issued During Period, Value, Treasury Stock Reissued 1,554        
Common Stocks, Including Additional Paid in Capital 678,188        
Treasury Stock, Shares, Acquired (359)        
Balance at Jun. 29, 2018 917,734   (5,720) 204,208 41,058
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income (loss) 114,079        
Other comprehensive loss, net (2,175)       (2,175)
Stock-based compensation   1,577      
Net shares issued   7,912      
Reclassified to earnings, net 152        
Balance at Sep. 28, 2018 1,039,331   (5,668) 318,287 39,035
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Stock Issued During Period, Value, Treasury Stock Reissued 411        
Common Stocks, Including Additional Paid in Capital 687,677        
Common Stocks, Including Additional Paid in Capital 691,116        
Treasury Stock, Shares, Acquired (2,961)        
Balance at Dec. 28, 2018 1,060,493   (8,125) 344,498 33,004
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income (loss) 85,312        
Other comprehensive loss, net (23,235)       (23,235)
Stock-based compensation   6,894      
Net shares issued   1,938      
Balance at Sep. 27, 2019 1,128,578   (10,373) 429,234 9,769
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Stock Issued During Period, Value, Treasury Stock Reissued 713        
Common Stocks, Including Additional Paid in Capital 697,681        
Treasury Stock, Shares, Acquired (56)        
Balance at Jun. 28, 2019 1,111,695   (10,565) 398,648 25,931
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income (loss) 30,586        
Other comprehensive loss, net (16,162)       (16,162)
Stock-based compensation   1,461      
Net shares issued   $ 806      
Balance at Sep. 27, 2019 1,128,578   $ (10,373) 429,234 $ 9,769
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Stock Issued During Period, Value, Treasury Stock Reissued 248        
Common Stocks, Including Additional Paid in Capital $ 699,948        
Cumulative Effect of New Accounting Principle in Period of Adoption       $ (576)  
v3.19.3
Basis of Presentation
9 Months Ended
Sep. 27, 2019
Accounting Policies [Abstract]  
BASIS OF PRESENTATION BASIS OF PRESENTATION
Integer Holdings Corporation (together with its consolidated subsidiaries, “Integer” or the “Company”) is a publicly-traded corporation listed on the New York Stock Exchange under the symbol “ITGR.” Integer is one of the largest medical device outsource manufacturers in the world serving the cardiac, neuromodulation, vascular, orthopedics, advanced surgical and portable medical markets. The Company provides innovative, high-quality medical technologies that enhance the lives of patients worldwide. In addition, it develops batteries for high-end niche applications in the energy, military, and environmental markets. The Company’s reportable segments are: (1) Medical and (2) Non-Medical. The Company’s customers include large multi-national original equipment manufacturers (“OEMs”) and their affiliated subsidiaries.
On May 3, 2018, the Company entered into a definitive agreement to sell the Advanced Surgical and Orthopedic product lines (the “AS&O Product Line”) within its Medical segment to Viant (formerly MedPlast, LLC), and on July 2, 2018 completed the sale.  The results of operations of the AS&O Product Line are reported as discontinued operations in the Condensed Consolidated Statements of Operations for all periods presented. The Condensed Consolidated Statements of Cash Flows includes cash flows related to the discontinued operations due to Integer’s centralized treasury and cash management processes, and, accordingly, cash flow amounts for discontinued operations are disclosed in Note 2 “Discontinued Operations, Divestitures and Acquisitions.” All results and information in the condensed consolidated financial statements are presented as continuing operations and exclude the AS&O Product Line unless otherwise noted specifically as discontinued operations. Refer to Note 2 “Discontinued Operations, Divestitures and Acquisitions” for additional information.
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information (Accounting Standards Codification (“ASC”) 270, Interim Reporting) and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these financial statements do not include all of the information necessary for a full presentation of financial position, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America (“GAAP”). In the opinion of management, the condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the results of the Company for the periods presented. Intercompany transactions and balances have been fully eliminated in consolidation.
Operating results for interim periods are not necessarily indicative of results that may be expected for the fiscal year as a whole. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, certain components of equity, sales, expenses, and related disclosures at the date of the financial statements and during the reporting period. Actual results could differ materially from these estimates. For further information, refer to the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 28, 2018.
Historically, the Company has utilized a 52/53-week fiscal year ending on the Friday nearest December 31. On October 9, 2019, the Board of Directors of Integer approved a change to the Company’s fiscal year from a year ending on the Friday nearest December 31 to a calendar year ending on December 31. Upon receipt of the customary approval of the lenders under the Company’s senior secured credit facilities, the Company’s current fiscal year will end on December 31, 2019, instead of January 3, 2020, with subsequent fiscal years beginning on January 1 and ending on December 31 of each year. The Company’s first three fiscal quarters in each fiscal year will continue to end on the Friday nearest March 31, June 30 and September 30, respectively. Fiscal year 2018 ended on December 28, 2018 and was a fifty-two week period.
The third quarter of 2019 and 2018 each contained 13 weeks and ended on September 27 and September 28, respectively, and were not impacted by the change in fiscal year.
Recent Accounting Pronouncements
The Company considers the applicability and impact of all Accounting Standard Updates (“ASU”) issued by the Financial Accounting Standards Board ("FASB"). ASUs not yet adopted that are not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated result of operations, financial position and cash flows. With the exception of the accounting pronouncements adopted as discussed below, there have been no new or material changes to the significant accounting policies discussed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2018, that are of significance, or potential significance, to the Company.
(1.)     BASIS OF PRESENTATION (Continued)
Recently Adopted Accounting Guidance
Adoption of ASC Topic 842
Effective December 29, 2018, the Company adopted ASC 842, Leases, which requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous guidance. The Company elected to transition to ASC 842 using the option to not restate comparative periods and apply the standard as of the date of initial application. In addition, certain practical expedients were elected which permit the Company to not reassess whether existing contracts are or contain leases, to not reassess the lease classification of any existing leases, and to not reassess initial direct costs for any existing leases. The Company also elected the practical expedient to not separate lease and non-lease components for all classes of underlying assets and the practical expedient related to land easements, allowing the Company to carry-forward its accounting treatment for land easements on existing agreements. The Company did not elect the practical expedient pertaining to the use of hindsight. The Company also made an accounting policy election to keep leases with an initial term of 12 months or less and no purchase option the Company is reasonably certain to exercise off the balance sheet for all classes of underlying assets.
As a result of the adoption of ASC 842, the Company recognized operating lease right-of-use assets of $40.9 million and lease liabilities of $43.4 million on December 29, 2018. The difference between the lease assets and lease liabilities primarily represents the existing prepaid rent assets, deferred rent liabilities, and tenant improvement allowances, along with a cumulative-effect adjustment to beginning retained earnings. The adoption of ASC 842 did not have a material impact on the Company’s Condensed Consolidated Statement of Operations and Condensed Consolidated Statement of Cash Flows for the periods presented.
Refer to Note 11 “Leases” for additional information on the Company’s leases.
Adoption of ASU 2017-12 and ASU 2018-16
In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. ASU 2017-12 amends the designation and measurement guidance for qualifying hedging transactions and the presentation of hedge results in an entity’s financial statements. The new guidance removes the concept of separately measuring and reporting hedge ineffectiveness and requires a company to present the earnings effect of the hedging instrument, including any ineffectiveness, in the same income statement line item in which the earnings effect of the hedged item is reported.
ASU 2017-12 continues to allow an entity to exclude the time value of options and forward points from the assessment of hedge effectiveness. For excluded components in cash flow hedges, the base recognition model under this ASU is an amortization approach. An entity still may elect to record changes in the fair value of the excluded component currently in earnings; however, such an election will need to be applied consistently to similar hedges. The Company has elected to continue to record changes in the fair value of the excluded components of its derivative instruments currently in earnings given their highly effective nature.
Finally, this ASU continues to require an initial prospective quantitative hedge effectiveness assessment and documentation at hedge inception. However, if certain criteria are met, entities can elect to subsequently perform prospective and retrospective effectiveness assessments qualitatively, unless facts and circumstances change, and the hedge effectiveness assessment generally does not need to be completed until the first quarterly hedge effectiveness assessment date (i.e., up to three months).
The Company adopted ASU 2017-12 on December 29, 2018, the first day of the Company’s 2019 fiscal year, which did not materially affect the Company’s results of operations. The Company adopted the guidance on the modified retrospective basis and did not recognize a cumulative effect adjustment upon adoption as the Company had not recognized ineffectiveness on any of the hedging instruments existing as of the date of adoption. Refer to Note 14 “Financial Instruments and Fair Value Measurements” for additional information and disclosures of the Company’s derivatives and hedging activities.
In October 2018, the FASB issued ASU 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes. The amendments in ASU 2018-16 permit the use of the OIS rate based on SOFR as a benchmark interest rate for hedge accounting purposes under Topic 815. The amendments in this update were effective for fiscal years beginning after December 15, 2018. The Company adopted this guidance prospectively as of December 29, 2018, concurrent with the adoption of ASU 2017-12, to be applied on a prospective basis for qualifying new or redesignated hedging relationships entered into on or after the date of adoption. Adoption of this guidance had no impact on the Condensed Consolidated Financial Statements.

(1.)     BASIS OF PRESENTATION (Continued)
Not Yet Adopted Accounting Guidance
In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which replaces the current incurred loss impairment methodology for most financial assets with the current expected credit loss (“CECL”) methodology. Under the CECL method, the Company will be required to immediately recognize an estimate of credit losses expected to occur over the life of the financial asset at the time financial asset is originated or acquired.  Estimated credit losses are determined by taking into consideration historical loss conditions, current conditions and reasonable and supportable forecasts.  Changes to the expected lifetime credit losses are required to be recognized each period.  The standard will be effective for the Company on January 1, 2020 and will be adopted using a modified retrospective transition method through a cumulative-effect adjustment to retained earnings in the period of adoption.  The Company has initiated implementation efforts and is in the process of accumulating historical, current and forward-looking information to be used in the estimation of credit losses. The Company is assessing the risk characteristics related to trade receivables and contract assets, which are the primary financial assets of the Company that will be within the scope of this guidance.  The adoption of ASU 2016-13 is not expected to have a material impact to on the Condensed Consolidated Financial Statements.
v3.19.3
Discontinued Operations
9 Months Ended
Sep. 27, 2019
Discontinued Operations and Disposal Groups [Abstract]  
DISCONTINUED OPERATIONS DISCONTINUED OPERATIONS, DIVESTITURES AND ACQUISITIONS
AS&O Divestiture
On May 3, 2018, the Company entered into a definitive agreement to sell its AS&O Product Line to Viant, and on July 2, 2018, completed the sale, collecting cash proceeds of approximately $581 million, which is net of transaction costs and adjustments set forth in the definitive agreement. In connection with the sale, the parties executed a transition services agreement whereby the Company would provide certain corporate services (including accounting, payroll, and information technology services) to Viant for a period of up to one year from the date of the closing to facilitate an orderly transfer of business operations. Viant paid Integer for these services as specified in the transition services agreement, which were complete as of June 28, 2019. Accordingly, there was no income recognized under the transition services agreement during the three months ended September 27, 2019. The Company recognized $2.9 million of income under the transition services agreement for the performance of services during the nine months ended September 27, 2019, of which $0.1 million is recorded as a reduction of Cost of sales and $2.8 million is recorded as a reduction of Selling, general and administrative expenses. The Company recognized $1.9 million of income under the transition services agreement for the performance of services during the three and nine months ended September 28, 2018, of which $0.1 million is recorded as a reduction of Cost of sales and $1.8 million is recorded as a reduction of Selling, general and administrative expenses. In addition, the parties executed long-term supply agreements under which the Company and Viant have agreed to supply the other with certain products at prices specified in the agreements for a term of three years.
In connection with the closing of the transaction but prior to a net working capital adjustment, the Company recognized a pre-tax gain on sale of discontinued operations of $195.0 million during the year ended December 28, 2018. During the nine months ended September 27, 2019, the Company received $4.8 million due to a net working capital adjustment agreed to with Viant. This was recognized as gain on sale from discontinued operations during the quarter ended June 28, 2019.
(2.)     DISCONTINUED OPERATIONS, DIVESTITURES AND ACQUISITIONS (Continued)
The operating results of the AS&O Product Line have been classified as discontinued operations in the Condensed Consolidated Statements of Operations for all periods presented. The discontinued operations of the AS&O Product Line are reported in the Medical segment. Income from discontinued operations net of taxes, were as follows (in thousands):
 
Three Months Ended
 
Nine Months Ended
 
September 27,
2019
 
September 28,
2018
 
September 27,
2019
 
September 28,
2018
Sales
$

 
$

 
$

 
$
178,020

Cost of sales

 

 

 
148,357

Gross profit

 

 

 
29,663

Selling, general and administrative expenses

 

 

 
8,905

Research, development and engineering costs

 

 

 
2,352

Other operating expenses (income)(1)

 
(2,185
)
 

 
1,805

Interest expense

 
976

 

 
22,833

Gain on sale of discontinued operations

 
(194,734
)
 
(4,974
)
 
(194,734
)
Other (income) loss, net

 
69

 
(342
)
 
251

Income from discontinued operations before taxes

 
195,874

 
5,316

 
188,251

Provision for income taxes

 
73,492

 
178

 
73,869

Income from discontinued operations
$

 
$
122,382

 
$
5,138

 
$
114,382


__________ 
(1) 
The Company recorded $2.2 million of transaction costs in Other operating expenses (income) from discontinued operations during the three months ended June 29, 2018, which were reclassified to the Gain on sale of discontinued operations during the three months ended September 28, 2018.
Cash flow information from discontinued operations was as follows (in thousands):
 
Nine Months Ended
 
September 27,
2019
 
September 28,
2018
Cash used in operating activities
$
(58
)
 
$
(12,388
)
Cash provided by (used in) investing activities
4,734

 
578,763

Depreciation and amortization

 
7,450

Capital expenditures

 
3,610


Acquisition of Assets from US BioDesign, LLC
On October 7, 2019, the Company acquired certain assets of US BioDesign, LLC, a privately held developer and manufacturer of complex braided biomedical structures for disposable and implantable medical devices. The acquisition adds a differentiated capability related to the complex development and manufacture of braided and formed biomedical structures to the Company’s broad portfolio. The Company paid $15 million in cash and may pay up to an additional $5.5 million of contingent earn out over the next four years based on specified conditions being met. The Company expects to determine the preliminary purchase price allocation prior to the end of the fourth quarter of 2019.
v3.19.3
Inventories
9 Months Ended
Sep. 27, 2019
Inventory Disclosure [Abstract]  
INVENTORIES INVENTORIES
Inventories are comprised of the following (in thousands):
 
September 27,
2019
 
December 28,
2018
Raw materials
$
83,171

 
$
80,213

Work-in-process
78,803

 
75,711

Finished goods
36,003

 
34,152

Total
$
197,977

 
$
190,076


v3.19.3
Goodwill and Other Intangible Assets, Net
9 Months Ended
Sep. 27, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND OTHER INTANGIBLE ASSETS, NET GOODWILL AND OTHER INTANGIBLE ASSETS, NET
Goodwill
The changes in the carrying amount of goodwill by reportable segment for the nine months ended September 27, 2019 were as follows (in thousands):
 
Medical
 
Non- Medical
 
Total
December 28, 2018
$
815,338

 
$
17,000

 
$
832,338

Foreign currency translation
(7,020
)
 

 
(7,020
)
September 27, 2019
$
808,318

 
$
17,000

 
$
825,318


Intangible Assets
Intangible assets at September 27, 2019 and December 28, 2018 were as follows (in thousands):
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
September 27, 2019
 
 
 
 

Definite-lived:
 
 
 
 
 
Purchased technology and patents
$
239,905

 
$
(134,560
)
 
$
105,345

Customer lists
702,723

 
(123,617
)
 
579,106

Other
3,503

 
(3,498
)
 
5

Total
$
946,131

 
$
(261,675
)
 
$
684,456

Indefinite-lived:
 
 
 
 
 
Trademarks and tradenames


 
 
 
$
90,288

 
 
 
 
 
 
December 28, 2018
 
 
 
 

Definite-lived:
 
 
 
 
 
Purchased technology and patents
$
241,726

 
$
(125,540
)
 
$
116,186

Customer lists
710,406

 
(104,556
)
 
605,850

Other
3,503

 
(3,489
)
 
14

Total
$
955,635

 
$
(233,585
)
 
$
722,050

Indefinite-lived:
 
 
 
 
 
Trademarks and tradenames


 
 
 
$
90,288


Aggregate intangible asset amortization expense is comprised of the following (in thousands):
 
Three Months Ended
 
Nine Months Ended
 
September 27,
2019
 
September 28,
2018
 
September 27,
2019
 
September 28,
2018
Cost of sales
$
3,165

 
$
3,367

 
$
9,622

 
$
10,756

Selling, general and administrative expenses
6,617

 
6,490

 
19,845

 
20,196

Research, development and engineering costs

 
39

 

 
116

Total intangible asset amortization expense
$
9,782

 
$
9,896

 
$
29,467

 
$
31,068


Estimated future intangible asset amortization expense based on the carrying value as of September 27, 2019 is as follows (in thousands):
 
Remainder of 2019
 
2020
 
2021
 
2022
 
2023
 
After 2023
Amortization Expense
$
10,492

 
40,065

 
39,219

 
38,194

 
36,359

 
520,127


v3.19.3
Debt
9 Months Ended
Sep. 27, 2019
Debt Disclosure [Abstract]  
DEBT DEBT
Long-term debt is comprised of the following (in thousands):
 
September 27,
2019
 
December 28,
2018
Senior secured term loan A
$
276,563

 
$
304,687

Senior secured term loan B
563,286

 
632,286

Revolving line of credit

 
5,000

Unamortized discount on term loan B and debt issuance costs
(11,929
)
 
(16,466
)
Total debt
827,920

 
925,507

Current portion of long-term debt
(37,500
)
 
(37,500
)
Total long-term debt
$
790,420

 
$
888,007


The Company has senior secured credit facilities (the “Senior Secured Credit Facilities”) as of September 27, 2019, consisting of (i) a revolving credit facility (the “Revolving Credit Facility”) with $200 million of borrowing capacity as described below, (ii) a $277 million term loan A facility (the “TLA Facility”), and (iii) a $563 million term loan B facility (the “TLB Facility”). The TLA Facility and TLB Facility are collectively referred to as the “Term Loan Facilities.” The TLB Facility was issued at a 1% discount.
Revolving Credit Facility
The Revolving Credit Facility matures on October 27, 2020. The Revolving Credit Facility includes a $15 million sublimit for swingline loans and a $25 million sublimit for standby letters of credit. The Company is required to pay a commitment fee on the unused portion of the Revolving Credit Facility, which will range between 0.175% and 0.25%, depending on the Company’s Total Net Leverage Ratio (as defined in the Senior Secured Credit Facilities agreement). As of September 27, 2019, the commitment fee on the unused portion of the Revolving Credit Facility was 0.25%. Interest rates on the Revolving Credit Facility, as well as the TLA Facility, are at the Company’s option, either at: (i) the prime rate plus the applicable margin, which will range between 0.75% and 2.25%, based on the Company’s Total Net Leverage Ratio, or (ii) the applicable LIBOR rate plus the applicable margin, which will range between 1.75% and 3.25%, based on the Company’s Total Net Leverage Ratio.
As of September 27, 2019, the Company had no outstanding borrowings on the Revolving Credit Facility and an available borrowing capacity of $193.2 million after giving effect to $6.8 million of outstanding standby letters of credit.
Term Loan Facilities
The TLA Facility and TLB Facility mature on October 27, 2021 and October 27, 2022, respectively. Interest rates on the TLB Facility are, at the Company’s option, either at: (i) the prime rate plus 2.00% or (ii) the applicable LIBOR rate plus 3.00%, with LIBOR subject to a 1.00% floor. As of September 27, 2019, the interest rates on the TLA Facility and TLB Facility were 4.31% and 5.05%, respectively.
Covenants
The Revolving Credit Facility and TLA Facility contain covenants requiring (A) a maximum Total Net Leverage Ratio of 4.75:1.00, subject to quarterly step downs of 25 basis points beginning in the fourth quarter of 2019 and ending in the second quarter of 2020 and (B) a minimum interest coverage ratio of adjusted EBITDA (as defined in the Senior Secured Credit Facilities) to interest expense of not less than 3.00:1.00. The TLB Facility does not contain any financial maintenance covenants. As of September 27, 2019, the Company was in compliance with these financial covenants.
9.125% Senior Notes due 2023
On October 27, 2015, the Company completed a private offering of $360 million aggregate principal amount of 9.125% senior notes due on November 1, 2023 (the “Senior Notes”). On July 10, 2018, the Company completed the redemption in full of the Senior Notes at a redemption price of 100% of the principal amount of the Senior Notes plus the applicable “make-whole” premium of $31.3 million and accrued and unpaid interest through the redemption date. The “make-whole” premium is included in Interest Expense for the three and nine months ended September 28, 2018 in the accompanying Condensed Consolidated Statements of Operations.
(6.)     DEBT (Continued)
Contractual maturities under the Senior Secured Credit Facilities for the remainder of 2019 and the next three years (through maturity), excluding any discounts or premiums, as of September 27, 2019 are as follows (in thousands):
 
 
2019
 
2020
 
2021
 
2022
Future minimum principal payments
 
$
9,375

 
37,500

 
229,688

 
563,286


The Company prepaid portions of its TLB Facility during 2019 and 2018. The Company recognized losses from extinguishment of debt during the three and nine months ended September 27, 2019 of $0.3 million and $1.3 million, respectively. The Company recognized losses from extinguishment of debt during the three and nine months ended September 28, 2018 of $9.3 million and $10.8 million, respectively. The loss from extinguishment of debt represents the portion of the unamortized discount and debt issuance costs related to the portion of the TLB Facility that was prepaid and is included in Interest Expense in the accompanying Condensed Consolidated Statements of Operations. The loss from extinguishment of debt for the three and nine months ended September 28, 2018 also includes the unamortized debt issuance costs related to the Senior Notes.
v3.19.3
Stock-Based Compensation
9 Months Ended
Sep. 27, 2019
Share-based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION
The Company maintains certain stock-based compensation plans that were approved by the Company’s stockholders and are administered by the Board of Directors, or the Compensation and Organization Committee of the Board. The stock-based compensation plans provide for the granting of stock options, restricted stock awards (“RSAs”), restricted stock units (“RSUs”), stock appreciation rights and stock bonuses to employees, non-employee directors, consultants, and service providers.
The components and classification of stock-based compensation expense were as follows (in thousands):
 
Three Months Ended
 
Nine Months Ended
 
September 27,
2019
 
September 28,
2018
 
September 27,
2019
 
September 28,
2018
Stock options
$
101

 
$
215

 
$
304

 
$
726

RSAs and RSUs
1,360

 
1,872

 
6,590

 
6,544

Stock-based compensation expense - continuing operations
1,461

 
2,087

 
6,894

 
7,270

Discontinued operations

 
(510
)
 

 
414

Total stock-based compensation expense
$
1,461

 
$
1,577

 
$
6,894

 
$
7,684

 
 
 
 
 
 
 
 
Cost of sales
$
168

 
$
222

 
$
766

 
$
598

Selling, general and administrative expenses
1,155

 
1,821

 
5,819

 
6,568

Research, development and engineering costs
69

 
44

 
193

 
99

Other operating expenses
69

 

 
116

 
5

Discontinued operations

 
(510
)
 

 
414

Total stock-based compensation expense
$
1,461

 
$
1,577

 
$
6,894

 
$
7,684


There were no stock options granted during the nine months ended September 27, 2019. The weighted average fair value and assumptions used to value options granted during the nine months ended September 28, 2018 are as follows:
Weighted average fair value
 
$
14.89

Risk-free interest rate
 
2.21
%
Expected volatility
 
39
%
Expected life (in years)
 
4.0

Expected dividend yield
 
%

(7.)     STOCK-BASED COMPENSATION (Continued)
The following table summarizes the Company’s stock option activity:
 
Number of
Stock
Options
 
Weighted
Average
Exercise
Price
 
Weighted
Average
Remaining
Contractual
Life
(In Years)
 
Aggregate
Intrinsic
Value
(In Millions)
Outstanding at December 28, 2018
522,783

 
$
31.88

 
 
 
 
Exercised
(116,904
)
 
22.70

 
 
 
 
Outstanding at September 27, 2019
405,879

 
$
34.52

 
5.3
 
$
16.3

Exercisable at September 27, 2019
371,564

 
$
34.10

 
5.1
 
$
15.1


During the nine months ended September 27, 2019, the Company awarded grants to members of its Board of Directors and certain members of management. The Board of Directors received grants of time-based RSUs that vest in equal quarterly installments of 25% on the first day of each quarter of the Company’s 2019 fiscal year. The members of management received either time-based RSUs or a mix of time-based RSUs and performance-based RSUs (“PRSUs”). The time-based RSUs vest ratably, subject to the recipient’s continuous service to the Company over a period of generally three to four years from the grant date. For the Company's PRSUs, in addition to service conditions, the ultimate number of shares to be earned depends on the achievement of financial performance or market-based conditions. The financial performance condition is based on the Company's sales targets. The market-based conditions are based on the Company’s achievement of a relative total shareholder return (“TSR”) performance requirement, on a percentile basis, compared to a defined group of peer companies over three year performance periods.
The Company uses a Monte Carlo simulation model to determine the grant-date fair value of awards with TSR-based performance conditions. The grant-date fair value of all other RSAs and RSUs is equal to the closing market price of Integer common stock on the date of grant.
The weighted average fair value and assumptions used to value the TSR portion of the PRSUs granted are as follows:
 
Nine Months Ended
 
September 27,
2019
 
September 28,
2018
Weighted average fair value
$
117.03

 
$
37.46

Risk-free interest rate
2.46
%
 
2.28
%
Expected volatility
40
%
 
40
%
Expected life (in years)
2.8

 
2.9

Expected dividend yield
%
 
%

The following table summarizes RSA and RSU activity:
 
Time-Vested
Activity
 
Weighted Average Fair Value
Nonvested at December 28, 2018
142,236

 
$
49.78

Granted
104,636

 
82.96

Vested
(24,752
)
 
63.34

Forfeited
(16,009
)
 
57.49

Nonvested at September 27, 2019
206,111

 
$
64.40

(7.)     STOCK-BASED COMPENSATION (Continued)
The following table summarizes PRSU activity:
 
Performance-
Vested
Activity
 
Weighted
Average
Fair Value
Nonvested at December 28, 2018
287,134

 
$
36.15

Granted
50,492

 
101.17

Vested
(75,008
)
 
28.41

Forfeited
(68,153
)
 
34.17

Nonvested at September 27, 2019
194,465

 
$
56.71


v3.19.3
Other Operating Expenses, Net
9 Months Ended
Sep. 27, 2019
Other Income and Expenses [Abstract]  
OTHER OPERATING EXPENSES, NET OTHER OPERATING EXPENSES
Other Operating Expenses is comprised of the following (in thousands):
 
Three Months Ended
 
Nine Months Ended
 
September 27,
2019
 
September 28,
2018
 
September 27,
2019
 
September 28,
2018
Strategic reorganization and alignment
$
962

 
$
2,643

 
$
4,352

 
$
8,424

Manufacturing alignment to support growth
515

 
877

 
1,661

 
2,493

Consolidation and optimization initiatives

 
137

 

 
698

Asset dispositions, severance and other
764

 
482

 
2,226

 
1,000

Other operating expenses - continuing operations
2,241

 
4,139

 
8,239

 
12,615

Discontinued operations(1)

 
(2,185
)
 

 
1,805

Total other operating expenses
$
2,241

 
$
1,954

 
$
8,239

 
$
14,420


__________ 
(1) 
The Company recorded $2.2 million of transaction costs in Other operating expenses (income) from discontinued operations during the three months ended June 29, 2018, which were reclassified to the Gain on sale of discontinued operations during the three months ended September 28, 2018.
Strategic Reorganization and Alignment
As a result of the strategic review of its customers, competitors and markets, the Company began taking steps in 2017 to better align its resources in order to enhance the profitability of its portfolio of products. These initiatives include improving its business processes and redirecting investments away from projects where the market does not justify the investment, as well as aligning resources with market conditions and the Company’s future strategic direction. The Company estimates that it will incur aggregate pre-tax charges in connection with the strategic reorganization and alignment plan, including projects reported in discontinued operations, of between approximately $20 million to $22 million, the majority of which are expected to be cash expenditures. During the nine months ended September 27, 2019, the Company incurred charges relating to this initiative, which primarily included severance and fees for professional services recorded within the Medical segment. As of September 27, 2019, total expense incurred for this initiative since inception, including amounts reported in discontinued operations, was $20.9 million. These actions are expected to be substantially completed by the end of 2019.
Manufacturing Alignment to Support Growth
In 2017, the Company initiated several initiatives designed to reduce costs, increase manufacturing capacity to accommodate growth and improve operating efficiencies.  The plan involves the relocation of certain manufacturing operations and expansion of certain of the Company's facilities. The Company estimates that it will incur aggregate pre-tax restructuring related charges in connection with the realignment plan of between approximately $6 million to $7 million, the majority of which are expected to be cash expenditures. Costs related to the Company’s manufacturing alignment to support growth initiative were primarily recorded within the Medical segment. As of September 27, 2019, total expense incurred for this initiative since inception, including amounts reported in discontinued operations, was $5.1 million. These actions are expected to be substantially completed by the end of 2019.
(8.)     OTHER OPERATING EXPENSES (Continued)
Consolidation and Optimization Initiatives
Costs related to the Company’s consolidation and optimization initiatives were primarily recorded within the Medical segment. The Company does not expect to incur any material additional costs associated with these activities.
The following table summarizes the change in accrued liabilities, presented within Accrued Expense and Other Current Liabilities on the Condensed Consolidated Balance Sheets, related to the initiatives described above (in thousands):
 
Severance and Retention
 
Other
 
Total
December 28, 2018
$
1,668

 
$
202

 
$
1,870

Restructuring charges
1,345

 
4,668

 
6,013

Cash payments
(1,629
)
 
(4,863
)
 
(6,492
)
September 27, 2019
$
1,384

 
$
7

 
$
1,391


Asset Dispositions, Severance and Other
During the nine months ended September 27, 2019 and September 28, 2018, the Company recorded expenses related to other initiatives not described above, which relate primarily to integration and operational initiatives to reduce future operating costs and improve operational efficiencies.
v3.19.3
Income Taxes
9 Months Ended
Sep. 27, 2019
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The income tax provision for interim periods is determined using an estimate of the annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the estimate of the annual effective tax rate is updated, and if the estimated effective tax rate changes, a cumulative adjustment is made. There is a potential for volatility of the effective tax rate due to several factors, including discrete items, changes in the mix and amount of pre-tax income and the jurisdictions to which it relates, changes in tax laws and foreign tax holidays, business reorganizations, settlements with taxing authorities and foreign currency fluctuations. In addition, the Company continues to explore tax planning opportunities that may have a material impact on its effective tax rate.
The Company’s effective tax rate for continuing operations for the third quarter of 2019 was 13.8% on $35.5 million of income from continuing operations before taxes compared to 42.6% on $14.5 million of losses from continuing operations before taxes for the same period in 2018. The Company’s effective tax rate for continuing operations for the nine months ended September 27, 2019 was 16.0% on $95.5 million of income from continuing operations before taxes compared to 22.2% on $35.8 million of income from continuing operations before taxes for the same period of 2018. The difference between the Company’s effective tax rates and the U.S. federal statutory income tax rate of 21% for the third quarter of 2019 and nine months ended September 27, 2019 is primarily attributable to discrete tax benefits of $2.3 million and $4.4 million, respectively, as well as the estimated net impact of the Global Intangible Low-Taxed Income tax, the Company’s earnings outside the U.S., which are generally taxed at rates that differ from the U.S federal rate, and the availability of certain tax credits. The discrete tax benefits for 2019 are predominately related to excess tax benefits recognized upon vesting of RSUs or exercise of stock options, favorable return to provision adjustments related to the 2018 tax year, and the release of certain reserves for unrecognized tax benefits.
As of September 27, 2019 and December 28, 2018, the Company had unrecognized tax benefits from continuing operations of approximately $4.2 million and $5.4 million, respectively. During the third quarter of 2019, the Company obtained information that impacted its judgment regarding the sustainability of certain tax deductions taken in prior years. As a result, the Company released $1.2 million of unrecognized tax benefits as a discrete item during the third quarter of 2019. It is reasonably possible that a reduction of up to $0.6 million of the balance of unrecognized tax benefits may occur within the next twelve months as a result of potential audit settlements. As of September 27, 2019 and December 28, 2018, approximately $4.1 million and $5.3 million, respectively, of the unrecognized tax benefits would favorably impact the effective tax rate, net of federal benefit on state issues, if recognized.
v3.19.3
Commitments and Contingencies
9 Months Ended
Sep. 27, 2019
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES
Litigation
The Company is subject to litigation arising from time to time in the ordinary course of its business. The Company does not expect that the ultimate resolution of any pending legal actions will have a material effect on its consolidated results of operations, financial position, or cash flows. However, litigation is subject to inherent uncertainties. As such, there can be no assurance that any pending legal action, which the Company currently believes to be immaterial, will not become material in the future.
In April 2013, the Company commenced an action against AVX Corporation and AVX Filters Corporation (collectively “AVX”) alleging that AVX had infringed on the Company’s patents by manufacturing and selling filtered feedthrough assemblies used in implantable pacemakers and cardioverter defibrillators that incorporate the Company’s patented technology. Two juries in the U.S. District Court for the District of Delaware have returned verdicts finding that AVX infringed on three of the Company’s patents and awarded the Company $37.5 million in damages. In March 2018, the U.S. District Court for the District of Delaware vacated the original damage award and ordered a retrial on damages. In the January 2019 retrial on damages, the jury awarded the Company $22.2 million in damages. On July 31, 2019, the U.S. District Court for the District of Delaware entered an order denying AVX’s post-trial motion to overturn the jury verdict in favor of the Company. On August 23, 2019, AVX filed its notice of appeal with the United States Court of Appeals for the Federal Circuit. On September 5, 2019, the Company filed its notice of cross-appeal with the United States Court of Appeals for the Federal Circuit. To date, the Company has recorded no gains in connection with this litigation.
Product Warranties
The Company generally warrants that its products will meet customer specifications and will be free from defects in materials and workmanship. The Company does not expect future product warranty claims will have a material effect on its condensed consolidated results of operations, financial position, or cash flows. However, there can be no assurance that any future customer complaints or negative regulatory actions regarding the Company’s products, which the Company currently believes to be immaterial, does not become material in the future. The product warranty liability is presented within Accrued Expense and Other Current Liabilities on the Condensed Consolidated Balance Sheets. The change in product warranty liability was comprised of the following (in thousands):
December 28, 2018
$
2,600

Additions to warranty reserve
441

Adjustments to pre-existing warranties
(988
)
Warranty claims settled
(1,221
)
September 27, 2019
$
832


v3.19.3
Leases
9 Months Ended
Sep. 27, 2019
Leases [Abstract]  
Leases LEASES
The Company primarily leases certain office and manufacturing facilities under operating leases, with additional operating leases for machinery, office equipment and vehicles.  An arrangement is considered to contain a lease if it conveys the right to use an identified asset for a period of time in exchange for consideration.  If it is determined that an arrangement contains a lease, classification of a lease as operating or finance is determined by evaluating the five criteria outlined within ASC 842 at inception. The Company does not currently have any finance leases. The Company’s lease agreements do not contain any residual value guarantees or any material restrictive covenants.
Right-of-use (“ROU”) lease assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make payments in exchange for that right of use.  Operating lease ROU assets are presented as Operating Lease Assets, the current portion of operating lease liabilities are presented within Accrued Expense and Other Current Liabilities, and the non-current portion of operating lease liabilities are presented as Operating Lease Liabilities on the Condensed Consolidated Balance Sheets. The current portion of operating lease liabilities was $7.3 million as of September 27, 2019. Leases with a term of 12 months or less are not recorded on the balance sheet.
The Company’s real estate leases often contain options to renew, and less frequently, termination options. The exercise of such renewal and termination options are generally at the Company’s sole discretion.  The Company evaluates renewal and termination options at lease commencement to determine if such options are reasonably certain to be exercised based on economic factors.
For certain leases where rent escalates based upon a change in a financial index, such as the Consumer Price Index, the difference between the rate at lease inception and the subsequent fluctuations in that rate are included in variable lease costs.  Additionally, because the Company has elected to not separate lease and non-lease components, variable costs also include payments to the landlord for common area maintenance, real estate taxes, insurance and other operating expenses.  Lease expense is recognized on a straight-line basis over the lease term, with variable lease payments recognized in the period those payments are incurred.
The discount rate implicit within the Company’s leases is not readily determinable, and therefore, the Company uses its estimated incremental borrowing rate in determining the present value of lease payments.  The incremental borrowing rate is determined based on the Company’s recent debt issuances, lease term and the currency in which lease payments are made.
The following table presents the weighted average remaining lease term and discount rate:
 
September 27,
2019
Weighted-average remaining lease term of operating leases (in years)
7.6

Weighted-average discount rate of operating leases
5.5
%

The components and classification of lease cost are as follows (in thousands):
 
Three Months Ended September 27, 2019
 
Nine Months Ended September 27, 2019
Operating lease cost
$
2,470

 
$
7,361

Short-term lease cost (leases with initial term of 12 months or less)
12

 
46

Variable lease cost
638

 
1,845

Sublease income
(475
)
 
(1,420
)
Total lease cost
$
2,645

 
$
7,832

 
 
 
 
Cost of sales
$
2,220

 
$
6,562

Selling, general and administrative expenses
285

 
837

Research, development and engineering costs
138

 
416

Other operating expenses
2

 
17

Total lease cost
$
2,645

 
$
7,832



(11.)     LEASES (Continued)
The Company’s sublease income is derived primarily from certain real estate leases to several non-affiliated tenants under operating sublease arrangements.
At September 27, 2019, the maturities of operating lease liabilities were as follows (in thousands):
Remainder of 2019
$
2,519

2020
9,454

2021
9,132

2022
7,055

2023
6,274

2024
5,752

Thereafter
16,615

Total lease payments
56,801

Less imputed interest
(10,852
)
Total
$
45,949


As of September 27, 2019, the Company did not have any leases that have not yet commenced.
Supplemental cash flow information related to leases for the nine months ended September 27, 2019 is as follows (in thousands):
Cash paid for amounts included in the measurement of operating lease liabilities
$
7,713

ROU assets obtained in exchange for new operating lease liabilities
8,215


During the nine months ended September 27, 2019, the Company extended the lease terms for four of its manufacturing facilities. As a result of these lease modifications, the Company re-measured the lease liability and adjusted the ROU asset on the modification dates.
The Company’s future minimum lease commitments, net of sublease income, as of December 28, 2018, under ASC 840, the predecessor to ASC 842, are as follows (in thousands):
 
2019
 
2020
 
2021
 
2022
 
2023
 
After 2023
Future minimum lease payments
$
8,562

 
7,290

 
7,348

 
5,269

 
5,112

 
14,589


v3.19.3
Earnings (Loss) Per Share (EPS)
9 Months Ended
Sep. 27, 2019
Earnings Per Share [Abstract]  
EARNINGS (LOSS) PER SHARE (EPS) EARNINGS (LOSS) PER SHARE (“EPS”)
The following table sets forth a reconciliation of the information used in computing basic and diluted EPS (in thousands, except per share amounts):
 
Three Months Ended
 
Nine Months Ended
 
September 27,
2019
 
September 28,
2018
 
September 27,
2019
 
September 28,
2018
Numerator for basic and diluted EPS:
 
 
 
 
 
 
 
Income (loss) from continuing operations
$
30,586

 
$
(8,303
)
 
$
80,174

 
$
27,837

Income from discontinued operations

 
122,382

 
5,138

 
114,382

Net income
$
30,586

 
$
114,079

 
$
85,312

 
$
142,219

 
 
 
 
 
 
 
 
Denominator for basic and diluted EPS:
 
 
 
 
 
 
 
Weighted average shares outstanding - Basic
32,660

 
32,211

 
32,606

 
32,050

Dilutive effect of share-based awards
408

 

 
413

 
401

Weighted average shares outstanding - Diluted
33,068

 
32,211

 
33,019

 
32,451

 
 
 
 
 
 
 
 
Basic earnings (loss) per share:
 
 
 
 
 
 
 
Income (loss) from continuing operations
$
0.94

 
$
(0.26
)
 
$
2.46

 
$
0.87

Income from discontinued operations

 
3.80

 
0.16

 
3.57

Basic earnings per share
0.94

 
3.54

 
2.62

 
4.44

 
 
 
 
 
 
 
 
Diluted earnings (loss) per share:
 
 
 
 
 
 
 
Income (loss) from continuing operations
$
0.92

 
$
(0.26
)
 
$
2.43

 
$
0.86

Income from discontinued operations

 
3.80

 
0.16

 
3.52

Diluted earnings per share
0.92

 
3.54

 
2.58

 
4.38


The diluted weighted average share calculations do not include the following securities, which are not dilutive to the EPS calculations or the performance criteria have not been met (in thousands):
 
Three Months Ended
 
Nine Months Ended
 
September 27,
2019
 
September 28,
2018
 
September 27,
2019
 
September 28,
2018
Time-vested stock options, RSAs and RSUs

 
797

 
29

 
436

Performance-vested restricted stock and PRSUs
50

 
303

 
48

 
220


v3.19.3
Stockholders' Equity
9 Months Ended
Sep. 27, 2019
Stockholders' Equity Note [Abstract]  
STOCKHOLDERS' EQUITY
The following is a summary of the number of shares of common stock issued, treasury stock and common stock outstanding for the nine month periods ended September 27, 2019 and September 28, 2018:
 
Nine Months Ended September 27, 2019
 
Nine Months Ended September 28, 2018
 
Issued
 
Treasury Stock
 
Outstanding
 
Issued
 
Treasury Stock
 
Outstanding
Balance, beginning of period
32,624,494

 
(151,327
)
 
32,473,167

 
31,977,953

 
(106,526
)
 
31,871,427

Stock options exercised
116,904

 

 
116,904

 
381,793

 

 
381,793

RSAs issued, net of forfeitures,
  and vesting of RSUs
99,785

 
(21,229
)
 
78,556

 
141,963

 
(12,496
)
 
129,467

Balance, end of period
32,841,183

 
(172,556
)
 
32,668,627

 
32,501,709

 
(119,022
)
 
32,382,687


(13.)     STOCKHOLDERS’ EQUITY (Continued)
Accumulated Other Comprehensive Income (“AOCI”) is comprised of the following (in thousands):
 
Defined
Benefit
Plan
Liability
 
Cash
Flow
Hedges
 
Foreign
Currency
Translation
Adjustment
 
Total
Pre-Tax
Amount
 
Tax
 
Net-of-Tax
Amount
June 28, 2019
$
(295
)
 
$
(2,567
)
 
$
28,211

 
$
25,349

 
$
582

 
$
25,931

Unrealized loss on cash flow hedges

 
(1,459
)
 

 
(1,459
)
 
307

 
(1,152
)
Realized loss on foreign currency hedges

 
191

 

 
191

 
(40
)
 
151

Realized gain on interest rate swap hedge

 
(444
)
 

 
(444
)
 
93

 
(351
)
Foreign currency translation loss

 

 
(14,810
)
 
(14,810
)
 

 
(14,810
)
September 27, 2019
$
(295
)
 
$
(4,279
)
 
$
13,401

 
$
8,827

 
$
942

 
$
9,769

 
 
 
 
 
 
 
 
 
 
 
 
December 28, 2018
$
(295
)
 
$
3,439

 
$
30,539

 
$
33,683

 
$
(679
)
 
$
33,004

Unrealized loss on cash flow hedges

 
(6,028
)
 

 
(6,028
)
 
1,266

 
(4,762
)
Realized loss on foreign currency hedges

 
157

 

 
157

 
(33
)
 
124

Realized gain on interest rate swap hedges

 
(1,847
)
 

 
(1,847
)
 
388

 
(1,459
)
Foreign currency translation loss

 

 
(17,138
)
 
(17,138
)
 

 
(17,138
)
September 27, 2019
$
(295
)
 
$
(4,279
)
 
$
13,401

 
$
8,827

 
$
942

 
$
9,769

June 29, 2018
$
(1,422
)
 
$
5,094

 
$
37,756

 
$
41,428

 
$
(370
)
 
$
41,058

Unrealized gain on cash flow hedges

 
1,424

 

 
1,424

 
(299
)
 
1,125

Realized gain on foreign currency hedges

 
(141
)
 

 
(141
)
 
30

 
(111
)
Realized gain on interest rate swap hedges

 
(482
)
 

 
(482
)
 
102

 
(380
)
Foreign currency translation loss

 

 
(2,809
)
 
(2,809
)
 

 
(2,809
)
Reclassifications to earnings(1)
948

 

 
(514
)
 
434

 
(282
)
 
152

September 28, 2018
$
(474
)
 
$
5,895

 
$
34,433

 
$
39,854

 
$
(819
)
 
$
39,035

 
 
 
 
 
 
 
 
 
 
 
 
December 29, 2017
$
(1,422
)
 
$
3,418

 
$
50,200

 
$
52,196

 
$
(17
)
 
$
52,179

Unrealized gain on cash flow hedges

 
4,325

 

 
4,325

 
(908
)
 
3,417

Realized gain on foreign currency hedges

 
(734
)
 

 
(734
)
 
154

 
(580
)
Realized gain on interest rate swap hedge

 
(1,114
)
 

 
(1,114
)
 
234

 
(880
)
Foreign currency translation loss

 

 
(15,253
)
 
(15,253
)
 

 
(15,253
)
Reclassifications to earnings(1)
948

 

 
(514
)
 
434

 
(282
)
 
152

September 28, 2018
$
(474
)
 
$
5,895

 
$
34,433

 
$
39,854

 
$
(819
)
 
$
39,035


__________ 
(1) 
Accumulated foreign currency translation losses of $0.5 million and defined benefit plan liabilities of $0.7 million (net of income taxes of $0.3 million) were reclassified to earnings during the three months ended September 28, 2018 as a result of the divestiture of the AS&O Product Line and are included in “Gain on sale of discontinued operations, net of tax” in the Condensed Consolidated Statements of Operations.
v3.19.3
Financial Instruments and Fair Value Measurements
9 Months Ended
Sep. 27, 2019
Fair Value Disclosures [Abstract]  
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS     FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Fair value measurement standards apply to certain financial assets and liabilities that are measured at fair value on a recurring basis (each reporting period). For the Company, these financial assets and liabilities include its derivative instruments. The Company does not have any nonfinancial assets or liabilities that are measured at fair value on a recurring basis.
The Company is exposed to global market risks, including the effect of changes in interest rates and foreign currency exchange rates, and uses derivatives to manage these exposures that occur in the normal course of business. The Company does not hold or issue derivatives for trading or speculative purposes. All derivatives are recorded at fair value on the balance sheet.
Interest Rate Swaps
The Company periodically enters into interest rate swap agreements in order to reduce the cash flow risk caused by interest rate changes on its outstanding floating rate borrowings. Under these swap agreements, the Company pays a fixed rate of interest and receives a floating rate equal to one-month London Interbank Offered Rate (“LIBOR”). The variable rate received from the swap agreements and the variable rate paid on the outstanding debt will have the same rate of interest, excluding the credit spread, and will reset and pay interest on the same date. The Company has designated these swap agreements as cash flow hedges based on concluding the hedged forecasted transaction is probable of occurring within the period the cash flow hedge is anticipated to affect earnings. The unrealized gains and losses on these contracts are reported in AOCI in the Condensed Consolidated Balance Sheets and are subsequently reclassified into earnings when interest on the related debt is accrued.
The fair value of the Company’s swap agreements are determined through the use of a cash flow model that utilizes observable market data inputs. These observable market data inputs include LIBOR, swap rates, and credit spread curves. In addition, the Company receives a fair value estimate from the swap agreement counterparty to verify the reasonableness of the Company’s estimate. The estimated fair value of the swap agreements represents the amount the Company would receive (pay) to terminate the contracts.
Information regarding the Company’s outstanding interest rate swaps designated as cash flow hedges as of September 27, 2019 is as follows (dollars in thousands):
Notional Amount
 
Start Date
 
End
Date
 
Pay Fixed Rate
 
Receive Current Floating Rate
 
Fair Value
 
Balance Sheet Location
$
200,000

 
Jun 2017
 
Jun 2020
 
1.1325
%
 
2.0536
%
 
$
883

 
Accrued expenses and other current liabilities
75,000

 
Jul 2019
 
Jul 2020
 
1.8900

 
2.0536

 
(90
)
 
Accrued expenses and other current liabilities
400,000

 
Apr 2019
 
Apr 2020
 
2.4150

 
2.0421

 
(1,306
)
 
Accrued expenses and other current liabilities
200,000

 
Jun 2020
 
Jun 2023
 
2.1785

 
(a) 
 
(3,753
)
 
Other long-term liabilities
__________ 
(a) The interest rate swap is not in effect until June 2020.
As of December 28, 2018, the Company had outstanding an interest rate swap with a notional amount of $200 million. The fair value as of December 28, 2018 was $4.2 million and was included in Other assets in the Condensed Consolidated Balance Sheets.
Foreign Currency Contracts
The Company periodically enters into foreign currency forward contracts to hedge its exposure to foreign currency exchange rate fluctuations in its international operations. The Company has designated these foreign currency forward contracts as cash flow hedges. The unrealized gains and losses on these contracts are reported in AOCI in the Condensed Consolidated Balance Sheets and are reclassified to earnings in the same periods during which the hedged transactions affect earnings.
(14.)     FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Continued)
Information regarding outstanding foreign currency forward contracts designated as cash flow hedges as of September 27, 2019 is as follows (dollars in thousands):
Notional Amount
 
Start
Date
 
End
Date
 
$/Foreign Currency
 
Fair Value
 
Balance Sheet Location
$
5,249

 
Jul 2019
 
Dec 2019
 
0.0500
 
Peso
 
$
26

 
Accrued expenses and other current liabilities
6,042

 
Jul 2019
 
Dec 2019
 
0.0504
 
Peso
 
(12
)
 
Accrued expenses and other current liabilities
8,339

 
Oct 2019
 
Dec 2019
 
1.1119
 
Euro
 
(95
)
 
Accrued expenses and other current liabilities
11,166

 
Jan 2020
 
Jun 2020
 
0.0490
 
Peso
 
68

 
Accrued expenses and other current liabilities

Information regarding outstanding foreign currency contracts designated as cash flow hedges as of December 28, 2018 is as follows (dollars in thousands):
Notional
Amount
 
Start
Date
 
End
Date
 
$/Foreign Currency
 
Fair
Value
 
Balance Sheet Location
$
12,621

 
Jan 2019
 
Jun 2019
 
1.1686

Euro
 
$
(149
)
 
Accrued Expenses
10,991

 
Jan 2019
 
Jun 2019
 
0.0523

Peso
 
(494
)
 
Accrued Expenses
10,535

 
Jan 2019
 
Jun 2019
 
1.1705

Euro
 
(141
)
 
Accrued Expenses
11,019

 
Jan 2019
 
Jun 2019
 
0.0483

Peso
 
(316
)
 
Accrued Expenses
10,499

 
Jul 2019
 
Dec 2019
 
0.0500

Peso
 
368

 
Accrued Expenses

The fair value of foreign currency contracts are determined through the use of cash flow models that utilize observable market data inputs to estimate fair value. These observable market data inputs include foreign exchange rates and credit spread curves. In addition, the Company receives fair value estimates from the foreign currency contract counterparties to verify the reasonableness of the Company’s estimates.
Derivative Instruments with Hedge Accounting Designation
The following tables present the fair values of derivative instruments formally designated as hedging instruments as of September 27, 2019 and December 28, 2018 (in thousands).
 
 
 
 
Fair Value
 
 
Fair Value Hierarchy
 
Assets
 
Liabilities
September 27, 2019
 
 
 
 
 
 
Interest rate swaps
 
Level 2
 
$

 
$
4,266

Foreign currency contracts
 
Level 2
 

 
13

 
 
 
 
 
 
 
December 28, 2018
 
 
 
 
 
 
Interest rate swaps
 
Level 2
 
$
4,171

 
$

Foreign currency contracts
 
Level 2
 

 
732


(14.)     FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Continued)
The following tables present the amounts in the Condensed Consolidated Statements of Operations in which the effects of cash flow hedges are recorded and the effects of cash flow hedge activity on these line items for the three and nine months ended September 27, 2019 and September 28, 2018 (in thousands):
 
 
Three Months Ended
 
 
September 27, 2019

September 28, 2018
 
 
Total
 
Amount of Gain (Loss) on Cash Flow Hedge Activity
 
Total
 
Amount of Gain (Loss) on Cash Flow Hedge Activity
Sales
 
$
303,587

 
$
(500
)
 
$
305,088

 
$
(252
)
Cost of sales
 
210,201

 
309

 
213,165

 
393

Interest expense
 
12,337

 
444

 
54,526

 
482


 
 
Nine Months Ended
 
 
September 27, 2019
 
September 28, 2018
 
 
Total
 
Amount of Gain (Loss) on Cash Flow Hedge Activity
 
Total
 
Amount of Gain (Loss) on Cash Flow Hedge Activity
Sales
 
$
932,457

 
$
(1,294
)
 
$
911,978

 
$
(254
)
Cost of sales
 
653,477

 
1,137

 
637,758

 
988

Interest expense
 
39,779

 
1,847

 
85,355

 
1,114

The following tables present the amounts affecting the Condensed Consolidated Statements of Operations for the three and nine months ended September 27, 2019 and September 28, 2018 (in thousands):
 
 
Amount of Gain (Loss)
Recognized in Other
Comprehensive Income (Loss) on Derivatives
 
Amount of Gain (Loss) Reclassified from
AOCI into Earnings
 
 
Three months ended,
 
Location of Gain (Loss)
Reclassified from AOCI into Earnings
 
Three months ended,
 
 
September 27,
2019
 
September 28,
2018
 
 
September 27,
2019
 
September 28,
2018
Interest rate swap
 
$
(991
)
 
$
415

 
Interest expense
 
$
444

 
$
482

Foreign exchange forwards
 
(400
)
 
384

 
Sales
 
(500
)
 
(252
)
Foreign exchange forwards
 
(68
)
 
625

 
Cost of sales
 
309

 
393

 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended
 
Location of Gain (Loss)
Reclassified from AOCI into Earnings
 
Nine Months Ended
 
 
September 27,
2019
 
September 28,
2018
 
 
September 27,
2019
 
September 28,
2018
Interest rate swap
 
$
(6,590
)
 
$
2,524

 
Interest expense
 
$
1,847

 
$
1,114

Foreign exchange forwards
 
(1,099
)
 
(92
)
 
Sales
 
(1,294
)
 
(254
)
Foreign exchange forwards
 
1,661

 
1,893

 
Cost of sales
 
1,137

 
988


The Company expects to reclassify net losses totaling $0.5 million related to its cash flow hedges from AOCI into earnings during the next twelve months.
(14.)     FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Continued)
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
Fair value standards also apply to certain assets and liabilities that are measured at fair value on a nonrecurring basis. The carrying amounts of cash, accounts receivable, accounts payable, and accrued expenses approximate fair value because of the short-term nature of these items.
Borrowings under the Company’s Revolving Credit Facility, TLA Facility and TLB Facility accrue interest at a floating rate tied to a standard short-term borrowing index, selected at the Company’s option, plus an applicable margin. The carrying amount of this floating rate debt approximates fair value based upon the respective interest rates adjusting with market rate adjustments.
Equity Investments
The Company holds long-term, strategic investments in companies to promote business and strategic objectives. These investments are included in Other Long-Term Assets on the Condensed Consolidated Balance Sheets. Non-marketable equity securities are equity securities without readily determinable fair value. The Company has elected the practicability exception to use an alternative approach that measures the securities at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes. If an impairment is recognized on the Company’s non-marketable equity securities during the period, these assets are classified as Level 3 within the fair value hierarchy based on the nature of the fair value inputs.
Equity investments are comprised of the following (in thousands):
 
 
 
 
 
September 27,
2019
 
December 28,
2018
Equity method investment
 
 
 
 
$
15,977

 
$
15,148

Non-marketable equity securities
 
 
 
 
6,092

 
7,667

Total equity investments
 
 
 
 
$
22,069

 
$
22,815

The components of (Gain) Loss on Equity Investments, Net for each period were as follows (in thousands):
 
Three Months Ended
 
Nine Months Ended
 
September 27,
2019
 
September 28,
2018
 
September 27,
2019
 
September 28,
2018
Equity method investment income
$
(986
)
 
$
(291
)
 
$
(909
)
 
$
(5,545
)
Impairment charges

 

 
1,575

 

Observable price adjustments on non-marketable
  equity securities

 

 

 

Total (gain) loss on equity investments, net
$
(986
)
 
$
(291
)
 
$
666

 
$
(5,545
)

In May 2019, the Company determined that an investment in one of its non-marketable equity securities was impaired and determined the fair value to be zero based upon available market information. An impairment charge of $1.6 million was recognized during the second quarter of 2019. This assessment was based on qualitative indications of impairment. Factors that significantly influenced the determination of the impairment loss included the equity security’s investee’s financial condition, priority claims to the equity security, distributions rights and preferences, and status of the regulatory approval required to bring its product to market.
The Company’s equity method investment is in a Chinese venture capital fund focused on investing in life sciences companies. As of September 27, 2019, the Company owned 6.7% of this fund.
v3.19.3
Segment Information
9 Months Ended
Sep. 27, 2019
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
The Company organizes its business into two reportable segments: (1) Medical and (2) Non-Medical. This segment structure reflects the financial information and reports used by the Company’s management, specifically its Chief Operating Decision Maker, to make decisions regarding the Company’s business, including resource allocations and performance assessments. This segment structure reflects the Company’s current operating focus in compliance with ASC 280, Segment Reporting. For purposes of segment reporting, intercompany sales between segments are not material.
The following table presents sales from continuing operations by product line (in thousands).
 
Three Months Ended
 
Nine Months Ended
 
September 27,
2019
 
September 28,
2018
 
September 27,
2019
 
September 28,
2018
Segment sales from continuing operations by product line:
 
 
 
 
 
 
Medical
 
 
 
 
 
 
 
Cardio & Vascular
$
148,581

 
$
150,230

 
$
451,552

 
$
435,859

Cardiac & Neuromodulation
106,533

 
109,620

 
337,932

 
334,471

Advanced Surgical, Orthopedics & Portable Medical
34,310

 
32,789

 
98,544

 
101,481

Total Medical
289,424

 
292,639

 
888,028

 
871,811

Non-Medical
14,163

 
12,449

 
44,429

 
40,167

Total sales from continuing operations
$
303,587

 
$
305,088

 
$
932,457

 
$
911,978


The following table presents income from continuing operations for the Company’s reportable segments (in thousands).
 
Three Months Ended
 
Nine Months Ended
 
September 27,
2019
 
September 28,
2018
 
September 27,
2019
 
September 28,
2018
Segment income from continuing operations:
 
 
 
 
 
 
 
Medical
$
62,648

 
$
58,929

 
$
182,734

 
$
167,623

Non-Medical
3,318

 
3,521

 
12,927

 
11,112

Total segment income
65,966

 
62,450

 
195,661

 
178,735

Unallocated operating expenses
(19,485
)
 
(20,991
)
 
(60,674
)
 
(62,875
)
Operating income
46,481

 
41,459

 
134,987

 
115,860

Unallocated expenses, net
(10,982
)
 
(55,919
)
 
(39,524
)
 
(80,067
)
Income (loss) from continuing operations before taxes
$
35,499

 
$
(14,460
)
 
$
95,463

 
$
35,793


v3.19.3
Revenue From Contracts With Customers
9 Months Ended
Sep. 27, 2019
Revenue from Contract with Customer [Abstract]  
REVENUE FROM CONTRACTS WITH CUSTOMERS
REVENUE FROM CONTRACTS WITH CUSTOMERS
Revenue Recognition
The majority of the Company’s revenues consist of sales of various medical devices and products to large, multinational OEMs and their affiliated subsidiaries.  Revenue is recognized when performance obligations are satisfied and the customer has obtained control of the products.  Under the provisions of the majority of the Company’s contracts with customers, revenue is recognized at the point in time when title and risk of ownership transfers to the customer, which is primarily determined based upon the shipping terms.  When contracts with customers for products that do not have an alternative use to the Company contain provisions that provide the Company with an enforceable right to payment for performance completed to date with a recapture of costs incurred plus an applicable margin throughout the duration of the contract, revenue is recognized over time as control is deemed to have transferred to the customer. The Company uses an input measure to determine progress towards completion and total estimated costs at completion. Under this method, sales and gross profit are recognized as work is performed generally based on actual costs incurred. For arrangements recognized over time, the Company records a contract asset for unbilled revenue associated with non-cancellable customer orders. Revenue is recognized net of sales tax, value-added taxes and other taxes.
Disaggregated Revenue
In general, the Company's business segmentation is aligned according to the nature and economic characteristics of its products and customer relationships and provides meaningful disaggregation of each business segment's results of operations. For a summary by disaggregated product line sales for each segment, refer to Note 15, “Segment Information.”
Revenue recognized from products and services transferred to customers over time represented 10% and 11%, respectively, of total revenue for the three and nine months ended September 27, 2019, substantially all of which was within the Medical segment. The Company did not have any significant revenue related to contracts recognized over time for the nine months ended September 28, 2018.
The following table presents revenues by significant customers, which are defined as any customer who individually represents 10% or more of a segment’s total revenues.
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 27, 2019
 
September 27, 2019
Customer
 
Medical
 
Non-Medical
 
Medical
 
Non-Medical
Customer A
 
20
%
 
*

 
22
%
 
*

Customer B
 
18
%
 
*

 
18
%
 
*

Customer C
 
13
%
 
*

 
12
%
 
*

Customer D
 
*

 
22
%
 
*

 
24
%
Customer E
 
*

 
12
%
 
*

 
*

All other customers
 
49
%
 
66
%
 
48
%
 
76
%

(16.)     REVENUE FROM CONTRACTS WITH CUSTOMERS (Continued)
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 28, 2018
 
September 28, 2018
Customer
 
Medical
 
Non-Medical
 
Medical
 
Non-Medical
Customer A
 
23
%
 
*

 
22
%
 
*

Customer B
 
20
%
 
*

 
19
%
 
*

Customer C
 
12
%
 
*

 
12
%
 
*

Customer D
 
*

 
30
%
 
*

 
28
%
All other customers
 
45
%
 
70
%
 
47
%
 
72
%
__________ 
* Less than 10% of segment’s total revenues for the period.
The following table presents revenues by significant ship to location, which is defined as any country where 10% or more of a segment’s total revenues are shipped.
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 27, 2019
 
September 27, 2019
Ship to Location
 
Medical
 
Non-Medical
 
Medical
 
Non-Medical
United States
 
55%
 
61%
 
56%
 
58%
Puerto Rico
 
11%
 
*
 
13%
 
*
Canada
 
*
 
12%
 
*
 
13%
All other countries
 
34%
 
27%
 
31%
 
29%

 
 
Three Months Ended
 
Nine Months Ended
 
 
September 28, 2018
 
September 28, 2018
Ship to Location
 
Medical
 
Non-Medical
 
Medical
 
Non-Medical
United States
 
58%
 
65%
 
56%
 
68%
Puerto Rico
 
13%
 
*
 
13%
 
*
Canada
 
*
 
10%
 
*
 
10%
All other countries
 
29%
 
25%
 
31%
 
22%

__________ 
* Less than 10% of segment’s total revenues for the period.
Contract Balances
The opening and closing balances of the Company's contract assets and contract liabilities are as follows (in thousands):
 
September 27,
2019
 
December 28,
2018
Contract assets included in prepaid expenses and other current assets
$
10,561

 
$

Contract liabilities included in accrued expenses and other current liabilities
2,079

 
2,264


During the three and nine months ended September 27, 2019, the Company recognized $0.4 million and $0.8 million, respectively, of revenue that was included in the contract liability balance as of December 28, 2018. During the three and nine months ended September 28, 2018, the Company recognized $0.2 million and $0.6 million, respectively, of revenue that was included in the contract liability balance as of December 29, 2017.
v3.19.3
Impact of Recently Issued Accounting Standards
9 Months Ended
Sep. 27, 2019
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]  
IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS <div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The following table provides a brief description of recent Accounting Standard Updates ("ASU") issued by the Financial Accounting Standards Board ("FASB") which are not yet effective for the Company</font><font style="font-family:inherit;font-size:10pt;font-style:italic;">.</font></div><div style="line-height:120%;text-align:left;padding-left:48px;text-indent:-48px;font-size:10pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;width:100%;border-collapse:collapse;text-align:left;"><tr><td colspan="7" rowspan="1"></td></tr><tr><td style="width:18%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:35%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:16%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:28%;" rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Standard</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">&#160;</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Description</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">&#160;</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Effective Date</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">&#160;</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Effect on the Financial Statements or Other Significant Matters</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="overflow:hidden;height:80px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;height:80px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="overflow:hidden;height:80px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;height:80px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="overflow:hidden;height:80px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;height:80px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="overflow:hidden;height:80px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;height:80px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;height:80px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;height:80px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;height:80px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;height:80px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;height:80px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;height:80px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td></tr></table></div></div></div>
v3.19.3
Basis of Presentation (Policies)
9 Months Ended
Sep. 27, 2019
Accounting Policies [Abstract]  
Interim Basis of Accounting For further information, refer to the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 28, 2018.
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information (Accounting Standards Codification (“ASC”) 270, Interim Reporting) and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these financial statements do not include all of the information necessary for a full presentation of financial position, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America (“GAAP”). In the opinion of management, the condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the results of the Company for the periods presented. Intercompany transactions and balances have been fully eliminated in consolidation.
Operating results for interim periods are not necessarily indicative of results that may be expected for the fiscal year as a whole.
Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, certain components of equity, sales, expenses, and related disclosures at the date of the financial statements and during the reporting period. Actual results could differ materially from these estimates.
Fiscal Period he Company has utilized a 52/53-week fiscal year ending on the Friday nearest December 31. On October 9, 2019, the Board of Directors of Integer approved a change to the Company’s fiscal year from a year ending on the Friday nearest December 31 to a calendar year ending on December 31. Upon receipt of the customary approval of the lenders under the Company’s senior secured credit facilities, the Company’s current fiscal year will end on December 31, 2019, instead of January 3, 2020, with subsequent fiscal years beginning on January 1 and ending on December 31 of each year. The Company’s first three fiscal quarters in each fiscal year will continue to end on the Friday nearest March 31, June 30 and September 30, respectively. Fiscal year 2018 ended on December 28, 2018 and was a fifty-two week period.The third quarter of 2019 and 2018 each contained 13 weeks and ended on September 27 and September 28, respectively
Income Taxes
The income tax provision for interim periods is determined using an estimate of the annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the estimate of the annual effective tax rate is updated, and if the estimated effective tax rate changes, a cumulative adjustment is made. There is a potential for volatility of the effective tax rate due to several factors, including discrete items, changes in the mix and amount of pre-tax income and the jurisdictions to which it relates, changes in tax laws and foreign tax holidays, business reorganizations, settlements with taxing authorities and foreign currency fluctuations. In addition, the Company continues to explore tax planning opportunities that may have a material impact on its effective tax rate.
Cost And Equity Method Investments The Company holds long-term, strategic investments in companies to promote business and strategic objectives. These investments are included in Other Long-Term Assets on the Condensed Consolidated Balance Sheets. Non-marketable equity securities are equity securities without readily determinable fair value. The Company has elected the practicability exception to use an alternative approach that measures the securities at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes.
v3.19.3
Discontinued Operations (Tables)
9 Months Ended
Sep. 27, 2019
Discontinued Operations and Disposal Groups [Abstract]  
Summary of discontinued operations Income from discontinued operations net of taxes, were as follows (in thousands):
 
Three Months Ended
 
Nine Months Ended
 
September 27,
2019
 
September 28,
2018
 
September 27,
2019
 
September 28,
2018
Sales
$

 
$

 
$

 
$
178,020

Cost of sales

 

 

 
148,357

Gross profit

 

 

 
29,663

Selling, general and administrative expenses

 

 

 
8,905

Research, development and engineering costs

 

 

 
2,352

Other operating expenses (income)(1)

 
(2,185
)
 

 
1,805

Interest expense

 
976

 

 
22,833

Gain on sale of discontinued operations

 
(194,734
)
 
(4,974
)
 
(194,734
)
Other (income) loss, net

 
69

 
(342
)
 
251

Income from discontinued operations before taxes

 
195,874

 
5,316

 
188,251

Provision for income taxes

 
73,492

 
178

 
73,869

Income from discontinued operations
$

 
$
122,382

 
$
5,138

 
$
114,382


Cash flow information from discontinued operations was as follows (in thousands):
 
Nine Months Ended
 
September 27,
2019
 
September 28,
2018
Cash used in operating activities
$
(58
)
 
$
(12,388
)
Cash provided by (used in) investing activities
4,734

 
578,763

Depreciation and amortization

 
7,450

Capital expenditures

 
3,610


v3.19.3
Inventories (Tables)
9 Months Ended
Sep. 27, 2019
Inventory Disclosure [Abstract]  
Schedule of Inventory, Current
Inventories are comprised of the following (in thousands):
 
September 27,
2019
 
December 28,
2018
Raw materials
$
83,171

 
$
80,213

Work-in-process
78,803

 
75,711

Finished goods
36,003

 
34,152

Total
$
197,977

 
$
190,076


v3.19.3
Goodwill and Other Intangible Assets, Net (Tables)
9 Months Ended
Sep. 27, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill
The changes in the carrying amount of goodwill by reportable segment for the nine months ended September 27, 2019 were as follows (in thousands):
 
Medical
 
Non- Medical
 
Total
December 28, 2018
$
815,338

 
$
17,000

 
$
832,338

Foreign currency translation
(7,020
)
 

 
(7,020
)
September 27, 2019
$
808,318

 
$
17,000

 
$
825,318


Schedule of Finite-Lived Intangible Assets, Major Class
Intangible assets at September 27, 2019 and December 28, 2018 were as follows (in thousands):
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
September 27, 2019
 
 
 
 

Definite-lived:
 
 
 
 
 
Purchased technology and patents
$
239,905

 
$
(134,560
)
 
$
105,345

Customer lists
702,723

 
(123,617
)
 
579,106

Other
3,503

 
(3,498
)
 
5

Total
$
946,131

 
$
(261,675
)
 
$
684,456

Indefinite-lived:
 
 
 
 
 
Trademarks and tradenames


 
 
 
$
90,288

 
 
 
 
 
 
December 28, 2018
 
 
 
 

Definite-lived:
 
 
 
 
 
Purchased technology and patents
$
241,726

 
$
(125,540
)
 
$
116,186

Customer lists
710,406

 
(104,556
)
 
605,850

Other
3,503

 
(3,489
)
 
14

Total
$
955,635

 
$
(233,585
)
 
$
722,050

Indefinite-lived:
 
 
 
 
 
Trademarks and tradenames


 
 
 
$
90,288


Schedule of Indefinite-Lived Intangible Assets
Intangible assets at September 27, 2019 and December 28, 2018 were as follows (in thousands):
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
September 27, 2019
 
 
 
 

Definite-lived:
 
 
 
 
 
Purchased technology and patents
$
239,905

 
$
(134,560
)
 
$
105,345

Customer lists
702,723

 
(123,617
)
 
579,106

Other
3,503

 
(3,498
)
 
5

Total
$
946,131

 
$
(261,675
)
 
$
684,456

Indefinite-lived:
 
 
 
 
 
Trademarks and tradenames


 
 
 
$
90,288

 
 
 
 
 
 
December 28, 2018
 
 
 
 

Definite-lived:
 
 
 
 
 
Purchased technology and patents
$
241,726

 
$
(125,540
)
 
$
116,186

Customer lists
710,406

 
(104,556
)
 
605,850

Other
3,503

 
(3,489
)
 
14

Total
$
955,635

 
$
(233,585
)
 
$
722,050

Indefinite-lived:
 
 
 
 
 
Trademarks and tradenames


 
 
 
$
90,288


Schedule of Finite-Lived Intangible Assets, Amortization Expense
Aggregate intangible asset amortization expense is comprised of the following (in thousands):
 
Three Months Ended
 
Nine Months Ended
 
September 27,
2019
 
September 28,
2018
 
September 27,
2019
 
September 28,
2018
Cost of sales
$
3,165

 
$
3,367

 
$
9,622

 
$
10,756

Selling, general and administrative expenses
6,617

 
6,490

 
19,845

 
20,196

Research, development and engineering costs

 
39

 

 
116

Total intangible asset amortization expense
$
9,782

 
$
9,896

 
$
29,467

 
$
31,068


Schedule of Finite-Lived Intangible Assets, Future Amortization Expense
Estimated future intangible asset amortization expense based on the carrying value as of September 27, 2019 is as follows (in thousands):
 
Remainder of 2019
 
2020
 
2021
 
2022
 
2023
 
After 2023
Amortization Expense
$
10,492

 
40,065

 
39,219

 
38,194

 
36,359

 
520,127


v3.19.3
Debt (Tables)
9 Months Ended
Sep. 27, 2019
Debt Disclosure [Abstract]  
Schedule of Long-Term Debt
Long-term debt is comprised of the following (in thousands):
 
September 27,
2019
 
December 28,
2018
Senior secured term loan A
$
276,563

 
$
304,687

Senior secured term loan B
563,286

 
632,286

Revolving line of credit

 
5,000

Unamortized discount on term loan B and debt issuance costs
(11,929
)
 
(16,466
)
Total debt
827,920

 
925,507

Current portion of long-term debt
(37,500
)
 
(37,500
)
Total long-term debt
$
790,420

 
$
888,007


Schedule of Maturities of Long-term Debt
Contractual maturities under the Senior Secured Credit Facilities for the remainder of 2019 and the next three years (through maturity), excluding any discounts or premiums, as of September 27, 2019 are as follows (in thousands):
 
 
2019
 
2020
 
2021
 
2022
Future minimum principal payments
 
$
9,375

 
37,500

 
229,688

 
563,286


Schedule of Deferred Financing Fees The Company prepaid portions of its TLB Facility during 2019 and 2018. The Company recognized losses from extinguishment of debt during the three and nine months ended September 27, 2019 of $0.3 million and $1.3 million, respectively. The Company recognized losses from extinguishment of debt during the three and nine months ended September 28, 2018 of $9.3 million and $10.8 million, respectively. The loss from extinguishment of debt represents the portion of the unamortized discount and debt issuance costs related to the portion of the TLB Facility that was prepaid and is included in Interest Expense in the accompanying Condensed Consolidated Statements of Operations.
v3.19.3
Stock-Based Compensation (Tables)
9 Months Ended
Sep. 27, 2019
Share-based Payment Arrangement [Abstract]  
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs
The components and classification of stock-based compensation expense were as follows (in thousands):
 
Three Months Ended
 
Nine Months Ended
 
September 27,
2019
 
September 28,
2018
 
September 27,
2019
 
September 28,
2018
Stock options
$
101

 
$
215

 
$
304

 
$
726

RSAs and RSUs
1,360

 
1,872

 
6,590

 
6,544

Stock-based compensation expense - continuing operations
1,461

 
2,087

 
6,894

 
7,270

Discontinued operations

 
(510
)
 

 
414

Total stock-based compensation expense
$
1,461

 
$
1,577

 
$
6,894

 
$
7,684

 
 
 
 
 
 
 
 
Cost of sales
$
168

 
$
222

 
$
766

 
$
598

Selling, general and administrative expenses
1,155

 
1,821

 
5,819

 
6,568

Research, development and engineering costs
69

 
44

 
193

 
99

Other operating expenses
69

 

 
116

 
5

Discontinued operations

 
(510
)
 

 
414

Total stock-based compensation expense
$
1,461

 
$
1,577

 
$
6,894

 
$
7,684


Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions The weighted average fair value and assumptions used to value options granted during the nine months ended September 28, 2018 are as follows:
Weighted average fair value
 
$
14.89

Risk-free interest rate
 
2.21
%
Expected volatility
 
39
%
Expected life (in years)
 
4.0

Expected dividend yield
 
%

The weighted average fair value and assumptions used to value the TSR portion of the PRSUs granted are as follows:
 
Nine Months Ended
 
September 27,
2019
 
September 28,
2018
Weighted average fair value
$
117.03

 
$
37.46

Risk-free interest rate
2.46
%
 
2.28
%
Expected volatility
40
%
 
40
%
Expected life (in years)
2.8

 
2.9

Expected dividend yield
%
 
%

Schedule of Share-based Compensation, Stock Options Activity
The following table summarizes the Company’s stock option activity:
 
Number of
Stock
Options
 
Weighted
Average
Exercise
Price
 
Weighted
Average
Remaining
Contractual
Life
(In Years)
 
Aggregate
Intrinsic
Value
(In Millions)
Outstanding at December 28, 2018
522,783

 
$
31.88

 
 
 
 
Exercised
(116,904
)
 
22.70

 
 
 
 
Outstanding at September 27, 2019
405,879

 
$
34.52

 
5.3
 
$
16.3

Exercisable at September 27, 2019
371,564

 
$
34.10

 
5.1
 
$
15.1


Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity
The following table summarizes RSA and RSU activity:
 
Time-Vested
Activity
 
Weighted Average Fair Value
Nonvested at December 28, 2018
142,236

 
$
49.78

Granted
104,636

 
82.96

Vested
(24,752
)
 
63.34

Forfeited
(16,009
)
 
57.49

Nonvested at September 27, 2019
206,111

 
$
64.40

(7.)     STOCK-BASED COMPENSATION (Continued)
The following table summarizes PRSU activity:
 
Performance-
Vested
Activity
 
Weighted
Average
Fair Value
Nonvested at December 28, 2018
287,134

 
$
36.15

Granted
50,492

 
101.17

Vested
(75,008
)
 
28.41

Forfeited
(68,153
)
 
34.17

Nonvested at September 27, 2019
194,465

 
$
56.71


v3.19.3
Other Operating Expenses, Net (Tables)
9 Months Ended
Sep. 27, 2019
Other Income and Expenses [Abstract]  
Schedule of Other Operating Cost and Expense By Component
Other Operating Expenses is comprised of the following (in thousands):
 
Three Months Ended
 
Nine Months Ended
 
September 27,
2019
 
September 28,
2018
 
September 27,
2019
 
September 28,
2018
Strategic reorganization and alignment
$
962

 
$
2,643

 
$
4,352

 
$
8,424

Manufacturing alignment to support growth
515

 
877

 
1,661

 
2,493

Consolidation and optimization initiatives

 
137

 

 
698

Asset dispositions, severance and other
764

 
482

 
2,226

 
1,000

Other operating expenses - continuing operations
2,241

 
4,139

 
8,239

 
12,615

Discontinued operations(1)

 
(2,185
)
 

 
1,805

Total other operating expenses
$
2,241

 
$
1,954

 
$
8,239

 
$
14,420


Schedule of Changes in Accrued Liabilities
The following table summarizes the change in accrued liabilities, presented within Accrued Expense and Other Current Liabilities on the Condensed Consolidated Balance Sheets, related to the initiatives described above (in thousands):
 
Severance and Retention
 
Other
 
Total
December 28, 2018
$
1,668

 
$
202

 
$
1,870

Restructuring charges
1,345

 
4,668

 
6,013

Cash payments
(1,629
)
 
(4,863
)
 
(6,492
)
September 27, 2019
$
1,384

 
$
7

 
$
1,391


v3.19.3
Commitments and Contingencies (Tables)
9 Months Ended
Sep. 27, 2019
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Product Warranty Liability The change in product warranty liability was comprised of the following (in thousands):
December 28, 2018
$
2,600

Additions to warranty reserve
441

Adjustments to pre-existing warranties
(988
)
Warranty claims settled
(1,221
)
September 27, 2019
$
832


v3.19.3
Leases (Tables)
9 Months Ended
Sep. 27, 2019
Leases [Abstract]  
Schedule of Lease Costs
The following table presents the weighted average remaining lease term and discount rate:
 
September 27,
2019
Weighted-average remaining lease term of operating leases (in years)
7.6

Weighted-average discount rate of operating leases
5.5
%

Supplemental cash flow information related to leases for the nine months ended September 27, 2019 is as follows (in thousands):
Cash paid for amounts included in the measurement of operating lease liabilities
$
7,713

ROU assets obtained in exchange for new operating lease liabilities
8,215


The components and classification of lease cost are as follows (in thousands):
 
Three Months Ended September 27, 2019
 
Nine Months Ended September 27, 2019
Operating lease cost
$
2,470

 
$
7,361

Short-term lease cost (leases with initial term of 12 months or less)
12

 
46

Variable lease cost
638

 
1,845

Sublease income
(475
)
 
(1,420
)
Total lease cost
$
2,645

 
$
7,832

 
 
 
 
Cost of sales
$
2,220

 
$
6,562

Selling, general and administrative expenses
285

 
837

Research, development and engineering costs
138

 
416

Other operating expenses
2

 
17

Total lease cost
$
2,645

 
$
7,832



Schedule of Operating Lease Liability Maturities (Topic 842)
At September 27, 2019, the maturities of operating lease liabilities were as follows (in thousands):
Remainder of 2019
$
2,519

2020
9,454

2021
9,132

2022
7,055

2023
6,274

2024
5,752

Thereafter
16,615

Total lease payments
56,801

Less imputed interest
(10,852
)
Total
$
45,949


v3.19.3
Earnings (Loss) Per Share (EPS) (Tables)
9 Months Ended
Sep. 27, 2019
Earnings Per Share [Abstract]  
Schedule of Calculation of Numerator and Denominator in Earnings Per Share (in thousands, except per share amounts):
 
Three Months Ended
 
Nine Months Ended
 
September 27,
2019
 
September 28,
2018
 
September 27,
2019
 
September 28,
2018
Numerator for basic and diluted EPS:
 
 
 
 
 
 
 
Income (loss) from continuing operations
$
30,586

 
$
(8,303
)
 
$
80,174

 
$
27,837

Income from discontinued operations

 
122,382

 
5,138

 
114,382

Net income
$
30,586

 
$
114,079

 
$
85,312

 
$
142,219

 
 
 
 
 
 
 
 
Denominator for basic and diluted EPS:
 
 
 
 
 
 
 
Weighted average shares outstanding - Basic
32,660

 
32,211

 
32,606

 
32,050

Dilutive effect of share-based awards
408

 

 
413

 
401

Weighted average shares outstanding - Diluted
33,068

 
32,211

 
33,019

 
32,451

 
 
 
 
 
 
 
 
Basic earnings (loss) per share:
 
 
 
 
 
 
 
Income (loss) from continuing operations
$
0.94

 
$
(0.26
)
 
$
2.46

 
$
0.87

Income from discontinued operations

 
3.80

 
0.16

 
3.57

Basic earnings per share
0.94

 
3.54

 
2.62

 
4.44

 
 
 
 
 
 
 
 
Diluted earnings (loss) per share:
 
 
 
 
 
 
 
Income (loss) from continuing operations
$
0.92

 
$
(0.26
)
 
$
2.43

 
$
0.86

Income from discontinued operations

 
3.80

 
0.16

 
3.52

Diluted earnings per share
0.92

 
3.54

 
2.58

 
4.38


Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share
The diluted weighted average share calculations do not include the following securities, which are not dilutive to the EPS calculations or the performance criteria have not been met (in thousands):
 
Three Months Ended
 
Nine Months Ended
 
September 27,
2019
 
September 28,
2018
 
September 27,
2019
 
September 28,
2018
Time-vested stock options, RSAs and RSUs

 
797

 
29

 
436

Performance-vested restricted stock and PRSUs
50

 
303

 
48

 
220


v3.19.3
Stockholders' Equity (Tables)
9 Months Ended
Sep. 27, 2019
Stockholders' Equity Note [Abstract]  
Schedule of Common Stock Outstanding Roll Forward
The following is a summary of the number of shares of common stock issued, treasury stock and common stock outstanding for the nine month periods ended September 27, 2019 and September 28, 2018:
 
Nine Months Ended September 27, 2019
 
Nine Months Ended September 28, 2018
 
Issued
 
Treasury Stock
 
Outstanding
 
Issued
 
Treasury Stock
 
Outstanding
Balance, beginning of period
32,624,494

 
(151,327
)
 
32,473,167

 
31,977,953

 
(106,526
)
 
31,871,427

Stock options exercised
116,904

 

 
116,904

 
381,793

 

 
381,793

RSAs issued, net of forfeitures,
  and vesting of RSUs
99,785

 
(21,229
)
 
78,556

 
141,963

 
(12,496
)
 
129,467

Balance, end of period
32,841,183

 
(172,556
)
 
32,668,627

 
32,501,709

 
(119,022
)
 
32,382,687


Schedule of Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (“AOCI”) is comprised of the following (in thousands):
 
Defined
Benefit
Plan
Liability
 
Cash
Flow
Hedges
 
Foreign
Currency
Translation
Adjustment
 
Total
Pre-Tax
Amount
 
Tax
 
Net-of-Tax
Amount
June 28, 2019
$
(295
)
 
$
(2,567
)
 
$
28,211

 
$
25,349

 
$
582

 
$
25,931

Unrealized loss on cash flow hedges

 
(1,459
)
 

 
(1,459
)
 
307

 
(1,152
)
Realized loss on foreign currency hedges

 
191

 

 
191

 
(40
)
 
151

Realized gain on interest rate swap hedge

 
(444
)
 

 
(444
)
 
93

 
(351
)
Foreign currency translation loss

 

 
(14,810
)
 
(14,810
)
 

 
(14,810
)
September 27, 2019
$
(295
)
 
$
(4,279
)
 
$
13,401

 
$
8,827

 
$
942

 
$
9,769

 
 
 
 
 
 
 
 
 
 
 
 
December 28, 2018
$
(295
)
 
$
3,439

 
$
30,539

 
$
33,683

 
$
(679
)
 
$
33,004

Unrealized loss on cash flow hedges

 
(6,028
)
 

 
(6,028
)
 
1,266

 
(4,762
)
Realized loss on foreign currency hedges

 
157

 

 
157

 
(33
)
 
124

Realized gain on interest rate swap hedges

 
(1,847
)
 

 
(1,847
)
 
388

 
(1,459
)
Foreign currency translation loss

 

 
(17,138
)
 
(17,138
)
 

 
(17,138
)
September 27, 2019
$
(295
)
 
$
(4,279
)
 
$
13,401

 
$
8,827

 
$
942

 
$
9,769

June 29, 2018
$
(1,422
)
 
$
5,094

 
$
37,756

 
$
41,428

 
$
(370
)
 
$
41,058

Unrealized gain on cash flow hedges

 
1,424

 

 
1,424

 
(299
)
 
1,125

Realized gain on foreign currency hedges

 
(141
)
 

 
(141
)
 
30

 
(111
)
Realized gain on interest rate swap hedges

 
(482
)
 

 
(482
)
 
102

 
(380
)
Foreign currency translation loss

 

 
(2,809
)
 
(2,809
)
 

 
(2,809
)
Reclassifications to earnings(1)
948

 

 
(514
)
 
434

 
(282
)
 
152

September 28, 2018
$
(474
)
 
$
5,895

 
$
34,433

 
$
39,854

 
$
(819
)
 
$
39,035

 
 
 
 
 
 
 
 
 
 
 
 
December 29, 2017
$
(1,422
)
 
$
3,418

 
$
50,200

 
$
52,196

 
$
(17
)
 
$
52,179

Unrealized gain on cash flow hedges

 
4,325

 

 
4,325

 
(908
)
 
3,417

Realized gain on foreign currency hedges

 
(734
)
 

 
(734
)
 
154

 
(580
)
Realized gain on interest rate swap hedge

 
(1,114
)
 

 
(1,114
)
 
234

 
(880
)
Foreign currency translation loss

 

 
(15,253
)
 
(15,253
)
 

 
(15,253
)
Reclassifications to earnings(1)
948

 

 
(514
)
 
434

 
(282
)
 
152

September 28, 2018
$
(474
)
 
$
5,895

 
$
34,433

 
$
39,854

 
$
(819
)
 
$
39,035


v3.19.3
Financial Instruments and Fair Value Measurements (Tables)
9 Months Ended
Sep. 27, 2019
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
Information regarding the Company’s outstanding interest rate swaps designated as cash flow hedges as of September 27, 2019 is as follows (dollars in thousands):
Notional Amount
 
Start Date
 
End
Date
 
Pay Fixed Rate
 
Receive Current Floating Rate
 
Fair Value
 
Balance Sheet Location
$
200,000

 
Jun 2017
 
Jun 2020
 
1.1325
%
 
2.0536
%
 
$
883

 
Accrued expenses and other current liabilities
75,000

 
Jul 2019
 
Jul 2020
 
1.8900

 
2.0536

 
(90
)
 
Accrued expenses and other current liabilities
400,000

 
Apr 2019
 
Apr 2020
 
2.4150

 
2.0421

 
(1,306
)
 
Accrued expenses and other current liabilities
200,000

 
Jun 2020
 
Jun 2023
 
2.1785

 
(a) 
 
(3,753
)
 
Other long-term liabilities
__________ 
(a) The interest rate swap is not in effect until June 2020.
Information regarding outstanding foreign currency forward contracts designated as cash flow hedges as of September 27, 2019 is as follows (dollars in thousands):
Notional Amount
 
Start
Date
 
End
Date
 
$/Foreign Currency
 
Fair Value
 
Balance Sheet Location
$
5,249

 
Jul 2019
 
Dec 2019
 
0.0500
 
Peso
 
$
26

 
Accrued expenses and other current liabilities
6,042

 
Jul 2019
 
Dec 2019
 
0.0504
 
Peso
 
(12
)
 
Accrued expenses and other current liabilities
8,339

 
Oct 2019
 
Dec 2019
 
1.1119
 
Euro
 
(95
)
 
Accrued expenses and other current liabilities
11,166

 
Jan 2020
 
Jun 2020
 
0.0490
 
Peso
 
68

 
Accrued expenses and other current liabilities

Information regarding outstanding foreign currency contracts designated as cash flow hedges as of December 28, 2018 is as follows (dollars in thousands):
Notional
Amount
 
Start
Date
 
End
Date
 
$/Foreign Currency
 
Fair
Value
 
Balance Sheet Location
$
12,621

 
Jan 2019
 
Jun 2019
 
1.1686

Euro
 
$
(149
)
 
Accrued Expenses
10,991

 
Jan 2019
 
Jun 2019
 
0.0523

Peso
 
(494
)
 
Accrued Expenses
10,535

 
Jan 2019
 
Jun 2019
 
1.1705

Euro
 
(141
)
 
Accrued Expenses
11,019

 
Jan 2019
 
Jun 2019
 
0.0483

Peso
 
(316
)
 
Accrued Expenses
10,499

 
Jul 2019
 
Dec 2019
 
0.0500

Peso
 
368

 
Accrued Expenses

 
 
 
 
Fair Value
 
 
Fair Value Hierarchy
 
Assets
 
Liabilities
September 27, 2019
 
 
 
 
 
 
Interest rate swaps
 
Level 2
 
$

 
$
4,266

Foreign currency contracts
 
Level 2
 

 
13

 
 
 
 
 
 
 
December 28, 2018
 
 
 
 
 
 
Interest rate swaps
 
Level 2
 
$
4,171

 
$

Foreign currency contracts
 
Level 2
 

 
732


Equity Method Investments [Table Text Block]
 
 
 
 
 
September 27,
2019
 
December 28,
2018
Equity method investment
 
 
 
 
$
15,977

 
$
15,148

Non-marketable equity securities
 
 
 
 
6,092

 
7,667

Total equity investments
 
 
 
 
$
22,069

 
$
22,815

The components of (Gain) Loss on Equity Investments, Net for each period were as follows (in thousands):
 
Three Months Ended
 
Nine Months Ended
 
September 27,
2019
 
September 28,
2018
 
September 27,
2019
 
September 28,
2018
Equity method investment income
$
(986
)
 
$
(291
)
 
$
(909
)
 
$
(5,545
)
Impairment charges

 

 
1,575

 

Observable price adjustments on non-marketable
  equity securities

 

 

 

Total (gain) loss on equity investments, net
$
(986
)
 
$
(291
)
 
$
666

 
$
(5,545
)

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance
The following tables present the amounts in the Condensed Consolidated Statements of Operations in which the effects of cash flow hedges are recorded and the effects of cash flow hedge activity on these line items for the three and nine months ended September 27, 2019 and September 28, 2018 (in thousands):
 
 
Three Months Ended
 
 
September 27, 2019

September 28, 2018
 
 
Total
 
Amount of Gain (Loss) on Cash Flow Hedge Activity
 
Total
 
Amount of Gain (Loss) on Cash Flow Hedge Activity
Sales
 
$
303,587

 
$
(500
)
 
$
305,088

 
$
(252
)
Cost of sales
 
210,201

 
309

 
213,165

 
393

Interest expense
 
12,337

 
444

 
54,526

 
482


Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)
The following tables present the amounts affecting the Condensed Consolidated Statements of Operations for the three and nine months ended September 27, 2019 and September 28, 2018 (in thousands):
 
 
Amount of Gain (Loss)
Recognized in Other
Comprehensive Income (Loss) on Derivatives
 
Amount of Gain (Loss) Reclassified from
AOCI into Earnings
 
 
Three months ended,
 
Location of Gain (Loss)
Reclassified from AOCI into Earnings
 
Three months ended,
 
 
September 27,
2019
 
September 28,
2018
 
 
September 27,
2019
 
September 28,
2018
Interest rate swap
 
$
(991
)
 
$
415

 
Interest expense
 
$
444

 
$
482

Foreign exchange forwards
 
(400
)
 
384

 
Sales
 
(500
)
 
(252
)
Foreign exchange forwards
 
(68
)
 
625

 
Cost of sales
 
309

 
393

 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended
 
Location of Gain (Loss)
Reclassified from AOCI into Earnings
 
Nine Months Ended
 
 
September 27,
2019
 
September 28,
2018
 
 
September 27,
2019
 
September 28,
2018
Interest rate swap
 
$
(6,590
)
 
$
2,524

 
Interest expense
 
$
1,847

 
$
1,114

Foreign exchange forwards
 
(1,099
)
 
(92
)
 
Sales
 
(1,294
)
 
(254
)
Foreign exchange forwards
 
1,661

 
1,893

 
Cost of sales
 
1,137

 
988


v3.19.3
Segment Information (Tables)
9 Months Ended
Sep. 27, 2019
Segment Reconciliation [Abstract]  
Reconciliation of Revenue from Segments to Consolidated
 
Three Months Ended
 
Nine Months Ended
 
September 27,
2019
 
September 28,
2018
 
September 27,
2019
 
September 28,
2018
Segment sales from continuing operations by product line:
 
 
 
 
 
 
Medical
 
 
 
 
 
 
 
Cardio & Vascular
$
148,581

 
$
150,230

 
$
451,552

 
$
435,859

Cardiac & Neuromodulation
106,533

 
109,620

 
337,932

 
334,471

Advanced Surgical, Orthopedics & Portable Medical
34,310

 
32,789

 
98,544

 
101,481

Total Medical
289,424

 
292,639

 
888,028

 
871,811

Non-Medical
14,163

 
12,449

 
44,429

 
40,167

Total sales from continuing operations
$
303,587

 
$
305,088

 
$
932,457

 
$
911,978


Reconciliation of Operating Profit (Loss) from Segments to Consolidated
 
Three Months Ended
 
Nine Months Ended
 
September 27,
2019
 
September 28,
2018
 
September 27,
2019
 
September 28,
2018
Segment income from continuing operations:
 
 
 
 
 
 
 
Medical
$
62,648

 
$
58,929

 
$
182,734

 
$
167,623

Non-Medical
3,318

 
3,521

 
12,927

 
11,112

Total segment income
65,966

 
62,450

 
195,661

 
178,735

Unallocated operating expenses
(19,485
)
 
(20,991
)
 
(60,674
)
 
(62,875
)
Operating income
46,481

 
41,459

 
134,987

 
115,860

Unallocated expenses, net
(10,982
)
 
(55,919
)
 
(39,524
)
 
(80,067
)
Income (loss) from continuing operations before taxes
$
35,499

 
$
(14,460
)
 
$
95,463

 
$
35,793


v3.19.3
Revenue From Contracts With Customers (Tables)
9 Months Ended
Sep. 27, 2019
Capitalized Contract Cost [Line Items]  
Contract with Customer, Asset and Liability [Table Text Block]
 
September 27,
2019
 
December 28,
2018
Contract assets included in prepaid expenses and other current assets
$
10,561

 
$

Contract liabilities included in accrued expenses and other current liabilities
2,079

 
2,264


Summary of Disaggregation of Revenue
The following table presents revenues by significant customers, which are defined as any customer who individually represents 10% or more of a segment’s total revenues.
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 27, 2019
 
September 27, 2019
Customer
 
Medical
 
Non-Medical
 
Medical
 
Non-Medical
Customer A
 
20
%
 
*

 
22
%
 
*

Customer B
 
18
%
 
*

 
18
%
 
*

Customer C
 
13
%
 
*

 
12
%
 
*

Customer D
 
*

 
22
%
 
*

 
24
%
Customer E
 
*

 
12
%
 
*

 
*

All other customers
 
49
%
 
66
%
 
48
%
 
76
%

(16.)     REVENUE FROM CONTRACTS WITH CUSTOMERS (Continued)
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 28, 2018
 
September 28, 2018
Customer
 
Medical
 
Non-Medical
 
Medical
 
Non-Medical
Customer A
 
23
%
 
*

 
22
%
 
*

Customer B
 
20
%
 
*

 
19
%
 
*

Customer C
 
12
%
 
*

 
12
%
 
*

Customer D
 
*

 
30
%
 
*

 
28
%
All other customers
 
45
%
 
70
%
 
47
%
 
72
%
__________ 
* Less than 10% of segment’s total revenues for the period.
The following table presents revenues by significant ship to location, which is defined as any country where 10% or more of a segment’s total revenues are shipped.
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 27, 2019
 
September 27, 2019
Ship to Location
 
Medical
 
Non-Medical
 
Medical
 
Non-Medical
United States
 
55%
 
61%
 
56%
 
58%
Puerto Rico
 
11%
 
*
 
13%
 
*
Canada
 
*
 
12%
 
*
 
13%
All other countries
 
34%
 
27%
 
31%
 
29%

 
 
Three Months Ended
 
Nine Months Ended
 
 
September 28, 2018
 
September 28, 2018
Ship to Location
 
Medical
 
Non-Medical
 
Medical
 
Non-Medical
United States
 
58%
 
65%
 
56%
 
68%
Puerto Rico
 
13%
 
*
 
13%
 
*
Canada
 
*
 
10%
 
*
 
10%
All other countries
 
29%
 
25%
 
31%
 
22%

v3.19.3
Impact of Recently Issued Accounting Standards (Tables)
9 Months Ended
Sep. 27, 2019
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]  
Summary of Recently Issued Accounting Standards <div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The following table provides a brief description of recent Accounting Standard Updates ("ASU") issued by the Financial Accounting Standards Board ("FASB") which are not yet effective for the Company</font><font style="font-family:inherit;font-size:10pt;font-style:italic;">.</font></div><div style="line-height:120%;text-align:left;padding-left:48px;text-indent:-48px;font-size:10pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;width:100%;border-collapse:collapse;text-align:left;"><tr><td colspan="7" rowspan="1"></td></tr><tr><td style="width:18%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:35%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:16%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:28%;" rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Standard</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">&#160;</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Description</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">&#160;</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Effective Date</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">&#160;</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Effect on the Financial Statements or Other Significant Matters</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="overflow:hidden;height:80px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;height:80px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="overflow:hidden;height:80px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;height:80px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="overflow:hidden;height:80px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;height:80px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="overflow:hidden;height:80px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;height:80px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;height:80px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;height:80px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;height:80px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;height:80px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;height:80px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;height:80px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td></tr></table></div></div></div>
v3.19.3
Basis of Presentation (Narrative) (Details)
3 Months Ended
Sep. 27, 2019
Sep. 28, 2018
Accounting Policies [Abstract]    
Fiscal Period Duration 91 days 91 days
v3.19.3
Discontinued Operations (Assets and Liabilities of AS&O Business) (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended 12 Months Ended
Apr. 14, 2019
Jul. 02, 2018
Sep. 27, 2019
Sep. 27, 2019
Sep. 28, 2018
Dec. 28, 2018
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]            
Proceeds from Divestiture of Businesses   $ 581,000   $ 4,734 $ 582,359  
Income From Transition Services     $ 100 2,900    
Transition Services, Cost of Sales       100    
Transition Services, Selling, General and Administrative     $ 1,800 $ 2,800    
Long Term Supply Agreement, Term   3 years        
Pre-tax Income From Discontinued Operations           $ 195,000
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax $ 4,800          
v3.19.3
Discontinued Operations (Loss from Discontinued Operations) (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 27, 2019
Sep. 28, 2018
Jun. 29, 2018
Sep. 27, 2019
Sep. 28, 2018
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Income (loss) from discontinued operations before taxes $ 0 $ 195,874   $ 5,316 $ 188,251
Gain on sale of discontinued operations 0 73,492   178 73,869
Income from discontinued operations 0 122,382   5,138 114,382
Discontinued operations, transaction costs     $ 2,200    
AS&O Business [Member] | Discontinued Operations, Held-for-sale [Member]          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Sales 0 0   0 178,020
Cost of sales 0 0   0 148,357
Gross profit 0 0   0 29,663
Selling, general and administrative expenses 0 0   0 8,905
Research, development and engineering costs 0 0   0 2,352
Other operating expenses (income)(1) 0     0 1,805
Other operating (income)   (2,185)      
Interest expense 0 976   0 22,833
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax 0 (194,734)   (4,974) (194,734)
Other (income) loss, net 0 69   (342) 251
Income (loss) from discontinued operations before taxes 0 195,874   5,316 188,251
Gain on sale of discontinued operations 0 73,492   178 73,869
Income from discontinued operations $ 0 $ 122,382   $ 5,138 $ 114,382
v3.19.3
Discontinued Operations Discontinued Operations (Cash Flow Information from Discontinued Operations) (Details) - USD ($)
$ in Thousands
9 Months Ended
Jul. 02, 2018
Sep. 27, 2019
Sep. 28, 2018
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]      
Long Term Supply Agreement, Term 3 years    
Proceeds from Divestiture of Businesses $ 581,000 $ 4,734 $ 582,359
AS&O Business [Member] | Discontinued Operations, Held-for-sale [Member]      
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]      
Cash used in operating activities   (58) (12,388)
Cash provided by (used in) investing activities   4,734 578,763
Depreciation and amortization   0 7,450
Capital expenditures   $ 0 $ 3,610
v3.19.3
Discontinued Operations - Acquisition of Assets from US BioDesign LLC (Details) - USD ($)
$ in Millions
3 Months Ended
Oct. 07, 2019
Jan. 03, 2020
Forecast    
Business Acquisition [Line Items]    
Business combination, contingent consideration for additional cash payment, maximum   $ 5.5
Subsequent Event    
Business Acquisition [Line Items]    
Payments to acquire business $ 15.0  
v3.19.3
Inventories (Details) - USD ($)
$ in Thousands
Sep. 27, 2019
Dec. 28, 2018
Inventory Disclosure [Abstract]    
Raw materials $ 83,171 $ 80,213
Work-in-process 78,803 75,711
Finished goods 36,003 34,152
Total $ 197,977 $ 190,076
v3.19.3
Goodwill and Other Intangible Assets, Net (Schedule of Indefinite-Lived Intangible Assets and Goodwill) (Details)
$ in Thousands
9 Months Ended
Sep. 27, 2019
USD ($)
Goodwill [Roll Forward]  
Goodwill $ 832,338
Foreign currency translation (7,020)
Goodwill 825,318
Medical Segment [Member]  
Goodwill [Roll Forward]  
Goodwill 815,338
Foreign currency translation (7,020)
Goodwill 808,318
Non-Medical Segment [Member]  
Goodwill [Roll Forward]  
Goodwill 17,000
Foreign currency translation 0
Goodwill $ 17,000
v3.19.3
Goodwill and Other Intangible Assets, Net (Schedule of Finite-Lived Intangible Assets, Major Class) (Details) - USD ($)
$ in Thousands
Sep. 27, 2019
Dec. 28, 2018
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 946,131 $ 955,635
Accumulated Amortization (261,675) (233,585)
Total estimated amortization expense 684,456 722,050
Trademarks And Tradenames [Member]    
Finite-Lived Intangible Assets [Line Items]    
Indefinite-lived Intangible Assets (Excluding Goodwill) 90,288 90,288
Purchased Technology And Patents [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 239,905 241,726
Accumulated Amortization (134,560) (125,540)
Total estimated amortization expense 105,345 116,186
Customer Lists [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 702,723 710,406
Accumulated Amortization (123,617) (104,556)
Total estimated amortization expense 579,106 605,850
Other Intangible Assets [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 3,503 3,503
Accumulated Amortization (3,498) (3,489)
Total estimated amortization expense $ 5 $ 14
v3.19.3
Goodwill and Other Intangible Assets, Net (Schedule of Finite-Lived Intangible Assets, Amortization Expense) (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 27, 2019
Sep. 28, 2018
Sep. 27, 2019
Sep. 28, 2018
Finite-Lived Intangible Assets [Line Items]        
Total intangible asset amortization expense $ 9,782 $ 9,896 $ 29,467 $ 31,068
Cost of sales        
Finite-Lived Intangible Assets [Line Items]        
Total intangible asset amortization expense 3,165 3,367 9,622 10,756
Selling General And Administrative Expense [Member]        
Finite-Lived Intangible Assets [Line Items]        
Total intangible asset amortization expense 6,617 6,490 19,845 20,196
Research, development and engineering costs        
Finite-Lived Intangible Assets [Line Items]        
Total intangible asset amortization expense $ 0 $ 39 $ 0 $ 116
v3.19.3
Goodwill and Other Intangible Assets, Net (Schedule of Finite-Lived Intangible Assets, Future Amortization Expense) (Details)
$ in Thousands
Sep. 27, 2019
USD ($)
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract]  
2019 $ 10,492
2020 40,065
2021 39,219
2022 38,194
2023 36,359
After 2023 $ 520,127
v3.19.3
Debt (Schedule of Long-Term Debt) (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 27, 2019
Sep. 28, 2018
Sep. 27, 2019
Sep. 28, 2018
Dec. 28, 2018
Oct. 27, 2015
Debt Instrument [Line Items]            
Gain (Loss) on Extinguishment of Debt $ (300) $ (9,300) $ (1,300) $ (10,800)    
Unamortized discount on term loan B and debt issuance costs (11,929)   (11,929)   $ (16,466)  
Total debt 827,920   827,920   925,507  
Current portion of long-term debt (37,500)   (37,500)   (37,500)  
Total long-term debt $ 790,420   $ 790,420   888,007  
Senior Notes [Member]            
Debt Instrument [Line Items]            
Stated interest rate           9.125%
Senior Notes [Member] | 9.125% Senior Notes due 2023 [Member]            
Debt Instrument [Line Items]            
Stated interest rate 9.125%   9.125%      
Secured Debt [Member] | Loans Payable [Member] | Term Loan A (TLA) Facility [Member]            
Debt Instrument [Line Items]            
Long-term Debt, Gross $ 276,563   $ 276,563   304,687  
Secured Debt [Member] | Loans Payable [Member] | Term Loan B (TLB) Facility [Member]            
Debt Instrument [Line Items]            
Long-term Debt, Gross 563,286   563,286   632,286  
Secured Debt [Member] | Revolving Credit Facility [Member] | New Revolving Credit Facility 2015 [Member]            
Debt Instrument [Line Items]            
Long-term Debt, Gross         $ 5,000  
Line of Credit Facility, Fair Value of Amount Outstanding $ 0   $ 0      
v3.19.3
Debt (Credit Facility) (Details) - USD ($)
9 Months Ended
Oct. 27, 2015
Sep. 27, 2019
Senior Notes [Member]    
Debt Instrument [Line Items]    
Debt Instrument, Face Amount $ 360,000,000  
Stated interest rate 9.125%  
Senior Notes [Member] | 9.125% Senior Notes due 2023 [Member]    
Debt Instrument [Line Items]    
Stated interest rate   9.125%
Secured Debt [Member] | Revolving Credit Facility [Member] | New Revolving Credit Facility 2015 [Member]    
Debt Instrument [Line Items]    
Credit Facility Maximum Borrowing Capacity $ 200,000,000  
Debt Instrument, Maturity Date Oct. 27, 2020  
Line of Credit Facility, Remaining Borrowing Capacity   $ 193,200,000
Letters of Credit Outstanding, Amount   $ 6,800,000
Secured Debt [Member] | Loans Payable [Member] | Term Loan A (TLA) Facility [Member]    
Debt Instrument [Line Items]    
Debt Instrument, Face Amount $ 277,000,000  
Debt Instrument, Maturity Date Oct. 27, 2021  
Debt Weighted Average Interest Rate   4.31%
Debt Instrument, Covenant Compliance, Maximum Leverage Ratio 4.75  
Debt Instrument, Covenant Compliance, Adjusted EBITDA To Interest Expense Ratio 3.00  
Secured Debt [Member] | Loans Payable [Member] | Term Loan B (TLB) Facility [Member]    
Debt Instrument [Line Items]    
Debt Instrument, Face Amount $ 563,000,000  
Debt Instrument, Discount, Percentage 1.00%  
Reduction to the variable rate basis spread   0.25%
Debt Instrument, Maturity Date Oct. 27, 2022  
Debt Weighted Average Interest Rate   5.05%
Secured Debt [Member] | Loans Payable [Member] | Term Loan B (TLB) Facility [Member] | Prime Rate [Member]    
Debt Instrument [Line Items]    
Variable rate basis spread 2.00%  
Secured Debt [Member] | Loans Payable [Member] | Term Loan B (TLB) Facility [Member] | London Interbank Offered Rate (LIBOR) [Member]    
Debt Instrument [Line Items]    
Variable rate basis spread 3.00%  
Debt Instrument, Interest Rate, Floor 1.00%  
Secured Debt [Member] | Swingline Loans [Member] | New Revolving Credit Facility 2015 [Member]    
Debt Instrument [Line Items]    
Credit Facility Maximum Borrowing Capacity $ 15,000,000  
Secured Debt [Member] | Standby Letters of Credit [Member] | New Revolving Credit Facility 2015 [Member]    
Debt Instrument [Line Items]    
Credit Facility Maximum Borrowing Capacity $ 25,000,000  
Secured Debt [Member] | Minimum [Member] | Revolving Credit Facility [Member] | New Revolving Credit Facility 2015 [Member]    
Debt Instrument [Line Items]    
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage 0.175%  
Secured Debt [Member] | Minimum [Member] | Revolving Credit Facility [Member] | New Revolving Credit Facility 2015 [Member] | Prime Rate [Member]    
Debt Instrument [Line Items]    
Variable rate basis spread 0.75%  
Secured Debt [Member] | Minimum [Member] | Revolving Credit Facility [Member] | New Revolving Credit Facility 2015 [Member] | London Interbank Offered Rate (LIBOR) [Member]    
Debt Instrument [Line Items]    
Variable rate basis spread 1.75%  
Secured Debt [Member] | Minimum [Member] | Loans Payable [Member] | Term Loan A (TLA) Facility [Member] | Prime Rate [Member]    
Debt Instrument [Line Items]    
Variable rate basis spread 0.75%  
Secured Debt [Member] | Minimum [Member] | Loans Payable [Member] | Term Loan A (TLA) Facility [Member] | London Interbank Offered Rate (LIBOR) [Member]    
Debt Instrument [Line Items]    
Variable rate basis spread 1.75%  
Secured Debt [Member] | Maximum [Member] | Revolving Credit Facility [Member] | New Revolving Credit Facility 2015 [Member]    
Debt Instrument [Line Items]    
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage 0.25%  
Secured Debt [Member] | Maximum [Member] | Revolving Credit Facility [Member] | New Revolving Credit Facility 2015 [Member] | Prime Rate [Member]    
Debt Instrument [Line Items]    
Variable rate basis spread 2.25%  
Secured Debt [Member] | Maximum [Member] | Revolving Credit Facility [Member] | New Revolving Credit Facility 2015 [Member] | London Interbank Offered Rate (LIBOR) [Member]    
Debt Instrument [Line Items]    
Variable rate basis spread 3.25%  
Secured Debt [Member] | Maximum [Member] | Loans Payable [Member] | Term Loan A (TLA) Facility [Member] | Prime Rate [Member]    
Debt Instrument [Line Items]    
Variable rate basis spread 2.25%  
Secured Debt [Member] | Maximum [Member] | Loans Payable [Member] | Term Loan A (TLA) Facility [Member] | London Interbank Offered Rate (LIBOR) [Member]    
Debt Instrument [Line Items]    
Variable rate basis spread 3.25%  
v3.19.3
Debt (Long-term Debt Maturity Schedule) (Details)
$ in Thousands
Sep. 27, 2019
USD ($)
Debt Disclosure [Abstract]  
2019 $ 9,375
2020 37,500
2021 229,688
2022 $ 563,286
v3.19.3
Debt (Schedule of Deferred Financing Fees) (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 27, 2019
Sep. 28, 2018
Sep. 27, 2019
Sep. 28, 2018
Deferred Finance Costs [Roll Forward]        
Total, Beginning Balance     $ 16,466  
Amortization during the period     (5,280) $ (47,173)
Total, Ending Balance $ 11,929   11,929  
Loss on extinguishment of debt $ 300 $ 9,300 $ 1,300 $ 10,800
v3.19.3
Debt (Schedule of Interest Rate Swaps and Details) (Details)
9 Months Ended
Sep. 27, 2019
USD ($)
Interest Rate Swap [Member]  
Derivative [Line Items]  
Gain (Loss) Recognized In Income Ineffective Portion $ 0
v3.19.3
Debt Debt (9.125% Senior Notes Due 2023) (Details) - Senior Notes [Member] - USD ($)
$ in Millions
Jul. 10, 2018
Oct. 27, 2015
Debt Instrument [Line Items]    
Debt Instrument, Face Amount   $ 360.0
Stated interest rate   9.125%
Debt Instrument, Redemption Price, Percentage 100.00%  
Debt Instrument, Unamortized Premium $ 31.3  
v3.19.3
Stock-Based Compensation (Allocation of Recognized Period Costs) (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 27, 2019
Sep. 28, 2018
Sep. 27, 2019
Sep. 28, 2018
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]        
Share-based Payment Arrangement, Expense $ 1,461 $ 1,577 $ 6,894 $ 7,684
Cost of sales        
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]        
Share-based Payment Arrangement, Expense 168 222 766 598
Selling General And Administrative Expense [Member]        
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]        
Share-based Payment Arrangement, Expense 1,155 1,821 5,819 6,568
Research, development and engineering costs        
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]        
Share-based Payment Arrangement, Expense 69 44 193 99
Other operating expenses        
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]        
Share-based Payment Arrangement, Expense 69 0 116 5
Income Statement Location, Discontinued Operations [Member]        
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]        
Share-based Payment Arrangement, Expense 0 (510) 0 414
Stock Option [Member]        
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]        
Share-based Payment Arrangement, Expense 101 215 304 726
RSAs and RSUs (time-based) [Member]        
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]        
Share-based Payment Arrangement, Expense 1,360 1,872 6,590 6,544
Continuing Operations [Member]        
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]        
Share-based Payment Arrangement, Expense $ 1,461 $ 2,087 $ 6,894 $ 7,270
v3.19.3
Stock-Based Compensation (Valuation Assumptions) (Details) - $ / shares
9 Months Ended
Sep. 27, 2019
Sep. 28, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Weighted average fair value   $ 14.89
Risk-free interest rate   2.21%
Expected volatility   39.00%
Expected life (in years)   4 years
Expected dividend yield   0.00%
Share-based Payment Arrangement, Option [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Weighted average fair value $ 117.03 $ 37.46
Risk-free interest rate 2.46% 2.28%
Expected volatility 40.00% 40.00%
Expected life (in years) 2 years 9 months 18 days 2 years 10 months 24 days
Expected dividend yield 0.00% 0.00%
v3.19.3
Stock-Based Compensation (Stock Options Activity) (Details)
$ / shares in Units, $ in Millions
9 Months Ended
Sep. 27, 2019
USD ($)
$ / shares
shares
Stock Option Activity (in shares)  
Options Outstanding, Beginning | shares 522,783
Exercised | shares (116,904)
Options Outstanding, Ending | shares 405,879
Options Exercisable | shares 371,564
Weighted Average Exercise Price (in dollars per share)  
Options Outstanding, Beginning | $ / shares $ 31.88
Exercised | $ / shares 22.70
Options Outstanding, Ending | $ / shares 34.52
Options Exercisable | $ / shares $ 34.10
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]  
Options Outstanding, Weighted Average Remaining Contractual Term 5 years 3 months 18 days
Options Exercisable, Weighted Average Remaining Contractual Term 5 years 1 month 6 days
Options Outstanding, Intrinsic Value | $ $ 16.3
Options Exercisable, Intrinsic Value | $ $ 15.1
v3.19.3
Stock-Based Compensation (Restricted Stock and Restricted Stock Units Activity) (Details)
9 Months Ended
Sep. 27, 2019
$ / shares
shares
Restricted Stock And Restricted Stock Units Time Based [Member]  
Restricted Stock and Restricted Stock Unit Activity (in shares)  
Nonvested, Beginning | shares 142,236
Granted | shares 104,636
Vested | shares (24,752)
Forfeited | shares (16,009)
Nonvested, Ending | shares 206,111
Restricted Stock and Restricted Stock Unit Weighted Average Fair Value (in dollars per share)  
Nonvested, Beginning | $ / shares $ 49.78
Granted | $ / shares 82.96
Vested | $ / shares 63.34
Forfeited | $ / shares 57.49
Nonvested, Ending | $ / shares $ 64.40
Performance-based RSUs (PSUs) [Member]  
Restricted Stock and Restricted Stock Unit Activity (in shares)  
Nonvested, Beginning | shares 287,134
Granted | shares 50,492
Vested | shares (75,008)
Forfeited | shares (68,153)
Nonvested, Ending | shares 194,465
Restricted Stock and Restricted Stock Unit Weighted Average Fair Value (in dollars per share)  
Nonvested, Beginning | $ / shares $ 36.15
Granted | $ / shares 101.17
Vested | $ / shares 28.41
Forfeited | $ / shares 34.17
Nonvested, Ending | $ / shares $ 56.71
v3.19.3
Stock-Based Compensation (Additional Information) (Details)
9 Months Ended
Sep. 28, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Expected life (in years) 4 years
Risk-free interest rate 2.21%
Expected dividend yield 0.00%
Expected volatility 39.00%
v3.19.3
Other Operating Expenses, Net (Schedule of Other Operating Cost and Expense By Component) (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 27, 2019
Sep. 28, 2018
Jun. 29, 2018
Sep. 27, 2019
Sep. 28, 2018
Other Operating Income Expense Detail [Line Items]          
Discontinued operations, transaction costs     $ 2,200    
Other operating expenses - continuing operations $ 2,241 $ 4,139   $ 8,239 $ 12,615
Total other operating expenses 2,241 1,954   8,239 14,420
Strategic Reorganization And Alignment [Member]          
Other Operating Income Expense Detail [Line Items]          
Other operating expenses - continuing operations 962 2,643   4,352 8,424
Manufacturing Alignment To Support Growth [Member]          
Other Operating Income Expense Detail [Line Items]          
Other operating expenses - continuing operations 515 877   1,661 2,493
Consolidation And Optimization Initiatives [Member]          
Other Operating Income Expense Detail [Line Items]          
Other operating expenses - continuing operations 0 137   0 698
Asset Dispositions, Severance And Other [Member]          
Other Operating Income Expense Detail [Line Items]          
Other operating expenses - continuing operations 764 482   2,226 1,000
Discontinued Operations, Held-for-sale [Member] | AS&O Business [Member]          
Other Operating Income Expense Detail [Line Items]          
Other operating expenses (income)(1) $ 0     $ 0 $ 1,805
Other operating (income)   $ (2,185)      
v3.19.3
Other Operating Expenses, Net (Narrative) (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 27, 2019
Sep. 28, 2018
Sep. 27, 2019
Sep. 28, 2018
Restructuring Cost and Reserve [Line Items]        
Other Cost and Expense, Operating $ 2,241 $ 4,139 $ 8,239 $ 12,615
Strategic Reorganization And Alignment [Member]        
Restructuring Cost and Reserve [Line Items]        
Costs incurred since inception 20,900   20,900  
Other Cost and Expense, Operating 962 2,643 4,352 8,424
Strategic Reorganization And Alignment [Member] | Minimum [Member]        
Restructuring Cost and Reserve [Line Items]        
Expected costs 20,000   20,000  
Strategic Reorganization And Alignment [Member] | Maximum [Member]        
Restructuring Cost and Reserve [Line Items]        
Expected costs 22,000   22,000  
Manufacturing Alignment To Support Growth [Member]        
Restructuring Cost and Reserve [Line Items]        
Costs incurred since inception 5,100   5,100  
Other Cost and Expense, Operating 515 877 1,661 2,493
Manufacturing Alignment To Support Growth [Member] | Minimum [Member]        
Restructuring Cost and Reserve [Line Items]        
Expected costs 6,000   6,000  
Manufacturing Alignment To Support Growth [Member] | Maximum [Member]        
Restructuring Cost and Reserve [Line Items]        
Expected costs 7,000   7,000  
Asset Dispositions, Severance And Other [Member]        
Restructuring Cost and Reserve [Line Items]        
Other Cost and Expense, Operating $ 764 $ 482 $ 2,226 $ 1,000
v3.19.3
Other Operating Expenses, Net (Schedule of Restructuring Reserve By Type of Cost) (Details) - Consolidation And Optimization Initiatives [Member]
$ in Thousands
9 Months Ended
Sep. 27, 2019
USD ($)
Restructuring Reserve [Roll Forward]  
Restructuring Reserve, Beginning Balance $ 1,870
Restructuring charges 6,013
Cash payments (6,492)
Restructuring Reserve, Ending Balance 1,391
Severance And Retention [Member]  
Restructuring Reserve [Roll Forward]  
Restructuring Reserve, Beginning Balance 1,668
Restructuring charges 1,345
Cash payments (1,629)
Restructuring Reserve, Ending Balance 1,384
Other Restructuring [Member]  
Restructuring Reserve [Roll Forward]  
Restructuring Reserve, Beginning Balance 202
Restructuring charges 4,668
Cash payments (4,863)
Restructuring Reserve, Ending Balance $ 7
v3.19.3
Income Taxes (Narrative) (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 27, 2019
Sep. 28, 2018
Sep. 27, 2019
Sep. 28, 2018
Dec. 28, 2018
Income Tax Disclosure [Abstract]          
Effective Income Tax Rate Reconciliation, Percent 13.80% 42.60% 16.00% 22.20%  
Income tax provision $ 4,913 $ (6,157) $ 15,289 $ 7,956  
Income (loss) before provision for income taxes (35,499) $ 14,460 (95,463) $ (35,793)  
Discrete Tax Benefits 2,300   4,400    
Unrecognized Tax Benefits 4,200   4,200   $ 5,400
Decrease in unrecognized tax benefits due to adjustment of prior year tax positions 1,200        
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit 600   600    
Unrecognized Tax Benefits that Would Impact Effective Tax Rate $ 4,100   $ 4,100   $ 5,300
v3.19.3
Commitments and Contingencies (Narrative) (Details)
9 Months Ended
Jan. 14, 2019
USD ($)
Jan. 26, 2016
USD ($)
patent
Sep. 27, 2019
Gain Contingencies [Line Items]      
Gain (Loss) Related to Litigation Settlement   $ 0  
Product Warranty Description     The Company generally warrants that its products will meet customer specifications and will be free from defects in materials and workmanship.
Positive Outcome of Litigation [Member]      
Gain Contingencies [Line Items]      
Gain Contingency, Patents Found Infringed upon, Number | patent   3  
Amount awarded from other party $ 22,200,000 $ 37,500,000  
v3.19.3
Commitments and Contingencies (Schedule of Product Warranty Liability) (Details)
$ in Thousands
9 Months Ended
Sep. 27, 2019
USD ($)
Movement in Standard Product Warranty Accrual [Roll Forward]  
43462 $ 2,600
Additions to warranty reserve 441
Standard Product Warranty Accrual, Increase (Decrease) for Preexisting Warranties (988)
Warranty claims settled (1,221)
43735 $ 832
v3.19.3
Leases - Narrative (Details)
$ in Thousands
Sep. 27, 2019
USD ($)
Leases [Abstract]  
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year $ 8,562
Operating Lease, Liability, Current 7,300
Lessee, Operating Lease, Liability, Payments, Due Year Two 7,290
Lessee, Operating Lease, Liability, Payments, Due Year Three 7,348
Lessee, Operating Lease, Liability, Payments, Due Year Four 5,269
Lessee, Operating Lease, Liability, Payments, Due Year Five 5,112
Lessee, Operating Lease, Liability, Payments, Due after Year Five $ 14,589
v3.19.3
Leases - Operating Lease Weighted Average Lease Term and Discount Rate (Details)
Sep. 27, 2019
Leases [Abstract]  
Weighted-average remaining lease term of operating leases (in years) 7 years 7 months 6 days
Weighted-average discount rate of operating leases 5.50%
v3.19.3
Leases - Lease Costs (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 27, 2019
Sep. 27, 2019
Lessee, Lease, Description [Line Items]    
Operating lease cost $ 2,470 $ 7,361
Short-term lease cost (leases with initial term of 12 months or less) 12 46
Variable lease cost 638 1,845
Sublease income (475) (1,420)
Total lease cost 2,645 7,832
Cost of sales    
Lessee, Lease, Description [Line Items]    
Total lease cost 2,220 6,562
Selling, general and administrative expenses    
Lessee, Lease, Description [Line Items]    
Total lease cost 285 837
Research, development and engineering costs    
Lessee, Lease, Description [Line Items]    
Total lease cost 138 416
Other operating expenses    
Lessee, Lease, Description [Line Items]    
Total lease cost $ 2 $ 17
v3.19.3
Leases - Operating Lease Liability Maturity Schedule (Topic 842) (Details)
$ in Thousands
Sep. 27, 2019
USD ($)
Leases [Abstract]  
Remainder of 2019 $ 2,519
2020 9,454
2021 9,132
2022 7,055
2023 6,274
2024 5,752
Thereafter 16,615
Total lease payments 56,801
Less imputed interest (10,852)
Total $ 45,949
v3.19.3
Leases - Supplemental Cash Flow Information (Details)
$ in Thousands
3 Months Ended
Sep. 27, 2019
USD ($)
Leases [Abstract]  
Cash paid for amounts included in the measurement of operating lease liabilities $ 7,713
ROU assets obtained in exchange for new operating lease liabilities $ 8,215
v3.19.3
Earnings (Loss) Per Share (EPS) (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 9 Months Ended
Sep. 27, 2019
Sep. 28, 2018
Sep. 27, 2019
Sep. 28, 2018
Earnings Per Share [Abstract]        
Income (loss) from continuing operations $ 30,586 $ (8,303) $ 80,174 $ 27,837
Income from discontinued operations 0 122,382 5,138 114,382
Net income $ 30,586 $ 114,079 $ 85,312 $ 142,219
Weighted Average Number of Shares Outstanding Reconciliation [Abstract]        
Basic (in shares) 32,660,000 32,211,000 32,606,000 32,050,000
Stock options, restricted stock and restricted stock units (in shares) 408,000 0 413,000 401,000
Denominator for diluted EPS (in shares) 33,068,000 32,211,000 33,019,000 32,451,000
Basic earnings (loss) per share:        
Income from continuing operations (in dollars per share) $ 0.94 $ (0.26) $ 2.46 $ 0.87
Loss from discontinued operations (in dollars per share) 0 3.80 0.16 3.57
Basic (in dollars per share) 0.94 3.54 2.62 4.44
Diluted earnings (loss) per share:        
Income from continuing operations (in dollars per share) 0.92 (0.26) 2.43 0.86
Loss from discontinued operations (in dollars per share) 0 3.80 0.16 3.52
Diluted (in dollars per share) $ 0.92 $ 3.54 $ 2.58 $ 4.38
Anitdilutive Securities Excluded From Earnings Per Share [Abstract]        
Time-vested stock options, restricted stock and restricted stock units (in shares) 0 797,000 29,000 436,000
Performance-vested stock options and restricted stock units (in shares) $ 50,000 $ 303,000 $ 48,000 $ 220,000
v3.19.3
Stockholders' Equity (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 27, 2019
Sep. 28, 2018
Sep. 27, 2019
Sep. 28, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]        
Balance, beginning of period (in shares)     32,624,494  
Shares outstanding beginning balance (in shares)     32,473,167 31,871,427
Stock options exercised (in shares)     116,904 381,793
Balance, end of period (in shares) 32,841,183   32,841,183  
Shares outstanding ending balance (in shares) 32,668,627 32,382,687 32,668,627 32,382,687
Defined Benefit Plan Liability        
Defined Benefit Plan Liability, Beginning $ (295) $ (1,422) $ (295) $ (1,422)
Defined Benefit Plan Liability, Ending (295) (474) (295) (474)
Cash Flow Hedges        
Cash Flow Hedges, Beginning (2,567) 5,094 3,439 3,418
Unrealized loss on cash flow hedges 1,459 (1,424) 6,028 (4,325)
Realized gain loss on foreign currency hedges - before tax 191 (141) 157 (734)
Realized gain loss on interest rate swaps - before tax (444) (482) (1,847) (1,114)
Cash Flow Hedges, End (4,279) 5,895 (4,279) 5,895
Foreign Currency Translation Adjustment        
Foreign Currency Translation Adjustment, Beginning 28,211 37,756 30,539 50,200
Net foreign currency translation gain (loss) (14,810) (2,809) (17,138) (15,253)
Foreign Currency Translation Adjustment, End 13,401 34,433 13,401 34,433
Total Pre-Tax Amount        
Total Pre-Tax Amount, Beginning 25,349 41,428 33,683 52,196
Unrealized loss on cash flow hedges 1,459 (1,424) 6,028 (4,325)
Realized gain loss on foreign currency hedges - before tax 191 (141) 157 (734)
Realized gain loss on interest rate swaps - before tax (444) (482) (1,847) (1,114)
Net foreign currency translation gain (loss) (14,810) (2,809) (17,138) (15,253)
Total Pre-Tax Amount, End 8,827 39,854 8,827 39,854
Tax        
Tax, Beginning 582 (370) (679) (17)
Unrealized gain (loss) on cash flow hedges 307 (299) 1,266 (908)
Realized gain loss on foreign currency contracts - tax (40) 30 (33) 154
Realized gain loss on interest rate swap hedges - tax 93 102 388 234
Net foreign currency translation gain (loss) 0 0 0 0
Tax, End 942 (819) 942 (819)
Net-of-Tax Amount        
Total Net-of-Tax Amount, Beginning 25,931 41,058 33,004 52,179
Unrealized gain (loss) on cash flow hedges, net of tax 1,152 (1,125) 4,762 (3,417)
Realized gain loss on foreign currency hedges, net of tax 151 (111) 124 (580)
Realized gain loss on interest rate swap hedges, net of tax (351) (380) (1,459) (880)
Foreign currency translation gain (loss) (14,810) (2,809) (17,138) (15,253)
Total Net-of-Tax Amount, End $ 9,769 39,035 $ 9,769 39,035
Reclassifications from earnings, before tax   434   434
Reclassifications from earnings, tax   (282)   (282)
Reclassifications from earnings, net of tax   $ 152   $ 152
Common Stock [Member]        
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]        
Balance, beginning of period (in shares)     32,624,494 31,977,953
Stock options exercised (in shares)     116,904 381,793
Balance, end of period (in shares) 32,841,183 32,501,709 32,841,183 32,501,709
Treasury Stock, Common [Member]        
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]        
Balance, beginning of period (in shares)     (151,327) (106,526)
Stock options exercised (in shares)     0 0
Balance, end of period (in shares) (172,556) (119,022) (172,556) (119,022)
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Including Portion Attributable to Noncontrolling Interest [Member]        
Net-of-Tax Amount        
Reclassifications from earnings, before tax   $ 948   $ 948
Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest [Member]        
Net-of-Tax Amount        
Reclassifications from earnings, before tax   0   0
Accumulated Foreign Currency Adjustment Including Portion Attributable to Noncontrolling Interest [Member]        
Net-of-Tax Amount        
Reclassifications from earnings, before tax   (514)   $ (514)
Restricted Stock [Member]        
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]        
RSAs issued, net of forfeitures, and vesting of RSUs (in shares)     78,556 129,467
Restricted Stock [Member] | Common Stock [Member]        
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]        
RSAs issued, net of forfeitures, and vesting of RSUs (in shares)     99,785 141,963
Restricted Stock [Member] | Treasury Stock, Common [Member]        
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]        
RSAs issued, net of forfeitures, and vesting of RSUs (in shares)     (21,229) (12,496)
AS&O Business [Member]        
Net-of-Tax Amount        
Reclassifications from earnings, tax   300    
AS&O Business [Member] | Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Including Portion Attributable to Noncontrolling Interest [Member]        
Net-of-Tax Amount        
Reclassifications from earnings, before tax   700    
AS&O Business [Member] | Accumulated Foreign Currency Adjustment Including Portion Attributable to Noncontrolling Interest [Member]        
Net-of-Tax Amount        
Reclassifications from earnings, before tax   $ 500    
v3.19.3
Financial Instruments and Fair Value Measurements (Schedule of Interest Rate Swaps) (Details) - Designated as Hedging Instrument [Member]
$ in Thousands
Sep. 27, 2019
USD ($)
Interest Rate Swap Maturing June 2020 [Member] | Accrued expenses and other current liabilities  
Derivatives, Fair Value [Line Items]  
Notional Amount $ 200,000
Pay Fixed Rate 1.1325%
Receive Current Floating Rate 2.0536%
Fair Value $ 883
Interest Rate Swap Maturing July 2020 [Member] | Accrued expenses and other current liabilities  
Derivatives, Fair Value [Line Items]  
Notional Amount $ 75,000
Pay Fixed Rate 1.89%
Receive Current Floating Rate 2.0536%
Fair Value $ (90)
Interest Rate Swap Maturing June 2023 [Member] | Other long-term liabilities  
Derivatives, Fair Value [Line Items]  
Notional Amount $ 200,000
Pay Fixed Rate 2.1785%
Fair Value $ (3,753)
Interest Rate Swap Maturing April 2020 [Member] | Accrued expenses and other current liabilities  
Derivatives, Fair Value [Line Items]  
Notional Amount $ 400,000
Pay Fixed Rate 2.415%
Receive Current Floating Rate 2.0421%
Fair Value $ (1,306)
v3.19.3
Financial Instruments and Fair Value Measurements (Schedule of Foreign Currency Contracts) (Details) - Designated as Hedging Instrument [Member]
$ in Thousands
Sep. 27, 2019
USD ($)
$ / $
$ / €
Dec. 28, 2018
USD ($)
$ / $
$ / €
Foreign Exchange Contract Maturing June 2019 Contract One [Member] | Accrued expenses    
Derivatives, Fair Value [Line Items]    
Notional Amount   $ 12,621
$/Foreign Currency | $ / €   1.1686
Fair Value   $ (149)
Foreign Exchange Contract Maturing December 2019, Contract One [Member] | Accrued expenses and other current liabilities    
Derivatives, Fair Value [Line Items]    
Notional Amount $ 5,249  
$/Foreign Currency | $ / $ 0.0500  
Fair Value $ 26  
Foreign Exchange Contract Maturing December 2019, Contract Two [Member] | Accrued expenses and other current liabilities    
Derivatives, Fair Value [Line Items]    
Notional Amount $ 6,042  
$/Foreign Currency | $ / $ 0.0504  
Fair Value $ (12)  
Foreign Exchange Contract Maturing December 2019, Contract Three [Member] | Accrued expenses and other current liabilities    
Derivatives, Fair Value [Line Items]    
Notional Amount $ 8,339  
$/Foreign Currency | $ / € 1.1119  
Fair Value $ (95)  
Foreign Exchange Contract Maturing June 2020, Contract One [Member] | Accrued expenses and other current liabilities    
Derivatives, Fair Value [Line Items]    
Notional Amount $ 11,166  
$/Foreign Currency | $ / $ 0.0490  
Fair Value $ 68  
Foreign Exchange Contract Maturing June 2019 Contract Two [Member] | Accrued expenses    
Derivatives, Fair Value [Line Items]    
Notional Amount   $ 10,991
$/Foreign Currency | $ / $   0.0523
Fair Value   $ (494)
Foreign Exchange Contract Maturing June 2019 Contract Three [Member] | Accrued expenses    
Derivatives, Fair Value [Line Items]    
Notional Amount   $ 10,535
$/Foreign Currency | $ / €   1.1705
Fair Value   $ (141)
Foreign Exchange Contract Maturing June 2019 Contract Four [Member] | Accrued expenses    
Derivatives, Fair Value [Line Items]    
Notional Amount   $ 11,019
$/Foreign Currency | $ / $   0.0483
Fair Value   $ (316)
Foreign Exchange Contract Maturing December 2019 [Member] | Accrued expenses    
Derivatives, Fair Value [Line Items]    
Notional Amount   $ 10,499
$/Foreign Currency | $ / $   0.0500
Fair Value   $ 368
v3.19.3
Financial Instruments and Fair Value Measurements (Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 27, 2019
Jun. 28, 2019
Sep. 28, 2018
Sep. 27, 2019
Sep. 28, 2018
Dec. 28, 2018
Jun. 29, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]              
Income (Loss) from Equity Method Investments $ (986)   $ (291) $ (909) $ (5,545)    
Equity method investment 15,977     15,977   $ 15,148  
Non-marketable Equity Securities       6,092   7,667  
Equity Method Investments 22,069     22,069   22,815  
Equity Method Investment, Other than Temporary Impairment 0 $ 1,600 0 1,575 0    
Equity Securities without Readily Determinable Fair Value, Amount 0     0   7,000 $ 0
Debt and Equity Securities, Realized Gain (Loss) (986)   $ (291) 666 $ (5,545)    
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]              
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]              
Foreign currency contracts liabilities 0     0   0  
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Interest Rate Swap [Member]              
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]              
Interest Rate Derivative Assets, at Fair Value 0     0   4,171  
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]              
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]              
Foreign currency contracts liabilities 13     13   732  
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member]              
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]              
Interest Rate Derivative Assets, at Fair Value $ 4,266     $ 4,266   $ 0  
v3.19.3
Financial Instruments and Fair Value Measurements (Narrative) (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 27, 2019
Jun. 28, 2019
Sep. 28, 2018
Sep. 27, 2019
Sep. 28, 2018
Dec. 28, 2018
Jun. 29, 2018
Fair Value Measurement Inputs and Valuation Techniques [Line Items]              
Equity Method Investment, Other than Temporary Impairment $ 0 $ 1,600 $ 0 $ 1,575 $ 0    
Equity method investment 15,977     15,977   $ 15,148  
Gain (loss) on equity method investments (986)   $ (291) (909) (5,545)    
Cost method investment $ 0     0   $ 7,000 $ 0
Impairment on cost method investments       $ 0 $ 0    
Chinese Venture Capital Fund [Member]              
Fair Value Measurement Inputs and Valuation Techniques [Line Items]              
Equity method investment ownership (percent) 6.70%     6.70%      
v3.19.3
Financial Instruments and Fair Value Measurements (Impact of Cash Flow Hedges on the Condensed Consolidated Statements of Operations) (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 27, 2019
Sep. 28, 2018
Sep. 27, 2019
Sep. 28, 2018
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net $ 500      
Sales 303,587 $ 305,088 $ 932,457 $ 911,978
Cost of sales 210,201 213,165 653,477 637,758
Interest expense 12,337 54,526 39,779 85,355
Sales        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Amount of Gain (Loss) Reclassified from AOCI into Earnings (500) (252) (1,294) (254)
Cost of sales        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Amount of Gain (Loss) Reclassified from AOCI into Earnings 309 393 1,137 988
Interest expense        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Amount of Gain (Loss) Reclassified from AOCI into Earnings 444 482 1,847 1,114
Interest rate swap | Interest expense        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivatives (991) 415 (6,590) 2,524
Foreign exchange forwards | Sales        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivatives (400) 384 (1,099) (92)
Foreign exchange forwards | Cost of sales        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivatives $ (68) $ 625 $ 1,661 $ 1,893
v3.19.3
Segment Information (Narrative) (Details)
9 Months Ended
Sep. 27, 2019
Segment
Segment Reporting [Abstract]  
Number of Reportable Segments 2
v3.19.3
Segment Information (Reconciliation of Revenue from Segments to Consolidated) (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 27, 2019
Sep. 28, 2018
Sep. 27, 2019
Sep. 28, 2018
Segment Reporting, Revenue Reconciling Item [Line Items]        
Total sales from continuing operations $ 303,587 $ 305,088 $ 932,457 $ 911,978
Operating Segments [Member] | Medical Segment [Member]        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Total sales from continuing operations 289,424 292,639 888,028 871,811
Operating Segments [Member] | Medical Segment [Member] | Cardio And Vascular [Member]        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Total sales from continuing operations 148,581 150,230 451,552 435,859
Operating Segments [Member] | Medical Segment [Member] | Cardiac Neuromodulation [Member]        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Total sales from continuing operations 106,533 109,620 337,932 334,471
Operating Segments [Member] | Medical Segment [Member] | Advanced Surgical, Orthopedics, and Portable Medical [Member]        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Total sales from continuing operations 34,310 32,789 98,544 101,481
Operating Segments [Member] | Non-Medical Segment [Member]        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Total sales from continuing operations $ 14,163 $ 12,449 $ 44,429 $ 40,167
v3.19.3
Segment Information (Reconciliation of Operating Profit (Loss) from Segments to Consolidated) (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 27, 2019
Sep. 28, 2018
Sep. 27, 2019
Sep. 28, 2018
Segment Reporting Information [Line Items]        
Operating income $ 46,481 $ 41,459 $ 134,987 $ 115,860
Unallocated expenses, net (10,982) (55,919) (39,524) (80,067)
Income (loss) from continuing operations before taxes 35,499 (14,460) 95,463 35,793
Operating Segments [Member]        
Segment Reporting Information [Line Items]        
Operating income 65,966 62,450 195,661 178,735
Operating Segments [Member] | Medical Segment [Member]        
Segment Reporting Information [Line Items]        
Operating income 62,648 58,929 182,734 167,623
Operating Segments [Member] | Non-Medical Segment [Member]        
Segment Reporting Information [Line Items]        
Operating income 3,318 3,521 12,927 11,112
Segment Reconciling Items [Member]        
Segment Reporting Information [Line Items]        
Operating income $ (19,485) $ (20,991) $ (60,674) $ (62,875)
v3.19.3
Revenue From Contracts With Customers Revenue From Contracts With Customers (Narrative) (Details) - USD ($)
3 Months Ended 9 Months Ended
Sep. 27, 2019
Sep. 28, 2018
Sep. 27, 2019
Sep. 28, 2018
Dec. 28, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]          
Percent of revenue from contract with customer compared to total revenue 10.00%   11.00%    
Revenue recognized that was included in contract liability balance at beginning of period $ 400,000 $ 200,000 $ 800,000 $ 600,000  
Contract assets         $ 0
v3.19.3
Revenue From Contracts With Customers (Disaggregated Revenue) (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 27, 2019
Sep. 28, 2018
Sep. 27, 2019
Sep. 28, 2018
Dec. 28, 2018
Disaggregation of Revenue [Line Items]          
Capitalized Contract Cost, Net, Current $ 10,561   $ 10,561   $ 0
Contract Liabilities Included in Other Current Liabilities $ 2,079   $ 2,079   $ 2,264
Medical Segment [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | Customer A [Member]          
Disaggregation of Revenue [Line Items]          
Concentration risk percentage 20.00% 23.00% 22.00% 22.00%  
Medical Segment [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | Customer B [Member]          
Disaggregation of Revenue [Line Items]          
Concentration risk percentage 18.00% 20.00% 18.00% 19.00%  
Medical Segment [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | Customer C [Member]          
Disaggregation of Revenue [Line Items]          
Concentration risk percentage 13.00% 12.00% 12.00% 12.00%  
Medical Segment [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | All Other Customers [Member]          
Disaggregation of Revenue [Line Items]          
Concentration risk percentage 49.00% 45.00% 48.00% 47.00%  
Medical Segment [Member] | Revenue from Contract with Customer Benchmark [Member] | Geographic Concentration Risk [Member] | United States [Member]          
Disaggregation of Revenue [Line Items]          
Concentration risk percentage 55.00% 58.00% 56.00% 56.00%  
Medical Segment [Member] | Revenue from Contract with Customer Benchmark [Member] | Geographic Concentration Risk [Member] | Puerto Rico [Member]          
Disaggregation of Revenue [Line Items]          
Concentration risk percentage 11.00% 13.00% 13.00% 13.00%  
Medical Segment [Member] | Revenue from Contract with Customer Benchmark [Member] | Geographic Concentration Risk [Member] | All Other Countries [Member]          
Disaggregation of Revenue [Line Items]          
Concentration risk percentage 34.00% 29.00% 31.00% 31.00%  
Non-Medical Segment [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | Customer D [Member]          
Disaggregation of Revenue [Line Items]          
Concentration risk percentage 22.00% 30.00% 24.00% 28.00%  
Non-Medical Segment [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | All Other Customers [Member]          
Disaggregation of Revenue [Line Items]          
Concentration risk percentage 66.00% 70.00% 76.00% 72.00%  
Non-Medical Segment [Member] | Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member] | Customer E [Member]          
Disaggregation of Revenue [Line Items]          
Concentration risk percentage 12.00%        
Non-Medical Segment [Member] | Revenue from Contract with Customer Benchmark [Member] | Geographic Concentration Risk [Member] | United States [Member]          
Disaggregation of Revenue [Line Items]          
Concentration risk percentage 61.00% 65.00% 58.00% 68.00%  
Non-Medical Segment [Member] | Revenue from Contract with Customer Benchmark [Member] | Geographic Concentration Risk [Member] | Canada [Member]          
Disaggregation of Revenue [Line Items]          
Concentration risk percentage 12.00% 10.00% 13.00% 10.00%  
Non-Medical Segment [Member] | Revenue from Contract with Customer Benchmark [Member] | Geographic Concentration Risk [Member] | All Other Countries [Member]          
Disaggregation of Revenue [Line Items]          
Concentration risk percentage 27.00% 25.00% 29.00% 22.00%  
v3.19.3
Label Element Value
Cash and Cash Equivalents, at Carrying Value, Including Discontinued Operations us-gaap_CashAndCashEquivalentsAtCarryingValueIncludingDiscontinuedOperations $ 22,881,000